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Introduction
to
Human Resource Management
ICFAI Center for Management Research
Road # 3, Banjara Hills, Hyderabad 500 034

2.  ICMR March 2004. All rights reserved.
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No part of this publication may be reproduced, stored in a retrieval system,
used in a spreadsheet, or transmitted in any form or by any means –
electronic, mechanical, photocopying or otherwise – without prior
permission in writing from ICFAI Center for Management Research.
Ref. No. IHRMWB – 032K4 09
For any clarification regarding this book, the students may please write to ICMR giving the above reference
number, and page number.
While every possible care has been taken in typesetting and printing this book, ICMR welcomes suggestions
from students for improvement in future editions. Please use the Courseware Feedback Form available at
www.icmrindia.org

3. Contents
Part A – Multiple Choice Questions
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Part B – Caselets
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Part C – Applied Theory
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Part D – Model Question Papers

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Part A: Multiple Choice Questions
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This section consists of multiple-choice questions that test the student’s understanding of
the basic concepts discussed in the textbook. Answering these questions will help students
quickly recollect the theories they’ve learnt and apply these to real-life business situations.

5. Part A: Multiple Choice Questions
3.
a.
b.
c.
d.
Who was the pioneer of Hawthorne
studies?
Fredrick Taylor
Elton Mayo
Fred Luthans
Henry Mintzberg
An HR manager in a large
multinational firm is involved in
establishing an intentional structure
of roles for people and assigning
responsibilities. What is the
managerial function that the HR
manager is performing?
Organizing
Staffing
Directing
Controlling
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4.
a.
b.
c.
d.
5.
a.
b.
Selection
Placement
6.
What is the process of training and
developing employees to improve
and update their knowledge and
skills so as to perform their jobs
better known as?
a.
b.
c.
d.
Employment
Human resource development
Managing employee relations
Compensation management
7.
A control technique that helps in
measuring the cost and value of
people for an organization and helps
management to value its human
resources is
a.
b.
c.
d.
Human resource accounting
Employee control systems
Organizational control systems
Value based accounting
8.
The specialist role of a HR manager
takes a number of roles. Of these
roles, which role ensures that all
members of the management
perform their respective roles
concerned with effective use of
human resources?
a.
b.
c.
d.
The facilitator
The consultant
The executive
The auditor
9.
An organization provides employees
benefits in the form of conveyance
facilities, housing facilities and
educational facilities for children.
What kind of benefits is the
organization providing to the
employees?
a.
b.
c.
d.
Incentives
Bonus
Fringe benefits
Security benefits
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c.
d.
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a.
b.
c.
d.
The concept of 'economic man' led
Taylor to propose a system where
workers get a higher rate of pay for
every unit of output that exceeds the
daily output. What is this system
termed as?
Differential piece-rate system
Differential price-rate system
Similar piece-rate system
Similar price-rate system
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a.
b.
c.
d.
The development function of human
resources has three dimensions.
Which of the following does not fall
under the development function of
human resources?
Employee training
Management development
Career development
Identifying ways to motivate
employees
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__________ is the process by which
the knowledge of an employee, his
skills, abilities and motives to
perform a job must match the
requirements of the job?
Recruitment
Job analysis

6. Introduction to Human Resource Management
(i), (ii) and (iii)
(ii), (iii) and (iv)
(i), (ii), (iii) and (iv)
(i), (ii) and (iv)
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11. The HR manager of a manufacturing
firm was given the task of providing
information on market statistics of
personnel availability, pay rates etc.
What role of an HR executive is the
manager performing?
a. The executive
b. The service provider
c. The consultant
d. The facilitator
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12. Which of the following is not a key
characteristic of a successful quality
improvement program?
a. Education and training
b. Team work
c. Total systems approach
d. Short term-goal perspective
4
c.
d.
Employee relations management
Strategic
human
resource
management
Compensation management
Human relations management
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15. What is the organization termed as,
if the reporting channels of work
relations are pre-defined and
accountability and responsibility are
fixed for all the roles?
a. Informal organization
b. Semi-formal organization
c. Formal organization
d. Autonomous organization
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a.
b.
c.
d.
a.
b.
16. Which of the following is not a
characteristic of a flat organization
structure?
a. Wide span of control
b. Fewer hierarchical levels
c. More people under the control of
one manager
d. Close supervision
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10. The relationship between an
employee and his manager plays a
critical role in determining the job
satisfaction level of the employee.
Which of the following are the ideal
characteristics that an employee
would like his manager to possess?
i. Lend support and guidance
ii. Reward the employee for his
contribution
iii. Identify the employee’s strengths
and weaknesses
iv. To keep to himself, his expectations
from the employee
13. The extent to which an employee's
work meets his professional needs is
termed as
a. Quality of work life
b. Quality circles
c. Quality program
d. Quality cycle
14. _________ helps the organization in
the achievement of long-term and
short-term goals through optimum
utilization of human resources. It
involves the development of HR
objectives and their alignment with
the organizational objectives.
17. The right to give orders and the
power to exact obedience from
others in the process of discharging
the responsibility is termed as
a. Authority
b. Accountability
c. Responsibility
d. Adaptability
18. Vinay Sinha, the HR manager of a
pharmaceutical firm was given the
task of identifying the broad policy
issues related to human resources
like the employment policy, welfare
policy, and development etc., after
taking into consideration the
changing business scenario. What
level of HR planning will Vinay
have to undertake?
a. Corporate-level planning
b. Intermediate-level planning
c. Operations planning
d. Short-term planning
19. Planning that includes determining
the recruitment/layoff strategy,
development strategy etc. based on
the corporate policies and strategies
is the

7. Part A
a.
b.
c.
d.
24. __________ is the simplest unit of
work and involves very elementary
movement.
a. Position
b. Task
c. Job
d. Micromotion
25. Which of the following is the first
step in the process of job analysis?
a. Developing a job description
b. Job
specific
competency
determination
c. Information gathering
d. Developing a job specification
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20. An HR manager was involved in the
process of human resource planning.
The first step he undertook was
assessing current resources and
making an inventory. What is the
next step that the manager has to
take in HRP?
a. Start recruiting to meet the
requirements
b. Forecasting
c. Matching the inventory with future
requirements
d. Developing an action plan to meet
future requirements
Job evaluation
Job description
Job analysis
Job design
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Intermediate-level planning
Operations planning
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b.
c.
d.
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21. An IT firm wanted to reduce the
number of employees because of the
decrease in its number of projects.
But the organization promised its
employees that it would search for
other opportunities for its displaced
employees. What is the type of
services being offered by the
organization?
a. Outplacement
b. Placement
c. Career growth
d. Poaching
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22. During slack periods organizations
do not want their middle/top level
managers
to
stagnate.
The
employees are asked to work for
other organizations for a specified
period of time. The employees work
on projects with these organizations
but continue on the rolls of the
parent organization. What is the
above process termed as?
a. Loaning
b. Work sharing
c. Outplacement
d. Attrition
23. The process of determining and
recording
all
the
pertinent
information about a specific job,
including the tasks involved, the
knowledge and skill sets required to
perform the job, is termed as
26. Motion and time studies are
examples of which method of job
analysis?
a. Observation method
b. Technical conference method
c. Group interview method
d. Questionnaire method
27. In a job analysis method,
information was being gathered
regarding a particular job from
experts. What is the method of job
analysis being used here?
a. Observation method
b. Technical conference method
c. Group interview method
d. Questionnaire method
28. A job analysis where the job analyst
conducts background research,
interviews job incumbents and
supervisors and prepares a detailed
document is
a. Position analysis questionnaire
b. Functional job analysis
c. Diary method
d. Technical conference method
29. A questionnaire propounded by
Ernest J Mc Cormick that provides
job requirement information and
contains 194 elements that fall into
six major categories is the
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30. Which method of job analysis is
more suitable for the middle and top
level management jobs and not for
the lower level jobs?
a. Position analysis questionnaire
b. Functional job analysis
c. Diary method
d. Critical incident technique
36. Which approach to job design has a
key element called the 'task idea'
that led to job specialization?
a. Engineering approach
b. Human relations approach
c. Socio technical approach
d. Job characteristics approach
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31. What describes in detail, the various
aspects of a job like the tasks
involved the responsibilities of the
job and the deliverables?
a. Job description
b. Job specification
c. Job evaluation
d. Job enlargement
a.
b.
c.
d.
to be performed by him and the
responsibilities attached to the job
and the relationship with other jobs
in the organizational set-up. The
above process will help Prashanth
gain knowledge about the
Job description
Job analysis
Job depth
Job content
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Job analysis questionnaire
Performance analysis questionnaire
Employee analysis questionnaire
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b.
c.
d.
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32. In the process of job specification,
the specifications that include
analytical ability, data interpretation
ability, decision-making ability etc.,
are
a. Physical specifications
b. Emotional specifications
c. Mental specifications
d. Behavioral specifications
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33. Which of the following are the uses
of job analysis?
a. Organization audit
b. Promotion and transfer
c. Health and safety
d. All the above
34. The process of structuring work and
designating the specific activities at
the individual or group level is
called as
a. Job design
b. Job description
c. Job analysis
d. Job specification
35. Prashanth Kumar on joining as a
software engineer in a major IT
firm, was given an account of the
various tasks or activities that have
6
37. In the engineering approach to job
design the workers felt that
overspecialization hindered the
skills and experience. Which of the
following are the demerits of such
overspecialization?
i. Repetition of tasks
ii. Limited social interaction
iii. Mechanical pacing
iv. Scope for personal input
a.
b.
c.
d.
i and ii
i, ii and iii
i and iii
All the above
38. Working conditions, organizational
policies, interpersonal relations, all
these come under which factors of
job satisfaction as proposed by
Herzberg?
a. Motivators
b. Organizers
c. Providers
d. Hygiene factors
39. Ravinder was employed with a large
MNC. Though the pay and working
conditions were good, he was not
satisfied. He felt that there was no
achievement, growth, responsibility
and recognition. What are these
factors, under the motivation theory
proposed by Herzberg?

