Trueman 2019edition PDF

New Edition : 2019
CBSE
UNIT
MANAGEMENT
AND ITS FUNCTIONS
Meaning of Management
Management is an individual or a group of individuals that accept responsibilities to run an
organisation. They Plan, Organise, Direct and Control all the essential activities of the organisation.
Management does not do the work themselves. They motivate others to do the work and co-ordinate
(i.e., bring together) all the work for achieving the objectives of the organisation.
Management brings together all Six Ms i.e., Men and Women, Money, Machines, Materials, Methods
and Markets. They use these resources for achieving the objectives of the organisation such as high
sales, maximum profits, business expansion, etc.
Management is the process of conducting a set of functions (planning, organising, staffing, directing
and controlling) to get the work done in an efficient and effective manner.
Management is the art of knowing what you want to do and then seeing that they do it in the best
and the cheapest way.
In other words, “Management is the process of planning, organising, leading, and controlling the
efforts of organisation members and of using all other organisational resources to achieve stated
organisational goals”.
Management focuses on the entire organisation from both a short and a long-term perspective.
Management aims to increase the effectiveness of organisations. It’s about making the most of the
resources entrusted to you, and making sure the expectations of customers, employees and shareholders
are met.
According to Theo Heimann, management has three different meanings, viz.,
1. Management as a Noun. refers to a Group of Managers.
2. Management as a Process. refers to the Functions of Management i.e., Planning, Organising,
Directing, Controlling, etc.
3. Management as a Discipline. refers to the Subject of Management.
Definition of Management
 According to D.J. Clough, “Management is the art and Science of decision-making and
leadership.”
(1)
2 Human Resource Management Specific
m According to Henry L. Sisk, “Management is the coordination of all resources through the
process of planning, organising, directing and controlling in order to attain stated goals.”
m According to George R. Terry, “Management is a distinct process consisting of planning,
organising, actuating and controlling performed to determine and accomplish stated objectives
by the use of human being and other resources.”
m According to C.W. Wilson, “Management is a process of releasing and directing human energies
towards attaining a definite goal.
m According to B.O. Wheeler, “Business management is a human activity which directs and
controls the organisation and operations of business enterprise.”
m According to Mary Parker Follet, “Management is the art of getting things done through people.”
m According to Peter F. Drucker, “Management is a multi-purpose organ that manages business
and manages managers and manages workers and work.” This definition of management was
given by Peter Drucker in his book “The Principles of Management”.
m According to Harold Koontz, “Management is the art of getting things done through and with
people in formally organised groups.” Harold Koontz gave this definition of management in
his book “The Management Theory Jungle”.
m According to Henry Fayol, “To manage is to forecast and to plan, to organise, to command, to
co-ordinate and to control.” Henry Fayol gave this definition of management in his book
“Industrial and General Administration”.
Some other Definitions

m Management consists in guiding human and physical resources into dynamic, hard-hitting
organisation unit that attains its objectives to the satisfaction of those served and with a high
degree of morale and sense of attainment on the part of those rendering the service.
—Lawrence A. Appley
m Management is principally the task of planning, coordinating, motivating, and controlling the
efforts of others towards specific objective.
—James L. Lundy
m Management is the art and science of organising and directing human efforts applied to control
the forces and utilise the materials of nature for the benefit of man.
—American Society of Mechanical Engineers
m Management is the art of knowing what you want to do and then seeing that it is done in the
best and cheapest way.
—F.W. Taylor
m Management is the function of executive leadership anywhere. —Ralph C. Davis
m Management is concerned with seeing that the job gets done, its tasks all centre on planning
and guiding the operations that are going on in the enterprise.
—E.F.L. Breach
m Management is guiding human and physical resources into dynamic organisational units
which attain their objectives to the satisfaction of those served and with a high degree of morale
and sense of attainment on the part of those rendering service.
—American Management Association
Features of Management
1. Continuous and never ending process. Management is a Process. It includes four main
functions, viz., Planning, Organising, Directing and Controlling. The manager has to Plan and
Management and its Functions 3
Organise all the activities. He had to give proper Directions to his subordinates. He also has to
Control all the activities. The manager has to perform these functions continuously. Therefore,
management is a continuous and never ending process.
2. Getting things done through people. The managers do not do the work themselves. They get
the work done through the workers. The workers should not be treated like slaves. They should
not be tricked, threatened or forced to do the work. A favorable work environment should be
created and maintained
3. Result oriented science and art. Management is result oriented because it gives a lot of
importance to “Results”. Examples of Results like, increase in market share increase in profits,
etc. Management always wants to get the best results at all times.
4. Multi-disciplinary in nature. Management has to get the work done through people. It has to
manage people. This is a very difficult job because different people have different emotions,
feelings, aspirations, etc. Similarly, the same person may have different emotions at different
times. So, management is a very complex job. Therefore, management uses knowledge from
many different subjects such as Economics, Information Technology, Psychology, Sociology,
etc. Therefore, it is Multi-disciplinary in nature.
5. A group and not an individual activity. Management is not an individual activity. It is a group
activity. It uses group (employees) efforts to achieve group (owners) objectives. It tries to satisfy
the needs and wants of a group (consumers). Nowadays, importance is given to the team
(group) and not to individuals
6. Follows established principles or rules. Management follows established principles, such as
division of work, discipline, unity of command, etc. These principles help to prevent and solve
the problems in the organisation.
7. Aided but not replaced by computers. Now-a-days, all managers use computers. Computers
help the managers to take accurate decisions. However, computers can only help management.
Computers cannot replace management. This is because management takes the final
responsibility. Thus Management is aided (helped) but not replaced by computers.
8. Situational in nature. Management makes plans, policies and decisions according to the
situation. It changes its style according to the situation. It uses different plans, policies, decisions
and styles for different situations. The manager first studies the full present situation. Then he
draws conclusions about the situation. Then he makes plans, decisions, etc., which are best for
the present situation. This is called Situational Management.
9. Need not be ownership. In small organisations management and ownership are one and the
same. However, in large organisations, management is separate from ownership. The managers
are highly qualified professionals who are hired from outside. The owners are the shareholders
of the company.
10. Both an art and science. Management is result-oriented. Therefore, it is an Art. Management
conducts continuous research. Thus, it is also a Science.
11. Management is all pervasive. Management is necessary for running a business. It is also
essential for running business, educational, charitable and religious institutions. Management
is a must for all activities, and therefore, it is all pervasive.
12. Management is intangible. Management is intangible, i.e., it cannot be seen and touched, but
it can be felt and realised by its results. The success or failure of management can be judged
only by its results. If there is good discipline, good productivity, good profits, etc., then the
management is successful and vice-versa.
13. Uses a professional approach in work. Managers use a professional approach for getting the
work done from their subordinates. They delegate (i.e., give) authority to their subordinates.
They ask their subordinates to give suggestions for improving their work. They also encourage
subordinates to take the initiative. Initiative means to do the right thing at the right time without
being guided or helped by the superior.
14. Dynamic in nature. Management is dynamic in nature. That is, management is creative and
innovative. An organisation will survive and succeed only if it is dynamic. It must continuously
bring in new and creative ideas, new products, new product features, new ads, new marketing
techniques, etc.
Objectives of Management
Objectives of management can be broadly divided into the following three categories:
m Organisational Objectives. It refers to ascertain objectives for the whole organisation which
are survival, profit and growth:
(i) Survival. Every business wants to survive for long. So, management by taking positive
decisions with regard to different business activities should ensure that business survives
for long.
(ii) Profit. Profit plays an important role in facing business hazards and successful running of
business activities. So, it must be ensured that adequate profit is earned by the business.
(iii) Growth. Every business wants to grow. Management must ensure growth of business.
Growth can be measured by sales, number of employees, products, capital investment, etc.
If all these show increasing trend then it can be concluded that business is heading towards
growth.
m Social Objectives. It refers to assure health, safety and price control to the society.
Main social objectives of management are included in the following list:
(i) To save environment from getting polluted.
(ii) To contribute in improving living standard.
(iii) To make available good quality products at a reasonable price.
m Personal Objectives. It refers to ascertainment of the objectives in reference to the employees.
While ascertaining personal objectives, care must be taken that in no way there is a clash
between organisational and personal objectives.
Main objectives of management towards employees are as follows: (i) To give deserving
remuneration. (ii) To provide good working environment. (iii) To provide a share in profit.
(iv) Importance of Management
In short, the importance of management is explained through the following facts:
m Management helps in the Development of Society. Management has some responsibility
towards society. Managers by fulfilling their social responsibilities helps in the development of
society. These responsibilities are to provide employment opportunities, to prevent environment
from getting pollution, to make available good quality products at a reasonable price, etc.
m Management Creates a Dynamic Organisation. Every organisation works in an ever changing
environment. To face the changing environment, many changes need to be made in the
organisation as well. But people resist changes. Manager creates a favorable environment
through introducing employees to the benefits arising by adapting changes.
m Management Increases Efficiency. A manager increases efficiency through the optimum
utilisation of all the resources, such as, Man, Machine, Material and Money.
m Management helps in achieving Group Goals. It is the most important characteristic of
management that it is goal-oriented activity. A manager achieves these goals by giving the
common direction to the efforts of all individuals.
m Management helps in achieving Personal Objectives. Every employee wants to get suitable
remuneration, a share in profit, participation in management, promotion, etc. in the form of his
personal objectives. This objective can only be achieved, if they work while using their full
abilities. Managers make employees able through motivation, good leadership and open
communication. As a result, they attain their individual objectives.
Level of Management
Two leaders may serve as managers within the same company but have very different titles and
purposes. Large organisations, in particular, may break down management into different levels because
so many more people need to be managed. Typical management levels fall into the following categories:
Board of Directors
Top Management
Managing Directors
Marketing Production Finance Intermediate

Manager Manager Manager Management
Branch Plant Chief Middle

Manager Superintendent Accountant Management
Sales Foremen or Accounts of Operating

Officers Supervisors Finance Officers Management
Salesmen Workers Clerks Rank and File

Work Force
Level of Management
m Top level. Managers at this level ensure that major performance objectives are established and
accomplished. Common job titles for top managers include chief executive officer (CEO), chief
operating officer (COO), president, and vice president. These senior managers are considered
executives, responsible for the performance of an organisation as a whole or for one of its
significant parts.
m Middle level. Middle managers report to top managers and are in charge of relatively
large departments or divisions consisting of several smaller units. Examples of middle manag-
ers include clinic directors in hospitals; deans in universities; and division managers, plant
managers, and branch sales managers in businesses. Middle managers develop and imple-
ment action plans consistent with company objectives, such as increasing market presence.
m Low level. The initial management job that most people attain is typically a first-line
management position, such as a team leader or supervisor — a person in charge of smaller
work units composed of hands-on workers. Job titles for these first-line managers vary greatly,
but include such designations as department head, group leader, and unit leader. First-line
managers ensure that their work teams or units meet performance objectives, such as producing
a set number of items at a given quality, that are consistent with the plans of middle and top
management.
Difference Between Top, Middle and Lower Level of Management

Basis of Top Level Middle Level Lower Level
Difference Management Management Management
Skills Creative skills are required. Persuasive skills are required. Operative skills are required
Persons Very less number of persons Moderate number of persons Relatively high number of persons
Function Policy formulation Policy Interpretation Policy Implementation
Nature Administrative Executive Operative
Period Long period is covered Intermediate range is covered Short period is covered
Functions of Management
Functions relating to activities such as producing, purchasing, advertising, selling and
accounting differ from one organisation to other. However, the functions of management are common
to all the organisations even to non-profit organisation. The French Industrialist and popularly
known as the founder of modern management theory, Henry Fayol, divided all activities of an
industrial unit into six categories: Technical, Commercial, Financial, Security, Accounting &,
Managerial
Fayol distinguished between principles and elements of management, using the former for rules
and guides, and the elements of management for its functions. Fayol grouped these elements into five
managerial functions as: Planning, Organising, Staffing, Directing & Controlling
A brief discussion of each of these functions can be explained as follow:

Planning. Planning is deciding in advance what is to be done, how and when it is to be done. It is
concerned with projecting the future course of action for the business as a whole and the different
sections within it. Planning is the foremost and the primary function of management. It involves the
determination of objectives and selecting the best course of action which will lead to the achievement
of the predetermined objectives. Planning is the preparatory step for actions and helps in bridging the
gap between the present and the future. Planning provides the solution to the various problems like:
m What are the necessary actions for the achievements of the predetermined objectives?
m What are the reasons for these necessary actions?
m When will these actions take place?
m How will these actions take place?
m Who should be made responsible for these actions?
Basically planning is concerned with the determination of the following: Objectives, Policies,
Procedures, Rules, Programme, Budget & Strategies
The process of planning includes the following steps:
m Determination of the objectives of the organisation
m Forecasting or anticipating the future courses of actions
m Choosing the best course of action or decision making
m Formulation of policies, programmes, budget etc. for the achievement of the predetermined
objectives.
m Laying down the procedures and standards of performance.
Organising. To divide the work, rights, and liability among the personnel engaged in the achievement
of the objectives and establishing the formal relationship among them is called organising. It is concerned
with development of a structure of authority and responsibility among the personnel, so that they can
effectively perform their work. Thus, Organising is the process of establishing harmonious relationship
among the members of the enterprise.
Organising basically consists of the following steps:
m Determination of the activities of the enterprise keeping in view its objectives.
m Classification of such activities into convenient groups for the purpose of division.
m Assignment of these groups of activities to the individuals.
m Delegation of authority and fixing of responsibility for carrying out the assigned duties.
m Coordination of these activities and authority relations throughout the organisation.
So, division of work among people and coordination of their efforts to achieve specific objectives
are the fundamental aspects of organising.
Staffing. Organisation as a function of management helps the executive to establish positions and lay
down their functional relation to each other whereas through staffing function, the different positions
in the organisation structure are kept manned. Staffing involves manning of various positions created
by the organising process. So staffing is the process of filling all positions in the organisation with
qualified and adequate personnel. Staffing is a continuous function. A new enterprise needs to employ
people to fill positions established in the organisation. In an established concern also such factors like
death, retirement, resignation, termination, promotion, demotion, transfer etc. necessitate continuous
performance of this function.
Staffing involves the finding of right person for the right job and placing him at the right place,
doing the right job at the right time. Steps involved in the process of staffing:
m Estimate the size and the makeup of the future manpower needs (Manpower Planning).
m Acquiring the most competent and qualified applicants to meet the manpower needs
(Recruitment).
m Evaluating the applicants for different positions, choosing the best candidates, and assigning
them to the right jobs (Selection and Placement).
m To arrange training and development of the employees to secure efficiency of operation.
m Periodic evaluation of the performance of employees (Performance appraisal).
m Promotion and transfer of employees (Job changes).
The importance of staffing as a function of management arises from the importance of human
resources in an organisation. Staffing involves manning the organisation structure through proper
and effective recruitment, selection, training, development and appraisal of personnel to fill the roles
designed into structure. Staffing ensures the availability of the required human resources at all times.
Directing. In addition to planning, organising and staffing every manager must also direct his
subordinates. Directing is thus the initiating function of management that actuates plans and the
organisation. Directing is an important function of management which involves communicating and

providing leadership to the subordinates and motivating them to continue to the best of their capability
for the achievement of organisational objectives. It is concerned with influencing the behaviour of
human resources for the accomplishment of organisational objectives. It is therefore the life spark of an
organisation as it is through directing that actual performance of the employees is guided towards
common goals.
Important elements of Directing. The main elements of directing are :
m Supervision: Supervision is the main element of directing. The term supervision is made up of
two words super and vision which means expert overseeing of employees at work. It involves
direct personal contact with the subordinates. Supervision converts plans into action. Further
the supervisor serves as a link between the workers and the management. It is necessary at all
levels of management and throughout the chain of command; each superior supervises the
work performance of his subordinates.
m Motivation: Motivation is an impulse drive or urge to move in specific direction to reduce a
need. It is an act of understanding the motives and satisfying them to direct and sustain behaviour
towards the accomplishment of organisational goals. Thus, motivation is an act of stimulating
people to get desired course of action. Motivation is a psychological concept. It is concerned
with the intrinsic forces operating within an individual which impel him to act or not to act in
a particular way.
m Communication: Communication is an important element of direction. In fact superior subordinate
relationship cannot thrive without effective and meaningful communication. Effective
communication is defined as the exchange of thoughts, facts, opinions, or information by two
or more persons so as to bring mutual understanding or confidence. Communication can be
done through words, symbols, letters, or actions. So communication is the transfer of information
or understanding from one person to another.
m Leadership: Leadership is one of the important aspects of managing. It is an interpersonal
process of influencing the behaviour of individual and the group so that defined objectives are
accomplished willingly and enthusiastically. A leader is the individual with the major influence
in the group and whose main role is to get others to the organisational goals. A leader directs
and motivates members of the group. He also represents the group to the outside world and the
outside world to the group.
Controlling. Control is a fundamental function of management that usually follows the other functions.
It is a continuing process of management. Controlling means the measurement and correction of
performance of activities of subordinates in order to ensure that predetermined objectives can be
achieved. So control guides the activities of the employees towards the predetermined goals. It is the
process of ensuring that events confirm to the plans as closely as possible. It is the application of
corrective measures to remove the deviations if actual performance does not meet the standards.
Controlling is the last but the most important function of management. Objective of every
organisation is to use scarce resources in a best possible way. Plans are framed to achieve better
results. Control is the process of checking whether the plans are being adhered to or not, keeping a
record of progress, then taking corrective measures, if there is any deviation. Control is one of the
important managerial functions which bring the actual results closer to the desired results.
Following steps are included in the process of controlling:
m Setting of goals and standards.
m Appraisal of performance.
m Determining the reasons of deviations.
m Taking Corrective Action.
Thus controlling is the process under which actual performance is compared with the fixed
standards, deviations are discovered, the reasons are analyzed, and corrective action is taken so that
repetition of such mistakes in future can be avoided.
SCHOOL OF MANAGEMENT THOUGHT

Stages in the History of Development of Management Thought
I. The Classical Approach
1. Bureaucratic model introduced by Max Weber around 1900.
2. Scientific management concepts introduced by F.W. Taylor around 1910.
3. Functional and administrative theory advanced by Henry Fayol around 1910.
II. The Neo Classical Approach
1. Human relation movement was propagated by Elton Mayo and Roethlisberger around
1930.
2. Behavioural Sciences movement was introduced by A. Maslow, McGregor around 1940.
III. The Modern Approach
1. Quantitative approach or operation research analysis.
2. System approach was propounded by Boulding, Johnson and others after 1950.
3. Contingency Approach was developed by Lorsch, Lawrence and others.
Classical Scientific Management

The classical management theory, developed during the Industrial Revolution when new problems
related to the factory system began to appear. Managers were unsure of how to train employees (many
of them non-English speaking immigrants) or deal with increased labour dissatisfaction, so they
began to test solutions.
As a result, the classical management theory developed from efforts to find the “one best way” to
perform and manage tasks. This school of thought is made up of two branches: classical scientific and
classical administrative, described in the following sections.
The classical scientific branch arose because of the need to increase productivity and efficiency.
The emphasis was on trying to find the best way to get the most work done by examining how the work
process was actually accomplished and by scrutinising the skills of the workforce.
The classical scientific school owes its roots to several major contributors, including Fredrick
Taylor, Henry Gantt, Frank and Lillian Gilbert.
Meaning of Scientific Management

The concept of scientific management was introduced by Fredrick Winslow Taylor in U.S.A in the
beginning of 20th Century. This concept was further carried on by Frank and Lillian, Edward Fellen
etc. Scientific management was basically concerned with the improvement in the operational efficiency
of the shop floor workers.
In a broad sense, scientific management implies the application of scientific methods of study and
analysis to the problems of management. It is a systematic and thoughtful approach to the job of
management as compared to the rule-of-thumb, or hit and miss, or trial and error approaches. It is
concerned with the scientific bent of mind and is more than merely a set of techniques for improving
efficiency. It implies substitution of exact scientific investigation and knowledge for individual
judgement or opinion in all matters undertaken in the establishment.
Definition of Scientific Management

m According to F.W. Taylor, “Scientific management is concerned with knowing exactly what
you want men to do and then see in that they do it in the best and cheapest way”.
m According to Drucker, “The cost of scientific management is the organised study of work, the
analysis of work into its simplest elements and the systematic management of the workers,
performance of each element”.
Taylor pointed out that the objective of management should be to secure the maximum prosperity
for both the employer and the employee. Therefore, every employee should be developed to his/her
greatest efficiency. Taylor provided the scientific approach to management comprising of observation,
measurement, experimentation, and inference for eliminating the waste and inefficiency. Taylor had
emphasized on the scientific decision making for the managers. He stated that the managers should
resort to the scientific research for every work and decision. According to him the managers should
make important decisions on the basis of the collected facts instead of giving directions without
proper deliberations. A manager should not take any action on any matters until all facts are collected
and scientific analysis is made on them. On the basis of this data decisions can be verified and the
matters can be decided in the right prospects.
Principles of Scientific Management

Taylor’s philosophy consists of the following principles which constitute the cornerstone of scientific
management:
1. Science, not rule of thumb. According to this principle, scientific investigation should be
applied in the scientific management, which will replace the rule of thumb. Taylor had made
study of every job and fixed the method and timing for performing the job so that the worker
should know that what, when, and how is required to perform the job. This principle is the
starting point that distinguishes scientific management with the traditional management.
Further, this principle eliminates the trend of go on trying, failing, wasting the resources, and
finally perfecting the job. For this purpose Taylor had developed the various studies like;
method study, time study, motion study etc.
2. Harmony, not discord. This principle states that there should be cooperation between the
management and the workers. In order to achieve the best possible results from the business
operations, it is essential that there should be harmonious relations between the management
and the workers. According to this principle, attempts should be made to obtain the harmony
in the group action rather than discord. Workers should have sense of belongingness towards
the organisation.
3. Mental Revolution. The technique of Mental revolution involves a change in the attitude of
workers and management towards each other. Both should realize the importance of each
other and should work with full cooperation. Management as well as the workers should aim
to increase the profits of the organisation.
For this the workers should put in their best efforts so that the company makes profit and on the
other hand management should share part of profits with the workers. Thus, mental revolution
requires a complete change in the outlook of both management and workers. There should be a
spirit of togetherness between workers and management.
4. Cooperation, Not Individualism. This principle is an extension of principle of ‘Harmony, not
discord’ and lays stress on mutual cooperation between workers and the management.
Cooperation, mutual confidence, sense of goodwill should prevail among both, managers as
well as workers. The intention is to replace internal competition with cooperation.
5. Development of each and every person to his or her greatest efficiency and prosperity.
According to this principle the right men is placed on the right job. The jobs are determined first
for which the workers are required and then the qualifications required for the job are
determined. On the basis of these standards the employees are selected. So procedure for the
selection of the members is designed scientifically. Further, management is responsible for the
development and training of the workers. In scientific management, all workers should be
developed to the fullest extent possible for their own as well as for the company’s prosperity.
Techniques of Scientific Management

1. Functional Foremanship. Functional foremanship involves the supervision of the workers by
several specialist foremen. Taylor evolved the concept of functional foremanship on the basis
of specialisation and provided the importance to the supervision. He advocated the appointment
of specialist foreman for the specific jobs. In this system eight persons are involved to direct the
activities of the workers at the job. These eight persons are divided in two:
Production department : Four persons
m Speed boss. Maintaining the planned speed of production.
m Inspector. Matching that work done is according to the standards.
m Maintenance Foreman. Maintenance of machines and equipments.
m Gang Boss. Making arrangement of machines, material, and men for the job.
Planning department : Four persons
m Route Clerk. Determine the process of job.
m Instruction Card Clerk. Laying down the instructions for the workers.
m Time and Cost Clerk. Setting the time table and cost budget for the job.
m Disciplinarian. Maintaining proper discipline in the factory.
2. Motion Study. Motion study is designed to eliminate unnecessary motions and to reinforce
necessary motions. It is a close observation of analyzing the body movements of the worker
performing the job. This study helps in analyzing that if any element of the job can be eliminated
or not. This study helps in:
m Finding and eliminating the unnecessary motions of the workers on the job.
m Increasing the efficiency of the workers by reducing the fatigue and manual labour.
m Increasing the production and the productivity of the worker.
3. Time study. This study helps in determining the time required by an average skill worker to
efficiently perform a particular job. Time study helps in determining the standard time for the
job. This standard time is then fixed for the workers for performing the job. So, time study is
used to measure precisely the time required in doing every element of a job with the purpose of
deciding the fair day’s work. This study helps in:
m Determine scientifically the standard time required to perform the job.
m Creating time consciousness among the workers.
m Measuring the efficiency of the workers.
m Restricting the carelessness of the employees.
m Differentiating between efficient and inefficient workers.
4. Differential Piece Wage System. According to the Taylor, the efficient worker should be paid
more than the inefficient one. Financial incentives motivate the workers to put their maximum
efforts and according to Taylor are the provision exists in the company to earn higher wages by
putting the extra effort, worker will be motivated to work more. Based on this Taylor evolved the
Differential Piece Rate System. Under this system there are two piece rates:
m Higher piece rate for those who produce standard quantity or more.
m Lower piece rate for those who produce less than standard quantity.
5. Standardisation. Taylor emphasized that standardisation should be maintained in respect of
product, raw material, machines, equipments, methods, and working conditions. These things
should be planned in advance on the basis of job analysis and the elements of cost that involved
in the performance of the job. So according to Taylor the maximum objectives can be achieved
only when the labour, raw material, machine etc. should be standardised and not to be left on
hit and trial. Standardisation is required for:
m Standardisation of raw material. Raw material used in the production of the product should
be standardised and also predetermined.
m Standardisation of product. Product produced should also be standardised in their design,
weight, shape, and size.
m Standardisation of machines and equipments. Machines and equipments on which the job
is performed by the workers should also be standardised.
m Standardisation of methods. Method and the techniques of production should be determined
in advance after proper job analysis and the research.
m Standardisation of working conditions. Working conditions under which the worker has to
perform the job should be standardised and all the requirements for the job to be made
available to the workers.
6. Work Study. The critical examination of efficiency of the various operations in an organisation
is called work study. The overall objective of the scientific management is to achieve maximum
output at the minimum cost. For the purpose of the achievement of this objective it is required to
examine the efficiency of every factor which affects the production for the purpose of bringing
improvement in the operations. Work study is the generic term given to those techniques which
are used for analyzing the human work and systematic investigation of all factors which affect
the efficiency and effectiveness of the operations. The following studies are included in the
work study :
(a) Method Study. Method study is conducted to know the standardised method of doing the
job in the best manner. Method study helps in efficiently performing the job by:
m Simplifying the use of tools and equipments.
m Integrating similar activities.
m Eliminating unnecessary actions.
m Reducing the distance between the place of storing and consumption of raw material.
(b) Scientific Selection and Training of workers. According to Taylor, management should
design scientific method for selecting the suitable workers, and for determining the training
needs of the workers. Further, worker should be given work for which the worker is competent
and suitable. Proper emphasis should be given on the training of the workers to make them
efficient for the job, which they have to perform.
(c) Fatigue Study. When a worker works continuously his efficiency in the work goes on
diminishing and he becomes tired. So fatigue in the work is natural and obvious. Fatigue
has an adverse effect on the ability and efficiency of the worker. Scientific management
determines the standard time of the job and the time after which the worker will require the
rest. Fatigue study helps in
m Reducing the fatigue among the workers
m Increasing the efficiency of the worker.
m Maintains the operational efficiency of the worker.
(d) Mental Revolution. Taylor emphasized the mutual cooperation between the workers and
the management as the human element comprising of worker and management is essentially
a very sensitive factor of production. The basic idea behind the mental revolution is to
change the mental attitude of the workers and the management towards each other. Mental
revolution requires that there should be perfect cooperation and coordination between the
efforts of labour and the management. The basic objectives of mental revolution are:
m To encourage the workers to put maximum efforts for the increase in production.
m Creation of mutual trust and confidence.
m Making the relations between the management and workers harmonious.
m Developing the scientific attitude towards the business problems and issues.
m Relationship between Fayol’s and Taylor’s Principles of Management.
Advantages of Scientific Management

Scientific Management provide the following advantages to the management:
1. Enhanced production
2. Ability to control
3. Decreased inaccuracy
4. Decreased autocracy
5. Cost of production is reduced
6. Pay system
7. Quick decision making
8. Benefit to customers
9. Efficiency increased
10. Best use of resources and development
11. Beneficial to the nation
12. Less production time
13. Work is carried out in a systematic manner
14. A proper atmosphere for working and conditions
15. Beneficial for owners and investors
16. Avoids labour and management disputes.
Disadvantages of Scientific Management

Following are the limitations of scientific management:
1. Requires huge capital
2. Management takes control
3. Planning reduces productivity
4. Demotivating approach
5. Overly bureaucratic
6. Mechanistic
7. Not suitable for teams
8. Work division
9. Avoids bargaining
10. Loss
11. Unemployment
12. Adverse effects
13. Stress
14. Wrong assumption
15. Follows narrow application
16. Time consuming.
Classical Administrative School

Whereas scientific management focused on the productivity of individuals, the classical administrative
approach concentrates on the total organisation. The emphasis is on the development of managerial
principles rather than work methods.
Contributors to this school of thought include Max Weber, Henri Fayol, Mary Parker Follett, and
Chester I. Barnard. These theorists studied the flow of information within an organisation and
emphasized the importance of understanding how an organisation operated.
In the late 1800s, Max Weber disliked that many European organisations were managed on a
“personal” family-like basis and that employees were loyal to individual supervisors rather than to
the organisation. He believed that organisations should be managed impersonally and that a formal
organisational structure, where specific rules were followed, was important. In other words, he didn’t
think that authority should be based on a person’s personality. He thought authority should be
something that was part of a person’s job and passed from individual to individual as one person left
and another took over. This no personal, objective form of organisation was called a bureaucracy.
Elements of Bureaucracy
Weber has provided a number of features in bureaucratic organisation. These are given below :
m Hierarchy. Hierarchy is a way of ranking positions in descending order from top to bottom of
an organisation. All positions within a bureaucracy are structured in a way that permits the
higher positions to supervise and control the lower positions. This clear chain of command
facilitates control and order throughout the organisation.
m Rules, regulations and procedures. Standard operating procedures govern all organisational
activities to provide certainity and facilitate coordination.
m Division of work. All responsibilities in an organisation are specialised so that each employee
has the necessary expertise to do a particular task.
m Impersonal relationships. Managers should maintain an impersonal relationship with
employees so that favouritism and personal prejudice do not influence decisions.
m Competence. Competence, not “who you know,” should be the basis for all decisions made in
hiring, job assignments, and promotions in order to foster ability and merit as the primary
characteristics of a bureaucratic organisation.
m Records. Proper records have to be kept for everything. A bureaucracy needs to maintain
complete files regarding all its activities.
Human Relations School

Functional and Administrative Management
Henry Fayol (1841-1925) started his career as a junior engineer in a coal mine company in France and
become its general manager in 1880. He not only saved a large coal and steel company from bankruptcy,
but also led to crowning success.
His ideas on management have been summed up as the Administrative Management Theory,
which later evolved into the management process school. Fayol contribution to management can be
discussed under the following heads:
1. Division of Industrial Activities
Fayol observed the organisational functioning from manager’s point of view
He found that all activities of the industrial enterprise could be divided into six groups :
(i) Technical (relating to production)
(ii) Commercial (buying, selling and exchange)
(iii) Financial (Search for capital and its optimum use)
(iv) Security (protection of property and person)
(v) Accounting (preparation of various statements, accounts, return etc.) and
(vi) Managerial (Planning, organisation, command, coordination and control)
2. Qualities of an Effective Manager
Henry Fayol was the first person to recognise the different qualities for managers.
According to him these qualities are :
(i) Physical (health, vigour, and address)
(ii) Mental (ability to understand and learn judgement, mental vigour, and adaptability)
(iii) Moral (energy, firmness, willingness to accept responsibility)
(iv) Educational (acquaintance with matters related to general functioning)
(v) Technical (peculiar to the functions being performed)
(vi) Experience (arising out of the work)
3. Functions of Management
Fayol classified the elements of management into five and all such elements were considered by him
as the functions of management.
According to him following are the functions of management:
(i) Planning
(ii) Organising
(iii) Commanding
(iv) Co-ordinating
(v) Controlling
4. Principles of Management
HenriFayol, a French mining engineer, developed 14 principles of management based on his management
experiences. These principles provide modern-day managers with general guidelines on how a supervisor
should organise her department and manage her staff. Although later research has created controversy
over many of the following principles, they are still widely used in management theories.
m Division of Work. Division of work in the management process produces more and better work
with the same effort. Various functions of management like planning, organising, directing
and controlling cannot be performed efficiently by a single proprietor or by a group of directors.
They must be entrusted to specialists in related fields.
m Authority and Responsibility. As the management consists of getting the work done through
others, it implies that the manager should have the right to give orders and power to exact
obedience. A manager may exercise formal authority and also personal power. Formal authority
is derived from his official position, while personal power is the result of intelligence, experience,
moral worth, ability to lead, past service, etc. Responsibility is closely related to authority and
it arises wherever authority is exercised. An individual who is willing to exercise authority,
must also be prepared to bear responsibility to perform the work in the manner desired. However,
responsibility is feared as much as authority is sought after.
m Discipline. Discipline is absolutely essential for the smooth running of business. By discipline
we mean, the obedience to authority, observance of the rules of service and norms of performance,
respect for agreements, sincere efforts for completing the given job, respect for superiors, etc.
The best means of maintaining discipline are (a) good supervisors at all levels, (b) clear and fair
agreements between the employees and the employer, and (c) judicious application of penalties.
In fact, discipline is what leaders make it.
m Unity of Command. This principle requires that each employee should receive instructions
about a particular work from one superior only. Fayol believed that if an employee was to
report to more than one superior, he would be confused due to conflict in instructions and also
it would be difficult to pinpoint responsibility to him.
m Unity of Direction. It means that there should be complete identity between individual and
organisational goals on the one hand and between departmental goals inter se on the other.
They should not pull in different directions.
m Subordination of Individual Interest to General Interest. In a business concern, an individual
is always interested in maximising his own satisfaction through more money, recognition,
status, etc. This is very often against the general interest which lies in maximising production.
Hence the need to subordinate the individual interest to general interest.
m Remuneration. The remuneration paid to the personnel of the firm should be fair. It should be
based on general business conditions, cost of living, productivity of the concerned employees
and the capacity of the firm to pay. Fair remuneration increases workers” efficiency and morale
and fosters good relations between them and the management.
m Centralisation. If subordinates are given more role and importance in the management and
organisation of the firm, it is decentralisation. The management must decide the degree of
centralisation or decentralisation of authority on the basis of the nature of the circumstances,
size of the undertaking, the type of activities and the nature of organisational structure. The
objective to pursue should be the optimum utilisation of all faculties of the personnel.
m Scalar Chain. Scalar chain means the hierarchy of authority from the highest executive to the
lowest one for the purpose of communication. It states superior-subordinate relationship and
the authority of superiors in relation to subordinates at various levels. As per this principle, the
orders or communications should pass through the proper channels of authority along the
scalar chain. But in case there is need for swift action, the proper channels of authority may be
short-circuited by making direct contact (called gang plank) with the concerned authority.
m Order. To put things in an order needs effort. Disorder does not need any effort. It evolves by
itself. Management should obtain orderliness in work through suitable organisation of men
and materials. The principle of “right place for everything and for every man” should be
observed by the management. To observe this principle, there is need for scientific selection of
competent personnel, correct assignment of duties to personnel and good organisation.
m Equity. Equity means equality of fair treatment. Equity results from a combination of kindness and
justice. Employees expect management to be equally just to everybody. It requires managers to be
free from all prejudices, personal likes or dislikes. Equity ensures healthy industrial relations
between management and labour which is essential for the successful working of the enterprise.
m Stability of Tenure of Personnel. In order to motivate workers to do more and better work, it is
necessary that they should be assured security of job by the management. If they have fear of
insecurity of job, their morale will be low and they cannot give more and better work. Further,
they will not have any sense of attachment to the firm and they will always be on the lookout for
a job elsewhere.
m Initiative. Initiative means freedom to think out and execute a plan. The zeal and energy of
employees are augmented by initiative. Innovation which is the hallmark of technological
progress is possible only where the employees are encouraged to take initiative. According to
Fayol. Initiative is one of the keenest satisfactions for an intelligent man to experience, and
hence, he advises managers to give their employees sufficient scope to show their initiative.
Employees should be encouraged to make all kinds of suggestions to conceive and carry out
their plans, even when some mistakes result.
Differences between Fayol and Taylor Contribution

Both Taylor and Fayol wanted to improve the efficiency of work through the systematic approach to
management problems. At this stage, it may be worthwhile to establish the relationship between
Taylor’s and Fayol’s point of view as both of them attempted to develop the rational approach to
management. Both of them had practical experience and had systematically developed the management
principles. After analyzing deeply we find that both are complimentary to each other and there exist
lot of similarity between the both points of views. Similarities between Taylor’s and Fayol’s point of view:
Following are the points of similarities between both points of views:
m Point of views of both has systematically attempted to overcome the managerial problems.
m Principles of both can be applied in solving the managerial problems.
m Both have concluded that sound principles are required for the effective management decisions.
m Both have emphasized that training is necessary for developing the managerial qualities among
the personnel’s.
m For the achievement of organisational goals both have emphasized the cooperation and mutual
trust among the workers and the management.
Basis Henry Fayol F.W Taylor

Place France America
Period 1841-1925 1856-1915
Level Higher Management Level Shop Floor Level
Scope Wider as principles are applicable to Narrower, as is applied to factory level only.
all types of management.
Emphasizes Overall efficiency can be achieved by Efficiency through work simplification and
observing principles. standardisation.
Results Personal experiences translated into Scientific observation and measurement.
universal truths.
Concern Efficiency of managers Asks, workers, and supervisors
Achievement Administrative management Scientific management
Status Father of modern management Father of scientific management
Orientation Managerial functions Production and engineering
Mary Parker Follett stressed the importance of an organisation establishing common goals for its
employees. However, she also began to think somewhat differently than the other theorists of her day,
discarding command-style hierarchical organisations where employees were treated like robots. She
began to talk about such things as ethics, power, and leadership. She encouraged managers to allow
employees to participate in decision making. She stressed the importance of people rather than
techniques — a concept very much before her time. As a result, she was a pioneer and often not taken
seriously by management scholars of her time. But times change and innovative ideas from the past
suddenly take on new meanings. Much of what managers do today is based on the fundamentals that
Follett established more than 80 years ago.
Chester Barnard, who was president of New Jersey Bell Telephone Company, introduced the idea
of the informal organisation — cliques (exclusive groups of people) that naturally form within a
company. He felt that these informal organisations provided necessary and vital communication
functions for the overall organisation and that they could help the organisation accomplish its goals.
Barnard felt that it was particularly important for managers to develop a sense of common purpose
where a willingness to cooperate is strongly encouraged. He is credited with developing the acceptance
theory of management, which emphasizes the willingness of employees to accept that managers
have legitimate authority to act. Barnard felt that four factors affected the willingness of employees to
accept authority:
m The employees must understand the communication.
m The employees accept the communication as being consistent with the organisation’s purposes.
m The employees feel that their actions will be consistent with the needs and desires of the other
employees.
Behavioural School
Behavioural management theory was developed in response to the need to account for employee
behaviour and motivation. The shift moved management from a production orientation (classical
leadership theory) to a leadership style focussed on the workers, human need for work related
satisfaction and good working conditions.
The behavioural science approach developed as a natural evolution from the Hawthrone
experiment. The behavioural science approach applies the knowledge of the behavioural science –
psychology, sociology, and anthropology –to managing people.
The behavioural management theory is often called the human relations movement because it
addresses the human dimension of work. Behavioural theorists believed that a better understanding
of human behaviour at work, such as motivation, conflict, expectations, and group dynamics, improved
productivity. The theorists who contributed to this school viewed employees as individuals, resources,
and assets to be developed and worked with — not as machines, as in the past. Several individuals
and experiments contributed to this theory.
Elton Mayo’s contributions came as part of the Hawthorne studies, a series of experiments that
rigorously applied classical management theory only to reveal its shortcomings. The Hawthorne
experiments consisted of two studies conducted at the Hawthorne Works of the Western Electric
Company in Chicago from 1924 to 1932. The first study was conducted by a group of engineers
seeking to determine the relationship of lighting levels to worker productivity. Surprisingly enough,
they discovered that worker productivity increased as the lighting levels decreased — that is, until the
employees were unable to see what they were doing, after which performance naturally declined.
A few years later, a second group of experiments began. Harvard researchers Mayo and
F. J. Roethlisberger supervised a group of five women in a bank wiring room. They gave the women
special privileges, such as the right to leave their workstations without permission, take rest periods,
enjoy free lunches, and have variations in pay levels and workdays. This experiment also resulted in
significantly increased rates of productivity.
In this case, Mayo and Roethlisberger concluded that the increase in productivity resulted from
the supervisory arrangement rather than the changes in lighting or other associated worker benefits.
Because the experimenters became the primary supervisors of the employees, the intense interest they
displayed for the workers was the basis for the increased motivation and resulting productivity.
Essentially, the experimenters became a part of the study and influenced its outcome. This is the origin
of the term Hawthorne effect, which describes the special attention researchers give to a study’s subjects
and the impact that attention has on the study’s findings.
The general conclusion from the Hawthorne studies was that human relations and the social
needs of workers are crucial aspects of business management. This principle of human motivation
helped revolutionise theories and practices of management.
The Following are the important aspect of the behavioral science approach:
(i) Communication. Communication plays a vital role in human behavior school. A better
understanding develops between the management and workers, because of the reduced channel
of communication in an organisation.
(ii) Employee development. It is concerned with the continued upgrading of employee skill and
managerial skill.
(iii) Leadership. This school also underlines the role of the personal leadership of management.
The scope of this school includes study of human relations and how the managers can grasp
their implication, study of managers as a leaders and the way he should lead and study of
successful and unsuccessful managerial behaviour.
(iv) Employee motivation. This includes a determination of the factors that lead to high productivity
and high morale.
(v) Organisation as social system. It includes the study of role, status symbol as well as the function
of the informal organisation.
Contributions of Behavioural Scientists
Abraham Maslow, James March and Herbert Simon, Douglas McGregor, Victor Vroom, Fredrick
Herzberg, Chester Barnard, etc., made important contributions to the behavioural science approach.
Assumptions of Behavioral Science Approach
Basic assumptions and propositions of Behavioral Science Approach are :
1. In an organisation conflicts are unavoidable.
2. Different people have different perceptions, attitudes, needs and values. These differences
must be found out and recognised by management.
3. Personal goals and Organisational goals must be joined together.
4. Work and interpersonal behaviour of people in the organisation is influenced by many factors.
5. Organisations are socio-technical systems. The management must integrate both the systems.
6. Employees are motivated not only by physiological needs but also by social and psychological
needs.
Abraham Maslow’s Hierarchy of need Theory
Abraham Maslow. A practising psychologist, developed one of the most widely recognised need
theories, a theory of motivation based upon a consideration of human needs. His theory of human
needs had three assumptions:
m Human needs are never completely satisfied.
m Human behavior is purposeful and is motivated by the need for satisfaction.
m Needs can be classified according to a hierarchical structure of importance, from the lowest to
highest.
Maslow divided hierarchy of needs into five specific areas:
m Physiological needs. Maslow grouped all physical needs necessary for maintaining basic
human well-being, such as food and drink, into this category. After the need is satisfied, however,
it is no longer is a motivator.
m Safety needs. These needs include the need for basic security, stability, protection, and freedom
from fear. A normal state exists for an individual to have all these needs generally satisfied.
Otherwise, they become primary motivators.
Growth or
being
Self needs
actualization (B-needs)
Esteem
Love/belonging Deficiency
needs
Safety
(D-needs)
Physiological
(Maslow’s Motivation Model)

m Belonging and love needs. After the physical and safety needs are satisfied and are no longer
motivators, the need for belonging and love emerges as a primary motivator. The individual
strives to establish meaningful relationships with significant others.
m Esteem needs. An individual must develop self-confidence and wants to achieve status,
reputation, fame, and glory.
m Self-actualisation needs. Assuming that all the previous needs in the hierarchy are satisfied,
an individual feels a need to find himself.
Douglas McGregor’s (1906-1964) Theories X and Y
In 1960, Douglas McGregor formulated Theory X and Theory Y suggesting two aspects of human
behavior at work, or in other words, two different views of individuals (employees): one of which is
negative, called as Theory X and the other is positive, so called as Theory Y. According to McGregor,
the perception of managers on the nature of individuals is based on various assumptions.
Assumptions of Theory X
m An average employee intrinsically does not like work and tries to escape it whenever possible.
m Since the employee does not want to work, he must be persuaded, compelled, or warned with
punishment so as to achieve organisational goals. A close supervision is required on part of
managers. The managers adopt a more dictatorial style.
m Many employees rank job security on top, and they have little or no aspiration/ ambition.
m Employees generally dislike responsibilities.
m Employees resist change.
m An average employee needs formal direction.
Assumptions of Theory Y
m Employees can perceive their job as relaxing and normal. They exercise their physical and
mental efforts in an inherent manner in their jobs.
m Employees may not require only threat, external control and coercion to work, but they can use
self-direction and self-control if they are dedicated and sincere to achieve the organisational
objectives.
m If the job is rewarding and satisfying, then it will result in employees’ loyalty and commitment
to organisation.
m An average employee can learn to admit and recognise the responsibility. In fact, he can even
learn to obtain responsibility.
m The employees have skills and capabilities. Their logical capabilities should be fully utilised.
In other words, the creativity, resourcefulness and innovative potentiality of the employees can
be utilised to solve organisational problems.
The assumptions in Theory X and Theory Y are fundamentally distinct. Theory X is static, rigid,
conservative and pessimistic. Theory Y is optimistic, dynamic, flexible and progressive. It suggests
self direction and the integration of individual needs with organisational needs. On the other hand,
more importance is given to external control imposed by the superior on the subordinate in the Theory X.
Thus, we can say that Theory X presents a pessimistic view of employees’ nature and behavior at
work, while Theory Y presents an optimistic view of the employees’ nature and behavior at work. If cor-
relate it with Maslow’s theory, we can say that Theory X is based on the assumption that the employees
emphasize on the physiological needs and the safety needs; while Theory X is based on the assumption
that the social needs, esteem needs and the self-actualisation needs dominate the employees.
McGregor views Theory Y to be more valid and reasonable than Theory X. Thus, he encouraged
cordial team relations, responsible and stimulating jobs, and participation of all in decision-making
process.
Theory Y
Theory X Staff
management
Theory X : authoritarion, Theory Y : Liberating and

repressive style, Tight centre, developmental, achievement
no development, Produces of continuous improvement
limited, depressed culture. achieved by enabling
empowering and giving
responsibility.
Staff
Management
System Approach
The word System is taken from a Greek language which means to bring together or to combine.
A system is a set of inter-related parts, which work together to achieve certain goals.
Ludwig von Bertalanffy is called the Father of the Systems Approach.
Definition
According to Ludwig von Bertalanffy, “In order to understand an organised whole, we must know
both the parts as well as the relation between them.”
Concepts of System Approach to Management

A system approach has the following key concepts:
1. Open or Closed Systems. Systems may be either open or closed. An open system is one, which
depends on the outside environment for survival. A closed system does not interact with the
environment.
2. Sub-system. The full system is made up of many parts. Each part is called sub-systems. A
system may be a sub-system of a larger system. For e.g. A department is a sub-system of a plant.
A plant is a sub-system of a company.
3. Synergy. Synergy means that the whole is greater than the sum of its parts. In an organisation,
when different departments co-operate and interact, they become more productive. This is
called synergy.
4. Defined boundaries. Each system has a boundary that separates it from its environment. In
case of a closed system, the system boundary is rigid. However, in an open system, the boundary
is flexible. A business organisation has boundaries with many external systems like creditors,
suppliers, customers, government agencies, etc. The system is inside the boundary, the
environment is outside the boundary.
5. Feedback mechanism. A system can adjust itself to the changing environment through the
feedback mechanism. Feedback helps the system to find out and correct its mistakes.
6. Multi-disciplinary. Management system uses information from many fields such as psychology,
sociology, ecology, economics, mathematics, statistics, operations research, systems analysis,
etc. Therefore, it is Multi-disciplinary.
7. Consideration of whole system. No part of the system can be fully studied and understood
without understanding all its parts. So instead of dealing separately with different parts of one
organisation, the manager must study the organisation as a whole. For example, in order to
understand the working of the finance or production or marketing departments, he must
understand the company as a whole. It is because the activity of any one part of the company
affects the activity of every other part.
8. Input output system. A business organisation is an input-output system. Inputs consist of
human, physical and financial resources obtained from the environment. These resources are
converted into outputs of products and services.
Contributions of Systems Approach to Management

m Under systems approach, managers have a good view of the organisation.
m It gives importance to interdependence of the different parts of an organisation and its
environment.
m It forecasts consequences and plans actions.
m Systems’ thinking warns managers against adopting piecemeal approach to the problem-
solving.
Contingency School of Management

The contingency school of management can be summarised as an “it all depends” approach. The
appropriate management actions and approaches depend on the situation. Managers with a
contingency view use a flexible approach, draw on a variety of theories and experiences, and evaluate
many options as they solve problems.
m Contingency management recognises that there is no one best way to manage. In the contingency
perspective, managers are faced with the task of determining which managerial approach is
likely to be most effective in a given situation. For example, the approach used to manage a
group of teenagers working in a fast-food restaurant would be very different from the approach
used to manage a medical research team trying to find a cure for a disease.
m Contingency thinking avoids the classical “one best way” arguments and recognises the need
to understand situational differences and respond appropriately to them. It does not apply
certain management principles to any situation. Contingency theory is a recognition of the
extreme importance of individual manager performance in any given situation. The contingency
approach is highly dependent on the experience and judgement of the manager in a given
organisational environment.
Quantitative School of Management
During World War II, mathematicians, physicists, and other scientists joined together to solve military
problems. The quantitative school of management is a result of the research conducted during World
War II. The quantitative approach to management involves the use of quantitative techniques, such as
statistics, information models, and computer simulations, to improve decision making. This school
consists of several branches, described in the following sections.
Management Science
The management science school emerged to treat the problems associated with global warfare. Today,
this view encourages managers to use mathematics, statistics, and other quantitative techniques to
make management decisions. Managers can use computer models to figure out the best way to do
something — saving both money and time. Managers use several science applications.
m Mathematical forecasting helps to make projections that are useful in the planning process.
m Inventory modelling helps control inventories by mathematically establishing how and when
to order a product.
m Queuing theory helps allocate service personnel or workstations to minimise customer waiting
and service cost.
Operation Management
Operations management is a narrow branch of the quantitative approach to management. It focuses
on managing the process of transforming materials, labour, and capital into useful goods and/or
services. The product outputs can be either goods or services; effective operations management is a
concern for both manufacturing and service organisations. The resource inputs, or factors of production,
include the wide variety of raw materials, technologies, capital information, and people needed to
create finished products. The transformation process, in turn, is the actual set of operations or activities
through which various resources are utilised to produce finished goods or services of value to customers
or clients. Operations management today pays close attention to the demands of quality, customer
service, and competition. The process begins with attention to the needs of customers: What do they
want? Where do they want it? When do they want it? Based on the answers to these questions,
managers line up resources and take any action necessary to meet customer expectations.
Management Information System

Management information systems (MIS) is the most recent subfield of the quantitative school. A
management information system organises past, present, and projected data from both internal and
external sources and processes it into usable information, which it then makes available to managers
at all organisational levels. The information systems are also able to organise data into usable and
accessible formats. As a result, managers can identify alternatives quickly, evaluate alternatives by
using a spreadsheet program, pose a series of “what-if” questions, and finally, select the best alternatives
based on the answers to these questions.
Quality School of Management

The quality school of management is a comprehensive concept for leading and operating an
organisation, aimed at continually improving performance by focusing on customers while addressing
the needs of all stakeholders. In other words, this concept focuses on managing the total organisation
to deliver high quality to customers.
The quality school of management considers the following in its theory:
m Organisation makeup. Organisations are made up of complex systems of customers and
suppliers. Every individual, executive, manager, and worker functions as both a supplier and
a customer.
m Quality of goods and services. Meeting the customers’ requirements is a priority goal and
presumed to be a key to organisational survival and growth.
m Continuous improvement in goods and services. Recognising the need to pinpoint internal
and external requirements and continuously strive to improve. It is an idea that says, “the
company is good, but it can always become better.”
m Employees working in teams. These groups are primary vehicles for planning and problem
solving.
m Developing openness and trust. Confidence among members of the organisation at all levels is
an important condition for success.
Quality management involves employees in decision making as a way to prevent quality problems.
The Kaizen (pronounced ky-zen) approach uses incremental, continuous improvement for people,
products, and processes. The re-engineering approach focuses on sensing the need to change, seeing
change coming, and reacting effectively to it when it comes.
Roles Performed by Managers

A manager wears many hats. Not only is a manager a team leader, but he or she is also a planner,
organiser, cheerleader, coach, problem solver, and decision maker — all rolled into one. And these are
just a few of a manager’s roles.
In his classic book, The Nature of Managerial Work, Henry Mintzberg describes a set of ten roles
that a manager fills. These roles fall into three categories:
m Interpersonal. This role involves human interaction.
m Informational. This role involves the sharing and analyzing of information.
m Decisional. This role involves decision making.
Table 1 contains a more in-depth look at each category of roles that help managers carry out all five
functions described in the preceding "Functions of Managers" section.
TABLE 1 Mintzberg's Set of Ten Roles
Category Role Activity
Informational Monitor Seek and receive information; scan periodicals and
reports; maintain personal contact with stakeholders.
Disseminator Forward information to organisation members via
memos, reports, and phone calls.
Spokesperson Transmit information to outsiders via reports, memos,
and speeches.
Interpersonal Figurehead Perform ceremonial and symbolic duties, such as
greeting visitors and signing legal documents.
Leader Direct and motivate subordinates; counsel and
communicate with subordinates.
Liaison Maintain information links both inside and outside
organisation via mail, phone calls, and meetings.
Decisional Entrepreneur Initiate improvement projects; identify new ideas and
delegate idea responsibility to others.
Disturbance handler Take corrective action during disputes or crises; resolve
conflicts among subordinates; adapt to environments.
Resource allocator Decide who gets resources; prepare budgets; set
schedules and determine priorities.
Negotiator Represent department during negotiations of union
contracts, sales, purchases, and budgets.
Skills Needed by Managers
Not everyone can be a manager. Certain skills, or abilities to translate knowledge into action that
results in desired performance, are required to help other employees become more productive. These
skills fall under the following categories:
m Technical Skills. This skill requires the ability to use a special proficiency or expertise to
perform particular tasks. Accountants, engineers, market researchers, and computer scientists,
as examples, possess technical skills. Managers acquire these skills initially through formal
education and then further develop them through training and job experience. Technical skills
are most important at lower levels of management.
m Human Skills. This skill demonstrates the ability to work well in cooperation with others.
Human skills emerge in the workplace as a spirit of trust, enthusiasm, and genuine involvement
in interpersonal relationships. A manager with good human skills has a high degree of self-
awareness and a capacity to understand or empathise with the feelings of others. Some managers
are naturally born with great human skills, while others improve their skills through classes or
experience. No matter how human skills are acquired, they’re critical for all managers because
of the highly interpersonal nature of managerial work.
m Conceptual Skills. This skill calls for the ability to think analytically. Analytical skills enable
managers to break down problems into smaller parts, to see the relations among the parts, and
to recognise the implications of any one problem for others. As managers assume ever-higher
responsibilities in organisations, they must deal with more ambiguous problems that have
long-term consequences. Again, managers may acquire these skills initially through formal
education and then further develop them by training and job experience. The higher the
management level, the more important conceptual skills become. Although all three categories
contain skills essential for managers, their relative importance tends to vary by level of managerial
responsibility.
Top Management Conceptual
Middle Management Skill
Operating Management
Human
Skill
Technical
Skill
Managerial Skills at Various Levels

Business and management educators are increasingly interested in helping people acquire
technical, human, and conceptual skills, and develop specific competencies, or specialised skills that
contribute to high performance in a management job. Following are some of the skills and personal
characteristics :
m Leadership – ability to influence others to perform tasks
m Self-objectivity – ability to evaluate yourself realistically
m Analytic thinking – ability to interpret and explain patterns in information
m Behavioural flexibility – ability to modify personal behaviour to react objectively rather than
subjectively to accomplish organisational goals
m Oral communication – ability to express ideas clearly in words
m Written communication – ability to express ideas clearly in writing
m Personal impact – ability to create a good impression and instil confidence
m Resistance to stress – ability to perform under stressful conditions
m Tolerance for uncertainity – ability to perform in ambiguous situation
Planning
Meaning. A plan is a course of action to be taken in future. It is a predecided course of action. Planning
is the process of deciding in advance what is to be done, how it is to be done, where, when and by
whom. It involves determination of objectives to be achieved as well as the activities required to
achieve the objectives. For example, a trader decides to increase his sales. In order to achieve this
objective he should examine various alternatives e.g. advertising, price cut, better service to customers,
etc. and choose the most appropriate course of action.
What is to be
done
Where it is to Planning How It is to

be done be done
When it is to
be done
Meaning of Planning
Definition
m According to Koontz & O’Donnell, “Planning is deciding in advance what to do, how to do
and who is to do it. Planning bridges the gap between where we are to, where we want to go. It
makes possible things to occur which would not otherwise occur”.
m According to L.F. Urwick, “Planning is fundamentally a mental predisposition to do things in
an orderly way, to think before acting and to act in the light of the facts rather than of guesses.”
m According to Alfred and Beatty, “Planning is the thinking process, the organised foresight, the
vision based on facts and experience that is required for intellient action.”
m According to M.E. Hurley, “Planning is deciding in advance what is to be done. It involves the
selection of objectives, policies, procedures and programmes from among alternatives.”
The Five management functions are — planning, organising, staffing, leading and controlling—
planning is the most fundamental. All other functions stem from planning. However, planning doesn’t
always get the attention that it deserves; when it does, many managers discover that the planning
process isn’t as easy as they thought it would be — or that even the best-laid plans can go awry. Before
a manager can tackle any of the other functions, he or she must first devise a plan. A plan is a blueprint
for goal achievement that specifies the necessary resource allocations, schedules, tasks, and other
actions.
A goal is a desired future state that the organisation attempts to realise. Goals are important
because an organisation exists for a purpose, and goals define and state that purpose. Goals specify
future ends; plans specify today’s means.
The word planning incorporates both ideas: It means determining the organisation’s goals and
defining the means for achieving them. Planning allows managers the opportunity to adjust to the
environment instead of merely reacting to it. Planning increases the possibility of survival in business
by actively anticipating and managing the risks that may occur in the future.
In short, planning is preparing for tomorrow, today. It’s the activity that allows managers to
determine what they want and how they will achieve it.
Not only does planning provide direction and a unity of purpose for organisations, it also answers
six basic questions in regard to any activity:
m What needs to be accomplished?
m When is the deadline?
m Where will this be done?
m Who will be responsible for it?
m How will it get done?
m How much time, energy, and resources are required to accomplish this goal?
Advantages of Planning
The advantages of planning are numerous. Planning fulfils the following objectives:
m Gives an organisation a sense of direction. Without plans and goals, organisations merely
react to daily occurrences without considering what will happen in the long run. For example,
the solution that makes sense in the short term doesn’t always make sense in the long term.
Plans avoid this drift situation and ensure that short-range efforts will support and harmonise
with future goals.
m Focuses attention on objectives and results. Plans keep the people who carry them out focused
on the anticipated results. In addition, keeping sight of the goal also motivates employees.
m Establishes a basis for teamwork. Diverse groups cannot effectively cooperate in joint projects
without an integrated plan. Examples are numerous: Plumbers, carpenters, and electricians
cannot build a house without blueprints. In addition, military activities require the coordination
of Army, Navy, and Air Force units.
m Planning involved forecasting. When management plans, it can help forecast future problems
and make any necessary changes up front to avoid them. Planning for these potential problems
helps to minimise mistakes and reduce the “surprises” that inevitably occur.
m Provides guidelines for decision making. Decisions are future-oriented. If management doesn’t
have any plans for the future, they will have few guidelines for making current decisions. If a
company knows that it wants to introduce a new product three years in the future, its
management must be mindful of the decisions they make now. Plans help both managers and
employees keep their eyes on the big picture.
m Serves as a prerequisite to employing all other management functions. Planning is primary,
because without knowing what an organisation wants to accomplish, management can’t
intelligently undertake any of the other basic managerial activities: organising, staffing, leading,
and/or controlling.
Criteria for Effective Goals

To make sure that goal setting benefits the organisation, managers must adopt certain characteristics
and guidelines. The following describes these criteria:
m Goals must be specific and measurable. When possible, use quantitative terms, such as
increasing profits by two percent or decreasing student enrollment by one percent, to express
goals.
m Goals should cover key result areas. Because goals cannot be set for every aspect of employee
or organisational performance, managers should identify a few key result areas. These key
areas are those activities that contribute most to company performance — for example, customer
relations or sales.
m Goals should be challenging but not too difficult. When goals are unrealistic, they set employees
up for failure and lead to low employee morale. However, if goals are too easy, employees may
not feel motivated. Managers must be sure that goals are determined based on existing resources
and are not beyond the team’s time, equipment, and financial resources.
m Goals should specify the time period over which they will be achieved. Deadlines give team
members something to work toward and help ensure continued progress. At the same time,
managers should set short-term deadlines along the way so that their subordinates are not
overwhelmed by one big, seemingly un-accomplishable goal. It would be more appropriate to
provide a short term goal such as, “Establish a customer database by June 30.”
m Goals should be linked to rewards. People who attain goals should be rewarded with something
meaningful and related to the goal. Not only will employees feel that their efforts are valued,
but they will also have something tangible to motivate them in the future.
Coordination of Goals
All the different levels of management should have plans that work together to accomplish the
organisation’s purpose. The plans of the top, middle, and first-level managers of an organisation
should work together to achieve the main goal.
All managers plan basically the same way, but the kinds of plans they develop and the amount of
time they spend on planning vary. Here are some examples:
m Top-level managers are concerned with longer time periods and with plans for larger
organisational units. Their planning includes developing the mission for the organisational
units, the organisational objective, and major policy areas. These goals are called strategic goals
or objectives.
m Middle-level managers’ planning responsibilities centre on translating broad objectives of top-
level management into more specific goals for work units. These goals are called tactical goals
or objectives.
m First-level managers are involved in day-to-day plans, such as scheduling work hours, deciding
what work will be done and by whom, and developing structures to reach these goals. These
goals are called operational goals or objectives.
If a first-level manager develops a set of plans that contradicts that of a middle-level manager,
conflicts will result. Therefore, all managers must work together when planning their activities and
the activities of others.
Types of Planning
1. Corporate Planning. Drucker has defined corporate planning as the continuous process of
making present risk-taking decision systematically and with the greatest knowledge of their
futurity: organising systematically the efforts needed to carry out these decision, and measuring
the result of these decision against the expectations through organised and systematic feedback.
The corporate planning activities are carried out at the top level because they are vital for the
success of the whole organisation. The top management are responsible for such plan and are
prepared according to the inputs that are given to them either from the environment or the lower
level in the organisational hierarchy. The plans are long term in nature and are broad based.
2. Strategic Planning. A strategic planning is an outline of steps designed with the goals of the
entire organisation as a whole in mind, rather than with the goals of specific divisions or
departments. Strategic planning begins with an organisation’s mission.
Strategic plans look ahead over the next two, three, five, or even more years to move the
organisation from where it currently is to where it wants to be. Requiring multilevel involvement,
these plans demand harmony among all levels of management within the organisation. Top-
level management develops the directional objectives for the entire organisation, while lower
levels of management develop compatible objectives and plans to achieve them. Top
management’s strategic plan for the entire organisation becomes the framework and sets
dimensions for the lower level planning.
3. Tactical Planning Or Operational Planning. Operational planning is defined as the process of
deciding the most effective use of the resources already located and to develop a control
mechanism to assure effective implementation to the desired action.
A tactical planning is concerned with what the lower level units within each division must do,
how they must do it, and who is in charge at each level. Tactics are the means needed to activate
a strategy and make it work.
An operational plan is annual work plan. Tactical plans are concerned with shorter time
frames and narrower scopes than are strategic plans. These plans usually span one year or less
because they are considered short-term goals. Long-term goals, on the other hand, can take
several years or more to accomplish. Normally, it is the middle manager’s responsibility to take
the broad strategic plan and identify specific tactical actions.
4. Functional Planning. The planning that is carried out to ensure smooth working of the
organisation taking into consideration the requirement of each and every department. The goal
of functional planning is to promote standardised management practice for corporate function
in the department decentralised corporate management structure.
5. Proactive and Reactive Planning. Proactive planning is based on the anticipation of the future
outcomes and state of affairs that would affect the working in an organisation. Such a planning
has to be broad based, highly flexible and creative in nature.
Reactive planning as the name suggest the reactive planning is not based on the anticipation
of the future outcomes but becomes active only when the problem is confronted and occurred.
6. Formal And Informal. Formal planning exists in the formal hierarchy of the organisation and
always carried out in the step wise process. This type of planning is done at large scale and is
based on logical thinking.
On the other hand the informal planning is usually carried out in very small organisation
where the formal organisation structure may or may not exist. The planning is usually intuitive
in nature and short term.
7. Contingency Plans. Intelligent and successful management depends upon a constant pursuit
of adaptation, flexibility, and mastery of changing conditions. Strong management requires a
“keeping all options open” approach at all times — that’s where contingency planning comes
in.
Contingency planning involves identifying alternative courses of action that can be
implemented if and when the original plan proves inadequate because of changing
circumstances. Keep in mind that events beyond a manager’s control may cause even the most
carefully prepared alternative future scenarios to go awry. Unexpected problems and events
frequently occur. When they do, managers may need to change their plans. Anticipating change
during the planning process is best in case things don’t go as expected. Management can then
develop alternatives to the existing plan and ready them for use when and if circumstances
make these alternatives appropriate.
Steps in Planning Process

Planning function of management involves following steps:
1. Establishment of objectives
m Planning requires a systematic approach.
m Planning starts with the setting of goals and objectives to be achieved.
m Objectives provide a rationale for undertaking various activities as well as indicate direction
of efforts.
m Moreover objectives focus the attention of managers on the end results to be achieved.
m As a matter of fact, objectives provide nucleus to the planning process. Therefore, objectives
should be stated in a clear, precise and unambiguous language. Otherwise the activities
undertaken are bound to be ineffective.
m As far as possible, objectives should be stated in quantitative terms. For example, Number
of men working, wages given, units produced, etc. But such an objective cannot be stated in
quantitative terms like performance of quality control manager, effectiveness of personnel
manager.
m Such goals should be specified in qualitative terms.
m Hence objectives should be practical, acceptable, workable and achievable.
2. Establishment of Planning Premises
m Planning premises are the assumptions about the lively shape of events in future.
m They serve as a basis of planning.
m Establishment of planning premises is concerned with determining where one tends to
deviate from the actual plans and causes of such deviations.
m It is to find out what obstacles are there in the way of business during the course of
operations.
m Establishment of planning premises is concerned to take such steps that avoid these
obstacles to a great extent.
m Planning premises may be internal or external. Internal includes capital investment policy,
management labour relations, philosophy of management, etc. Whereas external includes
socio- economic, political and economical changes.
m Internal premises are controllable whereas external are non- controllable.
3. Choice of alternative course of action
m When forecast are available and premises are established, a number of alternative course
of actions have to be considered.
m For this purpose, each and every alternative will be evaluated by weighing its pros and
cons in the light of resources available and requirements of the organisation.
m The merits, demerits as well as the consequences of each alternative must be examined
before the choice is being made.
m After objective and scientific evaluation, the best alternative is chosen.
m The planners should take help of various quantitative techniques to judge the stability of
an alternative.
4. Formulation of derivative plans
m Derivative plans are the sub plans or secondary plans which help in the achievement of
main plan.
m Secondary plans will flow from the basic plan. These are meant to support and expedited
the achievement of basic plans.
m These detail plans include policies, procedures, rules, programmes, budgets, schedules,
etc. For example, if profit maximisation is the main aim of the enterprise, derivative plans
will include sales maximisation, production maximisation, and cost minimisation.
m Derivative plans indicate time schedule and sequence of accomplishing various tasks.
5. Securing Co-operation
m After the plans have been determined, it is necessary rather advisable to take subordinates
or those who have to implement these plans into confidence.
m The purposes behind taking them into confidence are :
i. Subordinates may feel motivated since they are involved in decision making process.
ii. The organisation may be able to get valuable suggestions and improvement in
formulation as well as implementation of plans.
iii. Also the employees will be more interested in the execution of these plans.
6. Follow up/Appraisal of plans
m After choosing a particular course of action, it is put into action.
m After the selected plan is implemented, it is important to appraise its effectiveness.
m This is done on the basis of feedback or information received from departments or persons
concerned.
m This enables the management to correct deviations or modify the plan.
m This step establishes a link between planning and controlling function.
m The follow up must go side by side the implementation of plans so that in the light of
observations made, future plans can be made more realistic.
Characteristics of Planning
1. Planning is goal-oriented.
m Planning is made to achieve desired objective of business.
m The goals established should general acceptance otherwise individual efforts & energies
will go misguided and misdirected.
m Planning identifies the action that would lead to desired goals quickly & economically.
m It provides sense of direction to various activities. E.g. Maruti Udhyog is trying to capture
once again Indian Car Market by launching diesel models.
2. Planning is looking ahead.
m Planning is done for future.
m It requires peeping in future, analyzing it and predicting it.
m Thus planning is based on forecasting.
m A plan is a synthesis of forecast.
m It is a mental predisposition for things to happen in future.
3. Planning is an intellectual process.
m Planning is a mental exercise involving creative thinking, sound judgement and
imagination.
m It is not a mere guesswork but a rotational thinking.
m A manager can prepare sound plans only if he has sound judgement, foresight and
imagination.
m Planning is always based on goals, facts and considered estimates.
4. Planning involves choice & decision making.

m Planning essentially involves choice among various alternatives.
m Therefore, if there is only one possible course of action, there is no need planning because
there is no choice.
m Thus, decision making is an integral part of planning.
m A manager is surrounded by no. of alternatives. He has to pick the best depending upon
requirements & resources of the enterprises.
5. Planning is the primary function of management / Primacy of Planning.
m Planning lays foundation for other functions of management.
m It serves as a guide for organising, staffing, directing and controlling.
m All the functions of management are performed within the framework of plans laid out.
m Therefore planning is the basic or fundamental function of management.
6. Planning is a Continuous Process.
m Planning is a never ending function due to the dynamic business environment.
m Plans are also prepared for specific period of time and at the end of that period, plans are
subjected to revaluation and review in the light of new requirements and changing
conditions.
m Planning never comes into end till the enterprise exists issues, problems may keep cropping
up and they have to be tackled by planning effectively.
7. Planning is all Pervasive.
m It is required at all levels of management and in all departments of enterprise.
m Of course, the scope of planning may differ from one level to another.
m The top level may be more concerned about planning the organisation as a whole whereas
the middle level may be more specific in departmental plans and the lower level plans
implementation of the same.
8. Planning is designed for efficiency.
m Planning leads to accomplishment of objectives at the minimum possible cost.
m It avoids wastage of resources and ensures adequate and optimum utilisation of resources.
m A plan is worthless or useless if it does not value the cost incurred on it.
m Therefore planning must lead to saving of time, effort and money.
m Planning leads to proper utilisation of men, money, materials, methods and machines.
9. Planning is Flexible.
m Planning is done for the future.
m Since future is unpredictable, planning must provide enough room to cope with the changes
in customer’s demand, competition, govt. policies etc.
m Under changed circumstances, the original plan of action must be revised and updated to
make it more practical.
Types of Plans
1. Standing Plan or Strategic Plan are put to use again and again over long periods of time. Once
established, they continue to apply until they are modified or abandoned. Standing plan
developed for activities that recur regularly over a period of time.
m Objective. The first and primary step in planning is to set objectives (goal, target) of an
enterprise. Objectives decide the end points to which an individual or organisation wants
to move. All activities of the undertaking are aimed at these goals. They specify the
destination where we want to go. Objectives are the open ended result that needs to be
achieved in the definite time period.
According to Allen, “objectives are goals established to guide the efforts of the company
and each of its components.
m Policies. A policy is a basic statement that guides decision making. Its tell people what they
may or may not do. It directs the way in which activities are to be achieved. It is concerned
with “how” of administrative action. Policies decide the limits within which management
can take decisions.
According to Koontz and O’Donnell, “a policy is a guide to thinking and action of those
who take decision”
m Procedure. A procedure is a well thought out course of action. It describes the specific
ways in which a piece of work is to be done. Procedure is called action guidelines. Where
policy define a broad field, procedure shows the sequences of activities within that area.
The emphasis is an chronological, step by step sequences of required actions.
Koontz and O’Donnell, “procedures are plans that establish required methods of handling”
m Methods. Methods is a subunits of procedure. They show clearly as to how a step of
procedure should be performed. They indicated the techniques to be employed to make a
procedure effective. Methods indicate the simplified and standardised techniques to be
employed (to find the best way doing a piece of work) to carry out (one step of a procedure)
a task.
m Rules. A rule is very specific and detailed guide to action. It is established to direct and
restrict action in a fairly narrow manner. “Rules spell out either specific required action or
no action, allowing no discretion. For example “No Smoking” is a rule which allow no
discretion or deviation on the part of anybody in the organisation.
2. Single use or Operational Plan are non recurring in nature and deal with problems that
probably will not be repeated in the same form in future.
m Projects. A project is temporary endeavour undertaken to create a unique product or service.
Temporary means that the projects has an end date. Unique means that the projects end
result is different then the result of the other function of the organisation. Every objective
have specific objectives that need to be achieved in a definite time periods
m Budgets. Budget is financial statement of estimated revenues or income and expenses for a
given period of time, usually a year. Budget may be different types depending on their
usage rate and the end result that are required for them.
m Targets. These are the end result formulated for each facility department and operation of
the organisation to track progress towards achieving goal. Targets are quantifiable in
nature so that the measurement and the comparison become easier.
m Programmes. Programme is a sequence of activities undertaken for the implementation of
the policies and achieving the objectivities of the business enterprise.
Advantages of Planning
1. Planning facilitates management by objectives.
m Planning begins with determination of objectives.
m It highlights the purposes for which various activities are to be undertaken.
m In fact, it makes objectives more clear and specific.
m Planning helps in focusing the attention of employees on the objectives or goals of enterprise.
m Without planning an organisation has no guide.
m Planning compels manager to prepare a Blue-print of the courses of action to be followed
for accomplishment of objectives.
m Therefore, planning brings order and rationality into the organisation.
2. Planning minimise uncertainties.
m Business is full of uncertainties.
m There are risks of various types due to uncertainties.
m Planning helps in reducing uncertainties of future as it involves anticipation of future events.
m Although future cannot be predicted with cent percent accuracy but planning helps
management to anticipate future and prepare for risks by necessary provisions to meet
unexpected turn of events.
m Therefore with the help of planning, uncertainties can be forecasted which helps in
preparing standbys as a result, uncertainties are minimised to a great extent.
3. Planning facilitate co-ordination.
m Planning revolves around organisational goals.
m All activities are directed towards common goals.
m There is an integrated effort throughout the enterprise in various departments and groups.
m It avoids duplication of efforts. In other words, it leads to better co-ordination.
m It helps in finding out problems of work performance and aims at rectifying the same.
4. Planning improves employee’s moral.
m Planning creates an atmosphere of order and discipline in organisation.
m Employees know in advance what is expected of them and therefore conformity can be
achieved easily.
m This encourages employees to show their best and also earn reward for the same.
m Planning creates a healthy attitude towards work environment which helps in boosting
employees moral and efficiency.
5. Planning helps in achieving economies.
m Effective planning secures economy since it leads to orderly allocation of resources to
various operations.
m It also facilitates optimum utilisation of resources which brings economy in operations.
m It also avoids wastage of resources by selecting most appropriate use that will contribute to
the objective of enterprise. For example, raw materials can be purchased in bulk and
transportation cost can be minimised. At the same time it ensures regular supply for the
production department, that is, overall efficiency.
6. Planning facilitate controlling.
m Planning facilitates existence of certain planned goals and standard of performance.
m It provides basis of controlling.
m We cannot think of an effective system of controlling without existence of well thought out
plans.
m Planning provides pre-determined goals against which actual performance is compared.
m In fact, planning and controlling are the two sides of a same coin. If planning is root,
controlling is the fruit.
7. Planning provide competitive edge.
m Planning provides competitive edge to the enterprise over the others which do not have
effective planning. This is because of the fact that planning may involve changing in work
methods, quality, quantity designs, extension of work, redefining of goals, etc.
m With the help of forecasting not only the enterprise secures its future but at the same time
it is able to estimate the future motives of its competitor which helps in facing future
challenges.
m Therefore, planning leads to best utilisation of possible resources, improves quality of
production and thus the competitive strength of the enterprise is improved.
8. Planning encourage innovations.
m In the process of planning, managers have the opportunities of suggesting ways and means
of improving performance.
m Planning is basically a decision making function which involves creative thinking and
imagination that ultimately leads to innovation of methods and operations for growth and
prosperity of the enterprise.
Disadvantages of Planning
Internal Limitations. There are several limitations of planning. Some of them are inherit in the process
of planning like rigidity and other arise due to shortcoming of the techniques of planning and in the
planners themselves.
1. Rigidity
m Planning has tendency to make administration inflexible.
m Planning implies prior determination of policies, procedures and programmes and a strict
adherence to them in all circumstances.
m There is no scope for individual freedom.
m The development of employees is highly doubted because of which management might
have faced lot of difficulties in future.
m Planning therefore introduces inelasticity and discourages individual initiative and
experimentation.
2. Misdirected Planning
m Planning may be used to serve individual interests rather than the interest of the enterprise.
m Attempts can be made to influence setting of objectives, formulation of plans and
programmes to suit ones own requirement rather than that of whole organisation.
m Machinery of planning can never be freed of bias. Every planner has his own likes, dislikes,
preferences, attitudes and interests which is reflected in planning.
3. Time consuming
m Planning is a time consuming process because it involves collection of information, its
analysis and interpretation thereof. This entire process takes a lot of time specially where
there are a number of alternatives available.
m Therefore planning is not suitable during emergency or crisis when quick decisions are
required.
4. Probability in planning
m Planning is based on forecasts which are mere estimates about future.
m These estimates may prove to be inexact due to the uncertainty of future.
m Any change in the anticipated situation may render plans ineffective.
m Plans do not always reflect real situations in spite of the sophisticated techniques of
forecasting because future is unpredictable.
m Thus, excessive reliance on plans may prove to be fatal.
5. False sense of security

m Elaborate planning may create a false sense of security to the effect that everything is taken
for granted.
m Managers assume that as long as they work as per plans, it is satisfactory.
m Therefore they fail to take up timely actions and an opportunity is lost.
m Employees are more concerned about fulfillment of plan performance rather than any kind
of change.
6. Expensive
m Collection, analysis and evaluation of different information, facts and alternatives involves
a lot of expense in terms of time, effort and money
m According to Koontz and O’Donell, ’Expenses on planning should never exceed the
estimated benefits from planning. ’
External Limitations of Planning

1. Policies of competitors. e.g., Policies of Coca Cola and Pepsi.
2. Changes in demand and prices. Change in fashion, change in tastes, change in income level,
demand falls, price falls, etc.
3. Natural Calamities. Earthquakes and floods.
4. Political Climate. Change of government from Congress to BJP, etc.
5. Technological changes. Modern techniques and equipments, computerisation.
6. Labour Union. Strikes, lockouts, agitations.
Organising
Organising, the second of the universal management functions, is the process of establishing the
orderly use of resources by assigning and coordinating tasks. The organising process transforms
plans into reality through the purposeful deployment of people and resources within a decision-
making framework known as the organisational structure. The organisational structure is defined as
m The set of formal tasks assigned to individuals and departments
m The formal reporting relationships, including lines of authority, decision responsibility, number
of hierarchical levels, and span of managerial control
m The design of systems to ensure effective coordination of employees across departments
The organisational structure provides a framework for the hierarchy, or vertical structure, of the
organisation. An organisational chart is the visual representation of this vertical structure.
Definition of Organising
m According to Henri Fayal, “To organise a business means to provide it everything useful to its
functioning–raw materials, tools, capital & personnel.”
m According to George R. Terry, “Organising is the process of establishing effective authority
relationship among selected works, persons and work places in order for the group to work
together efficiently.”
m According to Haney, “Organisation is harmonious adjustment of the specialised parts for the
accomplishment of some common purpose or purposes.”
m According to Mc Farland, “An identifiable group of people contributing their efforts for the
attainment of the common goals is called organisation.”
m According to Urwick, “To determine the activities necessary to complete any work and
distribution of those activities among persons is called organisation.”
The Organisation Process
Organising, like planning, must be a carefully worked out and applied process. This process involves
determining what work is needed to accomplish the goal, assigning those tasks to individuals, and
arranging those individuals in a decision-making framework (organisational structure). The end
result of the organising process is an organisation — a whole consisting of unified parts acting in
harmony to execute tasks to achieve goals, both effectively and efficiently.
A properly implemented organising process should result in a work environment where all team
members are aware of their responsibilities. If the organising process is not conducted well, the results
may yield confusion, frustration, loss of efficiency, and limited effectiveness.
In general, the organisational process consists of six steps (a flowchart of these steps shown in
Figure 1):
Step #1 Step #2 Step #3 Step #4 Step #5
Job Design Departmentalisation Delegation Span of Management Chain of Command
Formal Organisation Structure Depicted by Organisational Chart
FIGURE 1 The organisational process.

m Clearly defined objectives. Objectives are the specific activities that must be completed to
achieve goals. Plans shape the activities needed to reach those goals. Managers must examine
plans initially and continue to do so as plans change and new goals are developed.
m Determine the work activities. Although this task may seem overwhelming to some managers,
it doesn’t need to be. Managers simply list and analyze all the tasks that need to be accomplished
in order to reach organisational goals.
m Assigning duties. A manager can group activities based on four models of departmentalisation:
functional, geographical, product, and customer.
m Delegate authority. Managers assign the defined work activities to specific individuals. Also,
they give each individual the authority (right) to carry out the assigned tasks.
m Providing physical facilities and right environment. The success of an organisation depends
upon the providing physical facilities and right environment. Whereas its important right
person in the right job. It is equally important to have right working environment.
m Design a hierarchy of relationships. A manager should determine the vertical (decision-making)
and horizontal (coordinating) relationships of the organisation as a whole. Next, using the
organisational chart, a manager should diagram the relationships.
Features of Organising
Organisation has the following features:
1. Group of Persons. Organisation is concerned with the group of persons working together for
the achievement of the common objectives. This group can be large or small. Further, cooperative
relationship between two or more persons is known as organisation.
2. Division of Work. Organisation follows the Fayol’s principle of division of work. An organisation
comes into existence when the total work is divided among the different employees. This is not
because that one person cannot perform the whole task but due to the reason it’s the only way
of ensuring specialisation in business.
3. Common Objectives. Every organisation has common objectives separated from the personal
objectives of the individuals in the organisation. Organisation is directed towards the
achievement of the common goals which is the basis of cooperation among the members.
4. Cooperative Effort. For the achievement of the common goals cooperative relationships are
established both vertically and horizontally among different departments of the organisation.
The members of the organisation help each other for the achievement of the common goals.
5. Central and Top Authority. There is a central and top authority in every organisation and this
authority controls and directs the efforts of the groups or departments for the achievement of
the organisational objectives. Further the chain of command is also established, which defines
the authority and responsibility of every individual in the organisation.
6. Purposive Creation. The organisation is a purposive creation that is all the organisations have
some objectives or set of objectives. The success and failure of the organisation depends upon
the accomplishment or non-accomplishment of these objectives.
7. Rationality. Every organisation has some specified norms and standards of behaviour, such
norms of behaviour are set up collectively by the individuals, and every member of the
organisation is expected to behave according to these norms and standards.
8. Communication. Proper communication is established for integrating and coordinating the
efforts of the personnel’s. The structure can be such that personnel can perform their work
effectively.
Formal and Informal Organisation

Organisation integrates the individual efforts and leads to the achievement of the common goals.
Relationship between individuals working in the organisation can be classified into formal and
informal organisation.
Formal Organisation
Formal organisations are created deliberately by assigning duties and responsibilities and delegating
authority. A formal organisation is the structure of consciously coordinated relationships between
two or more persons working for the common objectives.
According to Barnard, “Any organisation shall be considered formal at the stage when the activities
of two or more persons are coordinated consciously to achieve the definite objective.”
Features of Formal Organisation
1. It is absolutely non-individual.
2. It is predetermined and deliberately created.
3. It is created on the basis of delegation of authority.
4. Rights, authorities, and responsibilities of the employees are clearly defined.
5. The jobs are not performed according to the individuals to whom they are entrusted.
6. It does not consider the emotional aspect.
7. Division of labour and specialisation becomes possible.
8. Organisation charts are followed.
Advantages of the Formal Organisation
1. Reduces Confusion. The work is allocated efficiently by clearly defining the rights, duties, and
accountability. So formal organisation reduces confusions, and brings clarity in the working.
2. Ensures Specialisation. Formal organisations allow the employees to perform the tasks in
which they have specialisation so that they can properly concentrate on their work.
3. Fixing of Responsibility. Formalised activities and detailed specifications of duties help in
finding employee performance and fixing his responsibility for the tasks performed by him.
4. Help in Achievement of Objectives. Systematic allocation of duties and responsibilities is the
only means for the achievement of the objectives of the organisation.
5. Provide Stability to the Firm. With the help of formal organisation, the firm can keep operating
inspite of changes in the work force.
6. Increases Organisational Efficiency. Formal organisation help in optimum utilisation of the
resources and reducing the wastage to the minimum. This increases the efficiency of the
enterprise.
Disadvantages of the Formal Organisation
1. Reduced Initiatives. Mechanical functions being involved in formal organisations lead to the
reduction in initiatives of the person working in the enterprise.
2. Lack of Match between Objectives. Generally, congruence is not found in the individual and
organisational objectives. This means the personal objectives of the employees and organisational
objectives did not match with each other.
3. Problem due to Informal Relations. On account of formal organisation, hurdles arise in the
development of informal relations and communication system. Sometimes due to the informal
relations, working of the formal organisations is interrupted.
4. Disturbance in Relations. This organisation gives both the vices like jealousy and hopelessness
among the persons engaged with the enterprise.
5. Delay in Work. Every activity is performed according to the rules and regulations prescribed
for it, this leads to the delay in working of the organisation
Informal Organisation
Informal organisations are formed on the basis of individual relations, communication, general
knowledge, etc. Informal organisation is all pervasive as it is found at all levels of management.
According to J.L. Massie, “Informal organisation is any human group interactions that occur
spontaneously and naturally over long period of time.”
Features of Informal Organisation
1. It is supplement to the formal organisation.
2. The informal relationships are established spontaneously.
3. These organisations are found at each level of management.
4. The informal relationships are based on the personal preferences and understanding.
5. It reflects human relationships.
6. Such organisations have no place in the charts of organisation.
Advantages of Informal Organisation
1. Cooperation. Spirit of cooperation is found more in informal organisations. An informal
organisation has strong group attitudes and a manager can increase his effectiveness by winning
the cooperation of informal groups.
2. Sense of Belongingness. Informal organisations fill the sense of belonging by stressing each
member’s individual personality. Each member feels that he is somebody.
3. Communication. Informal organisations develop their own communication system to keep its
members informed of what is going on in the organisation. This informal communication is
very fast as compared to the formal communication.
4. Aid on the Job. Members of the informal organisation usually help one another in case of
accidents, illness, etc. They protect each other from the arbitrary actions.
Disadvantages of Informal Organisation

1. Resistance to Change. Informal organisation has its own culture and traditions. Sometimes
the demands made by the management are not accepted by the informal groups and they resist
the changes demanded by the management.
2. Clash in Interest. The interests of formal and informal groups may clash leading to a confrontation
making the job of the managers difficult.
3. Rumour. Informal communication is very much affected by the rumours. The original story is
filtered and becomes distorted when people add the details of their own interest to the message
Differences Between Formal and Informal Organisation
Basis Formal Organisation Informal Organisation
Origination It is originated with delegation of authority. It originates automatically due to social
relations.
Objectives These are formed for organisational objectives. These are formed for social satisfaction.
Relations Members of these organisations have formal Members of these organisations have
relations. personal relations.
Structure It has a well-defined structure. It does not have a well-defined and clear
cut structure.
Authority Authority flows from top to bottom. Authority flows from down to top or
horizontally.
Period These are long-term and enduring These are short-term and instable
organisations. organisations.
Dynamism More rigid More flexible
Leadership Managers are leaders Leaders are voluntarily chosen.
Nature It is official organisation It is sentimental organisation.
Communication Communication is slow due to the following Communication is quick and fast.
the chain of command.
Examples Committees, Project teams Players, Travellers
Concepts of Organising. The working relationships — vertical and horizontal associations between
individuals and groups — that exist within an organisation affect how its activities are accomplished
and coordinated. Effective organising depends on the mastery of several important concepts: work
specialisation, chain of command, authority, delegation, span of control, and centralisation versus
decentralisation. Many of these concepts are based on the principles developed by Henri Fayol.
Work specialisation. One popular organisational concept is based on the fundamental principle that
employees can work more efficiently if they’re allowed to specialise. Work specialisation, sometimes
called division of labour, is the degree to which organisational tasks are divided into separate jobs.
Employees within each department perform only the tasks related to their specialised function.
When specialisation is extensive, employees specialise in a single task, such as running a particular
machine in a factory assembly line. Jobs tend to be small, but workers can perform them efficiently. By
contrast, if a single factory employee built an entire automobile or performed a large number of unrelated
jobs in a bottling plant, the results would be inefficient.
Despite the apparent advantages of specialisation, many organisations are moving away from
this principle. With too much specialisation, employees are isolated and perform only small, narrow,
boring tasks. In addition, if that person leaves the company, his specialised knowledge may disappear
as well. Many companies are enlarging jobs to provide greater challenges and creating teams so that
employees can rotate among several jobs.
Chain of Command
The chain of command is an unbroken line of authority that links all persons in an organisation and
defines who reports to whom. This chain has two underlying principles: unity of command and
scalar principle.
m Unity of command. This principle states that an employee should have one and only one
supervisor to whom he or she is directly responsible. No employee should report to two or more
people. Otherwise, the employee may receive conflicting demands or priorities from several
supervisors at once, placing this employee in a no-win situation.
m Sometimes, however, an organisation deliberately breaks the chain of command, such as when
a project team is created to work on a special project. In such cases, team members report to their
immediate supervisor and also to a team project leader. Another example is when a sales
representative reports to both an immediate district supervisor and a marketing specialist, who
is coordinating the introduction of a new product, in the home office.
m Scalar principle. The scalar principle refers to a clearly defined line of authority that includes
all employees in the organisation. The classical school of management suggests that there
should be a clear and unbroken chain of command linking every person in the organisation
with successively higher levels of authority up to and including the top manager. When
organisations grow in size, they tend to get taller, as more and more levels of management are
added. This increases overhead costs, adds more communication layers, and impacts
understanding and access between top and bottom levels. It can greatly slow decision making
and can lead to a loss of contact with the client or customer.
Authority
Authority is the formal and legitimate right of a manager to make decisions, issue orders, and allocate
resources to achieve organisationally desired outcomes. A manager’s authority is defined in his or her
job description.
Organisational authority has three important underlying principles:
m Authority is based on the organisational position, and anyone in the same position has the
same authority.
m Authority is accepted by subordinates. Subordinates comply because they believe that managers
have a legitimate right to issue orders.
m Authority flows down the vertical hierarchy. Positions at the top of the hierarchy are vested
with more formal authority than are positions at the bottom.
Authority Comes in Three Types
m Line authority gives a manager the right to direct the work of his or her employees and make
many decisions without consulting others. Line managers are always in charge of essential
activities such as sales, and they are authorised to issue orders to subordinates down the chain
of command.
m Staff authority supports line authority by advising, servicing, and assisting, but this type of
authority is typically limited. For example, the assistant to the department head has staff
authority because he or she acts as an extension of that authority. These assistants can give
advice and suggestions, but they don’t have to be obeyed. The department head may also give
the assistant the authority to act, such as the right to sign off on expense reports or memos. In
such cases, the directives are given under the line authority of the boss.
m Functional authority is authority delegated to an individual or department over specific

activities undertaken by personnel in other departments. Staff managers may have functional
authority, meaning that they can issue orders down the chain of command within the very
narrow limits of their authority. For example, supervisors in a manufacturing plant may find
that their immediate bosses have line authority over them, but that someone in corporate
headquarters may also have line authority over some of their activities or decisions.
Delegation
Delegation of Authority. To delegate is to give, offer, confer, and allot a part of authority to subordinates.
Large scale and complex nature are the important features of the modern organisations. Due to this
management cannot perform all its tasks and thus they share their work with their subordinates. So
this shared task along with the corresponding authority is called delegation of authority. Delegation
of authority is the essence of management. It is one of the important factors in the process of organising
and facilitates the existence of the formal organisation. With the help of the delegation manager calls
his subordinates to render their help in accomplishing the organisational objectives. So, the practice of
granting authority to a subordinate for getting things done from him is known as delegation of authority.
Elements of Delegation of Authority
Following are the elements of delegation of authority:
1. Responsibility. The basic essence of the responsibility is obligation. Responsibility is the
obligation of the subordinate to complete the work which is assigned to him. The responsibility
is always in relation to a person and in relation to a thing and the basis of responsibility is the
superior-subordinate relationship that exists in the organisation. So the duty to perform the
assigned organisational tasks, functions, and assignments is called responsibility.
According to Haimann, “Responsibility is the obligation of a subordinate to perform the duty as
required by his superior.”
According to Koontz, “Responsibility may be defined as the obligation of a subordinate to
whom the duty has been assigned to perform.”
2. Authority. Authority is the term packed with variety of meanings by theorists and management
practitioners. In everyday life authority is commonly understood as rightful power or right to
command. Authority is the attribute of the job and not of man. Thus, Mr. A, as office
superintendent derives authority over his subordinates not because he is Mr. A but because he
is office superintendent. Authority gives the legitimate right to the superior to command over
his subordinates and get the work done from them.
According to Henry Fayol, “Authority is the right to give orders to and the power to extract
obedience from the subordinates.”
According to Allen, “Authority is the sum of powers and rights entrusted to make possible the
performance of the work delegated.”
3. Accountability. Accountability denotes answerability for the accomplishment of the task
assigned by the superior to his subordinates. It is to be noted that the process of delegation is
not at all complete with just assigning the duty and delegating appropriate authority for the
accomplishment of the task. The process of delegation becomes complete only by making the
delegate answerable to the superior for his functioning. For example if the publicity manager of
a company is assigned with the task of formulating and implementing a mass publicity plan
for a new product, he is answerable for its effectiveness. So accountability is the obligation of an
individual to keep his superior informed of his use of authority and accomplishment of the
assigned tables
Basis Authority Responsibility
Meaning It is the right of the manager to command It is the obligation of the subordinate
his subordinates. to complete the assigned work.
Origin It arises due to the position of superior. It arises due to superior-subordinate
relationship.
Flow It flows from top to bottom. It flows from bottom to top.
Period It has longer period as compared to responsibility. It gets completed with the completion
of the task so has the shorter period.
Nature Authority is power. Responsibility is the duty.
Delegation Authority can be delegated to others. Responsibility cannot be delegated.
According to Peterson, “To be accountable is to be answerable for one’s conduct in respect to obligation
fulfilled or unfulfilled.”
Process of Delegation
Irrespective of the level at which authority is passed on to subordinates; delegation can be conceived
as a four-step process as follows:
m Allocation of Duties. Duties are the tasks and activities that a superior desires to have someone
else to do. Before the authority can be delegated, therefore, the duties over which the authority
relates must be allocated to subordinates. So the top officer assigns certain definite work to his
subordinate. This work should be assigned after thorough examination of the ability, efficiency,
and the self confidence of subordinates.
m Granting of Authority. The essence of granting the authority is to empower another person to
act for the manager. It is passing of formal rights to act on behalf of another. So the adequate
authority is hence delegated to the subordinates to make them able to perform the assigned the
task but these rights should be according to the allocated duty.
m Assignment of Responsibility. When authority is delegated one must assign responsibility.
That is when one is given rights then one must be assigned corresponding obligation to perform.
Here the parity between authority and responsibility should be considered.
m Creation of Accountability. To complete the delegation process, the manager must create
accountability; so the subordinates should be made answerable for the discharge of the duties
assigned and for the proper use of delegated authority. Accountability originates because the
manager has the right to require an accounting for the authority delegated and task assigned to
subordinates.
Thus, duties, authority, and obligation constitute three important ingredients of delegation of
authority.
Span of Control
Span of control (sometimes called span of management) refers to the number of workers who report to
one manager. For hundreds of years, theorists have searched for an ideal span of control. When no
perfect number of subordinates for a manager to supervise became apparent, they turned their attention
to the more general issue of whether the span should be wide or narrow.
A wide span of management exists when a manager has a large number of subordinates. Generally,
the span of control may be wide when
m The manager and the subordinates are very competent.
m The organisation has a well-established set of standard operating procedures.
m Few new problems are anticipated.
A narrow span of management exists when the manager has only a few subordinates. The span
should be narrow when
m Workers are located far from one another physically.
m The manager has a lot of work to do in addition to supervising workers.
m A great deal of interaction is required between supervisor and workers.
m New problems arise frequently.
Centralisation & Decentralisation

A centralised organisation systematically works to concentrate authority at the upper levels. In a
decentralised organisation, management consciously attempts to spread authority to the lower
organisation levels.
Decentralisation. Decentralisation is basically concerned with attitude and philosophy of the
organisation and management. It is not merely a process of handing over the part of the authority to
the subordinates. Decentralisation of authority means dispersal of decision-making power to the
lower level of the organisation. It is the wider form of delegation of authority. So, when the rights
permanently and relatively in more quantum are delegated by any superior to his subordinates, this
process of delegation of rights is called decentralisation. For example, if the superior of any department,
delegates authority to recruit personnel of his department to any head of that department, it is called
delegation of authority. On the other hand, if the authority to recruit personnel is delegated to the
heads of all the departments it is called decentralisation.
The general pattern of authority throughout an organisation determines the extent to which that
organisation is centralised or decentralised.
According to Henry Fayol, “Everything that goes to increase the importance of the subordinates is
decentralisation, anything that gives to reduce it, is called centralisation.”
Direction
Directing is said to be a process in which the managers instruct, guide and oversee the performance of
the workers to achieve predetermined goals. Directing is said to be the heart of management process.
Planning, organising, staffing have got no importance if direction function does not take place.
Directing initiates action and it is from here actual work starts. Direction is said to be consisting of
human factors. In simple words, it can be described as providing guidance to workers is doing work.
In field of management, direction is said to be all those activities which are designed to encourage the
subordinates to work effectively and efficiently. According to Human, “Directing consists of process
or technique by which instruction can be issued and operations can be carried out as originally
planned” Therefore, Directing is the function of guiding, inspiring, overseeing and instructing people
towards accomplishment of organisational goals.
Importance of Directing Function

Directing or Direction function is said to be the heart of management of process and therefore, is the
central point around which accomplishment of goals take place. A few philosophers call Direction as
“Life spark of an enterprise”. It is also called as on actuating function of management because it is
through direction that the operation of an enterprise actually starts. Being the central character of
enterprise, it provides many benefits to a concern which are as follows:-
m It Initiates Actions. Directions is the function which is the starting point of the work performance
of subordinates. It is from this function the action takes place, subordinates understand their
jobs and do according to the instructions laid. Whatever are plans laid, can be implemented
only once the actual work starts. It is there that direction becomes beneficial.
m It Integrates Efforts. Through direction, the superiors are able to guide, inspire and instruct the
subordinates to work. For this, efforts of every individual towards accomplishment of goals are
required. It is through direction the efforts of every department can be related and integrated
with others. This can be done through persuasive leadership and effective communication.
Integration of efforts bring effectiveness and stability in a concern.
m Means of Motivation. Direction function helps in achievement of goals. A manager makes use
of the element of motivation here to improve the performances of subordinates. This can be
done by providing incentives or compensation, whether monetary or non - monetary, which
serves as a “Morale booster” to the subordinates Motivation is also helpful for the subordinates
to give the best of their abilities which ultimately helps in growth.
m It Provides Stability. Stability and balance in concern becomes very important for long term
sun survival in the market. This can be brought upon by the managers with the help of four
tools or elements of direction function – judicious blend of persuasive leadership, effective
communication, strict supervision and efficient motivation. Stability is very important since
that is an index of growth of an enterprise. Therefore a manager can use of all the four traits in
him so that performance standards can be maintained.
m Coping up with the changes. It is a human behavior that human beings show resistance to
change. Adaptability with changing environment helps in sustaining planned growth and
becoming a market leader. It is directing function which is of use to meet with changes in
environment, both internal as external. Effective communication helps in coping up with the
changes. It is the role of manager here to communicate the nature and contents of changes very
clearly to the subordinates. This helps in clarifications, easy adoptions and smooth running of
an enterprise. For example, if a concern shifts from handlooms to power looms, an important
change in technique of production takes place. The resulting factors are less of manpower and
more of machinery. This can be resisted by the subordinates. The manager here can explain
that the change was in the benefit of the subordinates. Through more mechanisation, production
increases and thereby the profits. Indirectly, the subordinates are benefited out of that in form
of higher remuneration.
m Efficient Utilisation of Resources. Direction finance helps in clarifying the role of every
subordinate towards his work. The resources can be utilised properly only when less of
wastages, duplication of efforts, overlapping of performances, etc. doesn’t take place. Through
direction, the role of subordinates become clear as manager makes use of his supervisory, the
guidance, the instructions and motivation skill to inspire the subordinates. This helps in
maximum possible utilisation of resources of men, machine, materials and money which helps
in reducing costs and increasing profits.
Elements of Direction Includes
Elements of Direction includes
(a) Supervision (b) Leadership (c) Motivation (d) Communication
Supervision
Converting Plans
Leadership Directing Communication
Into Performance
Motivation
Elements of Directing
Supervision. “Guiding and directing efforts of employees and other resources to accomplish stated work
outputs” - Terry and Franklin.
Supervision is an element of direction. “Day-to-day relationship between an executive and his immediate
assistant and covers training, direction, motivation, coordination, maintenance of discipline, etc.”
- Newman and Warren.
Supervision denotes the functions performed by the supervisors.
Motivation. “Motivation is the complex force starting and keeping a person at work in an organisation.
Motivation is something that moves the person to action, and continues him in the course of action already
initiates.” - Dubin.
Motivation is the core of management. Technically, the term motivation can be traced to the Latin
word movere, which means ‘to move’. Motivating is a term which implies that one person induces
another, to engage in action by ensuring that a channel to satisfy the motive becomes available to the
individual. Motive is energizer of action, motivating is the channelisation and activation of motives,
motivation is the work behavior itself. Motivation depends on motives and motivating. It is a complex
process.
Leadership. “Leadership is essentially a continuous process of influencing behavior. A leader breathes life into
the group and motivates it towards goals. The lukewarm desires for achievement are transformed into burning
passion for accomplishment” - George R. Terry.
Leadership is the process of influencing the behavior of others to work willingly and
enthusiastically for achieving predetermined goals. It is an essential ingredient for successful
organisation. The successful organisation has one major attribute that sets it apart from unsuccessful
organisation that is dynamic and effective leadership.
Communication. “Communication is the transfer of information from one person to another person. It is a way
of reaching others by transmitting ideas, facts, thoughts, feeling sand values.” - Newstrom and Davis.
Communication is regarded as basic to the functioning of the organisation, in its absence; the
organisation would cease to exist. It is the process through which two or more persons come to
exchange ideas and understanding among themselves.
Controlling
Concept and Definition
Controlling consists of verifying whether everything occurs in conformities with the plans adopted,
instructions issued and principles established. Controlling ensures that there is effective and efficient
utilisation of organisational resources so as to achieve the planned goals. Controlling measures the
deviation of actual performance from the standard performance, discovers the causes of such
deviations and helps in taking corrective actions.
According to Donnell, “Just as a navigator continually takes reading to ensure whether he is relative
to a planned action, so should a business manager continually take reading to assure himself that his
enterprise is on right course.”
According to Brech, “Controlling is a systematic exercise which is called as a process of checking
actual performance against the standards or plans with a view to ensure adequate progress and also
recording such experience as is gained as a contribution to possible future needs.”
Controlling has got two basic purposes
1. It facilitates co-ordination
2. It helps in planning
Features of Controlling Function
Following are the characteristics of controlling function of management :
1. Controlling is a dynamic process. Since controlling requires taking reviewable methods, changes
have to be made wherever possible.
2. Controlling is forward looking. Because effective control is not possible without past being
controlled. Controlling always look to future so that follow-up can be made whenever required.
3. Controlling is related with planning. Planning and Controlling are two inseparable functions
of management. Without planning, controlling is a meaningless exercise and without
controlling, planning is useless. Planning presupposes controlling and controlling succeeds planning.
4. Controlling is an end function. A function which comes once the performances are made in
conformities with plans.
5. Controlling is a pervasive function. which means it is performed by managers at all levels and
in all type of concerns.
The Control Process

The control process involves carefully collecting information about a system, process, person, or
group of people in order to make necessary decisions about each. Managers set up control systems
that consist of four key steps:
Fixing the
Standards
Measuring
Follow-up the Actual
Control Process Performances
Corrective Comparision
Action
1. Fixing the Control Standards. A standard is a criterion (base) which is used to measure the
performance of the subordinates. Standards may be of two types, i.e., Quantitative Standards
and Qualitative Standards. Quantitative Standard can be easily defined and measured. For
e.g. number of products, number of customers, cost, net profit, time limits, etc. Qualitative
Standard cannot be easily defined and measured. For e.g. measurement of morale, measurement
of job satisfaction, measurement of effect of a training programme, advertisement programme,
etc. It is better to have quantitative standards because they are measurable. However, today
there are many new techniques for measuring qualitative standards. The standards should be
as clear as possible. It should be easily understood by both superiors and subordinates. The
responsibility of each individual should also be clearly defined i.e., everyone should be
responsible for achieving a particular goal, objective, target, etc. For e.g. The marketing
department fixes a standard – “We will sell 2,000 units of product X in one month”. So here the
standard is 2,000 units.
2. Measuring the Actual Performances. The second major step in controlling is to measure the
performance. Finding out deviations becomes easy through measuring the actual performance.
Performance levels are sometimes easy to measure and sometimes difficult. Measurement of
tangible standards is easy as it can be expressed in units, cost, money terms, etc. Quantitative
measurement becomes difficult when performance of manager has to be measured. Performance
of a manager cannot be measured in quantities. It can be measured only by :
a. Attitude of the workers,
b. Their morale to work,
c. The development in the attitudes regarding the physical environment, and
d. Their communication with the superiors.
It is also sometimes done through various reports like weekly, monthly, quarterly, yearly reports.
3. Comparison of actual and standard performance. The actual performances of the subordinates
are compared with established standards, and then the deviations are found out. The deviations
which are found out may be positive or negative.
Positive Deviation means that the actual performances are better than the established standards.
Positive deviations should be appreciated. Negative Deviation means that the actual
performance is less than the established standards. The management should pay special
attention to the negative deviation. They should find out the causes of negative deviations.
Generally, minor (small) deviations are ignored. However, major deviations should be
immediately addressed and reported to the top management. PERT, Budgetary Control,
Observation, Inspection, Reports, etc. are some of the methods used for comparison. For e.g.
10,000 units (Standard) - 9,000 units (Actual Performance) = 1,000 units (Negative Deviation).
4. Corrective Action. After finding out the negative deviations and their causes, the managers
should take steps to correct these deviations. Corrective actions should be taken promptly.
Corrective action may include, changing the standards, providing better motivation, giving
better training, using better machines, etc. The management should take essential steps to
prevent these deviations in the future.
For e.g. The cause of the negative deviation was less advertising and untrained salesmen. So,
the company must spend reasonable money on advertising and training.
5. Follow-up. After taking corrective action, the management must do a follow-up. Follow-up is
done to find out whether the corrective actions are taken properly. It also finds out whether the
deviations and their causes are removed. If follow-up is done properly, then the actual
performance will be equal to or better than the established standards.
Types of Organisational Control

These types of controls are formally called feed forward, concurrent, and feedback, respectively.
m Feed forward controls, sometimes called preliminary or preventive controls, attempt to identify
and prevent deviations in the standards before they occur. Feed forward controls focus on
human, material, and financial resources within the organisation. These controls are evident
in the selection and hiring of new employees. For example, organisations attempt to improve
the likelihood that employees will perform up to standards by identifying the necessary job
skills and by using tests and other screening devices to hire people with those skills.
m Concurrent controls monitor ongoing employee activity to ensure consistency with quality
standards. These controls rely on performance standards, rules, and regulations for guiding
employee tasks and behaviors. Their purpose is to ensure that work activities produce the
desired results. As an example, many manufacturing operations include devices that measure
whether the items being produced meet quality standards. Employees monitor the
measurements; if they see that standards are not being met in some area, they make a correction
themselves or let a manager know that a problem is occurring.
Three Types of Control
Inputs Conversion Outputs

Process
Feedforward Concurrent Feedback

control control control
(anticipate (manage problems (manage problems
problems) as they occur) aftr they occur)
m Feedback controls involve reviewing information to determine whether performance meets

established standards. For example, suppose that an organisation establishes a goal of
increasing its profit by 12 percent next year. To ensure that this goal is reached, the organisation
must monitor its profit on a monthly basis. After three months, if profit has increased by 3
percent, management might assume that plans are going according to schedule.
Organisational Control Techniques

Control techniques provide managers with the type and amount of information they need to measure
and monitor performance. The information from various controls must be tailored to a specific
management level, department, unit, or operation.
To ensure complete and consistent information, organisations often use standardised documents
such as financial, status, and project reports. Each area within an organisation, however, uses its own
specific control techniques, described in the following sections.
1. Financial controls. After the organisation has strategies in place to reach its goals, funds are
set aside for the necessary resources and labour. As money is spent, statements are updated to
reflect how much was spent, how it was spent, and what it obtained. Managers use these
financial statements, such as an income statement or balance sheet, to monitor the progress of
programs and plans. Financial statements provide management with information to monitor
financial resources and activities. The income statement shows the results of the organisation’s
operations over a period of time, such as revenues, expenses, and profit or loss. The balance sheet
shows what the organisation is worth (assets) at a single point in time, and the extent to which
those assets were financed through debt (liabilities) or owner’s investment (equity).
Financial audits, or formal investigations, are regularly conducted to ensure that financial
management practices follow generally accepted procedures, policies, laws, and ethical
guidelines. Audits may be conducted internally or externally. Financial ratio analysis examines
the relationship between specific figures on the financial statements and helps explain the
significance of those figures:
m Liquidity ratios measure an organisation’s ability to generate cash.
m Profitability ratios measure an organisation’s ability to generate profits.
m Debt ratios measure an organisation’s ability to pay its debts.
m Activity ratios measure an organisation’s efficiency in operations and use of assets.
In addition, financial responsibility centres require managers to account for a unit’s progress
toward financial goals within the scope of their influences. A manager’s goals and
responsibilities may focus on unit profits, costs, revenues, or investments.
2. Budget controls. A budget depicts how much an organisation expects to spend (expenses) and
earn (revenues) over a time period. Amounts are categorised according to the type of business
activity or account, such as telephone costs or sales of catalogues. Budgets not only help
managers plan their finances, but also help them keep track of their overall spending.
A budget, in reality, is both a planning tool and a control mechanism. Budget development
processes vary among organisations according to who does the budgeting and how the financial
resources are allocated. Some budget development methods are as follows:
m Top-down budgeting. Managers prepare the budget and send it to subordinates.
m Bottom-up budgeting. Figures come from the lower levels and are adjusted and coordinated
as they move up the hierarchy.
m Zero-based budgeting. Managers develop each new budget by justifying the projected
allocation against its contribution to departmental or organisational goals.
m Flexible budgeting. Any budget exercise can incorporate flexible budgets, which set “meet
or beat” standards that can be compared to expenditures.
3. Marketing controls. Marketing controls help monitor progress toward goals for customer
satisfaction with products and services, prices, and delivery. The following are examples of
controls used to evaluate an organisation’s marketing functions:
(i) Market research gathers data to assess customer needs—information critical to an
organisation’s success. Ongoing market research reflects how well an organisation is
meeting customers’ expectations and helps anticipate customer needs. It also helps identify
competitors.
(ii) Test marketing is small-scale product marketing to assess customer acceptance. Using
surveys and focus groups, test marketing goes beyond identifying general requirements
and looks at what (or who) actually influences buying decisions.
(iii) Marketing statistics measure performance by compiling data and analyzing results. In
most cases, competency with a computer spreadsheet program is all a manager needs.
Managers look at marketing ratios, which measure profitability, activity, and market shares,
as well as sales quotas, which measure progress toward sales goals and assist with inventory
controls.
Unfortunately, scheduling a regular evaluation of an organisation’s marketing program is
easier to recommend than to execute. Usually, only a crisis, such as increased competition or a
sales drop, forces a company to take a closer look at its marketing program. However, more
regular evaluations help minimise the number of marketing problems.
4. Human resource controls. Human resource controls help managers regulate the quality of
newly hired personnel, as well as monitor current employees’ developments and daily
performances.
On a daily basis, managers can go a long way in helping to control workers’ behaviours in
organisations. They can help direct workers’ performances toward goals by making sure that
goals are clearly set and understood. Managers can also institute policies and procedures to
help guide workers’ actions. Finally, they can consider past experiences when developing
future strategies, objectives, policies, and procedures.
Common control types include performance appraisals, disciplinary programs, observations,
and training and development assessments. Because the quality of a firm’s personnel, to a
large degree, determines the firm’s overall effectiveness, controlling this area is very crucial.
5. Computers and information controls. Almost all organisations have confidential and sensitive
information that they don’t want to become general knowledge. Controlling access to computer
databases is the key to this area. Increasingly, computers are being used to collect and store
information for control purposes. Many organisations privately monitor each employee’s
computer usage to measure employee performance, among other things. Some people question
the appropriateness of computer monitoring. Managers must carefully weigh the benefits against
the costs—both human and financial—before investing in and implementing computerised
control techniques.
6. Management Audit. Management Audit is an evaluation of the management as a whole. It
critically examines the full management process, i.e., planning, organising, directing, and
controlling. It finds out the efficiency of the management. To check the efficiency of the
management, the company’s plans, objectives, policies, procedures, personnel relations and
systems of control are examined very carefully. Management auditing is conducted by a team
of experts. They collect data from past records, members of management, clients and employees.
The data is analysed and conclusions are drawn about managerial performance and efficiency
7. Management Information System (MIS). In order to control the organisation properly the
management needs accurate information. They need information about the internal working of
the organisation and also about the external environment. Information is collected continuously
to identify problems and find out solutions. MIS collects data, processes it and provides it to the
managers. MIS may be manual or computerised. With MIS, managers can delegate authority to
subordinates without losing control.
8. PERT and CPM Techniques. Programme Evaluation and Review Technique (PERT) and Critical
Path Method (CPM) techniques were developed in USA in the late 50’s. Any programme consists
of various activities and sub-activities. Successful completion of any activity depends upon
doing the work in a given sequence and in a given time.
CPM / PERT can be used to minimise the total time or the total cost required to perform the total
operations. Importance is given to identifying the critical activities. Critical activities are those
which have to be completed on time otherwise the full project will be delayed. So, in these
techniques, the job is divided into various activities / sub-activities. From these activities, the
critical activities are identified. More importance is given to completion of these critical activities.
So, by controlling the time of the critical activities, the total time and cost of the job is minimised.
9. Self-Control. Self-Control means self-directed control. A person is given freedom to set his own
targets, evaluate his own performance and take corrective measures as and when required.
Self-control is especially required for top level managers because they do not like external control.
The subordinates must be encouraged to use self-control because it is not good for the superior
to control each and everything. However, self-control does not mean no control by the superiors.
The superiors must control the important activities of the subordinates.
10. Break Even Analysis. Break Even Analysis or Break Even Point is the point of no profit, no loss.
For e.g. When an organisation sells 50K cars it will break even. It means that, any sale below
this point will cause losses and any sale above this point will earn profits. The Break-even
analysis acts as a control device. It helps to find out the company’s performance. So the company
can take collective action to improve its performance in the future. Break-even analysis is a
simple control tool.
11. Return on Investment (ROI). Investment consists of fixed assets and working capital used in
business. Profit on the investment is a reward for risk taking. If the ROI is high then the financial
performance of a business is good and vice-versa. ROI is a tool to improve financial performance.
It helps the business to compare its present performance with that of previous years’
performance. It helps to conduct inter-firm comparisons. It also shows the areas where corrective
actions are needed.
12. Management Audit. Management Audit is an evaluation of the management as a whole. It
critically examines the full management process, i.e., planning, organising, directing, and
controlling. It finds out the efficiency of the management. To check the efficiency of the
management, the company’s plans, objectives, policies, procedures, personnel relations and
systems of control are examined very carefully. Management auditing is conducted by a team
of experts. They collect data from past records, members of management, clients and employees.
The data is analyzed and conclusions are drawn about managerial performance and efficiency.
13. Management Information System (MIS). In order to control the organisation properly the
management needs accurate information. They need information about the internal working of
the organisation and also about the external environment. Information is collected continuously
to identify problems and find out solutions. MIS collects data, processes it and provides it to the
managers. MIS may be manual or computerised. With MIS, managers can delegate authority to
subordinates without losing control.
Coordination
Meaning
Coordination as a function of the management refers to the tasks of integrating the activity of separate
units of an organisation to accomplish the goals efficiently. It permeates all levels and all department
of the management hence it is regarded as the essence of the management.
Definition of Coordination
According to the Mcfarland, “Coordination is the process whereby an executive develops an orderly
pattern of group efforts among his subordinate and secure unity of the action in the pursuit of a
common purpose”.
According to E.F.L Breach, “Coordination is the balancing and keeping together, the team by ensuring
a suitable allocation of tasks to various members and seeing that the tasks are performed with due
harmony among the members themselves”.
According to Henry Fayol, “To coordinate is to harmonise all the activities of a concern so as to
facilitate its working and its success”.
According to George terry, ”The orderly synchronisation of efforts to provide the proper amount
timing and directly of execution resulting harmonious and unified action to stated objectives”.
According to Haimann, “Coordination is not a separate activity of management. It is the organ of
all other managerial functions like – planning, organising, staffing, directing, and controlling”.
According to Mooney and Railey, “Coordination is the achievement or group efforts and the unity
of action of the pursuit of a common purpose”.
Features of Coordination
1. Function. Coordination is not a separate function of management. It is the part and essence
of management.
2. Responsibility. Coordination is the basic responsibility of all managers and it can be only
achieved through managerial function. This cannot be avoided by any manager and whenever
people work together for the common objective, coordination is required.
3 Unity. The main aspect of coordination is the unity of effort and action, which includes the
predetermining the timing and method of the performance of the various activities so that
efforts of individual are blended into group efforts.
4. Requirement. Coordination is required in the group efforts and not in the individual efforts.
It is not required when an individual works alone but when the group is working for the
common objective then their efforts needs to be coordinated.
5. Integration. Higher the degree of integration higher the coordination is required, further lower
the degree of integration, lower level of coordination is required.
6. Continuous and dynamic. Coordination is a continuous and dynamic process. It is
continuous as it is achieved through the performance of functions. It is dynamic as it changes
with the changes in the functions.
7. Purpose. Coordination has the purpose to achieve the organisational objectives.
8. Elements. Balancing, timing, and integration are the three main elements of the coordination.
Difference Between Coordination and Cooperation
Basis Coordination Cooperation
Scope It has the wider scope and cooperation is It has limited scope and it is the part of
the part of it. the coordination.
Nature It is practical and professional in nature. It is emotional in nature.
Principle Direct Contact and Continuity of efforts Voluntary association
Relationship Formal and informal both Informal only
Objective Synchronisation of efforts of individual. Protecting the interest of members.
Types of Coordination
Coordination can be classified into following categories:
m Vertical Coordination. Vertical coordination exists between the departments where the
department heads are asked to coordinate the work of the employees Principles of coordination
m Horizontal Coordination. Horizontal coordination takes place sideways. It exists between
different departments such as production, sales, purchasing, finance etc.
m Internal Coordination. Coordination among the employees of the same department or section
and among the employees at different levels is called internal coordination.
m External Coordination. Coordination with the outside parties with whom the organisation has
the business connections like government, suppliers, customers etc. is called external
coordination.
Following are the Principles of Coordination

m Principle of early introduction. Coordination must be visualised right from the early stages of
planning and policy-making. At the time of preparation of the plan, mutual cooperation,
consultation, give and take become the necessity. In case the plan is prepared without
coordination then it becomes difficult to supply the required materials or results in the
misallocation of the duties.
m Principle of continuity. According to this principle, coordination should be followed in the
organisation on continuous basis and it should be taken as a regular activity. Managers should
treat coordination as the never ending exercise.
m Principle of Direct Contact. According to the principle of direct contact, coordination can only
be established through the direct contact of the parties whose activities are to be coordinated.
As through direct contact the parties can discuss the methods, plans, actions, activities and
work for the achievement of overall organisational goals.
m Principle of mutual relation. This principle states that every employee should understand the
problems faced by the other employees and try to solve them. For the purpose of coordination,
there should be perfect adjustment and sense of fellow feeling among the employees placed
under them.
Communication
Definition
m Allen. “Communication is the sum of all the things one person does when wants to create
understanding in the mind of other be. It is a bridge of meaning. It involves a systematic and
continuous process of telling, listening and understanding”.
m Fred G. Meyer. “Communication is the intercourse by words, letters or messages”.
m G.G. Brown. “Communication is transfer of information from one person to another, whether
or not it elicits confidence. But the information transferred must be understandable to the receiver.
m Keith Davis. “The process of passing information and understanding from one person to
another”. Communication is a vital part of direction function. Through communication messages
are sent and received. To communicate is to inform to show or to spread information. It is the
means by which management gets its job done.
m William Scott. “It is a process which involves the transmission and accurate replication of
ideas ensured by feedback for the purpose of eliciting actions which will accomplish
organisational goals”.
Meaning
The process of passing any information from one person to the other person with the aid of some
medium is termed as communication. The first party who sends the information is called the sender
and the second party who receives the information, decodes the information and accordingly responds
is called the receiver or the recipient. Thus in simpler terms communication is simply a process where
the sender sends the information to the receiver for him to respond.
Sender -------------------------------- Receiver
Information
In an organisation, your boss will never give you your share of credit, unless and until you present
your work in a well defined manner. How will one present his/her work- by communication? Parents
will never understand that their child is hurt unless and until, the child cries or shows his wounds.
What is crying? A form of communication. What does showing of wounds mean-The child wants to
communicate to his parents that he needs to be immediately attended by the doctor.
Communication Process
Communication is a process of exchanging verbal and non verbal messages. It is a continuous process.
Pre-requisite of communication is a message. This message must be conveyed through some medium
to the recipient. It is essential that this message must be understood by the recipient in same terms as
intended by the sender. He must respond within a time frame. Thus, communication is a two way
process and is incomplete without a feedback from the recipient to the sender on how well the message
is understood by him.
Sender Messages Transmission Recipient Receiver

(ideas) (encodes) (signals) (decodes) (meaning)
Feedback
Communication Process
The Main Components of Communication Process
Communication is affected by the context in which it takes place. This context may be physical, social,
chronological or cultural. Every communication proceeds with context. The sender chooses the message
to communicate within a context.
1. Sender. Sender is a person who sends the message. A sender makes use of symbols (words or
graphic or visual aids) to convey the message and produce the required response. For instance
– a training manager conducting training for new batch of employees. Sender may be an
individual or a group or an organisation. The views, background, approach, skills, competencies,
and knowledge of the sender have a great impact on the message. The verbal and non verbal
symbols chosen are essential in ascertaining interpretation of the message by the recipient in
the same terms as intended by the sender.
2. Message. Message is a key idea that the sender wants to communicate. It is a sign that elicits
the response of recipient. Communication process begins with deciding about the message to
be conveyed. It must be ensured that the main objective of the message is clear.
3. Transmission or Medium. Medium is a means used to exchange / transmit the message. The
sender must choose an appropriate medium for transmitting the message else the message
might not be conveyed to the desired recipients. The choice of appropriate medium of
communication is essential for making the message effective and correctly interpreted by the
recipient. This choice of communication medium varies depending upon the features of
communication. For instance - Written medium is chosen when a message has to be conveyed
to a small group of people, while an oral medium is chosen when spontaneous feedback is
required from the recipient as misunderstandings are cleared then and there.
4. Recipient / Decoder. Recipient / Decoder is a person for whom the message is intended /
aimed / targeted. The degree to which the decoder understands the message is dependent
upon various factors such as knowledge of recipient, their responsiveness to the message, and
the reliance of encoder on decoder.
5. Feedback. Feedback is the main component of communication process as it permits the sender
to analyze the efficacy of the message. It helps the sender in confirming the correct interpretation
of message by the decoder. Feedback may be verbal (through words) or non-verbal (in form of
smiles, signs, etc.). It may take written form also in form of memos, reports, etc.
Types of Business Communication

m Oral Communication. Meaning Oral communication implies communication through mouth.
It includes individuals conversing with each other, be it direct conversation or telephonic
conversation. Speeches, presentations, discussions are all forms of oral communication. Oral
communication is generally recommended when the communication matter is of temporary
kind or where a direct interaction is required. Face to face communication (meetings, lectures,
conferences, interviews, etc.) is significant so as to build a rapport and trust.
m Written Communication. Written communication has great significance in today’s business
world. It is an innovative activity of the mind. Effective written communication is essential for
preparing worthy promotional materials for business development. Speech came before writing.
But writing is more unique and formal than speech. Effective writing involves careful choice of
words, their organisation in correct order in sentences formation as well as cohesive composition
of sentences. Also, writing is more valid and reliable than speech. But while speech is
spontaneous, writing causes delay and takes time as feedback is not immediate.
m Non Verbal Communication. Nonverbal communication is behavior, other than spoken or
written communication, that creates or represents meaning. In other words, it includes facial
expressions, body movements, and gestures. Nonverbal communication is talking without
speaking a word. It is very effective, maybe even more so than speech. Remember the saying,
“Actions speak louder than words Nonverbal communication usually understood as the process
of communication through sending and receiving wordless messages. Such messages can be
communicated through gesture; body language or posture; facial expression and eye contact;
object communication such as clothing, hairstyles or even architecture; symbols and info
graphics. Speech may also contain nonverbal elements known as para-language, including
voice quality, emotion and speaking style, as well as pro-sodic features such as rhythm,
intonation and stress. Likewise, written texts have nonverbal elements such as handwriting
style, spatial arrangement of words, or the use of emotions.
In an organisation, communication flows in five main directions :
1. Downward 2. Upward
3. Lateral 4. Diagonal
5. External
m Downward Flow of Communication. Communication that flows from a higher level in an
organisation to a lower level is a downward communication. In other words, communication
from superiors to subordinates in a chain of command is a downward communication. This
communication flow is used by the managers to transmit work-related information to the
employees at lower levels. Employees require this information for performing their jobs and for
meeting the expectations of their managers.
m Upward Flow of Communication. Communication that flows to a higher level in an organisation
is called upward communication. It provides feedback on how well the organisation is
functioning. The subordinates use upward communication to convey their problems and
performances to their superiors.
The subordinates also use upward communication to tell how well they have understood the
downward communication. It can also be used by the employees to share their views and ideas
and to participate in the decision-making process.
Upward communication leads to a more committed and loyal workforce in an organisation
because the employees are given a chance to raise and speak dissatisfaction issues to the
higher levels. The managers get to know about the employees feelings towards their jobs, peers,
supervisor and organisation in general. Managers can thus accordingly take actions for
improving things.
m Lateral / Horizontal Communication. Communication that takes place at same levels of hierarchy
in an organisation is called lateral communication, i.e., communication between peers, between
managers at same levels or between any horizontally equivalent organisational member.
m Diagonal Communication. Communication that takes place between a manager and employees
of other workgroups is called diagonal communication. It generally does not appear on
organisational chart. For instance - To design a training module a training manager interacts
with an Operations personnel to enquire about the way they perform their task.
m External Communication. Communication that takes place between a manager and external
groups such as - suppliers, vendors, banks, financial institutes etc. For instance - To raise
capital the Managing director would interact with the Bank Manager.
m Multi-Directional Communication. Multi-directional communication is the integration of
horizontal, upward and downward communication. Through this kind of communication,
organisations achieve more accurate feedback. Business can uses it to motivate employees and
generate a feeling of inclusion to all people on all levels of a company. It also helps to promote
understanding within an organisation.
Grapevine Communication (Informal Business Communication)
Grapevine is an informal channel of business communication. It is called so because it stretches
throughout the organisation in all directions irrespective of the authority levels. Man as we know is a
social animal. Despite existence of formal channels in an organisation, the informal channels tend to
develop when he interacts with other people in organisation. It exists more at lower levels of
organisation. Grapevine generally develops due to various reasons. One of them is that when an
organisation is facing recession, the employees sense uncertainty. Also, at times employees do not
have self-confidence due to which they form unions. Sometimes the managers show preferential
treatment and favor some employees giving a segregated feeling to other employees. Thus, when
employees sense a need to exchange their views, they go for grapevine network as they cannot use the
formal channel of communication in that case. Generally during breaks in cafeteria, the subordinates
talk about their superior’s attitude and behavior and exchange views with their peers. They discuss
rumors about promotion and transfer of other employees. Thus, grapevine spreads like fire and it is
not easy to trace the cause of such communication at times.
Pros & Cons of Grapevine Communication

Advantages of Grapevine Communication
1. Grapevine channels carry information rapidly. As soon as an employee gets to know some
confidential information, he becomes inquisitive and passes the details then to his closest
friend who in turn passes it to other. Thus, it spreads hastily.
2. The managers get to know the reactions of their subordinates on their policies. Thus, the feedback
obtained is quick compared to formal channel of communication.
3. The grapevine creates a sense of unity among the employees who share and discuss their views
with each other. Thus, grapevine helps in developing group cohesiveness.
4. The grapevine serves as an emotional supportive value.
5. The grapevine is a supplement in those cases where formal communication does not work.
Disadvantages of Grapevine Communication

1. The grapevine carries partial information at times as it is more based on rumours. Thus, it does
not clearly depict the complete state of affairs.
2. The grapevine is not trustworthy always as it does not follows official path of communication
and is spread more by gossips and unconfirmed report.
3. The productivity of employees may be hampered as they spend more time talking rather than
working.
4. The grapevine leads to making hostility against the executives.
5. The grapevine may hamper the goodwill of the organisation as it may carry false negative
information about the high level people of the organisation.
A smart manager should take care of all the disadvantages of the grapevine and try to minimise
them. At the same time, he should make best possible use of advantages of grapevine.
Feedback Communication
Receivers are not just passive absorbers of messages; they receive the message and respond to them.
This response of a receiver to sender’s message is called Feedback. Sometimes a feedback could be a
non-verbal smiles, signs etc. Sometimes it is oral, as when you react to a colleague’s ideas with
questions or comments. Feedback can also be written like - replying to an e-mail, etc. Feedback is your
audience’s response; it enables you to evaluate the effectiveness of your message. If your audience
doesn’t understand what you mean, you can tell by the response and then refine the message
accordingly. Giving your audience a chance to provide feedback is crucial for maintaining an open
communication climate. The manager must create an environment that encourages feedback. For
example after explaining the job to the subordinated he must ask them whether they have understood
it or not. He should ask questions like “Do you understand?”, “Do you have any doubts?” etc. At the
same time he must allow his subordinated to express their views also.
Feedback is essential in communication so as to know whether the recipient has understood the
message in the same terms as intended by the sender and whether he agrees to that message or not.
There are lot of ways in which company takes feedback from their employees, such as : Employee
surveys, memos, e-mails, open-door policies, company news letter etc. Employees are not always
willing to provide feedback. The organisation has to work a lot to get the accurate feedback. The
managers encourage feedback by asking specific questions, allowing their employees to express general
views, etc. The organisation should be receptive to their employee’s feedback.
Communication Barriers – Reason for Communication Breakdown

Following are the main communication barriers:
m Perceptual and Language Differences. Perception is generally how each individual interprets
the world around him. All generally want to receive messages which are significant to them.
But any message which is against their values is not accepted. A same event may be taken
differently by different individuals. For example : A person is on leave for a month due to
personal reasons (family member being critical). The HR Manager might be in confusion whether
to retain that employee or not, the immediate manager might think of replacement because his
teams productivity is being hampered, the family members might take him as an emotional
support. The linguistic differences also lead to communication breakdown. Same word may
mean different to different individual.
m “Value” means different in different sentences. Communication breakdown occurs if there is
wrong perception by the receiver.
m Information Overload. Managers are surrounded with a pool of information. It is essential to
control this information flow else the information is likely to be misinterpreted or forgotten or
overlooked. As a result communication is less effective.
m Inattention. At times we just not listen, but only hear. For example a traveler may pay attention
to one “NO PARKING” sign, but if such sign is put all over the city, he no longer listens to it.
Thus, repetitive messages should be ignored for effective communication. Similarly if a superior
is engrossed in his paper work and his subordinate explains him his problem, the superior
may not get what he is saying and it leads to disappointment of subordinate.·
m Time Pressures. Often in organisation the targets have to be achieved within a specified time
period, the failure of which has adverse consequences. In a haste to meet deadlines, the formal
channels of communication are shortened, or messages are partially given, i.e., not completely
transferred. Thus sufficient time should be given for effective communication.
m Distraction/Noise. Communication is also affected a lot by noise to distractions. Physical
distractions are also there such as, poor lightning, uncomfortable sitting, unhygienic room also
affects communication in a meeting. Similarly use of loud speakers interferes with
communication.
m Emotions. Emotional state at a particular point of time also affects communication. If the receiver
feels that communicator is angry he interprets that the information being sent is very bad.
While he takes it differently if the communicator is happy and jovial (in that case the message
is interpreted to be good and interesting).
m Complexity in Organisational Structure. Greater the hierarchy in an organisation (i.e. more the
number of managerial levels), more is the chances of communication getting destroyed. Only
the people at the top level can see the overall picture while the people at low level just have
knowledge about their own area and a little knowledge about other areas.
m Poor retention. Human memory cannot function beyond a limit. One can’t always retain what
is being told specially if he is not interested or not attentive. This leads to communication
breakdown.
There are several barriers that affect the flow of communication in an organisation. These barriers
interrupt the flow of communication from the sender to the receiver, thus making communication
ineffective. It is essential for managers to overcome these barriers. The main barriers of communication
are summarised below.
Overcoming Communication Barriers

There are a lot of communication barriers faced these days by all. The message intended by the sender
is not understood by the receiver in the same terms and sense and thus communication breakdown
occurs. It is essential to deal and cope up with these communication barriers so as to ensure smooth
and effective communication. As, in the previous section we have discussed the major barriers of
communication. Let’s talk about how to overcome these barriers of communication.
1. Eliminating differences in perception. The organisation should ensure that it is recruiting
right individuals on the job. It’s the responsibility of the interviewer to ensure that the interviewee
has command over the written and spoken language. There should be proper Induction program
so that the policies of the company are clear to all the employees. There should be proper
trainings conducted for required employees (for e.g.: Voice and Accent training).
2. Use of Simple Language. Use of simple and clear words should be emphasized. Use of
ambiguous words and jargons should be avoided.
3. Reduction and elimination of noise levels. Noise is the main communication barrier which
must be overcome on priority basis. It is essential to identify the source of noise and then
eliminate that source.
4. Active Listening. Listen attentively and carefully. There is a difference between “listening”
and “hearing”. Active listening means hearing with proper understanding of the message that
is heard. By asking questions the speaker can ensure whether his/her message is understood
or not by the receiver in the same terms as intended by the speaker.
5. Emotional State. During communication one should make effective use of body language. He/
she should not show their emotions while communication as the receiver might misinterpret
the message being delivered. For example, if the conveyer of the message is in a bad mood then
the receiver might think that the information being delivered is not good.
6. Simple Organisational Structure. The organisational structure should not be complex. The
number of hierarchical levels should be optimum. There should be a ideal span of control
within the organisation. Simpler the organisational structure, more effective will be the
communication.
7. Avoid Information Overload. The managers should know how to prioritise their work. They
should not overload themselves with the work. They should spend quality time with their
subordinates and should listen to their problems and feedbacks actively.
8. Give Constructive Feedback. Avoid giving negative feedback. The contents of the feedback
might be negative, but it should be delivered constructively. Constructive feedback will lead to
effective communication between the superior and subordinate.
9. Proper Media Selection. The managers should properly select the medium of communication.
Simple messages should be conveyed orally, like: face to face interaction or meetings. Use of
written means of communication should be encouraged for delivering complex messages. For
significant messages reminders can be given by using written means of communication such
as : Memos, Notices etc.
10. Flexibility in meeting the targets. For effective communication in an organisation the managers
should ensure that the individuals are meeting their targets timely without skipping the formal
channels of communication. There should not be much pressure on employees to meet their
targets.
Seven C’s of Effective Communication

There are 7 C’s of effective communication which are applicable to both written as well as oral
communication.
These are as follows:
m Completeness. The communication must be complete. It should convey all facts required by
the audience. The sender of the message must take into consideration the receiver’s mind set
and convey the message accordingly.
m Conciseness. Conciseness means wordiness, i.e., communicating what you want to convey in
least possible words without forgoing the other C’s of communication. Conciseness is a necessity
for effective communication.
m Consideration. Consideration implies “stepping into the shoes of others”. Effective
communication must take the audience into consideration, i.e., the audience’s view points,
background, mind-set, education level, etc. Make an attempt to envisage your audience, their
requirements, emotions as well as problems. Ensure that the self-respect of the audience is
maintained and their emotions are not at harm. Modify your words in message to suit the
audience’s needs while making your message complete.
m Clarity. Clarity implies emphasizing on a specific message or goal at a time, rather than trying
to achieve too much at once. Clarity in communication has following features:
n It makes understanding easier.
n Complete clarity of thoughts and ideas enhances the meaning of message.
n Clear message makes use of exact, appropriate and concrete words.
m Concreteness. Concrete communication implies being particular and clear rather than fuzzy
and general. Concreteness strengthens the confidence. Concrete message has following features:
n It is supported with specific facts and figures.
n It makes use of words that are clear and that build the reputation.
n Concrete messages are not misinterpreted.
m Courtesy. Courtesy in message implies the message should show the sender’s expression as
well as should respect the receiver. The sender of the message should be sincerely polite,
judicious, reflective and enthusiastic. Courteous message has following features:
n Courtesy implies taking into consideration both viewpoints as well as feelings of the receiver
of the message.
n Courteous message is positive and focused at the audience.
n It makes use of terms showing respect for the receiver of message.
n It is not at all biased.
m Correctness. Correctness in communication implies that there are no grammatical errors in
communication. Correct communication has following features:
n The message is exact, correct and well-timed.
n If the communication is correct, it boosts up the confidence level.
n Correct message has greater impact on the audience/ readers.
n It checks for the precision and accurateness of facts and figures used in the message.
It makes use of appropriate and correct language in the message. Awareness of these 7 C’s of
communication makes you an effective communicator.
MULTIPLE CHOICE QUESTIONS

1. Stages in the History of Development of (C) General electric company
Management Thoughts were given by (D) Indian electric company
(A) Herbert G. Hicks (B) Elton Mayo 10. Arrange the following stages of the
(C) F.W. Taylor (D)Chris Argyris Hawthorne experiment as they are con-
2 Who coined the term Scientific Management? ducted
(A) Elton Mayo (B) Henry Fayol (i) Bank Wiring Observation Test Room
(C) F.W. Taylor (D) Rensis Likert (ii) Illumination Experiment
3. F.W Taylor’s important writing includes (iii) Mass Interviewing Programme
(A) Shop management (iv) Relay Assembly Test Group
(B) Principle of scientific management Codes :
(C) Both A and B (D) None of these (A) (ii) (iv) (i) (iii)
4. Deliberate restriction in output scientific (B) (ii) (iv) (iii) (i)
management means (C) (i) (iii) (iv) (ii)
(A) Systematic soldering (D) (ii) (iii) (i) (iv)
(B) Effective soldering 11. Elton Mayo’s contribution of management
(C) Both A and B (D) None of these development thought was
5. Which of the following element of scientific (A) Human relation approach
management was given by Taylor? (B) Non-economic rewards
(A) Time and motion study (C) Social man (D) All of these
(B) Functional foremanship 12. Chester Bernard’s important writings include
(C) Standardisation (A) The function of the Executive
(D) All of these (B) Organisation & Management
6. Who was associated with the ‘illumination (C) Elementary condition of business morale
experiment’ of the Hawthorne experiment? (D) All of these
(A) Elton Mayo 13. Control function cannot be performed with-
(B) George A. Pennock out
(C) F.J. Roethlisberger (A) Planning (B) Organising
(D) None of the above (C) Staffing (D) All of these
7. Father of the human relation approach was 14. One who has too little work is called
(A) Abraham Maslow (A) A squealer (B) A chiseller
(B) Douglas McGregor (C) Both A & B (D) All of these
(C) P.F. Drucker (D) Elton Mayo 15. ‘No smoking in the factory’ is an example of
8. Who was the champion of the ‘Welfare (A) Policy (B) Rule
Movement’ propagated in mid 19th century? (C) Staffing (D) All of these
(A) Robert Owen (B) Oliver Sheldon 16. A guideline that channelise decision mak-
(C) Henry Fayol (D) Herbert G. Hicks ing is called
9. Elton Mayo conducted his Hawthorne ex- (A) Policy (B) Rule
periment in (C) Staffing (D) All of these
(A) Western electric company 17. Which of the following principles of man-
(B) Eastern electric company agement was not given by Fayol
(A) Unity of direction (B) Formal communication
(B) Subordination of individual interest to (C) Official created
common interest (D) All of these
(C) Stability of tenure 26. What is essential for the management to get
(D) Standardisation things done in the organisation?
18. Delphi techniques is used in (A) Monetary incentives
(A) Organising (B) Operating (B) Delegation
(C) Staffing (D) Forecasting (C) MBO techniques
19. Narrow span of control results into (D) All of these
(A) Tall structure (B) Flat structure 27. Under the types of motivators, non-finan-
(C) Mechanistic structure cial motivators are encouragement and free-
(D) All of the above dom
20. Which of the following is correct about (A) Monetary incentives
“GRAPVINE”? (B) Recognition
(A) It tends to exist when member of formal (C) MBO techniques
group know one and another well (D) All of these
(B) It is the result of the social forces at work 28. What is that the consultant must be able to
place recognise about the client’s future needs ?
(C) It is more common in times of high (A) Vision (B) Recognition
organisational commitment (C) MBO techniques (D) All of these
(D) All of the above 29. The old control techniques which were used
21. An outline of the fundamental purpose of through years are
an organization is called its (A) unity of policies
(A) mission statement (B) break-even analysis
(B) objectives (C) budgetary control (D) All of these
(C) policy (D) all of the above 30. One of the merits of ________ is that it rec-
22. With which school of management thought ognises importance of various individual
“Case of Schmidt’ is associated needs and motivation, and yields a contin-
(A) Scientific management gency model.
(B) Human relation school (A) unity of policies
(C) System school (B) break-even analysis
(D) All of these (C) budgetary control
23. Which of the following is the outcome of job (D) Vroom’s theory
satisfaction? 31. Chester Bernard developed a theory of
(A) High employee turnover organisation and ________ functions.
(B) High productivity (A) Vision (B) Recognition
(C) Absenteeism (D) All of these (C) Executive (D) All of these
24. Identify the principle of the F.W Taylor sci- 32. Who propounded the theory X and theory
entific management Y?
(A) Scalar chain (A) McGregor (B) Elton Mayo
(B) M.B.O technique (C) F.W. Taylor (D) Chris Argyris
(C) Functional foremanship 33. Who is the Father of Competitive Strategy?
(D) All of these (A) Michael E. Porter
25. Grapevine is called (B) Elton Mayo
(A) Informal communication (C) F.W. Taylor (D) All of these
34. Few of the management principles given by (A) Quantitative-Operation research
Henry Fayol are (B) Contingency approach
(A) Authority and responsibility (C) System approach
(B) Division of work (D) All of these
(C) Discipline (D) All of these 44. Bureaucratic models were given by
35. The major book/books on social and politi- (A) Max Weber (B) Henry Fayol
cal analysis by Peter Drucker are (C) F.W. Taylor (D) Elton Mayo
(A) The future of industrial man 45. Who gave the 14 Principles of Management?
(B) The age of discontinuity (A) Elton Mayo (B) F.W.Taylor
(C) Drucker on Asia (C) Max Weber (D) Henry Fayol
(D) All of these
46. Author of ‘Making scientific management’
36. Behavioural science approaches with its ma- is given by
jor emphasis was (A) Urwick and breach
(A) Social psychology (B) Sociology (B) F.W.Taylor
(C) Rewards (D) Both A and B (C) Elton Mayo (D) Max Weber
37. The important aspect of Behavioural science 47. Role of staff in “line and staff” organisation
approach was is
(A) Employee motivation (A) Advisory (B) Managerial
(B) Organisation as a social system (C) Superior (D) All of these
(C) Leadership & communication
48. Which approach emerged from the findings
(D) All of these of Hawthorne experiment
38. The Stages of the Evolution of Management (A) Human relation approach
Period is (B) System approach
(A) Classical period (B) NEO classical (C) Behavioural science movement
(C) The modern period (D) All of these (D) All of these
39. The Classical Theory time period is 49. Who called scientific management thought
(A) 1900-1930 (B) 1930-1950 as a “Rabble Hypothesis?”
(C) 1950-1980 (D) None of these (A) Michael E. Porter
40. Which of the following includes in the Clas- (B) Charles Babbage
sical theory? (C) Elton Mayo (D) All of these
(A) Bureaucratic 50. The following steps in the planning process
(B) Scientific management are
(C) Functional and administrative (i) Being aware of opportunities
(D) All of these (ii) Establish organisation objectives
41. Neo-Classical theory time period is: (iii) Developing Premises
(A) 1900-1930 (B) 1930-1950 (iv) Selecting a Course
(C) 1950-1980 (D) None of these (v) Evaluating alternatives Course
42. Neo-Classical theory includes Codes :
(A) Human relation movement (A) (ii) (iv) (i) (iii) (v)
(B) System approach (B) (i) (ii) (iii) (iv) (v)
(C) Behavioural science movement (C) (i) (iii) (iv) (ii) (v)
(D) Both A and C (D) (ii) (iii) (i) (iv) (v)
43. Modern Approach Management Theories 51. The “Social problem of industrial
names civilisation“ was given by
(A) Michael E. Porter (B) Charles Babbage 61. Which Book was given by Douglas
(C) Elton Mayo (D) All of these McGregor?
52. The “Human problem of industrial civilisa- (A) Professional manager
tion “is given by (B) Leadership and management
(A) Michael E. Porter (C) The human side of enterprise
(B) Charles Babbage (D) All of these
(C) Elton Mayo (D) All of these 62. The “Acceptance theory of authority” was
53. The “Shop Management” was given by given by
(A) Michael E. Porter (A) Michael E. Porter
(B) Charles Babbage (B) Charles Babbage
(C) F.W. Taylor (D) All of these (C) Chester Barnard (D) All of these
54. The ‘Management and worker’ was given by 63. The sequences of the Controlling process are
(A) Michael E. Porter (B) Charles Babbage (i) Established Standard
(C) F.J. Roethlisberger (D) All of these (ii) Measurement of actual Performance
55. The keyword “POCCC” was given by (iii) Comparing Actual performance with
standard
(A) Henry Fayol (B) Fredrick Herzberg
(iv) Taking Corrective action
(C) Chester Barnard (D) All of these
Codes :
56. The keyword “POSDC” was given by
(A) (ii) (iv) (i) (iii)
(A) Koontz & O’Donnell
(B) (i) (ii) (iii) (iv)
(B) Fredrick Herzberg
(C) (i) (iii) (iv) (ii)
(D) (ii) (iii) (i) (iv)
57. A special kind of plan formulated in order
64. Coordination between different departments
to meet the challenge of the competitors is
and person within the organisation is called
called
(A) Internal Coordination
(A) Strategy (B) Unity of direction
(B) External Coordination
(C) Scalar chain (D) All of these
(C) Vertical Coordination
58. Mr. X is a branch manager for Microsoft. He (D) All of these
is
65. Coordination between an organisation and
(A) top management
its external environment is called
(B) middle management
(C) supervisory management
(D) none of the above
59. Management has been become more complex (D) All of these
because
66. Integration of efforts between superiors and
(A) There is less time to react to competitive
subordinate working at the different levels
action
in an organisation is
(B) The equipment used in many of the firm
activities
(C) Firms have become larger
(D) All of the above
(D) All of these
60. ________, weakness, opportunities threats
are the long form of SWOT analysis. 67. ________are assumptions about future.
(A) Strength (B) Managerial (A) Premises
(C) Control (D) Forecasting (B) unity of direction
(C) Scalar chain (D) All of these
68. A group of people interacting with each 78. Advantages of delegation of authority would
other’s by means of audio video media with be
moving or still pictures is called (A) Prompt decision making
(A) Teleconference (B) Opportunity to subordinates to grow
(B) Unity of direction and develop
(C) Scalar chain (D) All of these (C) Satisfaction to subordinates in terms of
69. ________ are at a minimum where the mo- recognition
rale is high. (D) All of these
(A) Grievance (B) Managerial 79. ____________organisations have systems,
(C) Control (D) Forecasting mechanisms and processes in place.
70. To which practice is the term “corporate gov- (A) Organising (B) Learning
ernance” given? (C) Basic needs (D) All of these
(A) Organising (B) Management 80. LPG stands for liberalisation, ________ and
(C) Control (D) Forecasting globalisation.
71. In addition to Place, Labour and Money (A) Planning (B) Privatisation
which other internal environment Factor in- (C) Presenting (D) All of these
fluences Management? 81. Certain important motivational techniques
(A) Organising (B) Management are
(C) Control (D) Machines (A) Monetary incentives
72. Which of the following is the types of degree (B) Job-based techniques
of delegations? (C) MBO techniques (D) All of these
(A) Low degree (B) Moderate degree 82. The ________ principle, which is the inher-
(C) High degree (D) All of these ent process in organisation through which
73. Name one of the factors that govern the span authority, the antecedent co-coordinative
of management principle, permeates the entire organised
(A) Profession (B) Type of work structure.
(C) Employees (D) All of these (A) Scalar (B) Unity of direction
(C) MBO techniques(D) All of these
74. What does Maslow propound about the five
needs ? 83. The process of forecasting is based on
(A) Profession (B) Hierarchy (A) Future trends
(C) Basic needs (D) All of these (B) Current analysis
75. Name the technique which is said to be a (C) Past performance (D) All of these
ploy or a future course of action 84. Managers should be effective ________ so
(A) Strategy (B) Hierarchy that they may influence the activities of sub-
(C) Basic needs (D) All of these ordinates without dissatisfying them.
(A) Leaders (B) Morale
76. _______ is the ability to sense, understand
and effectively apply emotion. (C) MBO (D) All of these
(A) Strategy 85. The following are the elements of control
(B) Emotional Intelligence (A) Authority and knowledge
(C) Basic needs (D) All of these (B) Guidance and direction
77. Who built the first practical mechanical cal- (C) Constraint and restraint
culator and predicted the specialisation of (D) All of these
mental work 86. Frederic W.Taylor’s middle name is ______.
(A) Charles Babbage (B) Elton Mayo (A) Winslow (B) White
(C) F.W. Taylor (D) Chris Argyris (C) Weber (D) Walter
87. Some of the management functions men- 97. The 7’s Framework first appeared in ‘The
tioned by Henry Fayol are Art of Japanese management’ by Richard
(A) Planning (B) Control Pascal and Anthony Athos in
(C) Co-ordination (D) All of these (A) 1981 (B) 1980
88. The most effective way of communication is (C) Both A & B (D) All of these
(A) Written (B) Oral 98. Characteristic’s of formal organisation in-
(C) Both A & B (D) All of these cludes
89. The permanent records for business are (A) Arbitrary structure
(A) Written (B) Business letters (B) Determined objectives and policies
(C) Both A & B (D) All of these (C) Well defined rules and regulations
(D) All of these
90. Who said, direction is telling people what
to do? 99. Characteristics of informal organisation are
(A) Michael E. Porter (B) Dale (A) Spontaneous development
(C) F.W. Taylor (D) All of these (B) Informal authority
91. Achieving one’s potential is what type of (C) Both A & B (D) None of these
need? 100. The new techniques of control which has
(A) Ego Need (B) Self-actualisation emerged are
(C) Both A & B (D) All of these (A) Management audit
92. What is concerned for the good and right for (B) Critical path method
the society? (C) Programme evaluation and review tech-
(A) Ethics (B) Value nique
(C) Both A & B (D) All of these (D) All of these
93. Which need includes the basic human needs 101. The following concept is developed on
of food, clothing and shelter? unitarism, individualism, high commitment
and strategic alignment
(A) Physiological needs
(A) Personnel Management
(B) Self-actualisation
(B) Human Resource Management
(C) Both A & B
(C) Industrial Relations
(D) Personnel Administration
94. The term ________ refers to a specific ad-
ministrative directive prescribing the se- 102. External coordination will be
quential manner in which a repetitive activ- (A) coordination with customers
ity is to be initiated and completed in a goal (B) coordination with government
– oriented manner. (C) coordination with suppliers
(A) Ego Need (B) Self-actualisation (D) all of these
(C) Plan (D) procedure 103. Under mechanism of scientific management,
95. To solve the HR issues, one of the remedy is scientific task setting includes
to emphasis on overall ________ develop- (A) Time study (B) Method study
ment through training and exposure. (C) Motion study (D) All of these
(A) Ego Need (B) Personality 104. Name the following topics that give an idea
(C) Plan (D) All of these about the concept of organising
96. What does decoding mean? (A) Decentralisation
(A) Message interpretation (B) Staffing process
(B) Listening (C) Span of management
(C) Both A & B (D) All of these (D) All of above
105. ________ decisions relate to the day to day (B) Charles Babbage
operations of the enterprise generally taken (C) F.W. Taylor (D) All of these
by middle and lower level management. 115. Gang Boss is related to
(A) Decentralisation (A) Working rule
(B) Operative (B) Speed of different Machines
(C) Span of management (C) Availability of tools and machines
(D) All of these (D) All of these
106. The statement “We sell for Less” is deliber- 116. Communication flow from Lower level to
ately ambiguous, it raises the question; ‘Less upper ones within in an organisation
than what’, this is called as, _______ to com- (A) Vertical Communication
munication.
(B) Downward Communication
(A) Semantic barrier (B) Informal authority
(C) Upward communication
(C) Both A & B (D) All of these
(D) All of these
107. David C. Mc Clelland identified three mo-
117. Following are the steps of organising pro-
tives those are
cess ____________
(A) Affiliation (B) Power
(i) Forming Supportive Objectives,
(B) Achievement (D) All of these
(ii) Delegating to the head the authority nec-
108. Communication is the art of transmitting essary to perform activities,
(A) Information (B) Ideas (iii) Establish organisation objectives,
(C) Attitudes (D) All of these (iv) Identifying and classifying Activities,
109. The communication process begins with Codes :
________ who transmits the message The correct Sequences of these step is
(A) Information (B) Sender (A) (ii) (iv) (i) (iii) (B) (iii) (i) (iv) (ii)
(C) Attitudes (D) All of these (C) (i) (iii) (iv) (ii) (D) (ii) (iii) (i) (iv)
110. What are the movements which play an im- 118. Single use plan (Non recurring) means
portant role in conveying meaning without
(A) Programme
words ?
(B) Budgeting and target
(A) Body (B) Gestures
(C) Project
(C) Attitudes (D) All of these
(D) All of these
111. A ________ communication establishes and
119. Standing plan (Repeated plan) means
builds lasting relationships between people.
(A) Objectives
(A) One way (B) Two way
(B) Policies and Procedure
(C) Strategy and methods
112. _________is defined as a group of person
working together for a common purpose
(A) Group (B) Organisation 120. A _________ is a general statement guide
thinking and decision making and action
in organisation.
113. Who developed the functional organisation? (A) Objectives (B) Policies
(A) Michael E. Porter (C) Strategy (D) All of these
(B) Charles Babbage
121. The ________are also plan but they are more
(C) F.W. Taylor (D) All of these specific and show the sequence of definite
114. The “Functional Foremanship” was given act.
by (A) Objectives (B) Policies
(A) Michael E. Porter (C) Strategy (D) Procedure
122. A ___________ means a specific action to (A) System approach
be taken or not to be taken with respect to (B) Human behaviour approach
situation. (C) Human relation approach
(A) Objectives (B) Rule (D) Process approach
(C) Strategy (D) All of these 131. Which of the following is the type of decen-
123. There are general ___________in action to- tralisation?
wards the attainment of comprehensive ob- (A) Profit centre
jective. (B) Responsibility centre
(A) Budget (B) Tactics (C) Cost and expenses centre
(C) Programme (D) All of these (D) All of these
124. The__________ Means Temporary Endeav- 132. ________ is the extremely narrow view of
our undertaken to create unique product and people who are mental blinder.
services. (A) Tunnel Vision (B) View vision
(A) Budget (B) Tactics (C) Both A & B (D) All of these
(C) Programme (D) All of these
133. The _______ means ensuring the person
125. Narrow span of control results into who is supposed to perform a task actually
(A) Tall structure (B) Flat structure perform it and does so, correctly.
(C) Mechanistic structure (A) Accountability (B) Delegation
(D) All the above (C) Responsibility (D) All of these
126. Hierarchy has been described as the “scalar 134. The _________ of the authority is an impor-
process” by tant managerial practice of getting thing
(A) L.D. White (B) Mooney and Riley done through other to given by sharing the
(C) P.H. Appleby authority with them. It enables the manager
(D) Gullick and Urwick to share their workload to other.
127. __________ sequences of activities under- (A) Accountability (B) Delegation
taken for implementation of the problem and (C) Responsibility (D) All of these
achieving the objective of business enter- 135. The ________is the obligation of the subor-
prise. dinate to perform the assign duty assign by
(A) Budget (B) Tactics the superior.
(C) Programme (D) All of these (A) Accountability (B) Delegation
128. The __________means dividing the large (C) Responsibility (D) All of these
organisation into a smaller flexible, admin- 136. A set of expectation of our behaviour is
istrative unit. (A) Role (B) Authority
(A) Budget (B) Organisation (C) Status (D) All of these
(C) Departmentation (D) All of these 137. The ______or military organisation is sim-
129. The__________ executive reserves the au- plest form in small scale industry. Author-
thority with himself instead of delegating ity flow direct line from superior to subordi-
the authority it to his subordinate and ulti- nate. Every employee knows who is supe-
mately reserve authority. But where he is rior and who issue order.
forced to delegate he may do so by not del- (A) Line authority
egating the authority. (B) Functional organisation
(A) Decentralisation (B) Centralisation (C) Line and staff organisation
(C) Departmentation (D) All of above (D) All of these
130. Which approach emerged from the finding 138. The _________, line staff and functional au-
of Hawthorne experiment thority exist together. It is a limited form of
line authority given to functional experts (C) Span of management
over certain specialised activities under the (D) All of these
supervision of manager belonging to other 147. Which of the following is the Classical
department. Theory of Span?
(A) Line authority (A) Hamilton prescription
(B) Functional organisation (B) Urwick prescription
(C) Line and staff organisation (C) Granicusuicus prescription
(D) All of the above (D) All of these
139. The _________ is organisation in which 148. Which of the following is type of Span of
line organisation make decision and staff Management?
personnel provide support and advice. (A) Wide span (B) Narrow span
(A) Line authority (C) Both A & B (D) All of these
(B) Functional organisation
149. Single Superior Handle large number sub-
(C) Line and staff organisation
ordinate.
(D) All of these
(A) Wide span (B) Narrow span
140. The _________ means is right to take action, (C) Both A & B (D) All of these
utilise organisational resources and exact
150. Type of Narrow Span includes
obedience for subordinate.
(A) Tall span (B) Flat span
(A) Role (B) Authority
(C) Status (D) All of these
151. Small number of employees closely supervi-
141. The __________means a socially defined
sion is
position and rank given to group and group
member. (A) Tall span (B) Flat span
(A) Role (B) Authority (C) Both A & B (D) All of these
(C) Status (D) All of these 152. Chain of command is shorter and the span
of control is wide. The span is
142. The __________is deliberate effort of a man-
ager to put things in order to achieve com- (A) Tall span (B) Flat span
mon objectives. (C) Both A & B (D) All of these
(A) Role (B) Coordination 153. Group decision making techniques is
(C) Cooperation (D) All of these (A) Brainstorming (B) Delphi
143. Types of coordination is (C) Both A & B (D) None of these
(A) Internal (B) External 154. A technique that encourages group members
(C) Vertical and Horizontal to generate as many novel ideas as possible,
(D) All of the above on a given topic without evaluating them is
(A) Brainstorming (B) Delphi technique
144. The ___________ means the voluntary ef-
fort of individual to work together and to (C) Both A & B (D) None of these
help each other. 155. The formal procedure for obtaining the con-
(A) Role (B) Coordination sensus of member of experts through the use
(C) Cooperation (D) All of these of a series of questionnaire.
(A) Brainstorming
145. System approach to coordination is
(B) Delphi technique
(A) Pooled (B) Reciprocal
(C) Both A & B (D) None of these
(C) Sequential (D) All of these
156. Decision making conditions are
146. The number of employee report of superior
is called (A) Certainty (B) Uncertainty
(A) Control (B) Organising (C) Ambiguity (D) All of these
157. Manager here know the goal which they way, to provide synergy and competitive
wish to achieve, but information about al- advantage for the corporation
ternatives and future events is complete (A) Portfolio strategy
(A) Certainty (B) Uncertainty (B) opportunity
(C) Ambiguity (D) All of these (C) Strategic business unit
158. Here, the goal to be achieved or the problem (D) All of the above
to be solved in unclear, alternatives are dif- 166. The_________ plan not anticipate but ac-
ficult to spell out and Information about tive only when problem occur.
outcomes is not available (A) Reactive (B) Functional plan
(A) Certainty (B) Uncertainty (C) Proactive (D) All of these
(C) Ambiguity (D) All of these 167. ______is a distinct business, with its own
159. The_________means that all the information business mission, product line, market share
needed by the decision maker is fully avail- and competitor that can be managed reason-
able. ably of other business within the organisa-
(A) Certainty (B) Uncertainty tion.
(C) Ambiguity (D) All of these (A) Portfolio strategy
160. The________7s frame Shared values, Strat- (B) Opportunity
egy, Structure, System, Style, Staff, Skill is (C) Strategic business unit
given by. (D) All of these
(A) McKinsey’s (B) Elton Mayo 168 . The origination purpose or fundamental
(C) F.W. Taylor (D) All of these reason for existence it an organisation _____
statement states that what it is, why it exist,
161. The_________ represent those skill in which
and the unique contribution it can make.
a company exceeds, excel and/or the key
asset of the firm. (A) Mission (B) Vision
(A) Strength (C) Value (D) All of these
(B) Opportunity & Threats 169. The_____ means widely descriptive image
(C) Both A & B (D) All of these of what company want to be or want to be
known for.
162. The_______ are those areas in which a firm
(A) Mission (B) Vision
does not perform well.
(C) Value (D) All of these
(A) Strength
170. _______ means the set of cherished norms.
(B) Opportunity & threats
(A) Mission (B) Vision
(C) Weakness (D) All of these
163. The ____ are those areas of current and future
circumstances of the environment that might 171. A future target or end result that an organisa-
provide favourable condition of the firm. tion wishes to achieve
(A) Goal (B) Purpose
(A) Strength (B) Opportunity
(C) Mission (D) All of these
(C) Weakness (D) All of these
172. An articulation of the function that a com-
164. The _______ are those areas of current and
pany intends to fulfill through its business
future circumstances of the environment,
which might provide unfavourable condi- (A) Purpose (B) Vision
tion of the firm. (C) Value (D) All of these
(A) Strength (B) Opportunity 173. A condition in which there are major incom-
(C) Threats (D) All of These patibility between the goal of an organisa-
tion member and those of the organisation
165. It pertains to the mix of business unit and
(A) Mission (B) Goal incongruence
products lines that fit together in a logical
174. The process of determining the major objec- 181. It is a graphic decision making tool typically
tives in the organisation and the policies and used to evaluate decision containing a se-
strategies that will govern the acquisition, ries of step is called
use and disposition of resources to achieve (A) Bounded Rationality
these objective (B) Satisfying model
(A) Corporate plan (B) Functional plan (C) Decision Tree (D) All of these
(C) Strategic plan (D) All of these 182. These decision made by manager in their of-
175. It helps firm to achieve competitive advan- ficial or formal capacity, they are aimed at
tage by capitalising on its own strength furthering the interest of the organisation.
(A) Corporate plan (B) Functional plan (A) Basic decision
(C) Strategic (D) All of these (B) Personal decision
176. Decide the most effective use of the resources (C) Organisational decision
already located and developed a mechanism (D) All of the above
to ensure effective implementation of re- 183. Decision to watch television, to study or re-
sources. The plan is tire early is an example of ________decision.
(A) Corporate plan (B) Functional plan Such decision are taken by the manager in
(C) Operational plan (D) All of these their individual capacity these cannot be
177. It is the process by which individual selects delegated.
a course of action among several alternatives (A) Basic decision
to produce a desired result. (B) Personal decision
(A) Decision Making (C) Organisational decision
(B) Routine decision (D) All of the above
(C) Basic Decision 184. The decision that is fairly structured or re-
(D) All of the above curs with some frequency (or both) is called
178. Which of the following are the types of deci- (A) Programmed decision
sion? (B) Organisational decision
(A) Basic & Routine decision (C) Non-programmed decision
(B) Personal & Organisational decision (D) All of the above
(C) Programme & Non-programmed 185. Role of staff in “line and staff” organisation
(D) All of the above is
179. They are unique, one time decision demand- (A) Authoritative (B) Superior
ing large investment, creativeness and good (C) Managerial (D) Advisory
judgement on the part of manager. 186. A decision made in responses to a situation
(A) Basic decision that is unique, is poorly defined and largely
(B) Personal Organisational decision unstructured and influence important con-
(C) Programme & non-programmed sequences of the organisation.
(D) All of these (A) Programmed decision
180. They are repetitive in nature, require little (B) Organisational decision
deliberation and are generally concerned (C) Non-programmed decision
with short term commitments. (D) All of these
(A) Basic decision 187. A concepts that suggest that the ability of
(B) Routine decision manager to be perfectly rational in decision
(C) Programme /non-programmed making is limited by such factor as cogni-
(D) All of the above tive capacity and time constraints.
(A) Bounded Rationality
(B) Organisational decision 195. ________is the process through which ideas
(C) Non-programmed decision or concepts are converted into a form that
(D) All of these can be transmitted to others.
188. It is the process of comparing actual perfor- (A) Communication (B) Decoding
mance with standard and taking any neces- (C) Encoding (D) All of these
sary corrective action 196. _________is the process through which in-
(A) Controlling (B) Organising formation received through communication
(C) Planning (D) All of these is converted back into ideas or concepts.
189. They are established level of quality or quan- (A) Communication (B) Decoding
tity used to guide performance (C) Encoding (D) All of these
(A) Control (B) Organising 197. _______ is specialised or technical language
(C) Standard (D) All of these with a trade profession and cultural group.
190. Which of the following is/are not the types (A) Jargon (B) Decoding
of control (C) Encoding (D) All of these
(A) Feedback control 198. Which of the following is the channel of com-
(B) Concurrent/real time munication?
(C) Feed forward control (A) Vertical Communication
(D) None of these (B) Downward Communication
191. It is the gathering information about com- (C) Lateral/Diagonal Communication
pleted, evaluating that information and tak- (D) All of these
ing steps to improve similar activities in the 199. It is the communication that flows both up
future and down the organisation, usually along
(A) Feedback control formal reporting lines.
(B) Concurrent/real time (A) Vertical Communication
(C) Feed forward control (B) Downward Communication
(D) All of these (C) Lateral/Diagonal Communication
192. Monitoring activities to ensure they are con- (D) All of these
sistent with standard. Take necessary action 200. Communication flow from higher level to
before big damage lower ones within in an organisation
(A) Feedback control (A) Vertical Communication
(B) Concurrent/real time (B) Downward Communication
(C) Feed forward control (C) Lateral/Diagonal Communication
193. Anticipation the problem and there timely 201. It takes place between people on the same
prevention, rather than affect the reaction level of the hierarchy
(A) Feedback control (A) Vertical Communication
(B) Concurrent/real time (B) Downward Communication
(C) Feed forward control (C) Lateral Communication
194. _________ is the process of passing infor- 202. It consists of the message from superior to
mation and understanding, from one per- subordinate
son to another person, usually with the in- (A) Vertical Communication
tent to motivate or influence behaviour. (B) Downward Communication
(A) Communication (B) Planning (C) Upward communication
(C) Organising (D) All of these (D) All of these
203. It occurs between people neither in the same (B) Written Communication
department nor on the same level of the hi- (C) Non verbal Communication
erarchy. (D) All of these
(A) Vertical Communication 210. It refers to the patterns of communication
(B) Downward Communication channel between group members or among
(C) Diagonal Communication position in a organisation structure
(D) All of these (A) Communication network
204. __________is a communication channel (B) Written Communication
that do not adhere to the organisation hier- (C) Non-verbal Communication
archy. (D) All of these
(A) Informal Communication 211. It tries to solve problem by diagnosing them
(B) Downward Communication within a framework of inputs, transforma-
(C) Diagonal Communication tion processes, output and feedback
(D) All of these (A) Scientific management
205. An informal communication network among (B) System Theory
people in an organisation that is not offi- (C) Policy (D) All of these
cially sanctioned by the organisation. 212. Whole is greater than; the sum of its part of a
(A) Informal Communication system is called
(B) Downward Communication (A) Synergy (B) System
(C) Grapevine (C) Sub-System (D) All of these
(D) All of these 213. The part that makes up the whole of a sys-
206. Communication methods or media types. tem is called
(A) Oral or verbal Communication (A) Synergy (B) System
(B) Written Communication (C) Sub-System (D) All of these
(C) Non-verbal Communication 214. A System is considered a _____ if it interact
(D) All of these with its environment.
207. Face–to-Face conversation, group discus- (A) Synergy (B) System
sion telephone, calls and other circum- (C) Open System (D) All of these
stances in which the words are spoken is 215. A System is considered a ________ if it does
used to transmit meaning. not interact with its environment.
(A) Oral or verbal Communication (A) Synergy (B) Closed System
(B) Written Communication (C) Open System (D) All of these
(C) Non verbal Communication
216. ______ means influencing others to act to-
(D) All of these
wards the attainment of a goal.
208. Memos, Letter, report and others circum- (A) Leadership (B) Directing
stances in which the written word is used to (C) Staffing (D) All of these
transmit meaning.
217. Any influence that brings out, directs or
(A) Oral or verbal Communication
maintain goal oriented behaviour
(B) Written Communication
(A) Leadership (B) Motivating
(C) Non verbal Communication
(C) Staffing (D) All of these
(D) All of these
218. The transfer of information and understand-
209. The communication that takes place through
ing from one person to another through
facial expression, body position, eye contact
words, symbols and gestures
and other facial expression is
(A) Leadership (B) Motivating
(A) Oral or verbal Communication
(C) Communication (D) All of these
219. The management function concerned with 229. _________ is the mental ability to coordi-
monitoring employees activities, keeping the nate and integrate the organisation interest.
organisation in track towards its goal, and (A) Technical (B) Human skill
making connection as required (C) Conceptual skill (D) All of these
(A) Leadership (B) Motivating 230. Ensure smooth working of the organisation
(C) Controlling (D) All of these taking into consideration of each and every
220. Which of the following is the skill of an ef- department.
fective manager? (A) Corporate plan (B) Functional plan
(A) Leading skill (B) Organising skill (C) Strategic plan (D) All of these
(C) Controlling skill (D) All of these 231. The ______ plan is based on future antici-
221. Which of the following is the Level of man- pating in nature.
agement? (A) Reactive (B) Functional plan
(A) Top (B) Middle (C) Proactive (D) All of these
(C) Lower (D) All of these 232. The comprehensive plan that outlines the
222. Manager who are responsible for the overall broad objectives of a company as a whole
direction and operation of an organisation and develops plan to achieve those objec-
(A) Top (B) Middle tives.
(C) Lower (D) All of these (A) Corporate plan (B) Functional plan
223. Manager who receive broad, overall strate- (C) Strategic plan (D) All of these
gies and policies from top manager and 233. A written records to what the organisation
translate them into specific goals and plan intends to do, within a time frame.
for first line manager to implement (A) Informal plan (B) Functional plan
(A) Top (B) Middle (C) Formal Plan (D) All of these
(C) Lower (D) All of these 234. A plan that covers many years and affect
224. Manager directly for the production for many departments or division of an
Goods and services organisation in a major way.
(A) Top (B) Middle (A) Long range plan
(C) Lower (D) All of these (B) Intermediate plan
225. A line of Demarcation between various (C) Short range Plan
managerial positions is called (D) All of the above
(A) Level of management 235. A plan that generally covers span of one
(B) Organising years.
(C) Planning (D) All of these (A) Long range plan
226. Who had identified the human, managerial (B) Intermediate plan
and conceptual skill? (C) Short range Plan (D) All of these
(A) Robert Katz (B) Herbert Simon 236. It is planning tool used to predict future en-
(C) Chester Barnard (D) All of these vironmental happening that will influence
227. The activity to use specific knowledge, meth- the operation of the organisation.
ods and technique in performing work (A) Long range plan
(A) Technical (B) Human skill (B) Intermediate plan
(C) Conceptual skill (D) All of these (C) Forecast (D) All of these
228. The ability to understand motivates and get 237. It is making something happen the way it
along with other people is called was planned to happen.
(A) Technical (B) Human skill (A) Control (B) Organising
(C) Conceptual skill (D) All of these (C) Planning (D) All of these
238. Effective supervision is an activity of (B) Its behaviour can’t be predictive
(A) Organisation Function (C) It does not change
(B) Staffing Function (D) All of the above
(C) Direction Function 247. Henry Fayol supports the
(D) Control Function (A) Humanistic approach
239. Consideration is synonymous with (B) Mechanistic approach
(A) Task (B) Relations (C) Organic approach
(C) Style (D) Attitude (D) Scientific management
240. “Focus on social environment” is related to 248. The main focus of human relation theory is
(A) Unity of command on
(B) Human Relation (A) Formal Organisation
(C) Unity of Direction (B) Informal Organisation
(D) Attitude (C) Individual
241. The term “General system theory “owes its (D) Participatory Decision-making
origin to 249. Theory is the formulation of universal prin-
(A) Max Weber (B) F.W. Taylor ciple of organisation
(C) Lundurg Von Bertalanffy (A) Classical Theory
(D) Mary Parker (B) Human relation Theory
242. According to Neo-Classical theory, an (C) Bureaucratic Theory
organisation is (D) Scientific management
(A) A structure with well defined functions 250. A “Letter of credit “is obtained by
(B) A structure with well defined objectives (A) An importer (B) An exporter
(C) A group of people with well defined ob- (C) An indent house (D) None of these
jectives 251. You are the manager of the firm. Which of
(D) A structure with order and objectives the following activities do you initiate first?
rationally (A) Planning (B) Organising
243. Which of the following is not concerned of (C) Staffing (D) Directing
“scientific management”? 252. Identify the principle of F.W.Taylor Scien-
(A) Production (B) Efficiency tific management
(C) Mechanistic Methods (A) Scalar Chain
(D) Rationally (B) MBO techniques
244. Which of the following is considered as the (C) Functional Foremanship
first principle of organisation? (D) Unity of Command
(A) Delegation (B) Co-ordination 253. The process of grouping activities into units
(C) Unity of command for the purpose of administration may be
(D) Supervision referred to as_________.
245. Find the odd one out (A) Departmentation
(A) Human Relation Theory (B) Decentralisation
(B) Informal Functioning (C) Specialisation
(C) Humanistic Theory (D) Coordination
(D) Structural Theory 254. Which of the following provides a guide-
246. The greatest weakness of the informal line to decision making
organisation is (A) Strategy (B) Policy
(A) Its utter instability (C) Procedure (D) Programme
255. “Grapevine” is a type of (b) Max Weber (ii) System approach
(A) Written communication to management
(B) Formal communication (c) Chester (iii) Emphasis in rules
(C) Informal Communication Bernard and regulation
(D) Lateral communication (d) Hugo (iv) Increased produc-
Munsterberg tivity through effi-
256. Match the following :
ciency in produc-
Contributor Organisation theory
tion
(a) F.J. Roethlis- (i) New pattern of
Codes:
berger & Dickson management
(a) ( b) (c) (d)
(b) Elton Mayo (ii) The human side of
(A) (iv) (iii) ( ii) (i)
enterprise
(B) (iii) (iv) (ii) (i)
(c) Douglas (iii) The management
McGregor and worker (C ) (iv) (iii) (i) (ii)
(d) Rensis Likert (iv) The problem of in- (D) (ii) (iii) (iv) (i)
dustrial civilisa- 259. Match the following
tion List-I List-II
Codes: (a) Staff Executives (i) Advisory function
(a) ( b) ( c) ( d) (b) Directing (ii) Manpower Devel-
(A) (ii) (iv) (i) (iii) opment
(B) (iii) (iv) ( ii) (i) (c) Line executives (iii) Guiding function
(C ) (iv) (iii) ( i) (ii) (d) Staffing (iv) Managerial au-
(D) (ii) (iii) ( iv) (i) thority
257. Match the following Codes:
(a) ( b) ( c) ( d)
(Books) (Authors)
(a) Shop (i) Elton Mayo (A) (ii) (iv) ( i) (iii)
management (B) (i) (iii) ( iv) (ii)
(b) Management (ii) Douglas (C ) (iv) (iii) ( i) (ii)
and worker McGregor (D) (ii) (iii) ( iv) (i)
(c) Social problem (iii) Frederick 260. Match the following
of industrial W. Taylor (Management (Sequences of function
civilisation thinkers) advocated by them)
(d) Human side (iv) F.J. Roethlisberger (a) Newman & (i) Organising,
of enterprise summer planning and con-
Codes: trolling
(a) ( b) ( c) ( d) (b) Henry Fayol (ii) Planning,
(A) (ii) (iv) (i) (iii) Organising,
(B) (iii) (iv) (i) (ii) commanding,
(C ) (iv) (iii) (i) (ii) coordinating,
Controlling
(D) (ii) (iii) (iv) (i)
(c) Luther Gullick (iii) Planning,
258. Match the following Organising,
Contributor Organisation theory Staffing, direct-
(a) F.W. Taylor (i) Application of ing, controlling
psychology to in- (d) Koontz & (iv) ‘POSDCORB’
dustry and man- O’Donnell
agement
Codes: Codes:
(a) ( b) ( c) ( d) (a) ( b) ( c) ( d)
(A) (i) (ii) ( iv) (iii) (A) (iv) (iii) (ii) (i)
(B) (i) (iii) ( iv) (ii) (B) (iii) (iv) (ii) (i)
(C ) (iv) (iii) ( i) (ii) (C ) (ii) (iv) (iii) (i)
(D) (ii) (iii) ( iv) (i) (D) (ii) (iii) (iv) (i)
261. A framework that category a firm business 264. Match the following
unit, by the market share that they hold and Contributor Organisation theory
the growth rate of their respective markets. (a) Chester I Bernard (i) Functional fore-
(A) Portfolio strategy manship
(B) BCG Portfolio (b) Max Weber (ii) Acceptance theory
(C) Strategic business unit of authority
(D) All of these (c) F.W. Taylor (iii) Open system
262. Match the following theory
List-I List-II (d) Katz & kahn (iv) Bureaucracy
(a) Grapevine (i) Tool of control Codes:
(b) Unit of (ii) Scientific (a) ( b) ( c) ( d)
Direction management (A) (ii) (iv) (i) (iii)
(c) Time and (iii) Form of (B) (iii) (iv) (ii) (i)
motion study communication (C ) (iv) (iii) (i) (ii)
(d) Budget (iv) Management prin- (D) (ii) (iv) (i) (iii)
ciple 265. Match the following
Codes: List -I List-II
(a) ( b) ( c) ( d) (a) Frederick (i) Scientific
(A) (iv) (iii) ( ii) (i) Herzberg management
(B) (i) (iv) ( ii) (iii) (b) F. W. Taylor (ii) Two factor theory
(C ) (iii) (iv) ( ii) (i) (c) Blake & (iii) Need Hierarchy
(D) (ii) (iii) ( iv) (i) Mouton
263. Match the following (d) Abraham (iv) Managerial Grid
List-I List-II Maslow
(a) Forecasting (i) Controlling Codes:
(b) Communication (ii) Planning (a) ( b) ( c) ( d)
(c) Selection of (iii) Leading (A) (iii) (iv) (i) (ii)
manager (B) (iii) (iv) (ii) (i)
(d) Established (iv) Staffing (C ) (i) (ii) (iii) (iv)
performance (D) (ii) (iv) (i) (iii)
standard
ANSWER KEY
1. (A) 2. (C) 3. (C) 4. (A) 5. (D) 6. (A) 7. (D) 8. (A) 9. (A) 10. (B)
11. (D) 12. (D) 13. (D) 14. (A) 15. (B) 16. (A) 17. (D) 18. (D) 19. (A) 20. (D)
21. (A) 22. (A) 23. (B) 24. (B) 25. (A) 26. (B) 27. (B) 28. (A) 29. (D) 30. (D)
31. (C) 32. (A) 33. (A) 34. (A) 35. (D) 36. (D) 37. (D) 38. (D) 39. (A) 40. (D)
41. (B) 42. (D) 43. (D) 44. (A) 45. (D) 46. (A) 47. (A) 48. (A) 49. (C) 50. (B)
51. (C) 52. (C) 53. (C) 54. (C) 55. (A) 56. (A) 57. (A) 58. (C) 59. (B) 60. (A)
61. (D) 62. (C) 63. (B) 64. (A) 65. (B) 66. (C) 67. (A) 68. (A) 69. (A) 70. (B)
71. (D) 72. (D) 73. (B) 74. (B) 75. (A) 76. (B) 77. (A) 78. (D) 79. (B) 80. (B)
81. (D) 82. (A) 83. (D) 84. (A) 85. (D) 86. (A) 87. (D) 88. (A) 89. (B) 90. (B)
91. (B) 92. (A) 93. (A) 94. (D) 95. (B) 96. (C) 97. (A) 98. (D) 99. (C) 100. (D)
101. (B) 102. (D) 103. (D) 104. (D) 105. (B) 106. (A) 107. (D) 108. (D) 109. (B) 110. (B)
111. (B) 112. (B) 113. (C) 114. (C) 115. (C) 116. (C) 117. (B) 118. (D) 119. (D) 120. (B)
121. (D) 122. (B) 123. (C) 124. (A) 125. (A) 126. (D) 127. (C) 128. (C) 129. (B) 130. (C)
131. (D) 132. (A) 133. (A) 134. (B) 135. (C) 136. (A) 137. (A) 138. (B) 139. (C) 140. (B)
141. (C) 142. (B) 143. (D) 144. (C) 145. (C) 146. (C) 147. (C) 148. (C) 149. (A) 150. (C)
151. (A) 152. (B) 153. (C) 154. (A) 155. (B) 156. (D) 157. (B) 158. (C) 159. (A) 160. (A)
161. (A) 162. (C) 163. (B) 164. (C) 165. (A) 166. (A) 167. (C) 168. (A) 169. (B) 170. (C)
171. (A) 172. (A) 173. (B) 174. (A) 175. (C) 176. (C) 177. (A) 178. (D) 179. (A) 180. (B)
181. (C) 182. (C) 183. (B) 184. (A) 185. (D) 186. (C) 187. (A) 188. (A) 189. (C) 190. (D)
191. (A) 192. (B) 193. (C) 194. (A) 195. (C) 196. (B) 197. (A) 198. (D) 199. (A) 200. (B)
201. (C) 202. (B) 203. (C) 204. (A) 205. (C) 206. (D) 207. (A) 208. (B) 209. (C) 210. (A)
211. (B) 212. (A) 213. (C) 214. (C) 215. (B) 216. (A) 217. (B) 218. (C) 219. (C) 220. (D)
221. (D) 222. (A) 223. (B) 224. (C) 225. (A) 226. (A) 227. (A) 228. (B) 229. (C) 230. (B)
231. (C) 232. (A) 233. (C) 234. (A) 235. (C) 236. (C) 237. (A) 238. (C) 239. (B) 240. (B)
241. (C) 242. (C) 243. (C) 244. (B) 245. (D) 246. (A) 247. (B) 248. (C) 249. (A) 250. (A)
251. (A) 252. (C) 253. (A) 254. (B) 255. (C) 256. (B) 257. (B) 258. (A) 259. (B) 260. (A)
261. (B) 262. (C) 263. (C) 264. (D) 265. (C)
UNIT
PERSONNEL
MANAGEMENT
MEANING AND DEFINITION OF PERSONNEL MANAGEMENT