9. Part A
Motivators
Organizers
Providers
Hygiene Factors
c.
d.
a.
b.
c.
d.
i, ii
iii and iv
Only iii
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41. Supriya
Verma
joined
a
pharmaceutical firm and there she
was given the freedom and
discretion in scheduling her work.
What is the core dimension
according to the job characteristics
model that is being followed?
a. Task identity
b. Task significance
c. Autonomy
d. Skill variety
45. Which of the following are the
techniques of job enrichment?
i. Developing management generalists
at higher organizational levels
ii. Increasing the length and operating
time of each job
iii. Minimizing controls and providing
freedom of work when the
employees are clearly accountable
for attaining defined goals.
iv. Providing wider scope, greater
sequencing and increased pace of
work.
0
40. Which theory of job design by
Hackman and Oldham states that
employees work hard when they are
rewarded for the work they do, and
when the work gives them
satisfaction?
a. Job characteristics approach
b. Employee characteristic approach
c. Performance characteristic approach
d. Group characteristic approach
Job rotation
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b.
c.
d.
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42. The core job dimensions for a job
are analyzed and combined into a
single predictive index under the job
characteristic approach. What is this
index called?
a. Performing potential score
b. Motivating potential score
c. Employee potential score
d. Motivating potential significance
43. __________ helps in developing
management generalists at higher
organizational levels as it exposes
them to several different operations.
a. Job analysis
b. Job rotation
c. Job enrichment
d. Job enlargement
44. Which of the following helps in
increasing the length and hence the
operating time of each cycle of work
for the job holder?
a. Job enlargement
b. Job enrichment
46. A software firm allowed its
employees to choose their working
hours but within some specified
limits. This is an example of
a. Job sharing
b. Flextime
c. Condensed work
d. Job enlargement
47. The practice of working at home or
while traveling and at the same time
keeping in contact with the office is
termed as
a. Telecommuting
b. Job sharing
c. Flextime
d. Condensed work
48. From which of the following
approaches is the engineering
approach derived?
a. Scientific management approach
b. Process approach
c. Social systems approach
d. Systems approach
49. The process of searching for
prospective
employees
and
stimulating them to apply for jobs in
an organization is termed as
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10. Introduction to Human Resource Management
50. A good recruitment policy
a. Is flexible enough to accommodate
changes in the organization
b. Has its own policies and does not
comply with government policy on
hiring
c. Requires more investment for the
organization
d. Ensures short-term employment
opportunities for its employees
c.
d.
The situation in the labor market
The stage of development of the
industry
Culture, social attitudes and beliefs
Geographical location of the job
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52. The HR department of Magnus
Textiles made sure that any
vacancies in the organization first
reached the prospective candidates
in the organization. Candidates from
the organization responded to job
postings. What is the source of
recruitment being used?
Advertisements
Internal search
Employee referrals
Campus recruitment
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b.
c.
d.
53. The important information that has
to be furnished in an advertisement
includes:
i. Location or place of work
ii. Nature of the job
iii. Tasks and responsibilities in the job
a.
b.
c.
d.
8
55. A software firm has a vacancy for
the post of 'Vice President'
(operations). Which of the following
methods of recruitment would you
suggest?
a. Employment pages of a national
daily or a business magazine
b. Advertisements in a local daily
c. Campus placement
d. Listing of the vacancy on a placard
outside the organization
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51. Which of the following is not an
external environmental factor that
determines the effectiveness of a
recruitment program?
54. Many human resource professionals
are now using the Internet to recruit
personnel. Which of the following
statements are not true about online
recruiting?
a. It is a time saving process
b. It is cost effective
c. It supplements rather than replaces
the leg work associated with offline
recruitment
d. It eliminates completely the work
associated with recruitment on the
part of the recruiter to his/her total
convenience.
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Recruitment
Selection
Placement
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b.
c.
d.
i and ii
ii and iii
i and iii
All the above
56. The success of a recruitment
program can be judged based on
i. The
number
of
successful
placements
ii. The number of hirings
iii. The number of offers made
iv. The number of applicants
a.
b.
c.
d.
i and ii
i, ii and iii
i, ii and iv
All the above
57. The process of choosing the most
suitable candidate for a job from
among the available applicants is
called
a. Recruitment
b. Placement
c. Appraisal
d. Selection
58. ____________ helps in identifying
the knowledge, skill and attitude set
that enables an individual to deliver
the best performance in his job.

11. Part A
64. A formal record of an individual's
appeal or intention for employment
that helps in gathering information
about a prospective candidate is
called
a. Application blank
b. Employee data
c. Employee blank
d. Data bank
65. Which of the following are the
methods
for
evaluating
the
application
forms
in
an
organization?
a. Weighted methodology
b. Clinical methodology
c. Moving average method
d. Both a and b
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59. Vishal industries committed the
mistake of hiring an unsuitable
candidate for one of its vacancies.
The negative outcomes as a result of
selecting an unsuitable candidate are
a. Lose the goodwill of other
employees
b. The cost of employee’s nonperformance
c. It will not be able to lay-off such
employees
d. Reduction in the number of
employees.
a.
b.
c.
d.
selection method enhances the
effectiveness of an organization.
Generalizability
Utility
Legality
Reliability
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Competency planning
People competency
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b.
c.
d.
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60. In the process of selection, the step
that follows initial screening
interview is normally the
a. Decision making interview
b. Preliminary interview
c. Reference check
d. Analyze the application blank
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61. In which approach of reliability, a
group of candidates take the same
test twice, within a gap of 2-3
weeks?
a. Repeat or test retest
b. Alternate form
c. Parallel form
d. Split-halves procedure
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62. To test the consistency of the
selection tests, a HR manager
divided the test into two parts and
gave it to the candidates. Depending
on the degree of similarity in scoring
in these two parts, the reliability of
the test was determined. What is the
approach of reliability that is being
used?
a. Repeat or test retest
b. Alternate form
c. Parallel form
d. Split-halves procedure
63. ____________ is the degree to
which the value provided by the
66. ___________ test measures a
person's ability to classify things,
identify relationships and derive
analogies. It measures several
factors like logical reasoning,
analytical skills and general
knowledge.
a. Intelligence test
b. Performance tests
c. Emotional tests
d. Social tests
67. A bank wanted to conduct a test for
the applicants for the job of a clerk
cum cashier. Most of the applicants
were fresh from the college with
little experience related to the job.
The bank wants to pick and train the
right candidates. Which test do you
suggest to be given to the
candidates?
a. Aptitude tests
b. Intelligence tests
c. Achievement tests
d. Situational tests
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Recruitment
Placement
Selection
Training
a.
b.
c.
d.
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73. In an application form design,
questions on all the following are
ethical except
The educational qualifications of the
employee
The name and addresses of
individuals who can be contacted for
reference checks
Salary drawn by the candidate in the
last job
Issues that concern the privacy of
the applicant
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69. Mohan Krishna attended an
interview and was very upset with
the way it progressed. The
interviewer repeatedly interrupted
him, criticized his answers and
asked him unrelated questions. What
is the method of interview adopted?
a. Panel interview
b. Stress interview
c. In-depth interview
d. Group interview
a.
b.
c.
d.
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68. In a defence organization, the tests
conducted concentrated on validity
and truthfulness of an applicant's
answers, by monitoring the physical
changes in his body as he answered
a series of questions. What is the
type of test being used?
a. Polygraph tests
b. Situational tests
c. Interest tests
d. Intelligence tests
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70. Identify the correct sequence in an
interview process.
i. Closing an interview
ii. Evaluation
iii. Conduct of interview
iv. Reference checks
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i, iv, ii, ii
iii, i, ii, iv
iv, iii, ii, i
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b.
c.
d.
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71. Which of the following steps should
be adhered to, when interviewing?
a. Ask demanding and leading
questions
b. Get too engrossed in the interview to
follow the plan
c. Interrupt the candidate frequently
d. Make the candidate feel comfortable
and relaxed
10
72. "__________ is the determination of
the job to which an accepted
candidate is to be assigned. It is a
matching of what the supervisor has
reason to think he can do with the
job demands."
74. Identify the correct statement.
a.
b.
c.
d.
The time period for orientation is
relatively long as compared to
socialization
The changes resulting out of
orientation are more than those out
of socialization
Orientation is an event where as
socialization is an ongoing process
More organizational members are
involved in the process of
orientation
as
compared
to
socialization
75. Vishal joined a consultancy firm as a
trainee, but soon decided to leave
the organization. During the exit
interview, it was found that he was
not comfortable in the workplace,
and also he did not find the work
atmosphere to be friendly. What
would have gone wrong in the work
place?
a.
b.
c.
d.
The organization did not have an
effective induction program
The organization did not create a
positive perception in the mind of
the employee
The employee was not able to adapt
to the organization
All the above