Personnel management can be defined as obtaining, using and maintaining a satisfied workforce. It
is a significant part of management concerned with employees at work and with their relationship
within the organisation.
Administrative discipline of hiring and developing employees so that they become more valuable
to the organisation it includes–
(1) Conducting job analyses
(2) Planning personnel needs and recruitment.
(3) Selecting the right people for the job.
(4) Orienting and training
(5) Determining and managing wages and salaries.
(6) Providing benefits and incentives
(7) Appraising performance
(8) Resolving disputes
(9) Communicating with all employees at all levels.
According to Flippo, “Personnel management is the planning, organising, compensation, integration
and maintenance of people for the purpose of contributing to organisational, individual and societal
goals.”
According to Breach, “Personnel Management is that part which is primarily concerned with human
resource of organisation.”
Nature of Personnel Management
 Personnel management includes the function of employment, development and compensation-
These functions are performed primarily by the personnel management in consultation with
other departments.
 Personnel management is an extension to general management. It is concerned with promoting
and stimulating competent work force to make their fullest contribution to the concern.
 Personnel management exists to advice and assist the line managers in personnel matters.
Therefore, personnel department is a staff department of an organisation.
(79)
m Personnel management lays emphasize on action rather than making lengthy schedules,
plans, and work methods. The problems and grievances of people at work can be solved more
effectively through rationale personnel policies.
m It is based on human orientation. It tries to help the workers to develop their potential fully to
the concern.
m It also motivates the employees through it’s effective incentive plans so that the employees
provide fullest co-operation.
m Personnel management deals with human resources of a concern. In context to human
resources, it manages both individual as well as blue- collar workers.
Role of Personnel Managers

Personnel manager is the head of personnel department. He performs both managerial and operative
functions of management. His role can be summarised as :
1. Personnel manager provides assistance to top management – The top management are the
people who decide and frame the primary policies of the concern. All kinds of policies related
to personnel or workforce can be framed out effectively by the personnel manager.
2. He advises the line manager as a staff specialist – Personnel manager acts like a staff advisor
and assists the line managers in dealing with various personnel matters.
3. As a counsellor – As a counsellor, personnel manager attends problems and grievances of
employees and guides them. He tries to solve them in best of his capacity.
4. Personnel manager acts as a mediator – He is a linking pin between management and workers.
5. He acts as a spokesman – Since he is in direct contact with the employees, he is required to
act as representative of organisation in committees appointed by government. He represents
company in training programmes.
Functions of Personnel Management

Personnel management involves two categories of function:
Function of personnel department
(A) Managerial Functions (B) Operative Functions

1. Planning 1. Procurement
2. Organising 2. Development
3. Directing 3. Compensation
4. Co-ordinating 4. Integration
5. Controlling 5. Maintenance
(A) Managerial Functions
The managerial function includes activities like planning, organising, co-ordinating, directing and
controlling the employees. They are performed by all type of managers including personnel managers.
1. Planning. Planning is a fundamental function of personnel management. It involves deciding
in advance what is to be done, where, how and by whom it is to be done. While planning, an
office manager projects a course of action for the future aimed at achieving desired results for
the organisation as a whole and each department within it. Thus merely ascertaining the
future is not planning till it is followed by making provision for it. Planning then is just a
rational approach to the future. A plan is a pre-determined course of action to accomplish
the set objectives, it specifies what and how operative personnel functions are to be performed.
Personnel Management 81
2. Organising. Organising calls for grouping of personnel activities, assignment of different
activities to different individuals. It is used in the sense of an enterprise or a business unit. As
a matter of fact, it is referred to as the social system encompassing all formal relations and yet
another useful way of looking at organisation is to consider it as an essential function of
personnel management. In operational sense, organisation may be considered as consisting of
division of work among people and co-ordination of their activities towards some objectives.
3. Directing. It is the managerial function consisting of all those activities which are concerned
directly with guiding, influencing and supervising the subordinates in their jobs. It is thus
performance oriented. Some elements of the directing function of personnel management are:
(a) Supervising the work of subordinates to ensure that their performance conforms to plan.
(b) Maintaining discipline and rewarding effective performance.
(c) Issuing orders and instructions.
(d) Motivating the subordinates to direct their behavior in a desired pattern.
Directing involves managing managers, managing workers and the work through the means
of motivation, proper leadership, effective communication as well as co-ordination. A personnel
manager must develop the ability to command and direct others.
4. Co-ordination. Co-ordination is concerned with harmonious and unified action directed
towards common objectives. It ensures that all groups and persons work efficiently, economically
and in harmony. Person-to-person communication is most effective for co-ordination.
5. Controlling. As a function of management means the measurement and correction of performance
of activities of subordinates in order to make sure that enterprise objectives and plans devised
to attain them are accomplished. Control thus consists in knowing the extent to which actions
are in conformity with plans adopted and instructions issued so that errors and deviations are
reported and appropriate corrective actions taken. Remedial action may result in alteration of
plans, change in the organisation structure and modification in the staffing process.
(B) Operative Functions
Operative Functions
Procurement Development Compensation Integration Maintenance
m Job Analysis m Performance m Job Evaluation m Motivation m Health

m Human Resource Appraisal m Wage and salary m Job satis- m Safety
Planning m Training Administration faction m Social
m Recruitment m Executive m Bonus and m Grievance Security
m Selection Development Incentives Redressal m Welfare
m Placement m Career m Payroll m Collective schemes
m Induction Planning and Bargaining m Personnel
m Transfer Development m Conflict Records
m Promotion Management m Personal
m Separation m Participation of Research
employees m Personel
m Discipline Audit
The operative function essentially belongs to such activities concerned with procuring, developing
compensating, utilising and maintaining an efficient work force.
1. Procurement. Procurement means recruiting the required number of employees with due
qualification and experience keeping in view the importance of achieving the objectives set
before the organisation. It is mainly concerned with hiring the right people, in the right place,
at the right time. It is concerned with the obtaining of the proper kind and number of personnel
necessary to accomplish necessary organisation goals. The function is related to subjects like
the determination of manpower requirements and their recruitment, selection and placement.
2. Development. Development means activities meant to increase the efficiency and skills of
the workers through training and education of employees. It includes activities like training,
seminars, group discussions, education etc. After the personnel have been obtained, it is
necessary to develop them. Development implies the increase of skill, through training, that
is necessary for proper job performance. This aspect of personnel function has acquired great
importance even in our country during the last quarter of a century or so due to greater use of
technology in every department of a business enterprise. Development function will be
influenced by numerous factors, like induction of new machines, promotions and transfers.
3. Compensation. This function can be defined as the adequate and equitable remuneration of
personnel for their contributions to organisation objectives. In developed countries,
compensation cannot be described as a great motivating force as strong as it is in less
developed countries. Compensating remains one of the basic functions of personnel
management. A proper wage system takes into consideration a number of factors and subjects
like job evaluation, wage policies, wage systems and wage incentive schemes.
4. Integration. It can be defined as an attempt to effect a reasonable reconciliation of individual
and organisational interests. Integration must follow the above three functions of procurement,
development and compensation. The function of integration relates to problems of
communication, informal organisation and trade unions.
5. Maintenance. Maintenance refers to sustaining and improving the conditions that have been
established. This would thus include the above functions. However, it must be pointed out
that it would be necessary to take care of physical well-being and mental well-being of the
employees. In order to accomplish this objective, it would be desirable that research must
continue in every direction so that the function of maintenance is performed properly.
Maintaining Aims at maintaining good working condition for the employees. It includes
preparation and implementation of health schemes, safety systems etc.
STRUCTURE OF PERSONNEL DEPARTMENT

In an organisation, personnel department is a staff department .but within personnel department
itself, the structure is usually of the line type. Personnel manager, being head of the department, has
a line authority within the department. Status of the personnel department in the total organisation
structure depends on whether a unit is small or large.
1. Organisation Structure of Personnel Department in Small Enterprise. By small enterprise
is meant which employs less than one thousands employees. In such enterprises personnel
department may or may not exist. Services of outsider who specialise in maintaining accounts
and records relating to provident fund, pension and other statutory requirement are retained
for fee .Earlier, personnel as an activity was seen as necessary but unimportant part of the
organisation. Fortunately the things have changed for the better status of the personnel
department has improved enormously over the years. An idea of the personnel department
in small enterprises can be drawn of the following :
Owner/Manager
Production manager Finance manager Office manager Account manager

Personnel Assistant
Personnel department in Small scale unit
2. Organisation Structure of Personnel Department In Large Enterprise. A large scale
enterprises will have a manager /director heading the personnel department his status will
equal to that of any executive The following figure shows the structure.
The arrangement
Chairman /Managing Director
Director production Director Finance Director Personnel Director Marketing Director R & D
Personnel department in large scale unit
3. Personnel Department in Line Organisation. In line organisation there is uninterrupted line
of authority and responsibility running through the management hierarchy. Line relationship
generally exist between a superior and a subordinate manager identified as line are not subject
to command staff personnel. In a case of disagreement between line and staff, line manager
has right to make final operating decisions.
4. Personnel Department In Functional Organisation. In functional structures, all activities in
the company are grouped according to certain functions like productions, marketing, finance,
personnel etc. Each function is put under the charge of functional specialist. Functional
authority is advisory. Which means that the functional specialist recommends action or
alternative action to line managers.
5. Personnel Department In Line And Staff Organisation. Large enterprises generally have
organisation structure with both line and staff executives. Line and staff structure combines
the advantages of both line organisation and functional organisation. Under this system, staff
positions are attached to line executive’s .personnel department provides advice and assistance
on personnel matter to all departments without undermining unity of command.
Line and Staff Organization

Line and staff organisation is a modification of line organisation and it is more complex than line
organisation. According to this administrative organisation, specialised and supportive activities
are attached to the line of command by appointing staff supervisors and staff specialists who are
attached to the line authority. The power of command always remains with the line executives and
staff supervisors guide, advice and counsel the line executives. Personal Secretary to the Managing
Director is a staff official.
Managing Director
Production Manageer Marketing Manager Finance Manager
Plant Supervisor Market Supervisor Chief Assistant
Foreman Salesman Accountant
Features of Line and Staff Organisation

1. There are two types of staff :
a. Staff Assistants. P.A. to Managing Director, Secretary to Marketing Manager.
b. Staff Supervisor. Operation Control Manager, Quality Controller, PRO
2. Line and Staff Organisation is a compromise of line organisation. It is more complex than line
concern.
3. Division of work and specialisation takes place in line and staff organisation.
4. The whole organisation is divided into different functional areas to which staff specialists are
attached.
5. Efficiency can be achieved through the features of specialisation.
6. There are two lines of authority which flow at one time in a concern :
a. Line Authority b. Staff Authority
7. Power of command remains with the line executive and staff serves only as counsellors.
Merits of Line and Staff Organisation

1. Relief to line of executives. In a line and staff organisation, the advice and counselling which is
provided to the line executives divides the work between the two. The line executive can concen-
trate on the execution of plans and they get relieved of dividing their attention to many areas.
2. Expert advice. The line and staff organisation facilitates expert advice to the line executive at
the time of need. The planning and investigation which is related to different matters can be
done by the staff specialist and line officers can concentrate on execution of plans.
3. Benefit of Specialisation. Line and staff through division of whole concern into two types of
authority divides the enterprise into parts and functional areas. This way every officer or
official can concentrate in its own area.
4. Better co-ordination. Line and staff organisation through specialisation is able to provide
better decision making and concentration remains in few hands. This feature helps in bringing
coordination in work as every official is concentrating in their own area.
5. Benefits of Research and Development. Through the advice of specialised staff, the line
executives get time to execute plans by taking productive decisions which are helpful for a
concern. This gives a wide scope to the line executive to bring innovations and go for research
work in those areas. This is possible due to the presence of staff specialists.
6. Training. Due to the presence of staff specialists and their expert advice serves as ground for
training to line officials. Line executives can give due concentration to their decision making.
This in itself is a training ground for them.
7. Balanced decisions. The factor of specialisation which is achieved by line staff helps in bringing
coordination. This relationship automatically ends up the line official to take better and
balanced decision.
8. Unity of action. Unity of action is a result of unified control. Control and its affectivity take
place when co-ordination is present in the concern. In the line and staff authority all the
officials have got independence to make decisions. This serves as effective control in the whole
enterprise.
Demerits of Line and Staff Organisation

1. Lack of understanding. In a line and staff organisation, there are two authority flowing at one
time. This results in the confusion between the two. As a result, the workers are not able to
understand as to who is their commanding authority. Hence the problem of understanding
can be a hurdle in effective running.
2. Lack of sound advice. The line official get used to the expertise advice of the staff. At times the
staff specialist also provides wrong decisions which the line executive has to consider. This
can affect the efficient running of the enterprise.
3. Line and staff conflicts. Line and staff are two authorities which are flowing at the same
time. The factors of designations, status influence sentiments which are related to their
relation, can pose a distress on the minds of the employees. This leads to minimising of co-
ordination which hampers a concern’s working.
4. Costly. In line and staff concern, the concerns have to maintain the high remuneration of
staff specialist. This proves to be costly for a concern with limited finance.
5. Assumption of authority. The power of concern is with the line official but the staff dislikes
it as they are the one more in mental work.
6. Staff steals the show. In a line and staff concern, the higher returns are considered to be a
product of staff advice and counselling. The line officials feel dissatisfied and a feeling of
distress enters a concern. The satisfaction of line officials is very important for effective results.
Job Analysis
Job analysis is primary tool in personnel management. In this method, a personnel manager tries to
gather, synthesise and implement the information available regarding the workforce in the concern.
A personnel manager has to undertake job analysis so as to put right man on right job.
Job analysis serves the following purposes :
(a) Job analysis provides a scientific basis for proper recruitment and selection of personnel.
(b) It helps in proper evaluation of a job.
(c) It helps in placing the right person on the right job.
(d) Job analysis helps in improving the design and methods of jobs.
(e) Job analysis facilitates training and development of employees by identifying the abilities
required for a job.
There are two outcomes of job analysis :
1. Job description
2. Job specification
Job Description and Job Specification

Job Analysis is a primary tool to collect job-related data. The process results in collecting and
recording two data sets including job description and job specification. Any job vacancy can not be
filled until and unless HR manager has these two sets of data. It is necessary to define them accurately
in order to fit the right person at the right place and at the right time. This helps both employer and
employee understand what exactly needs to be delivered and how. Both job description and job
specification are essential parts of job analysis information. Writing them clearly and accurately
helps organisation and workers cope with many challenges while onboard.
Though preparing job description and job specification are not legal requirements yet play a
vital role in getting the desired outcome. These data sets help in determining the necessity, worth
and scope of a specific job.
Job Description
Job description includes basic job-related data that is useful to advertise a specific job and attract a
pool of talent. It includes information such as job title, job location, reporting to and of employees,
job summary, nature and objectives of a job, tasks and duties to be performed, working conditions,
machines, tools and equipments to be used by a prospective worker and hazards involved in it.
Purpose of Job Description
m The main purpose of job description is to collect job-related data in order to advertise for a
particular job. It helps in attracting, targeting, recruiting and selecting the right candidate for
the right job.
m It is done to determine what needs to be delivered in a particular job. It clarifies what employees
are supposed to do if selected for that particular job opening.
m It gives recruiting staff a clear view what kind of candidate is required by a particular
department or division to perform a specific task or job.
It also clarifies who will report to whom.
Job Specification
Also known as employee specifications, a job specification is a written statement of educational
qualifications, specific qualities, level of experience, physical, emotional, technical and communication
skills required to perform a job, responsibilities involved in a job and other unusual sensory demands.
It also includes general health, mental health, intelligence, aptitude, memory, judgment, leadership
skills, emotional ability, adaptability, flexibility, values and ethics, manners and creativity, etc.
Purpose of Job Specification
m Described on the basis of job description, job specification helps candidates analyze whether
are eligible to apply for a particular job vacancy or not.
m It helps recruiting team of an organisation understand what level of qualifications, qualities
and set of characteristics should be present in a candidate to make him or her eligible for the
job opening.
m Job Specification gives detailed information about any job including job responsibilities, desired
technical and physical skills, conversational ability and much more.
m It helps in selecting the most appropriate candidate for a particular job.
Job description and job specification are two integral parts of job analysis. They define a job
fully and guide both employer and employee on how to go about the whole process of recruitment
and selection. Both data sets are extremely relevant for creating a right fit between job and talent,
evaluate performance and analyze training needs and measuring the worth of a particular job.
General and Specific Purpose of Job Description
Job description is all about collecting and recording basic job-related data that includes job title, job
location, job summary, job duties, reporting information, working conditions, tools, machines and
equipments to be used and hazards and risks involved in it. A job description may or may not have
specific purpose. It depends on what HR managers want to determine and what is the objective of
conducting the process of job analysis. Job Description is a summary of job analysis findings that
helps managers determine what an employee is supposed to do when onboard.
The purpose of job description depends on the level of details the job findings include. Job
description carried for general purpose typically involves job identification (title, designation,
location) and a statement of duties and functions of a prospective or existing employee. A specifically
carried job description includes detailed information about the kind of job, how it is supposed to be
performed and what is expected to be delivered. Let’s discuss the general and specific purpose of
conducting a job description process.
Purpose of Job Analysis
Job Analysis plays an important role in recruitment and selection, job evaluation, job designing, deciding
compensation and benefits packages, performance appraisal, analyzing training and development
needs, assessing the worth of a job and increasing personnel as well as organisational productivity.
m Recruitment and Selection. Job Analysis helps in determining what kind of person is required
to perform a particular job. It points out the educational qualifications, level of experience
and technical, physical, emotional and personal skills required to carry out a job in desired
fashion. The objective is to fit a right person at a right place.
m Performance Analysis. Job analysis is done to check if goals and objectives of a particular
job are met or not. It helps in deciding the performance standards, evaluation criteria and
individual’s output. On this basis, the overall performance of an employee is measured and
he or she is appraised accordingly.
m Training and Development. Job Analysis can be used to assess the training and development
needs of employees. The difference between the expected and actual output determines the
level of training that need to be imparted to employees. It also helps in deciding the training
content, tools and equipments to be used to conduct training and methods of training.
m Compensation Management. Of course, job analysis plays a vital role in deciding the pay
packages, extra perks, benefits, fixed and variable incentives of employees. After all, the pay
package depends on the position, job title, duties and responsibilities involved in a job. The
process guides HR managers in deciding the worth of an employee for a particular job
opening.
m Job designing and Redesigning. The main purpose of job analysis is to streamline the human
efforts and get the best possible output. It helps in designing, redesigning, enriching, evaluating
and also cutting back and adding the extra responsibilities in a particular job. This is done
to enhance the employee satisfaction while increasing the human output. Therefore, job
analysis is one of the most important functions of an HR manager or department. This helps
in fitting the right kind of talent at the right place and at the right time.
Job Analysis Process

m Identification of Job Analysis Purpose. Well any process is futile until its purpose is not
identified and defined. Therefore, the first step in the process is to determine its need and
desired output. Spending human efforts, energy as well as money is useless until HR managers
don’t know why data is to be collected and what is to be done with it.
m Who Will Conduct Job Analysis. The second most important step in the process of job analysis
is to decide who will conduct it. Some companies prefer getting it done by their own HR
department while some hire job analysis consultants. Job analysis consultants may prove to
be extremely helpful as they offer unbiased advice, guidelines and methods. They don’t have
any personal likes and dislikes when it comes to analyze a job.
m How to Conduct the Process. Deciding the way in which job analysis process needs to be
conducted is surely the next step. A planned approach about how to carry the whole process
is required in order to investigate a specific job.
m Strategic Decision Making. Now is the time to make strategic decision. It’s about deciding
the extent of employee involvement in the process, the level of details to be collected and
recorded, sources from where data is to be collected, data collection methods, the processing
of information and segregation of collected data.
m Training of Job Analyst. Next is to train the job analyst about how to conduct the process
and use the selected methods for collection and recoding of job data.
m Preparation of Job Analysis Process. Communicating it within the organisation is the next
step. HR managers need to communicate the whole thing properly so that employees offer
their full support to the job analyst. The stage also involves preparation of documents,
questionnaires, interviews and feedback forms.
m Collecting job Data. Next is to collect job-related data including educational qualifications
of employees, skills and abilities required to perform the job, working conditions, job activities,
reporting hierarchy, required human traits, duties and responsibilities involved and employee
behaviour.
m Documentation, Verification and Review. Proper documentation is done to verify the
authenticity of collected data and then review it. This is the final information that is used to
describe a specific job.
m Developing Job Description and Job Specification. Now is the time to segregate the collected
data in to useful information. Job Description describes the roles, activities, duties and
responsibilities of the job while job specification is a statement of educational qualification,
experience, personal traits and skills required to perform the job. Thus, the process of job
analysis helps in identifying the worth of specific job, utilising the human talent in the best
possible manner, eliminating unneeded jobs and setting realistic performance measurement
standards.
Job analysis is mainly and essentially the data collection process. The information
can be obtained in one of the following ways :
1. Observation Method. A job analyst observes an employee and records all his performed and
non-performed task, fulfilled and un-fulfilled responsibilities and duties, methods, ways and
skills used by him or her to perform various duties and his or her mental or emotional ability
to handle challenges and risks. However, it seems one of the easiest methods to analyze a
specific job but truth is that it is the most difficult one. Why? Let’s Discover. It is due to the
fact that every person has his own way of observing things. Different people think different
and interpret the findings in different ways. Therefore, the process may involve personal
biasness or likes and dislikes and may not produce genuine results. This error can be avoided
by proper training of job analyst or whoever will be conducting the job analysis process.
This particular method includes three techniques: direct observation, Work Methods Analysis
and Critical Incident Technique. The first method includes direct observation and recording
of behaviour of an employee in different situations. The second involves the study of time
and motion and is specially used for assembly-line or factory workers. The third one is about
identifying the work behaviours that result in performance.
2. Interview Method. In this method, an employee is interviewed so that he or she comes up
with their own working styles, problems faced by them, use of particular skills and techniques
while performing their job and insecurities and fears about their careers.
This method helps interviewer know what exactly an employee thinks about his or her own
job and responsibilities involved in it. It involves analysis of job by employee himself. In order
to generate honest and true feedback or collect genuine data, questions asked during the
interview should be carefully decided. And to avoid errors, it is always good to interview
more than one individual to get a pool of responses. Then it can be generalised and used for
the whole group.
3. Questionnaire Method. Another commonly used job analysis method is getting the
questionnaires filled from employees, their superiors and managers. However, this method
also suffers from personal biasness. A great care should be taken while framing questions for
different grades of employees.
In order to get the true job-related info, management should effectively communicate it to the
staff that data collected will be used for their own good. It is very important to ensure them
that it won’t be used against them in anyway. If it is not done properly, it will be a sheer
wastage of time, money and human resources.
These are some of the most common methods of job analysis. However, there are several other
specialised methods including task inventory, job element method, competency profiling,
technical conference, threshold traits analysis system and a combination of these methods.
While choosing a method, HR managers need to consider time, cost and human efforts
included in conducting the particular method.
4. Records. Personnel department maintain the records of the facts regarding job and the job
holder’s .The analyst collect the information from the records maintained by the personnel
department. This method is also not free from defects. Certain information such as supervisor
workers relationship, toll and accessories used and work conditions are not made available
from records and hence complete information about work and worker cannot be obtained by
this technique.
5. Critical incidents. In this method, job holder are asked to describe incidents concerning the
job based on the past experiences. The incidents so collected are analysed and classified
according to the job areas described. A fairly clear picture of actual job requirement can be
obtained by distinguishing between effective and ineffective behaviour of the job .The analyst
requires the high degree of skill to analyses the content of descriptions given by the workers.
Quantitative Methods
1. Position Analysis Questionnaire Model. PAQ represents Position Analysis Questionnaire.
This well-known and commonly used technique is used to analyze a job by getting the
questionnaires filled by job incumbents and their superiors. Designed by a trained and
experienced job analyst, the process involves interviewing the subject matter experts and
employees and evaluating the questionnaires on those bases. The PAQ contain 194 items,
each of which represent a basic elements that may or may not play an important role on the
job. The job analyst decided Whether each item play a role on the job, if so to that extent.
194 job elements covered by PAQ are grouped into six section.
(i) Information input (ii) Mental processes
(iii) Work output (iv) Relationship
(v) Job context (vi) Other job characteristics
2. Management position analysis questionnaire (MPAQ). MPAQ is a standardised instrument
designed by specifically for use in analysing managerial jobs. The 274 items questionnaire
contains 15 sections. it would take 2 ½ hours to complete the questionnaire. In most cases the
respondent are asked to state how each item is to the positions
3. Functional Job Analysis Model. FJA is a worker oriented job analysis techniques that
attempts to describe the whole person on the job. Its tries to examine the fundamental
components of data, people and thing. Functional Job Analysis helps in collecting and
recording job-related data to a deeper extent. It is used to develop task-related statements.
Developed by Sidney Fine and his colleagues, the technique helps in determining the
complexity of duties and responsibilities involved in a specific job. This work-oriented
technique works on the basis of relatedness of job-data where complexity of work is
determined on a scale of various scores given to a particular job. The lower scores represent
greater difficulty.
Job Analysis Tools

Job Analysis supports all other management activities including recruitment and selection, training
and development need analysis, performance analysis and appraisal, job evaluation, job rotation,
enrichment and enlargement, a right job-individual fit creation and regulation of entry and exit of
talent in an organisation. The process is the basis of all these important management activities,
therefore, requires solid ground preparation. A properly performed job analysis is adequate for laying
strong organisation foundation.
There are various tools and techniques such as O’Net model, PAQ model, FJA model, F-JAS model
and competency model that help HR managers to develop genuine job description and job
specification data. Though not very new but these specialised tools and techniques are used by
only a few of very high profile organisations. Not very common in use but once understood, these
systematic approaches prove to be extremely useful for measuring the worth of any job in an
organisation.
m O’Net Model. The beauty of this model is that it helps managers or job analysts in listing
job-related data for a very large number of jobs simultaneously. It helps in collecting and
recording basic and initial data including educational requirements, physical requirements
and mental and emotional requirements to some extent. It also links the level of compensation
and benefits, perks and advantages to be offered to a prospective candidate for a specific job.
m Functional Job Analysis Model. FJA stands for Functional Job Analysis helps in collecting
and recording job-related data to a deeper extent. It is used to develop task-related statements.
Developed by Sidney Fine and his colleagues, the technique helps in determining the
complexity of duties and responsibilities involved in a specific job. This work-oriented
technique works on the basis of relatedness of job-data where complexity of work is
determined on a scale of various scores given to a particular job. The lower scores represent
greater difficulty.
m Position Analysis Questionnaire Model. PAQ represents Position Analysis Questionnaire.
This well-known and commonly used technique is used to analyze a job by getting the
questionnaires filled by job incumbents and their superiors. Designed by a trained and
experienced job analyst, the process involves interviewing the subject matter experts and
employees and evaluating the questionnaires on those bases.
m Fleishman Job Analysis System Model. Representing Fleishman Job Analysis System, it is a
basic and generic approach to discover common elements in different jobs including verbal
abilities, reasoning abilities, idea generation, quantitative abilities, attentiveness, spatial
abilities, visual and other sensory abilities, manipulative abilities, reaction time, speed analysis,
flexibility, emotional characteristics, physical strength, perceptual abilities, communication
skills, memory, endurance, balance, coordination and movement control abilities.
m Competency Model. This model talks about the competencies of employees in terms of
knowledge, skills, abilities, behaviors, expertise and performance. It also helps in
understanding what a prospective candidate requires at the time of entry in an organisation
at a particular designation in a given work environment and schedule. The model also
includes some basic elements such as qualifications, experience, education, training,
certifications, licenses, legal requirements and willingness of a candidate.
m Job Scan. This technique defines the personality dynamics and suggests an ideal job model.
However, it does not discuss the individual competencies such as intellect, experience or
physical and emotional characteristics of an individual required to perform a specific job.
Different tools can be used in different situation. Selection of an ideal job analysis tool depends
upon job analysis needs and objectives and amount of time and resources.
Advantages of Job Analysis
Advantages of Job Analysis
Provides with First Hand Job-Related Information
Helps in Creating Right Job-Employee Fit
Helps in Establishing Effective Hiring Strategies
Guides through Performance Evaluation and Appraisal Process
Helps in Analysing Training & Development Needs
Helps in Deciding Compensation & Benefits
m Provides First Hand Job-Related Information. The job analysis process provides with valuable
job-related data that helps managers and job analyst the duties and responsibilities of a
particular job, risks and hazards involved in it, skills and abilities required to perform the
job and other related info.
m Helps in Creating Right Job-Employee Fit. This is one of the most crucial management
activities. Filling the right person in a right job vacancy is a test of skills, understanding and
competencies of HR managers. Job Analysis helps them understand what type of employee
will be suitable to deliver a specific job successfully.
m Helps in Establishing Effective Hiring Strategies. Who is to be filled where and when? Who to
target and how for a specific job opening? Job analysis process gives answers to all these
questions and helps managers in creating, establishing and maintaining effective hiring
practices.
m Guides through Performance Evaluation and Appraisal Processes. Job Analysis helps
managers evaluating the performance of employees by comparing the standard or desired
output with delivered or actual output. On these bases, they appraise their performances.
The process helps in deciding whom to promote and when. It also guides managers in
understanding the skill gaps so that right person can be fit at that particular place in order to
get desired output.
m Helps in Analyzing Training & Development Needs. The process of job analysis gives
answer to following questions:
n Who to impart training
n When to impart training
n What should be the content of training
n What should be the type of training: behavioural or technical
n Who will conduct training
m Helps in Deciding Compensation Package for a Specific Job. A genuine and unbiased process
of job analysis helps managers in determining the appropriate compensation package and
benefits and allowances for a particular job. This is done on the basis of responsibilities and
hazards involved in a job.
Disadvantages of Job Analysis
Disadvantages of Job Analysis
Time Consuming
May involve Biasness
Source of Data is Extremely Small
Involves lots of Human Efforts
Job Analyst may not possess Appropriate Skills
Mental abilities can not be Directly Observed
m Time Consuming. The biggest disadvantage of Job Analysis process is that it is very time
consuming. It is a major limitation especially when jobs change frequently.
m Involves Personal Biasness. If the observer or job analyst is an employee of the same
organisation, the process may involve his or her personal likes and dislikes. This is a major
hindrance in collecting genuine and accurate data.
m Source of Data is Extremely Small. Because of small sample size, the source of collecting
data is extremely small. Therefore, information collected from few individuals needs to be
standardised.
m Involves Lots of Human Efforts. The process involves lots of human efforts. As every job
carries different information and there is no set pattern, customised information is to be
collected for different jobs. The process needs to be conducted separately for collecting and
recording job-related data.
m Job Analyst May Not Possess Appropriate Skills. If job analyst is not aware of the objective
of job analysis process or does not possess appropriate skills to conduct the process, it is a
sheer wastage of company’s resources. He or she needs to be trained in order to get authentic
data.
m Mental Abilities Cannot be Directly Observed. Last but not the least, mental abilities such
as intellect, emotional characteristics, knowledge, aptitude, psychic and endurance are
intangible things that cannot be observed or measured directly. People act differently in
different situations. Therefore, general standards cannot be set for mental abilities.
MANPOWER PLANNING/HUMAN RESOURCE PLANNING

Introduction
Planning is very important to our everyday activities. Several definitions have been given by different
writers what planning is all about and its importance to achieving our objectives. It is amazing that
this important part of HR is mostly ignored in HR in most organisations because those at the top do
not know the value of HR planning. Organisations that do not plan for the future have less
opportunity to survive the competition ahead. This article will discuss the importance of HR
planning; the six steps of HR planning that is : Forecasting; inventory, audit, HR Resource Plan;
Auctioning of Plan; Monitoring and Control.
Manpower Planning or Human Resource Planning

(HRP) may be defined as strategy for acquisition, utilisation, improvement and preservation of the
human resources of an enterprise. The objective is to provide right personnel for the right work and
optimum utilisation of the existing human resources. HRP exists as a part of the planning process
of business. This is the activity of the management which is aimed at co-ordinating requirements for
and the availability of different types of employers. The major activities of HRP include: forecasting
(future requirements), inventorying (present strength), anticipating (comparison of present and future
requirements) and planning (necessary programme to meet future requirements).
Human Resource Planning involves gathering of information, making objectives, and making
decisions to enable the organisation achieve its objectives and goals. Surprisingly, this aspect of HR
is one of the most neglected in the HRM field. When Human Resource Planning is applied properly
in the field of Human Resource Management, it would assist to address the following questions:
1. How much number of staff does the Organisation have?
2. What type of employees as far as skills and abilities does the organisation have?
3. How should the Organisation best utilise the available human resources?
4. How can the organisation keep its employees?
Definitions
A human resource (HR) department carries on a number of different functions, all of which are
related to a company’s employees. This can include recruiting talent, hiring workers, finding
candidates for promotions and keeping tabs on future potential hires. The department’s role in
securing employees for a company is called human resource planning.
1. According to Dale S. Beach, “Human resource planning is a process of determining and
assuring that the organisation will have an adequate number of qualified persons, available
at the proper times, performing jobs which meet the needs of the enterprise and which provide
satisfaction for the individuals involved.”
2. Human resources planning is the process by which management ensures that it has the right
personnel, who are capable of completing those tasks that help the organisation reach its
objectives. It involves the forecasting of human resources needs and the projected matching
of individuals with expected vacancies. –International Labour Organisation
3. According to Wickstron, “Human resource planning consists of a series of activities viz.:
m Forecasting future manpower requirement either in term of mathematical projection of
trends in the economic environment and development in industry or in term of judgmental
estimates based upon the specific future plans of a company.
m Making an inventory of present manpower resources and assessing the extent to which
these resources are employed optimally.
m Anticipating manpower problems by projecting present resources into the future and
comparing them with the forecast of requirements to determine their adequacy, both
quantitatively and qualitatively.
m Planning the necessary programs of recruitment, selection, training, development, transfer,
promotion, motivation and compensation to ensure that future manpower requirements
are properly met.
m Hiring the right kind of people was cited as the most important challenge by 98 per cent
of HR and business leaders in a survey. The second most-cited concern was retaining
this talent, backed by 93 per cent of respondents.
4. According to Jeisler, “Manpower planning is the process including forecasting, developing
and controlling— by which a firm ensures, it has the right number of people and the right
kind of people and at the right places at the right time doing things for which they are
economically most useful”
5. According to R. Wayne Monday’s in “Human Resource Management,” human resource
planning is the systematic process of matching the internal and external supply of candidates
with job openings that a company anticipates over a certain period of time. Put simply, human
resource planning is keeping an up-to-date compilation of candidates inside and outside the
company for future positions.
6. According to Coleman, “Manpower planning is the process of determining manpower
requirements and the means for meeting those requirements in order to carry out the integrated
plan of the organisation”.
Problem in HRP Process

The main problems in the process of HRP are as follows:
(a) Inefficient information system. In Indian industries, HRIS is not much strong. In the absence
of reliable data it is not possible to develop effective Human Resource Planning.
(b) Uncertainties. Labour absenteeism, labour turnover, seasonal employment, technological
changes and market fluctuations are the uncertainties which Human Resource Planning
process might have to face.
(c) Inaccuracy. Human Resource Planning is entirely dependent on the HR forecasting and
supply, which cannot be a cent per cent accurate process.
(d) Time and expense. Human Resource Planning is time consuming and expensive exercise,
so industries avoid.
(e) Employee resistance. Employees and their unions feel that by Human Resource Planning,
their workload increases so they resist the process.
Objectives of Human Resource Planning (HRP)

1. To recruit and maintain the HR of requisite quantity and quality.
2. To predict the employee turnover and make the arrangements for minimising turnover and
filling up of consequent vacancies.
3. To meet the requirements of the programmes of expansion, diversification etc.
4. To anticipate the impact of technology on work, existing employees and future human resource
requirements.
5. To progress the knowledge, skill, standards, ability and discipline etc.
6. To appraise the surplus or shortage of human resources and take actions accordingly.
7. To maintain pleasant industrial relations by maintaining optimum level and structure of
human resource.
8. To minimise imbalances caused due to non-availability of human resources of right kind,
right number in right time and right place.
9. To make the best use of its human resources; and
10. To estimate the cost of human resources.
So, human resource planning is required to achieve the objectives of estimating potential human
resources requirements; to cope with changing requirements of the organisation taking into
consideration the changing technology; to make full utilisation of the existing and potential workforce
of the organisation; and career planning of employees.
Benefits/Importance of Human Resource Planning

Human resource planning or manpower planning is necessary for all organisations because of
following reasons:
m To meet up requirements of the organisation. To do work in the organisation, every organisation
needs personnel of desired skill, knowledge and experience. This human resources requirement
of organisation can be effectively fulfilled through proper human resource planning. It helps in
defining the number of personnel as well as kind of personnel required to satisfy its needs. It
ensures the reservoir of desired human resources as and when required.
m Counterbalance insecurity and change. There must be proper utilisation of human and non-
human resources in the organisation. Sometimes the organisation may have adequate non-
human resources e.g. machines, materials and money but inadequate human resources as a
result, manufacturing process/production cannot be started. Human resource planning helps
to offset uncertainties and changes as far as possible and enables to ensure availability of
human resources of the right kind, at right time and at right place.
m It helps in checking labour imbalance. Human resource planning helps to anticipate
shortages and/or surpluses of manpower in the organisation. The shortage of manpower as
well as surplus of manpower is not good for the organisation. It proves very expensive for
the organisation. In case of shortage of human resources, physical resources of the
organisation cannot be properly utilised. In case of surplus of human resources, this resource
may remain under-utilised It helps in counter balancing the problem of shortage and surplus
employees very comfortably. Human resource planning helps in correcting this imbalance
before it become unmanageable and expensive.
m Right-sizing the human resource requirements of the organisation. In an existing
organisation, there is a constant need for right-sizing the organisation. In the organisation,
some posts may fall vacant as a result of retirement, accidents, resignations, promotions or
death of employees. Consequently, there is constant need of replacing people. Human resource
planning estimates future requirements of the organisation and helps to ensure that human
resources of right kind, right number, in right time and right place.
m To meet expansion and diversification needs of the organisation. It helps to execute future
plans of the organisation regarding expansion, diversification and modernisation. Through
human resource planning it is ensured that employees in right number and of right kind are
available when required to meet these needs of the organisation. It ensures that people of
desired skills and knowledge are available to handle the challenging job requirements.
m Training and Development of Employees. There is constant need of training and development
of employees as a result of changing requirements of the organisation. It provides scope for
advancement and development of employees through training and development etc. Thus, it
helps in meeting the future needs of the organisation of highly skilled employees.
m Fulfill Individual Needs of the Employees. It helps to satisfy the individual needs of the
employees for promotions, transfer, salary encashment, better benefits etc.
m Helps Formulation of Budgets. It helps in anticipating the cost of human resources e.g. salary
and other benefits etc. It facilitates the formulation of human resource budget for various
departments/divisions of the organisation. So, it may also help in, the formulation of suitable
budgets in an organisation.
m To Check Joblessness. In the exercise of right-sizing of employees by the organisation, some
of the employees may become surplus. It means their services are no more required in the
organisation. It tries to foresee the need for redundancy. It plans to check job loss or to provide
for alternative employment in consultation with various concerned parties and authorities.
Human Resource Planning at Different Levels

Human resource planning is done at various levels for their own purposes by various institutions.
There are various levels of human resource planning in an industrial enterprise:
1. National Level. Generally, central government plans for human resources for the entire nation.
It anticipates the demand for and supply of human requirements at the national level.
2. Sectoral Level. Central and state governments also plan human resource requirements at
sectoral level. It tries to satisfy needs of some particular sectors like Agriculture
3. Industry Level. This level of planning is done to suit manpower needs of a particular industry
such as Engineering, Heavy Industries, Paper Industry, and Consumer Goods Industries.
Public Utility Industries, Textile, Cement/Chemical Industries etc.
4. Departmental Level. This level of planning is done to suit the manpower needs of a particular
department in a company, e.g. Marketing Department, Production Department, Finance
Department, etc.
5. Job Level. This level of planning fulfils the human resource needs of a particular job family
within department. For example, the requirement of number of sales executes in the marketing
department.
Need for HRP at Macro Level

Major reasons for the emphasis on HRP at macro level include:
m Employment-Unemployment Situation. Though in general the number of educated
unemployed is on the rise, there is acute shortage for a variety of skills. This emphasizes the
need for more effective recruitment and retaining people.
m Technological Changes. The myriad changes in production technologies, marketing methods
and management techniques have been extensive and rapid. Their effect has been profound
on job contents and job contexts. These changes cause problems relating to redundancies,
retraining and redeployment. All these suggest the need to plan manpower needs intensively
and systematically.
m Organisational Changes. In the turbulent environment marked by cyclical fluctuations and
discontinuities, the nature and pace of changes in organisational environment, activities and
structures affect manpower requirements and require strategic considerations.
m Demographic Changes. The changing profile of the work force in terms of age, sex, literacy,
technical inputs and social background have implications for HRP.
m Skill Shortages. Unemployment does not mean that the labour market is a buyer’s market.
Organisations have generally become more complex and require a wide range of specialist
skills that are rare and scarce. Problems arise when such employees leave.
m Governmental Influences. Government control and changes in legislation with regard to
affirmative action for disadvantaged groups, working conditions and hours of work,
restrictions on women and child employment, casual and contract labor, etc. have stimulated
the organisations to become involved in systematic HRP.
m Legislative Controls. The days of executive fiat and ‘hire and fire’ policies are gone. Now
legislation makes it difficult to reduce the size of an organisation quickly and cheaply. It is
easy to increase but difficult to shed the fat in terms of the numbers employed because of
recent changes in labour law relating to lay-offs and closures. Those responsible for managing
manpower must look far ahead and thus attempt to foresee manpower problems.
m Impact of Pressure Groups. Pressure groups such as unions, politicians and persons
displaced from land by location of giant enterprises have been raising contradictory pressures
on enterprise management such as internal recruitment and promotions, preference to
employees’ children, displace persons, sons of the soil etc.
m Systems Concept. The spread of systems thinking and the advent of the macro computer as
part of the on-going revolution in information technology which emphasizes planning and
newer ways of handling voluminous personnel records.
m Lead Time. The long lead time is necessary in the selection process and for training and
deployment of the employee to handle new knowledge and skills successfully.
Steps in the Human Resource Planning Process

Human resource planning is the responsibility of all managers. It focuses on the demand and supply
of labour and involves the acquisition, development and departure of people. This is recognized as
a vital HR function as the success of an organisation depends on its employees.
The purpose of HR planning is to ensure that a predetermined number of persons with the correct
skills are available at a specified time in the future. Thus, HR planning systematically identifies
what must be done to guarantee the availability of the human resources needed by an organisation
to meet its strategic business objectives. To achieve this HR planning cannot be undertaken in
isolation. It must be linked to the organisation’s overall business strategy, and concentrate on the
organisation’s long-range human resource requirements
1. Analyzing of Organisation Objectives and the Corporate Level Strategies. The HRD
Manager first studies the objectives of the organisation. Then he prepares a list of all the
activities (jobs) that are required to achieve the objectives. He also does Job’s analysis. Human
Resource Planning should start with analysing corporate level strategies which include
expansion, diversification, mergers, acquisitions, reduction in operations, technology to be
used, method of production etc. Therefore Human Resource Planning should begin with
analysing the corporate plans of the organisation before setting out on fulfilling its tasks.
2. Manpower forecasting. Forecasting the overall human resource requirement in accordance
with the organisational plans is one of the key aspects of demand forecasting. Forecasting of
quality of human resources like skills, knowledge, values and capabilities needed in addition
to quantity of human resources is done through the following methods:
(a) Executive or Managerial Judgment. Here the managers decide the number of employees
in the future. They adopt one of the three approaches mentioned below: -
m Bottom-Up approach. Here the concerned supervisors send their proposals to the top
officials who compare these with the organisational plans, make necessary
adjustments and finalise them.
m Top-Down approach. Here the management prepares the requirements and sends the
information downwards to the supervisory –level who finalises the draft and
approves it.
m Participative Approach. Here the supervisors and the management sit together and
projections are made after joint consultations.
(b) Statistical Techniques. These methods use statistical methods and mathematical
techniques to forecast and predict the supply and demand of Human Resources in the
future.
(c) Ratio-Trend analysis. In this method depending on the past data regarding number of
employees in each department, like production department, sales department, marketing
department and workload level, etc. ratios for manpower are estimated. Past values are
plotted and extrapolated to get fairly accurate future projections.
(d) Work Study method. This technique is suitable to study the correlation between volume
of work and labour i.e. demand for human resources is estimated based on the workload.
Work study method is more appropriate for repetitive and manual jobs when it is possible
to measure work and set standards.
(e) Delphi Technique. ‘Delphi’ Technique is named after the Greek Oracle at the city of Delphi.
In this method, the views of different experts related to the industry are taken into
consideration and then a consensus about the Human Resource requirement is arrived
at. Delphi technique is used primarily to assess long-term needs of human resource.
3. Analysing Human Resource Supply. The HRD manager then estimates the manpower
supply. That is, he finds out how many managers, and employers are available in the
organisation. Every organisation has two sources of supply of Human Resources: Internal &
External. Internally, human resources can be obtained for certain posts through promotions
and transfers. In order to judge the internal supply of human resources in future human
resource inventory or human resource audit is necessary. Human resource inventory helps
in determining and evaluating the quantity of internal human resources available. Once the
future internal supply is estimated, supply of external human resources is analyzed.
4. Estimating manpower gaps. Manpower gaps can be identified by comparing demand and
supply forecasts. Such comparison will reveal either deficit or surplus of Human Resources
in the future. Deficit suggests the number of persons to be recruited from outside, whereas
surplus implies redundant employees to be re-deployed or terminated. Employees estimated
to be deficient can be trained while employees with higher, better skills may be given more
enriched jobs.
5. Action Planning. Once the manpower gaps are identified, plans are prepared to bridge these
gaps. Plans to meet the surplus manpower may be redeployment in other departments and
retrenchment. People may be persuaded to quit voluntarily through a golden handshake.
Deficit can be met through recruitment, selection, transfer and promotion. In view of shortage
of certain skilled employees, the organisation has to take care not only of recruitment but
also retention of existing employees. Hence, the organisation has to plan for retaining of existing
employees.
6. Modify the Organisational plans. If future supply of human resources form all the external
sources is estimated to be inadequate or less than the requirement, the manpower planner
has to suggest to the management regarding the alterations or modifications in the
organisational plans.
7. Controlling and Review. After the action plans are implemented, human resource structure
and the processes should be controlled and reviewed with a view to keep them in accordance
with action plans.
Human Resource Demand Forecasting
Forecasting human resource demand is the process of estimating the future human resource
requirement of right quality and right number. As discussed earlier, potential human resource
requirement is to be estimated keeping in view the organisation’s plans over a given period of time.
Analysis of employment trends; replacement needs of employees due to death, resignations, retirement
termination; productivity of employees; growth and expansion of organisation; absenteeism and
labour turnover are the relevant factors for human resourced forecasting. Demand forecasting is
affected by a number of external and internal factors.
Job analysis and forecasting about the quality of potential human resource facilitates demand
forecasting. So, existing job design must be thoroughly evaluated taking into consideration the future
capabilities of the present employees.
There are number of techniques of estimating/forecasting human resources demand.
(a) Managerial Judgement. Managerial judgement technique is very common technique of
demand forecasting. This approach is applied by small as well as large scale organisations.
This technique involves two types of approaches i.e. ‘bottom-up approach’ and ‘top-down
approach’. Under the ‘bottom-up approach’, line managers send their departmental
requirement of human resources to top management. Top management ultimately forecasts
the human resource requirement for the overall organisation on the basis of proposals of
departmental heads. Under the Top-down approach’, top management forecasts the human
resource requirement for the entire organisation and various departments. This information
is supplied to various departmental heads for their review and approval. However, a
combination of both the approaches i.e. ‘Participative Approach’ should be applied for
demand forecasting. Under this approach, top management and departmental heads meet
and decide about the future human resource requirement. So, demand of human resources
can be forecasted with unanimity under this approach.
(b) Work-Study Technique. This technique is also known as ‘work-load analysis’. This technique
is suitable where the estimated work-load is easily measurable. Under this method, estimated
total production and activities for a specific future period are predicted. This information is
translated into number of man-hours required to produce per units taking into consideration
the capability of the workforce. Past-experience of the management can help in translating
the work-loads into number of man-hours required. Thus, demand of human resources is
forecasted on the basis of estimated total production and contribution of each employee in
producing each unit items. The following example gives clear idea about this technique.
Let us assume that the estimated production of an organisation is 3.00.000 units. The standard
man-hours required to produce each unit are 2 hours. The past experiences show that the
work ability of each employee in man-hours is 1500 hours per annum. The work-load and
demand of human resources can be calculated as under:
m Estimated total annual production = 300000 units
m Standard man-hours needed to produce each unit = 2 hrs
m Estimated man-hours needed to meet estimated annual production (i × ii) = 600000 hrs
m Work ability/contribution per employee in terms of man-hour = 1500 units
m Estimated no. of workers needed (iii / iv) = 600000/1500 = 400 units
The above example clearly shows that 400 workers are needed for the year. Further,
absenteeism rate, rate of labour turnover, resignations, deaths, machine break-down, strikes,
power-failure etc. should also be taken into consideration while estimating future demand of
human resources/ manpower.
(c) Ratio-Trend Analysis. Demand for manpower/human resources is also estimated on the basis
of ratio of production level and number of workers available. This ratio will be used to estimate
demand of human resources. The following example will help in clearly understanding this
technique.
Estimated production for next year = 1,40,000 units
Estimated no. of workers needed
(on the basis of ratio-trend of 1: 200) will be = 700
(d) Econometrics Models. These models are based on mathematical and statistical techniques
for estimating future demand. Under these models relationship is established between the
dependent variable to be predicted (e.g. manpower/human resources) and the independent
variables (e.g., sales, total production, work-load, etc.). Using these models, estimated demand
of human resources can be predicted.
(e) Delphi Technique. Delphi technique is also very important technique used for estimating
demand of human resources. This technique takes into consideration human resources
requirements given by a group of experts i.e. managers. The human resource experts collect
the manpower needs, summarises the various responses and prepare a report. This process
is continued until all experts agree on estimated human resources requirement.
(f) Other Techniques. The other techniques of Human Resources demand forecasting are
specified as under:
(a) Following the techniques of demand forecasting of human resources used by other similar
organisations
(b) Organisation-cum-succession-charts
(c) Estimation based on techniques of production
(d) Estimates based on historical records
(e) Statistical techniques e.g. co-relation and regression analysis.
HR Supply Forecasting
Human Resource supply forecasting is the process of estimating availability of human resource
followed after demand for testing of human resource. For forecasting supply of human resource we
need to consider internal and external supply. Internal supply of human resource available by way
of transfers, promotions, retired employees & recall of laid-off employees, etc. Source of external supply
of human resource is availability of labour force in the market and new recruitment.
External supply of human resource depends on some factors mentioned below.
m Supply and demand of jobs.
m Literacy rate of nation.
m Rate of population
m Industry and expected growth rate and levels
m Technological development.
m Compensation system based on education, experience, skill and age.
NEW CHALLENGES OF HRM

1. Retaining your best talent – Make it your top priority
Gone are the days where recruiting good talent was enough, retaining that good talent is also
imperative. Especially those employees who possess greater professional and technical knowledge
are much in demand in the job market as such employees have the ability to keep their company
ahead in the race. Such employees are invaluable assets for any company. Employee development
and engagement, health and safety, recognition, flexible work timings, work-life balance are some
examples of novel approaches that you could use to retain your employees.
2. Ensuring better employee productivity to maximise your profits

Maximizing profit and minimizing cost is the core of every business. Higher the in case it is due to
inefficient employee, training the employee of eve staff could be a solution of finding alternative
resources for sufficient inadequate resources are the case. HRM should manage on-site as was
training for employees. Providing training and support to employees benefits the company but also
helps the employees who take this round they are a vital part of the business.
3. Managing a diverse workforce : Unity in diversity is the new business

Composition of workforce is getting diverse at present situation. Divided and created by age, gender,
educational background and religion but also personality and background of workers. However,
with a more diversed some usual issues such as harassment of discrimination may arise. To
instances, a company must formulate and implement strict rules.
4. Dealing with the ‘New normal’ – Globalization

We live in a global world today. In fact, mergers, acquisitions, collaborate takeovers are a common
phenomenon. While internationalization of a firm is sign of success, it is also a challenge as with
globalization, you also several challenges related to different language, work culture, manage
approach, culture and tradition. You are also required to handle various such as scheduling meetings,
managing holidays and outsourcing of overcome these challenges.
5. Resistance to change–What if i am replaced by a machine in the future?

This is a common fear which plagues the mind of many employees. Especially the ones who consider
change to be a threat and think that their roles within the company will be replaced by a machine or
computer that can do the job cheaper or faster.
As with any change in the workplace, changes in technology could cause anxiety or even
resistance among your employees. The role of the human resource manager would be to develop
strategies to combat this resistance to change which begins by assuring employees of their worth for
the business. They must be able to perceive the technology as an aid not an obstacle to their work.
6. Maintaining privacy and managing vital business information

As the technology within an organization advances, so do the privacy and security concerns
connected with those technical changes. Ensuring that your employees are well trained in securing
data and hence preventing privacy breaches Providing employee training on how to secure data
and preventing any breach of privacy thus ensuring the safety of sensitive business information is a
key challenge for human resources. Communicating with technology vendors and keeping up-to-
date with the technical aspects of the company are some more ways for human resources managers
to recognize and confront this challenge.
7. Maintaining discipline and ensuring successful achievement of business

goals
Discipline is one of the key issues, lack of which can cause various problems impacting the
productivity of the company. For instance, if discipline is not maintained; employees may neglect
their tasks and duties or even procrastinate their tasks and misbehave with co-workers. The ultimate
result of these activities is decreased productivity of your company.
You need to make your policies clear and inform every employee about your disciplinary
procedures as well as let them know who they can appeal to. You must follow different processes
depending on the severity of the employee’s actions. There is a need to ascertain whether discipline
is due to employee performance issue or if it is misconduct.
8. Embrace technology or get extinct

Any company must consider technological changes as the present day worlod demands every firm
to move with the change, or else be left behind Technological changes influence the overall nature
of work and businesses need to find employees that are able to adjust with the change.
During this process, unemployment as well as employment opportunities arise, creating new
challenges for HRM. With new developments in technology as well as with the use of new tools,
such as talent networks and internal social networks, there is the promise of increased flexibility
and productivity.
9. Leadership Development and Succession Planning

Leadership development is one of the biggest challenges for human resource management. It needs
to be a critical strategic initiative. HR professionals are expected to provide the essential structure,
processes and tools to select the best and develop the future leaders of the organization.
Most such initiatives can also be successfully conducted with the use of a scientific approach
through customised assessments. With online assessments on identifying the best talent, predicting
success at your workplace as well as building the next set of leaders by evaluating them through
this approach can be the best next steps.
Main Differences Between Personnel Management and HRM (HRM Vs Personnel Management)
Dimensions Personnel and IR HRM
Beliefs and assumptions
1. Contract Careful delineation of written Aim to go beyond contract

contracts
2. Rules Importance of devising clear ‘Can-do’ outlook;
rules/mutually Impatience with ‘rule’
3. Guide to management action Procedures Business-need’
4. Behaviour referent Norms/custom and practice Values/mission
5. Managerial task vis-a-vis labour Monitoring Nurturing
6. Nature of relations Pluralist Unitarist
7. Conflict Institutionalised De-emphasised
Strategic aspects
8. Key relations Labour management Customer
9. Initiatives Piecemeal Integrated
10. Corporate plan Marginal Central
11. Speed of decision Slow Fast
Line management
12. Management role Transactional Transformational leadership
13. Key managers Personnel/ IR specialists General/business/line
managers
14. Communication Indirect Direct
15. Standardisation High (e.g. ‘parity’ an issue) Low (e.g. ‘parity’ not seen as
relevant)
16. Prized management skills Negotiation Facilitation
Key levers
17. Selection Separate, marginal task Integrated, key task
18. Pay Job evaluation (fixed grades) Performance-related
HRM has a long history of growing from a simple welfare and maintenance function to that of a
board level activity of the companies. In recent years, the focus on people management from human
capital/intellectual capital perspective is also shaping firmly. However, the hard fact is that this
growth can be generally witnessed in management literature and rarely in practice. Peripheral
observation of people management in organisation can mislead the observers since, hardly there
could be any organisation that is yet to rename its old fashioned title of industrial relations/
personnel/welfare/administration department into HRM department. But, in practice, these
organisations continue to handle the people management activities the way they had been handling
earlier. The reasons for this could be many and varied. Among them, the potential reason is lack of
clear understanding about the differences between personnel/IR and HRM.
RECRUITMENT
Definition of Recruitment
According to Dalton E. Mc. Farland, “The term recruitment applies to the process of attracting
potential employees to the company.”
According to Edwin B. Flippo, “Recruitment is the process of searching the candidates for
employment and stimulating them to apply for jobs in the organisation”. Recruitment is the activity
that links the employers and the job seekers.
A process of finding and attracting capable applicants for employment. The process begins when
new recruits are sought and ends when their applications are submitted. The result is a pool of
applications from which new employees are selected. Recruitment of candidates is the function
preceding the selection, which helps create a pool of prospective employees for the organisation so
that the management can select the right candidate for the right job from this pool. The main objective
of the recruitment process is to expedite the selection process.
Recruitment is a continuous process whereby the firm attempts to develop a pool of qualified
applicants for the future human resources needs even though specific vacancies do not exist. Usually,
the recruitment process starts when a manager initiates an employee requisition for a specific vacancy
or an anticipated vacancy.
Thus recruitment involves the following steps :
(a) Publicising information about job vacancies in the organisation.
(b) Identifying the sources of supply of adequate number and right type of personnel required.
(c) Contacting the chosen source of recruitment to secure applications, e.g. advertisement for
vacancies in a newspaper so as to stimulate the prospective candidates to offer themselves
for employment.
(d) Assessing alternative sources of manpower and choosing the best source.
Recruitment needs are of Three Types
m Planned. i.e. the needs arising from changes in organisation and retirement policy.
m Anticipated. Anticipated needs are those movements in personnel, which an organisation
can predict by studying trends in internal and external environment.
m Unexpected. Resignation, deaths, accidents, illness give rise to unexpected needs.
Recruitment Process
The recruitment and selection is the major function of the human resource department and
recruitment process is the first step towards creating the competitive strength and the strategic
advantage for the organisations. Recruitment process involves a systematic procedure from sourcing
the candidates to arranging and conducting the interviews and requires many resources and time.
A general recruitment process is as follows:
m Identifying the vacancy. The recruitment process begins with the human resource department
receiving requisitions for recruitment from any department of the company. These contain:
n Posts to be filled
n Number of persons
n Duties to be performed
n Qualifications required
n Preparing the job description and person specification.
n Locating and developing the sources of required number and type of employees
(Advertising etc.).
n Short-listing and identifying the prospective employee with required characteristics.
n Arranging the interviews with the selected candidates.
n Conducting the interview and decision making.
The recruitment process is immediately followed by the selection process i.e. the final interviews
and the decision making, conveying the decision and the appointment formalities.
Sources of Recruitment
Sources of Recruitment
Every organisation has the option of choosing the candidates for its recruitment processes from
two kinds of sources: internal and external sources. The sources within the organisation itself (like
transfer of employees from one department to other, promotions) to fill a position are known as the
internal sources of recruitment. Recruitment candidates from all the other sources (like outsourcing
agencies etc.) are known as the external sources of recruitment.
Internal Sources of Recruitment

1. Transfers. The employees are transferred from one department to another according to their
efficiency and experience.
2. Promotions. The employees are promoted from one department to another with more benefits
and greater responsibility based on efficiency and experience.
3. Others are Upgrading and Demotion of present employees according to their performance.
4. Retired and Retrenched employees may also be recruited once again in case of shortage of
qualified personnel or increase in load of work. Recruitment such people save time and costs
of the organisations as the people are already aware of the organisational culture and the
policies and procedures.
5. The dependents and relatives of Deceased employees and Disabled employees are also
done by many companies so that the members of the family do not become dependent on the
mercy of others.
External Sources of Recruitment

1. Press Advertisement. Advertisements of the vacancy in newspapers and journals are a widely
used source of recruitment. The main advantage of this method is that it has a wide reach.
2. Educational institutes. Various management institutes, engineering colleges, medical Colleges
etc. are a good source of recruiting well qualified executives, engineers, medical staff etc. They
provide facilities for campus interviews and placements. This source is known as Campus
Recruitment.
3. Placement Agencies. Several private consultancy firms perform recruitment functions on behalf
of client companies by charging a fee. These agencies are particularly suitable for recruitment
of executives and specialists. It is also known as RPO (Recruitment Process Outsourcing).
4. Employment Exchanges. Government establishes public employment exchanges throughout
the country. These exchanges provide job information to job seekers and help employers in
identifying suitable candidates.
5. Manual workers can be recruited through contractors who maintain close contacts with the
sources of such workers. This source is used to recruit labour for construction jobs.
6. Unsolicited Applicants. Many job seekers visit the office of well-known companies on their
own. Such callers are considered nuisance to the daily work routine of the enterprise. But
can help in creating the talent pool or the database of the probable candidates for the
organisation.
7. Employee Referrals / Recommendation. Many organisations have structured system where
the current employees of the organisation can refer their friends and relatives for some position
in their organisation. Also, the office bearers of trade unions are often aware of the suitability
of candidates. Management can inquire these leaders for suitable jobs. In some organisations
these are formal agreements to give priority in recruitment to the candidates recommended
by the trade union.
8. Recruitment at factory Gate. Unskilled workers may be recruited at the factory gate these
may be employed whenever a permanent worker is absent. More efficient among these may
be recruited to fill permanent vacancies.
Factors Affecting Recruitment
The internal forces i.e. the factors which can be controlled by the organisation are:
1. Recruitment policy. The recruitment policy of an organisation specifies the objectives of
recruitment and provides a framework for implementation of recruitment programme. It may
involve organisational system to be developed for implementing recruitment programmes and
procedures by filling up vacancies with :
m Organisational objectives
m Personnel policies of the organisation and its competitors.
m Government policies on reservations.
m Preferred sources of recruitment.
m Need of the organisation.
m Recruitment costs and financial implications.
2. HRP. Effective human resource planning helps in determining the gaps present in the existing
manpower of the organisation. It also helps in determining the number of employees to be
recruited and what qualification they must possess.
3. Size of the firm. The size of the firm is an important factor in recruitment process. If the
organisation is planning to increase its operations and expand its business, it will think of
hiring more personnel, which will handle its operations.
4. Cost. Recruitment incur cost to the employer, therefore, organisations try to employ that source
of recruitment which will bear a lower cost of recruitment to the organisation for each
candidate.
5. Growth and Expansion. will employ or think of employing more personnel if it is expanding
it’s operations.
The external forces are the forces which cannot be controlled by the organisation. The Major external
forces are:
1. Supply and demands. The availability of manpower both within and outside the organisation
is an important determinant in the recruitment process. If the company has a demand for
more professionals and there is limited supply in the market for the professionals demanded
by the company, then the company will have to depend upon internal sources by providing
them special training and development programs.
2. Labour and market. Employment conditions in the community where the organisation is
located will Influence the recruiting efforts of the organisation. If there is surplus of manpower
at the time of recruitment, even informal attempts at the time of recruiting like notice boards
display of the requisition or announcement in the meeting etc. will attract more than enough
applicants.
3. Image/Goodwill. Image of the employer can work as a potential constraint for recruitment.
An organisation with positive image and goodwill as an employer finds it easier to attract
and retain employees than an organisation with negative image. Image of a company is based
on what organisation does and affected by industry. For example finance was taken up by
fresher MBA’s when many finance companies were coming up.
4. Political/social and environment. Various government regulations prohibiting discrimination
in hiring and employment have direct impact on recruitment practices. For example,
Government of India has introduced legislation for reservation in employment for scheduled
castes, scheduled tribes, physically handicapped etc. Also, trade unions play important role
in recruitment. This restricts management freedom to select those individuals who it believes
would be the best performers. If the candidate can’t meet criteria stipulated by the union but
union regulations can restrict recruitment sources.
5. Unemployment rate. One of the factors that influence the availability of applicants is the
growth of the economy (whether economy is growing or not and its rate). When the company
is not creating new jobs, there is often oversupply of qualified labour which in turn leads to
unemployment.
6. Competitors. The recruitment policies of the competitors also effect the recruitment function
of the organisations. To face the competition, many a times the organisations have to change
their recruitment policies according to the policies being followed by the competitors.
SELECTION
Meaning of Selection
Recruitment has been described as the process of getting the potential employees who are willing
to apply for the job. But selection is not an easier process. It is a problem of matching a man to the
job. A well devised selection process is very essential for the organisation because if an employee
selected once, he will remain in the company for the number of years. Faulty selection process will
lead to low productivity and high labour turnover. The process of selection leads to employment of
persons who possess the ability and qualifications to perform on the posts which are vacant in an
organisation. The selection process divides the applicants into two categories, one who will be offered
employment and the other who will not be offered employment. More candidates are rejected and
less of them are selected, so it can also be called as rejection. This is the reason why selection is
called a negative process. Selection is the process by which candidates for employment are
distinguished between those who are suitable and those who are not.
Definition of Selection
a. According to Dale Yoder, “Selection is the process in which candidates for employment are
divided in two classes, those who are to be offered employment, and those who are not.
b. According to Terry, “Selection involves a series of steps by which candidates are screened for
choosing the most suitable persons for vacant jobs in the organisation”.
Process of Selection
Selection starts with reference to job specifications which indicate not only immediate job
requirements but other qualities which may be desirable in the long run. Usually the personal
qualities which form the basis of selection include: skill, experience, age, education, training, physical
characteristics, intelligence aptitudes, emotional stability, attitude towards work and personality.
The selection procedure may differ according to the types of jobs and candidates. The common
practices are outlined below:
1. Screening of Applications. The first step in the process of selection involves screening i.e.
shifting of applicants to avoid further consideration of those who are obviously unsuitable.
Prospective employees have to fill up some sort of application forms which include the variety
of information including personal and professional. Those applications are selected, which
meet the job standards.
2. Preliminary Interview. An interview at the preliminary stage may be arranged consisting of
exchange of information to determine whether it is worthwhile for the candidate to fill up the
blank application. In many organisations, the process of selection begins with the preliminary
interview. This interview often takes place at the reception counter of the organisation. It is
generally short and is held to eliminate the obviously unfit or the unsuitable.
3. Application Blank. The application blank is the form given to the candidate to fill the required
information in his own handwriting. This application form relieves the interviewer from the
burden of recording factual data. A variety of applications blanks are used by the in practice but
there is a high degree of similarity between the application blanks of different organisations
because the basic information required is similar in all cases. The application blank should be
simple and concise consisting of questions, which have bearing on the applicant’s suitability
for employment. It should provide information which is relevant to the job or the vacancy. After
screening applications, the promising candidates are called for tests.
This application blank generally requires the following information from the candidates
m Personal Information including name, father’s name, age, sex, marital status etc.
m Qualification both educational and professional
m References of two or more persons who can be asked about the candidate’s character and
social relations.
m Other information which may be helpful for the decision for the job.
4. Employment Test. Formal testing of the candidates has become a common practice in selection
as a supplement to direct personal interview. A wide variety of tests have been developed for
potential employees of different categories.
There are commonly following types of test:
(A) Intelligence Test. Intelligence test is used to measure the mental capacity of the individual
in terms of his memory, power of understanding, verbal comprehension, reasoning ability,
vocabulary, perception etc. This is the form of psychological test. These tests are most widely
used in the selection of both skilled and unskilled personnel. The basic purpose of this test
is that if the management appoints intelligent people their training and learning in the
organisation will become easy. It is also one of the forms of psychological test.
(B) Personality Test. This test measures the maturity, initiative, emotional balance, and
temperament of an individual. This test is conducted to predict performance success for jobs
that require dealing with people who are supervisory or managerial in character. This test
checks the ability of the person to interact, to motivate, or to convince the other person. Like
interaction skills are very much necessary for the salesman.
(C) Aptitude Test. Aptitude test is used to measure the applicant’s capacity and his potential
for learning the skills required for the job. Aptitude refers to the ability of the person of
learning the skills required to perform the particular job. This test measures the individual
potential for the development.
(D) Interest Test. These tests are designed so as to identify the candidate’s patterns of interests
i.e. areas in which he show special likings, fascination, and involvement. These tests find
out the likes and dislikes of the applicants for the different types of jobs. It found out the jobs
which will satisfy the prospective employees.
All the above tests are psychological tests which measure the emotional and psychological
maturity of the employees. Apart from this following are the remaining types of test:
(A) Dexterity Test. Dexterity test is aimed at knowing the ability of a candidate to use his limbs
or different parts of the body in a coordinated manner as required in performing a particular
job.
(B) Achievement Test. It is also called performance or trade test. Achievement is concerned with
the accomplishments of the particular person. If a particular candidate claim that he has
accomplished something, then the achievement test checks that if he actually knows what
he has accomplished. For e.g. a driving test may measure whether the candidates know
driving through the speed, rules, and the method of driving opted by the candidate.
(C) Special Trade Efficiency Test. This test verifies the specialisation of the candidate. Both the
theoretical and practical knowledge about the trade are verified under this test.
5. Employment Interview. Face to face interview before the final selection is an important step,
which not only acts as a check on the information already obtained but also provides the
opportunity to form a better understanding of the candidate, to motivate him, to inform him about
the job and the company. According to Strauss and Sayles, “The object of the interview is to measure
the applicant against the specific requirement of the job and to decide whether these will be good
fit”. The different types of interviews are as follow:
Structured Interview. In this question and areas to be covered in the interview are decided in
advance.
Unstructured Interview. It is not planned in relation to the questions to be asked.
Depth Interview. It is semi structured interview and questions are asked for the key areas.
Stress Interview. Deliberate attempt is made by the interviewer to provoke and embarrass the
candidate. The purpose is to check the reaction of the candidate under the situation of stress.
6. References Checking. An investigation into a promising candidate’s background is too often
overlooked by the employing organisation. Previous employees and school officials can often
provide valuable insights into the applicant’s personality and behaviour. The usual references
are the previous employer, educational institution of the candidate, and promising persons
who know the behaviour or character of the candidate. In India, references are not given due
importance because of the chances of partiality and biasness, otherwise these provide very
useful information about the candidate.
7. Selection decision: Views of the concerned manager are taken for the final selection regarding
the candidates who pass employment test, employment interview, and reference checks. This
is because he will be responsible for the performance of the candidate in the future.
8. Medical Examination: Medical examination of the candidate is required for several reasons
like to ensure that he is physically fit for the job that he does not suffer from any latent disease
and the firm is not liable for any claim under Workmen Compensation Act. The practice of
physical examination varies a great deal both in terms of coverage and time. It is basically
carried out to ascertain the physical standards and fitness of prospective employees.
9. Job Offer: On completion of the selection procedure, candidates are finally selected and letters
of appointment are issued to them which state the terms and conditions of employment
including the pay scale, starting salary, allowances, and other benefits, the period of probation,
etc. The period of joining is also mentioned in the job offer.
10. Contract of employment: If the candidate accepts the job offer he becomes an employee of the
organisation. He has to sign various documents with the organisation mainly the attestation
form and the written contract. Written contract provides the following information:
m Job Title m Responsibilities of the job
m Remuneration m Allowances and incentives
m Working hours and leave rules.
Differences Between Recruitment and Selection

Basis Recruitment Selection
Meaning Searching candidates to apply for It is appointing the employees on the
right
the particular job jobs.
Nature It is positive process It is negative process.
Aim To attract more and more To reject unsuitable candidates and select
candidates for the vacant jobs. suitable jobs.
Contract No contractual relation is created. Contractual relation is created.
Sequence It precedes the selection. Selection follows the recruitment.
Hurdle No hurdles for the employees. Hurdles are created by the management.
Process It is simple process. It is complicated process.
Economy It is economical It is expensive.
Time It is less time consuming. It is more time consuming
PLACEMENT & INDUCTION
Once the candidates are selected for the required job, they have to be fitted as per the qualifications.
Placement is said to be the process of fitting the selected person at the right job or place, i.e. fitting
square pegs in square holes and round pegs in round holes. Once he is fitted into the job, he is
given the activities he has to perform and also told about his duties. The freshly appointed candidates
are then given orientation in order to familiarise and introduce the company to him. Generally the
information given during the orientation programme includes:
m Employee’s layout
m Type of organisational structure
m Departmental goals
m Organisational layout
m General rules and regulations
m Standing Orders
m Grievance system or procedure
In short, during Orientation employees are made aware about the mission and vision of the
organisation, the nature of operation of the organisation, policies and programmes of the organisation.
The main aim of conducting Orientation is to build up confidence, morale and trust of the employee
in the new organisation, so that he becomes a productive and an efficient employee of the
organisation and contributes to the organisational success. The nature of Orientation program varies
with the organisational size, i.e., smaller the organisation the more informal is the Orientation and
larger the organisation more formalised is the Orientation programme. Proper Placement of
employees will lower the chances of employee’s absenteeism. The employees will be more satisfied
and contended with their work.
Induction Presentation Sequence

m Introduction of HR dept
m Business Mission, Vision and Scope
m Quality Policy
m Organisation structure
m Responsibility
m Company policies (Salary/Leave Management/Appraisal/Work culture)
m Trainings.
Job Classification – Meaning, its Need and Importance

Job classification is a scheme of classifying a job according to the current responsibilities and duties
associated with the job. It is different than job design in that the person assigned to the job is not
taken into consideration. Jobs are classified with the purpose of studying jobs in a holistic perspective.
Job classifications group’s jobs into various grades, each grade having a certain specific class
description and many times a pay scale that is used for job comparisons. Often the title is also
assigned on the basis of grade arrived at after the job classification.
Need for Job Classification. There are various methods available for classifying jobs and often these
vary across organisations and the industries. The basic purposes of classifying jobs are:
m To help in recruitment and selection by defining significant qualification standards.
m To help in designing and developing standards for performance and appraisals.
m Allocating responsibilities aligned to the company mission and vision and those that help in
the realisation of organisations business plans and strategies.
m Identification of career and growth paths in organisations.
m Establish standards for compensation.
WAGE & SALARY ADMINISTRATION

Wage and Salary Administration’ refers to the establishment and implementation of sound policies
and practices of employee compensation. The basic purpose of wage and salary administration is
to establish and maintain an equitable wage and salary structure. Wages and salaries are often one
of the largest components of cost of production and such have serious implications for growth and
profitability of the company. On the other hand, they are the only source of workers’ income.
After the independence and particularly after 1948, some new terms relating to wages began to
beused. These are:
1. Statutory Minimum Wages
2. Basic Minimum Wages
3. Minimum Wages
4. Fair Wages
5. Living Wages
6. Need Based Wages
1. Statutory Minimum Wages. By it we mean the minimum amount of wages which should
essentially be given to the workers as per provisions of the Minimum Wages Act, 1948.
2. Basic Minimum Wages. This minimum wage is fixed through judicial pronouncement,
awards, industrial tribunals and labour. The employers are essentially to give this minimum
wage to the workers.
3. Minimum Wages. The concept of minimum wages has developed due to different standards
in different countries. In Indian context, minimum wage means the minimum amount which
an employer thinks necessary for the sustenance of life and preservation of the efficiency of
the worker. According to Fair Wage Committee, the minimum wages must also provide for
some measures of education- medical requirements and amenities.
4. Fair Wages. In order to bring about improved relations between labour and management an
effort has been made in modern times that the labour gets a fair deal at the hands of owners
and managers of industries. Various proposals were undertaken at the Industries Conference
in 1947 and a resolution known as the Industrial Truce Resolution was passed. It is provided
for the payment of fair wages to labour. The government of India appointed a Fair Wages
committee in 1948 to determine the principles on which fair wages should be based and to
suggest the lines on which those principles should be applied. According to the report on
this Committee, Fair Wages is that wages which the labourer gets for his work just near to
minimum wages and living wages. Generally, the current rate of wages being paid in the
enterprise are known as fair wages.
5. Living Wages. According to Fair Wage Committee Report, “The living wage should enable
the male earner to provide for himself and his family not merely the bare essentials of food,
clothing and shelter, but also a measure of frugal comfort including education for children,
protection against ill health, requirements of essential social needs and a measure of insurance
against the more important misfortunes including old age.” According to the Committee on
Fair Wages, the living wages represent the highest level of the wages and include all amenities
which a citizen living in a modern civilised society is to expect when the economy of the
country is sufficiently advanced and the employer is able to meet the expanding aspirations
of his workers. The Living Wage should be fixed keeping in view the National income and
the capacity of the industry to pay.
6. Need Based Wages. The Indian Labour Conference at its 15th session held at New Delhi in
July, 1957 suggested that minimum wage fixation should be need based. Following are the
important points of the Resolution of the Conference.
(a) The standard working class family should include three consumption units for the one
earner.
(b) Calculation of minimum food requirements should be made on the basis of the
recommendation of Dr. Aykoroyed i.e. 27000 calories for an average Indian adult.
(c) Calculation of cloth should be made @ 18 yards annually for one member. As such, a
family consisting of four members will require 72 yards of cloth.
(d) The workers should get minimum rent as per guidelines fixed by the government in the
industrial housing policy.
(e) Expenses for fuel, light and so on should be equal to 20% of the entire minimum wages.
Concept Related to Wages

m Wages. Wages may be defined as the aggregate earning of employee for a given period of
time such as a day or a week or a month .Wages are basically the price paid for the services
of labour in the process of production. They are composed of two parts – the basic wage and
other allowances. The allowances include dearness allowances, city compensatory
allowances, overtime pay and medical allowances.
m Salary. It is compensation to an employee for services rendered on a weekly, monthly or annual
basis, it is usually associated with office staff, supervisors, researchers, manager etc.
m Wage rate. It is a wage received by a workers for a unit of time or production excluding special
payments for overtime, night work and incentive earning. If the wage rate is determined by
the job evaluation. It is called standard wage rate.
m Nominal Wage. Wage expressed in terms of money are called nominal wages.
m Real Wages. The goods and services which could be purchased with the help of money wages
are known as real wages. Nominal wages are divided by a cost of living or consumer price
index give real wages.
m Fringe Benefits. There refers to compensation given to employees, over and above wages,
that often is not directly related to output, performance or time worked.
m Wage and Salary Administration’ refers to the establishment and implementation of sound
policies and practices of employee compensation. The basic purpose of wage and salary
administration is to establish and maintain an equitable wage and salary structure. Wages
and salaries are often one of the largest components of cost of production and such have
serious implications for growth and profitability of the company. On the other hand, they are
the only source of workers’ income.
Wages Theories
Different writers and thinkers have suggested several theories for determination of wages .Theories
are discussed below :
1. Subsistence Theory
2. Wage Fund Theory
3. Residual Claimant Theory
4. Surplus Value Theory of Money
5. Marginal Productivity Theory
6. Bargaining Theory of Wages
7. Compensation theory
8. Expectancy theory
9. Equity Theory
10. Agency theory
1. Subsistence Theory. This theory was propounded by David Richardo. Richardo states that
“The labourers are paid to enable them to subsist and perpetuate the race without increase
or diminution.” This theory is also known as “Iron Law of Wages”. According to this theory,
if the wages fall below the subsistence level, the number of workers would decrease as many
of them would die of hunger, disease, malnutrition etc.. This would make the wage rates go
up as labour will become scarce. However, if the workers are paid more than the subsistence
wages, they would marry and procreate. This would increase their number and bring down
the rate of wages.
This theory is based on two assumptions, namely,
(i) The law of diminishing return applies to industry.
(ii) There is a rapid increase in populations.
2. Wage Fund Theory. This was propounded by Adam Smith and further expounded by J.S.
Mill. He assumed that wealthy persons have funds of surplus wealth, as a result of their
savings wages are paid out of these funds. This fund could be utilised for employing labourers
for work. If the fund was large, wages would be high if it was small, wages would be low,
just enough for the subsistence. Thus, the size of the fund determined the demand for labour
and the wages that could be paid.
The J.S. Mill said that wages mainly depend upon the demand for and supply of labour or
proportion between populations and capital available. The amount of wages is fixed. Wages
can’t be increased without decreasing the numbers of workers and vice versa. It is the wages
fund which determine the demand of labour.
3. Residual Claimant Theory. This theory was propounded by Francis A Walker. According to
Walker, there are four factors of production namely, land, labour, capital and organisation.
Wages represent the amount of value created in the production which remains after payment
of the other three factors of production namely land, capital and organisation.
In others words, labour is residual claimant. The wages are equal to the whole production
minus rent, interest and profits
This theory tries to prove that if the productivity of the workers increases the production will
rise as a result there will be increase in the residual means to be distributed as wages. It also
recognises that the workers have a stake in the national income of the country.
4. Surplus Value Theory of Money. This theory was propounded by Karl Marx. According to
Marx, Labour was to be treated as an article of commerce, which could be purchased on
payment of subsistence price. The price of any product was determined by the labour time
needed for producing it. The labourers were not paid in proportion to the time spent on job,
but much less. The surplus, thus created, was utilised for paying other expenses.
5. Marginal Productivity Theory. This theory was propounded by Wick steed and Clark.
According to this theory wages depend upon the demand for and supply of labour. Wages
are based upon the entrepreneur’s estimate of the value that will probably be produced by
the last or marginal worker. Workers are paid only what they are economically worth. As
long as additional worker contributes more to the total value than the cost in wages, it pays
the employer to continue hiring. The result is that the employer has a larger share in profits
as he doesn’t have to pay to non-marginal workers.
6. Bargaining Theory of Wages. This theory was propounded by John Davidson. According to
him, wages are determined by the relative bargaining power of workers or trade unions and
of employers. When a trade union is involved, monetary benefits, incentives, job differentials
etc. tend to be determined by the relative strength of the organisation and the trade union.
However this is possible in big plant which are earning huge profits and where labour is
well organised. The profits earned but the enterprise play an important role in determining
the bargaining wages.
7. Compensation theory. All researcher agree on the point that pay affects employee satisfaction
and this can have behavioural implications. When employees are dissatisfied with their jobs
their desire for money increases and attractiveness of the job is increases and attractiveness
of the job decreases. As a result of the desire for more money, they are more apt to pursue
behaviours which are likely to raise their pay, such as improving their work performance,
joining union and looking for better job.
8. Expectancy theory. Vroom expectancy theory focuses on the link between rewards and
behaviour motivation, according to the theory is the result of valence, instrumentally and
expectancy. Remunerating system differ according to this impact on these motivational
component. Remunerating system according to this impacts on these motivational
components.
9. Equity Theory. Equity theory seek to relate employees behaviour to their perception of equity
and inequity in their compensation. Elliott Jacques has been the leading advocate of the equity
approach. His analysis leans heavily on his view that the effective rewards system must relate
pay to the level of work as defined by the time span discretions. This time span is the maximum
periods for which a job holder can be allowed to exercise discretions or self control without
the supervisor review.
10. Agency theory. The agency theory focuses on the divergent interest an goal of the organisation
stake holder and the way employee remunerations can be used to align these interest and
goals. Employer and employees are the two stakeholders of a business unit, the former
assuming the role of principle and the latter the role of agent. The remuneration is paid to
the employee in the agency cost.
Wage Determination Process

Wage determination is a complex process. However, wage determination process consists of the
following steps:
1. Job Analysis. Job analysis describes the duties, responsibilities, working conditions and inter-
relationships between the job as it is and the other jobs with which it is associated. It attempts
to record and analyse details concerning the training, skills, required efforts, qualifications,
abilities, experience, and responsibilities expected of an employee. After determining the job
specifications, the actual process of grading, rating or evaluating the job occurs. A job is rated
in order to determine its value relative to all the other jobs in the organisation which are
subject to evaluation. The next step is that of providing the job with a price. This involves
converting the relative job values into specific monetary values or translating the job classes
into rate ranges.
2. Wage Survey. In determining the wages for a specific job it is very necessary to work as to
what wages are being given for the same job in other enterprises. If, on the basis of utility, the
wages for a specific job are determined below the wages for the same job on other enterprises,
following will be its disadvantages:
1. Good persons and persons of merit will not be available.
2. If such people are at all obtained for employment, they will shift to another enterprise
after some time.
It is, therefore, necessary to keep in mind the following in wage-survey:
(i) Term of survey, (weekly or monthly)
(ii) The whole wage-payment-knowledge of daily working hours or monthly payment.
(iii) Definition of jobs.
(iv) Appropriate questionnaire for collecting information.
(v) Scientific technique of collecting the data.
3. Group Similar Jobs into Pay Grades. After the results of job analysis and salary surveys
have been received, the committee can turn to the task of assigning pay rates to each job, but
it will usually want to first group jobs into pay grades. A pay grade is comprises the jobs of
approximately equal difficulty or importance as determined by job evaluation. Pay grading
is essential for pay purposes because instead of having to deal with hundreds of pay rates,
the committee might only have to focus on a few.
4. Price Each Pay Grade. The next step is to assign pay rates to pay grades. Assigning pay
rates to each pay grade is usually accomplished with a wage curve. The wage curve depicts
graphically the pay rates currently being paid for jobs in each pay grade, relative to the points
or ranking assigned to each job or grade by the job evaluation. The purpose of wage curve is
to show the relationship between (i) the value of the job as determined by one of the job
evaluation methods and (ii) the current average pay rates for the grades.
5. Fine-Tune Pay Rates. Fine tuning involves correcting out of line rates and developing rate
ranges.
(i) Correcting out of Line Rates. The average current pay for a job may be too high or too
low, relative to other jobs in the firm. If a rate falls well below the line, a pay rise for that
job may be required. If the rate falls well above the wage line, pay cuts or a pay freeze
may be required.
(ii) Developing Rate Ranges. Most employers do not pay just one rate for all jobs in a particular
pay grade. Instead, they develop rate ranges for each grade so that there might be different
levels and corresponding pay rates within each pay grade. The rate is usually built around
the wage line or curve. One alternative is to arbitrarily decide on a maximum and
minimum rate for each grade. As an alternative, some employers allow the rate for each
grade to become wider for the higher pay ranges reflecting the greater demands and
performance variability inherent in these more complex jobs.
6. Wage Administration Rules. The development of rules of wage administration has to be done
in the next step. It is considered advisable in the interests of the concern and the employees
that the information about average salaries and ranges in the salaries of group should be
made known to the employees concerned; for secrecy in this matter may create dissatisfaction
and it may also vitiate the potential motivating effects of disclosure. Finally, the employee is
appraised and the wage is fixed for the grade he is found fit.
Types of Wages
Determination of reasonable wages is a difficult task for the management and so they should give
adequate attention to this area. However, different types of wage payment can be divided into three
parts:
1. Time wage
2. Piece wage
3. Wage incentive plan
1. Time wage. In this type the worker is given remuneration according to time. This type of
remuneration may be per hour, per day or per month or per year. There exists no relationship
between the quantum of work and the wage. This type is in operation in all industries in India.
This plan is very simple to understand. The worker works after due thinking and with
convenience. However it encourages the tendency of prolonging or delaying the work
unnecessarily. Moreover, it is very difficult to measure the productivity of the workers under
this type of plan.
2. Piece Rate System. In this type of plan, a worker gets remuneration according to his output
irrespective of the time he takes in finishing his job. Here, the payment of remuneration is
related to work and not to time. Under this type, the workers are encouraged to earn more and
more. The more the output is, the more the remuneration is. The workers are also at liberty for
their job with interest and they need not be supervised. However, this type of wage payment is
not suitable for commodities of artistic taste. Moreover, the quality of goods goes down.
3. Wage incentive Plan. This type of wage payment is the combination of two types the above
referred. Efforts have been made here to obtain the advantages of both these types while avoiding
their disadvantages.
This includes :
(a) Halsey Premium Scheme. Halsey premium plan is a combination of time and speed bases
of payment and the minimum wages are guaranteed to every worker. Under this scheme if
a worker gives an output more than the fixed standard job, he is given about 33% to 50% of
the remuneration for that job as bonus. Here a standard of output is fixed and a standard
of time is also fixed for the completion of that job before hand. If the job of fixed standard is
completed with the standard time fixed for the purpose, the worker gets his fixed wages.
But, if he completes the job before the fixed standard time and, thereby, saves some time, he
gets a fixed percentage of his wages for the time so saved as bonus.
(b) Rowan Premium Scheme. This plan is an improvement upon Halsey Plan. Under this plan,
premium is that proportion of the wages for the time taken which the time saved bears to
the standard time. The credit of this incentive premium method goes to Rowan of Scotland.
The worker is paid wages at normal rates for the duration he has worked and is paid extra
money in the form of premium on the basis of the time he has saved. Under this scheme, the
standard work and the standard time both are fixed. The wages for the time saved will
increase in the same percentage that is equal to the proportion the time saved bears to
standard time. The premium for the time saved cannot be more than the total standard
wages. Thus, a worker cannot get cleverly wages more than needed.
(c) Taylor’s Plan. F.W Taylor suggested differential piece rate plan as an alternative to time
rate system which he considered as unscientific and lacks incentive elements. In his, Taylor
did not provide for minimum guarantee wage payment to each workers. Taylor plan is
based on wages per unit. In other words, a worker is paid wages in accordance with his
output. Higher price rate is fixed for the workers who give production over and above the
standard workload fixed. The lower rate is fixed for the workers who give production
below the standard workload fixed.
(d) Merrick Plan. This plan is somewhat a modified form of Taylor’s plan. This plan offers
three grade piece rates than the two offered in the Taylor’s plan. The workers who produce
less than 83% of standard output are paid are basic piece rate. Those producing form 83%
to 100% of the standard output are paid 110% of basic rate ..Lastly the workers Producing
more than 110% of basic piece rate .
I. First limit is for new workers and is very low.
II. Second limit is for workers with average efficiency.
III. Third limit is for very efficient workers.
(e) Gantt Plan. This is also a modified form of Taylor plan. In it, wages are fixed on the
basis of time. On the other hand, the efficient workers are given wages per unit. Thus, the
workers who give more output get their wages at enhanced rates. If a workers achieves
excel it, gets extra wages varying between 25% to 50% of the hourly rate for the time
allowed for the task. But if the workers are fail to complete the task within the standard
time, he receives the wages only actual time spent at the specified rate.
(f) Emerson Plan. This plan is a combination of Taylor, Merrick and Gantt plans. However,
a slight modification in these plans has been made and different rates of bonus have
been fixed under this plan. The amount of bonus increases with the increase in efficiency.
These percentages are as under:
1% bonus on 67.5% efficiency.
10% bonus on 90% efficiency.
20% + 30% extra on bonus on efficiency more than 100%.
(g) Profit-Sharing Scheme. Under this scheme, workers are given a certain percentage of profits
as bonus. But it suffers from one defect. Suppose, there is no profit in a particular year.
Workers will also not be given the bonus for that very year. The workers think that they
have been deceived by the employers and therefore, clash with them on this very issue.
This assumes the form of worker-management unrest and has its bad effect on the
production. This scheme is undoubtedly a new and better scheme. But, the trade unions
misuse the scheme.
(h) Scanlon Plan. Under this scheme, the workers are paid bonus equal to the percentage of
profits earned more than the profits earned last year by the organisation. 15% of the bonus
is deducted and this deduction is deposited in the fund which is distributed among the
workers in the year to come.
Overtime
allowance ion
talizat
Hospi
Leave
Policy Insurance
Indirect
Flexible Compensation
Timings
Leave Travel
Holiday
Homes Retirement
Benefits
(Types of wages in HRM)
Wage Differentials
Wage differentials mean differences or disparities in wages. Wages differ in different employments
or occupations, industries and localities and also between persons in the same employment or grade.
One therefore comes across such terms as occupational wage differentials, inter-industry, inter-firm,
inter-area or geographical differentials and personal differentials. In other words, wage differentials
may be as follows:
(i) Occupational Differentials. The reasons for occupational wage differentials can be varying
requirements of skill, knowledge, demand supply situation, degree of responsibilities etc. In
countries adopting a course of planned economic development, skill differentials play an
important role in manpower and employment programmes, for they considerably help in
bringing about an adequate supply of labour with skills corresponding to the requirements
of product plans.
(ii) Inter-firm Differentials. Inter-firm differentials reflect the relative wage levels of workers in
different plants in the same area and occupation. Differences in technological advancement,
managerial efficiency, financial capability, age and size of them, relative advantages and
disadvantages of supply of raw materials, power and availability of transport facilities- those
are also accounted for considerable disparities in inter-firm wage rates. Lack of co-ordination
among adjudication authorities, too, are responsible for such anomalies.
(iii) Inter-area or Regional Differentials. Such differentials arise when workers in the same
industry and the same occupational group, but living in different geographical areas, are
paid different wages. Regional wage differentials may be conceived in two senses. In the first
sense, they are merely a part of inter-industry differentials in a particular region. In the second
sense, they may represent real geographical differentials, resulting in the payment of different
rates for the same type of work. In both cases, regional differentials affect the supply of
manpower for various plants in different regions.
(iv) Inter-industry Differentials. These differentials arise when workers in the same occupation
and the same area but in different industries are paid different wages. Inter-industry
differentials reflect skill differentials. The industries paying higher wages have mostly been
industries with a large number of skilled workers, while those paying less have been industries
with a large proportion of unskilled and semi-skilled workers. Other factors influencing inter-
industry differentials are the extent of unionisation, the structure of product markets, the ability
to pay, labour-capital ratio, and the stage of development of an industry.
(v) Inter-personal Wage Differentials. These differentials are between workers in the same plant
and the same occupation. These may be due to differentials in sex, skills, age, knowledge or
experience
Wage Differential
The committee on fair wages recommended that wage differential should be established on the
basis of certain considerations :
m The degree of skill m The strain of work
m The experience involved m The training period
m The responsibility undertaken m The mental and physical requirement
m The disagreeableness of the task m Hazards
m Fatique involved.
JOB EVALUATION
Meaning
Job evaluation is the process of analysing and assessing various jobs systematically to ascertain
their relative worth in an organisation.
Job evaluation is an assessment of the relative worth of various jobs on the basis of a consistent
set of job and personal factors, such as qualifications and skills required.
The objective of job evaluation is to determine which jobs should get more pay than others.
Several methods such as job ranking, job grading, and factor comparison are employed in job
evaluation. Research indicates, however, that each method is nearly as accurate and reliable as the
other in ranking and pricing different jobs. Job evaluation forms the basis for wage and salary
negotiations.
Definitions of Job Evaluations

Below are given some important definitions of job analysis:
Job Evaluation involves determination of relative worth of each job for the purpose of establishing
wage and salary differentials. Relative worth is determined mainly on the basis of Job Description
and Job Specification only. Job Evaluation helps to determine wages and salary grades for all jobs.
Employees need to be compensated depending on the grades of jobs they perform. Remuneration
must be based on the relative worth of each job. Ignoring this basic principle results in inequitable
compensation and attendant ill effects on employees’ morale. A perception of inequity is a sure way
of De-motivating an employee.
m In the words of Dale Yoder, “Job evaluation is a practice which seeks to provide a degree of objectivity
in measuring the comparative value of jobs within an organisation and among similar organisations.”
m According to Bethel, Atwater and Smith et at, “Job evaluation as a personal term has both a
specific and genetic meaning specifically, it means job rating or the grading of occupations in terms of
duties ; generally it means the entire field of wages and salary administration along modern lines”
m According to Bureau of Labour Statistics, “Job evaluation is the evaluation or rating of job to
determine their position in job hierarchy. The evaluation may be achievement through assignment of
points or the use of some other systematic rating method for essential job requirements such as skill,
experience and responsibility.”
m In the words of Edwin B. Flippo. “Job evaluation is a systematic and orderly process of determining
the worth of a job in relation to other jobs.”
m According to International Labour Organisation, “Job evaluation may be defined as an attempt
to determine and compare the demands which the normal performance of particular job makes on normal
workers without taking account of the individual abilities or performance of the workers concerned.”
m According to Kimball and Kimball Jr., “Job evaluation represents an effort to determine the relative
value of every job in a plant and to determine what the fair basic wage for such a job should be.”
Jobs are evaluated on the basis of content and placed in order of importance. This establishes
Job Hierarchies, which becomes the basis for satisfactory wage differentials among various jobs.
Jobs are ranked (not jobholders)
The Job Evaluations Process

Job analysis describes a job. Job evaluation develops a plan for comparing jobs in terms of those
things the organisation considers important determinants of job worth. This process involves a
number of steps that will be briefly stated here and then discussed more fully.
m Job Analysis. The first step is a study of the jobs in the organisation. Through job analysis,
information on job content is obtained, together with an appreciation of worker requirements
for successful performance of the job. This information is recorded in the precise, consistent
language of a job description. This was the topic of chapter 10.
m Compensable Factors. The next step is deciding what the organisation “is paying for” —
that is, what factor or factors place one job at a higher level in the job hierarchy than another.
These compensable factors are the yardsticks used to determine the relative position of jobs.
In a sense, choosing compensable factors is the heart of job evaluation. Not only do these
factors place jobs in the organisation’s job hierarchy, but they also serve to inform job
incumbents which contributions are rewarded.
m Developing the Method. The third step in job evaluation is to select a method of appraising
the organisation’s jobs according to the factor(s) chosen. The method should permit consistent
placement of the organisation’s jobs containing more of the factors higher in the job hierarchy,
than those jobs lower in the hierarchy.
m Job Structure. The fourth step is comparing jobs to develop a job structure. This involves
choosing and assigning decision makers, reaching and recording decisions, and setting up
the job hierarchy.
m Wage Structure. The final step is pricing the job structure to arrive at a wage structure.
Features of Job Evaluations

The primary objective of job evaluation is to find out the value of work, but this is a value which
varies from time to time and from place to place under the influence of certain economic pressure,
not least of which is the worth of money itself. The main features of job evaluations are:
m Job evaluation helps the management to maintain high levels of employee productivity and
employee satisfaction.
m Job evaluation does not design wage structure, it helps in rationalising the system by reducing
number of separate and different rates.
m To supply bases for wage negotiation founded on facts rather than on vague intermediate
ideas.
m Job evaluation is not made by individuals rather it is done by group of experts.
m Job evaluation determines the value of job. Further the value of each of the aspects such as
skill and responsibility levels are also related and studied in connection with the job.
m It attempts to assess jobs, not people.
m Job evaluation is the output provided by job analysis.
The Objectives of Job Evaluations

m To establish an orderly, rational, systematic structure of jobs based on their worth to the
organisation.
m To justify an existing pay rate structure or to develop one that provides for internal equity.
m To assist in setting pay rates that are comparable to those of in similar jobs in other
organisations to compete in market place for best talent.
m To provide a rational basis for negotiating pay rates when bargaining collectively with a
recognised union.
m To ensure the fair and equitable compensation of employees in relation to their duties.
m To ensure equity in pay for jobs of similar skill, effort, responsibility and working conditions by
using a system that consistently and accurately assesses differences in relative value among
jobs.
m To establish a framework of procedures to determine the grade levels and the consequent
salary range for new jobs or jobs which have evolved and changed.
m To identify a ladder of progression for future movement to all employees interested in
improving their compensation.
m To comply with equal pay legislation and regulations determining pay differences according
to job content.
m To develop a base for merit or pay-for-performance.
Advantages of Job Evaluations

Job evaluation is a process of determining the relative worth of a job. It is a process which is helpful
even for framing compensation plans by the personnel manager. Job evaluation as a process is
advantageous to a company in many ways:
1. Reduction in inequalities in salary structure. It is found that people and their motivation is
dependent upon how well they are being paid. Therefore the main objective of job evaluation
is to have external and internal consistency in salary structure so that inequalities in salaries
are reduced.
2. Specialisation. Because of division of labour and thereby specialisation, a large number of
enterprises have got hundred jobs and many employees to perform them. Therefore, an attempt
should be made to define a job and thereby fix salaries for it. This is possible only through
job evaluation.
3. Helps in selection of employees. The job evaluation information can be helpful at the time
of selection of candidates. The factors that are determined for job evaluation can be taken
into account while selecting the employees.
4. Harmonious relationship between employees and manager. Through job evaluation,
harmonious and congenial relations can be maintained between employees and management,
so that all kinds of salaries controversies can be minimised.
5. Standardisation. The process of determining the salary differentials for different jobs become
standardised through job evaluation. This helps in bringing uniformity into salary structure.
6. Relevance of new jobs. Through job evaluation, one can understand the relative value of
new jobs in a concern.
Limitation of Job Evaluations

1. Though there are many ways of applying job evaluation in a flexible manner, rapid changes
in technology and in the supply of and demand for particular skills, create problems of
adjustment that may need further study.
2. When job evaluation results in substantial changes in the existing wage structure, the
possibility of implementing these changes in a relatively short period may be restricted by
the financial limits within which the firm has to operate.
3. When there are a large proportion of incentive workers, it may be difficult to maintain a
reasonable and acceptable structure of relative earnings.
4. The process of job rating is, to some extent, inexact because some of the factors and degrees
can be measured with accuracy.
5. Job evaluation takes a long time to complete, requires specialised technical personnel and is
quite expensive.
Job Evaluations Methods

After job analysis preparations of job descriptions comes the essential stage of job evaluation, namely,
the systematic comparison of jobs in order to establish a job hierarchy. The techniques which have
been commonly used tend to fall into one of the two main categories: Non-analytical or Non-
quantitative or summary methods & Analytical or quantitative methods.
1. Qualitative methods are:
m Job Ranking
m Job Classification or grading
2. Quantitative methods are:
m Factor Comparison
m Point rating or assessment
Qualitative Methods
1. Job Ranking Methods
This is the oldest and simplest method of job evaluation. This is generally used in smaller units
where the job raters know all the jobs quite well. In this method no effort is made to break a job
down into its elements or factors, but the aim is to rather judge the job as a whole and determine the
relative value by ranking one whole job against another whole job. In this technique ranking is done
according to ‘whole job’ rather than a number of compensable efforts. In it a committee constituted
of several executives’ studies job descriptions. Then jobs are arranged from highest to lowest, in
order of their value or merit to the organisation. Jobs also can be arranged according to the relative
difficulty in performing them. So jobs are ranked in order of importance beginning with the most
important to the least important jobs in the organisation. Job at the top of the list has the highest
value and obviously the job at the bottom of the list will have the lowest value. This procedure is
followed for jobs in each department and an attempt is then made to equate or compare jobs at
various levels among the several departments. When this is completed, grade levels are defined and
salary groups are formed. Jobs are placed into different salary ranges more or less on a predominated
basis in their rank order. An expert committee consisting of well-informed executives may, in relatively
short time, rank several hundred jobs in various departments. In most of the instances, the ranking
are not only based on job descriptions but on the raters general knowledge of the position.
Advantages
m Simple. The system is quite simple. A company does not face any difficulty in installing this
system.
m Easy. As the workers understand the process there is no problem in administering this system.
m Less time. Less time is taken in evaluating the jobs.
m Suitable for smaller concern. This system is suitable for smaller organisation where the rates
are fully acquainted with all the existing jobs in the enterprise.
Disadvantages
m No scientific approach. As there is no standard for an analysis of the whole job position,
different bases of comparison may occur. Importance of the job may be arbitrarily ranked
resulting in differences in similar jobs and may be resented by the employees.
m No fair judgement. This method decides the ranks of the jobs on the basis of their importance
but does not tell the reasons. So ranks judgements are subjective and the fairness of the
judgement cannot be advocated.
m Difficult for large organisation. In a complex industrial organisation, it is not possible to be
familiar with all the jobs and thus general description will not enable correct assessment of
the relative importance of the jobs
2. Job Classification And Grading Methods

This method is one step further in the first method. This is similar to ranking method because in
both methods neither points nor money values are assigned to classify the jobs. No complicated
procedures are followed. It was evolved as an improvement over the ranking method. Job descriptions
and job specifications are widely used in it. The committee of executives goes through each job
description and carefully weights it in the light of certain factors like skill, responsibilities, experience
and type of work etc.
The Classification Job Evaluation System is based on pre-established general definitions of the
kind of work that would be found at each level, grade or class in an organisation. Each job is reviewed,
evaluated and placed into a class or grade. The Classification Job Evaluation System is most
commonly found in the public sector and heavily unionised industries.
Separate classes may include office, clerical, managerial, personnel etc. In this way, it assigns
each job to a particular grade or class. For each grade or class, there are different rates of wage.
Following table is a brief description of such a classification in an office:
Grade Description of Job-Classification

I. Grade Unskilled This generally covers the jobs of clerical nature, which requires
accuracy, reliability etc. So special training is required.
II. Grade Skilled This also covers the job with the nature of clerical work. But under
this personnel require training programmes. This may include:
draftsman, ledger man, laboratory assistant etc.
III. Grade Interpretative This requires a special skill to perform the jobs. These may be of
clerical or non-clerical nature. This includes: foremans, layout
draftsman etc. This is also of non-supervisory nature.
IV. Grade Creative This involves a high degree of creativity and special knowledge.
This covers engineers, salesman, staff supervisor, designers etc.
V. Grade Executive This is related to the supervisory and creative jobs category. This
generally covers the managers of all different departments.
VI. Grade Administrative This is related with a little bit policy formulation and
implementation. They have to work with great sense of
responsibility. This may include: division manager, district sales
managers, works engineers and treasurer etc.
VII. Grade Policy Their position is of the top in a concern. They have to formulate
the policies of a company. This cover the top management posts
like directors, managers etc.
Advantages
1. Accurate. Under this, it is possible to evaluate more accurately the job descriptions since the
analysis is based on job descriptions.
2. Easy to understand. The installation of this system is also comparatively easy as there does
not arise any difficulty in explaining the system to the employees. It is simple to operate and
understand, as it does not take much time or require technical help.
3. Suitability. It is most suitable to the government departments. It is rarely applied in the
industrial groups.
4. Acceptable wage-criteria. This also helps to create an effective wage rate. As grouping of
jobs into classification makes pay determination problems administratively easier to handle.
5. New jobs adjustment and their ranking. If a new job is to be introduced in a company, it is
easy to associate it with a class or grade which is comparatively a less difficult task.
Disadvantages
1. This is also a subjective method. Since personal evaluations by executives establish the major
classes and decide into which grade each job shall be placed.
2. This system is not suitable for a large scale company. The jobs are classified by total contents
and by a factor that comprise them. Therefore it is difficult to compile any comprehensive
class specification for a large scale organisation with a number of complex jobs.
3. If in a concern detailed job analysis is not made, the judgement in respect of a total range of
jobs may lead to incorrect results/classification.
4. The existing wage and salary rates affect the grading of jobs. The raters justify the existing
salary ranges. If the job description justifies the lowering of the grade of a particular job, it
cannot be done because labour normally does not accept any adverse condition of service.
5. Writing of a grade description is also a very difficult task. This system becomes more difficult
to operate if the number of jobs increases in a concern.
Quantitative Methods
1. The Factor Comparison Method
This method is a combination of the ranking and point system. Thomas E. Hitten was the first to
originate factor comparison method of job evaluation. As originally developed this method involves
ranking of jobs in respect of certain factors and usually involves the assigning of money wages to
the job depending upon the ranking. This is more systematic and scientific method. Under this
method, jobs are evaluated by some standards. In this method, instead of ranking complete jobs,
each job is ranked according to series of factors. All jobs are compared to each other for the purpose
of determining their relative importance by selecting four or five major job elements which are more
common or less common to all jobs. These elements are not pre-determined. These are chosen on the
basis of job analysis. The five factors which are commonly used are
(i) mental requirement
(ii) skill
(iii) physical requirement
(iv) responsibilities and
(v) working conditions.
The number of factors may be more than five. Pay will be assigned in this method by comparing
the weights of the factor required for each job, i.e., the present wages paid for key jobs may be divided
among the factors weighted by importance. So the wages are assigned to the job in comparison to its
ranking on each job factor.
The major steps in this system consist of the following:
m Selection of factors. They may be skill, mental and educational requirements, physical
requirements responsibility working conditions. The persons writing job specifications are
generally provided with a set of dimensions within which they have to perform this important
work.
m Selection of key jobs. Key jobs serve as a standard against which all other jobs are compared.
Generally a key job is one whose contents has become stabilised over a period of time and
whose wage rate is considered to satisfactory and acceptable by the management and union.
The key jobs should be a good sample representing the entire range. It is suggested that 15 to
20 jobs should be picked. All of these should be clearly describable and capable of analysis
in terms of factors.
m Ranking of Key jobs. Rank the selected jobs under each factor (by each and every member of
the job evaluation committee) independently. Ranking is made individually and then a meeting
is held to develop a consensus.
m Assign money value. Money value is assigned to each factor so as to determine the wage
rate for each key job. The basic pay for each ‘key’ job is allocated to each factor. This should
reflect a range from the lowest to the highest.
m Comparing all jobs with key jobs. All other jobs are compared with the list of key jobs. This
is done to know their relative importance and position in the scale of jobs.
An illustration of how the factor comparison method works is given below:
TABLE Ranking Jobs by Factor Comparison.
Job Skill Mental Physical Responsibility Working
Requirement Requirements Requirements Conditions
Toolmaker 1 1 2 1 4
Mechanist 2 2 3 2 3
Electrician 3 3 4 3 5
Assembler 4 4 5 5 2
Janitor 5 5 1 4 1
Advantages
1. Factor comparison method permits a more systematic comparison of jobs than the non-
analytical methods. It is a systematic, quantifiable method for which detailed step by step
instructions are available.
2. The system results in more accurate job evaluation as it is more objective because weights are
not selected arbitrarily.
3. It is flexible as it has no upper limit on rating that a job may receive on a factor.
4. The reliability and validity of the system are greater than the same statistical measures
obtained from group standardised job analysis plans.
5. The procedure of rating new jobs by comparing with other standards or key job is logical
and not too difficult to accomplish.
6. It utilises few factors and thereby reduces the likelihood of overlapping.
7. It is a scheme that in corporate money value, determination of wage rates is automatic.
Disadvantages
1. This method is comparatively complicated to apply and it is difficult to explain to workers.
2. It is costly to install, and somewhat difficult to operate for anyone who is not acquainted
with the general nature of job-evaluation techniques.
3. The use of present wages for the key jobs may initially create errors into the plan. The contents
and the value of these jobs may change over a period of time and they will lead to future
errors.
4. It goes against the common belief that the procedure of evaluating jobs and fixing their wages
should be kept separate.
5. The use of five factors is a growth of the technique developed by its organisations. And using
the same five factors for all organisation and for all jobs in an organisation may not always
be appropriate.
6. It is a very expensive method/system of job evaluation because experts have to be appointed
particularly in selecting weights which are based in actual analysis.
2. Point Ranking Methods
This is the most widely used method for job evaluation. It along with factor comparison method,
involves a more detailed, quantitative and analytical approach to the measurement of job worth.
This method is widely used currently. In this method jobs are expressed in terms of key factors.
Then various points are assigned to each factor in order of their importance. Then points are summed
up to determine the wage rate for the job. Jobs with similar point totals are placed in similar pay
grades. The point rating procedure has to clearly define from very start. By and large, its steps fall
into two distinct stages, namely preparing and evaluation plan and schedule (by defining and
weighting factors) and grading jobs by reference to this schedule. This involves the following steps:
m Listing of Jobs. The jobs have to be determined first which are to be evaluated. They are usually
clustered. This should cover all the categories of jobs: skilled, unskilled, semi-skilled,
professional, executives etc.
m Selecting and defining factors. Identify the factors common to all the identified jobs such as
skill, effort, responsibility, job conditions etc. There should be sufficient number of factors to
evaluate all aspects of the jobs. The number of factors will depend upon the nature of the
jobs.
m Dividing the factors into degree. Once the factors are selected they must be divided into
degrees to make them operational. The point method generally uses from four to six degrees
for each factor. It is advisable to an even number of degrees in the development of point
method and the same number of degrees should be used for each factor in order to maintain
consistency in the job evaluation plan.
m Weighting the factors. The relative importance of each factor selected has to be determined.
In other words, the factors must be weighted. There is no scientific or readymade method for
weighting factors. It is generally done pragmatically and will depend upon the knowledge of
the work of the enterprise. Weighting will also depend on the firm’s objectives and policies.
m Allocations points to each degree. Once the relative importance of the factors has been
determined in a preliminary way and the factors suitably divided into degrees, each degree
must be assigned a numerical value. These are the values that will be used in determining
the total point values of jobs.
m Evaluation of Jobs. Once the factor plan is adopted, it is usual to prepare an evaluation
hand-book explaining the procedure to be followed and summarising all the elements required
for evaluation.
m Assign money value points. For this purpose points are added to give the total value of a job:
its value of a job; its value is then translated into terms of money with a pre-determined
formula.
Advantages
m The point method is a superior and widely used method of evaluating jobs. It gives us a
numerical basis for wage differentials. By analysing a job by factors it is usually possible to
obtain a high measure of agreements on job value.
m Once the scales are developed, they can be used for a long time.
m It accounts for differences in wage rates for various jobs on the strength of job factors. Jobs
may change over time, but the rating scale established under the point method remain
unaffected.
m It has the ability of handling a large number of jobs and enjoys stability as long as the factor
remains relevant.
Disadvantages
m This method is a costly affair. The development and installation of the system calls of heavy
expenditure.
m This is a complex method. Adoption of the whole procedure is a very difficult and time-
consuming process.
m There may be wide fluctuations in the compensable factors with the change in technology,
values of employees etc.
Employees, trade union representatives, management and other interest parties may perceive
differently in selecting a compensable factors, in giving weight age etc.
PRINCIPLE OF JOB EVALUATION

m Definition. Jobs must be clearly defined such that they are identifiable and easily
distinguishable. These jobs must then be part of the job description.
m Evaluation. A job evaluation scheme must be arrived upon and used as a standard and all
jobs in the organisation must be evaluated as per that scheme only.
m Job Understanding. Job evaluators need to have deep insights into the job design process.
They must have a methodical understanding of various tasks involved.
m Concern. Job evaluation must be concerned with the job and not with the person, i.e. it is the
job that has to be evaluated and not the person
m Assessment. The assessment has to be carried out in an acceptable manner and by competent
people. Further, it is based on judgement and is not scientific but can however be used to
make objective judgements if used correctly.
With organisations changing continuously in every sphere of operations, be it the way they
conduct their business, they way they hire and manage people, there is a huge change in the processes
that drive this change. Job evaluation and its technique are not immune to it. The techniques are
changing very fast. There are organisations still that stick to existing schemes of job evaluation.
Evaluations based upon old existent standards are time consuming in many cases. Organisations
do not want to spend time on writing new jobs and making evaluations afresh. Those that do this
may need to rethink
GRIEVANCE HANDLING AND DISCIPLINARY ACTION

Grievances in Industry
Grievance means any type of dissatisfaction or discontentment’s arising out of factors related to an
employee’s job which he thinks are unfair. A grievance arises when an employee feels that something
has happened or is happening to him which he thinks is unfair, unjust or inequitable. In an
organisation, a grievance may arise due to several factors such as:
1. Violation of management’s responsibility such as poor working conditions
2. Violation of company’s rules and regulations
3. Violation of labour laws
4. Violation of natural rules of justice such as unfair treatment in promotion, etc.
Various sources of grievance may be categorised under three heads: (i) management policies, (ii)
working conditions, and (iii) personal factors
1. Grievance resulting from management policies include:
m Wage rates
m Leave policy
m Overtime
m Lack of career planning
m Role conflicts
m Lack of regard for collective agreement
m Disparity between skill of worker and job responsibility
2. Grievance resulting from working conditions includes:
m Poor safety and bad physical conditions
m Unavailability of tools and proper machinery
m Negative approach to discipline
m Unrealistic targets
3. Grievance resulting from inter-personal factors includes
m Poor relationships with team members
m Autocratic leadership style of superiors
m Poor relations with seniors
Grievances Procedure
Grievance procedure is a Step by step process an employee must follow to get his or her complaint
addressed satisfactorily. In this process, the formal (written) complaint moves from one level of
authority (of the firm and the union) to the next higher level.
Grievance procedure is a formal communication between an employee and the management
designed for the settlement of a grievance. The grievance procedures differ from organisation to
organisation.
m Open door policy
m Step ladder policy
Open door policy. Under this policy, the aggrieved employee is free to meet the top executives of
the organisation and get his grievances redressed. Such a policy works well only in small
organisations. However, in bigger organisations, top management executives are usually busy with
other concerned matters of the company. Moreover, it is believed that open door policy is suitable
for executives; operational employees may feel shy to go to top management.
Step ladder policy. Under this policy, the aggrieved employee has to follow a step by step
procedure for getting his grievance redressed. In this procedure, whenever an employee is confronted
with a grievance, he presents his problem to his immediate supervisor. If the employee is not satisfied
with superior’s decision, then he discusses his grievance with the departmental head. The
departmental head discusses the problem with joint grievance committees to find a solution. However,
if the committee also fails to redress the grievance, then it may be referred to chief executive. If the
chief executive also fails to redress the grievance, then such a grievance is referred to voluntary
arbitration where the award of arbitrator is binding on both the parties.
Model Grievance Procedure

The 15th session of Indian Labor Conference held in 1957 emphasised the need of an established
grievance procedure for the country which would be acceptable to unions as well as to management.
In the 16th session of Indian Labor Conference, a model for grievance procedure was drawn up.
This model helps in creation of grievance machinery. According to it, workers’ representatives are
to be elected for a department or their union is to nominate them. Management has to specify the
persons in each department who are to be approached first and the departmental heads who are
supposed to be approached in the second step. The Model Grievance Procedure specifies the details
of all the steps that are to be followed while redressing grievances. These steps are:
STEP 1. In the first step the grievance is to be submitted to departmental representative, who is a
representative of management. He has to give his answer within 48 hours.
STEP 2. If the departmental representative fails to provide a solution, the aggrieved employee can
take his grievance to head of the department, who has to give his decision within 3 days.
STEP 3. If the aggrieved employee is not satisfied with the decision of departmental head, he can
take the grievance to Grievance Committee. The Grievance Committee makes its recommendations
to the manager within 7 days in the form of a report. The final decision of the management on the
report of Grievance Committee must be communicated to the aggrieved employee within three days
of the receipt of report. An appeal for revision of final decision can be made by the worker if he is
not satisfied with it. The management must communicate its decision to the worker within 7 days.
STEP 4. If the grievance still remains unsettled, the case may be referred to voluntary arbitration.
Employee Grievances – Effective Ways of Handling Grievances

The manager should immediately identify all grievances and must take appropriate steps to eliminate
the causes of such grievances so that the employees remain loyal and committed to their work.
Effective grievance management is an essential part of personnel management. The managers should
adopt the following approach to manage grievance effectively :
1. Quick action. As soon as the grievance arises, it should be identified and resolved. Training
must be given to the managers to effectively and timely manage a grievance. This will lower
the detrimental effects of grievance on the employees and their performance.
2. Acknowledging grievance. The manager must acknowledge the grievance put forward by
the employee as manifestation of true and real feelings of the employees. Acknowledgment
by the manager implies that the manager is eager to look into the complaint impartially and
without any bias. This will create a conducive work environment with instances of grievance
reduced.
3. Gathering facts. The managers should gather appropriate and sufficient facts explaining the
grievance’s nature. A record of such facts must be maintained so that these can be used in
later stage of grievance redressed.
4. Examining the causes of grievance. The actual cause of grievance should be identified.
Accordingly remedial actions should be taken to prevent repetition of the grievance.
5. Decisioning. After identifying the causes of grievance, alternative course of actions should
be thought of to manage the grievance. The effect of each course of action on the existing and
future management policies and procedure should be analyzed and accordingly decision
should be taken by the manager.
6. Execution and review. The manager should execute the decision quickly, ignoring the fact,
that it may or may not hurt the employees concerned. After implementing the decision, a
follow-up must be there to ensure that the grievance has been resolved completely and
adequately. An effective grievance procedure ensures an amiable work environment because
it redresses the grievance to mutual satisfaction of both the employees and the managers. It
also helps the management to frame policies and procedures acceptable to the employees. It
becomes an effective medium for the employees to express the feelings, discontent and
dissatisfaction openly and formally.
EMPLOYEE DISCIPLINE
Discipline is the regulation and modulation of human activities to produce a controlled performance.
The real purpose of discipline is quite simple. It is to encourage employees to confirm to established
standards of job performance and to behave sensibly and safely at work. Discipline is essential to
all organised group action.
Discipline is employee learning that promotes self-control, dedication, and orderly conduct. In
relation to employees in the U.S., discipline is generally used in a restricted sense to mean
punishment. Consequently, the written procedures used to punish employees for job deficiencies
are called disciplinary procedures. Punishment is the process of either administering an unpleasant
stimulus, such as a warning letter or a suspension, or withholding a reward, such as not granting a
scheduled pay increase because of an employee’s job deficiencies. Punishment is only one form of
discipline; other forms are positive reinforcement, including commendations and praise, and human
resources development.
TOO HIGH - People are insulted. Productivity drops.
TOO LOW - People take liberties. Productivity drops.
Definitions of Discipline
According to the business directory, employee discipline is defined as the regulations or conditions
that are imposed on employees by management in order to either correct or prevent behaviours that
are detrimental to an organisation. The purpose of employee discipline is not to embarrass or degrade
an employee.
According to Richard D. Calhoen, “Discipline may be considered as a force that prompts
individuals or groups to observe the rules, regulations and procedures which are deemed to be
necessary for the effective functioning of an organisation.”
According to William R. Spreigel and Edward Schultz, “The force that prompts an individual
or a group to observe the rules, regulations and procedures which are deemed to be necessary to the
attainment of an objective, it is force or fear of force which restrains an individual or a group from
doing things which are deemed to be, destructive of group objectives. If is also the exercise of restraint
or the enforcement of penalties for the violation of group regulations.”
According to Ordway Tead, “Discipline is the order, members of an organisation who adhere to
they desire to cooperate harmoniously in forwarding the end which the group has in view.”
m Discipline should be viewed as a condition within an organisation whereby Employees know
what is expected of them in terms of the organisation’s rules, Standards and policies and
what the consequences are of infractions. —Rue & Byars, 1996
m Discipline is a procedure that corrects or punishes a subordinate because a rule of procedure
has been violated. —Dessler, 2001
From the above definitions, you can find the following elements:
m The objective is orderly behaviour.
m Orderly behaviour is a group desire.
m Orderly behaviour assists the attainment of organisational goals
m When members behave appropriately as per rules, there is no need for disciplinary action.
This is self discipline.
m When some members violate the rules and regulations, punitive actions are needed to correct
them.
m Punishment serves two purposes: first, to directly punish an individual for an offence and
secondly, to set an example for others not to violate the rules and regulations.
Those employees who observe the rules and standards are rewarded by praise, by security and
often by advancement. Those who cannot stay in line or measure up to performance standards are
penalised in such a way that they can clearly learn what acceptable performance and behaviour
are. Most employees recognise this system as a legitimate way to preserve order and safety and to
keep everyone working towards the same organisational goals and standards. For most employees,
self discipline is the best discipline. As often as not, the need to impose penalties is a fault of the
management as well as of the individual worker. For that reason alone, a supervisor should resort
to disciplinary action only after all else fails. Discipline should never be used as a show of authority
or power on the supervisor’s part.
Nature of Discipline
Maintenance of discipline is a prerequisite to the attainment of maximum productivity, not only of
the firm but also for the entire nation. It is only because of this that.
After all everything is a matter of realisation! No amount of pressure can succeed in the long
run unless one is committed to improve or learn.
True discipline is educational because it changes the very attitude of the workers towards their
work and workplace. It must, therefore, be understood that discipline must be developed from within.
Another important point that you should note here is that discipline has to be reformative and
not punitive. We should aim at development rather than punishing. I am sure that you will adhere
to something that is explained to you in a calm and matured way rather than that is ordered!
According to Megginson, discipline involves the following three things.
1. Self-discipline. 2. Orderly behaviour. 3. Punishment
Discipline can Either be Positive or Negative

1. Positive Discipline
Positive discipline involves creation of an atmosphere in the organisation whereby employees
willingly conform to the established rules and regulations. Positive discipline can be achieved
through rewards and effective leadership.
According to Spiegel, “Positive discipline does not replace reason but applies reason to the achievement
of a common objective. Positive Discipline does not restrict the individual freedom but enables him to have a
greater degree of self-expression in striving to achieve the group objective, which he identifies as his own.”
It means that positive Discipline is not that ideal that it can’t be achieved. It also does not imply
that an individual’s freedom is restricted. Rather it provides better chances to an individual for
expressing himself. The individual in this process, is able to bridge the gap between his and the
group goals.
It is also to be noted that positive discipline promotes cooperating and coordination with a
minimum of formal organisation. It reduces the need for strict supervision required to maintain
standards and observe rules and regulations. Everyone is answerable to oneself and therefore one
is not answerable to anyone else.
2. Negative Discipline
Under negative discipline, penalties are used to force the workers to obey rules and regulations. In
other words, workers try to adhere to rules and regulations out of fear of warnings, penalties and
other forms of punishment. This approach to discipline is called negative or punitive approach.
This is an unfavourable state that subjects the employees to frustration, and consequently results
in low morale. Let me ask you a question, how will you react if you are punished for a wrong act of
yours? Will you welcome it? I am sure it would be much better that an environment is created where
one does not commit any wrongful act. If at all there is some indiscipline, it has to be handled in a
calm and matured way.
There is another drawback related to negative discipline. An employee goes astray in his
behaviour whenever there is a slightest possibility of escaping the punishment or when he believes
that his action will go unnoticed.
Progressive and development oriented managers adopt a positive approach to discipline rather
than negative approach. In the positive approach, attempts are made to educate the workers the
values of discipline. The workers should be taught self-discipline. Disciplinary action should be
taken only in exceptional circumstances where no other alternative is left. Disciplinary action should
always incorporate consideration of just cause and due process.
Some of the symptoms of general indiscipline can be:
m Absence from work
m Absenteeism
m Abusing customers
m Abusive language toward supervisor
m Assault and fighting among employees
m Causing unsafe working conditions
m Damage to or loss of machinery or materials Dishonesty
m Disloyalty to employer (includes competing with employer, conflict of interest)
m Falsifying company records (including time records, production records)
m Falsifying employment application
m Gambling
m Horseplay
m Incompetence (including low productivity)
m Insubordination
m Leaving place of work (including quitting early)
m Loafing
m Misconduct during a strike
m Negligence
m Obscene or immoral conduct
m Participation in a prohibited strike
m Possession or use of drugs or intoxicants
m Profane or abusive language (not toward supervisor)
m Refusal to accept a job assignment
m Refusal to work overtime
m Sleeping on the job
m Slowdown
m Tardiness
m Theft Threat to or assault of management representative
Factors Necessary for Effective Disciplinary System

Discipline is the key to success. Theodore Roosevelt has said “With self-discipline almost everything
is possible”. Self discipline makes employee realise what is required at work. Discipline can be
positively related to performance. It is the bridge between goals and accomplishments. Effective
discipline should be aimed at the behavior, and not at the employee personality. This is because the
reason for discipline is to improve performance rather than punishing the employee.
Factors necessary for effective disciplinary system include:
1. Training of supervisors is necessary. Supervisors and managers need to be trained on when
and how discipline should be used. It is necessary to provide training on counselling skills
as these skills are used while dealing with problem employees. Moreover, discipline decisions
taken by trained supervisors are considered fair by both employees and managers.
2. Centralisation of discipline. Centralised means that the discipline decisions should be
uniform throughout the organisation. The greater the uniformity, higher will be the
effectiveness of discipline procedure.
3. Impersonal discipline. Discipline should be handled impersonally. Managers should try to
minimise the ill feelings arising out of the decisions by judging the offensive behavior and
not by judging the person. Managers should limit their emotional involvement in the
disciplinary sessions.
4. Notification of conduct that may result in discipline. Actions that lead to misconduct can be
listed and documented so the employees are aware of such actions. This will unable them to
claim that they have not been notified, in advance, regarding the same.
5. Information regarding penalties. The employer should define the penalties and other actions
like warnings, reprimands, discharge and dismissal well in advance. All these action plans
must be communicated to the employees.
6. Discipline shall be progressive. Discipline system should be progressive in nature. In a
progressive discipline approach the severity of actions to modify behavior increases with every
step as the employee continues to show improper behavior. The advantage of this approach
is that employees can’t take it for granted.
7. Documentation. Effective discipline requires accurate, written record keeping and written
notification to the employees. Thus less chance will be left for the employee to say the he
“did not know” about the policy.
8. Discipline should be fair. The disciplinary decision should be fair enough for the employee.
Both over-penalisation and under-penalisation are considered to be unfair for the problem
employee. Moreover, an internal fairness is to be maintained, that is, two employees who
have committed the same offense should be equally punished.
9. Discipline shall be flexible and consistent. The manager administering discipline must
consider the effect of actions taken by other managers and of other actions taken in the past.
Consistent discipline helps to set limits and informs people about what they can and cannot
do. Inconsistent discipline leads to confusion and uncertainty.
10. Disciplinary action should be prompt. The effective discipline should be immediate. The longer
time lag between the misconduct offense and the disciplinary action will result in
ineffectiveness of the discipline.
Features of an Effective Disciplinary Process

A disciplinary procedure is directed against the worker’s behavior rather than the person. Key features
of an effective process include the following principles of disciplining workers.
m The length of time between the misconduct and the discipline should be short. For discipline
to be most effective, it must be administered as soon as possible, but without making an
emotional, irrational decision.
m Disciplinary action should be preceded by advance warning. Noting rule infractions in an
employee’s record is not sufficient to support disciplinary action. An employee who is not
advised of an infraction is not considered to have been given a warning. Noting that the
employee was advised of the infraction and having the employee sign a discipline form are
both valid employment practices. Failure to warn an employee of the consequences of repeated
violations of a rule is a frequently cited reason for overturning a disciplinary action.
m Consistency in the discipline procedure is key. Inconsistency lowers morale, diminishes
respect for the supervisor, and leads to grievances. Consistency does not mean that an absence
of past infractions, long length of service, a good work record, and other mitigating factors
should not be considered when applying discipline. However, an employee should feel that
under essentially the same circumstances any other employee would have received the same
punishment/penalty.
m Ordinarily, the supervisor should administer discipline in private. Only in the case of gross
insubordination or flagrant and serious rule violations is a public reprimand desirable. Then
a public reprimand helps the supervisor regain control of a situation. Even in such situations,
however, the supervisor’s objective should be to regain control, not to embarrass the employee.
m The supervisor should warn the employee of the result of repeated violations. Sometimes
suggestions to the employee on ways to correct behaviour are beneficial. Supervisors should
be very reluctant to impose disciplinary suspensions and to discharge workers. Usually,
discipline of this degree is reserved for higher levels of management. However, even though
supervisors usually lack the power to administer disciplinary suspensions or to discharge
workers, they are nearly always the ones who must recommend such action to higher
management.
m Finally, it is necessary to document the action taken and inform others in the organisation.
Any time an organisation takes disciplinary action, it must consider the possibility of an Equal
Employment Opportunity complaint. The documentation should be sufficiently detailed that
another manager at a similar level in the organisation would come to the same conclusions
or least see clearly why the decision was made. Sufficient documentation does not mean that
every detail of an individual’s work needs to be recorded. Rather, the manager should keep
accurate records of those elements that significantly contribute to or hamper the work effort.
In addition, this information, both positive and negative, should be communicated to the
employee either orally or in writing.
Code of Discipline
To maintain harmonious relations and promote industrial peace, a Code of Discipline has been laid
down which applies to both public and private sector enterprises. It specifies various obligations
for the management and the workers with the objective of promoting cooperation between their
representatives.
The basic objectives of Code of Discipline are to:
m Maintain peace and order in industry.
m Promote constructive criticism at all levels of management and employment.
m Avoid work stoppage in industry.
m Secure the settlement of disputes and grievances by a mutually agreed procedure.
m Avoiding litigation.
m Facilitate a free growth of trade unions.
m Eliminate all forms of coercion, intimidation and violations of rules and regulations governing
industrial relations.
The Code is based on the following principles:
m There should be no strike or lockout without prior notice.
m No unilateral action should be taken in connection with any industrial matter.
m Employees should not follow go slow tactic.
m The existing machinery for the settlement of disputes should be utilised.
m Actions that disturb cordial relationships should be avoided.
To ensure better discipline in industry, management and unions agree on not indulging into
various actions. These actions can be summarised as follows:
Management and Union(s) agree
m That no unilateral action should be taken in connection with any industrial matter and that
should be settled at appropriate level
m That the existing machinery for settlement of disputes should be utilised with the utmost
efficiency
m That there should be no strike or lock-out without prior notice
m That neither party will have recourse to coercion, intimidation, victimisation or go –slow tactics
m That they will avoid litigation, sit-down and stay-in strikes and lock-outs
m That they will promote constructive co-operation between their representatives at all levels
and as between workers themselves
m That they will establish upon a mutually agreed grievance procedure which will ensure a
speedy and full investigation leading to settlement;
m That they will abide by various stages in the grievance procedure and take no arbitrary action
which would by-pass this procedure; and
Management Agrees
m Not to increase work-loads unless agreed upon or settled otherwise
m Not to support or encourage any unfair labor practice such as discrimination and victimisation
of any employee
m To take prompt action for settlement of grievances and implementation of settlements, awards,
decision and orders
m To take appropriate disciplinary action against its officers and members in cases where
enquiries reveal that they were responsible for precipitate action by workers leading to
indiscipline
Union agrees
m Not to engage in any form of physical duress.
m Not to permit demonstrations which are not peaceful and not to permit rowdyism in
demonstrations
m That their members will not engage or cause other employees to engage in any union activity
during working hours, unless as provide for by law agreement or practice
m To discourage unfair labour practices such as:
n Negligence of duty
n Careless operation
n Insubordination
m To take prompt action to implement awards, agreements, settlements and decisions
m To display at conspicuous places in the union offices, the provisions of this code in the local
language (s); and
m To express disapproval and to take appropriate action against office-bearers and members of
the union for indulging in action against the spirit of this code.
The code symbolises the policy of the Government to build up an industrial democracy on
voluntary basis. It tries to preserve industrial peace with the help of the employers and the employees.
The Code of Discipline is the basis of non-violent relations between the union and the
management. It should be followed in letter and spirit.
Causes of Indiscipline
Various socio-economic and cultural factors play a role in creating indiscipline in an organisation.
We wonder if you realise the fact that often indiscipline may arise because of poor management on
your part. Insensitive and thoughtless words and deeds from a manager are potent reasons for
subordinates to resort to acts of indiscipline. Defective communication by the superiors and ineffective
leadership.
The reasons could range anything from poor wages to, poor management and the communication
gaps between the union and management.
The common causes of indiscipline are as follows:
1. Unfair Management Practices. Management sometimes indulges in unfair practices like:
m Wage discrimination
m Non-compliance with promotional policies and transfer policies
m Discrimination in allotment of work
m Defective handling of grievances
m Payment of low wages
m Delay in payment of wages
m Creating low quality work life etc.
2. Absence of Effective Leadership. Absence of effective leadership results in poor management
in the areas of direction, guidance, instructions etc. This in turn, results in indiscipline. I am
sure you remember the importance of leadership as studied in the last semester. If you do
(which I suppose you do), you can relate the importance of effective leadership with handling
indiscipline.
3. Communication Barriers. Communication barriers and absence of humane approach on the
part of superiors result in frustration and indiscipline among the workers. The management
should clearly formulate the policies regarding discipline. These policies should be
communicated and the policies should be consistently followed in the organisations. The
management should also be empathetic towards the employees.
4. Varying Disciplinary Measures. Consistent disciplinary actions must be there in the
organisation to provide equal justice to all concerned. At different times and for everyone, the
same standard of disciplinary measures should be taken otherwise it may give rise to growing
indiscipline in the industry in future i.e., the judicious function on the past of management
must be free form may bias, privilege or favoritism.
5. Defective Supervision. Supervisor is the immediate boss of the workers and many
disciplinary problems have their in faulty supervision. The attitude and behavior of the
supervisor may create many problems. As the maintenance of the discipline is the discipline
is the core of supervisory responsibilities, indiscipline may spring from the want of the right
type of supervision.
6. Inadequate attention to personnel Problems. Delay in solving personnel problems develops
frustration among individual workers. The management should be proactive so that there is
no discontent among the workers. It should adopt a parental attitude towards its employees.
However it should be noted that no relationship can continue for long if it is one sided. What
I am implying here is that the workers should also live up to their commitments. They should
be reasonable in their demands.
7. Victimisation. Victimisation of subordinate also results in indiscipline. The management
should not exploit the workers. It is also in the long-term interest of the management to take
care of its internal customers.
8. Absence of Code of Conduct. This creates confusion and also provides chance for
discrimination while taking disciplinary action. We will be discussing Code of Discipline in
details etc.
A code of conduct is a set of rules outlining the responsibilities of or proper practices for an
individual, party or organisation. Related concepts include ethical codes and honor codes.
9. Divide and Rule Policy. Many managers in the business obtain secret information about other
employees through their trusted assistants. The spying on employees is only productive of a
vicious atmosphere and of undesirable in the organisation. Henry Fayol has rightly pointed
out that dividing enemy forces to weaken them is clever, but dividing one’s own team is grave
sin against the business. No amount of management skill is necessary for dividing personnel,
but integrating personnel into a team is the challenging task of sound management.
10. Deferring settlements of Employee Grievances. The employee grievances cannot be put off
by deferring or neglecting their solutions. The grievances should properly be inquired into
and settled by the managers in a reasonable period. Neglect of grievances often results in
reduced performance, low morale and indiscipline among the employees. Strikes and work
stoppages stem in many cases form the utter neglect of employee grievances.
11. Mis-judgment in Promotion and Placements. Mis-judgment in personnel matters like
promotion and placements contribute to the growth of indiscipline in an enterprise. Cases of
mis-judgment are carefully noted, widely circulated, and hotly debated by the employees.
Expecting discipline from misruled people is not possible. Sometimes, undesired persons are
placed on the jobs which makes the employees discontented, then giving rise to the problem
of indiscipline.
Disciplinary Procedure
Disciplinary procedures are a critical tool for management to succeed. Many people associate
disciplinary procedures with negative feedback. If implemented properly, these procedures will
positively affect the relationship between a manager and their employees. Employees embrace
accountability and it actually improves employee job satisfaction. Correcting employee performance
issues is a procedure. Effective interpersonal communication, written communication, and your
management skills list must be utilised to assist your employees. Poorly implemented procedures
may negatively impact workplace performance.
Before starting the process of discipline, it is essential to hold a preliminary inquiry to know if
a prima facie case of indiscipline and misconduct exist. After this, the following steps should be
followed:
1. Issue of charge sheet. Once the prima facie case of misconduct is established, the
management should proceed to issue a charge sheet to the employee. Charge sheet is merely
a notice of the charge and provides the employee an opportunity to explain his conduct.
Therefore, charge sheet is generally known as a slow cause notice. In the charge sheet, each
charge should be clearly specified. There should be a separate charge for each allegation and
charge should not relate to any matter, which has already been decided upon. I would suggest
each one of you to talk to find out how is a charge sheet prepared. We will discuss that in the
next class.
2. Consideration of Explanation. On getting the answer for the charge sheet served, the
explanation furnished should be considered and if it is satisfactory, no disciplinary action
needs to be taken. On the contrary when the management is not satisfied with the employee’s
explanation, it can proceed with full-fledged enquiry. (However, if the worker admits the
charge, the employer can warn him or award him punishment without further enquiry.)
3. Suspension pending Enquiry. In case the charge is grave that is serious, a suspension order
may be served on the employee along with the charge sheet. According to the Industrial
Employment (Standing Order) Act, 1946, the suspended worker is to be paid a subsistence
allowance equal to one-half of his wages for the first ninety days of suspension and three-
fourths of wages for the remaining period of suspension if the delay in the completion of
disciplinary proceedings is not due to the worker’s conduct.
What is grave will depend on the discretion of the management. It has to be decided in
accordance with the Code Of Discipline.
4. Holding of Enquiry. An enquiry officer should be appointed to hold the enquiry and a notice
to this effect should be given to the concerned worker. Principle of natural justice must be
followed. The worker should not be denied the chance of explaining himself. The enquiry
officer should give sufficient notice to the worker so that he may prepare to represent his case
and make submission in his defence. The enquiry officer should proceed in a proper manner
and examine witnesses. Fair opportunity should be given to the worker to cross-examine the
management witnesses.
The principles of natural justice can be summarised as follows:
Principle of Natural Justice
m Tell the person what he has done
m Hear Him
m Give Him a Chance to defend himself
On the conclusion of the enquiry, the enquiry officer should record his findings and the reasons
thereof. He should refrain from recommending punishment and leave it to the decision of the
appropriate authority. After all he is just an enquiry officer!!
5. Order of Punishment. Disciplinary action can be taken when the misconduct of the employee
is proved. While deciding the nature of disciplinary action, the employee’s previous record,
precedents, effects of the action on other employees, etc., have to be considered.
When the employee feels that the enquiry conducted was not proper and the action taken
unjustified, he must be given a chance to make appeal.
Hot Stove Rule

The “Hot-Stove Rule” of Douglas McGregor gives a good illustration of how to impose disciplinary
action without generating resentment. This rule draws an analogy between touching a hot stove,
and undergoing discipline. When you touch a hot stove, your discipline is immediate, with warning,
consistent, and impersonal.
These four characteristics, according to McGregor, as applied to discipline are self-serving and
may be explained as follows:
1. When you touch the hot stove, you burn your hand. The burn was immediate. Will you blame
the hot stove for burning your hand? Immediately, you understand the cause and effect of
the offense. The discipline was directed against the act not against anybody else. You get
angry with yourself, but you know it was your fault. You get angry with the hot stove too,
but not for long as you know it was not its fault. You learn your lesson quickly.
2. You had warning as you knew the stove was red hot and you knew what would happen to
you if you touched it. You knew the rules and regulations previously issued to you by the
company prescribing the penalty for violation of any particular rule so you cannot claim you
were not given a previous warning.
3. The discipline was consistent. Every time you touch the hot stove you get burned. Consistency
in the administration of disciplinary action is essential. Excessive leniency as well as too
much harshness creates not only dissatisfaction but also resentment.
4. The discipline was impersonal. Whoever touches the hot stove gets burned, no matter who
he is. Furthermore, he gets burned not because of who he is, but because he touched the hot
stove. The discipline is directed against the act, not against the person. After disciplinary
action has been applied, the supervisor should take the normal attitude toward the employee.
In applying this Hot Stove rule in disciplinary action, there must be company policies, rules
and regulations regarding certain behaviour and conduct which were issued and clearly explained
to employees and accepted by them for compliance. Disciplinary action must be directed against the
act, not against the person. It must be used by supervisors as a tool to develop the employee and the
group. The steps that should be followed are:
m Immediate investigation of the offense must be done to determine the facts. If the company
is unionised, the investigation must be conducted in the presence of the union steward or
one of the representatives of the union. Promptness is necessary in order that the employee
will associate the investigation with the offense rather than with his person.
m Previous warning. In labour relations, it is important that the company policies, rules and
regulations be issued to and explained to all employees upon induction as part of the
orientation program. This should be done by the supervisor with the help of the personnel
department. In addition, whenever new policies, rules and regulations are promulgated, they
must be posted in the company’s bulletin board, circulated, and explained to the employees
by the supervisor. It is a good practice to have the employees acknowledge receipt of a copy
of the said rule or policy so they could not deny knowledge of the rules.
In some companies, the rules and regulations provide “progressive discipline” whereby
penalties are graduated depending upon the gravity and frequency of the violation.
m Consistency in the administration of disciplinary action is highly essential so that employees
will know what to expect as a consequence of an infraction or violation of the rule or
regulation.
m Disciplinary action must be impersonal. It should be directed against the act, not the person.
It should be institutional, that is, for the protection and interest of the entire organisation
and for all employees, and not done to satisfy the personal whim and caprice of the super-
visor.
Key Principles to Remember

Hot Stove Rule where discipline is concerned:
m You had a warning – you knew what would happen if you touched the stove
m The penalty was consistent – everyone gets the same treatment
m The penalty is impersonal – a person is burned not because of who he or she is, but because
the stove was touched
m The penalty is not delayed.
m So check out the facts first, follow due process and, if appropriate, apply the discipline as
soon after the event as investigations will allow.