13. Part A
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82. The metamorphosis stage of
socialization is considered to be
successful if
i. the employee understands and
accepts the norms, policies and
procedures of the organization
ii. he gains the trust and cooperation of
the co-workers
iii. it results in an increase in employee
productivity
a. i
b. ii
c. i and iii
d. All the above
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77. An organization emphasized that its
employees should dress formally but
did not consider it to be absolutely
essential for the firm. What are such
norms termed as?
a. Relevant norms
b. Irrelevant norms
c. Flexible norms
d. Functional norms
a.
b.
c.
d.
performed but do not apply it
practically?
Metamorphosis stage
Encounter stage
Pre-arrival stage
Evaluation stage
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76. "___________ signifies a system of
shared meaning held by the
members that distinguish one
organization
from
another
organization."
a. Organizational change
b. Organizational development
c. Organizational culture
d. Group dynamics
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78. Vijay Yadav was employed in the
production department of a firm
manufacturing textiles. He was well
behaved and agreed to the noms of
the organization. Vijay Yadav who
accepts all the organizational norms
is a
a. Assertive
b. Conformist
c. Rebel
d. Perfectionist
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79. What is the process by which an
individual acquires the attitudes,
behavior and knowledge he or she
needs
to
participate
as
a
organizational member called?
a. Performance appraisal
b. Management development
c. Socialization
d. Employee Training
80. All the following are included in the
process of socialization except
a. Pre-arrival stage
b. Metamorphosis stage
c. Encounter stage
d. Evaluation stage
81. In which stage of socialization,
employees or candidates have
knowledge about the job to be
83. A worker performing effectively in a
manufacturing unit was designated
as a supervisor. What is the type of
socialization strategy being used in
the manufacturing unit?
a. Fixed
b. Sequential
c. Non-sequential
d. Collective
84. In a contest strategy,
a. The channels of movement in a
socialization process are kept open
and an individual is given an
opportunity to perform better in the
next stage
b. Employees are segregated on the
basis of their knowledge and
abilities
c. An individual passes through a
sequence of activities for the
accomplishment of a particular
target
d. There are no discrete or identifiable
transition stages and the targets are
accomplished in one go
85. In an organization, employees were
made to pass through grueling work
loads to make them prepare for the
challenges in the future. This way
the organization planned to promote
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14. Introduction to Human Resource Management
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d.
Views the world as a differentiated
market place
The organization identifies its best
practices and resources from within
and outside the organization and
employs them where ever they are
best suited
90. Which approach to IHRM is based
on 'customization?'
a.
b.
c.
d.
Ethnocentric approach
Polycentric approach
Geocentric approach
Socio-centric approach
91. Which of the following statements
regarding IHRM is correct?
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86. Of the four approaches adopted by
international operations, which
approach tries to create value by
emphasizing
on
local
responsiveness?
a. The multi-domestic
b. The international
c. The global
d. The transnational
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a.
b.
c.
d.
solidarity and mutual concern
among
the
employees.
The
organization believes that to learn
and adapt to new organizational
norms, one has to unlearn the
previous set of norms. Which
strategy of socialization is the
organization following?
Investiture
Divestiture
Serial
Disjunctive
se
O
nl
y
87. __________is defined as “the
interplay among three dimensions –
human resource activities, type of
employees
and
countries
of
operations.”
a. International HRM
b. Socialization
c. HRM
d. Employee relations
Fo
rI
BS
U
88. Host country nationals are
a. Parent-company nationals who are
sent to work at a foreign subsidiary
b. Natives of a country other than the
host country of an overseas
subsidiary
c. Natives of the country where an
overseas subsidiary is located
d. An expatriate who returns to home
country
12
89. In the Geocentric Approach to
IHRM,
a. Companies view the world as a
single market place
b. The transfer of knowledge from the
parent to the subsidiaries is smooth
and complete
a.
b.
c.
d.
Domestic HRM has increased
complexity of activities than IHRM
There is more cultural awareness
and tolerance in domestic HRM than
IHRM
HRM involves management of cross
cultural teams
IHRM has diluted risk on the
business front and increased risk on
people front
92. Which of the following is not an
assumption
for
socialization
process?
a.
b.
c.
d.
Socialization does not occur in
vacuum
People adjust in similar ways
Socialization influences employee
performance and organizational
stability
New members tend to eagerly
mingle with senior employees
93. Hofstede developed five dimensions
of national culture and provided a
research instrument to measure them
empirically. Which of the following
is not one of the dimensions?
a.
b.
c.
d.
Power distance
Individualism
Uncertainty avoidance
Race

15. Part A
Host Country nationals
Third country nationals
Expatriates
Repatriates
a.
b.
c.
d.
Human resource approach
Systems approach
Contingent approach
Statistical approach
nl
y
96. Which approach states that "no one
particular management action or
design will be suitable for all
situations?"
O
Human behavior approach
Role approach
Systems approach
Contingent approach
se
a.
b.
c.
d.
Fo
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BS
U
97. HR department maintains a set of
proposals and actions that act as
reference points for managers in
their dealings with employees. What
is this called?
a.
b.
c.
d.
HR guide
HR ethics
HR policy
Managerial policy
98. Which of
approaches
currently?
a.
b.
c.
d.
the
is
100. Which of the following is not
indicated by high motivating
potential score?
a. High employee motivation
b. High employee performance
c. High employee satisfaction
d. High employee turnover
Cl
as
s
95. There are different approaches that
explain the importance of human
resources management. Which of
the following options is not one of
the approaches to HRM?
0
a.
b.
c.
d.
99. Which of the following gives the
motivating potential score?
a. ((Skill variety + task identity + task
significance)/3) * autonomy *
feedback
b. ((Autonomy + Feedback)/2) * (skill
+ task identity * task significance)
c. ((Autonomy * Feedback)/2)* (skill
+ task identity + task significance)
d. ((Skill variety * task identity * task
significance)/3) * (autonomy +
feedback)
of
20
1
94. Consider the following example. An
Indian firm with operations in
European countries sends employees
of US origin to work with their
counterparts in European countries.
What is the term used to refer to the
employees of US origin working in
European countries?
following HR
most
popular
Human resources approach
Scientific management approach
Systems approach
Technical approach
101. Given below are steps in job
enrichment. Identify the correct
sequence of steps.
i. Selecting jobs, which permit close
relation between motivation and job
performance
ii. Make a list of changes that might
enrich jobs by brainstorming
iii. Providing
adequate
training,
guidance, encouragement and help
to employees
a. i, iii, ii
b. i, ii, iii
c. ii, iii, i
d. ii, i, iii
102. Which of the following are
guidelines
for
drafting
and
maintaining a good job description?
a. Indicating the scope and nature of
the work and all important
relationships.
b. Indicating the work and duties of the
position
c. Explaining
the
supervisory
responsibility to the individuals
d. All the above
103. __________ is defined as the degree
to which its validity, established in
one context, can be extended to
other ‘primary contexts’.
13

16. Introduction to Human Resource Management
104. One of the following is not a
managerial function of human
resource management
a. Planning
b. Organizing
c. Staffing
d. Retrenching
nl
y
106. Decision-making is faster in a
a. Tall organization
b. Flat organization
c. Centralized organization
d. None of the above
Fo
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BS
U
se
O
107. One of the major reasons for the
line-staff conflict is
a. Empathy towards the limitations of
each other
b. Complete understanding of the
business by the staff function
c. Prejudice and bias against each other
d. Strategic orientation of the staff
function
108. Some of the big IT firms in the
country withdrew their campus
placement offers to some students
when the IT market plummeted last
a couple of years back. It shows that
there was
a. Problem with the recruitment policy
b. Problem with the selection
c. Problem with the human resource
planning
d. None of the above
109. ________________ should not be
one of the first steps in dealing with
surplus manpower for a short period.
14
Leave of absence without pay
Work-sharing
Loaning
Retrenchment
110. Employee
referrals
a/an___________
source
recruitment
a.
b.
c.
d.
External
Internal
Hybrid
None of the above
is
of
111. Concealed
identity
or
blind
advertising helps organizations
a.
b.
Restrict the number of applicants
Escape from the notice of
competitors when critical positions
are vacant
Lessen the burden of the applicants
Lessen the cost of advertising
Cl
as
s
105. All except one of the following are
the different aspects of Human
Resource Development (HRD)
a. Job evaluation
b. Training & development
c. Career planning
d. Performance appraisal
a.
b.
c.
d.
0
d.
Legality of the selection method
Utility of the selection method
Generalizability of the selection
method
Validity of selection method
of
20
1
a.
b.
c.
c.
d.
112. The individuals who reject all the
organization standards are labeled as
"misfits," as their actions contrast
organizational goals. They are also
called as
a. Rebels
b. Fire fighters
c. Questioners
d. Agitators
113. In India, workers’ participation has
limited success because of the
following factor:
a.
b.
c.
d.
The differing perceptions and
attitudes between the workers and
the management regarding the
degree of participation.
The trade unions are poorly
fragmented and organized.
Inter-union rivalry and influences of
different political philosophies
All the above
114. In India, according to the Industrial
Policy Resolution, 1956 the aim of
the government in advocating
workers’
participation
in
management is

17. Part A
i.
To create a socialist society where
the workers share the managerial
powers
ii. To increase industrial peace,
iii. To have better relations and
increased cooperation from workers
0
i and ii
ii and iii
iii and i
i, ii and iii
Cl
as
s
115. ____________
council
studies
absenteeism at the workplace and
recommends steps to reduce it at the
lowest level of worker participation.
a. Shop council
b. Plant council
c. Unit council
d. Joint council
120. Maniflex refers to
a. The flex time in which an employee
is given the freedom to opt for the
start and quit time for a particular
period, say, a week or a month
b. The flex time where an employee
can start and quit any time on
condition that he has to complete 8
hours of work a day
c. Flextime
which
requires
an
employee to complete 40 hours per
week and the number of hours
he/she works in a day can be varied
d. A flex time which is similar to
variable day and there is no need to
work for specific hours
of
20
1
a.
b.
c.
d.
a.
b.
c.
d.
time for a week. What is the type of
flex time being followed by the
firm?
Gliding time
Flexi tour
Variable day
Maniflex
O
nl
y
116. The ______ council usually deals
with matters pertaining to the –
operational, economic and financial,
personnel, welfare and environment
areas at a level above the
shop/department level.
a. Shop council
b. Plant council
c. Unit council
d. Joint council
Fo
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BS
U
se
117. According
to
_____________
approach, the problems in industrial
relations arise because of the
differing perceptions and attitudes of
the management and the workers.
a. Sociological approach
b. Psychological approach
c. Human relations approach
d. Gandhian approach
118. All the following are innovative
methods to improve the quality of
work life except
a. Flex time
b. Job enrichment
c. Job rotation
d. Demotion
119. An
employee in
a textile
manufacturing firm was given the
freedom to opt for the start and quit
121. A work schedule that includes a
fixed core period each day like a 7
a.m. - 3:30 p.m. 2:00 p.m.-10:30
p.m., or 11 a.m. - 7:30 p.m. with a
half an hour lunch break is called
a. Permanent work schedules
b. Temporary work schedules
c. Alternative work schedules
d. Shared work schedules
122. Job sharing, work sharing, phased
retirement, all these are examples of
a. Part time employment
b. Full time employment
c. Compressed work week
d. Alternative work schedules
123. What are the systems termed as,
when
the
programs
involve
redesigning the workplace not only
technologically but also physically
with human considerations for the
workplace?
a. Socio-technical systems
b. Psychological systems
c. Human relations system
d. Physical systems
15

18. Introduction to Human Resource Management
b.
c.
d.
Promoting and communicating the
need for a quality circle
Composition of a quality circle
Presentation of suggestions
Execution
0
a.
129.This technique creates an open
environment free of criticism,
encouraging
employees
to
participate and come up with their
own ideas. One idea leads to another
and impractical and unreasonable
ideas are also stimulated and
recorded without being suppressed.
What is this process termed as?
nl
y
Cl
as
s
125. "__________is a self-governing
group of workers, with or without
their supervisors, who voluntarily
meet on a regular basis to identify,
analyze and solve problems in their
work field."
a. Employee groups
b. Quality circles
c. Quality systems
d. Employee circles
128.In the development of a quality
circle, what is the phase that follows
the stage of initial problem solving?
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20
1
124. When the management conducts
QWL programs in association with
the union, it:
a. Leads to effective negotiations that
enable designing contracts that
satisfy both the parties
b. Improves the efficiency of the
management
and
strengthens
employee organizations.
c. Encourages
participative
management
and
involves
employees in decision making.
d. All the above
Fo
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BS
U
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O
126. The difference between quality
circles and task groups is that
a. In task groups, members skill does
not matter while in quality circle it is
important to have skilled employees
b. Employees in task force are selected
by management whereas in quality
circle, they are selected by members
of the group
c. The only aim of task group is people
building whereas in quality circles it
is problem solving
d. The source of members in task
group is from the same work group
whereas in quality circles it is from
various functions
16
127. Which of the following is not a basic
objective of the quality circle?
a. To enhance, develop and utilize
human resources effectively
b. To develop quality of products as
well as productivity
c. To improve quality of work life
d. To increase employee benefits and
incentives
a.
b.
c.
d.
Cerebral popcorn
Group popcorn
Group storm
Idea storm
130. Which committee looks after the
activities of the QCs in a particular
unit/division and acts as an advisory
board?
a. Quality committee
b. Steering committee
c. Employee committee
d. Standard committee
131. Who introduced the concept of
quality circles?
a.
b.
c.
d.
Dr. Edward Deming
Dr. Caldwell
Dr. Kaoru Ishikawa et al
Dr Kim Yung Duc
132. What is the likely composition of a
quality circle?
a.
b.
c.
d.
Six to twelve members
Two to three members
Fifteen to twenty members
More than twenty members
133. In a plant council, when is it
obligatory to appoint a woman
representative?

19. Part A
d.
134.
a.
b.
c.
d.
___________is “a continuous
association of wage-earners for the
purpose of protecting and advancing
the conditions of their working
lives.”
Management
Trade union
Quality circle
Productivity circle
U
se
O
nl
y
135.Under extramural functions,
a. Trade unions fight with employers
to achieve economic interests of
their members
b. Trade unions act as benefit
organizations providing financial
and non-financial assistance to their
members during sickness, strikes,
lockouts,
boycotts,
temporary
removal from service, etc
c. Trade unions involve themselves in
various activities to serve a social
cause and accomplish their social
responsibility towards different
sections of the society
d. Under these functions, trade unions
associate themselves with a political
party, get affiliated to the party and
help it by enrolling members,
campaigning for it during the
elections, collecting donations, etc
BS
Fo
rI
Intramural
Extramural
Political
Social
137. The main objective of a reformist
union is
a. To conserve the capitalist society, to
continue the employer-employee
relationship and the competitive
system of production
b. To demolish the prevailing structure
and replace it with a new one based
on the ideals they believe in
c. Not to cooperate with their
employers instead they aim at using
whatever and whomever they can in
order to achieve their goals
d. To enjoy a large part of the booty
earned from the customers and give
only a small portion to the workers
0
c.
a.
b.
c.
d.
of
20
1
b.
If the number of women workers is
5 percent or more of the total
workforce
If the number of women workers is
15 percent or more of the total
workforce
If the number of women workers is
30 percent or more of the total
workforce
Even if there is one woman worker
Cl
as
s
a.
136. In India, BMS (Bharatiya Mazdoor
Sangh) is affiliated to the BJP
(Bharatiya Janata Party), CITU is
affiliated to CPM (Communist Party
Marxist) and INTUC (Indian
National Trade Union Congress) is
affiliated to the Congress (I). What
is the function being performed by
the trade unions?
138. Business unions and uplift unions
are types of
a. Reformist unions
b. Revolutionary unions
c. Guerilla unions
d. Anarchist unions
139. ____________ unions are ideal in
nature and aim at broader issues
such as education, benefits, health
and insurance.
a. Uplift Unions
b. Business Unions
c. Political unions
d. Anarchist Unions
140. Trade unions based on the Marxist
ideology can be termed as
a. Friendly
b. Revolutionary
c. Uplift
d. Business
141. Predatory unions
a. Use
revolutionary
means
to
completely dissolve the current
economic system. They believe that
capitalism is a system that does not
work
17

20. Introduction to Human Resource Management
d.
a.
b.
c.
d.
General union
Industrial union
Craft union
Staff union
146. All the following are the problems
faced by trade unions except
a.
b.
c.
d.
Uneven growth
Small size
Few unions
Inter-union rivalry
Cl
as
s
142. The Cine Dancers’ Association and
the Indian Pilots’ Guild are
examples of
a. Craft unions
b. Staff union
c. Industrial union
d. General union
145. The Rashtriya Mill Mazdoor Sangh,
Bombay; the Engineering Mazdoor
Sabha, Bombay; the Labor Mines
Mazdoor Sangh, Udaipur, etc., are a
few examples of
0
c.
Do not stick to a particular ideology
or a specific methodology to achieve
their objectives
Destroy the power of capital and
capitalists through laws, attain
power by participating in political
action and apportion wealth and
offer effective power to the workers
Are ideal in nature and aim at
broader issues such as education,
benefits, health and insurance
of
20
1
b.
se
O
nl
y
143. A staff union
a. Is experienced and works on a single
craft or trade or any number of crafts
or trades
b. Generally employs workers from
non-manual sectors
c. Is based on the industry in which the
members work rather than the craft,
grade, skill, position or sex
d. Consists of members belonging to
various industries with varied skills
and experience
Fo
rI
BS
U
144. All the following are the advantages
of the mutual insurance method
adopted by the trade unions, except
a. It attracts the people to join the
union with its varied welfare
activities;
b. Under this method, members donate
more if they need more benefits.
This helps in improving the financial
condition of the union and enhances
its bargaining power when the need
arises;
c. It restricts outsider interference like
that of political leaders and helps
maintain friendly relations with the
management
d. In case a strike continues for a long
time, it helps the members to stay
united by offering the required
financial assistance
18
147. What is the tenure of the joint
councils formed in an organization?
a.
b.
c.
d.
5 years
10 years
1 year
2 years
148. The extent to which employees are
a.
b.
c.
d.
aware of their interests, skills,
strengths and weaknesses regarding
their career goals is termed
Career motivation
Career resilience
Career insight
Career identity
149. One of the following is not an
example of a Career Anchor
a.
b.
c.
d.
Functional competence
Security and stability
Entrepreneurial creativity
Aspiring capability
150. ________________
helps
organizations identify employee
strengths and weaknesses to
determine avenues for their career
development.
a.
b.
c.
d.
Gap analysis
Individual assessment
Organizational assessment
Opportunity analysis

21. Part A
158. Clear and well-defined goals, a
definite time plan and an action plan
to achieve these goals, combined
with
timely
feedback,
are
characteristics of
a. Work standards approach
b. Management by objectives
c. BARS
d. Balanced scorecard method
nl
y
Cl
as
s
153. Employees who feel that there is
nothing more to achieve and that
their career has become stagnant are
said to have reached a
a. Career island
b. Career plateau
c. Career peak
d. Career goal
0
152. Career planning and development
programs for employees
a. Increase employee frustration
b. Promote only a lucky few
c. Increase the employee turnover rate
d. Ensure future availability of
resources
157. Evaluation of an employee’s
performance by his colleagues is
called
a. Peer appraisal
b. Management by objectives
c. Formal appraisal
d. Group appraisal
of
20
1
151. Understanding the career aspirations
of an employee, determining his
capabilities and competencies and
identifying the gaps is termed
a. Need analysis
b. Gap analysis
c. Opportunity analysis
d. Employee analysis
U
se
O
154. The employee at this stage strives to
maintain a reputation and desires to
be looked up to, in the organization.
This is the
a. Exploration stage
b. Establishment stage
c. Maintenance stage
d. Disengagement stage
160. Paired comparison of employees is a
method of
a. Ranking
b. Checklist
c. Point allocation
d. Forced choice rating
155. Reassignment of an employee to a
higher level job that involves greater
responsibility or status or pay is
termed
a. Transfer
b. Cross-functional transfer
c. Demotion
d. Promotion
161. Appraisal
of
an
employee
performance by supervisor, self,
peers, subordinates and customers is
termed as
a. Team appraisal
b. Balanced scorecard method
c. 360 degree appraisal
d. Critical incident method
156. The process of selecting and
developing employees in the
organization to occupy key positions
in the future is termed
a. Career planning
b. Succession planning
c. Career development
d. Human resource enhancement
162. The method of appraisal where the
appraiser makes a list of all the
important situations and employee
reactions/behavior at that time is the
a. Checklist method
b. Critical incident method
c. Graphic rating method
d. Work standards approach
BS
Fo
rI
159. The main disadvantage of the essay
appraisal is that
a. It consumes a lot of paper
b. Different writing skills can portray
employee performance differently
c. Some points can be missed out by
the evaluator
d. Both b & c
19

22. Introduction to Human Resource Management
168. Supratim has been promoted to the
post of an Area Sales Manager just
last week, but finds himself lacking
in some areas. His performance can
be improved by
a. Reprimanding him
b. Training him
c. Linking his pay to performance
d. Providing him with an assistant
164. Rajan believes that all those from
Xavier’s are very arrogant and
complacent. This is reflected in his
performance appraisal of Preethi,
who is from Xavier’s. This is an
example of
a. Halo effect
b. Perceptual set
c. Stereotyping
d. Stringency effect
169. Rapid Creations has been acquired
by Indigo Hues. Employees of the
acquired company need basic
training in
a. Human relations
b. New technology
c. Managerial aspects
d. Company policies and procedures
Cl
as
s
of
20
1
0
163. If the appraiser allows a single
characteristic of the appraisee to
dominate his judgement of the
employee performance, it is termed
as
a. Halo effect
b. Stereotyping
c. Perceptual set
d. Primacy effect
se
O
nl
y
165. Priyank is a good salesman and
works for an IT company. But, his
performance in 2001-02 was
affected because of the slump in the
IT market. However, his boss fails
to acknowledge it and rates his
performance as poor. This is an
example of
a. Stereotyping
b. Primacy effect
c. Fundamental attribution error
d. Halo effect
Fo
rI
BS
U
166. Veena always awards high ratings to
all her subordinates irrespective of
their performance levels. She is
affected by
a. Leniency effect
b. Primacy effect
c. Recency effect
d. Tringency effect
20
167. One of the main reasons for the
negative attitude of employees
towards performance appraisal is
a. It is associated with pay
b. It gives away how bad they are
c. It tends to become subjective
because of poor implementation
d. It is not useful for any other
organizational activity
170. Employees resist participating in
training programs mainly because
a. They are not convinced about their
benefits
b. They do not like to be away from
their colleagues and friends
c. They feel that they are ill-equipped
that they need training
d. None of the above
171. _________________, as a training
method, helps the trainee gain crossfunctional knowledge
a. Apprenticeship
b. Simulation
c. Job rotation
d. Job enlargement
172. The method of training in which the
trainee is given a series of questions
to answer after reading the relevant
material is called
a. Role playing
b. Simulation exercises
c. Programmed instruction
d. Committee assignments
173. ________________
helps
in
improving the communication,
people-management
and
relationship management skills of
the trainees.