1. _________ is concerned with proper utilisa- (A) Managerial function
tion with the management and proper uti- (B) Operative function
lisation of human resource for attaining or- (C) Both A & B
ganisational goal. (D) All of these
(A) Employment
8. Managerial functions of personnel manage-
(B) Personnel management ment includes
(C) Recruitment (A) Planning & Organising
(D) All of these (B) Directing
2. What is the act of taking up part time job or (C) Both A & B
business or industrial unit simultaneously (D) None of these
with that of the original job?
9. Which of the following is not the operative
(A) Half Moon Lighting
functions of personnel management in-
(B) Daily Lighting cludes?
(C) Noon Lighting (A) Procurement (B) Development
(D) Moon-Lighting (C) Compensation
3. What are the objectives of personnel man- (D) None of these
agement?
10. Which one of the following is not an opera-
(A) Enterprise tive function of personnel management/
(B) Social HRM?
(C) Personnel (A) Procurement (B) Planning
(D) All of these (C) Developing (D) Maintaining
4. Which of the following are the challenges to 11. What is the qualities of Personnel manager?
personnel management? (A) Personal Attributes
(A) Globalisation (B) Experience and Training
(B) Political and legal factors (C) Professional Attitude
(C) Technological changes (D) All of these
(D) All of these
12. Personal attributes includes
5. Common Causes of indiscipline are (A) Intelligence
(A) Defective Supervision (B) Communication Skill
(B) Absence of code of conduct (C) Decisiveness
(C) Victimisation (D) All of these
(D) All of these
13. The capacity to take considerable responsi-
6. Work force diversity factors includes bility, ability to influence and control others
(A) Composition and skills in problem solving primarily show
(B) Changes in employee values (A) Business process re-engineering
(C) Woman at work (B) Compartmentalisation
(D) All of these (C) Managerial competence
7. Which of the following is the functions of (D) All of these
personnel management?
14. According to whom there is a much wider (C) Job evaluation
calibre of people applying for jobs than in (D) All of these
years gone by? 21. Which of the following is the need for hu-
(A) Michael E. Porter man resource planning is/are?
(B) Charles Babbage (A) Replace of person
(C) Head Hunters (B) Expansion Plan
(D) All of these (C) Labour Turnover
15. Organisation structure of personnel depart- (D) All of these
ment is concerned with 22. When employees spend half of the time and/
(A) Line organisation or resources available to them on a second
(B) Functional organisation job / occupation for luxuries / comforts it is
(C) Line and staff organisation known as
(D) All of these (A) Half moon lighting
16. Role of personnel department Manager in- (B) Daily lighting
cludes (C) Noon lighting
(A) Advisory Role (D) Moon-lighting
(B) Liaison Role 23. Which of the following is not the objectives
(C) Counselling Role of HRP includes?
(D) All of these (A) Assessing manpower need for Future
17. What is the concept of groups of employees (B) Assessing skill requirement for Future
working towards different goals with little (C) Determining T & D Need
knowledge of other functions or understand- (D) None of these
ing of overall goals of the organisation? 24. In which of the following methods are griev-
(A) Half Moon lighting ances ascertained at the time of employees
(B) Compartmentalisation quitting the organisation?
(C) Noon lighting (A) The gripe-box system
(D) Moon-lighting (B) The exit interview
18. Which of the following is the changing role (C) Both A & B
of personnel department? (D) None of these
(A) Employee and Performance 25. ________refers to the assessment of the pre-
(B) Employee commitment sents and the potential qualification of pre-
(C) HRM and services set employees qualitatively and quantita-
(D) All of these tively.
19. Position and status of personnel Department (A) Analysis of objectives
is concerned with (B) Manpower inventory
(A) Line Authority (C) Manpower forecasting
(B) Functional Authority (D) Manpower plan
(C) Line and staff Authority 26. Forecast future manpower requirement
(D) All of these quantitatively and qualitatively is called
20. ______ ensure Adequate Supply, Proper (A) Analysis of objectives
Quantity, and Proper Quality as well as ef- (B) Manpower inventory
fective utilisation of human resource. (C) Manpower forecasting
(A) Human Resource Planning (D) Manpower plan
(B) Job analysis
27. Which of the following factors is/are not af- 34. __________discloses what, how and why
fecting manpower planning ? the job is to be done.
(A) Existing stock of manpower (A) Job analysis
(B) Future manpower requirement (B) Job specification
(C) Wastage (C) Job description
(D) None of these (D) All of these
28. Level of HRP is concerned with 35. Contents of the job description is/are
(A) Plant Level (A) Proper job title
(B) Departmental and divisional Level (B) Job summary
(C) Top Level (C) Job location
29. ________is a detailed and systematic study 36. The product of job description is/are
of jobs to know the nature and characteris- (A) Job description
tics of the people employed on the various (B) Job specification
jobs. (C) Both A & B
(A) Job analysis (D) All of these
(B) Job specification
37. Job analysis includes
(C) Job description
(A) Job description
(D) All of these
(B) Job specification
30. Uses of job analysis includes (C) Both A & B
(A) Organisational design (D) None of these
(B) Manpower planning
38. Human Resource Planning includes
(C) Recruitment and selection
(A) Scenario planning
(D) All of these
(B) Action planning
31. Ratio of number of persons over 4 years of (C) Demand and supply forecast
service at present to present total employees
(D) All of these
is called
(A) Cafeteria style compensation 39. The _______is a statement of the minimum
acceptable qualities to perform a particular
(B) Skill dilution index
Job.
(C) Develop style compensation
(A) Job description (B) Job specification
(D) All of these
32. Which of the following is not the techniques
40. A job specification include
of job analysis
(A) Physical Characteristics
(A) Observation
(B) Personal Characteristics
(B) Questionnaire
(C) Mental Characteristics
(C) Record
(D) All of these
(D) None of these
41. ___________is an attempt to create match
33. Which of the following is the sub system of
between job requirement and human
HRD?
attributes.
(A) Training
(A) Job Description
(B) Performance appraisal
(B) Job Specification
(C) Careers development
(C) Job Design
(D) All of these
(D) All of these
42. Approaches of job design include (C) Functional job analysis
(A) Engineering approach (D) All of these
(B) Scientific management approach 49. Relative worth of the job is known as
(C) The job characteristics approach (A) Job Simplification
(D) All of these (B) Job Enrichment
43. Which of the following is true in case of meth- (C) Job Rotation
ods in job analysis information? (D) All of these
(A) The interview 50. Jobs are ranked through
(B) Questionnaire (A) Job Simplification
(C) Observation & participant diary (B) Job Evaluation
(D) All of these (C) Job Rotation
44. In ________the complete Job is broken down (D) All of these
into small subparts. 51. ________ is a systematic technique which
(A) Job Simplification aims at determining the worth of the job.
(B) Job Enlargement (A) Job Simplification
(C) Job Rotation (B) Job Evaluation
(D) All of these (C) Job Rotation
45. ________ implies the shifting of an em- (D) All of these
ployee from one job to another job within a 52. Methods of job evaluation includes
working group so the variety and relief from
(A) Non-quantitative methods
the boredom of routine.
(B) Quantitative methods
(A) Job Simplification
(C) Both A & B
(B) Job Enlargement
(D) None of these
(C) Job Rotation
(D) All of these 53. Under job evaluation techniques non-quan-
titative methods includes
46. _______ is the process of increasing the
(A) Ranking methods
scope of job of a particular employee by add-
(B) Job Grading methods
ing more task to it.
(A) Job Simplification (C) Both A & B
(D) None of these
(B) Job Enlargement
(C) Job Rotation 54. All of the jobs are ranked in order of their
(D) All of these importance from simplest to the harder or-
der; each job is higher than the previous one
47. __________implies increasing the content in the sequences.
of a job or the deliberate upgrading of re-
(A) Ranking methods
sponsibility, scope and challenge of work.
(A) Job Simplification
(C) Both A & B
(B) Job Enrichment
(D) None of these
(C) Job Rotation
(D) All of these 55. A number of predetermined grades are de-
cided by the committee and each job is as-
48. Which of the following is the Quantitative signed to one of the grades.
Techniques of Job analysis?
(A) Ranking methods
(A) Position Analysis questionnaire
(B) Management position description ques-
(C) Both A & B
tionnaire
(D) None of these
56. Under job evaluation techniques quantita- (C) Both A & B
tive methods are (D) None of these
(A) Point methods 64. Which of the following is the sources of the
(B) Factor comparison methods recruitment?
(C) Both A & B (A) Internal sources
(D) None of these (B) External sources
57. ___________ system involves quantitative (C) Both A & B
and analytical approach to the measurement (D) None of these
of job worth. 65. Internal sources of recruitment is/are
(A) Point methods (A) Present Employees
(B) Factor comparison methods (B) Employee Referrals
(C) Both A & B (C) Former Employees
58. _______is a combination of ranking and 66. External sources of recruitment is/are
point system of job evaluation.
(A) Advertisement
(A) Point methods
(B) Employment Exchanges
(B) Factor comparison methods
(C) Data Bank
(C) Both A & B
(D) All of these
(D) None of these
67. Which of the following is not the external
59. Factors affecting job design are sources of the recruitment?
(A) Organisational (A) Advertisement
(B) Environment (B) Promotion
(C) Behavioural (C) Employee agencies
(D) None of these (D) Employee referral
60. Job enlargement is simply “adding Zero to 68. ________ is the process of picking up indi-
Zero” who said this vidual (out of the pool of job applicant) with
(A) Robert Owen requisite qualification and competencies to
(B) Rensis Likert fill job in organisation.
(C) Maslow (A) Selection
(D) Fredrick Herzberg (B) Recruitment
61. _______is the process of searching for the (C) Placement
prospective employees and stimulating them (D) None of these
apply for the job in the organisation. 69. Selection is a _______ process.
(A) Selection (B) Recruitment (A) Positive
(C) Placement (D) None of these (B) Negative
62. Recruitment is widely viewed as a _______ (C) Behavioural
process. (D) None of these
(A) Positive (B) Negative
70. Selection end with
(A) Job offer
63. What is meant by the acronym CIPD? (B) Contract of Employment
(A) Chartered Institute of Personnel Direc- (C) Placement
tor
(D) None of these
(B) Chartered Institute of Personnel and De-
velopment
71. _______ is the process of assigning a spe- (A) Test-Retest (B) Inter-rater
cific rank and responsibility to an indi- (C) Intra-rater (D) All of these
vidual. 81. _______ means comparing the test scores
(A) Selection of high and low performances as indicated
(B) Recruitment by the criteria and establishing the degree to
(C) Placement which the test indicates who should fit into
(D) None of these the high or low performance groups.
72. When a new employee joins an organisa- (A) Criterions (B) Content
tion, he should be welcomed as a new mem- (C) Concurrent validity
ber of the organisation and must help and (D) All of these
to get acquainted and adjusted with his fel- 82. ________is the extent to which the test cor-
low work environment rectly predicts future behaviour. It is neces-
(A) Induction (B) Recruitment sary to conduct extensive research over a pe-
(C) Placement (D) None of these riod of time. It is also necessary to have ac-
73. Induction means curate measures of performance so that the
(A) Orientation (B) Recruitment prediction can be compared with actual
behaviour.
(C) Placement (D) None of these
(A) Predictive validity
74. Induction means planned Introduction of
(B) Content
employees to their
(C) Construct
(A) Job (B) Organisation
(D) All of these
(C) Co-worker (D) All of these
83. _____________is the extent to which the test
75. A_________may be defined as a systematic
‘looks’ or ‘feels’ right in the sense that it is
and standardised procedure for sampling
measuring what it is supposed to measure.
human behaviour.
(A) Criterions (B) Content
(A) Test (B) Organisation
(C) Face validity (D) All of these
(C) Co-worker (D) None of these
84. ________means demonstration that those
76. Characteristics of a good test are
who do well on the test also do well on the
(A) Assumption (B) Validity job and vice versa.
(C) Reliability (D) All of these (A) Criterions validity
77. Validity types is/are (B) Content
(A) Criterions (B) Content (C) Construct
(C) Construct (D) All of these (D) All of these
78. ________ means the ability of a test to actu- 85. ____________ is the extent to which the test
ally measure the quality of available person. is clearly related to the characteristics of the
(A) Assumption (B) Validity job or role for which it is being used as a
(C) Reliability (D) All of these measuring instrument.
79. ___________is the consistency of scores ob- (A) Criterions
tained by the same person when retested (B) Content validity
with the similar test or with an equivalent (C) Concurrent validity
from of test. (D) All of these
(A) Assumption (B) Validity 86. _________validity implies identifying the
(C) Reliability (D) All of these psychological trait such as intelligence,
80. Which of the following is the types of reli- which underlying successful job perfor-
ability? mance and then devising a selection proce-
dure to measure the presence and degree of (C) Personality test
the trade. (D) All of these
(A) Criterions (B) Content 95. ____________test measures the maturity,
(C) Construct (D) All of these initiative, emotional balance, and tempera-
87. In reference to reliability, which of the fol- ment of an individual.
lowing techniques give the same result when (A) Intelligence test
administrator repeatedly to same person (B) Aptitude test
(A) Test-retest (B) Inter-rater (C) Personality test
(C) Intra-rater (D) All of these (D) All of these
88. __________divides the whole test into two 96. The basic ideas behind the use of _________
similar and equal parts and a high associa- is that people are most likely to be success-
tion between the scores on the parts is used ful in jobs they like.
as an indicator of reliability. (A) Intelligence test
(A) Test-retest (B) Inter-rater (B) Basic test
(C) Intra-rater (D) Split halves (C) Personality test
89. Where the instrument gives the same result (D) All of these
when used by two or more different raters is 97. Subjective views of the managers on the HR
known as requirement of an organisation is known as
(A) Test-retest (B) Inter-rater (A) Managerial judgement
(C) Intra-rater (D) All of these (B) Zero-base forecasting
90. This test verifies the specialisation of the can- (C) Both A & B
didate. Both the theoretical and practical (D) None of these
knowledge about the trade are verified un-
98. ________ means the analysis of handwrit-
der this test
ing of the candidate.
(A) Intelligence Test
(A) Graphology test
(B) Aptitude Test
(B) Aptitude test
(C) Special Trade Efficiency Test
(C) Personality test
(D) All of these
(D) All of these
91. Which of the following are the types of test?
99. A _____ is a lie detector.
(A) Intelligence Test (B) Aptitude Test
(A) Intelligence test (B) Aptitude test
(C) Personality Test (D) All of these
(C) Personality test (D) Polygraph test
92. Classification of types of test includes
100. It is upward movement of employee from
(A) Interest test (B) Achievement test
current jobs to another that is higher pay,
(C) Simulation test (D) All of these responsibilities, status in an organisation
93. ______ are test of general intellectual abili- (A) Promotion
ties or mental ability test (B) Recruitment
(A) Intelligence Test (C) Placement
(B) Aptitude Test (D) None of these
(C) Personality Test
101. Bases of promotion is/are
(D) All of these
(A) Seniority as a basis of promotion
94. ______test are measure of the specific abili- (B) Seniority cum merit bases
ties.
(C) Merit as basis of promotion
(A) Intelligence test
(D) All of these
(B) Aptitude test
102. _____ means the employee is shifted to a job 111. ___________is aimed at knowing the abil-
lower in status, grade and responsibilities. ity of a candidate to use his limbs or differ-
(A) Demotion (B) Recruitment ent parts of the body in a coordinated man-
(C) Placement (D) None of these ner as required in performing a particular
job.
103. The systematic and deliberate advancement
made by an individual in his career in the (A) Dexterity test
entire work life is known as (B) Intelligence test
(A) Career path (B) Career (C) Management by open
(C) Both A & B (D) None of these (D) All of these
104. When more than one person interviews an 112. Golden handshake is name for
applicant at the same time it is known as (A) Voluntary retirement
(A) Group interview (B) Lay-Off
(B) Stress interview (C) Retrenchment
(C) Panel interview (D) All of these
(D) None of these 113. Employee development is a
105. A structured questionnaire method for col- (A) Short- term process
lecting data about the personal qualities of (B) Continuous process
employees is called (C) Long-term process
(A) Functional job analysis (D) All of these
(B) Work profiling system 114. The “key job” methods known is the popu-
(C) Both A & B lar name of
(D) None of these (A) Ranking methods
106. The product of Job analysis is /are (B) Factor comparison methods
(A) Job Description (C) Point rating methods
(B) Job Specification (D) All of these
(C) Both A & B 115. KPO stands for
(D) None of these (A) Knowledge power output
107. Transactional analysis was given by (B) Knowledge process outsourcing
(A) T.A. Harris (B) H. James (C) Knowledge process output
(C) E. Berne (D) None of these (D) None of these
108. Job changes may involve 116. The HR planning is generally done by_____
(A) Promotion (B) Recruitment (A) Council (B) Government
(C) Placement (D) All of these (C) Managers (D) None of these
109. Test used to measure future potentiality of 117. HRM is more ___________ whereas person-
employees is/are known as nel management is a slightly narrow.
(A) Intelligence test (B) Aptitude test (A) Complex (B) Detailed
(C) Personality Test (D) All of these (C) Mechanical
110. Promotion in which there is no increase in (D) Growth-oriented
pay is known as 118. HRP Stands for
(A) Dry Promotion (A) Human Resource Planning
(B) Clear Promotion (B) Human Resource Plan
(C) Personality Test (C) Human Recruitment Plan
119. Job analysis help in 126. ________ is a concept that allows two or
(A) HRP, Recruitment, selection more people to share a single full time job.
(B) T & D (A) Job Sharing (B) Merit pay
(C) Job evaluation (C) Incentives (D) All of these
(D) All of these 127. Publicising an open job to employees is
120. Which of the following is not a job design called
technique? (A) Job Posting (B) Vacancy
(A) Job Rotation (C) Notification (D) All of these
(B) Work Simplification 128. Systematic movement of workers from one
(C) Job Description job to another is
(D) All of these (A) Job Rotation (B) Job design
121. _______is an interview in which the super- (C) Incentives (D) All of these
visor & subordinate review the appraisal & 129. Letting outsider vendors provides services
make plan to remedy deficiencies & reinforce (A) Outwork (B) Outsourcing
strength. (C) Incentives (D) All of these
(A) Group Interview 130. An employee identification with & agree-
(B) Stress Interview ment to pursue the company mission is
(C) Appraisal Interview known as
(D) None of these (A) Commitment (B) Job design
122. An organised factual statement of the du- (C) Incentives (D) All of these
ties and responsibilities of a specific job is 131. A citizen of one country living in another
known as company’s mission is known as
(A) Job description (A) Expatriate (B) Job design
(B) Job specification (C) Incentives (D) All of these
(C) Job evaluation 132. _______is either refusal to obey a direct or-
(D) Job enrichment der from a supervisor or verbal abuse of a
123. _______is the process of assisting the em- superior.
ployees with psychological counselling, jobs (A) Insubordination
helps services plus severance pay. (B) Job design
(A) Induction (B) Counselling (C) Incentives
(C) Outplacement (D) None of these (D) All of these
124. The persons working in multinational com- 133. ____________ is employee disclosure of an
panies occupying the higher positions in employer’s illegal, immoral, or illegitimate
hierarchy enjoy practices to person or organisation that may
(A) Wage increment be able to take corrective action.
(B) Bonus (A) Whistle blowing(B) Job design
(C) Lavish life-style (C) Incentives (D) All of these
(D) None of these 134. The practice of favouring relation over other
125. ______is an onetime payment some employ- in the workplace is called
ees providing when terminating an em- (A) Job Rotation (B) Hypnotism
ployee. (C) Nepotism (D) All of these
(A) Severance pay (B) Merit pay 135. The use of audio & video equipment to allow
(C) Incentives (D) All of these people to participate in meeting even when
they are great distance away from the (C) Hiring Freeze
conference location or one another is known (D) All of these
as 142. ______is an employee final interview follow-
(A) Telephonic ing separation.
(B) Teleconferencing (A) Group interview
(C) Telecommuting (B) Exit interview
(D) All of these (C) Panel interview
136. An organisation full time employment is/ (D) None of these
are known as 143. ______ is a rate employee separation in an
(A) Contingent workers organisation.
(B) Core -workers (A) Turnover Rate (B) Exiting rate
(C) Both A & B (C) Panel Rate (D) None of these
(D) All of these 144. ________is a work arrangement that allows
137. ________ are workers hired to deal with employees to work in their homes full-time,
temporary increases in an organisation’s maintaining their connection to the office
work-load or to do work that is not part of through phone tax & computer.
its core set of capabilities. (A) Outplacement assistance
(A) Contingent workers (B) Stress Interview
(B) Core -workers (C) Panel Interview
(D) All of these 145. _____ is the match between our abilities &
138. ________is an employment policy designed the requirement of our jobs.
to reduce the company workplace by not re- (A) Job performance
filling job vacancies that are created by turn- (B) Job satisfaction
over.
(C) Job congruence
(A) Attrition (B) Freezing
(D) All of these
(C) Hiring Freeze (D) All of these
146. ________is the situation when good Perfor-
139. _______ is an employment policy designed mance employees quit their jobs.
to reduce the company workplace by not re-
(A) Dysfunctional turnover
filling by not hiring new employees into the
company. (B) Functional turnover
(C) Job congruence
(A) Attrition
(B) Freezing (D) All of these
(C) Hiring Freeze 147. ________is the situation that when poor
(D) All of these performance employees quit their jobs.
(A) Dysfunctional turnover
140. ______ is the process of reorganising a com-
pany employees to improve their efficiency. (B) Functional turnover
(A) Attrition (B) Freezing (C) Hiring freeze
(C) Rightsizing (D) All of these (D) All of these
141. ________is a programme in which compa- 148. _______is a situation that arises when job
nies help their department employees find responsibilities are poorly defined.
jobs more rapidly by providing them with (A) Role ambiguity
training in job search skill. (B) Functional turnover
(A) Outplacement Assistance (C) Job congruence
(B) Freezing (D) All of these
149. ________is a situation that arises when there (B) Brain gain
is a disparity between job demands & the (C) Both A & B
employee’s personal standards. (D) None of these
(A) Role conflict 157. The method that depends mainly on the abil-
(B) Functional turnover ity and experience of the supervisors
(C) Hiring Freeze for gathering relevant information about the
(D) All of these job is called the
150. _____is the idea that people do not work as (A) Technical conference method
hard in group as they do when they work- (B) Task inventory analysis method
ing alone. (C) QWL
(A) Dysfunctional turnover (D) None of these
(B) Social loafing 158. A structured questionnaire method for col-
(C) Hiring freeze lecting data about the personal qualities
(D) All of these of employees is called
151. _________is a system flexible working hour (A) Functional job analysis
combining core mandatory work period (B) Work profiling system
with elective work periods at the beginning (C) Both A & B
and the end of the work day. (D) None of these
(A) Flex Time (B) Exiting Rate 159. The ultimate goal of job evaluation is to
(C) Panel Rate (D) None of these achieve _______in a pay structure.
152. Who proposed the term ‘Occupational (A) Internal Equity (B) External Equity
health psychology,? (C) Both A & B (D) None of these
(A) Jonathan Raymond’s 160. Advertisements through newspapers, TV,
(B) F.W. Taylor radio, professional journals and magazines
(C) Elton Mayo are _______ methods of recruitment.
(D) None of these (A) Direct (B) Indirect
153. ________is how much value individual em- (C) Both A & B (D) None of these
ployees add to the goods and services that 161. A Compensation system in which employ-
the organisation produce. ees are paid per unit produced is known as
(A) Output (B) Productivity (A) Job sharing
(C) Input (D) None of these (B) Piece- rate- system
154. _____is the loss of high talented key per- (C) Both A & B
sonnel to competitor or start-up venture. (D) None of these
(A) Brain-Drain (B) Brain gain 162. ____are the payment made to cover health
(C) QWL (D) None of these care expenses that are split between the em-
155. _________ is providing workers with the ployees and insurance company & the in-
skill & authority to make decision, that sured employees.
would traditionally made by managers. (A) Job sharing (B) Coinsurances
(A) Brain-Drain (B) Brain gain (C) Both A & B (D) None of these
(C) Empowerment (D) None of these 163. A small payment made by the employees for
156. _______ is a career development activity that each office visit to physicians under a health
focuses on preparing people to fill executive plan is known as
position. (A) Co-payment (B) Job Banding
(A) Successions planning (C) Both A & B (D) None of these
164. _____is a fundamental rethinking radical (B) Job specification
redesign of business processes to achieve (C) Versatility transfer
dramatic improvement in cost, quality, sci- (D) All of these
ence & speed.
171. Which of the following is the type of inter-
(A) Business Process Reengineering view?
(B) Lay off (A) Board interview
(C) Both A & B (B) Stress Interview
(D) None of these (C) Exit Interview
165. The term reengineering was given by (D) All of these
(A) Hammer & Champy 172. Selection procedures include
(B) F.W. Taylor (A) Application Form
(C) Elton Mayo (B) Group Interview
(D) None of these (C) Employment test
166. _______is acompany strategy to reduce the (D) All of these
scale & scope of its business in order to im-
173. What are the steps of working procedure of
prove the company’s financial performance.
job analysis
(A) Downsizing
(A) Collection of facts
(B) Rightsizing
(B) To fill the job description form
(C) Leftsizing
(C) Review the first hand information
(D) None of these
(D) All of these
167. _______is a change in job assignment. It is
174. Which is the method of collection informa-
the movement of an employee from one job
tion for job analysis
to another without involving any substan-
tial changes in his duties, responsibilities, (A) Observation (B) Questionnaire
required skill, status and compensation. (C) Record (D) All of these
(A) Downsizing (B) Transfer 175. A______ is a collection duties, task and re-
(C) Leftsizing (D) None of these sponsibilities which are assigned to an in-
dividual and which is different for then as-
168. Which of the following are the types of trans-
signment.
fer on the bases of purpose?
(A) Job (B) Duties
(A) Production transfer
(C) Record (D) All of these
(B) Replacement transfer
(C) Versatility transfer 176. Employee personnel rating is the evaluation
of appraisal of the relative worth to the com-
(D) All of these
pany of man’s service on his
169. Which of the following are not the types of (A) Wage
transfer on the bases of purpose includes?
(B) Questionnaire
(A) Remedial transfer
(C) Record
(B) Shift transfer
(D) Job
(C) Precautionary transfer
177. Which are the factors of job evaluation?
(D) None of these
(A) Skill
170. _______should be considered, but only
(B) Efforts
when the qualification of two candidates for
a better job are, for practical purpose, sub- (C) Working condition
stantially equal. (D) All of these
(A) Seniority
178. Which are wage determinants factors? (C) Survival of the fittest
(A) Cost of Living (D) All of these
(B) Prevailing rate of wage 188. Wage and salary administration consist of
(C) Ability to pay (A) Creation of post
(D) All of these (B) Merit Rating
179. Which is the method of wage payments? (C) Rate Determination
(A) Time Wage (B) Debt Wage (D) All of these
(C) Piece Wage (D) All of these 189. A________ refers to the termination of em-
180. Which is incentive plan? ployment at the instance of the employee.
(A) Hasley (B) Rowan (A) Resignation (B) Duties
(C) Bedaux plan (D) All of these (C) Record (D) All of these
181. _______is an agreement entered into by 190. _______is the termination of the services of
which the employees receive a share, fixed an employee as a punitive measure for some
in advance of profits. misconduct.
(A) Hasley Plan (B) Profit Sharing (A) Job (B) Discharge
(C) Bedaux plan (D) All of these (C) Resignation (D) All of these
182. Which is a base to determine share of profit? 191 _______means prohibiting an employee
(A) Individual from attending work and perform normal
(B) Industry bases duties to assigned him.
(C) Locality bases (A) Suspension (B) Discharge
(D) All of these (C) Resignation (D) All of these
183 Which is the element of personality test? 192. _______means the failure refusal or inabil-
ity of an employer on account of coal, power
(A) Ambition (B) Optimism
or raw material, breakdown the machinery
(C) Dominance (D) All of these
etc.
184. Capabilities includes (A) Suspension (B) Discharge
(A) Wisdom (C) Lay-Off (D) All of these
(B) Fluency 193. _______are affected to make employee ver-
(C) Writing and Reading satile and competent more than one skill.
(D) All of these (A) Production transfer
185. Which is the principle of HRM? (B) Replacement transfer
(A) Scientific selection (C) Versatility transfer
(B) Fair Rewards (D) All of these
(C) Co-operation 194. When the unit runs in shift, employees are
(D) All of these transferred from one shift to another on simi-
186. ________ is necessary to calculate Dearness lar jobs is called
Allowance in Payroll process. (A) Remedial transfer
(A) Cost of Living Index (B) Shift transfer
(B) Dearness Allowance (C) Precautionary transfer
(C) Managerial competence (D) All of these
(D) All of these 195. _______are affected at the request of the em-
187. The approaches of HR philosophy includes ployees and are, therefore called personal
(A) Caveat operations transfer.
(B) Concept of welfare (A) Remedial transfer
(B) Shift transfer 202. Administration of employee wage and sal-
(C) Precautionary transfer ary is called____.
(D) All of these (A) Wage and salary administration
196. The senior most people in the lower grade (B) Wage fund
shall be promoted as and when there is an (C) W.S. Policy (D) All of these
opening in higher position. 203. Which of the following is the objective of the
(A) Seniority as a basis of promotion Wage and salary administration?
(B) Merit as a basis of promotion (A) To establish to fair and equitable com-
(C) Both A & B pensation
(D) None of these (B) To attract qualified and competent per-
197. The most capable person in the lower grade, sonnel
no matter if he is junior most in the com- (C) To improve motivation and morale of
pany shall be promoted employees
(A) Seniority as a basis of promotion (D) All of these
(B) Merit as a basis of promotion 204. ________as a money received in perfor-
(C) Both A & B mance of work, plus many kind of benefits
(D) None of these and services that the organisation provide
to their employees.
198. Which of the following is the kinds of retire-
(A) Wage and salary administration
ment ?
(B) Wage fund
(A) Compulsory Retirement
(C) Compensation
(B) Forced Retirement
(D) All of these
(C) Premature Retirement
(D) All of these 205. _______ is used to payment to hourly pro-
duction and services workers.
199. If an employee found guilty either in court
(A) Wage (B) Wage fund
of law or has violated the conditioned enu-
merated in the services agreement, he may (C) Salary (D) All of these
force the retirement of the service 206. _____ is used to weekly and monthly rates
(A) Compulsory Retirement paid to clerical, administrative and profes-
(B) Forced Retirement sional employees.
(C) Premature Retirement (A) Wage (B) Wage fund
(D) All of these (C) Salary (D) All of these
200. If an employee becomes disabled in an acci- 207. Which is/are the factors influencing the
dent, or due to some diseases, he may give wage and salary administration?
the option of retiring the management be- (A) Internal (B) External
fore attaining the retirement age. (C) Both A & B (D) All of these
(A) Compulsory Retirement 208. Which internal factors influence the wage
(B) Forced Retirement and salary administration?
(C) Premature Retirement (A) Demand & supply
(D) All of these (B) Trade unions bargaining power
201. Who has given Subsistence theory (C) Cost of living
(A) David Richard (D) All of these
(B) Karl Marx 209. Which of the following are the theory of
(C) Adam Smith/J.S. Mill wages?
(D) Clark (A) Subsistence theory
(B) Wage fund theory 217. Labour was treated as an article of commerce
(C) Surplus value theory of money which could be purchased on payment of
(D) All of these subsistence price.
210. Which of the following is not the theory of (A) Subsistence theory
wages? (B) Wage fund theory
(A) Residual claimant theory (C) Surplus value theory of money
(B) Bargaining theories of wage (D) All of these
(C) Marginal productivity theory 218. Residual claimant theory was given by
(D) None of these (A) Francis. A. Walker
211. Remuneration paid for the service of the (B) Karl Marx
labour in production is (C) Adam Smith/J.S. Mill
(A) Wage increment (B) Bonus (D) Clark
(C) Wage (D) None of these 219. According to________ after the payment
212. Who said "The labourers are paid to enable have been made to all other factors of pro-
them to subsist and perpetuate the race with- duction viz. land, capital, and entrepreneur,
out increase or diminution". whatever the surplus represented wages.
(A) David Ricardo (A) Residual claimant theories
(B) Karl Marx (B) Bargaining theory of wage
(C) Adam Smith/J.S. Mill (C) Marginal productivity theories
(D) Clark (D) All of these
213. Which theory is called Iron law of wages? 220. Marginal productivity theory was given by
(A) Subsistence theory (A) David Richard
(B) Wage fund theory (B) Karl Marx
(C) Surplus value theory of money (C) Adam Smith/J.S. Mill
(D) All of these (D) Thunnen
214. Wage fund theory is given by. 221. According to________ wage is depends
(A) David Richard upon demands and supply of labour wages
are based upon the entrepreneur estimate of
(B) Karl Marx
the value that will probably produced by the
(C) Adam Smith/J.S. Mill
last marginal worker.
(D) Clark (A) Residual claimant theory
215. ________assumed that the wealthy person (B) Bargaining theory of wage
have fund of surplus wealth as a result of (C) Marginal productivity theory
their saving wages are paid out of these fund.
(D) All of these
(A) Subsistence theory
222. Bargaining theory of wage was given by
(B) Wage fund theory
(A) David Richard
(C) Surplus value theory of money
(B) Karl Marx
(D) All of these
(C) Clark
216. Surplus value theory of money is given by
(D) John Davidson
(A) David Richard
223. According to________ wages are deter-
(B) Karl Marx
mined by the relative bargaining power of
(C) Adam Smith/ J.S. Mill workers or trade union and of employers.
(D) Clark (A) Residual claimant theory
(B) Bargaining theory of wage 230. In this method the rate per unit decreases
(C) Marginal productivity theories with increases in output
(D) All of these (A) Straight piece rate
224. Principle of Natural Justice (B) Increasing piece rate
(A) Tell the person what he has done (C) Decreasing piece rate
(B) Hear him (D) All of these
(C) Give him a chance to defend himself 231. __________is a combination of time and
(D) All the above piece wage system .The worker is guaran-
teed a time rate with an alternative of piece
225. Wages are paid according to time spent by
rate.
the workers irrespective of his output or
work done (A) Time wage system
(A) Time wage system (B) Piece wage system
(B) Piece wage system (C) Balance and debt methods
(C) Balance and Debt methods (D) All of these
(D) All of these 232. __________means differences and dispari-
ties in wages. Wages differ in different em-
226. Wages are based on output and not on time.
ployment or occupation, industries and loy-
There is no consideration for time taken in
alties and between the person in a same
completing a task
employments or grade.
(A) Time wage system
(B) Piece wage system
(C) Balance and Debt methods
(C) Wage differential
(D) All of these
(D) All of these
227. Types of piece rate system are concerned
233. Types of wage differential includes
with
(A) Occupational
(A) Straight piece rate
(B) Inter-firm
(B) differential piece rate
(C) Inter area & inter personal
(C) primary piece rate
(D) All of these
(D) Both (A) and (B)
234. _________differential can be varying re-
228. _________methods one piece rate is fixed
quirement of skill, knowledge, demands and
and whole production is paid on this basis.
supply, degree of responsibilities involved.
(A) Occupational
(B) Increasing piece rate
(B) Inter-firm
(C) Decreasing piece rate
(D) All of these
(D) All of these
229. ________methods different rate are fixed for
235. __________reflects the relative wage levels
different type of production. Higher rate are
of workers in different plants in the same
given when production increases in certain
area and occupation.
level.
(A) Occupational
(B) Inter-firm
(B) Increasing piece rate
(C) Decreasing piece rate
(D) All of these
(D) All of these
236. Arise when worker in same area, same oc- (B) Scanlon plan & profit sharing
cupation but living in different geographi- (C) Co-partnership plan & profit sharing
cal area is called (D) All of these
(A) Occupational (B) Inter-firm 244. _______is a simple combination of time and
(C) Inter-Area (D) All of these speed bases of payments. In this standard
237. ________ are between workers working in time is fixed for completing the work in ad-
same plants and the same occupation. These vance a person taking standard or more is
may be due to differential in sex, skill, knowl- paid for the time taken by him.
edge or experience. (A) Halsey premium plan
(A) Occupational (B) Rowan Plan
(B) Inter-firm (C) Emerson & Bandeaux
(C) Inter personal (D) All of these
(D) All of these 245. In _______a worker is guaranteed minimum
238. ________are monetary benefits to workers wage for time spent on the job. He get bonus
in recognition of their outstanding perfor- for completing the job in less than the stan-
mance. dard time.
(A) Incentive-Plan (A) Halsey premium plan
(B) Inter-firm (B) Rowan plan
(C) Inter personal (C) Emerson & Bandeaux
239. Which of the following types are wage in- 246. In ___________a worker is guaranteed mini-
centive plans? mum wage for time spent on the job. In addi-
(A) Individual incentive plan tion Bonus and extra payment was sug-
(B) Group incentive plan gested to those who prove efficient.
(C) Both A & B (A) Halsey premium plan
(D) None of these (B) Rowan plan
240. Individual incentive plan are (C) Emerson
(A) Time based system (D) All
(B) Production based system 247. In __________ plan, the minute is the time
(C) Both A & B unit describe as the standard minute and
accounted as Bandeaux point B.
(D) None of these
(A) Halsey premium plan
241. Which of the following is/are the time based
(B) Rowan plan
system types
(C) Bandeaux
(A) Halsey
(D) All of these
(B) Rowan
(C) Emerson & Bandeaux 248. A worker did not provide guaranteed mini-
mum wage payment to each worker. Taylor
(D) All of these
suggested to piece rate for the worker. The
242. Production based system types are principle of this system is to rewards an effi-
(A) Taylor's differential piece rate system cient worker and penalises the inefficient
(B) Gantt's task and bonus plan person.
(C) Both A & B (A) Taylor's differential piece rate system
(D) None of these (B) Gantt's task and bonus plan
243. Group incentive system types are (C) Both A & B
(A) Priestman plan (D) None of these
249. In ___________a worker is guaranteed mini- 255. Forms of grievances are
mum wage under Gantt and task and bonus (A) Factual Grievance
wage plan. A person taking less than stan- (B) Imaginary Grievance
dard time get time wages plus bonus. (C) Disguised Grievances
(A) Taylor’s differential piece rate system (D) All of these
(B) Gantt’s task and bonus plan
256. When the legitimate need of the employees
(C) Both A & B are remain unfulfilled; it gives rise to factual
(D) None of these grievances. The form of Grievance is/are
250. In ________standard production is fixed for (A) Factual Grievance
whole factory. If productivity exceeds the (B) Imaginary Grievance
standard then bonus is paid accordance (C) Disguised Grievances
with the increase.
(D) All of these
(A) Priestman’s plan
257. Sometimes the employee is aggrieved not be-
(B) Scanlon plan & profit sharing
cause of any valid or legitimate reason but
(C) Co-partnership plan & profit sharing because of wrong perception, wrong attitude
(D) All of these and wrong information. The form of Griev-
251. There is a payment for 1% participating bo- ance is/are
nus for every 1% increases in productivity. (A) Factual Grievance
The plan is (B) Imaginary Grievance
(A) Profit sharing (C) Disguised Grievances
(B) Scanlon plan (D) All of these
(C) Co-partnership plan 258. An employee may have dissatisfaction for
(D) All of these reason that is not known to him directly re-
252. In _________employees is offered shares of lated to the organisation. The form of Griev-
the enterprise at reduced rates, the payment ance is/are
is also collected in installment. The employ- (A) Factual Grievance
ees shared profits of the concern as its mem- (B) Imaginary Grievance
ber. (C) Disguised Grievance
(A) Profit sharing (D) All of these
(B) Scanlon plan
259. Grievances resulting Management policy are
(C) Co-partnership plan
(A) Leave & overtime
(D) All of these
(B) Transfers
253. _______is a methods of remuneration un- (C) Promotion, Demotion and Discharge
der which employer undertakes to pay his
(D) All of these
employees to share a net profits of an enter-
prise, in an additional to regular wages. 260. A structured questionnaire method for col-
lecting data about the personal qualities of
(A) Profit sharing
employees is called
(B) Scanlon plan
(A) Job evaluation
(B) Work profiling system
(D) All of these
254. _______ is feeling of discontentment or dis-
satisfaction or distress or suffering or grief 261. Grievances resulting personal maladjust-
among the workers. ment are
(A) Grievance (B) Complaint (A) Over Ambition
(C) Leadership (D) All of these (B) Excessive self esteem
(C) Impractical attitude of life (A) Fair Wage
(D) All of these (B) The living wage
262. Grievances resulting from violations are (C) Minimum Wage
(A) Collective Bargaining (D) None of these
(B) Company rules and regulation 270. Methods of Job Design includes
(C) Central or state law (A) Job Simplification
(D) All of these (B) Job Enlargement
263. ______ is the total knowledge, abilities, skill, (C) Job Rotation
talents and aptitude of the organisation (D) All of these
workforce. 271. _________refers to the policy regarding the
(A) HRM (B) HR retrenchment of the surplus manpower, re-
(C) HRD (D) All of these sulting from restructuring of industrial unit
264. _____is that process of management which or the workers becoming unemployed by the
develops and manages the human elements closure of the sick unit.
of an enterprise. (A) Downsizing
(A) HRM (B) HR (B) Exit Policy
(C) HRD (D) All of these (C) Golden Handshake
265. What are the Objectives of HRM? (D) All of these
(A) Societal objectives 272. Under the________ employees who have at-
(B) Functional objectives tained a particular age or completed some
(C) Personnel Objectives particular years of service, would seek vol-
(D) All of these untary retirement.
266. Emerging horizon/important changes of (A) Downsizing
HRM are (B) Exit Policy
(A) Increase size of workforce (C) Golden Handshake
(B) Changing composition of workforce (D) All of these
(C) Increase in education level 273. Which of the following is/are new challenge
(D) All of these in the field of HRM?
267. Another emerging horizon/important (A) Rightsizing
changes of HRM are (B) Outsourcing
(A) Computerised information system (C) Diversity management
(B) Organisation development (D) All of these
(C) Industrial relations 274. Test devised to assess person ability
(D) All of these (A) Aptitude Test
268. Major challenges of HRM are (B) Knowledge Test
(A) Downsizing (C) Intelligent Test
(B) Exit Policy (D) Attitude Test
(C) Golden Handshake 275. Grievance is
(D) All of these (A) A feeling of dissatisfaction
269. The criterion that means, wages paid should (B) A dispute raised by trade union
be adequate to enable an employee to main- (C) Refusal of the management of a demand
tain himself and his family at a reasonable
(D) An act of indiscipline
level of existence is
276. Which of the following is not the function of 282. Match the following
human resource management? List-I List-II
(A) Planning (a) Top management (i) Human skill
(B) Organising (b) Middle management (ii) Conceptual
(C) Directing skill
(D) Accounting (c) Junior management (iii) Technical
277. HR priorities skill
(A) Change over a period of time Codes :
(B) Remain static (a) (b) (c)
(C) Do not get affected by changing envi- (A) (iii) (i) (ii)
ronment (B) (ii) (i) (iii)
(D) None of the above (C) (i) (ii) (iii)
278. Top management is interested how human (D) (i) (iii) (ii)
resource management is contributing to 283. Arrange the following steps of job evalua-
(A) Value of organisation tion process in the correct sequences
(B) Training of employees (i) Job Description/Specification
(C) Profit making (ii) Employee classification
(D) None of the above (iii) Job evaluation
279. Behaviourally anchored rating scales is as- (iv) Job analysis
sociated with Codes :
(A) Training and development (A) (i) (ii) (iii) (iv)
(B) Performance Appraisal (B) (iv) (i) (ii) ( iii)
(C) Cover Planning (C) (iv) (iii) (ii) (i)
(D) Workers participation in management (D) (ii) (i) (iii) (iv)
280. The ‘Hot Stove Rule’ of___________gives a 284. Match the following
good illustration of how to impose disciplin-
ary action without generating resentment. List-I List-II
(A) Michael E. Porter (a) Collective (i) Institutions set up
(B) Douglas McGregor bargaining by the govern-
(C) Charles Babbage ment for fixation
and Revision
(D) Maslow
wage
281. Consider the following punishment in
(b) Wage board (ii) It is procedure in
Disciplinary action
which compro-
(i) Warning mise is reached
(ii) Demotion through balanc-
(iii) Censure ing of opposed
(iv) Dismissal strength
Which of the above fall under minor pun- (c) Wage (iii) Remuneration
ishment paid to the
(A) (i) & (ii) clerical and
(B) (i), (ii) and ( iii) managerial
Personnel on
(C ) (i) & (iii)
monthly wages
(D) (i), (ii) and ( iv)
(d) Salary (iv) Remuneration Codes :
paid by the (A) (i) (ii) (iv) (iii)
employer for the (B) (i) (iii) (ii) ( iv)
services of (C) (ii) (i) (iv) (iii)
hourly, daily,
(D) (ii) (iv) (i) (iii)
weekly and
fortnightly 286. Arrange the sequences followed in a disci-
employee plinary procedure
Codes : (i) Recruitment
(a) (b) (c) (d) (ii) Interview
(A) (i) (ii) (iii) (iv) (iii) Manpower Inventory
(B) (iv) (ii) ( i) (iii) (iv) Manpower Forecasting
(C) (ii) (iv) (i) (iii) Codes :
(D) (ii) (i) (iv) (iii) (A) (iii) (ii) (iv) (i)
285. Arrange the sequences followed in a disci- (B) (ii) (iv) (iii) ( i)
plinary procedure (C) (iv) (iii) (ii) (i)
(i) Charge sheet (D) (iii) (ii) (i) (iv)
(ii) Reporting the misconduct
(iii) Awarding the punishment
(iv) Domestic enquiry
ANSWER KEY
1. (B) 2. (D) 3. (D) 4. (D) 5. (D) 6. (D) 7. (C) 8. (C) 9. (D) 10. (B)
11. (D) 12. (D) 13. (C) 14. (C) 15. (D) 16. (D) 17. (B) 18. (D) 19. (D) 20. (A)
21. (D) 22. (A) 23. (D) 24. (B) 25. (B) 26. (C) 27. (D) 28. (D) 29. (A) 30. (D)
31. (B) 32. (D) 33. (D) 34. (C) 35. (D) 36. (C) 37. (C) 38. (D) 39. (B) 40. (D)
41. (C) 42. (D) 43. (D) 44. (A) 45. (C) 46. (B) 47. (B) 48. (D) 49. (B) 50. (B)
51. (B) 52. (C) 53. (C) 54. (A) 55. (B) 56. (C) 57. (A) 58. (B) 59. (B) 60. (D)
61. (B) 62. (A) 63. (B) 64. (C) 65. (D) 66. (D) 67. (B) 68. (A) 69. (B) 70. (B)
71. (A) 72. (A) 73. (A) 74. (D) 75. (A) 76. (D) 77. (D) 78. (B) 79. (C) 80. (D)
81. (C) 82. (A) 83. (C) 84. (A) 85. (B) 86. (C) 87. (A) 88. (D) 89. (B) 90. (C)
91. (D) 92. (D) 93. (A) 94. (B) 95. (C) 96. (B) 97. (A) 98. (A) 99. (D) 100. (A)
101. (D) 102. (A) 103. (A) 104. (C) 105. (B) 106. (C) 107. (C) 108. (D) 109. (B) 110. (A)
111. (A) 112. (A) 113. (B) 114. (B) 115. (B) 116. (C) 117. (D) 118. (A) 119. (D) 120. (D)
121. (C) 122. (A) 123. (C) 124. (C) 125. (A) 126. (A) 127. (A) 128. (A) 129. (B) 130. (A)
131. (A) 132. (A) 133. (A) 134. (C) 135. (B) 136. (B) 137. (A) 138. (A) 139. (C) 140. (C)
141. (A) 142. (A) 143. (A) 144. (A) 145. (C) 146. (A) 147. (B) 148. (A) 149. (A) 150. (B)
151. (A) 152. (A) 153. (B) 154. (A) 155. (C) 156. (A) 157. (A) 158. (B) 159. (A) 160. (B)
161. (B) 162. (B) 163. (A) 164. (A) 165. (A) 166. (A) 167. (B) 168. (D) 169. (D) 170. (A)
171. (D) 172. (D) 173. (D) 174. (D) 175. (A) 176. (D) 177. (D) 178. (D) 179. (D) 180. (D)
181. (B) 182. (D) 183. (D) 184. (D) 185. (D) 186. (A) 187. (D) 188. (D) 189. (A) 190. (B)
191. (A) 192. (C) 193. (C) 194. (B) 195. (A) 196. (A) 197. (B) 198. (D) 199. (B) 200. (C)
201. (A) 202. (A) 203. (D) 204. (C) 205. (A) 206. (C) 207. (C) 208. (D) 209. (D) 210. (D)
211. (C) 212. (A) 213. (A) 214. (C) 215. (C) 216. (B) 217. (C) 218. (A) 219. (A) 220. (D)
221. (C) 222. (D) 223. (B) 224. (D) 225. (A) 226. (A) 227. (D) 228. (A) 229. (B) 230. (C)
231. (C) 232. (C) 233. (D) 234. (A) 235. (B) 236. (C) 237. (C) 238. (A) 239. (C) 240. (C)
241. (D) 242. (C) 243. (D) 244. (A) 245. (B) 246. (C) 247. (C) 248. (A) 249. (B) 250. (A)
251. (B) 252. (C) 253. (A) 254. (A) 255. (D) 256. (A) 257. (B) 258. (C) 259. (D) 260. (B)
261. (D) 262. (D) 263. (B) 264. (A) 265. (D) 266. (D) 267. (D) 268. (D) 269. (B) 270. (D)
271. (B) 272. (C) 273. (D) 274. (A) 275. (A) 276. (D) 277. (A) 278. (A) 279. (B) 280. (B)
281. (C) 282. (B) 283. (B) 284. (D) 285. (C) 286. (D)
UNIT
HUMAN RESOURCE
DEVELOPMENT
CONCEPT OF HUMAN RESOURCE DEVELOPMENT (HRD)

Human Resource Development (HRD) is the framework for helping employees develop their personal
and organizational skills, knowledge and abilities. Human Resource Development includes such
opportunities as employee training employee career development, performance management and
development, coaching, mentoring, succession planning, key employee identification & organization
development.
HRD is mainly concerned with developing the skills, knowledge and competencies of people and
it is people-oriented concept. The concept of HRD is not yet well conceived by various authors though
they have defined the term from their approach as it is of recent origin and still is in the conceptualizing
stage. Many personnel managers and organisations view HRD as synonymous to training and
development. The concept was formally introduced by Leonard Nadler in 1969 as “those learning
experiences which are organised for a specific time and designed to bring about the possibility of
behavioural change.”
Training and
Better development Career planning
subordinate and development
superior relations Various Job
experiences
Leadership Human
development Resource
Development Development of
Education technology
Job
enrichment Team building
(Concept of HRD)
HRD from organisational point of view is a process in which the employees of an organisation are
helped/motivated to acquire and develop technical, managerial and behavioural knowledge, skills
and abilities, and mould the values, beliefs, attitude necessary to perform present and future roles by
realizing highest human potential with a view to contribute positively to the organisational, group,
individual and social goals.
(164)
Human Resource Development 165
Importance of HRD
Human resource development (HRD) is an essential component for growth and economic development.
It can occur at both the nationwide level and the firm-wide level. The enhancement of HRD of a
country is dependent on the government and national policies, while at the firm or micro level HRD
can happen through training and efficient utilization of resources. Resources are efficiently utilised to
support HRD when the maximum benefit is created at the lowest possible cost.
1. Economic Development. As the human resources of a country develop, the country progresses
and the benefits spread all over the country. Better skilled and well-trained human resources
attract a larger foreign direct investment into the country and improve the brand image of the
country internationally. HRD for an economy is dependent on the economic policy of the
government and the effort by the institutions in the economy to actively participate in the
development process.
2. Increase in Entrepreneurial Activity. Human resource development may occur as a result of
better education, training or development of vocational skills for individuals. This activity
results in an increase in entrepreneurial activity due to the creative process that is encouraged
by HRD. Moreover, even in an economy faced by high levels of unemployment, vocational
training can generate substantial number of entrepreneurs who look for self-employment. Thus,
HRD opens more options and wider avenues of success for individuals.
3. Increase in Productivity. HRD leads to better and efficient utilization of the available resources.
The same numbers of individuals are able to improve their performance through training or
learning of more productive skills. This leads to an increase in productivity in the same company
at the firm-wide level and to an increase in the overall value of goods produced at the country-
wide level. An increase in productivity of employees generates high economic progress for the
country.
4. Counteracting Social Taboos. HRD can lead to a change in social perception of many people
and can result in the development of the society. Better educated and skilled workers can think
and act more constructively and result in a change of the social environment. Improved education
leads to self-awareness and prevents individuals from embracing superstitions.
5. Human Rights. A better trained and educated workforce is well aware of its rights and is better
able to protect against human rights violations. Workplace environments improve and workers
rights are acknowledged with HRD.
6. Profitability At the firm-wide level, HRD leads to increased productivity and better client
service. This leads to increased revenues at reduced costs for the company. Most companies
today are focused on hiring a well-trained and competitive workforce in order to develop a
unique selling point and enhance their profitability.
7. Demographic Effect. HRD results in more households with two working parents. This provides
enhanced income for the household and at the same time reduces the time available to parents
for raising kids. As a result, a better educated workforce results in a smaller increase in the
population of the country. For countries like India, HRD can help prevent the population from
increasing beyond control.
Objectives of HRD
1. To provide a comprehensive framework for the overall personality of each and every person on
the organisation.
2. To develop the constructive mind and overall personality of each and every person in the
organisation.
3. To develop the capabilities of each individual in relation to his present and extend the future
roles.
4. To develop and maintain high level of motivation of employees.
5. To develop dyadic relationship between each employee and every supervisor.
6. To develop the sense of team spirit, team work and inter team collaboration in the organisation.
7. To develop the overall health and self renewing capabilities.
8. To generate systematic information about human resource for the purpose of manpower
planning, placement, succession planning and the like.
Organisation of HRD Functions

1. Training and development. Training and development is aimed at improving or changing the
knowledge skills and attitudes of the employees. While training involves providing the
knowledge and skills required for doing a particular job to the employees, developmental
activities focus on preparing the employees for future job responsibilities by increasing the
capabilities of an employee which also helps him to perform his present job in a better way.
These activities start when an employee joins an organisation in the form of orientation and
skills training. After the employee becomes proficient, the HR activities focus on the development
of the employee through methods like coaching and counseling.
2. Organisation development. OD is the process of increasing the effectiveness of an organisation
along with the well being of its members with the help of planned interventions that use the
concepts of behavioral science. Both micro and macro changes are implemented to achieve
organisation development. While the macro changes are intended to improve the overall
effectiveness of the organisation the micro changes are aimed at individuals of small groups.
Employee involvement programmes requiring fundamental changes in work expectation,
reporting, procedures and reward systems are aimed at improving the effectiveness of the
organisation. The human resource development professional involved in the organisation
development intervention acts as an agent of change. He often consults and advising the line
manager in strategies that can be adopted to implement the required changes and sometimes
becomes directly involve in implementing these strategies.
3. Career development. It is a continuous process in which individual progresses through
different stages of career each having a relatively unique set of issues and tasks. Career
development comprises of two distinct processes. Career Planning and career management.
Whereas career planning involves activities to be performed by the employee, often with the
help of counselor and others, to assess his capabilities and skills in order to frame realistic
career plan. Career management involves the necessary steps that need to be taken to achieve
that plan. Career management generally focus more on the steps that an organisation that can
take to foster the career development of the employees.
Features of HRD
1. Planned and systematic Approach. HRD is a systematic and planned approach for the
development of individuals in order to achieve organisational, group and individual goals.
HRD is a continuous process for the development of technical, managerial, behavioural and
conceptual skills and knowledge HRD develops the skills and knowledge not only at the
individual but also at dyadic level, group level and organisational level.
2 . HRD is Inter-disciplinary Approach. It draws inputs from Engineering, Technology,
Psychology, Anthropology, management, Commerce, Economics, Medicine etc. HRD is
embodied with techniques and processes HRD is essential not only for manufacturing and
service industry but also for information technology industry.
3. HRD Recruiting the employees within the dimensions and possibilities for developing human
resources Selecting those employees having potentialities for development to meet the present
and future organisational needs. Analysing, appraising and developing performance of
employees as individuals, members of a group and organisations with a view to develop them
by identifying the gaps in skills and knowledge.
4. HRD Changes in Economic Policies. Changing job requirements Need for Multi-skilled Human
Resources Organisational viability and transformation process Technological Advances
Organisational complexity, and Human Relations.
5. HRD is Continuous Process. HRD is a continuous and dynamic process which believes in the
need for continues development of personnel to face the innumerable challenge in the functioning
of an organisation. It is based on the belief that there is no end to the development of an
individual and the learning process can continue throughout the life.
6. Both macro and micro aspects. HRD, at the macro level, HRD is described as the core of all the
development activities in the sense of improvement of the quality of work life of a nation. At the
micro level, HRD involves the improvement the quality of managers and workers so as to
achieve greater quality of managers and workers so as to achieve greater quality of productivity.
Aspect of HRD
m Systematic approach
m Continuous process
m Multi-disciplinary subject
m All pervasive
m Techniques
Scope of HRD
1. Recruitment and selection of employees for meeting the present and future requirements of an
organization.
2. Performance appraisal of the employees in order to understand their capabilities and improving
them through additional training.
3. Offering the employees performance counselling and performance interviews from the superiors.
Functions of Human Resource Development

HRD at Macro and Micro Level. HRD as stated earlier is mainly concerned with developing the
competencies of people. When we all see it as a people oriented concept then several questions come
to the mind like should the people be developed in the larger and national context or in the smaller
institutional context? Are they different at the macro level and micro level? As things stand now, HRD
applies to both institutional (micro) as well as national (macro issues). The main objective however is
to develop the newer capabilities in people so as to enable them to tackle both present and future
challenges while realizing organisational goals. However, it is useful both at macro and micro levels.
1. Macro level. At the macro level HRD is concerned with the development of people for the
nation’s well being. It takes health capabilities skills, attitudes of people which are more useful
to the development of the nation as a whole. While calculating the national income and economic
growth the prospective HRD concept examines the individual’s potentialities, their attitudes,
aspirations, skills, knowledge etc. and establishes a concrete base for economic planning.
However, HRD’s contribution at macro level has not gained popularity as yet.
2. Micro Levels. HRD is concern for development in the organisations at the grass root level.
Small wonder then, that HRD was well received by companies and managements as they
realized its importance and foresaw its future contribution for the individual and organisational
development. Generally HRD at micro level talks of the organisations’ manpower, planning,
selection, training, performance appraisal, development, potential appraisal, compensation,
organisational development etc. HRD’s involvement in all these areas is mainly with an objective
to develop certain new capabilities in people concerned to equip them to meet the present job
challenges and to accept future job requirements.
Differences Between HRD and Personnel

Personnel Function
(1) Maintenance oriented.
(2) An independent function with independent sub functions.
(3) Reactive functions responding to events as and when they take place.
(4) Exclusive responsibility of personnel department.
(5) Emphases is put on monetary rewards.
(6) Improved performances is the result of improved satisfaction and morale.
(7) Tries to improve the efficiency of people and administration.
Points of distinction: (1) Orientation (2) Structure (3) Philosophy (4) Responsibility (5) Motivators
(6) Outcomes (7) AIMS
Human resources development
(1) Development oriented.
(2) Consists of inter dependent parts.
(3) Proactive function, trying to anticipate and get ready with appropriate responses.
(4) Responsibility of all managers in the organisation.
(5) Emphasis is on higher order needs such as – how to design jobs with stretch pull and challenge
how to improve creativity and problem solving skills, how to empower people in all respects
etc.
(6) Better use of human resources leads to improved satisfaction and morale.
(7) It tries to develop the organisation and its culture as a whole.
Difference between HRM and Personnel Management
S.N. Dimension PM HRM
1. Employment contract Careful dimensions of Aim to go beyond
written contract contract
2. Rules Importance of devising Impatience with rules
clear rules
3. Guide to management action Procedures Business need
4. Behaviour referent Norms/customs & practices Values/mission
5. Managerial task vis-a-vis labour Monitoring Nurturing
6. Key relations Labour Customer
7. Initiatives Piecerneal Integrated
8. Speed of decision slow fast
9. Management role Transactional Transformational
S.N. Dimension PM HRM
10. Communication Indirect Direct
11. Management skill Negotiation Facilitation
12. Selection Separate Integrated
13. Pay Job Evaluation Performance related
14. Conditions Separately negotiated Harmonisation
15. Labour management Collective bargaining contracts Individual contracts
16. Jab categories and grades Many Few
17. Job design Division of labour Team work.
Instrument or Mechanism of HRD

1. Performance Appraisal. Performance appraisal have become increasingly important tools for
organisations to use in managing and improving the performance of employees, in making
timely and accurate staffing decisions and improving the overall quality of the firms products
and services. The appraisal process is the formal way of evaluating the employee’s performance.
Its purpose is to provide an accurate picture of post and future employee’s performance. To
meet this performance appraisal are set. The targets are based on job related criteria that best
determine successful job performance. Where possible actual performance is measured directly
and objectively. Using a wide variety of techniques, specialists select an appropriate method to
measure an employee’s actual performance against the previously set targets. The process is
used to strengthen the effort performance linkage. Appraisals help an organisation communicate
its expectations regarding performance and connection between performance and reward to
employees. They increase employees’ confidence and employees’ feedback that their efforts are
being adequately rewarded. The feedback is offered through an evaluation interview. Here the
rater tries to give both positive and negative sides of the employee performance. To be useful,
raters or supervisors should use HRD orientated appraisals as a mechanism to:
m Uncover difficulties faced by the subordinate while handling assigned task and try to
remove these hurdles.
m Understand the strengths and weaknesses of subordinates and help the subordinates
overcome the obstacles in the way.
m Encourage subordinates to meet problems head-on, accept responsibilities and face
challenges with confidence and courage.
m Plan for effective utilization of the talents of subordinates.
2. Potential Appraisal. The term ‘potential’ refers to the abilities possessed by an employee but not
put to use currently or the abilities to assume challenging responsibilities in future assignments.
The term ‘performance’ refers to one’s skills, abilities in meeting the requirements of the job which
one is holding currently. Potential appraisal is different from performance appraisal which
shows an employee’s current performance in his existing role. If the employee is required to play
a completely different set of roles at the higher levels, potential appraisal needs to be carried out
at regular intervals. “The objective of potential appraisal is to identify the potential of a given
employee to occupy higher positions in the organisational hierarchy and undertaken higher
technologies.” The appraisal is carried out on the basis of (i) supervisor’s observations;
(ii) performance data relating to various previous roles played by an employee; (iii) performance
on roles in simulating to a new position. A good potential appraisal system helps management
to pick up a suitable candidate for a given job and offer additional training, if necessary.
3. Career Planning. A career is a sequence of positions held by a person in the course of a lifetime.
Career planning is a process of integrating the employees’ needs and aspirations with
organisational needs. Career programmes and HR programmes are linked to the degree that
they help each individual meet individual and organisation requirements.
In the HRD system, the long term growth plans of a company are not kept secret. They are made
known to the employees. Major changes are discussed at all levels to promote understanding
and commitment among employees. The immediate concern of employees would be to find out
where do stand in such a road map. Do they have any chance to grow while building the
organisation brick by brick? Since managers have information about the growth plans of the
company, they need to transmit their information to their subordinates. The subordinates should
be assisted in planning their careers within the company. It is, however, not necessary that
each one of them would scale new heights every year but at least they are aware of the
opportunities and get ready for greater challenges ahead. Career planning doesn’t guaranty
success. But without it, employees are rarely prepared to encase the opportunities that come
their way.
4. Training and Employee Development. Training has gained importance in present day
environment where jobs are change rapidly. Training is a learning experience designed to
achieve a relatively permanent change in an individual that will improve the ability to perform
on the job. Employee development on the other hand is a future oriented training process,
focusing on the personal growth of the employee. Both training and development focus on
learning. Training programmes should not be designed as quick fixes for organisational
problems, nor should they depend on faddish techniques just because they are popular now
and are followed by our next door neighbour. Instead, training should be planned to meet the
specific needs of the organisation and its employees. To survive and grow in a competitive
environment, organisations have to motivate their employees to get ready for all kinds of future
challenges.
5. Organisation Development. Organisations are never perfectly static. They keep on changing.
Employees’ skills and abilities, therefore, require continual upgrading. The future is uncertain
when full of surprises. It is not easy to fight the force of change without adequate preparation
and training. A systematic planned way of managing this change is through the process of OD.
OD may be defined as a change effort that is planned, focused on an entire organisation or a
large subsystem, managed from the top, aimed at enhancing organisational health and
effectiveness and based on planned interventions made with the help of change agent or third
party who is well versed in the behavioural science.
6. Rewards. People do what they do to satisfy needs. They choose to behave in way which will
maximize their rewards. The most obvious reward is pay but there are many others. Intrinsic
rewards come from their job itself such as feelings of achievement, pride in doing a job etc.
Extrinsic rewards come from a source outside the job including pay, promotion and benefits
offered by management. Reward could be linked to performance as well to motivate high
achievers to do well. If rewards are allocated completely on non-performance factors such as
seniority, job titles etc. then employees are likely to reduce their efforts. Now a days organisations
also use team based rewards to motivate empowered work teams to exceed established targets.
7. Employee welfare & quality of work life (QWL). The term employee welfare means “the
efforts to make life worth living for workmen”. It includes various services, facilities & benefits
offered to employees by the employers, unions & govt. The purpose is to improve the living
standards of workers & thereby improve the quality of work life. Employees voluntarily extend
a number of benefits to employees in the hope that these indirect compensation plans motivate
employees to perform better. Over the years, the types of benefits offered have been expanding
in line with competitive pressures, changing job market trends, employee expectations, union
demands & legislative requirements.
Quality of work life (QWL) efforts are systematic efforts by organisations to give workers a
greater opportunity to affect the way they do their jobs & the contributions they make to the
organisation’s overall effectiveness. It is a way of empowering employees by giving them a
greater ‘say’ in the decision making process. QWL means having good working conditions,
good wages & benefits, good leadership & interesting, challenging jobs. QWL efforts include
the following:
m Suggestion programme. It is a formal method for generating, evaluating & implementing
employee ideas.
m Socio-technical systems. These are interventions in the work situation that redesign the
work, the workgroups & the relationship between workers and the technologies they use to
perform their jobs.
m Co-determination. In this method, representatives of workers meet management in a formal
way to discuss & vote important decisions that affect the lives of workers.
m HRD system focuses on employee welfare & QWL by continually examining employee
needs & meeting them to the best possible extent.
m Self-managed work teams. These are employee groups (also called autonomous
workgroups) with a high degree of decision-making, responsibility & behavioural control
for completing their work. The team is usually given the responsibility for producing an
entire product or service.
m Quality circles. These are small group of employees who meet regularly to find, analyze &
solve quality & other work-related problems of a particular department/section/area.
m Open door policies. Where open door policies exist, employees are free to walk into any
manager’s office with their problems & seek solutions to such problems.
m Employee involvement. Here employees are given the opportunity to participate in the
decisions that affect them & their relationship in the company.
8. Human resource information systems. Human resource information system (HRIS) is a method
by which an organisation collects, maintains & reports information on people & jobs, the
information is generally stored in a central human resource data bank, preferably in a computer
containing the following details:
m Personal data. Identification, education, reserved category, place of origin, etc.;
m Recruitment data. Entry date, grade in aptitude tests, grade in leadership tests;
m Experience data. Placement history, promotions, tasks performed grade wise;
m Appraisal data. Appraisal on each job, ratings of behaviours in a group, commitment to
overall goals, etc.;
m Training data. Nature of training received at each level, current training assignment, etc.;
m Miscellaneous. Health status, personal problems, security needs, record of incentives
received, absence & sickness data, etc.;
This information is put to use whenever there is a need to identify employees for certain special
assignments.
9. Job Rotation. The work task should be rotated among the employees so as broaden their field of
specialization as well as their knowledge about the organisation operation as a whole, the
work tasks, therefore, should be rotated one in a years among the various employees depending
upon their qualification and suitability to perform new roles.
10. Human resource planning. It is the process aimed at ensuring that the organisation will have
adequate number of qualified person, available at proper time, performing jobs which would
meet the need of the organisation and also prove the satisfaction for the individual involved. It
is endeavour to match the demand and supply for various types of human skill in the
organisation.
11. Recruitment, selection and placement. Recruitment is generation of application for specific
position for anticipated vacancies, the idols recruitment efforts will be generate adequate numbers
of suitable candidate, selection is the process of ascertaining the qualification, experience skill
knowledge, etc. of applicant with a view to appraising their suitability for a job. Placement is
the process of assigning the selected candidate with the most suitable job. It underlines the
need for placing the right men at the right job so that best result could be utilized.
12. Building morale and motivation among the employees. The organisation must give the constant
evidence to the belief that human resource in the organisation are the key of development. This
requires the proper motivation of the employees which provides the base for the management
function of planning and organising. A climate of creativity must be developed by the management
so that performance level come up to the mark and growth become the way of life.
13. Development of team work. The HRD section must try to develop a habit of the team work
among human resource, team work requires among others things, that the member have an
image of their own team mates, coincides as precisely as possible with reality.
14. Developing emotional intelligence. Human resources are considered greatest assets in any
organisation. It is thus essential to understand the role of emotional intelligence in enhancing
the productivity of the human resources to achieve the overall goal and success.
The Contribution of Subsystems to HRD Goals

The Contribution of HRD Subsystem to Development Dimension
Development dimensions HRD subsystems Mechanism
Individual Training Career planning Potential appraisal and
development
Feedback and Rewards
coaching performance
Individual in the Performance appraisal Training Feedback and
present role Rewards performance coaching
Individual in regard Potential appraisal and Training Performance appraisal
to likely future roles development Feedback and performance
coaching
Dyadic relationships Feedback and Performance Training
performance coaching appraisal
Teams & teamwork Organisation Training Team rewards
development
Collaboration among Organisation Training
different units/teams development
Self-renewing capability Performance Organisation Training
and health of appraisal development
organisation
The subsystems described already, contributes to the achievement of overall HRD goals performance
appraisal helps an individual to develop his current role capabilities. Potential appraisal focuses on
identifying the employee’s likely future roles within the organisation. Training helps an employee to
improve his job knowledge and skills. It enables an employee to do his current job more efficiently and
prepare himself for a higher level job. It bridges the gap between job requirements and employee’s
skills, knowledge and behaviour. Feedback and performance coaching helps the development of the
individual as well as interpersonal relationships. Organisation development aims at developing
team spirit and self-renewing skills. Welfare amenities, rewards and incentives improve the quality of
life of employees and make the work place a stimulating one for employees. The contribution of these
HRD subsystems to various development dimensions is shown in the table of previous page.
HRD Matrix
The HRD matrix shows the interrelationship between HRD instruments, processes, outcomes and
organisational effectiveness.
1. HRD Instruments. These include performance appraisal, counselling, role analysis, potential
development, training, communication policies, job rotations, rewards, job enrichment
programme, etc. These instruments may vary depending on the size of the organisation, the
internal environment, the support and commitment of the top management, the competitive
policies etc.
2. HRD Processes. The HRD instruments lead to the generation of HRD processes like role clarity,
performance planning, development climate, risk-taking, dynamism in employees. Such HRD
processes should result in more competent, satisfied and committed people that would make
the organisation grow by contributing their best to it.
3. HRD Outcomes. HRD instruments and processes make people more committed and satisfied,
where they tend to give their best to the organisation enthusiastically.
4. Organisational Effectiveness. The HRD outcomes influence the organisational effectiveness,
which in turn, depends on a number of variables like environment, technology, competitors, etc.
A Schematic Presentation of Linkages between HRD Instruments, Processes,

Outcomes and Organisational Effectiveness
HRD Climate. The HRD climate of an organisation plays a very important role in ensuring the
competency, motivation and development of its employees. The HRD climate can be created using
appropriate HRD systems and leadership styles of top management. The HRD climate is both a means
to an end as well as an end in itself. In the recent past simple instruments have been developed to
measure the HRD climate in organisations. These instruments are being widely used to assess
periodically the climate, maintain profiles and design interventions to further improve it. This unit
presents a detailed conceptual background of the HRD climate, various research studies available on
HRD climate and discusses an instrument to measure HRD climate that is being used by different
organisations. By the end of the unit the reader should be able to use the HRD climate survey
questionnaire to measure the HRD climate of his own organisation. Reader also will get an overview
of the HRD climate existing in different organisations.
HRD Climate and organisational climate. The conventional connotation with which the term ‘climate’
has been used in literature is ‘Organisational Climate’. The concept of climate with specific reference
to HRD context, i.e., HRD climate, has been recently introduced by Rao and Abraham (1986). Perhaps
it could be due to this reason that there is hardly any research work available in published literature.
HRD climate is an integral part of organisational climate. It can be defined as perceptions the
employee can have on the developmental environment of an organisation. This developmental climate
will have the following characteristics (Rao and Abraham, 1986):
m A tendency at all levels starting from top management to the lowest level to treat the people as
the most important resources.
m A perception that developing the competencies in the employees is the job of every manager/
supervisor.
m Faith in the capability of employees to change and acquire new competencies at any stage of
life.
m A tendency to be open in communications and discussions rather than being secretive (fairly
free expression of feeling).
m Encouraging risk taking and experimentation.
m Making efforts to help employees recognize their strengths and weaknesses through feedback
m A general climate of trust.
m A tendency on the part of employees to be generally helpful to each other and collaborate with
each other.
m Tendency to discourage stereotypes and favoritism.
m Supportive— Supportive HRD practices including performance appraisal, training, reward
management, potential development, job-rotation, career planning, etc.
Organisations differ in the extent to which they have these tendencies. Some organisations
may have some of these tendencies, some others may have only a few of these and few may have
most of these. It is possible to work out the profile of an organisation on the basis of these
tendencies.
m HRD climate contributes to the organisations’ overall health and self-renewing capabilities
which in turn, increase the enabling capabilities of individual, dyads, team and the entire
organisation.
Elements of HRD Climate

The elements of HRD climate can be grouped into three broad categories — general climate, OCTAPAC
culture and HRD mechanism. The general climate items deal with the importance given to human
resources development in general by the top management and line manager The OCTAPAC items
deal with the extent to which Openness, Confrontation. Trust, Autonomy, Proactively, Authenticity
and Collaboration are valued and promoted in the organisation. The items dealing with HRD
mechanisms measure the extent to which HRD mechanisms are implemented seriously. These three
groups were taken with following assumption :
(a) A general supportive climate is important for HRD if it has to be implemented effectively. Such
supportive climate consists of not only top management line management’s commitment but
good personnel policies and positive attitudes towards development.
(b) Successful implementation of HRD involves an integrated look at HRD and efforts to use as
many HRD mechanisms as possible. These mechanisms include: performance appraisal,
potential appraisal, career planning, performance rewards feedback and counselling, training,
employee welfare for quality work life, Job-rotation, etc.
(c) OCTAPAC culture is essential for facilitating HRD. Openness is there when: employees feel
free to discuss their ideas, activities and feelings with each other. Confrontation is bringing out
problems and issues into the open with a view to solving them rather than hiding them for fear
of hurting or getting hurt. Trust is taking people at their face value and believing what they say.
Autonomy is giving freedom to let people work independently with responsibility. Proactively
is encouraging employees to take initiative and risks. Authenticity is the tendency on the part
of people to do what they say. Collaboration is to accept interdependencies, to be helpful to
each other and work as teams.
The following factors may be considered as contributing to HRD climate:
(1) Top Management Style and Philosophy. A developmental style a belief in the capability of
people participative approach openness and receptivity to suggestions from the subordinates
are some of the dimensions that contribute to the creation of a positive HRD climate.
(2) Personnel Policies. Personnel policies that show high concern for employees, that emphasize
equity and objectivity in appraisals policies that emphasize sufficient resource allocation for
welfare and developmental activities, policies that emphasize a collaborative attitude and
trust among the people go a long way in creating the HRD climate.
(3) HRD Instruments and Systems. A number of HRD instruments have been found to generate a
good HRD climate. Particularly open systems of appraisal with emphasis of counselling, career
development systems, informal training mechanisms, potential development systems etc.
contribute to HRD climate.
(4) Self-renewal Mechanisms. Organisations that have built in self-renewal mechanisms are
likely to generate a positive HRD climate.
(5) Attitudes of Personnel and URD Staff. A helpful and supportive attitude on the part of HRD
and personnel people plays a very critical role in generating the HRD climate. If the personal
behaviour of any of these agents is not supportive, the HRD climate is likely to be vitiated.
(6) Commitment or Line Managers. The commitment of line managers to the development of their
subordinates is a very important determiner of HRD climate.
Principles in Designing HRD System

There have been many queries regarding the principles of Human Resource development. Many a
times we get confused between principles and functions of HRD however there is a clear cut distinction
between the two. The main functions of HRD are Training, Personal development, Organisational
development, Career planning and development and Change Management. The principles therefore
are not the functions.
HRD systems must be designed differently for different organisations. Although the basic principles
may remain the same, the specific components, their relationships, the processes involved in each, the
phasing, and so on, may differ from one organisation to another organisation. Designing an integrated
HRD system requires a thorough understanding of the principles and models of human resource
development and a diagnosis of the organisation culture, existing HRD practices in the organisation,
employee perceptions of these practices, and the developmental climate within the organisation.
The following principles related to focus, structure, and functioning should be considered when
designing integrated HRD systems.
m Focus on enabling capabilities. The primary purpose of HRD is to help the organisation to
increase its “enabling” capabilities. These include development of human resources,
development of organisational health, improvement of problem solving capabilities,
development of diagnostic ability (so that problems can be located quickly and effectively), and
increased employee productivity and commitment.
m Balancing adaptation and change in the organisational culture. Although HRD systems are
designed to suit the organisational culture, the role of HRD may be to modify that culture to
increase the effectiveness of the organisation. There always has been a controversy between
those who believe that HRD should be designed to suit the culture and those who believe that
HRD should be able to change the culture. Both positions seem to be extreme. HRD should take
the organisation forward, and this can be done only if its design anticipates change and
evolution in the future.
m Attention to contextual factors. What is to be included in the HRD systems, how is it to be sub-
divided, what designations and titles will be used, and similar issues should be settled after
consideration of the various contextual factors of the organisation—its culture and tradition,
size, technology, levels of existing skills, available support for the function, availability of
outside help and so on.
m Building linkages with other functions. Human resource development systems should be
designed to strengthen other functions in the company such as long-range corporate planning,
budgeting and finance, marketing, production, and other similar functions. These linkages are
extremely important.
m Balancing specialization and diffusion of the function. Although HRD involves specialised
functions, line people should be involved in various aspects of HRD. Action is the sole
responsibility of the line people, and HRD should strengthen their roles.
m Ensuring respectability for the function. In many companies, the personnel function does not
have much credibility because it is not perceived as a major function within the organisation.
It is necessary that HRD be instituted at a very high level in the organisation and that the head
of the HRD department is classified as a senior manager. Both the credibility and usefulness of
HRD depend on this.
m Balancing differentiation and integration. The human resource development function often
includes personnel administration, human resource development and training, and industrial
relations. These three functions have distinct identities and requirements and should be
differentiated within the HRD department. One person may be responsible for OD, another for
training, another for potential appraisal and assessment, etc. At the same time, these roles
should be integrated through a variety of mechanisms. For example, inputs from manpower
planning should be available to line managers for career planning and HRD units for potential
appraisal and development. Data from recruitment should be fed into the human resources
information system. If salary administration and placement are handled separately, they should
be linked to performance appraisals. Differentiation as well as integration mechanisms are
essential if the HRD system is to function well.
m Establishing linkage mechanisms. HRD has linkages with outside systems as well as
with internal sub-systems. It is wise to establish specific linkages to be used to manage the
system. Standing committees for various purposes (with membership from various parts and
levels of the organisation), task groups, and ad hoc committees’ for specific tasks are useful
mechanisms.
m Developing monitoring mechanisms. The HRD function is always evolving. It therefore requires
systematic monitoring to review the progress and level of effectiveness of the system and to
plan for its next step. A thorough annual review reappraisal every three years will be invaluable
in reviewing and planning the system. It may be helpful to include persons from other functions
in the organisation in the HRD assessment effort.
PERFORMANCE APPRAISAL
Meaning and Definition of Performance Appraisal
Appraisal refers to the rating or evaluation of the worth, merit or effectiveness. Performance appraisal
implies the formal and systematic evaluation of performance on the job. Almost every large organisation
has a formal system of evaluating work performance of its employees because its success depends
upon such performance. Performance refers to the degree of accomplishment of the tasks and it is
measured in terms of results. Performance appraisal is the process of evaluating the performance and
qualifications of the employee in terms of the requirements of the job for which he is employed.
According to Flippo, “Performance appraisal is the systematic, periodic and an impartial rating of an
employee’s excellence in matters pertaining to his present job and of his potentialities for a better job.
The performance appraisal is the process of assessing employee performance by way of comparing
present performance with already established standards which have been already communicated to
employees, subsequently providing feedback to employees about their performance level for the purpose
of improving their performance as needed by the organisation.
As said above the very purpose of performance uprising is to know performance of employee,
subsequently to decide whether training is needed to particular employee or to give promotion with
additional pay hike. Performance appraisal is the tool for determining whether employee is to be
promoted, demoted or sacked ( remove ) in case of very poor performance and no scope for improvement.
Every corporate sector uses performance appraisal as a tool for knowing about the employee and
take decisions about particular employee. For the purpose of performance appraisal of employees
there are different methods under the category of traditional methods and modern methods which are
discussed in following chapters.
Appraising the performance of individuals, groups and organisations is a common practice of all
societies. While in some instances the appraisal processes are structured and formally sanctioned, in
other instances they are an informal and integral part of daily activities. Thus, teachers evaluate the
performance of students, bankers evaluate the performance of creditors, parents evaluate the behaviour
of the children, and all of us, consciously or unconsciously evaluate our own actions from time to time.
“Performance appraisal” has been identified as one of the most complex of man-management
activities. It is often a difficult and emotion laden process. Performance appraisal has become part of
organisational life. Every organisation has some kind of evaluating the performance of its personnel.
Meaning
Appraisals are judgments of the characteristics, traits and performance of others. On the basis of these
judgments we assess the worth or value of others and identify what is good or bad. In industry
performance appraisal is a systematic evaluation of employees by supervisors. Employees also wish
to know their position in the organisation. Appraisals are essential for making many administrative
decisions: selection, training, promotion, transfer, wage and salary administration etc. Besides they
aid in personnel research.
Performance Appraisal thus is a systematic and objective way of judging the relative worth of
ability of an employee in performing his task. Performance appraisal helps to identify those who are
performing their assigned tasks well and those who are not and the reasons for such performance.
Definitions
Performance appraisal has been defined by different scholars in various ways. Some of the important
definitions are as follows:
m Heyel, “It is the process of evaluating the performance and qualifications of the employees in
terms of the requirements of the job for which he is employed, for purposes of administration
including placement, selection for promotions, providing financial rewards and other actions
which require differential treatment among the members of a group as distinguished from
actions affecting all members equally.”
m Dale S. Beach, “Performance appraisal is systematic evaluation of the individual with respect
to his or her performance on the job and his or her potential for development”.
m Dale Yoder, ‘’Performance appraisal includes all formal procedures used to evaluated
personalities and contributions and potentials of group members in a working organisation. It
is a continuous process to secure information necessary for making correct and objective
decisions on employees.”
m Randall S. Schuler, “Performance appraisal is a formal, structured system of measuring and
evaluating an employee’s job, related behaviour and outcomes to discover how and why the
employee is presently perfuming on the job and how the employee can perform more effectively
in the future so that the employee, organisation, and society all benefit.”
Objectives of Performance Appraisal

Performance appraisal is a method of evaluating the job performance of an employee. It is an ongoing
process of obtaining, researching, analyzing and recording information about the worth of an employee.
The main objective of performance appraisals is to measure and improve the performance of
employees and increase their future potential and value to the company. Other objectives include
providing feedback, improving communication, understanding training needs, clarifying roles and
responsibilities and determining how to allocate rewards.
m Provide Feedback. The feedback received by the employee can be helpful in many ways. It
gives insight to how superiors value your performance, highlights the gap between actual and
desired performance and diagnoses strengths and weaknesses as wells as shows areas for
improvement.
m Improve Communication. The method of performance appraisals helps superiors strengthen
relationships and improve communication with employees.
m Training Needed. These appraisals also identify the necessary training and development the
employee needs to close the gap between current performance and desired performance.
m Clarify Expectations. Performance appraisals should clarify roles, responsibilities and
expectations of all employee
m Allocate Rewards. Performance appraisals reduce employee grievances by clearly documenting
the criteria used to make organisational decisions such as promotions, raises or disciplinary
actions.
Others Objectives of Performance Appraisal
m To judge the effectiveness of the other human resource functions of the organisation such as
recruitment, selection, training and development.
m Provide information to assist in the other personal decisions in the organisation.
m To review the performance of the employees over a given period of time.
m To judge the gap between the actual and the desired performance.
m To help the management in exercising organisational control.
m Helps to strengthen the relationship and communication between superior – subordinates and
management – employees.
m To diagnose the strengths and weaknesses of the individuals so as to identify the training and
development needs of the future.
m To reduce the grievances of the employees.
m To provide feedback to the employees regarding their past performance.
m Provide clarity of the expectations and responsibilities of the functions to be performed by the
employees.
Purpose of Performance Appraisal

m Providing Feedback. Providing feedback is the most common justification for an organisation
to have a performance appraisal system. Through its performance appraisal process the
individual learns exactly how well he/she did during the previous twelve months and can
then use that information to improve his/her performance in the future. In this regard,
performance appraisal serves another important purpose by making sure that the boss’s
expectations are clearly communicated.
m Facilitating Promotion Decisions. Almost everyone in an organisation wants to get ahead.
How should the company decide who gets the brass rings? Performance appraisal makes it
easier for the organisation to make good decisions about making sure that the most important
positions are filled by the most capable individuals.
m Facilitating Layoff or Downsizing Decisions. If promotions are what everybody wants, layoffs
are what everybody wishes to avoid. But when economic realities force an organisation to
downsize, performance appraisal helps make sure that the most talented individuals are
retained and that only the organisation’s marginal performers are cut loose.
m Encouraging Performance Improvement. How can anyone improve if he doesn’t know how
he’s doing right now? A good performance appraisal points out areas where individuals need
to improve their performance.
m Motivating Superior Performance. This is another classic reason for having a performance
appraisal system. Performance appraisal helps motivate people to deliver superior performance
in several ways. First, the appraisal process helps them to learn just what it is that the
organisation considers to be ‘‘superior.’’ Second, since most people want to be seen as superior
performers, a performance appraisal process provides them with a means to demonstrate what
that they actually are? Finally, performance appraisal encourages employees to avoid being
stigmatized as inferior performers (or, often worse, as merely ‘‘average’’).
m Setting and Measuring Goals. Goal setting has consistently been demonstrated as a management
process that generates superior performance. The performance appraisal process is commonly
used to make sure that every member of the organisation sets and achieves effective goals.
m Counselling Poor Performers. Not everyone meets the organisation’s standards. Performance
appraisal forces managers to confront those whose performance is not meeting the company’s
expectations.
m Determining Compensation Changes. This is another classic use of performance appraisal.
Almost every organisation believes in pay for performance. But how can pay decisions be made
if there is no measure of performance? Performance appraisal provides the mechanism to make
sure that those who do better work receive more pay.
m Encouraging Coaching and Mentoring. Managers are expected to be good coaches to their
team members and mentors to their proteges. Performance appraisal identifies the areas where
coaching is necessary and encourages managers to take an active coaching role.
m Supporting Manpower Planning. Well-managed organisations regularly assess their bench
strength to make sure that they have the talent in their ranks that they will need for the future.
Companies need to determine who and where their most talented members are. They need to
identify the departments that are rich with talent and the ones that are suffering a talent drought.
Performance appraisal gives companies the tool they need to make sure they have the intellectual
horsepower required for the future.
m Determining Individual Training and Development Needs. If the performance appraisal
procedure includes a requirement that individual development plans be determined and
discussed, individuals can then make good decisions about the skills and competencies they
need to acquire to make a greater contribution to the company. As a result, they increase their
chances of promotion and lower their odds of layoff.
m Determining Organisational Training and Development Needs. Would the organisation be
better off sending all of its managers and professionals through a customer service training
program or one on effective decision making? By reviewing the data from performance appraisals,
training and development professionals can make good decisions about where the organisation
should concentrate company-wide training efforts.
m Validating Hiring Decisions. Is the company hiring stars, or is it filling itself with trolls? Only
when the performance of newly hired individuals is assessed can the company learn whether
it is hiring the right people.
m Providing Legal Defensibility for Personnel Decisions. Almost any personnel decision—
termination, denial of a promotion, transfer to another department—can be subjected to legal
scrutiny. If one of these is challenged, the company must be able to demonstrate that the decision
it made was not based on the individual’s race or handicap or any other protected aspect. A
solid record of performance appraisals greatly facilitates legal defensibility when a complaint
about discrimination is made.
m Improving Overall Organisational Performance. This is the most important reason for an
organisation to have a performance appraisal system. A performance appraisal procedure
allows the organisation to communicate performance expectations to every member of the team
and assess exactly how well each person is doing. When everyone is clear on the expectations
and knows exactly how he is performing against them, this will result in an overall improvement
in organisational success.
Benefits of Performance Appraisal
m Motivation and Satisfaction
Performance appraisal can have a profound effect on levels of employee motivation and
satisfaction - for better as well as for worse.
Performance appraisal provides employees with recognition for their work efforts. The power
of social recognition as an incentive has been long noted. In fact, there is evidence that human
beings will even prefer negative recognition in preference to no recognition at all. If nothing
else, the existence of an appraisal program indicates to an employee that the organisation is
genuinely interested in their individual performance and development. This alone can have a
positive influence on the individual’s sense of worth, commitment and belonging.
The strength and prevalence of this natural human desire for individual recognition should not
be overlooked. Absenteeism and turnover rates in some organisations might be greatly reduced
if more attention were paid to it. Regular performance appraisal, at least, is a good start.
m Training and Development
Performance appraisal offers an excellent opportunity - perhaps the best that will ever occur -
for a supervisor and subordinate to recognize and agree upon individual training and
development needs.
During the discussion of an employee’s work performance, the presence or absence of work skills
can become very obvious - even to those who habitually reject the idea of training for them.
Performance appraisal can make the need for training more pressing and relevant by linking it
clearly to performance outcomes and future career aspirations.
From the point of view of the organisation as a whole, consolidated appraisal data can form a
picture of the overall demand for training. This data may be analysed by variables such as sex,
department, etc. In this respect, performance appraisal can provide a regular and efficient
training needs audit for the entire organisation.
m Recruitment and Induction
Appraisal data can be used to monitor the success of the organisation’s recruitment and
induction practices. For example, how well are the employees performing who were hired in
the past two years?
Appraisal data can also be used to monitor the effectiveness of changes in recruitment strategies.
By following the yearly data related to new hires (and given sufficient numbers on which to
base the analysis) it is possible to assess whether the general quality of the workforce is
improving, staying steady, or declining.
m Employee Evaluation
Though often understated or even denied evaluation is a legitimate and major objective of
performance appraisal.
But the need to evaluate (i.e., to judge) is also an ongoing source of tension, since evaluative and
developmental priorities appear to frequently clash. Yet at its most basic level, performance
appraisal is the process of examining and evaluating the performance of an individual.
Though organisations have a clear right - some would say a duty - to conduct such evaluations
of performance, many still recoil from the idea. To them, the explicit process of judgment can be
dehumanizing and demoralizing and a source of anxiety and distress to employees.
It is been said by some that appraisal cannot serve the needs of evaluation and development at
the same time; it must be one or the other.
But there may be an acceptable middle ground, where the need to evaluate employees objectively,
and the need to encourage and develop them, can be balanced.
Process of Performance Appraisal

Performance appraisal is planned, developed and implemented through a series of steps
m Establish performance standards
m Communicate the standards
m Measure actual performance
m Compare actual performance with standards and discuss the appraisal
m Taking corrective action, if necessary
1. Establish performance standards. Appraisal systems require performance standards, which
serve as benchmarks against which performance is measured. To be useful, standards should
relate to the desired results of each job. What about those appraisals which are carried out
without any clear-cut criteria. Performance standards must be clear to both the appraiser and
the appraisee. The performance standards or goals must be developed after a thorough analysis
of the job. Goals must be written down. Just talking about them is not enough. They must be
measurable within certain time and cost considerations. For example, the regional sales office
may be asked: “The sales of colour television sets in Ghaziabad must increase by 1000 per
month in the next 6 months and the budget toward promotional expenses would Rs 5,000 per
month.”
TABLE Criteria for Identifying and Writing Good Performance Goal
What is the task to be What will it look like when When must it What are the
accomplished? it is accomplished? be completed? cost considerations?
2. Communicate the standards. Performance appraisal involves at least two parties; the appraiser
who does the appraisal and the appraisee whose performance is being evaluated. Both are
expected to do certain things. The appraiser should prepare job descriptions clearly; help
appraisee set his goals and targets; analyze results objectively; offer coaching and guidance to
appraisee whenever required and reward good results. The appraisee should be very clear
about what he is doing and why he is doing. For this purpose, the performance standards must
be communicated to appraisees and their reactions be noted down initially. If necessary, these
standards must be revised or modified. As pointed out by De Cenzo and Robbins, “too many
jobs have vague performance standards and the problem is compounded when these standards
are set in isolation and do not involve the employee”.
3. Measure actual performance. After the performance standards are set and accepted, the next
step is to measure actual performance. This requires the use of dependable performance
measures, the ratings used to evaluate performance. Performance measures, to be helpful must
be easy to use, be reliable and report on the critical behaviors that determine performance. Four
common sources of information which are generally used by managers regarding how to
measure actual performance: personal observation, statistical reports, oral reports and written
reports. Performance measures may be objective or subjective. Objective performance measures
are indications of job performance that can be verified by others and are usually quantitative.
Objective criteria include quality of production, degree of training needed and accidents in a
given period, absenteeism, length of service, etc. Subjective performance measures are ratings
that are based on the personal standards of opinions of those doing the evaluation and are not
verifiable by others. Subjective criteria include ratings by superiors, knowledge about overall
goals, contribution to socio-cultural values of the environment. It should be noted here that
objective criteria can be laid down while evaluating lower level jobs which are specific and
defined clearly. This is not the case with middle level positions that are complex and vague.
4. Compare actual performance with standards and discuss the appraisal. Actual performance
may be better than expected and sometimes it may go off the track. Whatever be the consequences,
there is a way to communicate and discuss the final outcome. The assessment of another
person’s contribution and ability is not an easy task. It has serious emotional overtones as it
affects the self-esteem of the appraisee. Any appraisal based on subjective criteria is likely to be
questioned by the appraisee and leave him quite dejected and unhappy when the appraisal
turns out to be negative.
5. Taking corrective action, if necessary. Corrective action is of two types. The one which puts
out the fires immediately and other one which strikes at the root of the problem permanently.
Immediate action sets things right and get things back on track whereas the basic corrective
action gets to the source of deviations and seeks to adjust the difference permanently. Basic
corrective steps seek to find out how and why performance deviates.
Who Will Appraise

The appraiser may be any person who has thorough knowledge about the job content, contents to be
appraised, standards of contents and who observes the employee while performing a job. The appraiser
should be capable of determining what is more important and what is relatively less important. He
should prepare reports and make judgments without bias. Typical appraisers are: supervisors, peers,
subordinates, employees themselves and users of services and consultants.
m Supervisors. Supervisors include superiors of the employee, other superiors having knowledge
about the work of the employee and departmental head or manager. The general practice is that
immediate superiors appraise the performance, which in turn, is reviewed by the departmental
head/manager. This is because supervisors are responsible for managing their subordinates
and they have the opportunity to observe, direct and control the subordinates continuously.
Moreover, they are accountable for the successful performance of their subordinates. Sometimes
other supervisors, who have close contact with employee work also appraise with a view to
provide additional information.
m On the negative side, immediate supervisors may emphasize certain aspects of employee
performance to the neglect of others. Also, managers have been known to manipulate evaluations
to justify their decisions on pay increases and promotions. However, the immediate supervisor
will continue to evaluate employee performance till a better alternative is available.
Organisations, no doubt, will seek alternatives because of the weaknesses mentioned above
and a desire to broaden the perspective of the appraisal.
m Peers. Peer appraisal may be reliable if the work group is stable over a reasonably long period
of time and performs tasks that require interaction. However, little research has been conducted
to determine how peers establish standards for evaluating others or the overall effect of peer
appraisal on the group’s attitude. Whatever research was done on this topic was mostly done
on military personnel at the management or pre-management level (officers or officer candidates)
rather than on employees in business organisations. More often than not in business
organisations if employees were to be evaluated by their peers, the whole exercise may degenerate
into a popularity contest, paving the way for the impairment of work relationships.
m Subordinates. The concept of having superiors rated by subordinates is being used in most
organisations today, especially in developed countries. For instance in most US universities
students evaluate a professor’s performance in the classroom. Such a novel method can be
useful in other organisational settings too provided the relationships between superiors and
subordinates are cordial. Subordinates’ ratings in such cases can be quite useful in identifying
competent superiors. The rating of leaders by combat soldiers is an example. However, the fear
of reprisal often compels a subordinate to be dishonest in his ratings. Though useful in
universities and research institutions, this approach may not gain acceptance in traditional
organisations where subordinates practically do not enjoy much discretion.
m Self-appraisal. If individuals understand the objectives they are expected to achieve and the
standards by which they are to be evaluated, they are to a great extent, in the best position to
appraise their own performance. Also, since employee development means self-development,
employees who appraise their own performance may become highly motivated.
m Users of services. Employees’ performance in service organisations relating to behaviors,
promptness, speed in doing the job and accuracy can be better judged by the customers or users
of services. For example, a teacher’s performance is better judged by students and the
performance of a conductor a bus is better judged by passengers.
m Consultants. Sometimes consultants may be engaged for appraisal when employees or
employers do not trust the supervisory appraisal and management does not trust the self-
appraisal or peer appraisal or subordinate appraisal. In this situation, consultants are trained
and they observe the employee at work for sufficiently long periods for the purpose of appraisal.
m In view of the limitations associated with each and every method discussed above, several
organisations follow a multiple rating system wherein several superiors separately fill out
rating forms on the same subordinate. The results are then tabulated.
Performance Appraisal Biases

Managers commit mistakes while evaluating employees and their performance. Biases and judgment
errors of various kinds may spoil the performance appraisal process. Bias here refers to inaccurate
distortion of a measurement. These are:
1. First Impression (primacy effect). Raters form an overall impression about the ratee on the
basis of some particular characteristics of the ratee identified by them. The identified qualities
and features may not provide adequate base for appraisal.
2. Halo Effect. The individual’s performance is completely appraised on the basis of a perceived
positive quality, feature or trait. In other words this is the tendency to rate a man uniformly high
or low in other traits if he is extra-ordinarily high or low in one particular trait. If a worker has
few absences, his supervisor might give him a high rating in all other areas of work.
3. Horn Effect. The individual’s performance is completely appraised on the basis of a negative
quality or feature perceived. This results in an overall lower rating than may be warranted. “He
is not formally dressed up in the office. He may be casual at work too!”.
4. Excessive Stiffness or Lenience. Depending upon the raters own standards, values and physical
and mental makeup at the time of appraisal, ratees may be rated very strictly or leniently. Some
of the managers are likely to take the line of least resistance and rate people high, whereas
others, by nature, believe in the tyranny of exact assessment, considering more particularly the
drawbacks of the individual and thus making the assessment excessively severe. The leniency
error can render a system ineffective. If everyone is to be rated high, the system has not done
anything to differentiate among the employees.
5. Central Tendency. Appraisers rate all employees as average performers. That is, it is an attitude
to rate people as neither high nor low and follow the middle path. For example, a professor,
with a view to play it safe, might give a class grade near the equal to B, regardless of the
differences in individual performances.
6. Personal Biases. The way a supervisor feels about each of the individuals working under him
- whether he likes or dislikes them - as a tremendous effect on the rating of their performances.
Personal Bias can stem from various sources as a result of information obtained from colleagues,
considerations of faith and thinking, social and family background and so on.
7. Spillover Effect. The present performance is evaluated much on the basis of past performance.
“The person who was a good performer in distant past is assured to be okay at present also”.
8. Recency Effect. Rating is influenced by the most recent behaviour ignoring the commonly
demonstrated behaviours during the entire appraisal period.
Poor Appraisal Forms

The appraisal process might also be influenced by the following factors relating to the forms that are
used by raters:
m The rating scale may be quite vague and unclear
m The rating form may ignore important aspects of job performance.
m The rating form may contain additional, irrelevant performance dimensions.
m The forms may be too long and complex.
m Lack of rater preparedness. The raters may not be adequately trained to carry out performance
management activities. This becomes a serious limitation when the technical competence of a
ratee is going to be evaluated by a rater who has limited functional specialization in that area.
The raters may not have sufficient time to carry out appraisals systematically and conduct
thorough feedback sessions. Sometimes the raters may not be competent to do the evaluations
owing to a poor self-image and lack of self-confidence. They may also get confused when the
objectives of appraisal are somewhat vague and unclear.
m Ineffective organisational policies and practices. If the sincere appraisal effort put in by a rater
is not suitably rewarded, the motivation to do the job thoroughly finishes off. Sometimes, low
ratings given by raters are viewed negatively by management – as a sign of failure on the part
of rater or as an indication of employee discontent. So, most employees receive satisfactory
ratings, despite poor performance. Normally, the rater’s immediate supervisor must approve
the ratings. However, in actual practice, this does not happen. As a result the rater ‘goes off the
hook’ and causes considerable damage to the rating process.
m Essential Characteristics of an Effective Appraisal System. Performance appraisal system
should be effective as a number of crucial decisions are made on the basis of score or rating
given by the appraiser, which in turn, is heavily based on the appraisal system. Appraisal
system, to be effective, should possess the following essential characteristics:
n Reliability and validity. Appraisal system should provide consistent, reliable and valid
information and data, which can be used to defend the organisation – even in legal
challenges. If two appraisers are equally qualified and competent to appraise an employee
with the help of same appraisal technique, their ratings should agree with each other.
Then the technique satisfies the conditions of inter-rater reliability. Appraisals must also
satisfy the condition of validity by measuring what they are supposed to measure. For
example, if appraisal is made for potential of an employee for promotion, it should supply
the information and data relating to potentialities of the employee to take up higher
responsibilities and carry on activities at higher level.
n Job relatedness. The appraisal technique should measure the performance and provide
information in job related activities/areas.
n Standardization. Appraisal forms, procedures, administration of techniques, ratings, etc.,
should be standardized as appraisal decisions affect all employees of the group.
n Practical viability. The techniques should be practically viable to administer, possible to
implement and economical to undertake continuously.
n Legal sanction. Appraisals must meet the laws of the land. They must comply with
provisions of various acts relating to labor.
n Training to appraisers. Because appraisal is important and sometimes difficult, it would be
useful to provide training to appraisers viz., some insights and ideas on rating, documenting
appraisals and conducting appraisal interviews. Familiarity with rating errors can improve
rater’s performance and this may inject the needed confidence in appraisers to look into
performance ratings more objectively.
n Open communication. Most employees want to know how well they are performing the job.
A good appraisal system provides the needed feedback on a continuing basis. The appraisal
interviews should permit both parties to learn about the gaps and prepare themselves for
future. To this end, managers should clearly explain their performance expectations to
their subordinates in advance of the appraisals period. Once this is known, it becomes
easy for employees to learn about the yardsticks and, if possible, try to improve their
performance in future.
n Employee access to results. Employees should know the rules of the game. They should
receive adequate feedback on their performance. If performance appraisals are meant for
improving employee performance, then withholding appraisal result would not serve any
purpose. Employees simply cannot perform better without having access to this information.
Permitting employees to review the results of their appraisal allows them to detect any
errors that may have been made. If they disagree with the evaluation, they can even challenge
the same through formal channels.
n Due process. It follows then that formal procedures should be developed to enable
employees who disagree with appraisal results (which are considered to be inaccurate or
unfair). They must have the means for pursuing their grievances and having them addressed
objectively.
m Performance appraisal should be used primarily to develop employees as valuable resources.
Only then it would show promising results. When management uses it as a whip or fails to
understand its limitations, it fails. The key is not which form or which method is used (Mathis
and Jackson).
Methods of Performance Appraisal
Under the individual evaluation methods of merit rating, employees are evaluated one at a time
without comparing them with other employees in the organisation.
(1) Confidential report. It is mostly used in government organisations. It is a descriptive report
prepared, generally at the end of every year, by the employee’s immediate superior. The report
highlights the strengths and weaknesses of the subordinate. The report is not data based. The
impressions of the superior about the subordinate are merely recorded there. It does not offer
any feedback to the appraisee. The appraisee is not very sure about why his ratings have fallen
despite his best efforts, why others are rated high when compared to him, how to rectify his
mistakes, if any; on what basis he is going to be evaluated next year, etc. Since the report is
generally not made public and hence no feedback is available, the subjective analysis of the
superior is likely to be hotly contested. In recent years, due to pressure from courts and trade
unions, the details of a negative confidential report are given to the appraisee.
(2) Essay evaluation. Under this method, the rater is asked to express the strong as well as weak
points of the employee’s behaviour. This technique is normally used with a combination of the
graphic rating scale because the rater can elaborately present the scale by substantiating an
explanation for his rating. While preparing the essay on the employee, the rater considers the
following factors: (i) Job knowledge and potential of the employee; (ii) Employee’s understanding
of the company’s programmes, policies, objectives, etc.; (iii) The employee’s relations with co-
workers and superiors; (iv) The employee’s general planning, organising and controlling ability;
(v) The attitudes and perceptions of the employee, in general.
Essay evaluation is a non-quantitative technique. This method is advantageous in at least one
sense, i.e., the essay provides a good deal of information about the employee and also reveals
more about the evaluator.
(3) Critical incident technique. Under this method, the manager prepares lists of statements of
very effective and ineffective behaviour of an employee. These critical incidents or events
represent the outstanding or poor behaviour of employees on the job. The manager maintains
logs on each employee, whereby he periodically records critical incidents of the workers
behaviour. At the end of the rating period, these recorded critical incidents are used in the
evaluation of the workers’ performance. An example of a good critical incident of a sales
assistant is the following:
July 20 – The sales clerk patiently attended to the customer’s complaint. He is polite, prompt, enthusiastic
in solving the customers’ problem. On the other hand the bad critical incident may appear as under: July
20 – The sales assistant stayed 45 minutes over on his break during the busiest part of the day. He failed
to answer the store manager’s call thrice. He is lazy, negligent, stubborn and uninterested in work.
This method provides an objective basis for conducting a thorough discussion of an employee’s
performance. This method avoids recency bias (most recent incidents get too much emphasis).
Most frequently, the critical incidents technique of evaluation is applied to evaluate the
performance of superiors rather than of peers of subordinates.
(4) Checklists and weighted checklists. Another simple type of individual evaluation method is
the checklist. A checklist represents, in its simplest form, a set of objectives or descriptive
statements about the employee and his behaviour. If the rater believes strongly that the employee
possesses a particular listed trait, he checks the item; otherwise, he leaves the item blank. A
more recent variation of the checklist method is the weighted list. Under this, the value of each
question may be weighted equally or certain questions may be weighted more heavily than
others. The following are some of the sample questions in the checklist.
Is the employee really interested in the task assigned? Yes/No
Is he respected by his colleagues (co-workers) Yes/No
Does he give respect to his superiors? Yes/No
Does he follow instructions properly? Yes/No
Does he make mistakes frequently? Yes/No
A rating score from the checklist helps the manager in evaluation of the performance of the
employee. The checklist method has a serious limitation. The rater may be biased in
distinguishing the positive and negative questions. He may assign biased weights to the
questions. Another limitation could be that this method is expensive and time consuming.
Finally, it becomes difficult for the manager to assemble, analyze and weigh a number of
statements about the employee’s characteristics, contributions and behaviours. In spite of these
limitations, the checklist method is most frequently used in the employee’s performance
evaluation.
(5) Graphic rating scale. Perhaps the most commonly used method of performance evaluation is
the graphic rating scale. Of course, it is also one of the oldest methods of evaluation in use.
Under this method, a printed form, as shown below, is used to evaluate the performance of an
employee. A variety of traits may be used in these types of rating devices, the most common
being the quantity and quality of work. The rating scales can also be adapted by including
traits that the company considers important for effectiveness on the job. A model of a graphic
rating scale is given below.
TABLE Typical Graphic Rating Scale
Employee Name ................... Job title ................. Department ......................... Rate ............... Data .........................
Quantity of work: Volume Unsatisfactory Fair Satisfactory Good Outstanding

of work under normal
working conditions
Quality of work: Neatness,
thoroughness and accuracy
of work Knowledge of job
A clear understanding of
the factors connected with
the job
Attitude: Exhibits
enthusiasm and
cooperativeness on
the job
Dependability:
Conscientious, thorough,
reliable, accurate, with
respect to attendance,
reliefs, lunch breaks, etc.
Cooperation: Willingness
and ability to work with
others to produce
desired goals.
From the graphic rating scales, excerpts can be obtained about the performance standards of
employees. For instance, if the employee has serious gaps in technical-professional knowledge
(knows only rudimentary phases of job); lacks the knowledge to bring about an increase in
productivity; is reluctant to make decisions on his own (on even when he makes decisions they
are unreliable and substandard); declines to accept responsibility; fails to plan ahead effectively;
wastes and misuses resources; etc., then it can safely be inferred that the standards of the
performance of the employee are dismal and disappointing.
The rating scale is the most common method of evaluation of an employee’s performance
today. One positive point in favour of the rating scale is that it is easy to understand, easy to use
and permits a statistical tabulation of scores of employees. When ratings are objective in nature
they can be effectively used as evaluators. The graphic rating scale may however suffer from a
long standing disadvantage, i.e., it may be arbitrary and the rating may be subjective. Another
pitfall is that each characteristic is equally important in evaluation of the employee’s performance
and so on.
(6) Behaviourally anchored rating scales. Also known as the behavioural expectations scale, this
method represents the latest innovation in performance appraisal. It is a combination of the
rating scale and critical incident techniques of employee performance evaluation. The critical
incidents serve as anchor statements on a scale and the rating form usually contains six to
eight specifically defined performance dimensions. The following chart represents an example
of a sales trainee’s competence and a behaviourally anchored rating scale.
TABLE An Example of Behaviorally Anchored Rating Scale (BARS)
Performance Points Behavior
Extremely good 7 Can expect trainee to make valuable suggestions for increased sales and to
have positive relationships with customers all over the country.
Good 6 Can expect to initiate creative ideas for improved sales.
Above average 5 Can expect to keep in touch with the customers throughout the year.
Average 4 Can manage, with difficulty, to deliver the goods in time.
Below average 3 Can expect to unload the trucks when asked by the supervisor.
Poor 2 Can expect to inform only a part of the customers.
Extremely poor 1 Can expect to take extended coffee breaks and roam around purposelessly.
How to Construct Bars?

Developing a BARS follows a general format which combines techniques employed in the
critical incident method and weighted checklist ratings scales. Emphasis is pinpointed on
pooling the thinking of people who will use the scales as both evaluators and evaluates.
Step 1. Collect critical incidents: People with knowledge of the job to be probed, such as job
holders and supervisors, describe specific examples of effective and ineffective behaviour related
to job performance.
Step 2. Identify performance dimensions: The people assigned the task of developing the
instrument cluster the incidents into a small set of key performance dimensions. Generally
between five and ten dimensions account for most of the performance. Examples of performance
dimensions include technical competence, relationships with customers, handling of paper
work and meeting day-to-day deadlines. While developing varying levels of performance for
each dimension (anchors), specific examples of behaviour should be used, which could later be
scaled in terms of good, average or below average performance.
Step 3. Reclassification of incidents: Another group of participants who are knowledgeable
about the job is instructed to retranslate or reclassify the critical incidents generated (in Step II)
previously. They are given the definition of job dimension and told to assign each critical
incident to the dimension that it best describes. At this stage, incidents for which there is not 75
per cent agreement are discarded as being too subjective.
Step 4. Assigning scale values to the incidents: Each incident is then rated on a one-to-seven or
one-to-nine scale with respect of how well it represents performance on the appropriate
dimension. A rating of one represents ineffective performance; the top scale value indicates
very effective performance. The second group of participants usually assigns the scale values.
Means and standard deviations are then calculated for the scale values assigned to each
incident. Typically incidents that have standard deviations of 1.50 or less (on a 7-point scale)
are retained.
Step 5. Producing the final instrument: About six or seven incidents for each performance
dimension – all having met both the retranslating and standard deviation criteria – will be
used as behavioural anchors. The final BARS instrument consists of a series of vertical scales
(one for each dimension) anchored (or measured) by the final incidents. Each incident is
positioned on the scale according to its mean value.
(7) Forced choice method. This method was developed to eliminate bias and the preponderance of
high ratings that might occur in some organisations. The primary purpose of the forced choice
method is to correct the tendency of a rater to give consistently high or low ratings to all the
employees. This method makes use of several sets of pair phrases, two of which may be positive
and two negative and the rater is asked to indicate which of the four phrases is the most and
least descriptive of a particular worker. Actually, the statement items are grounded in such a
way that the rater cannot easily judge which statements apply to the most effective employee.
The favourable qualities earn a plus credit and the unfavourable ones earn the reverse. The
worker gets over plus when the positive factors override the negative ones or when one of the
negative phrases is checked as being insignificantly rated.
The overall objectivity is increased by using this method in evaluation of employee’s
performance, because the rater does not know how high or low he is evaluating the individual
as he has no access to the scoring key. This method, however, has a strong limitation. In the
preparation of sets of phrases trained technicians are needed and as such the method becomes
very expensive. Further, managers may feel frustrated rating the employees ‘in the dark’. Finally,
the results of the forced choice method may not be useful for training employees because the
rater himself does not know how he is evaluating the worker. In spite of these limitations, the
forced choice technique is quite popular.
(8) Management by Objectives (MBO). MBO represents a modern method of evaluating the
performance of personnel. Thoughtful managers have become increasingly aware that the
traditional performance evaluation systems are characterized by somewhat antagonistic
judgments on the part of the rater. There is a growing feeling nowadays that it is better to make
the superior work with subordinates in fixing goals. This would inevitably enable subordinates
to exercise self-control over their performance behaviours. The concept of management by
objectives is actually the outcome of the pioneering works of Drucker, McGregor and Odiorne
in management science. Management by objectives can be described as “a process whereby the
superior and subordinate managers of an organisation jointly identify its common goals, define each
individuals’ major areas of responsibility in terms of results expected of him and use these measures as
guides for operating the unit and assessing the contributions of each of its members”. MBO thus
represents more than an evaluation programme and process. Practicing management scientists
and pedagogues view it as a philosophy of managerial practice; it is a method by which
managers and subordinates plan, organise, control, communicate and debate.
Features
m MBO emphasizes participatively set goals that are tangible, verifiable and measurable.
m MBO focuses attention on what must be accomplished (goals) rather than how it is to be
accomplished (methods).
m MBO, by concentrating on key result areas translates the abstract philosophy of management
into concrete phraseology. The technique can be put to general use (non-specialist technique).
Further it is “a dynamic system which seeks to integrate the company’s need to clarify
and achieve its profit and growth targets with the manager’s need to contribute and develop
himself”.
m MBO is a systematic and rational technique that allows management to attain maximum results
from available resources by focusing on achievable goals. It allows the subordinate plenty of
room to make creative decisions on his own.
The above-discussed methods are used to evaluate employees one at a time. In this section let us
discuss some techniques of evaluating one employee in comparison to another. Three such frequently
used methods in organisation are – ranking, paired comparison and forced distribution.
1 . Ranking method. This is a relatively easy method of performance evaluation. Under this method,
the ranking of an employee in a work group is done against that of another employee. The
relative position of each employee is tested in terms of his numerical rank. It may also be done
by ranking a person on his job performance against another member of the competitive group.
The quintessence of this method is that employees are ranked according to their levels of
performance. While using this method, the evaluator is asked to rate employees from highest to
lowest on some overall criterion. Though it is relatively easier to rank the best and the worst
employees, it is very difficult to rank the average employees. Generally, evaluators pick the top
and bottom employees first and then select the next highest and next lowest and move towards
the average (middle) employees. The long-standing limitations of this method are:
(i) The ‘whole man’ is compared with another ‘whole man’ in this method. In practice, it is
very difficult to compare individuals possessing varied behavioural traits.
(ii) This method speaks only of the position where an employee stands in his group. It does not
tell anything about how much better or how much worse an employee is when compared
to another employee.
(iii) When a large number of employees are working, ranking of individuals becomes a
tosticating issue.
(iv) There is no systematic procedure for ranking individuals in the organisation. The ranking
system does not eliminate the possibility of snap judgements.
In order to overcome the above limitations a paired comparison technique has been advanced
by organisational scholars.
2. Paired comparison method. Ranking becomes more reliable and easier under the paired
comparison method. Each worker is compared with all other employees in the group; for every
trait the worker is compared with all other employees. For instance, when there are five
employees to be compared, then A’s performance is compared with that of B’s and decision is
arrived at as to whose is the better or worse. Next, B is also compared with all others. Since A is
already compared with B, this time B is to be compared with only C, D and E. By this method
when there are five employees, fifteen decisions are made (comparisons). The number of decisions
to be made can be determined with the help of the formulae n (n-2). Ranking the employees by
the paired comparison method may be illustrated as shown in the Table 10.7 For several
individual traits, paired comparisons are made, tabulated and then rank is assigned to each
worker. Though this method seems to be logical, it is not applicable when a group is large.
When the group becomes too large, the number of comparisons to be made may become
frighteningly excessive. For instance, when n = 100, comparisons to be made are 100 (100-2) =
100 (98) = 9800.
Trait: ‘Quantity of Work’
TABLE – Employee Rated
As compared to A B C D E
A + – + –
B – + – +
C + – + –
D – + – –
E + – + +
3. Forced distribution method. Under this system, the rater is asked to appraise the employee
according to a predetermined distribution scale. The rater’s bias is sought to be eliminated here
because workers are not placed at a higher or lower end of the scale. Normally, the two criteria
used here for rating are the job performance and promo ability. Further, a five point performance
scale is used without any mention of descriptive statements. Workers are placed between the
two extremes of ‘good’ and ‘bad’ performances. For instance, the workers of outstanding merit
may be placed at the top 10% of the scale. The rest may be placed as – 20% -good, 40% -
outstanding, 20% -fair and 10% -fair. To be specific, the forced distribution method assumes
that all top grade workers should go to the highest 10% grade; 20% employees should go to the
next highest grade and so on. Job performance as the criterion apart, another equally important
factor in this method is promotability. Employees may be classified according to their
promotional merits. The scale for this purpose may consist of three points – namely, quite
likely promotional material, may/may not be promotional material and quite unlikely
promotional material. One strong positive point in favour of the forced distribution method is
that by forcing the distribution according to predetermined percentages, the problem of making
use of different raters with different scales is avoided. Further, this method is appreciated on
the ground that it tends to eliminate rater bias. The limitation of using this method in salary
administration however, is that it may result in low morale, low productivity and high
absenteeism. Employees who feel that they are productive, but find themselves placed in a
lower grade (than expected) feel frustrated and exhibit, over a period of time, reluctance to
work.
Other methods of appraising performance include. Group Appraisal, Human Resource Accounting,
Assessment Centre, Field Review, etc. These are discussed in the following sections:
1. Group appraisal. In this method, an employee is appraised by a group of appraisers. This
group consists of the immediate supervisor of the employee, other supervisors who have close
contact with the employee’s work, manager or head of the department and consultants. The
head of the department or manager may be the Chairman of the group and the immediate
supervisor may act as the Coordinator for the group activities. This group uses any one of
multiple techniques discussed earlier. The immediate supervisor enlightens other members
about the job characteristics, demands, standards or performance, etc. Then the group appraises
the performance of the employee, compares the actual performance with standards, finds out
the deviations, discusses the reasons therefore, suggests ways for improvement of performance,
prepares an action plan, studies the need for change in the job analysis and standards and
recommends changes, if necessary.
This method eliminates ‘personal bias’ to a large extent, as performance is evaluated by multiple
rates. But it is a very time consuming process.
2. Human resource accounting. HRA is a sophisticated way to measure (in financial terms) the
effectiveness of personnel management activities and the use of people in an organisation. It is
the process of accounting for people as an organisational resource. It tries to place a value on
organisational human resources as assets and not as expenses. The HRA process shows the
investment the organisation makes in its people and how the value of these people changes
over time. The acquisition cost of employees is compared to the replacement cost from time to
time. The value of employees is increased by investments made by the company to improve the
quality of its human resources such as training, development skills acquired by employees
over a period of time through experience, etc. When qualified, competent people leave an
organisation; the value of human assets goes down. In this method, employee performance is
evaluated in terms of costs and contributions of employees. Human resource costs include
expenditure incurred by the company in hiring, training, compensating and developing people.
The contributions of human resources is the money value of labour productivity. The cost of
human resources may be taken as the standard. Employee performance can be measured in
terms of employee contribution to the organisation. Employee performance can be taken as
positive when contribution is more than the cost and performance can be viewed as negative if
cost is more than contribution. Positive performance can be measured in terms of percentage of
excess of employee contribution over the cost of employee. Similarly negative performance can
be calculated in terms of percentage of deficit in employee contribution compared to the cost
of employee. These percentages can be ranked to ‘Zero Level’ as shown in the Table below
Rank Rating Percentage of surplus/Deficit of

contribution to cost of employee
1. Extremely good performance Over 200
2. Good performance 150 – 200
3. Slightly good performance 100 – 150
4. Neither poor nor good 0 – 100
5. Slightly poor performance 0
6. Poor performance 0 to (- 50)
7. Extremely poor performance (-50) to (-100)
This technique has not developed fully and is still in the transitionary stage.
3. Assessment centre. This method of appraising was first applied in German Army in 1930.
Later business and industrial houses started using this method. This is not a technique of
performance appraisal by itself. In fact it is a system or organisation, where assessment of
several individuals is done by various experts using various techniques. These techniques
include the methods discussed before in addition to in-basket, role playing, case studies,
simulation exercises, structured in sight, transactional analysis, etc.
In this approach individuals from various departments are brought together to spend two or
three days working on an individual or group assignment similar to the ones they would be
handling when promoted. Observers rank the performance of each and every participant in
order of merit. Since assessment centres are basically meant for evaluating the potential of
candidates to be considered for promotion, training or development, they offer an excellent
means for conducting evaluation processes in an objective way. All assesses get an equal
opportunity to show their talents and capabilities and secure promotion based on merit. Since
evaluators know the position requirements intimately and are trained to perform the evaluation
process in an objective manner, the performance ratings may find favor with majority of the
employees. A considerable amount of research evidence is available to support the contention
that people chosen by this method prove better than those chosen by other methods. The centre
enables individuals working in low status departments to compete with people from well-
known departments and enlarge their promotion chances. Such opportunities, when created
on a regular basis, will go a long way in improving the morale of promising candidates working
in less important positions.
4. Field Review Method. Where subjective performance measures are used, there is scope for
rater’s biases influencing the evaluation process. To avoid this, some employees use the field
review method. In this method a trained, skilled representative of the HR department goes into
the ‘field’ and assists line supervisors with their ratings of their respective subordinates. The
HR specialist requests from the immediate supervisor specific information about the employees
performance. Based on this information, the expert prepares a report which is sent to the
supervisor for review, changes, approval and discussion with the employee who is being
rated. The ratings are done on standardized forms Since an expert is handling the appraisal
process, in consultation with the supervisor, the ratings are more reliable. However, the use
of HR experts makes this approach costly and impractical for many organisations.
Multisource Feedback/360-degree feedback. Involves combining evaluations from several sources
into an overall appraisal. It is called 360-degree feedback. It combines the full circle of ratings from all
sources – from superiors, subordinates, peers and self, and even evaluations by the organisation’s
customers or clients who have dealings with the person being rated. Data from unique perspectives.
May reduce many forms of bias. If all parties are told that their ratings will be compared with those
assigned by others, they are likely to be more objective in their assessments.
The level of agreement between different ratings appears to vary as a function of type of job, being
generally lower for managerial and professional employees than for employees in blue-collar and
service jobs. If ratings show a high level of agreement, a manager may be more willing to accept
criticism because it comes from sources other than the immediate supervisor.
Multisource feedback is more expensive than appraisals from a single source, but there are
indications that the combination approach is growing in popularity despite its cost. Used primarily
for development purposes but some organisations are also using them for pay and promotion decisions.
Potential Appraisal
In most Indian organisations, people earn promotions on the basis of their past performance. The past
performance is considered a good indicator of future job success. This could be true, if the job to be
played by the promotee are similar. However, in actual practice, the roles that a role holder played in
the past may not be the same he is expected to play if he assumes a different job after his transfer or
promotion to a new position. Past performance, therefore, may not be a good indicator of the suitability
of an indicator for a higher role.
To overcome this inadequacy, organisations must think of a new system called potential appraisal.
The objective of potential appraisal is to identify the potential of a given employee to occupy higher
positions in the organisational hierarchy and undertake higher responsibilities.
Potential appraisals are required to:
m inform employees about their future prospects;
m help the organisation chalk out of a suitable succession plan;
m update training efforts from time to time;
m advise employees about what they must do to improve their career prospects.
Introducing a Good Potential Appraisal System

The following are some of the steps required to be followed while introducing a potential appraisal
system:
m Role Descriptions. Organisational roles and functions must be defined clearly. To this end, job
descriptions must be prepared for each job.
m Qualities needed to perform the roles. Based on job descriptions, the roles to be played by
people must be prepared (i.e., technical, managerial jobs and behavioral dimensions).
m Rating mechanisms. Besides listing the functions and qualities, the potential appraisal system
must list mechanisms of judging the qualities of employees such as:
n Rating by others. The potential of a candidate could be rated by the immediate supervisor
who is acquainted with the candidate’s work in the past, especially his technical capabilities.
n Tests. Managerial and behavioral dimensions can be measured through a battery of
psychological tests.
n Games. Simulation games and exercises (assessment centre, business games, in-basket,
role play, etc.) could be used to uncover the potential of a candidate.
n Records. Performance records and ratings of a candidate on his previous jobs could be
examined carefully on various dimensions such as initiative, creativity, risk taking ability,
etc., which might play a key role in discharging his duties in a new job.
m Organising the system. After covering the above preliminaries, he must set up a system that
will allow the introduction of the scheme smoothly giving answers to some puzzling questions:
i. How much weight age to merit in place of seniority in promotions?
ii. How much weight age to each of the performance dimensions – technical, managerial,
behavioral qualities?
iii. What are the mechanisms of assessing the individual on different indicators of his potential
and with what reliability?
m Feedback. The system must provide an opportunity for every employee to know the results of
his assessment. “He should be helped to understand the qualities actually required for
performing the role for which he thinks he has the potential, the mechanisms used by the
organisations to appraise his potential and the results of such an appraisal”.
TRAINING AND DEVELOPMENT

Meaning of Training
Training is an organised process for increasing the knowledge and skills of people for doing a particular
job. It is a learning process involving the acquisition of skills and attitudes. The purpose of training is
to improve the current performance. Training is a continuous process because a person never stops
learning. The purpose of Training is to mould the behaviour of people so that they can do their jobs in
a better way.
Training implies systematic procedure whereby employees are imparted technical knowledge
and skill for specific jobs. It emphasizes improvements of the abilities of employees to handle specific
jobs and operations more effectively.
1. Training is the act of increasing the knowledge and skill of an employee for doing a particular job.
2. Training refers to the methods used to give new or present employees the skills they need to
perform their jobs.
3. Training refers to any process by which the aptitudes, skills and abilities of employees to
perform specific jobs are increased.
Definitions of Training
Training is that process by which the efficiency of the employees increases and develops. Training is
a specialised knowledge which is required to perform a specific job.
Training has been defined by different scholars of management. Some important definitions of
training are as under:
m According to Dale.S.Beach, “Training is the organised procedure in which people learn
knowledge and skill for definite purpose”.
m According to Jucius, “The term training is used here to indicate only process by which the
aptitudes, skill and abilities of employees to perform specific jobs are increased”.
m According to Elppo, “Training is the act of increasing the knowledge and skill of an employee
for doing a particular job.
m According to Dale Yoder, “Training is the process by which manpower is filled for the particular
jobs it is to perform.” In simple words, “Training is to make proficient by instruction and
practice as in some profession or work.
Training and Development

Training and development is a subsystem of an organisation and core function of human resource
management. It ensures continuous skill development of employees working in organisation
and habituates process of learning for developing knowledge to work. Training and Development is
the foundation for obtaining quality output from employees.
Training and Development is a structured program with different methods will be designed by
professionals in particular job. It has become most common and continuous task in any organisation
for updating skills and knowledge of employees in accordance with changing environment.
Optimisation of cost with available resources has become pressing need for every organisation which
will be possible only by way of improving efficiency and productivity of employees, possible only by
way of providing proper employee training and development conditioned to that it should be provided
by professionals.
Traditional and Modern Approach of Training and Development

Traditional Approach. Most of the organisations before never used to believe in training. They were
holding the traditional view that managers are born and not made. There were also some views that
training is a very costly affair and not worth. Organisations used to believe more in executive pinching.
But now the scenario seems to be changing.
Modern approach of training and development is that Indian Organisations have realized the impor-
tance of corporate training. Training is now considered as more of retention tool than a cost. The training
system in Indian Industry has been changed to create a smarter workforce and yield the best results.
The HR Training and Development Manager is responsible for the organisation’s staff training
requirements, programs, and career development needs. They supervise training staff, plan and
administer training seminars, and manage conflict resolution, team building, and employee skill
evaluations.
The HR Training and Development Specialist plans, produces and administers staff and
management training programs. They conduct programs to develop employee skills in accordance
with organisation practices and policies. Additionally, they research and evaluate training resources,
as well as suggest new topics and methods.
According to Robert Fritz, “The way to activate the seeds of your creation is by making choices
about the results you want to create. When you make a choice, you activate vast human energies and
resources, which otherwise go untapped.”
Objective of Training and Development

The principal objective of training and development division is to make sure the availability of a
skilled and willing workforce to an organisation. In addition to that, there are four other objectives:
Individual, Organisational, Functional, and Societal.
m Individual Objectives – help employees in achieving their personal goals, which in turn,
enhances the individual contribution to an organisation.
m Organisational Objectives – assist the organisation with its primary objective by bringing
individual effectiveness.
m Functional Objectives – maintain the department’s contribution at a level suitable to the
organisation’s needs.
m Societal Objectives – ensure that an organisation is ethically and socially responsible to the
needs and challenges of the society.
In the field of human resource management, training and development is the field concerned
with organisational activity aimed at bettering the performance of individuals and groups in
organisational settings. It has been known by several names, including employee development,
human resource development, and learning and development.
Training and development encompasses three main activities: training, education, and
development. Garavan, Costine, and Hearty, of the Irish Institute of Training and Development, note
that these ideas are often considered to be synonymous. However, to practitioners, they encompass
three separate, although interrelated, activities:
m Training. This activity is both focused upon, and evaluated against, the job that an individual
currently holds.
m Education. This activity focuses upon the jobs that an individual may potentially hold in the
future, and is evaluated against those jobs.
m Development. This activity focuses upon the activities that the organisation employing the
individual, or that the individual is part of, may partake in the future, and is almost impossible
to evaluate.
The “stakeholders” in training and development are categorized into several classes. The sponsors
of training and development are senior managers. The clients of training and development are business
planners. Line managers are responsible for coaching, resources, and performance. The participants
are those who actually undergo the processes. The facilitators are Human Resource Management
staff. And the providers are specialists in the field. Each of these groups has its own agenda and
motivations, which sometimes conflict with the agendas and motivations of the others.
Purpose of Training
Training is essential in organisations because of the following reasons:
1. To increase employees’ performance on their current assignment.
2. To prevent industrial accidents. Through training workers know the right way of doing the job
and how to handle the machines. Thus it increases safety measures taken by workers and
reducing the chances of accidents.
3. To prevent manpower obsolescence. Due to technological changes and competition, workers
are required to update and well-equip themselves with the latest ways of job performance. So,
training helps them in learning the new methods
4. To increase employee morale. A well-trained employee will take interest in his work and
derives satisfaction from his job. This raises his morale to perform well in future.
5. To reduce wastage. An untrained person will waste the costlier raw material, damage machines
and even cause accidents. With the help of training, workers come to know what is the right
way of using the material, what is the right way of operating and handling the machine, etc.
6. A trained person needs less supervision as compared to an untrained person. A trained
person can take routine decisions by himself and is most disciplined. Training helps to make
employee independent and more responsible towards the job.
7. To enhance employee’s adjustment with the latest changes at work place. For instance,
technological developments require new approach towards work. It is only through training
that a worker can easily learn new work techniques. A little bit of computer training is required
these days in almost every field like banks, railways, etc. to adjust to new ways of doing work.
8. To reduce absenteeism and turnover. A trained worker takes full interest in his job thus
derives job satisfaction. A satisfied worker will be regular and thinks less to quit.
9. To fill the vacancies when need arises. An organisation by imparting training makes a ready
pool of trained candidates available with it. Whenever there is vacancy at higher level so it will
take less time and effort to promote a trained person.
10. Lastly, training is also essential for the overall growth of workers. Management development
programmes seem to give participants a wider awareness, an enlarged skill and enlightened
altruistic philosophy and make enhanced personal growth possible.’ Also, with the help of
training, employees acquire knowledge and skills; this increases their market value and earning
power.
Objectives of Training
Training is one of the most useful tools available to management. A manager makes use of training to
help him to manage. Thus, training is given to employees with the following objectives:
(1) To increase productivity.
(2) To make first line Supervisors a more effective tool of management.
(3) To bring out more cordial relations, i.e. employee and employer relations.
(4) To increase morale and team spirit among the workers.
(5) To increase effective co-operation and co-ordination at all levels.
(6) To impart various social and supervisory skills.
(7) To develop the individual to utilize the knowledge and experience and inherent abilities for
higher performance..
(8) To accept more shop for responsibility.
(9) To increase knowledge (Technical know-how) and economical use of resources.
Differences Between Training and Development
Basis Training Development
Meaning Training means learning skills and Development means growth of an employee
knowledge for the particular job. in all aspects
Use Training is used for imparting specific Development is used for the overall growth
Skills. of the executives.
Nature It is job related in nature. It is career oriented in nature.
Perspective It has short term perspective. It has long term perspective.
Aim The best possible performance on The best possible utilization of the employee
the specific job by the employee. capability.
Scope Training is limited in scope and is the Development is wider term and includes
part of development. education, learning, and training.
Level of It is imparted to lower level employees The level of development is higher and
involved or junior managers. concerns with senior managers.
persons
Depth of Deep Knowledge is provided. Development does not provide deep
knowledge knowledge and simply facilitates growth.
Initiative Initiative of learning is not on the Initiative of learning is on the employee and
in learning employee and is on the organisation. not on the organisation.
Duration It is imparted for the fixed period. It is an unending practice in the company.
Characteristics or Features of Training

Training costs is investment and not waste. The main characteristic of training is that expenses
incurred on training provide benefits in the long run in the form of increased efficiency of the employees.
So an expense incurred on training is considered as an investment and not the waste.
1. Job Related: Training is always related to a particular job i.e. training is provided to the employees
in relation to make him efficient in a particular job. It increases the skills of the employees for the
particular job.
2. Continuous: Training is a continuous process, as employees require training from time to time
relating to new changes which are introduced in the work environment.
3. Provides benefit to employee and employer: Training is beneficial to both employer and employee.
It increases the capabilities of the employee and they perform better at work, which in turn
gives good output to the employer in the form of increased profits.
4. Training is different from development: Training courses are typically designed for a short term,
stated set purpose such as operation of some pieces of machinery, while development involves
a broader education for the long term purposes.
5. Training is different from education: Although the concepts of training and education are closely
related but the difference is that the purpose of training is more specific and immediate as
compared to the purpose of education.
6. Training is needed at all levels: Another feature of training is that it is required by the mangers
of all the three levels i.e. top, middle, and supervisory level. Only difference is the nature of
training at the different levels.
7. All types of employees: Training is required by all types of employees whether new or old. Thus
whether the employee is new or old in the organisation, he/she requires training.
Need of the Training

Training bridges the gap between the job requirements and employee’s present capabilities. Every
organisation should provide training to its workforce due to the technological changes and automation.
Training requires for both employer and the employees.
Need for training arises on account of the following reason :
1. New Environment. When a new employee comes to work he is unaware of the environment in
the organisation. Therefore, he should be given some training to make him familiar with his
superiors and peer company’s rules and regulations, etc. Such training is known as induction
or orientation. It enables the new employee to gain self-confidence and to adjust himself in the
new environment. Training makes the new employees efficient.
2. Faculty Methods. Some employees might have picked up defective ways of doing work which
may result in wastage and inefficiency. Training is required to remove these defects and to
teach them correct methods and behaviour patterns. This is type of training may be called
remedial training.
3. Prevention of Accidents. Training is needed to prevent industrial accidents. For this purpose,
safety conscious must be created among workers so that they realise the significance of safe
working. Moreover, they should be given instructions in the use of safety devices. Such
training is known as safety training.
4. Career Development. When persons working at lower levels are promoted to higher positions,
they require training in the higher job. This is necessary not only to replace the outgoing
executive but also to provide opportunity for advancement to the employees. Such training
may be described as promotional training. It simplifies the problem of executive succession
and helps to ensure the continuity of the organisation.
In fact, no organisation has a choice of whether to train or not. The only choice is which
method of training to use.
Benefits of Training to Employers/Organisation

1. Increased Productivity. Increase in the skills of the employees, usually increments the both
quality and quantity of output. Training plays an important role in increasing the efficiency
of the employees and increases their skills for doing the job in a better way. This increases
the productivity in the organisation.
2. Reduced Supervision. Training also helps to reduce supervision as trained employees perform
better even with limited supervision. Both employee and supervisor want lesser supervision
and greater independence, which can be only possible through training.
3. Reduced Accidents. According to a survey, maximum accidents are caused due to the
deficiencies in the skills of the people than due to the deficiencies in the working conditions.
Proper training for the skills required for the job contributes towards the reduction in the
accident rate.
4. Ensures flexibility and stability. The organisation gains, stability as it continues to have
trained personnel for its varied requirements. Continuous and timely training makes the
organisation more competent and enables it to overcome shortages of skilled personnel.
5. Economy in operations. It is a well known fact that trained personnel’s are capable of doing
their tasks with care and caution. The wastage of time, energy, and materials is minimized
and cost of production is reduced.
Benefits for the Employees

1. Increase in morale of employees. Training increases morale of the employees. Training
increases employee’s morale by relating their skills with the job requirements. Trained
employees can see their jobs in the more meaningful ways. This increases the morale of the
employees.
2. More employment opportunities. A trained employees gets more employment opportunities
as compared to the untrained employee. This is because every firm wants the trained and
capable workers.
3. More adaptability. As the trained employee can better understand his job, he can better adapt
to the changes which are introduced in the working environment due to the changes in the
market conditions.
4. Compensates incomplete education. Training completes the incomplete education acquired
by the employees. At the time of joining the employee only has the theoretical knowledge
about the work and training provides the practical knowledge, which makes the employee
more efficient.
5. More chances of promotion. Employees who have more knowledge and skills about the job are
considered more efficient and have more chances of promotion as compared to the employees
who have less knowledge and skills. This knowledge and skill which forms the basis of
promotion is provided through training.
Types of Training Methods

There are number of training methods available as a result of research. The training programmes
commonly used to train the various levels of employees are as follow:
1. Vestibule Training. This term is used to designate training in classroom for skilled production
and clerical jobs. Under this method employees are trained in a special training centre (vestibule)
within the plant. In the vestibule an attempt is made to duplicate nearly as possible the actual
work conditions of the work place. Qualified instructors provide the training under carefully
planned and controlled learning conditions.
2. Apprenticeship Training. In this method the trainees work as apprentices under the direct
supervision of experts for a long period and some stipend is paid to them during the training
period. Trainees are imparted knowledge and skill in doing a particular crafts or a series of
related jobs. In India, employers in specified industries are required under the Apprenticeship
Act 1962, to train the certain number of apprentices in designated trades.
3. Job Rotation. In this method the trainee moves from one job to another, so that he can know to
work on all the seats. This type of training is common for the employees of general management
positions. Under this method trainee understand the problems of the other seats while working
on that seat. Such movement may be for the period ranging from 6 months to 2 years before a
person is established in a particular job or department.
4. Internship Training: This training is basically provided to bring the balance between the
theoretical knowledge and the practical skills required to do the job. This training is the combined
effort of the educational institutions and business organisations. In this theoretical knowledge
is imparted by educational institutions and practical knowledge is imparted through business
organisations.
Training and Development Methods

There are several T&D methods available. The use of a particular method depends which method
accomplishes the training needs and objectives. Training methods can be classified into two categories:
I . On-the-Job Methods
On the job methods is the heart and soul of all training in business and industry. OTJ is known
sometimes called shop training is the most universal form of employee development. This is the
traditional method of learning, which is designed to maximize learning while allowing the employee
to perform his job under the supervision and guidance of the trained worker or instructor, providing
him practical application and making principle and concepts more meaningful.
This methods of training in which a person learns a job by actually doing/performing it. A person
works on a job and learns and develops expertise at the same time.
1. Job instruction training. Commonly known as JIT, this techniques of training was developed
during the world war II. It is four instructional process. JIT is basically used to teach the
workers how to do their current jobs. A trainer, supervisor or co-worker can act as a coach.
2. Coaching. In this, the supervisor or the superior acts as a guide and instructor of the trainee.
It is a kind of the daily training and feedback is given to employees by their immediate
supervisor. It is continuous process learning by doing. Coaching involves directs personal
instruction and guidance. This involves extensive demonstration and continuous critical
evaluation and correction.
3. Mentoring. It is somewhat different from training methods. In mentoring, senior person
in the organisation assumes the responsibility for training as well as grooming of a junior. A
mentor act as a teacher, guide, counsellor, philosopher, and facilitator of the junior
person.
4. Job rotation. Position rotations training is the broadening of the background of the trainees
in the organisation. If the rotated periodically from one job to another job, he requires general
background. He understand the larger perspective and different functional areas.
This refers to shifting/movement of an employee from one job to another on regular intervals.
5. Special projects. The trainees’ may ask to work on special projects related with departmental
objectives. By this, the trainees will acquire the knowledge of the assigned work and also
learn how to work with others.
6. Committee assignment. In this, the trainees become members of a committee. The committee
is assigned a problem to discuss and make recommendations.
II. Off-the-Job Methods

These methods require trainees to leave their workplace and concentrate their entire time towards
the training objectives. These days off-the-job training methods have become popular due to
limitations of the on-the-job training methods such as facilities and environment, lack of group
discussion and full participation among the trainees from different disciplines, etc. In the off-the-job
methods, the development of trainees is the primary task rest everything is secondary. Following
are the main off-the-job training methods:
1. Special courses and lectures. These are the most traditional and even famous today, method
of developing personnel. Special courses and lectures are either designed by the company
itself or by the management/professional schools. Companies then sponsor their trainees to
attend these courses or lectures. These are the quick and most simple ways to provide
knowledge to a large group of trainees.
2. Conferences and seminars. In this, the participants are required to pool their thoughts, ideas,
viewpoints, suggestions and recommendations. By attending conferences and seminars,
trainees try to look at a problem from different angles as the participants are normally from
different fields and sectors.
3. Selected reading. This is the self-improvement training technique. The persons acquire
knowledge and awareness by reading various trade journals and magazines. Most of the
companies have their own libraries. The employees become the members of the professional
associations to keep abreast of latest developments in their respective fields.
4. Case study method. This technique was developed by Harvard Business School, U.S.A. It is
used as a supplement to lecture method. A case is a written record of a real business
situation/problem faced by a company. The case is provided to the trainees for discussion
and analysis. Identification and diagnose of the problem is the aim in case study method.
Alternate courses of action are suggested from participants.
5. Programmed instruction/learning. This is step-by-step self-learning method where the medium
may be a textbook, computer or the internet. This is a systematic method for teaching job skills
involving presenting questions or facts, allowing the person to respond and giving the learner
immediate feedback on the accuracy of his or her answers.”
6. Brainstorming. This is creativity-training technique, it helps people to solve problems in a new
and different way. In this technique, the trainees are given the opportunity to generate ideas
openly and without any fear of judgement. Criticism of any idea is not allowed so as to reduce
inhibiting forces. Once a lot of ideas are generated then they are evaluated for their cost and
feasibility.
7. Role-playing. In this method, the trainees are assigned a role, which they have to play in an
artificially created situation. For example, a trainee is asked to play the role of a trade union
leader and another trainee is required to perform the role of a HR manager. This technique
results in better understanding of each other’s situation by putting foot in other’s shoes.
8. Vestibule schools. Large organisations frequently provide what are described as vestibule
schools a preliminary to actual shop experience. As far as possible, shop conditions are
duplicated, but instruction, not output is major objective.” A vestibule school is operated as a
specialised endeavour by the personnel department. This training is required when the amount
of training that has to be done exceeds the capacity of the line supervisor; a portion of training
is evolved from the line and assigned to staff through a vestibule school.” The advantage of a
vestibule school is specialisation.
9. Apprenticeship training. This training approach began in the Middle Ages when those who
wanted to learn trade skill bound themselves to a master craftsman and worked under his
guidance. Apprenticeship training is a structured process by which people become skilled
workers through a combination of classroom instruction and on-the-job training.
10. In-basket exercise. In this technique, the trainees are provided background information on a
simulated firm and its products, and key personnel. After this, the trainees are provided with
in-basket of memos, letters, reports, requests and other documents related with the firm. The
trainee must make sense out of this mass of paperwork and prepare memos, make notes and
delegate tasks within a limited time period.
11. Business games. Business games involve teams of trainees. The teams discuss and analyse the
problem and arrive at decisions. Generally, issues related with inventories, sales, R&D,
production process, etc. are taken up for consideration.
12. Behaviour modelling. This is structured approach to teach specific supervisory skill. This is
based on the social learning theory in which the trainee is provided with a specific model of
behaviour and is informed in advance of the consequences of engaging in that type of behaviour.
13. Sensitivity (T-group) training. In this type of training, a small group of trainees consisting of 10
to 12 persons is formed which meets in an unstructured situation. There is no set agenda or
schedule or plan. The main objectives are more openness with each other, increased listening
skills, trust, support, tolerance and concern for others. The trainers serve a catalytic role. The
group meets in isolation without any formal agenda. There is great focus on inter-personal
behaviour. And, the trainer provides honest but supportive feedback to members on how they
interacted with one another.
14. Multiple management. This technique of training was first introduced by McCormick, President
of McCormick & co. of Baltimore in 1932. He gave the idea of establishing a junior board of
directors. Authority is given to the junior board members to discuss any problem that could be
discuss in senior board and give recommendations to the senior board. Innovative and
productive ideas became available for senior board.
The Training Process

Generally, training programs consist of seven steps. These are the following:
I. Assessment of Organisational Objectives. First of all, in an organisation, there should be a
proper assessment of objectives. Employers today have to adapt to technological changes,
improve product and service quality and boost productivity to stay competitive.’
II. Determining Training Needs. Before an organisation takes decision regarding training of
its workers and allocates huge resources for it, organisations have to assess the training needs
of its employees. In this regard, a trainer has said, “we sit down with management and help
them identify strategic goals and objectives and the skills and knowledge needed to achieve
them. Then we work together to identify whether our staff has the skills and knowledge and
when they do not that’s when we discuss training needs.”
Training need analysis step is crucial for many reasons. For example, employees’ performance
may be down because the work standards are not clear to them, due to faulty selection, due
to lack of motivation, poor job design, less supervision or personal problem. In these cases,
the problem may be solved just by proper job design, offering incentives to motivate, improving
supervision, etc. Where the deficiency in performance is because of lack of knowledge or skill,
there training is essentially required.
The two main ways to identify training needs are task analysis and performance analysis.
Task analysis is a detailed study of a job to identify the specific skill required and it is
especially suitable for determining the needs of employees who are new to their jobs. Whereas,
performance analysis is the process of verifying that there is performance deficiency and
determining if such deficiency should be corrected through training or through some other
means (like transferring the employee)’ Apart from task and performance analysis
supplementary methods can be used to identify training needs such as supervisors’ reports,
personnel records, management requests, observations, test of job knowledge and
questionnaire surveys.’
III. Setting goal and objectives of training. Once it is clear that training is the solution of
performance deficiency then the training objectives are set. In other words, once training needs
are assessed, then the objectives of training are established. These objectives will specify what
a trainee should accomplish after the successful completion of a training programme. For
example, to type 60 words per minute without difficulty and 2 to 3 errors per page, to program
a single website in half a day, etc.
IV. Preparing the training budget. Preparation of the training budget is specifically concerned
with the allocation of funds to be provided for the training for carrying out the training
activities as envisaged in the plan.
V. Deciding about the training venue. The decision about the training venue depends invariably
on the type of training given. For in company and on the job training, the venue naturally in
the plant itself. In the case of the job training through external sources, the venue has to be
somewhat away from the trainees working environment. The venue of the training will be
place some where outside the agency.
VI. Deciding about the methods and techniques to be deployed in training. There are several
on the job and off the job methods of training are discussed. The choice of any methods would
depends upon the specific objectives of the training programme.
VII. Evaluation of Training Programme. After the completion of the training programme, the
organisation evaluates the programme to see the effectiveness of training efforts. This is done
to check whether the training programme accomplish specific training objectives or not. Also,
the conduct of training programme is costly; this includes needs assessment costs, salaries of
the training department staff, purchase of equipment (computers, video, and handouts),
programme development cost, evaluation costs, trainer’s costs, rental facilities and trainees
wage during the training period.” Thus it is important to assess the costs and benefits
associated with the training programme, in order to convince the top management that the
benefits outplay costs.
Training Process (Functional Development Cycle)
1 Assessment 2 Design 3 Delivery

* Analyse * Pretest * Schedule
training needs trainees training
* Identify * Select training * Conduct
training methods training
objectives and * Plan training * Monitor
criteria content training
Evaluation
* Measure training
outcomes
* Compare outcomes to
objectives/criteria
QUALITY OF WORK LIFE
Meaning and Definitions
Quality of work life refers to the favorableness or unfavorableness of the job environment of an
organisation for its employees. It is generic term which covers a person’s feelings about every
dimension of his work e.g. economic incentives and rewards, job security, working conditions,
organisational and interpersonal relationships etc. The term QWL has different meanings for different
people.
A few important definitions of QWL are as follows:
According to Harrison: “Quality of Work Life is the degree to which work in an organisation
contributes to material and psychological well being of its members.”
According to D.S.Cohan “Quality of Work Life is a process of joint decision making,
collaborations and building mutual respect between management and employees.”
According to the American Society of Training and Development “Quality of Work Life is a
process of work organisation which enables its members at all levels to participate actively and
effectively in shaping the organisations’ environment, methods and outcomes. It is a value based
process which is aimed towards meeting the twin goals of enhanced effectiveness of the organisation
and improved quality of life at work for the employees”.
Quality of Work Life influences the productivity of the employees. Researchers have proved
that good QWL leads to psychologically and physically healthier employees with positive feelings.
To summarize, Quality of Work Life is the degree to which employees of an organisation are
able to satisfy their personal needs through experience in the organisation. Its main aim is to create
a work environment where employees work in cooperation with each other and contribute to
organisational objectives.
Some of the Steps Required Before QWL Programme are:
(i) Top Management Support. Top management, line colleagues and workers before launching
any QWL project Obtaining deep commitment is easier said than done, it requires human
relations and interpersonal communication skills Once obtained, it must be sustained for a
long period of time.
(ii) Planning QWL Programme. Initial planning is important before launching any QWL
programme, it is important to understand the thinking of the work force. As pointed out by
few workers in some sectors might not want their jobs to be enriched, may not like to be
involved in decision-making and may not see their jobs as monotones dull. An investigation
into workers attitudes, job performances values etc. should be incorporated into the planning
chart
We will have to involve — the managers, engineers, workers representatives and even outside
consultants at the initial stage.
(iii) Work/Situation Analysis
— We have to perform the following tasks to enhance QWL
— Establish a working environment that encourages continuous learning, training and
active interest in both the job and the product or service to which the job contributes Such
an environment enables a worker to use and develop his personal skills and knowledge
which in turn affects his involvement his self concern and the challenge the obtain from
the work itself.
— Make the job itself more challenging by structuring it so that an employee can self manage
and feel responsible for significant, identifiable output if he desires that kind of
responsibility
– Provide opportunities for continued growth : that is, opportunities to advance in
organisational or carrier terms.
(iv) Adequate training for people involved in QWL programme. All employees should be briefed
on the reasons for the introduction of the QWL programme and its likely impact. Supervisors
and line managers should be trained to equip them to function effectively in this less directive
more collaborative style.
(v) Relationship of QWL Programme to Collective Bargaining. We have pointed out that the
establishment of joint / management-union meetings outside the traditional area of collective
bargaining tends to arouse both management and trade union suspicion. Personnel managers
therefore need to develop clear working strategies outlining the relationship between
Participation and collective issue can be resolved between the two systems.
(vi) Other specific Areas Other specific areas which involve:
— to establish a feedback system on employer performance.
— to review financial incentives such as cost savings and profit sharing where feasible.
— to evaluate and analyse results including failures leading to revised efforts towards
Continual improvement.
Scope of the Quality of Work Life

Quality of work life is a multi dimensional aspect-The workers expect the following needs to be
fulfilled by the organisations:
1. Compensation. The reward for work should be above a minimum standard for life and should
also be equitable. There should be a just an equitable balance between the effort and the reward.
2. Health and Safety. The working environment should be free from all hazards detrimental to
the health and safety of the employees. The main elements of a good physical environment
for work should be reasonable hours of work, cleanliness, pollution free atmosphere, risk
free work etc.
3. Job Security. The organisation should offer security of employment. Employees should not
have to work under a constant concern for their future stability of work and income.
4. Job Design. The design of jobs should be such which is capable of meeting the needs of the
organisation for production and the individual for satisfying and interesting work. Quality
of work life can be improved if the job allows sufficient autonomy and control, provides timely
feedback on performance and uses a wide range of skills.
5. Social Integration. The workers should be able to feel a sense of identity with the organisation
and develop a feeling of self esteem. This includes the elimination of discrimination and
individualism, while encouraging teams and social groups to form.
6. Social Relevance of Work. Work should not only be a source of material and psychological
satisfaction, but also a means of social welfare. An organisation that has greater concern for
social causes can improve the quality of work life.
7. Scope for Better Career Opportunities. The management should provide facilities to the
employees for improving their skills both academic and otherwise. The management should
always think of utilizing human resources for expansion and development of the
organisations.
Principles of Quality of Work Life: According to N.Q. Herrick and M. Maccoby there are four
basic principles, which will humanize work and improve the Quality of Work Life:
1. The Principle of Security. Quality of work cannot be improved until employees are relieved
of the anxiety, fear and loss of future employment. The working conditions must be safe and
fear of economic want should be eliminated. Job security and safety against occupational
hazards is an essential precondition of humanization of work.
2. The Principle of Equity. There should be a direct and positive relation between effort and
reward. All types of discrimination between people doing similar work and with same level
of performance must be eliminated. Equity also requires sharing the profits of the organisation.
3. The Principle of individualism. Employees differ in terms of their attitudes, skills, potentials
etc. Therefore, every individual should be provided the opportunities for development of his
personality and potential. Humanization of work requires that employees are able to decide
their own pace of activities and design of work operations.
4. The Principle of Democracy. This means greater authority and responsibility to employees.
Meaningful participation in decision making process improves the quality of work life.
Techniques for Improving Quality of Work Life

The quality of work life movement is of recent origin and has a long way to go. Individual as well as
organised efforts are required to improve the quality of work life for millions of workers in the country.
Some of the techniques used to improve the QWL are as given below:
1. Flexible Work Schedules. There should be flexibility in the work schedules of the employees.
Alternative work schedules for the employees can be flexi time, staggered hours, compressed
work week etc. Flexi time is a system of flexible working hours, staggered hours schedule
means that different groups of employees begin and end work a different intervals. Compressed
work week involves longer hours of work per day for fewer days per week.
2. Job Redesign. Job redesigning or job enrichment improves the quality of the jobs. It attempts
to provide a person with exciting, interesting, stimulating and challenging work. It helps to
satisfy the higher level needs of the employees.
3. Opportunity for Development. Career development is very important for ambitious and
achievement oriented employees. If the employees are provided with opportunities for their
advancement and growth, they will be highly motivated and their commitment to the
organisation will increase.
4. Autonomous Work Groups. Autonomous work groups are also called self managed work
teams. In such groups the employees are given freedom of decision making. They are
themselves responsible for planning, organising and controlling the activities of their groups.
The groups are also responsible for their success or failures.
5. Employee’s Participation in Management. People in the organisation should be allowed to
participate in the management decisions affecting their lives. Quality circles, Management
by objectives, suggestion system and other forms of employee’s participation in management
help to improve the Quality of Work Life.
6. Job Security. Employees want stability of employment. Adequate job security provided to the
employees will improve the Quality of Work Life to a large extent.
7. Equitable Justice. The principle of equitable administrative justice should be applied in
disciplinary actions, grievance procedures, promotions, transfers, work assignments etc.
Partiality and biasness at any stage can discourage the workers and affect the Quality of
Work Life.
Close attention to QWL provides a more humanized work environment. It attempts to serve the
higher-order needs of workers as well as their more basic needs. It seeks to employ the higher skills
of workers and to provide an environment that encourages them to improve their skills. The idea is
that human resources should be developed and not simply used. Further, the work should not have
excessively negative conditions. It should not put workers under undue stress. It should not damage
or degrade their humanness. It should not be threatening or unduly dangerous. Finally, it should
contribute to, or at least leave unimpaired, worker’s abilities to perform in other life roles, such as
citizen, spouse, and parent. That is, work should contribute to general social advancement.
CAREER PLANNING
Meaning and Definitions of Careers
Career is viewed as a sequence of position occupied by a person during the course of his lifetime.
Career may also be viewed as amalgam of changes in value, attitude and motivation that occur, as a
person grows older. The implicit assumption is that an individual can make a different in his destiny
over time and can adjust in ways that would help him to enhance and optimize the potential for his
own career development. Career planning is important because it would help the individual to
explore, choose and strive to derive satisfaction with one’s career object.
Definitions
m A career path is the sequential pattern of jobs that form a career.
m A career is all the jobs that are held during one’s working life.
m Career goals are the future positions one strives a part of career.
m Career planning is the process by which one selects career goals and the path to these goals.
m A career is a sequence of positions occupied by a person during the course of a lifetime.
– Decenzo & Robbins
m Career is a sequence of separate but related work activities that provides continuity, order
and meaning in a person’s life. – Edwin Flippo
Benefits to the Organisation

Well-planned and executed career programmes will benefit both the organisation and the employees
in a number of ways. These include the following:
m Staffing inventories. Effective career management will help ensure a continuous supply of
professional, technical and managerial talent so that future organisational goals may be
achieved.
m Staffing from within. Because of the many potential advantages of promotion from within,
most organisations like to promote employees when positions become available. But
recruitment from within requires a strong career management programme to guarantee that
employees can perform effectively in their new jobs. Promoting employees before they are ready
to assume their new jobs will result in unsatisfactory performance, as predicted by the Peter
Principle. Peter Principle: Observation that in an hierarchy people tend to rise to “their level
of incompetence.” Thus, as people are promoted, they become progressively less-effective
because good performance in one job does not guaranty similar performance in another.
Named after the Canadian researcher Dr. Laurence J. Peter (1910-90) who popularized this
observation in his 1969 book ‘The Peter Principle.’
m Solving staffing problems. Certain staffing problems may be remedied through effective career
management. First, a high rate of employee turnover may be caused, at least in part, by a
feeling that little opportunity exists within the organisation. Second, recruiting new employees
may be easier if applicants realise that the company develops its employees and provides
career opportunities.
m Satisfying employee needs. The current generation of employees are very different from those
of generations past. Higher levels of education have raised career expectations. And many
workers hold their employers responsible for providing opportunities so that those
expectations may be realised.
m Enhanced motivation. Because progression along the career path is directly related to job
performance, an employee is likely to be motivated to perform at peak levels so that career
goals may be accomplished.
m Employment equity. Guidelines demand fair and equitable recruiting, selection and
placement policies and the elimination of discriminatory practices concerning promotions
and career mobility- Many affirmative action programmes contain formal provisions to enhance
the career mobility of women and other formerly excluded groups, including the development
of career paths and the design of formal T&D activities.
Meaning & Definitions of Career Planning