23. Part A
Computer modelling
Role playing
Class room lectures
Vestibule training
179. Traditionally, the pay scales in
companies were associated with
180. __________________
is
the
systematic process of analyzing and
evaluating jobs to determine their
relative worth in an organization.
a.
b.
c.
d.
Job analysis
Job design
Job evaluation
Job enrichment
181. The different factors associated with
the jobs in an organization, which
form the basis for job evaluation are
termed
a. Job specifications
b. Job descriptions
c. Job dimensions
d. Job definitions
Cl
as
s
175. The process of developing an
understanding of the self and one’s
relationships with other group
members
through
unstructured
group interaction is termed as
a. Role playing
b. Simulation exercise
c. Sensitivity training
d. Transactional analysis
Employee performance
Organizational hierarchy
Worth of the candidate
Charm of the employee
0
174. The basic yardstick to measure the
success of a training program is
a. No. of participants
b. Reputation of the trainer
c. Learning benefits to the trainees
d. The amount paid in TAs & DAs
paid to all the trainees
a.
b.
c.
d.
of
20
1
a.
b.
c.
d.
se
O
nl
y
176. Response, learning, performance
and results, are the four levels in
evaluating
a
management
development program. This system
of evaluation is called
a. Taylor’s system
b. Kirkpatrick’s system
c. Werther & Davis’s method
d. Armstrong’s method
Fo
rI
BS
U
177. A meeting of people to study and
analyze a problem from different
angles
for
developing
the
participants’ ability to exchange
ideas and change their own views is
a
a. Class room lecture
b. Case study
c. Conference
d. Sensitivity training
178. A person who is either obedient or
manipulative, charming at one time
and repulsive at another time, is in a
a. Child ego state
b. Adult ego state
c. Parent ego state
d. Chameleon ego state
182. The process of ranking in which the
relative importance of each job is
determined in comparison with the
representative job is called
a. Relative ranking
b. Comparative ranking
c. Paired comparison
d. Single factor ranking
183. The main disadvantage of the job
grading method is that
a. It is more comprehensive
b. It is not supported by job description
or specification
c. It is very expensive
d. The grade definitions have to cover
jobs from different functions
184. Example of a quantitative method of
job evaluation is
a. Single factor ranking method
b. Factor comparison method
c. Job classification method
d. All of the above
21

24. Introduction to Human Resource Management
186. Compensation administration should
match/follow all the following
basics except
a. Employee expectancy
b. Principle of equity
c. Legal requirements
d. None of the above
Executive compensation program
Fixed compensation program
Variable compensation program
Performance pay program
0
a.
b.
c.
d.
192. The main hurdle in having a
National Wage Policy in India is
a.
b.
c.
d.
Opposition from trade unions
Opposition from workers
Regional & industrial disparities
Opposition from the heads of state
193. Performance bonus is an example of
a/an
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187. The financial capacity of the
employer is taken into consideration
in the concept of
a. Minimum wage
b. Fair wage
c. Living wage
d. Just wage
191. The system of compensating
employees in accordance with their
performance is termed the
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185. Decision band method of job
evaluation is based on the premise
that the value of a job depends on its
__________ requirements
a. Relationship management
b. Hierarchical
c. Decision-making
d. Decision-abiding
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188. Radha works in a small scale
industry where she is paid Rs. 100
as a daily wage like all her coworkers. This is an example of
a. Time wage plan
b. Piece wage plan
c. Skill-based pay
d. Competency-based pay
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189. Satwik is an IT engineer, who earns
Rs. 40000 p.m., working for his
company. His pay is an example of
a. Qualification-based pay
b. Skill-based pay
c. Time wage plan
d. Piece wage plan
22
190. Under which system, the wage for
each piece of work is fixed and the
workers are paid once the work is
completed.
a. Piece-wage plan
b. Skill-based pay
c. Time wage plan
d. Payment by results
a.
b.
c.
d.
Intrinsic reward
Extrinsic reward
Intrinsic wage payment
Extrinsic wage payment
194. The process of rewarding employees
by giving them a stake in the
company, which further enhances
their performance is called the
a.
b.
c.
d.
Gain-sharing
Annual bonus
Employee stock plan
Profit sharing
195. The fringe advantages that accrue to
an employee over and above his
salary, as a result of his employment
and position in an organization are
termed
a.
b.
c.
d.
Benefits
Incentives
Compensation
Wages
196. The flexible benefit plan for
employees, where the employee gets
a chance to choose from a lot of
benefits, is also called the
a. Holiday benefit plan
b. Restaurant benefit plan
c. Cafeteria benefit plan
d. Variable benefit plan

25. Part A
203. “________________ is employee
self-control which prompts him to
willingly cooperate with the
organizational standards, rules,
objectives etc.”
a. Culture
b. Behavior
c. Discipline
d. Trust
198. The basic difference between
incentives and benefits is
a. Incentives are service related and
benefits are performance related
b. Incentives are performance related
and benefits are service related
c. Incentives are non-monetary and
benefits are monetary
d. Incentives are monetary and benefits
are non-monetary
204. Triumph Chemicals awards the
“Safest Place” annual award to the
unit with the best safety record
every year, across its 16 units. This
is an example of
a. Positive discipline
b. Negative discipline
c. Enforced discipline
d. Reward discipline
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197. The provision of compensation or
lucrative benefits for the top
management, in case of a job
loss/changeover when there is a
change of guard, is the
a. High-flier scheme
b. Retention planning scheme
c. Cool landing scheme
d. Golden parachute scheme
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199. Halsey plan, Rowan plan, Barth
system etc. are all examples of
a. Long-term incentive plans
b. Short-term incentive plans
c. Non-monetary incentive plans
d. Employee benefit plans
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200. The first sign of an employee’s
discontent either with the job or the
organization is
a. Conflict
b. Industrial unrest
c. Grievance
d. Strike
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201. The first stage in grievance redressal
is handled by the
a. Organizational head
b. HR department
c. Arbitrator
d. Supervisor
202. The method of smoothing out
differences to resolve a conflict
between two parties, in view of
larger interests is
a. Avoidance
b. Accommodation
c. Arbitration
d. Mediation
205. Being late to work is an example of
a. Minor infraction
b. Major infraction
c. Medium infraction
d. Intolerable offence
206. Corrective
action
should
be
immediate, impartial and consistent
with a warning – this is called the
a. Common disciplinary rule
b. Red hot stove rule
c. Cisco’s disciplinary rule
d. Yellow hot stove rule
207. All the following are the features of
a good disciplinary process except,
a. Consistency
b. Impartiality
c. Immediate action
d. Unpredictability
208. The in charge of the acid storage
plant at Sirpi was suspended for the
accident
that
took
place.
Investigation revealed that he had
actually
approached
the
management with a request for
repairing a leaking pipe, but the
management ignored it. His
suspension is an example of
a. Late intervention
b. Negative feedback
23

26. Introduction to Human Resource Management
209. Ratan got a shock when he was
suspended for smoking in the office
premises. He says he never knew a
puff came with such a heavy tag
attached to it. This is an example of
a. Negative feedback
b. Lack of communication
c. Immediate action
d. Late intervention
215. The production targets are fixed
with the mutual consent of the
management and the workers in
Calcio Tubes & Bulbs Pvt. Ltd. This
is an example of
a. Associative participation
b. Administrative participation
c. Decisive participation
d. Informative participation
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210. _____________ can be defined as
the relationship between the
management and employees of an
industry.
a. Interpersonal relations
b. Industrial relations
c. Organizational relations
d. Employment relations
214. ‘Most of the problems in industrial
relations arise out of the differing
perceptions and attitudes of the
management and the workers’ – this
is the
a. Sociological approach
b. Human relations approach
c. Gandhian approach
d. Psychological approach
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Misplaced responsibility
Punitive discipline
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d.
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211. Paternalistic style of management,
adopted
during
the
‘human
relations’ era is also called the
a. Exploitative authoritative style
b. Benevolent authoritative style
c. Consultative management style
d. Participative style
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212. _______________
bodies
like
Indian Labor Conference, Standing
Labor Committee and Industrial
Committees help the government in
settling industrial disputes.
a. Bipartite
b. Tripartite
c. Constitutional
d. Autonomous
24
213. _______________ is a managerial
tool that facilitates an amicable and
mutually acceptable agreement
between the management and the
employees to solve employment
related problems.
a. Adjudication
b. Industrial conflict
c. Collective bargaining
d. Strike / Lockout
216. A trade union’s primary objective is
to
a. Conduct strikes
b. Force lockouts
c. Fight with the management on
employment related issues
d. Achieve economic benefits for
employees
217. The workers in these unions are
a.
b.
c.
d.
experienced and work on a single
trade or possess similar skills and
specialization.
Craft union
General union
Industrial union
Staff union
218. The difference in the wages paid to
workers in the same unit, occupation
or region is called
a. Wage inequality
b. Wage differential
c. Compensation differential
d. Compensation difference
219. Ramya analyzed the market
opportunities and the future of the
IT industry in-depth before taking
up a career as a Systems Analyst.
However, she is not very happy
today as she feels she is unfit for the
job. The most probable reason is

27. Part A
c.
d.
225. The approach that stresses on the
fact that individuals should not be
treated as mere factors of production
is
a. Human Relations Approach
b. Scientific Management Approach
c. Humanistic Approach
d. None of the above
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220. As a student, when one is trying to
assess
one’s
self
and
the
opportunities available in the market
to choose the right career, he/she is
said to be in the
a. Exploration stage
b. Establishment stage
c. Maintenance stage
d. Disengagement stage
224. Both Raunak & Dilip work for View
real Inc. Though Dilip is two years
senior to Raunak, he earns Rs.5000
less than Raunak per month. This is
because of the difference in their
performances. View real follows the
system of
a. Standard compensation
b. Variable compensation
c. Executive compensation
d. Biased compensation
0
b.
She failed to do a proper selfassessment before taking the
decision
She is unhappy that all her friends
are in the same industry
She is unhappy that none of her
friends are in the same industry
She sees her friends in other fields
doing better
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221. The role of a legal advisor in an
organization is very important.
However, it has very little scope for
career advancement because of a
high degree of specialization. Such
careers are called
a. Declining careers
b. Low-ceiling careers
c. Career plateaus
d. Glass-ceiling careers
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222. Virtuous Services Pvt. Ltd. believes
that it pays quite handsome salaries
to its employees. However, the
turnover rate has been quite high in
the recent past and all the exit
interviews point to one factor –
compensation, as the culprit. The
company failed to
a. Meet the legal requirements
b. Follow the principle of equanimity
c. Match the employee expectations
d. Match the pay scales abroad
223. In the job classification system for
job evaluation, job grades are
defined and determined based on
a. Organizational structure & pay
packages
b. Job dimensions & pay packages
c. Pay packages & grade definitions
d. Organizational structure & job
dimensions
226. Hawthorne Studies gave raise to this
approach of human resource
management
a. Mathematical Approach
b. Human Relations Approach
c. Human Resources Approach
d. Contingent Approach
227. An average sincere employee
expects his boss or manager to have
all the following characteristics
except
a. Be genuinely interested in the
employee and his work
b. Ignore all the employee’s mistakes
c. Be fair and frank in his dealings
with the employee
d. Recognize and reward the employee
for his contributions
228. As an auditor, the HR professional
a. Ensures that all managers of the
organization
perform
their
respective roles
b. Conducts training and development
activities
c. Solve employee grievances
d. Provides
support
to
other
departments
in
conducting
appraisals etc.
25

28. Introduction to Human Resource Management
Job design
Job enrichment
0
235. If a selection method produces
consistent results across different
situations and times, it is termed to
be
a. Reliable
b. Valid
c. Legal
d. None of the above
236. An interview where the interviewer
does not chart out the formal
structure of the interview but lets it
take a natural course is called a
a. Formal interview
b. Unstructured interview
c. Group interview
d. Stress interview
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230. The marketing manager was asked
to handle the product re-launch of
toothpaste by VP-Marketing. The
manager’s obligation towards the
VP is called
a. Responsibility
b. Accountability
c. Authority
d. None of the above
c.
d.
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229. ________________ organizations
are characterized by rigid structures
,directives and rules and are
appropriate for static environments.
a. Mechanistic
b. Organic
c. Flat
d. Decentralized
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231. The process of ensuring that there
are the right number of qualified
people in the right jobs for best
results is termed
a. Human Resource Planning
b. Recruitment
c. Retrenchment
d. Downsizing
237. The performance appraisal method
that channelises employee efforts
with organizational goals is
a. BARS
b. 360 degree appraisal
c. Balanced scorecard
d. Management by objectives
238. The employees of IIVB lose a halfday’s leave if they are late to work
even by 15 minutes. This is an
example of
a. Punitive discipline
b. Preventive discipline
c. Positive discipline
d. Precautionary discipline
233. One of the following is not a job
characteristic
under
the
Job
characteristics Approach to Job
analysis.
a. Skill Variety
b. Task significance
c. Reporting authority
d. Task significance
239. In India, regulation of employment
and conditions of employment are
governed by
a. The Trade Union Act, 1926
b. The Industrial Disputes Act, 1947
c. The Factories Act, 1948
d. The Workmen’s Compensation Act,
1923
234. Adding
more
responsibility,
providing wider scope, greater
sequencing
and
minimizing
controls, all constitute
a. Job enlargement
b. Job expansion
240. Registration and cancellation of
trade unions is governed by
a. The Trade Union Act, 1926
b. The Industrial Disputes Act, 1947
c. The Factories Act, 1948
d. The Workmen’s Compensation Act,
1923
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232. The statement of the required set of
knowledge, skills and competencies
for a job is called the
a. Job specification
b. Job description
c. Job classification
d. Job analysis
26

29. Part A
246. Munnalal & Sons. is a mediumsized traditional family business
which wants to introduce some
modern management practices like
performance appraisal. The best
suited method for the company is
a. 360 degree performance appraisal
b. BARS
c. Management by objectives
d. Balanced scorecard method
242. Rishabh has an adventurous spirit
and loves trekking, rock-climbing
etc. He wants to be a fighter pilot.
His career anchor most probably is
a. Service
b. Pure challenge
c. Autonomy
d. Life style
247. Sugandhi works in a bank but works
from 9 a.m. to 2 p.m. (instead of 9 to
6) so that she is at home when her
kids are back from school. This is an
example of
a. Flextime
b. Part-time
c. Compressed work week
d. Telecommuting
243. Ramesh, the Marketing Manager in
a large firm meets the Production
Manager, Sr. Manager-HR and the
VP-Operations almost every day in
the officers’ club. Some topic or the
other, related to their organization
and business comes up for
discussion. This is an example of
a. Formal organization
b. Informal organization
c. Conference
d. Rumors
248. HR Manager, Pavithra, arranges
training programs and coordinates
with different departments to
conduct the same. She plays the role
of a __________ in this case.
a. Specialist
b. Facilitator
c. Change agent
d. Controller
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241. Sameer, a fresh chemical engineer
has been provided training in a
simulated work environment using
the same equipment and materials
that he would be using on the job.
This training is termed
a. Case exercise
b. Computer modelling
c. In-basket training
d. Vestibule training
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244. Sarita left her job as a receptionist
as she was not happy with the job
profile and wanted a more
challenging job that would suit her
qualification. Her leaving the
organization is termed
a. Layoff
b. Outplacement
c. Attrition
d. Loaning
245. One of the reasons for over-staffing
in the government and the public
sector enterprises is
a. Minimal turnover rates
b. Long-term planning
c. Continuous assessment
d. Highly qualified employees
249. Raghavan, Manager in the ER
division of the HR department in a
large firm ensures that the
production, engineering and other
departments comply with the
statutory requirements of the
contract labor laws. He plays the
role of a
a. Specialist
b. Facilitator
c. Change agent
d. Controller
250. Radiant Recordings is a small 8-year
old company employing around 40
people. The company wants to
forecast its manpower requirements
for the next 2-3 years. It can rely on
a. Time series analysis
b. Regression analysis
c. Past experience
d. Delphi technique
27

30. Introduction to Human Resource Management
Key
1.
d 2.
a
3.
b
4.
a
5.
b
6.
b
7.
a
8.
d
9.
c
10. a
13. a
14. b
15. c
16. d
17. a
18. a
19. b
20. b
21. a
22. a
23. c
24. d
25. c
26. a
27. b
28. b
29. a
30. d
31. a
32. c
33. d
34. a
35. d
36. a
37. b
38. d
39. a
41. c
42. b
43. b
44. a
45. b
46. b
47. a
48. a
49. b
50. a
51. d 52. b
53. d
54. d
55. a
56. d
57. d
58. a
59. b
60. d
61. a
62. d
63. b
64. a
65. d
66. a
67. a
68. a
69. b
70. c
71. d 72. b
73. d
74. c
75. d
76. c
77. a
78. b
79. c
80. d
81. c
82. d
83. c
84. a
91. d 92. d
93. b
94. d
101. b 102. d
103. c
104. d
111. b 112. a
113. d
121. c
122. a
131. c
132. a
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87. a
88. c
89. d
90. b
95. d
96. d
97. c
98. a
99. a
100. d
105. a
106. b
107. c
108. c
109. d
110. a
114. d
115. c
116. b
117. b
118. d
119. b
120. d
124. d
125. b
126. b
127. d
128. c
129. a
130. b
133. b
134. b
135. b
136. c
137. a
138. a
139. a
140. b
143. b
144. c
145. b
146. c
147. d
148. c
149. d
150. b
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86. a
123. a
152. d
U
151. a
40. a
85. b
se
141. b 142. a
0
11. b 12. d
153. b
154. c
155. d
156. b
157. a
158. b
159. d
160. a
162. b
163. a
164. c
165. c
166. a
167. c
168. b
169. d
170. a
171. c
172. c
173. b
174. c
175. c
176. b
177. c
178. a
179. b
180. c
BS
161. c
183. d
184. b
185. c
186. d
187. b
188. a
189. b
190. d
191. c
192. c
193. b
194. c
195. a
196. c
197. d
198. b
199. b
200. c
201. d 202. b
203. c
204. a
205. a
206. b
207. d
208. c
209. b
210. b
211. b 212. b
213. c
214. d
215. c
216. d
217. a
218. b
219. a
220. a
221. b 222. c
223. d
224. b
225. a
226. b
227. b
228. a
229. a
230. b
232. a
233. c
234. d
235. a
236. b
237. c
238. a
239. c
240. a
241. d 242. b
28
182. a
231. a
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181. c
243. b
244. c
245. a
246. c
247. b
248. b
249. d
250. c

31. Cl
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Part B: Caselets
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The caselets in this section are designed to encourage students to apply theoretical
concepts to various business situations. Analyzing these cases requires not only theoretical
knowledge, but also a comprehensive understanding of the business environment. These
cases test the student’s reasoning and comprehension skills.

32. Part B: Caselets
Caselet 1
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Sushma Sharma was excited about her first job at Aarohan, an established software
development firm. Having completed her masters degree in computer applications,
Sharma attended the initial selection process at Aarohan. She was quite impressed
with the way she was treated all through the selection procedure. She was therefore
glad to have received the offer letter for the position of junior programmer in the firm.
She was to report at the regional office to attend the Welcome to Aarohan program by
9am the following Monday.
Cl
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Sharma was among the ten new members recruited by Aarohan for the positions of
junior and senior programmers. Once she reached the premises of the office, Sharma
was pleased to be welcomed by the HR manager himself, who directed her to the
conference room. The Welcome to Aarohan program started as scheduled. It began
with a brief introduction of the company by the HR manager, Sreekanth Reddy.
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Reddy introduced the team to the history of the company, its founders, the values and
culture it upheld, the expectations of the organization, the basic norms to be followed,
the key personnel in the organization, and gave a brief insight into its various
procedures and processes. Reddy also talked about the company’s vision, mission, and
objectives and the way it intended to achieve them. He also briefed them about the
role each one of them had to play in order to accomplish the objectives of the
organization. This helped the team members along with Sharma, understand the
organization and their responsibilities and roles in it.
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Sharma, along with the rest of the team was trained in soft skills, basic system skills
of the company and other technical aspects of her job as well. Reddy also spoke about
the intranet at Aarohan which was meant to be used by the organizational members to
interact with each other. They were given their e-mail ids. Each of them was provided
with all the necessary office equipment like the PC, telephone, internet, and other
accessories required to perform their jobs, once they reached their workstations.
Reddy then introduced the incumbents to their respective supervisors and other team
members. Each incumbent was given a mentor who was supposed to help him/her
during his/her association with the organization. Sharma found her mentor to be an
extremely approachable and friendly person from whom she could take help and
support.
After this, Sharma, like the rest of the group had to complete a project that was very
helpful in understanding the job procedures and systems. This project required coordination and cooperation among all the members of the team. At the end of the
project, Sharma and other incumbents were asked to make a power point presentation
of their projects and their understanding of the organization as a whole. They were
also encouraged to discuss their experiences while working on the project, with the
rest of the team. These presentations and the discussions that followed helped the
incumbents understand the culture of the organization better.
At the end of the 15-day Welcome to Aarohan program, a feedback was taken from
the incumbents about their perceptions of the organization, its systems, procedures,
culture, etc. The feedback was also intended to elicit information from the new
employees about their personal goals and objectives and how they would contribute to
the growth of the organization. The incumbents were given complimentary gifts on
the last day of the program.