Career planning is an ongoing process through which an individual sets career goals and identifies
the means to achieve them. The process by which individuals plan their life’s work is referred to as
career planning.
“Career planning is a process of systematically matching career goals and individual capabilities
with opportunities for their fulfillment.” (Schermerhorn: 2002)
“Career Planning is a deliberate process of becoming aware of self, opportunities, constraints,
choices, and consequences; identifying career-related goals; and “career pathing” or programming
work, education, and related developmental experiences to provide the direction, timing, and
sequence of steps to attain a specific career goal.” (McMahon and Merman: 1987)
Career Anchors
Career anchors denote the basic drives that create the urge to take up a certain type of a career.
These drives are as follows:
m Managerial Competence. Person having this drive seeks managerial positions that
provide opportunities for higher responsibility, decision making, control and influence over
others.
m Technical Competence. People having this anchor seek to make career choices based on the
technical or functional content of the work. It provide continuous learning and updating one’s
expertise in a technical or specialised area such as quality control, engineering, accounting,
advertising, public relations etc.
m Security. If one’s career anchor is security than he is willing to do what is required to maintain
job security (through compliance with organisational prescriptions), a decent income and a
stable future.
m Creativity. This drive provides entrepreneurial and innovative opportunities to the people.
People are driven by an overwhelming desire to do something new that is totally of their
own making.
m Autonomy. These people seek a career that provides freedom of action and independence.
m Career planning facilitates the employees to develop not only their career goals but also the
ways to achieve these goals.
m It helps individuals to remain competitive in the labour market by constantly upgrading
competences as part of goal fulfillment efforts.
m It acts as the basis or standard for tracing the career progression achieved by an employee
throughout his work life.
m It forms the basis for succession planning in the organisation. It helps the organisation in its
preparation for the future by identifying and developing people for critical positions.
m Through career planning, an organisation can attract and retain its best people for a relatively
longer period of time.
m Career planning is viewed as an effective technique by the organisation to limit the labour
turnover and achieve better employee efficiency and commitment.
m It provides an opportunity for the organisation to assess the strengths and weaknesses and
also the area of development of the employees for the purpose of career planning and
development.
m It forms the basis for determining the training and development requirements of each employee
in the organisation.
The main purpose of career planning is to integrate individuals’ and organisational growth
needs.
m It helps to develop individuals and groups, provides opportunities and challenges and
strengthens work cultures.
m To increase managerial competence.
m To attract competent person and retain them in the organisation.
m To provide suitable promotional opportunities.
m To enable the employees to develop and make them ready to meet the future challenges.
m To increase the utilization of managerial reserves within an organisation.
m To correct employee placement.
m To reduce employee dissatisfaction and turnover.
m To improve motivation and morale.
Nature of Career Planning

The following are the salient features of career planning:
m A Process. Career planning is a process of developing human resources rather than an event.
m Upward movement. It involve upward movement in the organisational hierarchy, or special
assignments, project work which require abilities to handle recurring problems, human
relations issued and so on.
m Mutuality of Interest. The individual’s interest is served as his needs and aspirations are
met to a great extent and the organisation’s interest is served as each of its human resources is
provided an opportunity to develop and contribute to the organisational goals and objectives
to the optimum of its ability and confidence.
m Dynamic. Career planning is dynamic in nature due to an ever changing environment.
Functions of Career Planning

The following are the functions performed by career planning:
(i) It helps in determining the career paths for different types of employees.
(ii) Create positions of self-development for employees in an organisation.
(iii) Provide such career planning information system which works as a database of career path,
promotions and replacement.
(iv) To boost up morale of the employees and remove frustration from their minds.
(v) To develop such an internal environment in which employees can develop their talents and
give them a fair chance to go up and contribute the organisation.
(vi) To establish such career paths on which employee can promote himself.
(vii) To enable employees to discover, develop and use their full potential for the organisation.
Career Planning Process

The possibility of conflict between the individual and organisation objectives calls for career planning
efforts which can help to identify areas of conflict and initiate such actions as necessary to resolve
the conflict. Career planning, thus, involves matching of rewards and incentives offered by the career
path and career structure with hopes and aspirations of different categories of employees regarding
their own concept of progression. A general approach to career planning would involve the following
steps:
(i) Analysis of the characteristics of the rewards and incentives offered by the prevailing career
system needs to be done and made known to employees. Many individuals may not be aware
of their own career progression paths as such information may be confined to only a selected
group of managers.
(ii) Analysis of the characteristics of the hopes and aspirations of different categories of
employees including identification of their career anchors must be done through objective
assessment. Most organisations assume the career aspirations of individual employees which
need not be in tune with the reality. The individuals may not have a clear idea of their short
and long-term career and life goals, and may not be aware of their aspirations and career
anchors.
(iii) Mechanisms for identifying congruence between individual career aspirations and
organisational career systems must be developed so as to enable the organisation to discuss
cases of mismatch or incongruence. On the basis of above analyses, it will be necessary to
compare and identify specific areas of match and mismatch for different category of employees.
(iv) Alternative strategies for dealing with mismatch will have to be formulated.
Some of the strategies adopted by several organisations include the following:
(a) Changes in the career system by creating new career paths, new incentives, new rewards,
by providing challenges through job redesign opportunities for lateral movement and the like.
(b) Change in the employees’ hopes and aspirations by creating new needs, new goals, new
aspirations or by helping the employees to scale down goals and aspirations that are
unrealistic or unattainable for one reason or the other.
(c) Seek new basis of integration, compromise or other forms of mutual change on the part of
both employees and organisation through problem-solving, negotiations or other devices.
The Need for Carrier Planning

Organisations can hope to achieve high quality of work from their employees and foster positive
attitudes and loyalty among workers through career planning. Career planning ensures that goals
of individuals and organisations are in synergy and consequently tries to keep the motivation of
managers high. This implies that once the individual becomes aware of his capabilities and
opportunities within the organisation, he chooses to develop himself in a direction that improves
his chances of being able to handle new responsibilities.
Organisational Career Planning

Following activities should be included:
1. Human Resource Forecasting and Planning. This helps in identifying the number of people
to be hired. Second, the organisations will be able to coordinate their selection procedure with
the overall strategic goals.
2. Career information. This should he shared with employees and includes promotional policy
and career paths. Role directions and critical attributes could he made available to employees
for identifying possible career paths and competency requirements.
3. Career Counselling. Senior executives should have periodic discussions with their
subordinates and offer career counselling to them.
4. Career Patching. Organisations nowadays plan job sequences for their employees by which
transfers and promotions are done more systematically.
5. Skill Assessment Training. Three types of analysis should be performed—organisational
analysis, job analysis and job manpower requirement analysis. Organisational analysis and
job analysis are the first steps in the training process.
6. Succession Planning. Here organisations assure that competent candidates are available in
succession for critical positions. HR subsystems like promotions, terminations, transfers,
retirements, etc. also make succession planning necessary.
Limitations of Career Planning

Though career planning helps an organisation in numerous ways, it has a few limitations that
undermine the importance and relevance of career planning.
These are:
m Time Factor. Career planning is usually a long-term and time-consuming process. It is based
on the logic of suffering short-term pain to get long-term gains. However, organisations may
not be ready to spend a lot of time and resources on a process that would prove beneficial
only in the long term.
m Unsuitable for Large Workforce. It may not be possible for organisations with a large
workforce to develop individual career plans breach and every employee of the organisation.
This is because the career plan process requires an in-depth analysis of each employee’s
strengths and weaknesses on a sustained basis.
m Lack of Objectivity. Only those organisations which believe in strict observance of objectivity
in promotion and transfers can succeed in career planning. In contrast, favoritism and
nepotism in promotions often make career planning an unsuccessful exercise.
m External Interventions. Government rules and regulations can also affect the Grieve planning
options of an organisation.
m Lack of Knowledge and Awareness. Career planning by an employee is essentially a self-
management process. It requires the employees to be aware of the basics of career planning
and management activities. However, the employees at the lower levels of the organisational
hierarchy may not be familiar with the career planning process.
m Lack of Flexibility. Many organisations treat career planning as a ritualistic, rigid exercise.
They often fail to consider the uncertainties caused to the career planning activities by the
changes in the situation. In fact, the absence of dynamic career planning programmes may
limit the applicability of the career plans in uncertain and changing situations.
Different Phases in the Career of an Employee

Most working people go through career stages and it has been found that individual’s needs and
expectations change as the individual moves through these stages.
1. Exploration Stage. This is the stage where an individual builds expectations about his career.
Some of them are realistic and some are not. But the fact is that these could be a result of the
individual’s ambitions.
2. Establishment Stage. This could be at the stage where the individual gets his first job, gets
accepted by his peers, learns in this job, and also gains the first tangible evidence of success
or failure. The establishment/advancement stage tends to occur between ages 25 and 44. In
this stage, the individual has made his or her career choice and is concerned with achievement,
performance and advancement. This stage is marked by high employee productivity and career
growth, as the individual is motivated to succeed in the organisation and in his or her chosen
occupation. Opportunities for job challenge and use of special competencies are desired in
this stage. The employee strives for creativity and innovation through new job assignments.
Employees also need a certain degree of autonomy in this stage so that they can experience
feelings of individual achievement and personal success.
3. Mid-Career Stage. The individual’s performance levels either continue to improve, or levels,
or even deteriorates.
4. Late Career. This is regarded as a pleasant phase, where one is allowed to relax and play
the role of an elderly statesman in the organisation.
5. Decline. The stage, where the individual is heading towards retirement.
The Career Development Action are:
m Job performance. Employee must prove that their performance on the job is to the level of
standards established, if they want career development.
m Exposure. They should expose their skills, knowledge, qualifications, achievements,
performance etc. to those who take the decision about the career progress.
m Resignation. Employee may resign the present job, if they find career opportunities elsewhere
are better than those of the present organisation.
m Change the job. Employees who put organisational loyalty above career loyalty may change
the job in the same organisation if they find that career opportunities in other jobs in the
same organisation are better than those of present job.
m Career guidance. Counselling provides, information, advice and encouragement to switch
over to other career or organisation, where career opportunities are better.
m So, there are two types of mobility in career development actions – internal and external
mobility.
Effective organisational career development techniques include:
m Challenging initial job
m Dissemination of career option information
m Job postings
m Assessment centers
m Career development workshops
m Continuing education and training
m Periodic job change
m Sabbaticals
Individual career development is a three-step self-assessment process:
m Identification and organisation- Identify and organise your skills, interests, work-related needs,
and values.
m Conversion into general fields and a specific goal- Convert these inventories into general career
fields and specific job goals.
m Testing against realities – Test these possibilities against the realities of the organisation or
the job market.
Career Paths
Career paths have historically® focused on upward mobility within a particular occupation. One of
four types of career paths may be used: traditional, network, lateral, and dual.
A. Traditional Career Path. An employee progresses vertically upward in the organisation from
one specific job to the next.
B. Network Career Path. A method of career pathing that contains both a vertical sequence of
jobs and a series of horizontal opportunities.
C. Lateral Skill Path. traditionally, a career path was viewed as moving upward to higher levels
of management in the organisation. The availability of the previous two options has
diminished considerably in recent years. But this does not mean that an individual has to
remain in the same job for life. There are often lateral moves within the firm that can be taken
to allow an employee to become revitalized and find new challenges.
D. Dual-Career Path. A career-path method, that recognizes that technical specialists can and
should be allowed to continue to contribute their expertise to a company without having to
become managers.
QUALITY CIRCLE
Meaning
Quality Circle is a small group of 6 to 12 employees doing similar work who Voluntarily meet together
on a regular basis to identify improvements in their respective work areas using proven techniques
for analysing and solving work related problems coming in the way of achieving and sustaining
excellence leading to mutual upliftment of employees as well as the organisation. It is “a way of
capturing the creative and innovative power that lies within the work force”.
Concept
The concept of Quality Circle is primarily based upon recognition of the value of the worker as a
human being, as someone who willingly activates on his job, his wisdom, intelligence, experience,
attitude and feelings. It is based upon the human resource management considered as one of the
key factors in the improvement of product quality & productivity. Quality Circle concept has three
major attributes:
(a) Quality Circle is a problem solving technique.
(b) Quality Circle is a form of participation management.
(c) Quality Circle is a human resource development technique.
If workers are prepared to contribute their ideas, the management must be willing to create a
congenial environment to encourage them to do so.
Definitions
Quality circles enable the enrichment of the lives of the workers or students and create harmony
and high performance. Typical topics are improving occupational safety and health, improving
product design, and improvement in the workplace and manufacturing processes.
“A Quality Circle is volunteer group composed of members who meet to talk about workplace
and service improvements and make presentations to their management with their ideas.”
(Prasad, L.M., 1998)
Objectives of Quality Circle

The perception of Quality Circles today is ‘Appropriateness for use and the tactic implemented is to
avert imperfections in services rather than verification and elimination. Hence the attitudes of
employees influence the quality. It encourages employee participation as well as promotes teamwork.
Thus it motivates people to contribute towards organisational effectiveness through group processes.
The following could be grouped as broad intentions of a Quality Circle:
1. To contribute towards the improvement and development of the organisation or a department.
2. To overcome the barriers that may exist within the prevailing organisational structure so as
to foster an open exchange of ideas.
3. To develop a positive attitude and feel a sense of involvement in the decision making processes
of the services offered.
4. To respect humanity and to build a happy work place worthwhile to work.
5. To display human capabilities totally and in a long run to draw out the infinite possibilities.
6. To improve the quality of products and services.
7. To improve competence, which is one of the goals of all organisations.
8. To reduce cost and redundant efforts in the long-run.
Act Plan
* Take appropriate * Determine customers
action and needs
* Standardize and * Determine process
plan to improve * Determine training needs
* Determine metrics
* Determine implementation plan
Do
Check or Test
Implement your plan
Check the effects of
implementation
(Quality circle)
9. With improved efficiency, the lead time on convene of information and its subassemblies is
reduced, resulting in an improvement in meeting customers due dates.
10. Customer satisfaction is the fundamental goal of any library. It will ultimately be achieved
by Quality Circle and will also help to be competitive for a long time.
Benefits of Quality Circle

There are no monetary rewards in the QC’s. However, there are many other gains, which largely
benefit the individual and consecutively, benefit the business. These are:
m Self-development. QC’s assist self-development of members by improving self-confidence,
attitudinal change, and a sense of accomplishment.
m Social development. QC is a consultative and participative programme where every member
cooperates with others. This interaction assists in developing harmony.
m Opportunity to attain knowledge. QC members have a chance for attaining new knowledge
by sharing opinions, thoughts, and experience.
m Potential Leader. Every member gets a chance to build up his leadership potential, in view
of the fact that any member can become a leader.
m Enhanced communication skills. The mutual problem solving and presentation before the
management assists the members to develop their communication skills.
m Job-satisfaction. QC’s promote creativity by tapping the undeveloped intellectual skills of
the individual. Individuals in addition execute activities diverse from regular work, which
enhances their self-confidence and gives them huge job satisfaction.
m Healthy work environment. QC’s creates a tension-free atmosphere, which each individual
likes, understands, and co-operates with others.
m Organisational benefits. The individual benefits create a synergistic effect, leading to cost
effectiveness, reduction in waste, better quality, and higher productivity. All these benefits
are lasting in nature, which bring about progress over a period of time.
Problem Solving Tools Used by Quality Circle

Brainstorming
Brainstorming is a group creativity technique by which a group tries to find a solution for a specific
problem by gathering a list of ideas spontaneously contributed by its members. The term was
popularized by Alex Faickney Osborn in 1953 through the book Applied Imagination. In the book,
Osborn not only proposed the brainstorming method but also established effective rules for hosting
brainstorming sessions.
Brainstorming can be defined as the methodology used to encourage every individual in the
Circle to express freely their opinions or give ideas in an open discussion. Brainstorming can be
used to list down all the problem faced by an organisation, their causes and the potential effects if a
certain suggestion is implemented. Brainstorming works by focusing on a problem, and then
deliberately coming up with as many solutions as possible and by pushing the ideas as far as
possible. One of the reasons it is so effective is that the barnstormers not only come up with new
ideas in a session, but also spark off from associations with other people’s ideas by developing and
refining them. Brainstorming can be an effective way to generate lots of ideas on a specific issue and
then determine which idea – or ideas – is the best solution. Brainstorming is most effective with
groups of 8-12 people and should be performed in a relaxed environment. If participants feel free to
relax and joke around, they’ll stretch their minds further and therefore produce more creative ideas.
A brainstorming session requires a facilitator, a brainstorming space and something on which
to write ideas, such as a white-board a flip chart or software tool. The facilitator’s responsibilities
include guiding the session, encouraging participation and writing ideas down. Brainstorming works
best with a varied group of people. Participants should come from various departments across the
organisation and have different backgrounds. Even in specialist areas, outsiders can bring fresh
ideas that can inspire the experts. There are numerous approaches to brainstorming, but the
traditional approach is generally the most effective because it is the most energetic and openly
collaborative, allowing participants to build on each others’ ideas.
Pareto Analysis
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Problems
The Pareto Chart or Pareto Diagram, named after the famous economist Vilfredo Pareto (1848-1923),
is a common tool for quality control and is used as part of a Pareto Analysis to visually identify the
most important factors, most occurring defects, or the most common problems, or in other words “the
vital few”. Pareto Analysis is a statistical technique in decision making that is used for the selection of
a limited number of tasks that produce significant overall effect. It uses the Pareto Principle (also know
as the 80/20 rule) the idea that by doing 20% of the work you can generate 80% of the benefit of doing
the whole job. Or in terms of quality improvement, a large majority of problems (80%) are produced by
a few key causes (20%). This is also known as the vital few and the trivial many. The 80/20 Rule may
be applied to almost anything, from the science of management to the physical world.
The Pareto Principle, or 80-20 Rule, is a general rule-of-thumb or guideline that says that 80% of
the effects stem from 20% of the causes. Vilfredo Pareto originally observed that in Italy, 80% of the
land was owned by 20% of the people. Dr. Joseph M. Juran, a 20th century evangelist for quality
management, applied this principal to quality control and preferred the use of the phrase “the vital
few and the useful many” to describe the 80-20 rule. Although the actual numbers may be different
from case-to-case, the Pareto Principle is a guiding principle used in business for ...
m Customer Complaints (e.g. 80% of the complaints come from 20% of the customers)
m Management (e.g. 80% of the results come from 20% of the group)
m Sales (e.g. 80% of the profits come from 20% of the products)
m Quality Management for identifying the most important causes for defects (e.g. 80% of the
problems come from 20% of the causes)
A pareto chart can help you quickly identify the most significant factors, but choosing which
problems to fix may still require a cost-benefit analysis. If you have a single factor causing 50% of the
problems, but it would cost you a million dollars to fix, and there are 3 other factors causing a total of
30% of the problems that would be much less expensive to fix, perhaps solving the 3 other factors first
would be more beneficial.
Causes and Effects Diagram

Ishikawa diagrams (also called fishbone diagrams, or herringbone diagrams, cause-and-effect diagrams
or Fishikawa) are causal diagrams that show the causes of a certain event — created by Kaoru Ishikawa
(1990). A common use of the Ishikawa diagram is in product design, to identify potential factors
causing an overall effect and to help identify the root cause of non-conformances. Ishikawa diagrams
were proposed by Kaoru ishikawa in the 1960s, who pioneered quality management processes in the
Kawasaki shipyards, and in the process became one of the founding fathers of modern management.
It was first used in the 1960s, and is considered one of the seven basic tools of quality management,
along with the histogram, Pareto chart, check sheet, control chart, flowchart, and scatter diagram. See
Quality Management Glossary. It is known as a fishbone diagram because of its shape, similar to the
side view of a fish skeleton.
Ishikawa diagram
Cause Effect
Equipment Process People
Problem
Secondary
cause
Primary
cause
Materials Environment Management

Measurements Materials Personnel
Calibration Alloys Shifts
Microscopes Lubricants Training
Inspectors Suppliers Operators

Defect XXX
Angle
Humidity Engager Blade wear
Temperature Brake Speed
Environment Methods Machines
Causes
Causes in the diagram are often based on a certain set of causes, such as the 6 M’s, described below.
Cause-and-effect diagrams can reveal key relationships among various variables, and the possible
causes provide additional insight into process behaviour.
Causes in a typical diagram are normally grouped into categories, the main ones of which are:
m The 6 Ms - Men/people, machines, methods, materials, measures, mother nature
m 4 Ps - Places, Procedures, People, Politics
m 4 Ss - Surroundings, Suppliers, Systems, and Skills Causes should be derived from brainstorming
sessions. Then causes should be sorted through affinity-grouping to collect similar ideas
together. These groups should then be labelled as categories of the fishbone. They will typically
be one of the traditional categories mentioned above but may be something unique to our
application of this tool. Causes should be specific, measurable, and controllable.)
Orgnisational Structure of a QC
The structure of a Quality Circle consists of the following elements:
1. A steering committee. This is at the top of the structure. It is headed by a senior executive and
includes representatives from the top management personnel and human resources
development people. It establishes policy, plans and directs the program and meets usually
once in a month.
2. Co-ordinator. He may be a Personnel or Administrative officer who co-ordinates and supervises
the work of the facilitators and administers the programme.
3. Facilitator. He may be a senior supervisory officer. He co-ordinates the works of several quality
circles through the Circle leaders.
4. Circle leaders. Leaders may be from lowest level workers or Supervisors. A Circle leader
organises and conducts Circle activities.
5. Circle members. They may be staff workers. Without circle members the programme cannot
exist. They are the lifeblood of quality circles. They should attend all meetings as far as possible,
offer suggestions and ideas, participate actively in group process, take training seriously with
a receptive attitude. The roles of Steering Committee, Co-ordinator Facilitator, Circle leader and
Circle members are well defined.
Process of Operation
The operation of quality circles involves a set of sequential steps as under:
1. Problem identification. Identify a number of problems.
2. Problem selections. Decide the priority and select the problem to be taken up first.
3. Problem Analysis. Problem is clarified and analysed by basic problem solving methods.
4. Generate alternative solutions. Identify and evaluate causes and generate number of possible
alternative solutions.
5. Select the most appropriate solution. Discuss and evaluate the alternative solutions by
comparison in terms of investment and return from the investment. This enables to select the
appropriate solution.
6. Prepare plan of action. Prepare plan of action for converting the solution into reality which
includes the considerations “who, what, when, where, why and how” of solving problems.
7. Present solution to management circle members present solution to management fore approval.
8. Implementation of solution. The management evaluates the recommended solution. Then it is
tested and if successful, implemented on a full scale.
TRAINING PROGRAMME FOR WORKERS

Kaizen
Kaizen process aims at continuous improvement of processes not only in manufacturing sector but
all other departments as well. Implementing Kaizen tools is not the responsibility of a single individual
but involves every member who is directly associated with the organisation. Every individual,
irrespective of his/her designation or level in the hierarchy needs to contribute by incorporating small
improvements and changes in the system.
Following are the main elements of Six Sigma:
m Teamwork
m Personal Discipline
m Improved Morale
m Quality Circles
m Suggestions for Improvement
Five S of Kaizen “Five S” of Kaizen is a systematic approach which leads to foolproof systems,
standard policies, rules and regulations to give rise to a healthy work culture at the organisation. You
would hardly find an individual representing a Japanese company unhappy or dissatisfied. Japanese
employees never speak ill about their organisation. Yes, the process of Kaizen plays an important role
in employee satisfaction and customer satisfaction through small continuous changes and eliminating
defects. Kaizen tools give rise to a well organised workplace which results in better productivity and
yield better results. It also leads to employees who strongly feel attached towards the organisation.
Let us understand the five S in Detail:
1. SEIRI. SEIRI stands for Sort Out. According to Seiri, employees should sort out and organise
things well. Label the items as “Necessary”, “Critical”, “Most Important”, “Not needed now”,
“Useless and so on. Throw what all is useless. Keep aside what all is not needed at the moment.
Items which are critical and most important should be kept at a safe place.
2. SEITION. Seition means to organise. Research says that employees waste half of their precious
time searching for items and important documents. Every item should have its own space and
must be kept at its place only.
3. SEISO. The word “SEISO” means shine the workplace. The workplace ought to be kept clean.
De-clutter your workstation. Necessary documents should be kept in proper folders and files.
Use cabinets and drawers to store your items.
4. SEIKETSU. SEIKETSU refers to Standardization. Every organisation needs to have certain
standard rules and set policies to ensure superior quality.
5. SHITSUKE or Self Discipline. Employees need to respect organisation’s policies and adhere
to rules and regulations. Self discipline is essential. Do not attend office in casuals. Follow
work procedures and do not forget to carry your identity cards to work. It gives you a sense of
pride and respect for the organisation.
Training Programme of Workers

1. Responsibility of training. To be effective training programme must be properly organised. The
responsibility of the training programme may be shared among the following: The top
management, the personnel department, the line supervisor and the employees.
2. Selection and motivation of the trainees. Proper selection of trainees is of great importance to
obtain permanent and gainful result. It is necessary to decide who is to be trained new or old
employees, unskilled and semiskilled workers, supervisor and executives.
3. Preparation of the trainer. The success of the training programme depends upon the trainer or
the instructor trainer must be well qualified and may be obtained from within and outside of
the organisation. It should be decide before hand what is taught and how.
4. Training material. Training material may include study notes, case, studies, pamphlets, charts,
brochures, manuals, movie and slides. The material may be prepared in the training section
with the help of the supervisor.
5. Training period. The length of the training period depends upon the skill of the trainees,
purpose of the training, training learning capacity, and the training media used.
6. Performance tryout. The trainee is asked to do the jobs several time slowly. His mistake are
corrected and if necessary the complicated step are explained again.
7. Follow up. In this step, the effectiveness of the training programme is assessed. The feedback is
generated through the follow up will have to reveal weakness or errors, if any.
EXECUTIVE DEVELOPMENT
Meaning
Executive development or management development is a systematic process of learning and growth
by which managerial personnel gain and apply knowledge, skills, attitudes and insights to manage
the work in their organisation effectively and efficiently.
According to Flipo “executive development includes the process by which managers and executives
acquire not only skills and competency in their present job but also capabilities for future managerial
tasks of increasing difficulty and scope.”
Methods of Executive Development

A great variety of management development techniques are used by different organisations to develop
their executive manpower. The selection of techniques rests on philosophy of development. There are
two principal methods of executive development which are generally used by the firms. One is on-the-
job development and the other is off-the job development. We shall discuss here under the various one
the-job and off-the-job executive development technology. There are two various methods:
1. On-the-Job Methods
On-the-job Method of executive development is the most popular method of developing the executive
talent. The main techniques are–
(a) Coaching. Under this technique, the superior coaches the job knowledge and skill, to his
subordinates. He briefs the trainees what is expected of them and guides how to get it. He also
watches their performance and directs them to correct the mistakes. The main objective of this
training is to provide them diversified knowledge. Coaching is recognised as one of the
managerial responsibilities, and the manager as an obligation to train and develop the
subordinates working under him. He delegates his authority to the subordinates to prepare
them to handle the complex situations.
(b) Understudy. This system is quite different from the system discussed above. Under this system,
a person is specifically designated as the apparent who is called the understudy. The
understudy’s future depends on what happens to his superior leaves his post due to promotion,
retirement or transfer. The department manager picks up one individual from the department
to become his understudy. He guides him to learn his job and tackle the problems tat confront
the manager.
(c) Job Rotation. Under this system, an individual is transferred one job to another or from open
department all to another in the co-ordinated and planned manager with a view to broaden the
general background of the trainee in the business. The trainees are rotated from one job to
another and thus they acquires a considerable degree of specialised knowledge and skill but a
man can never acquire the diversified skill needed for promotion unless is deliberately put in
different types of situations.
(d) Special Project. A special assignment is a highly useful training device, under which a trainee
is assigned a project that is closely related to his job. He well study the problem and submit the
written recommendations upon it. It will not only provide the trainee a valuable experience in
tackling the problem but would also have the other values of educating the trainees about t
importance of the problem and to understand the organisational relationship of the problem
with different angles. Thus the trainee acquires knowledge of the assigned task and learns to
work with others having different viewpoints.
(e) Committee Assignments. This system is similar to special project. Under this system an adhoc
committee is constituted and is assigned a subject related to the business to discuss and make
recommendations. The committee will study the problem, discuss it and submit to be report
containing the various suggestions and recommendations to the departmental manager. With
a view to avoid the unnecessary hardships in studying the problem, the members of the committee
should be selected from different departments, having specialised knowledge in different fields
but connecting to the problem.
2. Off-The-Job-Methods
The main techniques under this method are :
(a) Special Courses. The method of special courses requires the trainee to leave the work place and
to devote the entire time to developmental objectives. The prime object of such special courses is
to provide an opportunity to the trainee to acquire knowledge with full devotion. Development
is primary and work is secondary. These courses may be conducted in a number of ways-
Firstly, the organisation establishes such courses to be taught to the trains by the members of
the firm or by the regular instructor appointed by the firm or by the regular instructor appointed
by the firm or by the specialists (professors and lecturers_ from other outside institutions. The
second approach to this technique is to send the personnel programmes established by the
colleges or universities. The organisation sponsors some of its members to the courses and
bears the expenses. The third approach to the technique is to work with a college or other
institutions in establishing a course or a series of courses to be taught by faculty members. A big
organisation may starts its own training school.
(b) Role Playing. Under this method, two or more trainees are assigned different roles to play by
creating an artificial conflict situation. No dialogued is given before hand. The role players are
provided with the written or oral description of the situation and the role to play. Sufficient
time is given to the role players to plan their actions and they must act their parts before the
class. For instance role playing situation may be a supervisor discussing grievances with his
subordinate.
(c) Case Study. Case study technique is extensively used in teaching law, business management,
human relation, etc., to let the trainee understand that there must be different solutions to a
particular problem. Under this method, the trainees are given a realistic problem to discuss,
which is more or less related to the principles already taught. This method provides an
opportunity to the trainee to apply his skill to the solution of realistic problems. Cases may be
used in either of the two ways: (i) They can be used after exposing the formal theory under
which the trainee applies their skill to specific situation, or (ii) They may be assigned to the
trainees for written analysis or oral discussion without any prior discussion of the theory.
(d) Conference. A conference is a group meeting conducted according to an organised plan in
which members participate in oral discussion of a particular problem and thus develop their
knowledge and understanding. It is an effective training device for conferences members and
conference leaders. Both learns a lot from others view point and compare his opinions with
others. The conference leaders may also learn how to develop his skill to motivate people
through his direction of discussion. Conferences may be of three types:- (i) The directed or
guided conference, (ii) Consultative conference, and (ii) Problem solving conference. However
guided conference is generally used for training purposes.
(e) Multiple Management. Under this system, a permanent advisory board or committee of
executives study the problems of organisation and make recommendations to the higher
management for final decision. There is another device, constituting a junior board of directors
in a company for training the executives. The board is given power to discuss any problem
which the senior board of directors (constituted by shareholders) could discuss. The utility of
junior board is only to train the junior executives. Thus junior board discuss wide variety of
subjects which a senior board can discuss or in other way, it is an advisory body.
(f) Managements Games. It is a classroom exercise, in which teams of students compete against
each other to achieve common objective. The game is designed to be a close representation of
real life conditions. The trainees are asked to make decisions about production, cost, research
and development, etc., for an organisation. Since they are often divided into teams as competing
companies, experience is obtained in team work. Under this method, the trainees learn by
analyzing problems by using some intention and by making trial and error type of decisions.
Any wrong is corrected by the trainer or sometimes a second chance is given to something all
other again.
(g) Syndicate Method. Under this method, 5 or 6 groups consisting of about 10 members are
formed. Each group (Syndicate) is composed of carefully selected men who, on the one and,
represents fair cross section of the executive life of the country, i.e. men from public sector and
private sector undertakings, civil and defense services, banking, insurance, etc., and on the
other hand, a good well balance team of management from different fields, i.e., production,
marketing, personnel, finance, etc. The groups are given assignments, made up before hand to
be submitted within a specified date and time. Each man in the group is appointed leader of the
group for the performance of the given task by rotation and so for the secretary for the subdivision
of the course. Each task is assigned in the form of a ‘Brief’, a document prepared by the experts
on the faculty with meticulous care. It also fixes the time by which the study is to be completed.
Lecturers by experts are also arranged to supplement the study. The report prepared an
submitted by a group is circulated among the members of the other groups for comparative
study and critical evaluation. The leader or chairman of the group is required to present the
views of his group in the joint session and justify his group’s view in case of criticism or
questions.
(h) Sensitivity Training or T-Group. In sensitivity training, the executives spends about two work-
hours attending the lectures on the subject such as leadership and communication. The members,
under this method, sit around a table and discuss. The trainer, usually a psychologist, neither
leads the discussion nor suggests what should be discussed but only guides the discussion.
The members freely discuss and criticize the behaviour of each other thereby giving a feedback
positive or negative.
(i) Programmed Instruction. Programmed instruction as gained a lot of importance both in training
and in industry in modern times it includes teaching machines, auto instruction, automatic
instruction and programmed learning. It is an application of science of learning to the task of
training and education. The core feature of programmed instruction is the participation by the
trainee and immediate feed back by him. Programmed instruction machines include films,
tapes, programmed books, illustrations, printed material, diagrams, etc. it performs two
functions:- (i) provides information to the learner, and (ii) provides feed back whether the
response is correct or wrong.
(j) Selective Readings. Many executives find it very difficult to do much reading other than that
absolutely required in the performance of their jobs. Some organisations provide some time
for reading which will advance the general knowledge and background of the individuals.
Many organisations purchase some high level journals like the Commerce, the Capitalist, the
Management in Govt., etc. and dailies like the Economic Times, the Financial Express, etc.
Objectives of Executive Development

The programme of executive development aims at achieving following purposes:
m To inculcate knowledge of human motivation and human relationships.
m To increase proficiency in management techniques such as work study, inventory control,
operations research and quality control.
m To sustain good performance of managers throughout their careers by exploiting their full
potential.
m To acquire knowledge about problems of human resources.
m To think through problems which may confront the organisation now or in the future.
m To understand economic, technical, and institutional forces in order to solve business
problems.
m To develop responsible leaders.
The Process of the Executive Development
1. Ascertaining Development Needs. The organisation at the time of planning, should know;
what types of managers are required to meet his present requirements and its future needs,
taking into consideration the anticipated changes in production methods and techniques, in
the industrial development of the country and in the size of the organisation. It should also
be decided how many vacancies are to be filled in by the process of promotion. The
management must provide the opportunities for the development of the talent and capabilities
of its present employer to meet the challenges of the higher jobs.
2. Appraisal of the Present Management Talent. After ascertaining the needs of the
development, the management should appraise the talent of its present staff by comparing
the actual performance with the standard performance. How to develop a person, can be
judged only by evaluating his performance on various occasions in performing his managerial
duties.
3. Inventory of management Manpower. An inventory of qualified personnel should be
prepared and a selection for the various development programmes should be made. Such
inventory will provide all necessary personnel data regarding the individuals qualified for
development.
4. Individual Development Programme. The chief executive must know the limitations of the
individual and chalk out the various development plans according to their mental and
physical characteristics.
5. Establishment of Training and development Programme. As far as possible, a systematic
procedure should be introduced for the development of executives. Crash programme may be
used for the purpose which includes development programmes in the fields of human relations
creativity, training, leadership capacity etc.
6. Evaluating Development Programme. After completing the development programme, its
evaluation should be made, to see whether the objectives of the programme have been achieved
or not and any deficiency should be improved further.
Evaluating Training Programme

The main objective of evaluating the training programme is:
m To determine if they are accomplishing specific training objectives, that is correcting
performance deficiencies.
m To ensure that any changes in trainee’s capability is due to training programme and not due to
any other condition.
m To determine their cost effectiveness.
m Finally, credibility of training is greatly enhanced when it is proved that the organisation has
benefitted tangibly from it.
Criteria for Evaluation

Criteria used for evaluating training effectiveness:
1. Reaction criteria–reaction measures reveal trainees’ opinions regarding the training programme.
2. Learning criteria – learning measures assess the degree to which trainees have mastered the
concepts, knowledge and skills of training.
3 . Behavior change criteria – behavior indicates the performance of learners. Changes in job
behavior.
4 . Organisational results – examine the impact of training on the work group or the entire company.
Process of training evaluation Steps:
m Setting intended standards
m Measuring actual outcomes
m Finding deviation
m Corrective action
Methods for Evaluating Training Programme

1. Observation method. Observation method is done by closely observed during the training
programme. Performance in practical work situation, participation in discussion, role play,
timing, presentation method. The errors are carefully observed and recorded.
2. Test-retest method. In this method participants are given a test to establish their level of
knowledge before they enter the training programme. After the completion of training, they
retake the test. The change in test scores indicate the change in the level of knowledge resulting
from training.
3. Pre-post performance method. The actual job of each participants is evaluated and rated prior
to training. After the training the participant’s job performance is reevaluated. Changes in job
performance is attributed to training.
4. Experimental control group method. Two groups are formed. One group is control group
whose members work without undergoing training. Another group is experimental group
whose member undergo training. Two groups are evaluated at the end of the training. If the
performance of the experimental group improves, training is regarded effective.
5. Training surveys. Direct questioning to trainees to get reaction, generally after the end of training
participants are asked to fill-up form containing- physical facilities, achievement of training
objectives, contents, trainer effectiveness, suggestions for improvement etc.
6. Cost effectiveness analysis. It assess total value of training benefits against total cost of
training. Training is effective if benefit exceeds costs.
CIRO Approach to Evaluate Training

The CIRO approach to evaluate training impact is and another 4 level approach which is originally
developed by Warr, Bird and Racham. It is unique way to classify evaluation process.
This approach consists of five level of evaluation, first letter of each evaluation forms the word
CIRO.
1. Context evaluation
2. Input evaluation
3. Reaction evaluation
4. Outcome evaluation
5. Organisational level
1. Context evaluation of the learning event. Context evaluation involves collecting information
about performance deficiency, assessing that information to establish training needs and on
the basis of those findings, setting of objectives at three levels.
Context of the learning event concerns with obtaining and using information about the current
operational situation in order to determine training needs and objectives. This evaluation
determines if training is needed. During this process three types of objectives may be evaluated.
m Ultimate objectives. The particular deficiency in organisation that program will eliminate.
m Intermediate objective. Changes in employees work behaviour necessary for attainment of
ultimate objectives.
m Immediate objectives. New knowledge, skills or attitudes that employees must acquire to
change their behaviour and to reach intermediate objectives.
2. Input evaluations to the learning event. It concerns with how well the learning event was
planned, managed, designed and delivered. It involves determining how cost efficient, cost
effective and feasible and well chosen major inputs are. It involves analyzing the resources
available and determining how they can be deployed in order to achieve maximum possibility
of desired objectives.
3. Reaction evaluations to the learning event. Reaction evaluation concerns with obtaining and
using information about participants reactions to improve the HRD process. The distinguishing
feature of this type of evaluation is that it rely on subjective inputs of participants. It can be
helpful when collected and used in systematic and objective manner.
4. Outcome evaluation of the learning even. This involves assessing what actually happened as
a result of learning event. Outcome should be measured at any or all of the following levels,
depending on the object of the evaluation exercise and resources available for the task.
I. The learner level. This involves establishing changes in learners knowledge, skills and
attitudes at the completion of the training. These changes can be determined and compared
with levels of knowledge, skills and attitudes identified at the beginning of program.
II. The workplace level. This involves changes that take place at the workplace level in the
learners job behaviour. This can be measured by appraisal, observation, discussion with
the manager of learner/peers/customers/clients.
III. The team/department or unit level. This involves identifying changes that take place in
team, department or unit as a result of learning event. It is very difficult to evaluate changes
at departmental level. Changes at departmental level may include alteration in departmental
output, costs, scrap rates, absenteeism, and staff turnover or accident frequency. Unit level
changes may include enhanced productivity rates, reduced labour costs, and reduced
absenteeism and staff turnover rates.
5. Organisational level. This involves identifying changes that take place in the organisation as
whole after the completion of training program. This outcome is also very difficult to evaluate.
The changes which may occur after the introduction of training program may include change
in culture of organisation, more flexibility, and reduced level of conflict, enhanced ability to
attract and retain valued workers.
Kirkpatrick’s Model of Training Evaluation

1. Reaction. Reaction is defined as what participant's views are regarding program, including
materials, instructors, facilities, methodology and content etc. A participant's reaction is
sometimes a critical factor in redesigning or continuing training program. Responses on reaction
questionnaires help in assuring against decisions based on comments of few very satisfied or
dissatisfied participants.
2. Learning. Learning evaluations is concerned with measuring extent to which principles, facts,
techniques and skills have been acquired. There are many techniques through which extent of
learning can be measured like paper and pencil test, skill practices and job simulations.
This level of evaluation answers following questions:

m What knowledge was acquired?
m What skills were developed or enhanced?
m What attitudes were changed?
3. Behaviour. Behavioral changes is measured to determine the extent to which skills and
knowledge learned in program have translated into improved behavior on the job. Evaluation
in this category may include before and after comparisons of observations from the participants
superiors, subordinates, peers and self assessment.
4. Result. Evaluation of results involves monitoring organisational improvement such as cost
saving work output changes and quality changes. In this level of evaluation the key questions
are:
m What happens to organisation as a result of training efforts?
m What is return on investment on training?
m How training helped in resolving the problems identified as a result of performance gap
analysis?
m How has training helped organisation accomplish its mission?

1. ___________ involves upgrading the skill, 7. Instrument or sub-system of HRD is con-
extending the knowledge and competencies cerned with
of human resource. (A) Counselling and mentoring
(A) HRM (B) Potential appraisal
(B) Human resource development (C) Performance appraisal
(D) All of these 8. Which of the following is not sub-system or
2. Name of the first company to design and mechanism of HRD?
implement HRD System (A) Training
(A) Larson & Toubro (B) Team work
(B) Asian paints (C) Building morale and motivation
(C) Ashok Leyland (D) None of these
(D) All of these 9. Fish bone analysis is used in which of the
3. The main aim of_____ is all over develop- following
ment. (A) Collective bargaining
(A) HRM (B) Quality circle
(B) Human resource development (C) Quality of work life
(D) All of these 10. _______is an integrated and interdiscipli-
4. Which of the following is the features of nary approach to the development of human
HRD? resources in the organisation.
(A) Continuous process (A) HRM
(B) Planned and systematic approach (B) HRD
(C) Interdisciplinary approach (C) Both A & B
5. Which are the objectives of HRD? 11. ____________(also known as the 80/20
(A) To provide all over development of rule) the idea that by doing 20% of the work
people in organisation you can generate 80% of the benefit of doing
(B) To develop constructive mind and over- the whole job.
all personality (A) Behaviourally anchored
(C) To develop and maintain high level mo- (B) Pareto Principle
tivation (C) Performance analysis
6. The HRD subsystem with development 12. Which year Dr. T.V. Rao conducted survey
dimension has been evolved by of HRD practices in India?
(A) Dharani P. Sinha (A) 1982
(B) D.M. Pestonjee (B) 1984
(C) T.V. Rao (C) 1985
(D) Udai Pareek (D) All of these
13. HRD strategies includes 20. _______focus on eliminating waste by pur-

(A) TQM chasing or manufacturing just enough for
(B) Kaizen right items just in time.
(C) JIT (A) TQM
(D) All of these (B) Kaizen
14. The doctrine of QC got popularity in which (C) Just-in-Time
of the following countries (D) All of these
(A) USA 21. _______believes in giving more power to the
(B) India lower level to improve productivity and per-
(C) Japan formance.
(D) UK (A) Empowerment
(B) Learning organisation
15. _________aims at continuous improvement
(C) Benchmarking
in the quality of product, which calls for the
(D) All of these
improvement in the quality of works of em-
ployee through training and development. 22. ________is the practices of identifying,
(A) Total Quality Management. studying and building upon best practices
in the industry or in the world.
(B) Kaizen
(A) Empowerment
(C) JIT
(D) All of these
(C) Benchmarking
16. _____means continuous improvement with (D) All of these
the involvement of everybody in the organi-
23. _________have competencies to learns, cre-
zation so as to generate value of customer.
ate codify and use knowledge fastest than
(A) TQM
their rivals.
(B) Kaizen
(A) Empowerment
(C) JIT (B) Learning organisation
(D) All of these (C) Benchmarking
17. A Kaizen program segment is (D) All of these
(A) Management oriented 24. HRD matrix identifies the relationship be-
(B) Individual oriented tween
(C) Group oriented (A) HRD instrument
(D) All of these (B) HRD process
18. Which is the step in Kaizen programme? (C) HRD outcomes & organisation effective-
(A) SEIRI ness
(B) SEITON (D) All of these
(C) SEISO 25. HRD climate variables includes
(D) All of these (A) Role clarity
19. SEIKETSU, SHITSUKE step is related to (B) Proactive orientation
which programme? (C) Openness
(A) Kaizen (D) All of these
(B) QC 26. HRD matrix was conceptualised by
(C) Both A & B (A) Leonard Nadler
(D) None of these (B) Richard P. Calhoon
(C) T.V. Rao 34. The term re-engineering was coined by
(D) Dale Yoder (A) Dr. W. Edward
27. HRD outcomes variables are (B) Joseph M. Juran
(A) More competent people (C) Dr. Genichi Tuguchi
(B) Better development roles (D) Hammer and Champy
(C) Higher work commitment 35. ________is the process of measuring quali-
(D) All of these tatively and quantitatively the employees
28. Hot-Stove rule was given by past and present performance against the
(A) Douglas McGregor background of his expected role perfor-
(B) Joseph M Juran mance, the background of his work environ-
ment and about his future potential in
(C) Dr Genichi Tuguchi
organisation.
(D) All of these
(A) Performance appraisal
29. HRD organisation effectiveness dimension (B) HRD
are
(C) Benchmarking
(A) Higher productivity
(D) All of these
(B) Growth and diversification
36. A systematic and objective way of evaluat-
(C) Cost reduction
ing both work related behaviour and poten-
(D) All of these
tial of employees
30. Need of training includes (A) Performance appraisal
(A) Easy adaptability (B) HRD
(B) Employee development (C) Benchmarking
(C) Reduced turnover and absenteeism (D) All of these
(D) All of these
37. Which of the following is the features of per-
31. Limitation of Performance appraisal in- formance appraisal?
cludes (A) Continuous process
(A) Faulty assumption (B) Systematic approach
(B) Leniency and strictness (C) Formal /informal
(C) Similarity Errors (D) All of these
(D) All of these
38. Which of the following is not the objectives
32. OCTAPACE culture ‘O” stands for of performance appraisal?
(A) Offer (A) Work related objectives
(B) Openness (B) Careers development objectives
(C) Office (C) Communication
(D) None of these (D) None of these
33. ______is a fundamental rethinking & radi- 39. Performance appraisal objectives includes
cal redesign of business processes to achieve (A) Organisation objectives
dramatic improvement in cost quality, sci- (B) Feedback
ence and speed.
(C) Both A& B
(A) Empowerment
(D) All of these
40. ___________ is a group creativity technique
(C) Re-engineering
by which a group tries to find a solution for
(D) All of these
a specific problem by gathering a list of ideas
spontaneously contributed by its members.
(A) Behaviourally anchored. 46. In performance appraisal, when the raters

(B) Brainstorming assessment is influence by previously held
(C) Performance analysis beliefs, this problem is
(D) All of these (A) Spillover effect
41. Careers development related objectives of (B) Perceptual set
performance appraisal includes are (C) Both (A) & (B)
(A) To assess the weak point of the employ- (D) None of these
ees and finding remedies through train- 47. When performance appraisal includes
ing favouritism, stereotyping & hostility, this is
(B) To plan careers goal (A) Halo effect
(C) To plan transfer, promotions and lay- (B) Rater effect
off (C) Both (A) & (B)
(D) All of these (D) None of these
42. Who is associated with the factor compari- 48. When one aspect of an individual’s perfor-
son method? mance influence evaluation of his entire per-
(A) Robert & David formance, this is
(B) Flanagan & Burns (A) Halo effect
(C) E.J. Benge (B) Rater effect
(D) None of these (C) Both (A) & (B)
43. Organisational objectives performance ap- (D) None of these
praisal includes are 49. When individual’s performance is com-
(A) To serve as a basis of promotion and de- pletely appraised on the basis of a negative
motion quality or feature perceived. This results in
(B) To serve as a basis for salary and wages an overall lower rating than may be war-
administration ranted. “He is not formally dressed up in
the office. He may be casual at work too!”
(C) To serve as a basis for termination or
transfer (A) Horn effect
(B) Rater effect
(D) All of these
(C) Both A & B
44. Who will appraise the employee while per-
(D) None of these
forming a job?
(A) Supervisors 50. The process of identifying the latest talent of
people to caters to the future needs of the
(B) Peers & self appraisal
organisation is known as
(C) Subordinate & user of services
(A) Halo effect
(D) All of these
(B) Potential appraisal
45. Under this method the present performance (C) Performance appraisal
is evaluated much on the basis of past per- (D) None of these
formance. “The person who was a good per-
51. Raters form an overall impression about the
former in distant past is assured to be okay
ratee on the basis of some particular charac-
at present also”
teristics of the ratee identified by them. The
(A) Spillover effect
identified qualities and features may not
(B) Job Banding
provide adequate base for appraisal
(C) Both (A) & (B) (A) Halo effect
(D) None of these (B) Rater effect
(C) Central tendency 57. Performance appraisal help in
(D) First Impression (A) Training
52. Which is the limitation of Performance ap- (B) Performance appraisal
praisal? (C) Both A & B
(A) Halo effect (D) All of these
(B) Rater effect 58. Performance appraisal methods classified in
(C) Central tendency (A) Individual evaluation methods
(D) All of these (B) Group evaluation methods
53. Fishbone diagrams, or herringbone dia- (C) Others methods’
grams, cause-and-effect diagrams or (D) All of these
Fishikawa) are causal diagrams that show 59. Individual evaluation methods performance
the causes of a certain event created appraisal are
by___________in (1990). (A) Confidential reports
(A) Robert & David (B) Critical incidents
(B) Kaoru Ishikawa (C) Essay evaluation
(C) Alex Faickney Osborn (D) All of these
(D) None of these 60. Rating is influenced by the most recent
54. _______the error arise when the rater is not behaviour ignoring the commonly demon-
sure about the performance of a person. He strated behaviours during the entire ap-
will play safe in evaluating person and will praisal period.
rate them average. Neither he will rate poor (A) Halo effect
performer and not even he will rate them (B) Recency effect
outstanding. (C) Central tendency
(A) Halo effect (D) All of these
(B) Rater effect
61. Individual evaluation methods performance
(C) Central tendency
appraisal are
(D) All of these
(A) Forced choice methods
55. ________the evaluators have their own (B) MBO
value system which act as a standard for (C) BARS
evaluation. Some evaluator may be lenient (D) All of these
and will give high rating to everybody and
vise-versa. 62. The______ reports relate to the performance
ability and character of employee during the
(A) Halo effect
years. It is mostly used in government
(B) Leniency and strictness
organisations. It is a descriptive report pre-
(C) Central tendency
pared, generally at the end of every year, by
(D) All of these the employee’s immediate superior. The re-
56. _________ the evaluator uses his own trait port highlights the strengths and weak-
as a basis for assessing the employees. If the nesses of the subordinate.
raters aggressive then he will try to find out (A) Confidential reports
this trait in subordinate. (B) Critical incidents
(A) Faulty assumption (C) Essay evaluation
(B) Leniency and strictness (D) All of these
(C) Similarity errors
63. A rating scale list traits and a range of per-
(D) All of these
formance values for each traits. A variety of
trait may be used in these type of rating de- (A) Checklist

vices, the most common being, the quality (B) Critical incidents
and quantity of work (C) BARS
(A) Checklist (D) All of these
(B) Graphing rating scale 70. In _______the supervisor continuous
(C) BARS watches the subordinate and writes his as-
(D) All of these sessment in the reports.
64. In _______every employees is judged as a (A) Free Essay Methods
whole without distinguished the rate of his (B) Straight ranking methods
performance. (C) BARS
(A) Checklist (D) All of these
(B) Straight ranking methods 71. _________is an absolute assessment tech-
(C) BARS niques wherein critical incidents are identi-
(D) All of these fied and a range of a performance possibili-
65. Group evaluation methods of PA are ties (poor and good) are describes in each
(A) Ranking dimension.
(B) Paired comparison (A) Checklist
(C) Forced distribution (B) Forced distribution
(D) All of these (C) BARS
66. In ______the very person is compared as trait (D) All of these
wise, with others person/one at a time. 72. An approach in which employee and super-
(A) Paired comparison visor jointly establish clear measurable per-
(B) Critical incidents formance jobs for the future
(C) Essay evaluation (A) Forced choice methods
(D) All of these (B) MBO
67. In _________employees is given the grades (C) BARS
according to the judgments of the raters. (D) All of these
(A) Grading system 73. _______is a sophisticated way to measure
(B) Critical incidents the effectiveness of personnel management
(C) Essay evaluation activities and the use of people in an
(D) All of these organisation.
(A) HRA
68. This system minimize raters bias so that all
employees are not similar rated, this system (B) MBO
is based on the pre assumption that all em- (C) BARS
ployees can be divided in five categories (D) All of these
(A) Checklist 74. ______ is an appraisal technique that relies
(B) Forced distribution on multiple types of evaluation and multiple
(C) BARS raters.
(D) All of these (A) Forced choice methods
69. _______methods attempts to measure work- (B) Assessment centre
ers performance in terms of certain events (C) BARS
and incidents that occurs in the course of (D) All of these
work. 75. _________is systematic collection of perfor-
mance data on an individual and group, de-
rived from numbers of stakeholders being (A) Careers
the immediate supervisor, team members, (B) ESOP
peers and self. (C) BARS
(A) Forced choice methods (D) All of these
(B) 360 Degree 82. A person who is higher up the organisation
(C) BARS and who can provide careers advice and
(D) All of these support to less senior person
76. Extra benefits provided to employees in ad- (A) Careers
dition to the normal compensation paid in (B) Mentors
the form of wage and salary (C) BARS
(A) Fringe benefit (D) All of these
(B) 360 degree 83. The discussion of employees problem with
(C) BARS a view to help the employee cope with it
(D) All of these (A) Careers
77. ______a sequence of position held by a per- (B) 360 degree
son during the course of a life time. (C) Counselling
(A) Careers (D) All of these
(B) 360 Degree 84. Efforts by employees to obtain higher rating
(C) BARS by pottering an image desired by their su-
(D) All of these pervisor.
78. _______is a conscious process through (A) Impression management
which a person becomes aware of a personal (B) 360 degree
careers related attributes and the lifelong se- (C) BARS
ries of a stages that contributes his or her (D) All of these
careers fulfillment. 85. The loss of employees who quit the
(A) Careers organisation for various reasons.
(B) Careers planning and development (A) Careers
(C) BARS (B) Attrition
(D) All of these (C) BARS
79. The sequential pattern of the job that com- (D) All of these
promise ones careers 86. BARS Stands for
(A) Careers path (A) Behaviour Anchored Rating scales
(B) 360 degree (B) Bating anchor rating scales
(C) BARS (C) Behave and rating scale
80. A concern or value that you will not give up 87. HRA stands for
if a choice has to be made
(A) House Rent Act
(A) Careers
(B) Human Resource Accounting
(B) 360 degree
(C) House Rent Account
(C) Career anchors
(D) All of these
(D) All of these
88. Human resource audits summarize each
81. It provides a mechanism through which cer- employee’s skill and_________ .
tain eligible employees may purchases the
(A) Careers (B) Life
stock of the company at reduces rate
(C) Abilities (C) Controlling

89. Human resource accounting is based on 96. Utility of job analysis includes
(A) Careers (A) Selection of employee
(B) human resource (B) Work study
(C) BARS (C) BARS
90. ____________is a mental picture that an in- 97. Which of the following are the internal
dividual holds about a person because of sources of recruitment?
that person’s sex, age, religion, caste, etc. By (A) Promotion
generalizing behaviour on the basis of such (B) Trainees
blurred images, the rater grossly overesti- (C) Transfers
mates or underestimates a persons’ perfor- (D) All of these
mance.
98. Which of the following is a type of skill test?
(A) Advisory evaluation
(A) Interest test
(B) Stereotyping
(B) Personality test
(C) Appraisal evaluation
(C) Achievement test
(D) All of these
(D) All of these
91. Present performances is determined largely
99. Aptitude test includes
from
(A) Intelligence test
(A) Advisory evaluation
(B) Mechanical test
(B) Supervisory evaluation
(C) Skill test
(C) Appraisal evaluation
(D) All of these
(D) All of these
100. Grievances is affecting one or more indi-
92. Jobs are link between the people and the
vidual workers in respects of their condi-
(A) Organisation
tions of work and not disputes over matters
(B) Manager of general applicability to all________.
(C) Supervisor (A) Compliant
(D) All of these (B) Order
93. Job enlargements expands the number of re- (C) Claims
lated tasks in the (D) All of these
(A) Job
101. BARS associated with
(B) Attrition (A) T& D
(C) Work
(B) Performance appraisal
(D) All of these (C) Covers planning
94. The appraisal process is design by (D) WPM
(A) Personnel department
102. The philosophy of never ending improve-
(B) Workshop
ment TQM is called
(C) Management (D) All of these
(A) Kanban
95. Management function of personnel manage- (B) Kaizen
ment is (C) Benchmarking
(A) Personnel planning (D) All of these
(B) Personnel organisation
103. Who had advocated the “business re-engi- and technical ability.
neering concepts?” (A) Training
(A) K. Pang and N. Oliver (B) Development
(B) Hammer and Champy (C) Education
(C) R Stablein and Nord (D) All of these
(D) All of these 110. ________improve the performance of the
104. Which of the following aims at control employees on present job and prepares them
through setting goals and productivity mea- for taking up new assignment for future.
sures based on best practices in industry? (A) Training & Development
(A) Kanban (B) Development
(B) Kaizen (C) Education
(C) Benchmarking (D) All of these
(D) All of these 111. ________is the activities that prepares an
105. In _______a person is perceived on the ba- employee for future responsibilities.
sis of the single trait. (A) Training
(A) Halo effect (B) Development
(B) Hawthorne effect (C) Education
(C) Stereotyping (D) All of these
(D) None of these 112. ______is a conceptual learning that im-
106. Moonlighting means proves understanding of a subject /theme.
(A) Work simultaneously with two (A) Training
organisations (B) Development
(B) Working under moonlight (C) Education
(C) Working in the night (D) All of these
(D) None of the above 113. Which of the following is the objectives of
107. Which of the following is the outcome of job training ?
satisfaction? (A) To imparts new skill and knowledge to
(A) High employee turnover new entrants
( B) High productivity (B ) To equip the employee to meet the chang-
(C) Absenteeism ing requirement of the job and organisa-
(D) All the above tion
108. Which of the following is the correct se- (C) To teach the employees new techniques
quence of training evaluation? and way to performing the job
(A) Reaction, learning, behaviour and (D) All of these
results 114. Need and importance of training includes
(B) Learning, reaction, behaviour and (A) Increased productivity
results. (B) Higher employee morale
(C) Learning, behaviour, reaction and (C) Less supervision and wastage
results. (D) All of these
(D) Reaction, learning, results and 115. The___________ named after the famous
behaviour. economist Vilfredo Pareto (1848-1923).
109. _____is the act for increasing the knowledge (A) Behaviourally anchored
and skill of people for a specific purpose. (B) Pareto Chart or Pareto Diagram
The trainees acquire new skill, knowledge
(C) Performance analysis (A) QC

(D) All of these (B) Twenty key system
116. TQM was demonstrated on a grand scale by (C) Both A & B
Japanese industry through the intervention (D) None of these
of________who, in consequence, and thanks 122. Which one is responsible for training?
to his missionary labors in the U.S. and (A) Top Management
across the world, has come to be viewed as (B) Personnel department
the “father” of quality control, quality cir- (C) Line supervisor
cles, and the quality movement generally. (D) All of these
(A) Walter
123. The methods of training includes
(B) W. Edwards Deming
(A) On the Job
(C) Both A & B
(B) Off the Job
(D) None of these
(C) Both A & B
117. Which of the following factors related to (D) None of these
training need analysis?
124. The training techniques that involves allow-
(A) Organisation analysis
ing the person to learn the job by actually
(B) Task and Role analysis
performing it on the job place.
(C) Manpower analysis
(A) On the Job
(D) All of these
(B) Off the Job
118. Which of the following factors includes (C) Both A& B
Organisation analysis? (D) None of these
(A) Resources utilisation analysis
125. In______ training methods the trainees have
(B) Analysis of objectives
to leave their workplace and devote their
(C) Environment Scanning entire time to the training.
(D) All of these (A) On the Job
119. Major type of goals and objectives includes (B) Off the Job
(A) Operational objectives (C) Both A & B
(B) Performance objectives (D) None of these
(C) Reaction objectives 126. On the job training methods is concerned
(D) All of these with
120. This training is basically provided to bring (A) JIT
the balance between the theoretical knowl- (B) Coaching
edge and the practical skills required to do (C) Monitoring
the job. This training is the combined effort (D) All of these
of the educational institutions and business
127. Methods related to On the Job training in-
organisations
cludes
(A) Internship Training
(A) Position rotation
(B) Twenty key system
(B) Committee assignment
(C) Both A & B
(C) Apprenticeship
(D) None of these
(D) All of these
121. __________integrates a set of management
128. _________ is basically used to teach the
a set of management strategies and employee
workers how to do their current jobs. A
involvement techniques.
trainer supervisor act as a coach.
(A) Job instructional training (A) Position rotation
(B) Coaching (B) Committee assignment
(C) Monitoring (C) Apprenticeship
129. Four step instructional related to which 135. Off the job training methods are
method of T & D (A) Vestibule
(A) JIT (B) Role playing
(B) Coaching (C) Behavioural experienced training
(C) Monitoring (D) All of these
(D) All of these 136. Off the job training methods are
130. It is a kind of daily training and feedback (A) Conference
given to the employees by their immediate (B) Classroom training
Supervisors. (C) Internship training
(A) JIT (D) All of these
(B) Coaching 137. In this methods actual work used in are
(C) Monitoring stimulated in a class room. Condition mate-
(D) All of these rial, files and equipment that are used in
131. In _______an experienced employee offer- actual job performance used in training.
ing guidance to a junior person so that they (A) Vestibule
later learn and advance in the organisation. (B) Role playing
(A) JIT (C) Behavioural experienced training
(B) Coaching (D) All of these
(C) Monitoring 138. ________ is a methods of human interac-
(D) All of these tion that involves realistic behaviour in
132. In _______ method the trainees work as ap- imaginary situation. It involves action, do-
prentices under the direct supervision of ex- ing and practice. The trainees play role of
perts for a long period and some stipend is certain character.
paid to them during the training period. (A) Vestibule
(A) Position rotation (B) Role playing
(B) Committee assignment (C) Behavioural experienced training
(C) Apprenticeship (D) All of these
(D) All of these 139. ______the participant pool their ideas and
133. In __________ training is the broadening of experience to arrive at improve methods of
the background of the trainees in the dealing with the problem in common dis-
organisation. In these methods moving the cussion.
trainee from job to job to provide cross train- (A) Conference
ing. (B) Classroom training
(A) Position rotation (C) Internship training
(B) Committee assignment (D) All of these
(C) Apprenticeship 140. How many dimension are there in Blake and
(D) All of these Mouton managerial grid?
134. In __________ trainees are asked to perform (A) Two
special assignment and to solve actual (B) Three
organisation problems. (C) Four (D) Five
141. In ________ training, educational institu- between alternative inputs to training

tional and business firms have a joint (A) Context evaluation
programme of training, selected candidates (B) Input evaluation
carry on regular studies for the prescribed (C) Outcomes & reaction evaluation
periods. (D) All of these
(A) Conference 148. Monitoring the consequences three level of
(B) Classroom outcome evaluation distinguished are
(C) Internship (A) Context evaluation
(D) All of these (B) Input evaluation
142. Electronic training methods includes (C) Outcomes evaluation
(A) Audio-visual (D) All of these
(B) Computer based training 149. ________changes in trainees knowledge
(C) EPSS skill and attitude, which can be identified
(D) All of these immediately after the completion of train-
143. _________is a systematic collection and as- ing assessment about how people have
sessment of information for deciding how changed during training programme.
best to utilize available resources in order to (A) Immediate evaluation
achieve organisation objective. (B) Intermediate evaluation
(A) Evaluation (C) long term evaluation
(B) Classroom training (D) All of these
(C) Internship training 150. _______ is the changes in trainees actual
(D) All of these work behaviour which result for training as-
144. Which of the following is the types of T & D sessment monitoring performance on the job.
evaluation programme? (A) Immediate evaluation
(A) Context evaluation (B) Intermediate evaluation
(B) Input evaluation (C) Long term evaluation
(C) Outcomes & reaction evaluation (D) All of these
(D) All of these 151. The changes in the functioning of part of all
145. Which of the following is the Types of Out- the organisation which have resulted from
comes evaluation ? changes in work behaviour organising in
(A) Immediate evaluation training. Assessment is usually in terms of
(B) Intermediate evaluation output.
(C) Long term evaluation (A) Immediate evaluation
(D) All of these (B) Intermediate evaluation
146. Obtaining and using information about the (C) Long term evaluation
current operational context that is about in- (D) All of these
dividual difficulties, organisation deficien- 152. Obtaining and using information about the
cies and so on current and subsequent reaction in order to
(A) Context evaluation improve training.
(B) Input evaluation (A) Context evaluation
(C) Outcomes & reaction evaluation (B) Input evaluation
(D) All of these (C) Reaction evaluation
147. Obtaining and using information about the (D) All of these
possible training resources in order to choose
153. Which of the following techniques related (A) Training
to T & D ? (B) Executive development
(A) Observation (C) Education
(B) Interview (D) All of these
(C) Questionnaire 160. Techniques of management development
(D) All of these programme are
154. Which of the following is the correct se- (A) Decision making skill
quences of training evaluation? (B) Job knowledge
(A) Reaction, learning, behaviour & result (C) Interpersonal skill
(B) Learning, behaviour & result reaction (D) All of these
(C) behaviour, result reaction & learning 161. Which of the following techniques related
(D) All of these to Management Development?
155. The various techniques of evaluation in- (A) Specific individual need skill
cludes (B) Organisation knowledge
(A) Activity sampling (C) General knowledge
(B) Observation of specific incidents (D) All of these
(C) Self Diaries 162. Decision making skill methods related to
(D) All of these management development includes
156. Which of the following is the types of train- (A) In Basket exercise
ing (B) Business games
(A) Vestibule training (C) Case study
(B) Apprenticeship training (D) All of these
( C) Internship training 163. Which of the following management devel-
(D) All of these opment methods related to interpersonal
157. In _________ the Govt. of India announced skill
the setting up of quality council of India and (A) Role-play
a national agency for quality certification to (B) Sensitivity training
setup as a part of the WTO agreement. (C) Behaviour modelling
(A) 1985 (D) All of these
(B) 1996 164. Interpersonal skill methods related to man-
(C) Both A & B agement development includes
(D) None of these (A) Transactional analysis
158. Principle of T & D evaluation programme (B) Multiple management
(A) The evaluation goal and purpose must (C) Both A & B
be clear (D) All of these
(B) Evaluation must be continuous 165. Job knowledge methods related to manage-
(C) Evaluation must be specific ment development includes
(D) All of these (A) On the job methods
159. ___________is the process in which execu- (B) Coaching
tives acquire not only skill and competen- (C) Understudy
cies in their present job but also capabilities (D) All of these
for future managerial tasks of increasing dif- 166. Organisation knowledge methods related to
ficulty and scope. management development includes
(A) Job rotation (B) Sensitivity training

(B) General knowledge (C) Behaviour modelling
(D) All of these 173. _______is based on social learning theory.
167. Specific individual need skill methods man- It is a more structured approach to teach spe-
agement development includes cific supervisory skill.
(A) Special projects assignment (A) Role play
(B) Committee assignment (B) Sensitivity training
(C) Conference (C) Behaviour modelling
168. An Organisation secretly tries to lure the 174. When people interact there is a social trans-
employee of another organisation. It is called action in which one person responds to oth-
(A) Consulting ers. The study between these transactions is
(B) Poaching called_______.
(C) Negotiating (A) Transactional analysis
(D) Persuading (B) Multiple management
169. _______are designed to be representative of (C) Both A & B
real life situation. A management game in a (D) All of these
classroom exercise, in which team of stu- 175. Here the junior executives are encouraged
dents compete against each others to achieve to put their minds to work on business as
certain common objectives. whole, rather than to concentrate on their
(A) In Basket exercise specialized area.
(B) Business games/simulation (A) Transactional analysis
(C) Case study (B) Multiple management
(D) All of these (C) Both A & B
170. The_______ methods of development utilize (D) All of these
actual case examples collected from various 176. ______is a method, immediate superior
organisations for diagnostic purposes. guides the subordinate about various meth-
(A) Basket exercise ods and skill to do the job. He briefs the train-
(B) Business games ees in what is expected of them and guides
(C) Case study them to correct their mistake.
(D) All of these (A) On the job methods
171. Under _______a conflicting situation is ar- (B) Coaching
tificial created and two or more trainees are (C) Understudy
assigned different roles to play. No dia- (D) All of these
logues are given before hand. 177. The trainees is prepared to perform the work
(A) Role play or fill the position of his superior.
(B) Sensitivity training (A) On the job methods
(C) Behaviour modelling (B) Coaching
(D) All of these (C) Understudy
172. This method is called T-group and labora- (D) All of these
tory training as it is conducted under con- 178. ______implies systematic planned and co-
trolled condition. ordinated efforts to transfer an executive
(A) Role play from job to job plant to plant.
(A) Job rotation (A) Wide awareness
(B) General knowledge (B) Enlarged skills
(C) Both A & B (C) Training design
(D) All of these (D) Quality management
179. A__________ training is a highly training 185. All these costs need to be taken into consid-
device under which a trainee is assigned eration in the cost benefit analysis
projects that is closely related to his job. (A) Direct & Indirect
(A) Special projects assignment (B) Training assessment
(B) Committee assignment (C) Financial
(C) Conference (D) All of these
(D) All of these 186. A person who will initiate change in the
180. Under these methods an adhoc committee organisation is called
is constituted and is assigned a subject re- (A) Consultant
lated to the business to discuss and make (B) Trainer
recommendation. (C) Change agent
(A) Special projects assignment (D) Counsellor
(B) Committee assignment 187. Off the job training does not include
(C) Conference (A) Role play
(D) All of these (B) Sensitivity training
181. A_____ is a group meeting is conducted ac- (C) Coaching
cording to an organised plan in which the (D) All of these
member participates in oral discussion of
188. Which of the following are not the objectives
particular problem and thus develop their
of sensitivity training
knowledge and understanding.
(A) Awareness of behavioural pattern of
(A) Special projects assignment
other and himself
(B) Committee assignment
(B) Increased openness and greater concern
(C) Conference to others
(D) All of these (C) Increased tolerance
182. Identification of the steps involved in task (D) Potentialities to the next level job
analysis is attributed to
189. When situation is duplicated in such a way
(A) Campbell that it carries a closer resemblance to the
( B) McGhee &Thayer actual job setting
(C) Goldstein (A) Role Play
(D) Mackey (B) Simulation
183. The awareness of the increasing intense (C) Coaching
competition has resulted in greater under- (D) All of these
standing by ____________ of the importance
190. On the job training does not include
and value of training.
(A) Coaching
(A) senior line manager
(B) Under study
(B) trainers
(C) The case study
(C) trainees
(D) All of these
(D) employees
191. Which of the following is not a determinant
184. Management development program pro-
of wages?
vides
(A) Performance Appraisal 199. Which is not a structure of Trade Union of

(B) Prevailing wages Industrial Organisation?
(C) Bargaining strength of Unions (A) Craft Union
(D) Job Evaluation. (B) General Union
192. Which of the following are not the methods (C) Industrial Union
of performance appraisal? (D) Consumer’s Union
(A) centre 200. Which of the following HRD climate vari-
(B) 360 appraisal ables are?
(C) critical incident (A) Risk taking
(D) All of these (B) Better Communication
193. Who introduced the concept of QC in India? (C) Fair Rewards
(A) Toyota (D) All of these
(B) S.R Udpa 201. Which of the following techniques of T & D
(C) Both A & B used in evaluation?
(D) None of these (A) Rating Scales
194. The concept of QC is a brain child. The state- (B) Test
ment is given by (C) TAT
(A) Toyota (D) All of these
(B) Ishikawa 202. Job Holders are rated through
(C) Both A & B (A) Halo effect
(D) None of these (B) Rater effect
195. In which industry QC in India was first in- (C) Performance appraisal
troduced (D) None of these
(A) BEL 203. Training in organisation can be used as both
(B) BHEL _______and proactive approach.
(C) Both A & B (A) Reactive
(D) None of these (B) active
196. Money wage is otherwise called as (C) Both A & B
(A) Real Wage (D) None of these
(B) Living Wage 204. __________ is proactive in those instances
(C) Nominal Wage when organisation foresee some coming
(D) Fair Wage change and train its employee in advance to
cope with the changes.
197. Which of the following is/are the Sub-sys-
tem or mechanism of HRD? (A) Reactive
(A) HRD environment (B) Training
(B) QWL (C) Both A & B
(C) QC (D) All of these (D) None of these
198. Which of the following is/are HRD Strate- 205. Training is a part of _______which basically
gies? comprises of training, education and devel-
(A) Empowerment opment.
(B) Learning organisation (A) HRD
(C) Benchmarking (B) Training
(D) None of these
206. The importance of learning was put forward (A) Input
by Confucius (551-479 BC) in these words (B) Transformational process
without learning, the wise become foolish, (C) Output
by learning the foolish become wise”. (D) All of these
Confucius was 213. _____________is concerned with the iden-
(A) Indian philosopher tification of training requirement based on
(B) Chinese philosopher the analysis of job performance requirement
(C) Both A & B data obtained from the experts in the job to
(D) None of these be performed.
207. In 1990 ________popularised the “learning (A) Input
organisation” in the Fifth discipline: The art (B) Instructional system development
and practice of the learning organisation. (C) Output
(A) Taylor (D) All of these
(B) Peter Senge 214. The phases of the (ISD) instructional system
(C) Both A & B development model are
(D) None of these (A) Analyse & Design
208. Training is more _______ it emphasizes in- (B) Development
form and predictable response to standard (C) Implement & Evaluation
guidance and instruction reinforced by prac- (D) All of these
tice and repetition changes in the individual. 215. The transitional model of training is given
(A) Organic by
(B) Mechanistic (A) F.W. Taylor
(C) Both A & B (B) Harry Taylor
(D) None of these (C) Both A & B
209. Education is more __________ it brings (D) None of these
about less predictable changes in the indi- 216. __________ describe the double loop of cor-
vidual. porate strategy and learning. The inner loop
(A) Organic is the systematic training model, the outer
(B) Mechanistic loop is described as a crafted strategy.
(C) Both A & B (A) F.W Taylor
(D) None of these (B) Harry Taylor
210. Obstacles of the successful training are con- (C) Both A & B
cerned with (D) None of these
(A) Social and cultural factors 217. The Ash ridge model “management for the
(B) Political factors future”. In this model the training activity
(C) Personal factors within the organisation can be considered
(D) All of these the three activity that is
211. System model of training’s steps are (A) A fragmented approach
(A) Analyse & Design (B) A formalized approach
(B) Develop (C) A focused approach
(C) Implement & Evaluate (D) All of these
(D) All of these 218. Chin and benne describe the _________
212. Training system model consist of which of (A) Normative re-educative Strategy
these sub parts (B) Parallel learning
(C) Applied behavioural Sciences 224. _______commonly used in government

(D) Action research organisation and public enterprise, a confi-
219. Chin and benne describe three type of strat- dential report is submitted on the perfor-
egy that is mance of the employee.
(A) Empirical rational (A) Closed ended appraisal system
(B) Normative re-educative strategy (B) Open ended appraisal system
(C) Power coercive strategy (C) Both A & B
220. _______people are rational being and will 225. Who is the father of quality circle
follow their self interest, once it is revealed (A) Lewis
to them. Successful change is based on the (B) Ishikawa
communication of information and the of- (C) Udpa
fering of incentives. (D) Robert Owen
(A) Empirical rational 226. George Odiorne has identified basic Ap-
(B) Normative re-educative strategy proaches of performance appraisal system
(C) Power coercive strategy includes
(D) All of these (A) Personality based system
221. In _______the people are social being and (B) Generalized descriptive system
will adhere to cultural norms and values. (C) Behavioural descriptive system
Successful change is based on redefining (D) All of these
and reinterpreting existing norms and val- 227. The critical incident method is developed
ues and developing commitments to new by
ones (A) Dr. Robert Kaplan & David Norton
(A) Empirical rational (B) Flanagan & Burns
(B) Normative re-educative strategy (C) Both A & B
(C) Power coercive strategy (D) None of these
(D) All of these 228. Result –oriented appraisal is also known as
222. _________based on the assumption that the (A) T & D
change is compliance of those who have less (B) MBO
power with the desire of those who have less (C) Both A & B
power of those who have more power. Suc- (D) None of these
cessful change is based on the exercise of
authority and imposition of sanction. 229. The Balance Scorecard (BSC) was first intro-
duced in
(A) Empirical rational
(A) 1992
(B) Normative re-educative strategy
(B) 1991
(C) Power coercive strategy
(C) Both A & B
(D) All of these
(D) None of these
223. Types of performance appraisal system
which are commonly used in organisation 230. HR Balance scorecard (BSC) was first intro-
is duced by
(A) Closed ended appraisal system (A) Dr. Robert Kaplan & David Norton
(B) Open ended appraisal system (B) Flanagan & Burns
(C) Both A & B (C) Both A & B
231. Component of performance appraisal are (A) To provide feedback to the employees
(A) KPA /KRAs (B) To clearly establish goal
(B) Self Appraisal (C) To develop positive superior subordi-
(C) Performance analysis nate relationship
232. _________refers to the process and actions 238. _________ also known as the behavioural
that aims at identifying and developing a expectations scale, this method represents
pool of potential successors for senior or key the latest innovation in performance ap-
job in the future. It ensures the continual praisal. It is a combination of the rating scale
supply of qualified executive talent to lead and critical incident techniques of employee
and support and growth. performance evaluation.
(A) Succession Planning (A) Behaviourally anchored rating scales
(B) Self Appraisal (B) Self appraisal
(C) Performance analysis (C) Performance analysis
233. Which are the major considerations in de- 239. Work related objectives of performance ap-
signing a training? praisal includes are
(A) Area of training content (A) To improve efficiency
(B) Key learning principle (B) Fixing employees according to their ca-
(C) Trainee characteristics & cost factors pacity, skill and knowledge
(D) All of these (C) To carry out job evaluation
234. Career Planning involves fundamental ele- (D) All of these
ments represent the career planning process 240. Sensitivity training is known as_________.
includes. (A) T group Training
(A) Direction (B) Operative training
(B) Career time (C) Problem solving Training
(C) Transition & Outcomes (D) In basket exercise
(D) All of these 241. Arrange the following steps of training pro-
235. The term training indicated any process by cedure in proper sequences
which the aptitude skill and abilities of em- a. preparing the trainee
ployees to perform specific jobs are b. preparing the instructor
(A) Evaluated c. presenting the operation
(B) Rated d. getting ready to reach
(C) Increased e. tryout the trainee performance
(D) All of these f. follow up
236. As the job become more ____the importance (A) a, b, c, d, e, f
of employee development is also increased (B) b, a, d, c, e, f
(A) Simple (C) f, e, d, c, a, b
(B) Complex (D) a, d, c, e, b, f
(C) Increased 242. Which of the following is the correct se-
(D) All of these quence of management development pro-
237. Communication related objectives perfor- cess?
mance appraisal includes are (i) Designing development programme
(ii) Conducting development programme
(iii) Evaluating development programme (c) Alternation (iii) Ranking