33. Introduction to Human Resource Management
The program left a pleasant feeling among the incumbents as they were made to feel
important during the initial days itself. Sharma could now evaluate her ‘fit’ into the
organizational culture and the work processes. She could now judge her skills and
abilities that would help her perform well and identify the areas for her improvement.
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Thus, Aarohan conducted an effective socialization process called the Welcome to
Aarohan program that aimed at familiarizing the incumbents with the culture, values,
norms and procedures of the organization. This in turn, helped Aarohan in developing
a workforce that understood the organizational objectives and their role in achieving
them.
Questions for Discussion:
1.
Discuss the significance of Welcome to Aarohan program in the present case, in
developing a knowledgeable and committed workforce that worked towards the
accomplishment of organizational goals and objectives.
2.
Citing the example of Welcome to Aarohan, describe a model for an effective
socialization process in an organization.
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Caselet 2
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Ecstatic Automobiles (Ecstatic) is a large manufacturer of two-wheelers, known for its
innovation in designing vehicles that never failed to attract customers. This led the
company to become the market leader within 10 years of its inception. However, a
recent change in the top management saw the value of its stocks dipping, and its sales
reached an all-time low. This was a serious cause for concern to the management,
which probed into the reasons for such a dismal performance. The study revealed that
two consecutive ventures in new model introduction had failed miserably in the
market.
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The chief engineer, Rakesh Iyer, was called for, to attend a meeting with the CEO and
the Managing Director, Ravi Ganesh. When asked for an explanation, Iyer explained
that the decreasing morale and motivation of design engineers was the main reason for
the low quality performance of the department. “Why don’t we motivate them by
doling out more incentives and bonuses for better performance?” asked Ganesh. In
reply, Iyer said that no amount of incentives or bonuses succeeded in enhancing their
morale and motivation. “Nothing seems to boost their motivation and productivity
levels,” said Iyer with a concerned voice. To this, Ganesh offered, “Then let me first
talk to your team and then we shall decide the plan of action.” After discussing a few
other issues, Ganesh informed Iyer that he would have a meeting with all the members
of the engineering department the following Monday. Iyer then left the room.
It was Monday morning, and every member of the design & engineering department
assembled in the conference room. Ganesh had a free and open interaction with the
entire department and emphasized the role they played in bringing the company to the
top position. He then talked about the deteriorating performance of the design
engineers in the recent past. “It has been observed that the design team, which has
been instrumental in bringing the company so many laurels and unparalleled success,
is now not contributing its mite towards the company’s profitability,” said Ganesh
with a concerned voice. He then discussed with the team, the problems being faced by
the members in their day-to-day activities.
This discussion led to the conclusion that it was the monotonous nature of the job that
demotivated the design engineers. They wanted more autonomy and freedom in their
jobs. Lack of freedom in their jobs led to a demotivated group of design engineers in
the organization, which in turn, affected the productivity and profitability of the firm.
It was therefore decided that the design engineers would be given more autonomy in
32

34. Part B
their jobs in terms of running their projects, selecting outside consultants, etc. The
management also decided that representatives from the design team would be present
during the selection process for new employees in the department. As a result, the
design team now had the autonomy to decide the projects they would work on, how
they would go about it, and the composition of the team. After these changes were
implemented in the department, the design team showed substantial improvement in
their performance.
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The next two models of the sports bike launched by the company were a hit in the
market and the company registered a record profit, which was around 40% more than
the previous year’s. The job enrichment effort thus resulted in increased productivity
among its employees. This initiative also enhanced the morale and motivation levels
of the engineering department. It was evident from the fact that within a short span of
8 months, three other models were also ready for production. Iyer too, was extremely
satisfied with the performance of his team members.
Question for Discussion:
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Having experienced this unprecedented rate of success of the organization through the
process of job enrichment, the management decided to extend this concept to the rest
of the departments as well. As expected, the other departments also produced similar
results and recorded huge profits for the organization. Thus, Ecstatic is an
organizational example for the success of job enrichment method of job re-design.
Ecstatic Automobiles had benefitted immensely by introducing the concept of job
enrichment, not only in terms of increased productivity levels but also in the form
of enhanced employee morale and motivation. Discuss the ways in which modern
organizations like Ecstatic are being benefitted by enriching the jobs of their
employees.
2.
Discuss the variety of ways in which organizations can enrich the jobs of their
employees.
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Caselet 3
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Esteem Enterprises (Esteem), is a leading producer of computer hardware equipment
in the industry. In an interview with a national daily, the company’s CEO stated that
the secret behind the success of Esteem was its ability to adapt to changes in the
environment. This adaptability was possible due to an ongoing succession planning
process that takes place through out the year. Named “Leadership Development
Program,”(LDP), the succession planning at Esteem aims at creating and developing
strong leadership, that is capable of addressing all the skills and competencies
required to face the challenges posed by today’s dynamic business environment. The
LDP strives towards attaining organizational excellence through its talented
workforce.
The LDP was the brainchild of the CEO of Esteem, Shivraj Dixit, who felt that the
organization must be ready to face any eventuality or crisis at any point of time. Dixit
strongly believed that the organization must not be dependent on a single individual or
a group of individuals for its development. On the other hand, it must nurture a
number of leaders who will lead the firm towards the accomplishment of
organizational goals and objectives.
The LDP followed a simple but continuous process that aimed at developing
necessary skills and competencies among its employees that would help the
organization meet the present and future demands of the ever-changing external
environment. The LDP is headed by a group of experienced employees from the top
management. They first identify the existing competencies of the employees and key
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35. Introduction to Human Resource Management
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personnel in the company and compare them with the requirements of the industry it
competes in. Through a series of evaluation processes, the team assesses the training
needs of the existing employees, which help in achieving the organizational goals.
The team then plans for the implementation of the necessary training, mentoring or
coaching sessions to enhance the skills and competencies of employees to meet the
organizational objectives. The team at this stage also considers the probability of
having to recruit people from outside the company, in order to meet the future needs
of the organization. The LDP then drafts a plan of action for the next three months. It
uses succession planning applications like the human resource information systems
(HRIS) that provide the firm with an insight into its future requirements. Since Esteem
is a large organization, the use of such applications proves to be very beneficial to the
organization.
Esteem also took the support and assistance of an external recruiting consultant to
provide the right personnel to the firm at the right time. This became necessary when
there was a dearth of internal talent among the existing employees. It provided Esteem
the additional benefit of focussing on strategic issues in human resource management.
Questions for Discussion:
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Thus, with the top management investing sufficient time and resources on succession
planning, Esteem’s LDP was successful in being able to provide just the right kind of
people not just for the present, but for the future as well. The succession planning
program at Esteem is thus a constant and ongoing process that prepares the company
to handle even unforeseen challenges and eventualities.
Discuss in brief, the various phases in the succession planning process at Esteem,
that helped it to become one of the top manufacturing companies in an industry
that was sensitive and adaptive to the dynamic business environment.
2.
Discuss the elements of an effective succession planning program that helps an
organization prepare itself to meet its goals and objectives, through constant
availability of talented human resources.
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Caselet 4
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Integrated Solutions was a growing organization in the telecom industry. Its
phenomenal growth in the recent past led to a huge manpower requirement in the
company. Recruiting the required resources was a challenging task for the HR
department as there was a dearth of talent in human resources in the market with too
many companies vying for the same talent. The CEO of the company called for a
meeting of all the heads of departments to discuss ways in which the manpower
requirement could be met. The CEO invited suggestions about innovative ways of
recruiting top talent in the industry.
34
Anupama Roy, the HR manager had a point to make. She said, “This is a difficult task
for us, as most of the openings in the company are in the middle and top managerial
positions, for which we require experienced personnel. Unfortunately, most of them
will be already employed and busy in their jobs. So, our job now is to attract this
group of passive job-seekers.” At this point, one of the project leaders raised a doubt,
“In such a competitive business scenario, how successful will we be in attracting the
attention of skilled employees?” The CEO agreed and so did Roy. “Perhaps, we could
conduct a study to identify ways of capturing this potential group of candidates,”
suggested Roy. It was then decided that a team of members from the HR department
will study the way employees in organizations sought for new opportunities in the job
market.

36. Part B
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Accordingly, a team of three members headed by Amit Bajaj set out to study ways in
which passive job-seekers could be attracted. The survey conducted by Bajaj and his
team dealt with issues like how the potential job seekers in the industry spent their
free time, the web-sites they visited, their intentions of seeking a new job, their
satisfaction levels in their present jobs, their expectations about an ideal work
environment, etc. After a week, Bajaj was ready with the report and presented it in a
meeting, which was also attended by the CEO, the HR manager and the Systems
manager. The report found that a person already possessing a job would approach
another organization if invited by a friend or associate working for the same
organization. The report also brought to light, the fact that people desist seeking new
opportunities elsewhere because of the long time wasted during the entire hiring cycle.
Based on the above report, Roy, in consultation with the CEO, Systems manager and
Bajaj, drafted the following plan of action:
Integrated Solutions initiated a new scheme called, ‘Invite a friend,’ based on the
finding that people approach organizations when advised by acquaintances
already working for those firms. Accordingly, the Invite a friend scheme was
introduced to encourage employees to bring in potential candidates from among
friends and acquaintances for the various positions available in the organization.
In case the candidate got selected, the employee who referred him/her would be
rewarded. Within a year of its introduction, it was found that around 40%-50% of
the new employees were recruited through this scheme.
•
The company also hired in-house head hunters who were completely devoted to
the process of hiring talented people. This reduced the cycle time involved during
the entire hiring procedure, which in turn attracted potential candidates.
•
Integrated solutions linked their corporate web-site to the sites that are more
likely to be visited by a maximum number of potential candidates. This increased
the number of hits by job-seekers to their web-site. This in turn, helped attract
passive job-seekers.
•
The organizational members mingled with people belonging to other companies
at various social gatherings and festivals and talked positively about Integrated
Solutions.
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Thus, the innovative ways of recruitment at Integrated Solutions helped the firm
attract nearly 10% of the top talent in the industry. They also helped reduce the costs
involved in the hiring process to a substantial extent. Soon, the company gained a
strong competitive edge over its rivals in the industry through the strength of its
human capital. This reinforced the belief that if an organization can manage to get the
best talent present in the industry and succeed in retaining it, then it would remain the
leader in the industry, merely on the strength of its human resources.
Questions for Discussion:
1.
Integrated Solutions initiated a number of steps to attract the top talent in the
industry as discussed in the case. Briefly describe the factors that are to be
considered by the company before framing its recruitment policy.
2.
Evaluate the success of the recruitment process initiated by Integrated Solutions.
Caselet 5
Digital Electronics (Digital) was established twenty years ago by Ramprasad Goud.
The mission of this manufacturer of consumer electronic goods was to produce high
quality, innovative products at the lowest possible costs, that catered to the ever
changing needs of its customers. The organizational structure at Digital was
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37. Introduction to Human Resource Management
characterized by a tall hierarchy with a number of managerial levels between the shop
floor executives and the CEO. The leadership style that prevailed in the company was
the autocratic form, wherein employees were seldom involved in the organization’s
decision-making process. All crucial decisions were made by the top management and
merely conveyed to employees at the lower rung of the organizational structure.
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Though Digital had been performing well in the industry, its profitability levels and
market share were gradually dwindling. This was a serious cause for concern to the
CEO, Goud, who invited top level managers to give their suggestions, to tackle this
problem. A discussion that followed during the meeting identified the deteriorating
quality of their products coupled with lack of innovation (especially during the recent
past) as the main reason for the low demand for their products in the market.
Mohan Das, the Director HR, blamed the organizational structure for the depressing
innovative spirit among its employees, which in turn, hit the sales. He suggested that
Digital introduce the concept of self-managed teams (SMTs) to overcome this crisis.
By providing enhanced responsibility and authority to a group of individuals through
SMTs, Digital might enhance employee commitment which would result in improved
quality of goods and in the productivity and efficiency of the workers.
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The whole team was taken aback for a moment, when they heard the proposal of Das.
Goud himself felt that the bureaucratic culture at Digital might not encourage the
implementation of SMTs. “Besides, there are other issues that have to be dealt with, to
ensure success of the SMTs,” said Goud. Das then pointed out recent organizational
examples which had benefited by implementing the concept of SMTs. One of the
examples was that of a reputed telecom company that had witnessed a 26% increase in
its sales after the introduction of SMTs in its sales force.
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Though the management was not much convinced about the proposal, it decided to
introduce SMTs in its production and R&D departments. After a careful analysis of
the organizational culture and the benefits likely to be accrued to the organization
through its new initiative, Das implemented the concept of SMTs in both the
departments. Although Digital faced a few problems during the initial stages, it began
reaping the benefits of improved productivity and greater innovation among its
employees. Soon, the sales figures picked up and the company recorded huge profits
and increased market share. Having realized the potential benefits of SMTs, Digital
extended the concept to other departments as well. Thus, by introducing self-managed
teams in the organization, Digital Electronics not only experienced a rise in its
profitability and market share, but also reaped the benefits of a motivated and a
committed workforce.
BS
Questions for Discussion:
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Mohan Das carefully analyzed the organizational culture at Digital before
deciding to implement the concept of SMTs. Discuss the various cultural issues
that might have cropped up during the implementation of SMTs at Digital
Electronics.
2.
Briefly describe the characteristics of self-managed teams and the benefits that
are likely to accrue to the organizations which implement them.
Caselet 6
Softpro Technologies was a 35-year old manufacturer of computer accessories. With
an initial manpower of 80 people, Softpro grew into an established organization with
8000 employees working for it. The founder of Softpro, Bhanu Murthy, opted for a
bureaucratic and tall hierarchical structure so as to have a direct control over the
various operations of the organization. This centralized structure however, had its own
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38. Part B
drawbacks. There was no direct communication between the top management and the
lowest cadre in the organization. The tall structure prevented quick decision-making
regarding new initiatives or proposals like new product development. This in turn,
made it difficult for Softpro to adapt to changes in the external environment, thereby
making it less competitive in the extremely dynamic business environment. The everincreasing size of the organization also made effective supervision impossible.
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In response to the dipping profits and deteriorating employee morale, Murthy decided
to decentralize its structure. Accordingly, he divided the organization into a number of
divisions. Each division was in charge of a group of related products. The division
was made on the basis of the product group. In other words, as the number of product
groups/lines increased, the number of divisions increased as well. Each division had
its own sales department which took care of marketing its products. Murthy felt that
this structure would give each division considerable autonomy, and create an
environment that nurtures and encourages individual creativity and initiative. This in
turn, would result in a motivated workforce. By decentralizing its operations, Softpro
intended to retain the kind of intimacy and ease of communication that once existed
when it was very young.
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However, with the increasing size of operations and the growing number of product
lines, the decentralized structure at Softpro, began creating new problems for the
company. As the number of divisions increased, coordination between them got
reduced. This created an impression among customers that each of them was a
different organization. It also affected decision-making at Softpro. Bureaucracy crept
into the organization again and had a negative impact on its profitability. Softpro soon
began losing its market share.
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Murthy stepped down and invited a dynamic successor, Kailash Nath to lead the
organization. Nath was a famous personality in the corporate world, known to have
turned around many companies. After studying the organizational structure and the
culture at Softpro, Nath proposed to dismantle the decentralized structure. He
organized the numerous divisions into six centralized groups which concentrated on
two main activities – product development, and sales and marketing. Nath expected
the new structure to strengthen collaboration and communication between the two
groups, thereby catering to the needs of the customers and solving their problems.
Thus the division of the back-end and front-end activities helped Softpro solve a
number of its long-standing problems. With clear lines of responsibilities, the R&D
strategy of the product development division resulted in filing more patents that year
compared to those filed during the previous years.
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However, a lack of coordination between the two groups began creating a new set of
problems for Softpro. Ineffective communication between the two groups and the lack
of authority to the back-end managers to set sales forecast, resulted in the R&D
department not being able to allocate funds accordingly. At the same time, front-end
sales representatives faced problems meeting their forecast as back-end colleagues
came up with the wrong products. This was because back-end designers were not able
to stay close enough to the customers to deliver products as per their requirements
(and there was no proper communication between the front-end and back-end sales
representatives).
Thus, despite the efforts of the management at Softpro to strike a balance between a
centralized and a decentralized organizational structure, the company continued to
face problems due to the size and complexity of the organization.
Questions for Discussion:
1.
Examine the restructuring plan put in by Kailash Nath and critically comment on
the advantages and disadvantages accrued to Softpro.
2.
In the light of the above case, discuss the kind of organizational structure that
emerges successful in this dynamic business environment.
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39. Introduction to Human Resource Management
Caselet 7
Goutham Ghosh was a regular customer of APN Bank Ltd., a public sector bank that
was established forty years ago. The bank has been doing well, in terms of its market
share and profitability in the region. However, Ghosh had a bitter experience with the
bank when he visited one of its busiest branches recently.
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Ghosh saw an unending queue at almost all the teller counters. There were about 25
customers waiting at the cash counter for their transactions, while the teller counter
executive was attending to a call over the telephone for more than fifteen minutes,
without attending to the waiting customers. It was only after the assistant manager’s
instruction that the executive hung the telephone and attended to the customer. One of
the customers then requested that he be given notes of a higher denomination as the
amount was huge. His request was turned down with a curt, “We do not hold higher
denomination right now. If you insist, come after three hours, we would exchange
them.” The plight of customers waiting for other banking transactions was no better.
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While a demand draft had to be processed within ten minutes of application, it took
nearly half-an-hour for an elderly person to finally collect the draft. The customer was
given no explanation for the delay. In fact, even at the account opening counter, bank
executives were seen behaving impolitely with prospective customers who wished to
open accounts with the bank. Ghosh observed that the teller counter executive
responsible for account opening transactions refused to help an applicant in filling up
the complicated application form. “Get the application filled and we shall go ahead
with the process,” she sneered. Once the customer filled the form and submitted it to
the executive, with a frown on her face, she said, “Your application cannot be
accepted as it is not filled in black ink.” The disgusted customer just placed the form
on her table and walked away.
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Ghosh himself had approached the bank to purchase a tax-relief bond. He found it
agonizing to wait for more than twenty minutes to get hold of the executive
concerned. And even after she finally attended to him, she could not listen to his
queries as she was constantly being interrupted by phone calls and other customers
who had been waiting for her. “Can you tell me where the cash counter is?” inquired
one customer. “I do not know,” came the reply from the executive. This irritated the
customer and he began shouting at the executive, blaming her for bad customer
service.
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People who had come to the bank for various other services like home loans, credit
cards, Demat transactions etc., also had similar experiences to share. Ghosh brought
this to the notice of the branch manager, who happened to be his old-time friend. The
branch manager apologized for the behavior of his team and promised Ghosh that he
would look into the matter seriously.
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The branch manager was in a fix. If this attitude of his employees continued, the bank
would soon lose valuable customers. The manager called for a meeting of all his staff
members. He expressed concern over the behavior of teller counter executives and
explained that customers must be greeted with a smile and treated well. He
emphasized exceptional customer service that would create a competitive advantage
for the bank. The members of the bank reacted negatively to this. “Well, all this was
not mentioned in our job description,” countered one of the executives. This was
strongly supported by his colleagues. “You cannot impose new rules each day, and it
is anyway not possible to smile and oblige customers amidst all the chaos,” said
another. The meeting ended on a negative note, creating ill-will between the manager
and the staff.