(iv) Defining parameter to development ranking methods employees from
(v) Identifying the development need the best to worst on
Codes : a Particular trait
(A) (ii) (iii) (i) (iv) (v) until all are
(B) (iii) (ii) (iv) (i) (v) ranked
(C) (iv) (iii) (ii) (v) (i) (d) MBO (iv) Setting goals and
(D) (v) (iv) (i) (ii) (iii) periodically mea-
suring
243. Consider following steps in performance
appraisal and then arrange in proper se- performance
quences Codes :
(i) Comparison of actual performance with (a) (b) (c) (d)
performance standard (A) (iv) (iii) (ii) (i)
(ii) Communicate performance expectation (B) (ii) (i) (iii) (iv)
(iii) Initiate corrective action, if any (C) (iii) (iv) ( ii) (i)
(iv) Establish performance standard (D) (i) (ii) (iii) (iv)
(v) Measurement actual performance 246. Match the following with List-A to List-B
Codes : List-A List-B
(A) (iv) (ii) (v) (iii) (i) (a) Job rotation (i) The trainer
(B) (i) (ii) (iii) (iv) (v) appraises the
(C ) (iv) (ii) (v) (i) (iii) performance of the
(D) (i) (iv) (iii) (ii) (v) trainee, provides
244. What is the correct order of the following feedback informa
phases of training ? tion and corrects
(i) Development Phase the trainee
(ii) Design Phase (b) Job instruction (ii) movement of the
(iii) Need analysis phase trainee from one
(iv) Implementation phase job to another
(v) Evaluation (c) Vestibule (iii) Simulation of
Codes : training actual work condi
(A) (iii) (ii) ( i) (iv) (v) tions in a class
(B) (ii) (i) ( iii) (v) (iv) room
(C) (iii) (iv) ( i) (ii) (v) (d) Programmed (iv) The subject matter
(D) (iv) (ii) (i) (iii) (v) instruction to be learned is
245. Match the following presented in a
List -I List-II services of care
fully planned
(a) Forced distri- (i) Keeping records of
bution methods uncommonly ex- sequential units
amples of work Codes :
Related behaviour (a) (b) (c) (d)
(b) Critical (ii) Predetermined (A) (ii) (i) (iii) (iv)
Incident percentages of em- (B) (i) (ii) (iii) (iv)
Methods in ployees placed (C) (iii) (i) (ii) (iv)
Various perfor (D) (iii) (ii) (i) (iv)
mance categories
ANSWER KEY
1. (B) 2. (A) 3. (B) 4. (D) 5. (D) 6. (C) 7. (D) 8. (D) 9. (B) 10. (B)
11. (B) 12. (A) 13. (D) 14. (C) 15. (D) 16. (B) 17. (D) 18. (D) 19. (A) 20. (C)
21. (A) 22. (C) 23. (B) 24. (D) 25. (D) 26. (C) 27. (D) 28. (A) 29. (D) 30. (D)
31. (D) 32. (B) 33. (C) 34. (D) 35. (A) 36. (A) 37. (D) 38. (D) 39. (D) 40. (B)
41. (D) 42. (C) 43. (D) 44. (D) 45. (A) 46. (B) 47. (B) 48. (A) 49. (A) 50. (B)
51. (D) 52. (D) 53. (B) 54. (C) 55. (B) 56. (C) 57. (C) 58. (D) 59. (D) 60. (B)
61. (D) 62. (A) 63. (B) 64. (B) 65. (D) 66. (A) 67. (A) 68. (B) 69. (B) 70. (A)
71. (C) 72. (B) 73. (A) 74. (B) 75. (B) 76. (A) 77. (A) 78. (B) 79. (A) 80. (C)
81. (B) 82. (B) 83. (C) 84. (A) 85. (B) 86. (A) 87. (B) 88. (C) 89. (B) 90. (B)
91. (B) 92. (A) 93. (A) 94. (A) 95. (D) 96. (B) 97. (D) 98. (B) 99. (D) 100. (A)
101. (B) 102. (B) 103. (B) 104. (C) 105. (A) 106. (A) 107. (B) 108. (A) 109. (A) 110. (A)
111. (B) 112. (C) 113. (D) 114. (D) 115. (B) 116. (B) 117. (D) 118. (D) 119. (D) 120. (A)
121. (B) 122. (D) 123. (C) 124. (A) 125. (B) 126. (D) 127. (D) 128. (A) 129. (A) 130. (B)
131. (C) 132. (C) 133. (A) 134. (B) 135. (D) 136. (D) 137. (A) 138. (B) 139. (A) 140. (D)
141. (C) 142. (D) 143. (A) 144. (D) 145. (D) 146. (A) 147. (D) 148. (C) 149. (A) 150. (B)
151. (C) 152. (C) 153. (D) 154. (A) 155. (D) 156. (D) 157. (B) 158. (D) 159. (B) 160. (D)
161. (D) 162. (D) 163. (D) 164. (C) 165. (D) 166. (C) 167. (D) 168. (B) 169. (B) 170. (C)
171. (A) 172. (B) 173. (C) 174. (A) 175. (B) 176. (B) 177. (C) 178. (C) 179. (A) 180. (B)
181. (C) 182. (A) 183. (A) 184. (D) 185. (D) 186. (C) 187. (C) 188. (D) 189. (B) 190. (C)
191. (A) 192. (D) 193. (B) 194. (B) 195. (B) 196. (C) 197. (D) 198. (D) 199. (D) 200. (D)
201. (D) 202. (C) 203. (A) 204. (B) 205. (A) 206. (B) 207. (B) 208. (B) 209. (A) 210. (D)
211. (D) 212. (D) 213. (B) 214. (D) 215. (B) 216. (B) 217. (D) 218. (A) 219. (D) 220. (A)
221. (B) 222. (C) 223. (C) 224. (A) 225. (B) 226. (D) 227. (B) 228. (B) 229. (A) 230. (A)
231. (D) 232. (A) 233. (D) 234. (D) 235. (C) 236. (D) 237. (D) 238. (A) 239. (D) 240. (A)
241. (B) 242. (D) 243. (D) 244. (B) 245. (B) 246. (D) 247. (D) 248. (C) 249. (A) 250. (B)
251. (A)
UNIT
ORGANISATIONAL
BEHAVIOUR
Organisation is an essential part of human life. We are born in organisations, educated in organisations
and spend most of our lives working for organisations.
DEFINITION OF ORGANISATION
According to Gary Johns, “Organisations are social inventions for accomplishing goals through
group efforts”. This definition covers wide variety of groups such as businesses, schools, hospitals,
fraternal groups, religious bodies, government agencies and so on. There are three significant aspects
in the above definition, which require further analysis. They are as follows:
1. Social Inventions. The word “social” as a derivative of society basically means gathering of
people. It is the people that primarily make up an organisation.
2. Accomplishing Goals. All organisations have reasons for their existence. These reasons are
the goals towards which all organisational efforts are directed. While the primary goal of any
commercial organisation is to make money for its owners, this goal is inter-related with many
other goals. Accordingly, any organisational goal must integrate in itself the personal goals of
all individuals associated with the organisation.
3. Group Effort. People, both as members of the society at large and as a part of an organisation
interact with each other and are inter-dependent. Individuals in themselves have physical and
intellectual limitations and these limitations can only be overcome by group efforts.
Concept and Definition of Organisational Behaviour

Organisational behaviour is concerned with people’s thoughts, feelings, emotions and actions in
setting up a work. Understanding an individual behaviour is in itself a challenge, but understanding
group behaviour in an organisational environment is a monumental managerial task.
1. “Organisational behaviour is a field of study that investigates the impact that individuals,
groups and structure have on behaviour within organisation for the purpose of applying such
knowledge toward improving organisation effectiveness.” – Stephen P. Robbins
2. “Organisational behaviour is the study and application at knowledge about the how people -
as individuals and a groups - act within organisation. It strives to identify ways in which
people can act more effectively.” – Keith Davis
(250)
Organisational Behaviour 251
3. “Organisational behaviour can be defined as the understanding, prediction and management
of the human behaviour affect the performance of the organisations. – Luthans
As Nadler and Tushman put it, “Understanding one individual’s behaviour is challenging in
and of itself; understanding a group that is made up of different individuals and comprehending the
many relationships among those individuals is even more complex. Ultimately, the organisation’s
work gets done through people, individually or collectively, on their own or in collaboration with
technology. Therefore, the management of organisational behaviour is central to the management task
– a task that involves the capacity to “understand” the behaviour patterns of individuals, groups and
organisations, to ‘’predict’” what behavioural responses will be elicited by various managerial actions
and finally to use this understanding and these predictions to achieve “control”.
Organisational behaviour can then be defined as: “The study of human behaviour in organisational
settings, the interface between human behaviour and the organisational context, and the organisation
itself.” The above definition has three parts—the individual behaviour, the organisation and the
interface between the two. Each individual brings to an organisation a unique set of beliefs, values,
attitudes and other personal characteristics and these characteristics of all individuals must interact
with each other in order to create organisational settings. The organisational behaviour is specifically
concerned with work-related behaviour, which takes place in organisations.
In addition to understanding; the on-going behavioural processes involved, in their own jobs,
managers must understand the basic human element of their work. Organisational behaviour offers
three major ways of understanding this context; people as organisations, people as resources and
people as people.
Above all, organisations are people; and without people there would be no organisations. Thus, if
managers are to understand the organisations in which they work, they must first understand the
people who make up the organisations.
As resources, people are one of the organisation’s most valuable assets. People create the
organisation, guide and direct its course, and vitalise and revitalise it. People make the decisions,
solve the problems, and answer the questions. As managers increasingly recognise the value of potential
contributions by their employees, it will become more and more important for managers and employees
to grasp the complexities of organisational behaviour.
Finally, there are people as people – an argument derived from the simple notion of humanistic
management. People spend a large part of their lives in; organisational settings, mostly as employees.
They have a right to expect something in return beyond wages and benefits. They have a right to expect
satisfaction and to learn new skills. An understanding of organisational behaviour can help the
manager better appreciate the variety of individual needs and expectations.
Fundamental Concepts of Organisational Behaviour

Organisational behaviour starts with the following six fundamental concepts revolving around the
nature of people and organisations:
The nature of people
m Individual differences
m A whole person
m Motivated behaviour
m Value of the person
The nature of organisation
m Social system
m Mutual interest
The Nature of People

1. Individual Differences. Individuals are different in their physical and mental traits. They
are different not only in the physical appearance such as sex, age, height, weight, complexion
and so on but also different in their psychological trait such as intelligence, attitude,
motivation and perception. This belief that each person is different from all others is typically
called the ‘Law of Individual Differences’. Individual differences mean that the management
has to treat them differently to get the best out of them.
2. A Whole Person. Though the organisation may feel that they are employing only the
individual’s skill or intelligence, in fact, they employ the ‘whole person’. This means that
individual does not have only the skill and intelligence but he has a personal life, needs and
desires as well. In other words, his personal life cannot be separated from his work life since
people function as total human beings.
When management practices organisational behaviour, it is not only trying to develop a better
employee but it also wants to develop a ‘better person’ in terms of all round growth and
development. The benefit will extend beyond the firm into the larger society in which each
employee lives.
3. Motivated behaviour. It is the urge of the individual to satisfy a particular need that motivates
him to do an act. The motivation could be positive or negative. Motivation is essential for the
proper functioning of organisations. The organisation can show to its employees how certain
actions will increase their need fulfilment.
4. Value of the Person. It is more an ethical philosophy. It stresses that people are to be treated
with respect and dignity. Every job, however simple, entitles the people who do it to proper
respect and recognition of their unique aspirations and abilities. Since organisational
behaviour involves people, ethical philosophy is involved in one way or the other.
Elements of Organisational Behaviour

The key elements in the organisational behaviour are people, structure, technology and the
environment in which the organisation operates.
m People. People make up the internal and social system of the organisation. They consist of
individuals and groups. The groups may be big or small; formal or informal; official or
unofficial. Groups are dynamic and they work in the organisation to achieve their objectives.
m Structure. Structure defines the formal relationships of the people in organisations. Different
people in the organisation are performing different type of jobs and they need to be (elated in
some structural way so that their work can be effectively co-ordinated.
m Technology. Technology such as machines and work processes provide the resources with
which people work and affects the tasks that they perform. The technology used has a
significant influence on working relationships. It allows people to do more and work better
but it also restricts’ people in various ways.
m Environment. All organisations operate within an external environment. It is the part of a
larger system that contains many other elements such as government, family and other
organisations. All of these mutually influence each other in a complex system that creates a
context for a group of people.
Elements of an Organisational Behaviour
Management’s
Philosophy, Values, Vision
Mission, goals
Formal Organisational Social

Organisation Culture Behaviour
Informal * Leadership
Organisation * Communication
* Group Dynamics
Quality of
work life
Motivation
Outcomes :
* Performance
* Employee satisfaction
* Personnel growth &
development
Evolution or Historical Background for Modern Organisational Behaviour

Scientific Management Approach. Scientific management approach was developed by F.W. Taylor
at the beginning of the 20th century. This theory supported the use of certain steps in scientifically
studying each element of a job, selecting and training the best workers for the job arid making sure
that the workers follow the prescribed method of doing the job. It provided a scientific rationale for
job specialization and mass production. His assumption was that employees are motivated largely
by money. To increase the output, Taylor advised managers to pay monetary incentives to efficient
workers.
Yet, his theory was criticized by many employers and workers. Workers objected to the pressure of
work as being harder and faster. Critics worried that the methods took the humanity out of labour,
reducing workers to machines responding to management incentives. Therefore, Taylor’s view is now
considered inadequate and narrow due to the points given by the critics.
Bureaucratic Approach. While scientific management was focusing on the interaction between workers
and the task, researchers were studying how to structure the organisation more effectively. Instead of
trying to make each worker more efficient, classical organisation theory sought the most effective
overall organisational structure for workers and managers.
The theory’s most prominent advocate, Max Weber, proposed a ‘bureaucratic form’ of structure,
which he thought would work for all organisations. Weber’s idea! Bureaucracy was , logical, rational
and efficient. He made the naive assumption that one structure would work best for all organisations.
Henry Ford, Henry Fayol and Frederick W. Taylor, the early management pioneers, recognized the
behavioural side of management. However, they did not emphasize the human dimensions. Although
there were varied and complex reasons for the emerging importance of behavioural approach to
management, it is generally recognized that the Hawthorne studies mark the historical roots for the
field of organisational behaviour.
Hawthorne Studies. Even, as Taylor and Weber brought attention with their rational, logical
approaches to more efficient productivity; their views were criticized on the ground that both approaches
ignored worker’s humanity. The real beginning of applied research in the area of organisational
behaviour started with Hawthorne Experiments. In 1924, a group of professors began an enquiry into
the human aspects of work and working conditions at the Hawthorne plant of Western Electric
Company, Chicago. The findings of these studies were given a new name ‘human relations’ the
studies brought out a number of findings relevant to understanding human behaviour at work. The
Human element in the workplace was considerably more important. The workers are influenced by
social factors and the behaviour of the individual worker is determined by the group.
Hawthorne studies have been criticized for their research methods and conclusions drawn. But
their impact on the emerging field of organisational behaviour was dramatic. They helped usher in a
more humanity cantered approach to work.
Importance of Organisational Behaviour

Organisational behaviour offers several ideas to management as to how human factor should be
properly emphasised to achieve organisational objectives. Barnard has observed that an organisation
is a conscious interaction of two or more people. This suggests that since an organisation is the
interaction of persons, they should be given adequate importance in managing the organisation.
Organisational behaviour provides opportunity to management to analyse human behaviour and
prescribe means for shaping it to a particular direction.
Understanding Human Behaviour Organisational behaviour provides under-standing the human
behaviour in all directions in which the human beings interact. Thus, organisational behaviour can
be understood at the individual level, interpersonal level, group level and inter-group level.
Main Features of Organisational Behaviour

m OB provides a good map to our lives in organisations.
m OB uses scientific research to understand and make organisation life, as it helps to predict
what people will do under conditions.
m It helps to influence organisational events – to understand and predict events.
m If helps individual understand herself / himself in better fashion.
m It helps manager to manage human resources effecitively e.g. motivation.
m If helps organisations for maintaining cordial industrial relations.
m It is also useful in the field marketing.
Organisational behaviour helps to analyse ‘why’ and ‘how’ an individual behaves in a particular
way. Human behaviour is a complex phenomenon and is affected by a large number of factors including
the psychological, social and cultural implications. Organisational behaviour integrates these factors
to provide simplicity in understanding the human behaviour.
1. Interpersonal Level. Human behaviour can be understood at the level of interpersonal
interaction. Organisational behaviour provides means for understanding the interpersonal
relationships in an organisation. Analysis of reciprocal relationships, role analysis and
transactional analysis are some of the common methods, which provide such understanding.
2. Group Level. Though people interpret anything at their individual level, they are often modified
by group pressures, which then become a force in shaping human behaviour, Thus, individuals
should be studied in groups also. Research in group dynamics has contributed vitally to
organisational behaviour and shows how a group behaves in its norms, cohesion, goals,
procedures, communication pattern and leadership. These research results are advancing
managerial knowledge of understanding group behaviour, which is very important for
organisational morale and productivity.
3. Inter-group Level. The organisation is made up of many groups that develop complex
relationships to build their process and substance. Understanding the effect of group
relationships is important for managers in today’s organisation. Inter-group relationship may
be in the form of co-operation or competition.
The co-operative relationships help the organisation in achieving its objectives. Organisational
behaviour provides means to understand and achieve co-operative group relationships through
interaction, rotation of members among groups, avoidance of win-lose situation and focussing
on total group objectives.
4. Controlling and Directing Behaviour. After understanding the mechanism of human behaviour,
managers are required to control and direct the behaviour so that it conforms to the standards
required for achieving the organisational objectives. Thus, managers are required to control
and direct the behaviour at all levels of individual interaction. Therefore, organisational
behaviour helps managers in controlling and directing in different areas such as use of power
and sanction, leadership, communication and building organisational climate favourable for
better interaction.
5. Use of Power and Sanction. The behaviours can be controlled and directed by the use of power
and sanction, which are formally defined by the organisation. Power is referred to as the
capacity of an individual to take certain action and may be utilised in many ways.
Organisational behaviour explains how various means of power and sanction can be utilised
so that both organisational and individual objectives are achieved simultaneously.
6. Leadership. Organisational behaviour brings new insights and understanding to the practice
and theory of leadership. It identifies various leadership styles available to a manager and
analyses which style is more appropriate in a given situation. Thus, managers can adopt styles
keeping in view the various dimensions of organisations, individuals and situations.
7. Communication. Communication helps people to come in contact with each other. To achieve
organisational objectives, the communication must be effective. The communication process
and its work in inter-personal dynamics have been evaluated by organisational behaviour.
8. Organisational Climate. Organisational climate refers to the total organisational situations
affecting human behaviour. Organisational climate takes a system perspective that affect human
behaviour. Besides improving the satisfactory working conditions and adequate compensation,
organisational climate includes creation of an atmosphere of effective supervision; the
opportunity for the realisation of personal goals, congenial relations with others at the work
place and a sense of accomplishment.
9. Organisational Adaptation. Organisations, as dynamic entities are characterised by pervasive
changes. Organisations have to adapt themselves to the environmental changes by making
suitable, internal arrangements such as convincing employees who normally have the tendency
of resisting any changes.
The Roles, in the Context of Organisational Behaviour, are as follows :
Managers perform four major functions such as planning, organising, directing and controlling. In
addition to these functions there are ten managerial roles, which can be defined as organised set of
behaviours identified with the position. These roles are developed by Henry Mintzberg in 1960s after
a careful study of executives at work. All these roles, in one form or other deal with people and their
behaviour. These ten managerial roles are divided into three categories. The first category called the
interpersonal roles arises directly from the manager’s position and the formal authority given to him.
The second category, the informational role arises as a direct result of the interpersonal roles and these
two categories give rise to the third category called decisional roles.
1. Interpersonal Roles. In every organisation managers spend a considerable amount of time in
interacting with other people both within their own organisations as well as outside. These
people include peers, subordinates, superiors, suppliers, customers, government officials and
community leaders. All these interactions require an understanding of interpersonal behaviour.
Studies show that interacting with people takes up nearly 80% of a manager’s time. These
interactions involve the following three major interpersonal roles:
m Figure/lead Role. Managers act as symbolic figureheads performing social or legal
obligations. These duties include greeting visitors, signing legal documents, taking
important customers to lunch, attending a subordinate’s wedding and speaking at
functions in schools and churches. All these, primarily, are duties of a ceremonial nature
but are important for the smooth functioning of an organisation.
m Leadership Role. The influence of the manager is most clearly seen in the leadership role as
a leader of a unit or an organisation. Since he is responsible for the activities of his
subordinates therefore he must lead and coordinate their activities in meeting task-related
goals and motivate them to perform better. He must be an ideal leader so that his
subordinates follow his directions and guidelines with respect and dedication.
m Liaison Role. The managers must maintain a network of outside contacts. In addition, they
need to have a constant contact with their own subordinates, peers and superiors in order
to assess the external environment of competition, social changes or changes in
governmental rules and regulations. In this role, the managers build up their own external
information system. This can be achieved by attending meetings and professional
conferences, personal phone calls, trade journals and informal personal contacts with
outside agencies.
2. Informational Roles. A manager, by virtue of his interpersonal contacts, emerges as a source of
information about a variety of issues concerning an organisation. In this capacity of information
processing, a manager executes the following three roles.
m Monitor Role. The managers are constantly monitoring and scanning their internal and
external environment, collecting and studying information regarding their organisation.
This can be done by reading reports and periodicals, interrogating their liaison contacts
and through gossip, hearsay and speculation.
m Information Disseminator Role. The managers must transmit the information regarding
changes in policies or other matters to their subordinates, their peers and to other members
of an organisation. This can be done through memos, phone calls, individual meetings
and group meetings.
m Spokesman Role. A manager has to be a spokesman for his unit and represent his unit in
either sending relevant information to people outside his unit or making some demands on
behalf of his unit.
3. Decisional Roles. A manager must make decisions and solve organisational problems on the
basis of the environmental information received. In that respect, a manager plays four important
roles.
m Entrepreneur Role. Managers, as entrepreneurs are constantly involved in improving their
units and facing the dynamic technological challenges. They are constantly on the lookout
for new ideas for product improvement or product addition. They initiate feasibility studies,
arrange capital for new products and ask for suggestions from the employees to improve
organisation. This can be achieved through suggestion boxes, holding strategy meetings
with project managers and R&D personnel.
m Conflict Handling Role. The managers are constantly involved as judge in solving conflicts
among the employees and between employees and management. Managers must anticipate
such problems and take preventive action and take corrective action once the problem
arises. These problems may involve labour disputes, customer complaints, employee
grievances, machine breakdowns, cash flow shortages and interpersonal conflicts.
m Resource Allocation Role. The managers establish priorities among various projects or
programs and make budgetary allocations to different activities of an organisation based
on these priorities.
m Negotiator Role. The managers in their negotiator role represent their organisation in
negotiating deals and agreements within and outside of an organisation. They negotiate
contracts with the unions. Sales managers may negotiate prices with prime customers.
Purchasing managers may negotiate prices with vendors.
Approaches to Organisational Behaviour

There are mainly four approaches to organisational behaviour. They are:
m Human resources approach
m Contingency approach
m Productivity approach
m Systems approach
m Human Resources Approach. The human resources approach is concerned with the growth
and development of people towards higher levels of competency, creativity and fulfillment,
because people are the central resource in any organisation. This approach help employees
become better in terms of work and responsibility and then it tries to create a climate in which
they can contribute to the best of their improved abilities. This approach is also known as
‘supportive approach’ because the manager’s primary role changes from control of employees
to providing an active support for their growth and performance.
m A Contingency Approach. A contingency approach to organisational behavior implies that
different situations require different behavioral practices for effectiveness instead of following
a traditional approach for all situations. Each situation must be analyzed carefully to determine
the significant variables that exist in order to establish the more effective practices. The strength
of this approach is that it encourages analysis of each situation prior to action. Thus, it helps to
use all the current knowledge about people in the organisation in the most appropriate manner.
m Productivity Approach. Productivity is a ratio that compares units of output with units of
input. It is often measured in terms of economic inputs and outputs. Productivity is considered
to be improved, if more outputs can be produced from the same amount of inputs. But besides
economic inputs and outputs, human and social inputs and outputs also arc important.
m Systems Approach. A system is an interrelated part of an organisation or a society that interacts
with everyone related to that organisation or society and functions as a whole. Within the
organisation ‘people’ employ ‘technology’ in performing the ‘task’ that they are responsible
for, while the ‘structure’ of the organisation serves as a basis for coordinating all their different
activities. The systems view emphasizes the interdependence of each of these elements within
the organisation, if the organisation as a whole is to function effectively. The other key aspect of
the systems view of organisation is its emphasis on the interaction between the organisation
and its broader environment, which consists of social, economic, cultural and political
environment within which they operate.
Contemporary Organisational Behaviour

1. A Separate Field of Study-Organisational behaviour can be treated as a distinct field of study.
It is yet to become a science. Now efforts are being made to synthesize principles, concepts and
processes in this field of study.
2. Interdisciplinary Approach-Organisational behaviour is basically an interdisciplinary
approach. It draws heavily from other disciplines like psychology, sociology and anthropology.
Besides, it also takes relevant things from economics, political science, law and history.
Organisational behaviour integrates the relevant contents of these disciplines to make them
applicable for organisational analysis.
3. An Applied Science. The basic objective of organisational behaviour is to make application of
various researches to solve the organisational problems, particularly related to the human
behavioural aspect.
4. Normative and Value Centered. Organisational behaviour is a normative science. A normative
science prescribes how the various findings of researches can be applied to get organisational
results, which are acceptable to the society. Thus, what is acceptable by the society or individuals
engaged in an organisation is a matter of values of the society and people concerned.
5. Humanistic and Optimistic. Organisational behaviour focuses the attention on people from
humanistic point of view. It is based on the belief that needs and motivation of people are of
high’ concern. Further, there is optimism about the innate potential of man to be independent,
creative, predictive and capable of contributing positively to the objectives of the organisation.
6. Oriented towards Organisational Objectives. Organisational behaviour is oriented towards
organisational objectives. In fact, organisational behaviour tries to integrate both individual
and organisational objectives so that both are achieved simultaneously.
7. A Total System Approach. An individual’s behaviour can be analyzed keeping in view his
psychological framework, interpersonal-orientation, group influence and social and cultural
factors; Thus, individual’s nature is quite complex and organisational behaviour by applying
systems approach tries to find solutions for this complexity.
Nature of Organisational Behaviour

Each individual brings to an organisation a unique set of personal characteristics, experiences from
other organisation, the environment surrounding the organisation and they also posses a personal
background. In considering the people working in an organisation, organisational behaviour must
look at the unique perspective that each individual brings to the work setting.
But individuals do not work in isolation. They come in contact with other individuals and the
organisation in a variety of ways. Points of contact include managers, co-workers, formal policies and
procedures of the organisation, and various changes implemented by the organisation. Over time, the
individual, too, changes, as a function of both the personal experiences and the organisation. The
organisation is also affected by the presence and eventual absence of the individual. Clearly, the study
of organisational behaviour must consider the ways in which the individual and the organisation
interact.
An organisation, characteristically, exists before a particular person joins it and continues to exist
after he leaves it. Thus, the organisation itself represents a crucial third perspective from which to
view organisational behaviour.
Need for Studying Organisational Behaviour

The rules of work are different from the rules of play. The uniqueness of rules and the environment of
organisations forces managers to study organisational behaviour in order to learn about normal and
abnormal ranges of behaviour.
More specifically, organisational behaviour serves three purposes:
m What causes behaviour?
m Why particular antecedents cause behaviour?
m Which antecedents of behaviour can be controlled directly and which are beyond control?
A more specific and formal course in organisational behaviour helps an individual to develop
more refined and workable sets of assumption that is directly relevant to his work interactions.
Organisational behaviour helps in predicting human behaviour in the organisational setting by drawing
a clear distinction between individual behaviour and group behaviour.
Organisational behaviour does not provide solutions to all complex and different behaviour puzzles
of organisations. It is only the intelligent judgement of the manager in dealing with a specific issue
that can try to solve the problem. Organisational behaviour only assists in making judgements that are
derived from tenable assumptions; judgement that takes into account the important variables
underlying the situation; judgement that are assigned due recognition to the complexity of individual
or group behaviour; judgement that explicitly takes into account the managers own goals, motives,
hang-ups, blind spots and weaknesses.
Levels of Analysis
Organisational behaviour can be viewed from different perspectives or levels of analysis. At one level,
the organisation can be viewed as consisting of individuals working on tasks in the pursuit of the
organisational goals. A second level of analysis focuses upon the interaction among organisational
members as they work in’ teams, groups and departments. Finally, organisational behaviour can be
analysed from the perspective of the organisation as a whole.
m Organisation at the Individual Level. Organisational behaviour can be studied in the
perspective of individual members of the organisation. This approach to organisational
behaviour draws heavily on the discipline of psychology and explains why individuals behave
and react the way they do to different organisational policies, practices and procedures. Within
this perspective, psychologically based theories of learning, motivation, satisfaction and
leadership are brought to bear upon the behaviour and performance of individual members of
an organisation. Factors such as attitudes, beliefs, perceptions and personalities are taken into
account and their impact upon individuals’ behaviour and performance on the job is studied.
m Organisation at the Group Level. People rarely work independently in organisations; they
have to necessarily work in coordination to meet the organisational goals. This frequently
results in people working together in teams, committees and groups. How do people work
together in groups? What factors determine whether group will be cohesive and productive?
What types of tasks could be assigned to groups? These are some of the questions that can be
asked about the effective functioning of groups in organisations. An important component of
organisational behaviour involves the application of knowledge and theories from social
psychology to the study of groups in organisations.
m Organisation at the Organisational Level. Some organisational behaviour researchers take the
organisation as a whole as their object of study. This macro perspective on organisational
behaviour draws heavily on theories and concepts from the discipline of ‘sociology’. Researchers
seek to understand the implications of the relationship between the organisation and its
environment for the effectiveness of the organisation. Emphasis is placed upon understanding
how organisational structure and design influences the effectiveness of an organisation. Other
factors such as the technology employed by the organisation, the size of the organisation and
the organisation’s age are also examined and their implications for effective organisational
functioning are explored.
The Nature of Organisation

The nature of an organisation can be understood with the help of the description of following two
points:
1. Social System. A system is a group of independent and interrelated elements comprising a
unified whole. In context with an organisation, the individuals of a society are considered as a
system organised by a characteristic pattern of relationships having a distinctive culture and
values. It is also called social organisation or social structure. It can be further divided into
following categories:
Feudal system. This is a social system, which is developed in Europe in the 8th Century. A
political and economic system based on the holding of land and relation of lord to vassal and
characterized by homage, legal and military service of tenants, and forfeiture.
Patriarchate. This is social system, in which a male is considered to be the family head and title
or surname is traced through his chain. In other words, power lies in his hands.
Matriarchate. This is social system, in which a female is considered to be the family head and
title or surname is traced through her chain. In other words, power lies in her hands.
Meritocracy. This is a social system, in which power vests in the hands of the person with
superior intellects.
Class Structure. This is a social system of different classes with in a society.
Segregation. This is a social system, which provides separate facilities for minority groups of
a society.
2. Mutual Interest. Organisational relationships are most likely to be strong if different groups
can negotiate strategies. This can be defined as the interests that are common to both the parties
and are related to the accomplishment of their respective goals. This space for sharing ideas
builds trust. Individuals who have shared mutual interests are likely to make their organisation
the strongest, because even though the views are different they have a shared concern for
similar objectives. It is important for the individuals to think about their issues openly, and to
incorporate the perspectives of their colleagues. This helps to build sustainable and harmonious
activities that can operate in the mutual direct interests of the organisation.
Holistic Organisational Behaviour. When the above six concepts of organisational behaviour
are considered together, they provide a holistic concept of the subject. Holistic organisational
behaviour interprets people-organisation relationships in terms of the whole person, whole
group, whole organisation and whole social system. Thus, the blending of nature of people
and organisation results in an holistic organisational behaviour.
Models of Organisational Behaviour

Organisations have undergone tremendous change in the behaviour of their employee’s. Earlier
employers had no systematic program for managing their employees instead their simple rules served
as a powerful influence on employees. However, today increasing many organisations are
experimenting with new ways to attract and motivate their employees.
Concept of Organisational Behaviour System

Organisations achieve their goals by creating, communicating and operating an organisational
behaviour system. Organisational behaviour system defines organisational structure and culture and
explains their impact on employees.
These systems exist in every organisation, but sometimes in varying forms. They have a greater
chance of being successful, though, if they have been consciously created, regularly examined and
updated to meet new and emerging conditions. The primary advantage of organisational behaviour
system is to identify the major human and organisational variables that affect organisational outcomes.
For some variables managers can only be aware of them and acknowledge their impact whereas for
other variables, managers can exert some control over them. The outcomes are measured in terms of
quantity and quality of products and services, level of customer service, employee satisfaction and
personal growth and development.
Four Models of Organisational Behaviour

m Autocratic Model. In an autocratic model’, the manager has the power to command his
subordinates to do a specific job. Management believes that it knows what is best for an
organisation and therefore, employees are required to follow their orders. The psychological
result of this model on employees is their increasing dependence on their boss. Its main weakness
is its high human cost.
m Custodial Model. This model focuses better employee satisfaction and security. Under this
model organisations satisfy the security and welfare needs of employees. Hence, it is known as
custodian model. This model leads to employee dependence on an organisation rather than on
boss. As a result of economic rewards and benefits, employees are happy and contented but
they are not strongly motivated.
m Supportive Model. The supportive model depends on ‘leadership’ instead of power or money.
Through leadership, management provides a climate to help employees grow and accomplish
in the interest of an organisation. This model assumes that employees will take responsibility,
develop a drive to contribute and improve them if management will give them a chance.
Therefore, management’s direction is to ‘Support’ the employee’s job performance rather than
to ‘support’ employee benefit payments, as in the custodial approach. Since management
supports employees in their work, the psychological result is a feeling of participation and task
involvement in an, organisation.
m Collegial Model. The term ‘collegial’ relates to a body of persons having a common purpose. It
is a team concept. Management is the coach that builds a better team. The management is seen
as joint contributor rather than as a boss. The employee response to this situation is
responsibility. The psychological result of the collegial approach for the employee is ‘self-
discipline’. In this kind of environment employees normally feel some degree of fulfillment and
worthwhile contribution towards their work. This results in enthusiasm in employees’
performance.
Limitations of Organisational Behaviour

m Organisational behaviour cannot abolish conflict and frustration but can only reduce them. It
is a way to improve but not an absolute answer to problems.
m It is only one of the many systems operating within a large social system.
m People who lack system understanding may develop a ‘behavioural basis’, which gives them
a narrow view point, i.e., a tunnel vision that emphasizes on satisfying employee experiences
while overlooking the broader system of an organisation in relation to all its public.
m The law of diminishing returns also operates in the case of organisational behaviour. It states,
that at some point increase of a desirable practice produce declining returns and sometimes,
negative returns. The concept implies that for any situation there is an optimum amount of a
desirable practice. When that point is exceeded, there is a decline in returns. For example, too
much security may lead to less employee initiative and growth. This relationship shows that
organisational effectiveness is achieved not by maximizing one human variable but by working
all system variables together in a balanced way.
m A significant concern about organisational behaviour is that its knowledge and techniques
could be used to manipulate people without regard for human welfare. People who lack ethical
values could use people in unethical ways.
Future of Organisational Behaviour

The growing interest in organisational behaviour stems from both a philosophical desire by many
people to create more humanistic work places and a practical need to design more productive work
environments. As a result of these forces, organisational behaviour is now a part of the curriculum of
almost all courses including engineering and medical.
The field of organisational behaviour has grown in depth and breadth. The keys to its past and
future success revolve around the related processes of theory development, research and managerial
practice.
Although organisational behaviour has certain limitations, it has a tremendous potential to
contribute to the advancement of civilization. It has provided and will provide much improvement in
the human environment. By building a better climate for people, organisational behaviour will release
their creative potential to solve major social problems. In this way organisational behaviour will
contribute to social improvements. Improved organisational behaviour is not easy to apply but
opportunities are there. It should produce a higher quality of life in which there is improved harmony
within each individual, among people and among the organisation.
GROUP DYNAMICS
A group consists of a number of individuals working together for a common objective. Groups have
significant influence on an organisation and are inseparable from an organisation. They are useful for
the organisation as they form foundation of human resources. The study of group behaviour is essential
for an organisation to achieve its goals. Individual and group behaviour vary from each other. In 1920,
Elton Mayo and his associates conducted the Hawthorne experiments and came to know that the
group behaviour has great impact on productivity. The importance of group behaviour has been
realized from time to time.
Human behaviour consists of individuals, who move in groups. The knowledge of group behaviour
as well as individual behaviour is necessary for a manager. He must understand group psychology
and should also understand individual behaviour in the context of group behaviour. The group in
which he moves influences individual work, job satisfaction and effective performance.
Definition of a Group
A group is a two or more individual who interact regularly with each other to accomplish a common
purpose or goal.
According to Marvin Shaw, “a group comprises, of two or more persons who interact with one
another in such a manner that each person influences and is influenced by each other person’.
The key parts of this definition are the concepts of interaction and influence, which also limit
the size of the group. It is difficult for members to interact sufficiently in a large group.
Groups or work teams are the primary tools used by managers. Managers need groups to co-
ordinate individual behaviour in order to reach the organisational goals. Groups can make a
manager’s job easier because by forming a group, he need not explain the task to each and every
individual. A manager can easily co-ordinate with the work of an individual by giving the group a
task and allow them to co-ordinate with each other. But for a group to work effectively, the interactions
between its members should be productive. Therefore, managers must pay attention to the needs of
individuals.
Need for a Group

The reasons for the need of groups are as follows:
m Management of modern organisations make mutual efforts to introduce industrial democracy
at workplace. They use project teams and work committees where workers get due recognition.
They willingly participate in decision-making.
m The tasks in modern industries are becoming more complex, tedious arid of repetitive nature.
Work committees, work groups and teams are formed to monitor the work. They also make
the environment at workplace more lively.
m Groups help in making participative management more effective.
m Groups of all kinds and types help by cooperating in all the matters related to production
and human relations to work effectively in the organisation.
m An individual cannot perform each and every task. Group efforts are required for its
completion. For example, building a ship, making of a movie, construction of a fly-over, etc.
All these require coordinated and unified efforts of many individuals, working in a group.
m A group can judge in a better way as compared to an individual.
m While accomplishing tasks, all members of a group together use their creative and innovative
ideas than a single individual.
m In a group, individuals communicate with each other, discuss their work performances and
take suggestions from each other to make it better.
m Group efforts affect an individual, his attitude and behaviour.
m Group has the ability to satisfy the needs of its members.
Types of Groups
In an organisation, there are three types of groups, which are as follows:
m Functional or formal groups. Functional groups are the groups formed by the organisation
to accomplish different organisational purposes. According to A L Sercombe, “a formal group
is said to be any social arrangement in which the activities of some persons are planned by
others to achieve a common purpose”. These groups are permanent in nature. They have to
follow rules, regulations and policy of the organisation. A formal organisational group
includes departments such as the personnel department, the advertising department, the
quality control department and the public relations department.
m Task group. Tasks groups are the groups formed by an organisation to accomplish a narrow
range of purposes within a specified time. These groups are temporary in nature. They also
develop a solution to a problem or complete its purpose. Informal committees, task forces and
work teams are included in task groups. The organisation after specifying a group membership,
assigns a narrow set of purposes such as developing a new product, evaluating a proposed
grievance procedure, etc.
m Informal group. Informal groups are the groups formed for the purposes other than the
organisational goals. Informal groups form when individuals are drawn together by friendship,
by mutual interests or both. These groups are spontaneous. According to Keith David, “the
network of persons and social relations which is not established or required forms an informal
organisation”. These are the groups formed by the employees themselves at the workplace
while working together. The organisation does not take any active interest in their formation.
Informal groups are very effective and powerful. These groups work as an informal communication
network forming a part of the grapevine to the organisations. They are also like a powerful force,
which an organisation cannot avoid. Some managers consider them to be harmful to the interest of an
organisation. They suspect their integrity and consider as a virtual threat. Some managers do not
consider them as threat and seek the help of group members in getting the organisational task
accomplished. Informal groups are of following types:
m Interest group. Interest groups are the groups formed to attain a common purpose. Employees
coming together for payment of bonus, increase in salary, medical benefit and other facilities
are the examples of interest groups.
m Membership group. Membership groups are the groups of individuals’ belonging to the same
profession and knowing each other. For example, teachers of the same faculty in a university.
m Friendship group. Friendship groups are the groups of individuals belonging to same age
group, having similar views, tastes and opinions. These groups can also be formed outside the
plant or office and can be in the form of clubs and associations.
o Reference group. Reference groups are the group where individuals shape their ideas, beliefs,
values etc. They want support from the group.
Group Formation and Development

Groups can form when individuals with similar goals and motives come, together. Groups are formed
voluntarily. The individuals of a group can join and leave the group any time and they can also
change their tasks. Hence, understanding how groups form and develop is important for managers.
There are certain motives because of which, the individuals join a group, which are as follows:
m Personal motives to join groups. Individuals also choose to join informal or interest groups for
unimportant reasons. Since joining these groups is voluntary, various personal motives affect
membership.
m Interpersonal attraction. Individuals conic together to form informal or interest group, as they
are also attracted to each other. The factors that contribute to interpersonal attraction are sex,
similar attitudes, personality and economic standing. The closeness of group members may
also be an important factor.
m Need for affiliation. Another reason for individuals to join groups is to satisfy their need for
attachment. Retired/old aged individuals join groups to enjoy the companionship of other
individuals in similar situation.
m Instrumental benefits. Group membership sometimes also helpful in providing other benefits
to an individual. For example, a manager might join a Rotary/ Lions club if he feels that being
a member of this club will lead to important and useful business contacts.
m Interest in-group activities. Individuals may also be motivated to join an informal or interest
group because the activities of the group appeal to them. Playing tennis, discussing current
events or contemporary literature, all these are group activities that individuals enjoy.
m Organisational motives to join groups. Organisations form functional and task groups because
such groups help the organisation in structuring and grouping the organisational activities
logically and efficiently.
m Support for group goals. The individuals may also be motivated goals by the other group
members to join. For example, a club, which is dedicated to environmental conservation, may
motivate individuals to join. Individuals join groups, such as these in order to donate their
money and time to attain the goals they believe in and to meet other individuals with similar
values.
Stages of Development
Members of new group are unfamiliar with one another’s personalities and hesitant in their interac-
tions. The new group must pass of development. These different stages of group development are
explained as follows:
Mutual Acceptance. The very first stage of a group development is called “Mutual Acceptance”.
During this stage, the members of the group get familiar with one another and check, which inter-
personal behaviour is acceptable and which is unacceptable by the other members of the group. This
helps all the members of a group to know each other better and helps the group to move to the next
stage easily.
Communication and Decision-making. The second stage of group development is “Communication
and Decision-making’’. During this stage, group members share their opinions and formulate the
group’s goals. Through communication and decision-making, the structure becomes clear and the
group moves to the third stage.
Motivation and Productivity. The third stage is “Motivation and Productivity”, which is characterized
by a shared acceptance among members of what the group is trying to do. Each person recognizes and
accepts his role as well as to accept and to understand the roles to others. Members also become more
comfortable with each other and develop a sense of group identity and unity.
Control and Organisation. The fourth stage is “Control and Organisation”, in which the members
perform the roles they have accepted and direct their group efforts toward goal attainment. In reality,
this developmental sequence varies from group to group, depending on the time, personal characteristics
of group members and frequency of interaction.
Characteristics of Mature Groups

As groups pass through the stages of development to maturity, they begin show signs of the following
four characteristics: a role structure, behavioural norms, cohesiveness and informal leadership.
m Role Structures. A role is the part that an individual plays in a group to reach its goals. Some
individuals are leaders, some focus on the group’s task; some interact with other groups and so
on. Role structure is the set of defined roles and interrelationships among those roles that the
group members define and accept. The failure in role development result in role ambiguity, role
conflict and role overload. Managers have to take steps to avoid role ambiguity, role conflict
and role overload.
m Behavioural norms. Although informal groups do not have any specific goals to accomplish,
but they must have some goals over a period of time. These goals are temporary and can be
changed in accordance with the needs of the group members. The goals can be achieved
effectively depending on the following factors:
n The extent of cooperation with management.
n Maintenance of an efficient communication system.
n Satisfaction of the needs of group members.
m Informal leadership. Each informal group has one or more leaders. These leaders come forward
on the basis of acceptance of all the group members. Every informal group has one primary
leader apart from the secondary: leaders. The primary leader has more influence on the group
members than the secondary leaders.
m Cohesiveness. Cohesiveness is defined as the attractiveness of group members towards the
group. It also emphasizes on the group’s ability to satisfy its members needs. It, therefore, helps
the group members to work more consistently and make greater contribution to the achievement
of the organisational goals. It is also psychologically more satisfying to all of its members.
According to Cartwright there are four principal consequences of cohesiveness, which are as
follows:
n Ability of a group to retain its members.
n Power of the group to influence its members.
n Degree of participation and loyalty of members.
n Feeling of security on the part of the members.
Group Norms
Norms refer to group behaviour standard, beliefs, attitudes, traditions and expectations shared by
group members. According to Michael Argyle, “Group norms are rules or guidelines of accepted
behaviour which are established by a group and used to monitor the behaviour of its members”. They
are framed to achieve objectives of the group. They can be social and fair in nature. Norms define
boundaries between acceptable and unacceptable behaviour. They make the members to identify
themselves with the group. Norms play a significant role in disciplining the members of a group to
make them to work regularly and properly. This reduces absenteeism and employee turnover. The
members of the group are expected follow the norms strictly. This will make the group more organised
Types of Group Norms
There are two types of group norms, which are as follows:
m Behaviour norms. Behaviour norms are rules that standardise how individuals act while
working on a day-to-day basis. Examples are : “do not come to committee meetings unless you
have read the reports to be discussed”, “greet every customer with a smile’’, etc. These norms
tend to reflect motivation, commitment to the organisation and therefore result in high level of
performance.
m Performance norms. Performance norms are rules that standardize employee output and
number of hours worked.
Reasons for Strong Enforcement of Norms

Groups don’t have the time or energy, to regulate each and every action of the group members. Only
those behaviours that sound to-be important by group members should be brought under control.
Groups, like individuals, try to operate in such a way that they maximize their chances of task success
and minimize their chances of task failure. Groups want to facilitate their performance and overcome
barriers to reach their goals. Moreover, groups want to increase morale and prevent any interpersonal
discomfort to their members. Norms that will help groups meet these aims of performing successfully
and keeping morale high are likely to be strongly enforced.
Conditions where group norms will be strongly enforced are as follows:
m If the norms facilitate group success or ensure group survival.
m If the norms simplify or predict regarding the behaviour which is expected from group members.
m If the norms emphasize the roles of specific members within a group and
m If the norms help the group to solve the inter-personal problems themselves.
Uniqueness of Group Norms. The norms of one group cannot be easily mixed with another group.
Some differences are primarily due to the difference in structure of the groups. However, even very
similar work groups may develop different norms. The members of one group may be friendly with
their supervisor whereas those of another group may not.
Norm Conformity. Norms have the power to force a certain degree of conformity. There are several
factors consist of norm conformity, which are as follows:
m Some groups may exert more pressure for conformity than others because of the personalities of
the group members.
m The history of the group and its members also plays a part in conformity. For example, if the
group has always been successful by following certain behaviours, new group members are
also asked to follow the same. If the group was not successful in the past, a new group member
may have greater freedom to exhibit other behaviours.
Meaning and Definitions of Group Cohesiveness
m According to Rensis Likert, “cohesiveness is the attractiveness of the members towards the
group or resistance of the members leaving it”. It refers to the attachment of members with the
group.
m According to K. Ashwathappa, “cohesiveness is understood as the extent of liking each member
has towards others and how far everyone wants to remain as the member of the group”.
Attractiveness is the key to cohesiveness. Cohesiveness is the extent to which group members are
loyal and committed to the group and to each other. In a highly cohesive group, the members work
well together, support and trust one another and are generally effective at achieving their chosen
goals.
A group that lacks cohesiveness will not be very much coordinated. Its members will not support
one another and they may face difficulty in reaching their goals.
Managers should develop an understanding of the factors that increase and reduce group
cohesiveness.
Advantages of Group Cohesiveness

The advantages of group cohesiveness are as follows:
m The members of cohesive groups have high morale.
m The members don’t have conflicting views, which decreases the chances of in clash among the
views of group members at the workplace or elsewhere.
m Individuals of cohesive groups have no anxiety at the workplace.
m Members of cohesive groups are regular at their work.
m Cohesiveness increases productivity.
m Organisations gain from the members of cohesive group because they communicate better they
share ideologies and respect opinions of fellow employees.
Strength of Group Weaknesses of Group

Decision Making Decision Making
l Generates more complete l More time consuming

information and knowledge
l Conformity pressures
l Offer increased diversity in groups
of views
l Discussion can be dominated
l Generates higher-quality by one or few members
decisions
l Decisions suffer from
l Leads to increased acceptance ambiguous responsibility
of a solutions
MOTIVATION
The term motivation is derived from the word ‘motive’, which means an active form of a desire, craving
or need that must be satisfied. Or in other words motive is anything that initiates or sustains activity.
Motivation is the key to organisational effectiveness. The manager in general has to get the work done
through others. These ‘others’ are human resources who need to be motivated to attain organisational
objectives.
According to E.F.L. Brech, “Motivation is a general inspirational process which gets the members
of the team to pull their weight effectively, to give their loyalty to the group, to carry out properly the
tasks that they have accepted and generally to play an effective part in the job that the group has
undertaken. Motivation is the process of steering a person’s inner derives and actions towards certain
goals and committing his energies to achieve these goals. It involves a chain reaction starting with felt
needs, resulting in motives which give rise to tension (unfulfilled desires) which causes action towards
goals. It is the process of stimulating people to strive willingly towards the achievement of
organisational goals.
Definition
m According to Encyclopedia of Management, “Motivation refers to the degree of readiness of an
organism to pursue some designated goals and implies the determination of the nature and
locus of force inducing a degree of readiness.”
m According to George R. Terry, “Motivation is the desire within an individual that stimulates
him or her to action.”
m According to Robert Dubin, it is “the complex of forces starting and keeping a person at work
in an organisation”. Par. [M.P.S. II] Viteles defines motivation as “an unsatisfied need which
creates a state of tension or disequilibrium, causing the individual to move in a goal directed
pattern towards restoring a state of equilibrium, by satisfying the need.”
On the basis of above definitions, the following observations can be made regarding motivation:
m Motivation may be positive as well as negative. Positive motivation includes incentives, rewards
and other benefits while negative motivation implies some punishment, fear, use of force etc.
m The motivation procedure contributes to and boosts up the morale of the employees. A high
degree of motivation may lead to high morale.
m A highly motivated employee works more efficiently and his level of production tends to be
higher than others.
m Motivation originates from the needs and wants of an individual. It is a tension of lacking
something in his mind, which forces him to work more efficiently.
m Motivation is also a process of stimulating and channelizing the energy of an individual for
achieving set goals.
m Motivation is an inner psychological force, which activates and compels the person to behave
in a particular manner.
m The motivation process is influenced by personality traits, learning abilities, perception and
competence of an individual.
m Motivation also plays a crucial role in determining the level of performance. Highly motivated
employees get higher satisfaction, which may lead to higher efficiency.
m Motivating force and its degree, may differ from individual to individual depending on his
personality, needs, competence and other factors.
m The process of Motivation helps the manager in analysing and understanding human behaviour
and finding but how an individual can be inspired to produce desirable working behaviour.
Nature of Motivation
1. Motivation is a Personal and Internal Feeling.
2. Motivation Produces Goal - directed Behaviour.
3. Motivation is a Continuous Process.
4. Motivation is Complex.
5. Motivation is System-oriented.
6. Motivation can be Eithcs Positive or Negative.
7. Motivation is Different from Job satisfaction.
Features of Motivation
The following are the features of motivation:
m It is an internal feeling and forces a person to action.
m It is a continuous activity.
m It varies from person to person and from time to time.
m It may be positive or negative.
Importance of Motivation
Motivation is an important part of managing process. A team of highly qualified and motivated
employees is necessary for achieving objectives of an organisation because of the following reasons:
m Motivated employees make optimum use of available resources for achieving objectives.
m Motivation is directly related to the level of efficiency of employees.
m Motivated employees make full use of their energy and other abilities to raise the existing level
of efficiency.
m Motivated employees make goal-directed efforts. They are more committed and cooperative for
achieving organisational objectives.
m Motivated employees are more loyal and sincere to an organisation. These factors help to
reduce absenteeism and labour turnover.
m Motivation is considered as a backbone of good industrial relations.
m Effectively motivated employees get more job satisfaction and possess high morale.
m Motivation also helps in improving the image of an organisation.
The motivation process begins with identification of individual needs. For example, when an
employee feels underpaid then what, then he tries to fulfil his needs by asking for a raise or by working
harder to earn a raise or by seeking a new job. He then chooses to pursue one or more of these options
for instance, working harder while simultaneously looking for a job. If his hard work resulted in a pay
rise, he probably feels satisfied and will continue to work hard. But if no raise has been provided he is
likely to try another option. Since people have many different needs, the satisfaction of one need or set
of needs is likely to give rise to the identification of other needs. Thus, the cycle of motivation is
constantly repeated.
Understanding human motivation is crucial for managing people. Extensive research has been
performed to find out what makes people work and how to motivate them. This includes managers,
social scientists, behaviourists and psychologists. A number of theories have been developed, even
though there is no universally acceptable motivation theory. Understanding these theories facilitates
the managers to get a better insight into the human behaviour.
Need-based Theories to Motivation

Need-based theories try to answer the question, “what factor(s) motivate people to choose certain
behaviors?” Some of the widely known need-based theories are as follows:
(a) Maslow’s Hierarchy of Needs

Maslow Abraham proposed his theory in the 1940s. This theory, popularly known as the Hierarchy of
Needs assumes that people are motivated to satisfy five levels of needs: physiological, security,
belongingness, esteem and self-actualization needs. The figure shows Maslow’s hierarchy of
needs.
Self-Actualization
Needs
Esteem
Needs
Social
Needs
Security &
Safety Needs
Physiological
Needs
Maslow’s Hierarchy of Needs

Maslow suggested that the five levels of needs are arranged in accordance with their importance,
starting from the bottom of the hierarchy. An individual is motivated first and foremost to satisfy
physiological needs. When these needs are satisfied, he is motivated and ‘moves up’ the hierarchy to
satisfy security needs. This ‘moving up’ process continues until the individual reaches the self-
actualization level.
1. Physiological needs - represents the basic issues of survival such as food, sex, water and air. In
organisational settings, most physiological needs are satisfied by adequate wages and by the
work environment itself, which provides employees with rest rooms, adequate lighting,
comfortable temperatures and ventilation.
2. Security or safety needs - refer to the requirements for a secure physical and emotional
environment. Examples include the desire for adequate housing and clothing, the need to be
free from worry about money and job security and the desire for safe working conditions.
Security needs are satisfied for people in the work place by job continuity, a grievance resolving
system and an adequate insurance and retirement benefit package.
3. Belonging or social needs - are related to the social aspect of human life. They include the need
for love and affection and the need to be accepted by one’s peers. For most people these needs
are satisfied by a combination of family and community relationships and friendships on the
job. Managers can help to ensure the satisfaction of these important needs by allowing social
interaction and by making employees feel like part of a team or work group.
4. Esteem needs - actually comprise of two different sets of needs:
The need for a positive self-image and self-respect.
The need for recognition and respect from others.
Organisations can help address esteem needs by providing a variety of external symbols of
accomplishment such as job titles and spacious offices. At a more fundamental level,
organisations can also help satisfy to esteem needs by providing employees with challenging
job assignments that can induce a sense of accomplishment.
5. Self-actualization - At the top of the hierarchy are those needs, which Maslow defines the self-
actualization needs. These needs involve realizing one’s potential for continued: growth and
individual development. Since these needs are highly individualized and personal, self-
actualization needs are perhaps the most difficult for managers to address. Therefore, an
employee should try to meet these needs on his own end. However, an organisation can help
his employee by creating a climate for fulfillment of self-actualization needs. For instance, an
organisation can help in fulfillment of these needs by encouraging employee’s participation in
decision-making process and by providing them with an opportunity to learn new things
about their jobs and organisation. This process of contributing to actual organisational
performance helps employees experience personal growth and development associated with
self-actualizing.
Maslow’s concept of the need hierarchy possesses a certain intuitive logic and has been accepted
universally by managers. But research has revealed several shortcomings of the theory such as some
research has found that five levels of needs are not always present and that the order of the levels is not
always the same as assumed by Maslow. Moreover, it is difficult for organisations to use the need
hierarchy to enhance employee motivation.
(b) ERG Theory
Existence
Growth
To bring Maslow’s need hierarchy theory of motivation in synchronization with empirical research,
Clayton Alderfer redefined it in his own terms. His rework is called as ERG theory of motivation. He
recategorized Maslow’s hierarchy of needs into three simpler and broader classes of needs:
m Existence needs. These include need for basic material necessities. In short, it includes an
individual’s physiological and physical safety needs.
m Relatedness needs. These include the aspiration individual’s have for maintaining significant
interpersonal relationships (be it with family, peers or superiors), getting public fame and
recognition. Maslow’s social needs and external component of esteem needs fall under this
class of need.
m Growth needs. These include need for self-development and personal growth and advancement.
Maslow’s self-actualization needs and intrinsic component of esteem needs fall under this
category of need.
The significance of the three classes of needs may vary for each individual.
Difference between Maslow Need Hierarchy Theory and Alderfer’s ERG Theory
m ERG Theory states that at a given point of time, more than one need may be operational.
m ERG Theory also shows that if the fulfillment of a higher-level need is subdued, there is an
increase in desire for satisfying a lower-level need.
m According to Maslow, an individual remains at a particular need level until that need is
satisfied. While according to ERG theory, if a higher- level need aggravates, an individual may
revert to increase the satisfaction of a lower- level need. This is called frustration- regression
aspect of ERG theory. For instance when growth need aggravates, then an individual might be
motivated to accomplish the relatedness need and if there are issues in accomplishing
relatedness needs, then he might be motivated by the existence needs. Thus, frustration/
aggravation can result in regression to a lower-level need.
m While Maslow’s need hierarchy theory is rigid as it assumes that the needs follow a specific
and orderly hierarchy and unless a lower-level need is satisfied, an individual cannot proceed
to the higher-level need; ERG Theory of motivation is very flexible as he perceived the needs as
a range/variety rather than perceiving them as a hierarchy. According to Alderfer, an individual
can work on growth needs even if his existence or relatedness needs remain unsatisfied. Thus,
he gives explanation to the issue of “starving artist” who can struggle for growth even if he is
hungry.
(c) The Dual–Structure Approach to Motivation /Herzberg two Factors Theory of
Motivation
In 1959, Frederick Herzberg, a behavioral scientist proposed a two-factor theory or the motivator-
hygiene theory. According to Herzberg, there are some job factors that result in satisfaction while there
are other job factors that prevent dissatisfaction. According to Herzberg, the opposite of “Satisfaction”
is “No satisfaction” and the opposite of “Dissatisfaction” is “No Dissatisfaction”.
FIGURE Herzberg’s view of satisfaction and dissatisfaction.

Herzberg classified these job factors into two categories :
1. Hygiene factors. Hygiene factors are those job factors which are essential for existence of
motivation at workplace. These do not lead to positive satisfaction for long-term. But if these
factors are absent / if these factors are non-existent at workplace, then they lead to dissatisfaction.
In other words, hygiene factors are those factors which when adequate / reasonable in a job,
pacify the employees and do not make them dissatisfied. These factors are extrinsic to work.
Hygiene factors are also called as dissatisfies or maintenance factors as they are required to
avoid dissatisfaction. These factors describe the job environment / scenario. The hygiene factors
symbolized the physiological needs which the individuals wanted and expected to be fulfilled.
Hygiene factors include:
m Pay. The pay or salary structure should be appropriate and reasonable. It must be equal
and competitive to those in the same industry in the same domain.
m Company Policies and administrative policies. The company policies should not be too
rigid. They should be fair and clear. It should include flexible working hours, dress code,
breaks, vacation, etc.
m Fringe benefits. The employees should be offered health care plans (mediclaim), benefits for
the family members, employee help programmes, etc.
m Physical Working conditions. The working conditions should be safe, clean and hygienic.
The work equipments should be updated and well-maintained.
m Status. The employees’ status within the organisation should be familiar and retained.
m Interpersonal relations. The relationship of the employees with his peers, superiors and
subordinates should be appropriate and acceptable. There should be no conflict or
humiliation element present.
m Job Security. The organisation must provide job security to the employees.
2. Motivational factors. According to Herzberg, the hygiene factors cannot be regarded as
motivators. The motivational factors yield positive satisfaction. These factors are inherent to
work. These factors motivate the employees for a superior performance. These factors are called
satisfiers. These are factors involved in performing the job. Employees find these factors
intrinsically rewarding. The motivators symbolized the psychological needs that were perceived
as an additional benefit. Motivational factors include:
m Recognition. The employees should be praised and recognized for their accomplishments
by the managers.
m Sense of achievement. The employees must have a sense of achievement. This depends on
the job. There must be a fruit of some sort in the job.
m Growth and promotional opportunities. There must be growth and advancement
opportunities in an organisation to motivate the employees to perform well.
m Responsibility. The employees must hold themselves responsible for the work. The managers
should give them ownership of the work. They should minimize control but retain
accountability.
m Meaningfulness of the work. The work itself should be meaningful, interesting and
challenging for the employee to perform and to get motivated.
(d) McGregor Theory X and Theory Y
In 1960, Douglas McGregor formulated Theory X and Theory Y suggesting two aspects of human
behavior at work, or in other words, two different views of individuals (employees): one of which is
negative, called as Theory X and the other is positive, so called as Theory Y. According to McGregor,
the perception of managers on the nature of individuals is based on various assumptions.
Assumptions of Theory X
m An average employee intrinsically does not like work and tries to escape it whenever possible.
m Since the employee does not want to work, he must be persuaded, compelled, or warned with
punishment so as to achieve organisational goals. A close supervision is required on part of
managers. The managers adopt a more dictatorial style.
m Many employees rank job security on top, and they have little or no aspiration/ ambition.
m Employees generally dislike responsibilities.
m Employees resist change.
m An average employee needs formal direction.
Assumptions of Theory Y
m Employees can perceive their job as relaxing and normal. They exercise their physical and
mental efforts in an inherent manner in their jobs.
m Employees may not require only threat, external control and coercion to work, but they can use
self-direction and self-control if they are dedicated and sincere to achieve the organisational
objectives.
m If the job is rewarding and satisfying, then it will result in employees’ loyalty and commitment
to organisation.
m An average employee can learn to admit and recognize the responsibility. In fact, he can even
learn to obtain responsibility.
m The employees have skills and capabilities. Their logical capabilities should be fully utilised.
In other words, the creativity, resourcefulness and innovative potentiality of the employees can
be utilized to solve organisational problems.
Comparison between Theory X and Theory Y
Theory X Theory Y
1. Inherent dislike for work. 1. Work is natural like rest or play.
2. Unambitious and prefer to be directed by others. 2. Ambitious and capable of directing their own
behaviour.
3. Avoid responsibility 3. Accept and seek responsibility under proper
conditions.
4. People lack self-motivation 4. People are self-motivated.
5. External control and close supervision required 5. Self-direction and self-control.
to achieve organisational objectives.
6. Centralisation of authority and autocratic 6. Decentralisation and participation in decision
leadership. making. Democratic leadership.
(e) McClelland’s Need Theory of Motivation

David C. McClelland and his associate Atkinson have contributed to an understanding of motivation
by identifying three types of basic motivating needs.
These needs have been classified as:
1. Need for Power
2. Need for Affiliation
3. Need for Achievement
1. Need for Power. According to this theory the need for power, which might be defined as the
desire to be influential in a group and to control one’s environment is an important motivation
factor. Research suggests that people with a strong need for power, are likely to be superior
performers and occupy supervisory positions. Such types of individuals generally look for
positions of leadership, they act effectively, are outspoken, have a stubborn character and exert
authority.
2. Need for Affiliation. The need for affiliation means the desire for human companionship and
acceptance. Those with a high need for affiliation often behave the way they think other people
want them to, in an effort to maintain friendship. They prefer a job that entails a good deal of
social interaction and offers opportunities to make friends. The principal characteristics of
such peoples’ traits are as follows:
m Desire to like and be liked.
m Enjoy company and friendship.
m Prefer cooperative situation.
m Excel in group task.
m Star attraction in gathering.
m Leadership qualities.
This need is closely associated with the “social-type” of personality, who are sociable, friendly,
cooperative and understanding. Persons with high motivation for power and affiliation have
better chances of becoming good managers.
3. Need for Achievement. People with a high need for achievement, always feel ambitious to be
successful; are ever prepared to face challenging situations and set arduous goals for themselves.
They are prone to take calculated risks; and possess a high sense of personal responsibility in
getting jobs done. These people are concerned with their progress, and feel inclined to put in
longer hours of work. Failures never dishearten them and they are always ready to put in their
best efforts for excellent performance.
Process-based Theories to Motivation
The field of organisational behaviour has generally moved away from the needs theories of motivation.
Needs theories are content-oriented - that is, they explain what the causes are leading to motivated
behaviours. They do not explain why or how motivated behaviour occurs. These questions relate to
behaviours or actions, goals and feelings of satisfaction. These concepts are addressed by various
process-based theories to motivation.
Process-based theories to motivation are concerned with how motivation occurs. They focus on
why people choose to enact certain behavioural options to fulfil their needs and how they evaluate
their satisfaction after they have attained these goals. Two of the most useful process-based approaches
to motivation are expectancy theory and equity theory.
(1) Expectancy Theory of Motivation
Expectancy theory of motivation was developed by: Victor Vroom. Basically, Vroom’s expectancy
theory views motivation as a process of governing choices. The expectancy theory tries to explain how
and why people choose a particular behaviour over an alternative. The theory suggests that motivation
depends on two things: how much an individual desires a particular goal and how likely he thinks he
can get it. For instance, a person is looking for a job and reads an advertisement for a position of
Marketing Executive with a starting salary of Rs. 3 lakh per year. Even though he might want the job,
he probably does not apply because he is aware that there is little chance of getting it. Next he sees an
advertisement is for Field Supervisor for a salary of Re. 1 lakh per year. In this case he realizes that he
can probably get the job, but still doesn’t apply simply because he doesn’t want it. Then he comes
across another advertisement for a Management Trainee in a big organisation with a starting salary of
Rs. 2 lakh per year. He chooses to apply for this job because he wants it and also thinks that he has a
reasonable chance of getting it.
The expectancy theory rests on four assumptions:
m The theory assumes that behaviour is determined by a combination of forces in the individual
and in the environment.
m It assumes that people make decisions about their own behaviour in organisations.
m It assumes that different people have different types of needs, desires and goals.
m It assumes that people make choices from among alternative plans of behaviour based on their
perceptions of the extent to which a given behaviour will lead to desired outcomes.
The above model suggests that motivation leads to efforts and that effort, when combined with
individual ability and environmental factors, result in performance. Performance, in turn, leads to
various outcomes—each of which has an associated value called its ‘valence’. According to this
model, individuals develop some sense of these expectations before they exhibit motivated or non-
motivated behaviour.
Effort-to-Performance Expectancy. The effort-to-performance expectancy refers to an individual’s
perception of the probability that effort will result in high performance. When an individual believes
that effort will lead directly to high performance, expectancy is quite strong, that is close to 1.00. For
instance, if one feels sure that studying hard for an examination (effort) will result in scoring high
marks (performance), then his effort-to-performance expectancy is high, that is close to 1.0. When an
individual believes that effort and performance are unrelated, the effort-to-performance expectancy is
very weak, that is close to 0.0. Usually we are not sure about our expectations, so they fall somewhere
between 0.0 and 1.0 with a moderate expectancy.
m Performance-to-Outcome Expectancy. The performance-to-outcome expectancy means an
individual’s perception of the probability that performance will result in a specific outcome.
For example, an individual who believes that high performance will lead to a pay raise has a
high performance-to-outcome expectancy, approaching to 1.00. An individual who believes
that high performance may possibly lead to a pay raise has a moderate expectancy between
1.00 and 0. And an individual who believes that performance has no relationship to rewards
has a low performance-to-outcome expectancy that is close to 0.
m Outcomes and Valences. Expectancy theory recognizes that an individual may experience a
variety of outcomes as a consequence, of behavior in an organisational environment. A high
performer, for example, may get big pay raises, fast promotions and praise from the boss.
However, he may also be subject to a lot of stress and incur resentment from co-workers. Each
of these outcomes has an associated value or valence that is an index of how much an individual
desires a particular outcome. If an individual wants an outcome, its valence is positive. If an
individual does not want an outcome, its valence is negative. If an individual is indifferent to
an outcome, its valence is zero. It is this advantage of expectancy theory that goes beyond the
need-based approaches to motivation.
Thus, for motivated behaviour to occur on the part of any individual, three conditions must be met,
which are as follows:
m First, the effort-to-performance expectancy must be greater than zero.
m Second, the performance-to-outcome expectancy must also be greater than zero.
m Third, the sum of the valences for all relevant outcomes must be greater than zero.
Expectancy theory maintains that when all of these conditions are met, the individual is motivated
to expand effort. The expectancy theory also has several other important practical implications, which
managers should keep in mind. The managers can perform the following activities in relation to this:
m Determine what outcomes employees prefer.
m Define, communicate and clarify the level of performance that is desired.
m Establish attainable performance goals.
m Link desired outcomes to performance goal achievement.
The Porter-Lawlerz Extension. Porter and Lawler have proposed an interesting extension to the
expectancy theory. The human religionists assumed that employee satisfaction causes good
performance but research has not supported such relationship. Porter and Lawler suggest that there
may indeed be a relationship between satisfaction and performance but that it goes in the opposite
direction, that is, superior performance can lead to satisfaction.
Porter-Lawler Model. First, an individual’s initial effort is influenced by his perception regarding the
value of reward and the likelihood that the effort will yield a reward. The probability that increased
effort will lead to improved performance is affected by an individual’s traits, abilities and perception
of his role in an organisation. The model also distinguishes between intrinsic and extrinsic rewards.
Finally, the Porter-Lawler model borrows from equity theory the idea that the employee’s satisfaction
depends on the perceived equity of the rewards relative to the effort expended and the level of
performance attained.
Implications for Managers. Expectancy theory can be useful for organisations attempting to improve
the motivation of their employees. Nadler and Lawler suggest a series of steps for managers in applying
the basic ideas of the theory.
1. They should determine the primary outcomes that each employee likely desires.
2. They should decide what kind and levels of performance are needed to meet organisational
goals.
3. They should ascertain that the desired levels of performance are attainable.
4. They should ensure that desired outcomes and performance are linked.
5. They should also analyze the complete work situation for conflicting expectancies.
6. They should make sure that the rewards are large enough.
7. They should make sure that the overall system is equitable for everyone.
The expectancy theory has also its limitations. It is quite difficult to apply, for example, application
of this theory in the work place would require to identify all the potential outcomes for each employee,
to determine all relevant expectancies and then to balance everything somehow to maximize employee
motivation. Expectancy theory also assumes that people are rational - therefore, they will systematically
consider all the potential outcomes and their associated expectancies before selecting a particular
behavior. However, few people actually make decisions in such a precise and rational manner
(2) Equity Theory of Motivation
J. Stacy Adams developed equity theory of motivation. The equity theory argues that motivations arise
out of simple desire to be treated fairly. Equity can be defined as an individual’s belief that he is being
treated fairly relative to the treatment of others.
A person’s perception of equity develops through a four-step process as shown below:
1. First an individual evaluates the way he is being treated by an organisation.
2. The next step is for an individual to choose a co-worker who seems to be in a roughly similar
situation and to observe how an organisation treats him.
3. In the crucial step of equity theory an individual ‘compares’ the two treatments.
4. In the fourth step he evaluates a sense of equity to see if the two treatments seem similar or if
they are different.
Adam suggests that employees make these comparisons by focusing on input and outcome ratios.
An employee’s contributions or input to an organisation include time, education, effort, experience
and loyalty. Outcomes are what an individual receives from an organisation such as, pay, recognition
and social relationships. The theory suggests that people view their outcomes and inputs as ratio and
then compare their ratio to the ratio of someone else. This other ‘person’ may be someone in the work
group. The comparison may result in three types of attitudes:
m The individual may feel equitably rewarded,
m Under-rewarded.
m Over-rewarded.
An individual will experience a feeling of equity when the two ratios are equal. If an individual
has the feeling of equity then he should maintain the status quo. If he has a feeling of inequity then he
is likely to change the input.
The single most important idea for managers to remember about equity theory is that if rewards
are to motivate employees, they must be perceived as being equitable and fair. However, managers
must remember that different employees have different sense towards basis for a reward and this may
result in problems. Hence, the best way to avoid such problems is to make all employees aware of the
basis for rewards.
Reinforcement Based Approaches to Motivation. A final approach to the motivation process focuses
on why some behaviour are maintained and changed overtime. Reinforcement-based approaches
explain the role of those rewards as they cause behaviour to change or remain the same over time.
Specifically, reinforcement theory is based on the fairly simple assumption that behaviours that result
in rewarding consequences are likely to be repeated, whereas behaviour that result in punishing
consequences are less likely to be repeated. There are similarities between expectancy theory and
reinforcement theory. Both consider the processes by which an individual chooses behaviours in a
particular situation. However, the expectancy theory focuses more on behaviour choices and the latter
is more concerned with the consequences of those choices.
Reinforcement Contingencies. Reinforcement contingencies are the possible outcomes that an individual
may experience as a result of his or her behaviours. The four types of reinforcement contingencies that
can affect individuals in an organisational setting are positive reinforcement, avoidance, punishment
and extinction.
Positive Reinforcement is a method of strengthening behaviour. It is a reward or a positive outcome
after a desired behaviour is performed. When a manager’ observes an employee is doing a good job
and offers praise then this praise helps in positive reinforcement of behaviour. Other positive reinforces
include pay, promotions and awards.
The other reinforcement, contingency that can strengthen desired behaviour is avoidance. This
occurs when an individual chooses certain behaviour in order to avoid unpleasant consequences. For
instance, an employee may come to work on time to avoid criticism.
Punishment is used by some managers to weaken undesired behaviours. The logic is that the
unpleasant, consequence will reduce an undesirable behaviour again, for example, punishing with
fine for coming late.
Extinction can also be used to weaken behaviour especially that has previously been rewarded.
When an employee tells a vulgar joke and the boss laughs, the laughter reinforces the behaviour and
the employee may continue to tell similar jokes. By simply ignoring this behaviour and not reinforcing
it, the boss can cause the behaviour to subside which eventually becomes ‘extinct’.
Positive reinforcement and punishment are the most common reinforcement contingencies practiced
by organisations. Most managers prefer a judicious use of positive reinforcement and punishment.
Avoidance and extinction are generally used only in specialized circumstances.
New Approaches to Motivation in Organisations

New approaches are emerging to supplement the established models and theories of motivation. Two
of the most promising are Goal-Setting Theory and the Japanese Approach.
(A) Goal Setting Theory to Motivation
This approach to motivation has been pioneered in the USA by Edwin Locke and his associates in
1960s and refined in 1980s. Goal-setting theory suggests that managers and subordinates should set
goals for an individual on a regular basis, as suggested by MBO. These goals should be moderately
difficult and very specific and of type that an employee will accept and make a commitment to
accomplishing them. Rewards should be tied directly to accomplished goals. When involved in goal-
settings, employees see how their effort will lead to performance, rewards and personal satisfaction.
The mere act of goal setting does not ensure higher levels of motivation among employees. In fact, there
seem to be three important criteria that goals must meet if they are to influence the behaviour of
organisation members. They are goal specificity, goal difficulty and goal acceptance.
Goal Specificity. Goals must be stated in specific terms if they are to motivate effective performance.
Goals must be set in terms of measurable criteria of work performance, i.e., number of units produced,
new sales etc. and must specify a time period within which the goal is to be attained. It also gives a
sense of personal satisfaction and accomplishment to workers if he is able to meet the specific goal.
Goal Difficulty/Challenge. There exists a relationship between goal difficulty and work motivation.
The more difficult and challenging the goal is, the higher the level of motivation and performance.
However, it is essential that goals are set at realistic levels. Goals that are very difficult to achieve are
unable to motivate since it is beyond the capacity of the concerned individual.
Goal Acceptance. In order to influence motivation and performance, a goal must be internalized by an
individual. In other words, the person has to feel some personal ownership of the goal and must have
commitment to achieve it.
Goal Setting in Practice. The most obvious implication of goal-setting theory is that managers should
be helping subordinates to set goals that are specific and reasonably difficult so that subordinates
accept and internalize them as their own goals. Besides this, there are a number of issues that arise in
implementing goal setting in practice.
m Though specificity of goal is essential and measurability is desirable, it should not affect in
identifying meaningful and valid objective of goal attainment.
m The manager can stimulate goal acceptance in at least three ways:
n By involving subordinates in goal-setting process.
n By demonstrating a supportive attitude and approach toward his subordinates.
n By assigning various rewards to the achievement of goals.
Management by Objectives (MBO) is a managerial technique for improving motivation and
performance using goal-setting principles.
Cognitive Evaluation Theory. A researcher ‘Charms’ reported in 1960 that extrinsic motivation like
pay or rewards for a job, which has an intrinsic-motivation content, which is prior to such rewards. It
tends to decrease overall level of motivation. This proposal is called, “Cognitive Evaluation Theory”
which has been supported by a large number of research studies conducted subsequently.
(B) Japanese Approach to Motivation
The Japanese approach to motivation has gained increasing popularity around the world during the
past few years. This approach is rather a philosophy of management than a theory or model. The basic
tenet of the Japanese approach is that managers and workers should perform together as partners.
Since both of them see themselves as one group, all members are committed and motivated to work in
the best interests of an organisation. No one is called an employee; instead everyone is a team member,
team leader or coach and everyone owns the ‘share’ of an organisation. Like goal-setting meow, the
Japanese approach is likely to become more common in businesses throughout the world.
Integration of Motivation Theories. Thus several theories complicate our understanding. Some of
these theories are compatible and some are not. The real challenge that a researcher has to face is
integration of all or at least some of these together so that their inter and intra-relationships are
established. This will also improve the understanding of motivation. Certain attempts are made in
USA and elsewhere.
Enhancing Motivation in Organisations. Managers trying to enhance the motivation of their employees
can, of course, draw on any of the theories described above. They may in practice adopt specific
interventions derived from one or more theories or they may influence motivation through the
organisation’s reward system. The organisation can enhance motivation in following ways:
m Promote from within. It’s great for morale and simplifies hiring procedures.
m Use incentive programs. Inducing the feeling that ‘if you’re creative enough, you won’t have to
rely on expensive financial bonuses.’
m Don’t whitewash unpleasant assignments. Prepare subordinates for unpleasant assignments
well in advance and offer what support you can.
m Establish appropriate deadlines. Every project should have a deadline.
m Publicize both short and long-term organisational goals. Encourage personal and departmental
goal setting.
m Admit mistakes. People will respect you for it and will be less likely to hide their own mistakes.
m Humanize the work environment. Respect the need to treat each employee as an individual.
m Be liberal with praise. It’s almost impossible to over praise and easy to under praise.
m Be consistent in your own work and in your relations with others.
m Show a personal interest in the people who work for you. Relations are always smoother between
people who know each other on a personal basis than relations between people who merely
want something from each other.
Motivation Theories
Motivation an inter play

of dynamics
Functional
Personal Contexual
Internal Job characteristics External/Extrinsic

Intrinsic * clear targets Leadership styles
* Personality * Autonomy culture
* talents * Feedback Team work
* needs of * Identity & Rewards
* Maslow’s significances organization
hierarchy of * Skill variety career
needs Job Design Heizenberg’s
* Rotation & Two Factors theory
enlargement
* Enrichment
Process theories : expectancy & goal and equity.
Managerial Approaches for Improving Motivation

A number of approaches can help managers motivate workers, to perform more effectively. The
following steps promote intrinsic motivation:
m Workers Participation in Management (WPM)
m Management by Objectives (MBO)
m Organisation Behaviour Modification
m Job-Redesign
m Alternative Work Schedules.
Two approaches, however, have been especially effective: linking pay to job performance and
quality of work-life programs.
Pay and Job Performance. Pay often can be used to motivate employee performance. But a pay plan
also must be able to do the following tasks:
m Create the belief that good performance leads to high levels of pay;
m Minimize the negative consequences of good performance; and
m Create conditions in which rewards other than pay are evaluated as related to good performance.
Quality of Work Life Programs. Quality of Work Life (QWL) is defined as an attempt through a formal
program to integrate employee needs and well being with the intention of improved productivity,
greater worker involvement and higher levels of job satisfaction.
Programs for QWL improvements range from those requiring minor changes in an organisation to
those requiring extensive modifications in structure, personnel and the utilization of resources. There
are three types of QWL programs, which are as follows:
Quality Circles. Quality Circles (QC) is small groups of workers who meet regularly with their supervisor
as their ‘circle leader’ to solve work-related problems. QCs give employee an opportunity for
involvement, social-need satisfaction, participation in work improvement, challenge and opportunity
for growth. They are, in essence, vehicles for providing employees with opportunities to satisfy lower
and upper-level needs as stated by Maslow, through the motivators described in ‘Herzberg’s theory.
Alternative Work Schedule. Organisations also frequently use the modified ‘work-week’ as a way to
increase employee motivation. A modified ‘work-week’ can be any work schedule that does not conform
to a traditional 8 hours a day or 5 days a week format. The modified ‘work-week’ helps individual
satisfy higher-level needs by providing more personal control over one’s work schedule. It also provides
an opportunity to fulfill several needs simultaneously.
Job-Redesign. Job-Redesign or changing the nature of people’s job is also being used more as a
motivational technique. The idea pursued here is that managers can use any of the alternatives job
rotation, job enlargement, job enrichment as part of motivational programme. Expectancy theory helps
to explain the role of work design in motivation.
LEADERSHIP
Meaning
Simply stated, leadership is the process of influencing the behaviour of others towards the
accomplishment of goals in a given situation. Leadership is an integral part of management and plays
a vital role in managerial operations. It provides direction, guidance, and confidence to the employees
and helps in the attainment of goals in much easier way. In business and industrial organisations,
managers play the role of leader and acquire leadership of subordinates, their efforts towards the
achievement of organisational goals and activate the individuals of an organisation to make them
work. Leadership influences behavior of the individuals. It has an ability to attract others and potential
to make them follow the instructions. Individuals can be induced to contribute their optimum towards
the attainment of organisational goals through effective leadership. Leadership acquires dominance
and the followers accept the directives and control of a leader. Leadership provides direction and
vision for future to an organisation.
Definition
Leadership is the art of influencing and inspiring subordinates to perform their duties willingly,
competently and enthusiastically for achievement of groups objectives.
m According to Louis A. Allen, “A leadership is one who guides and directs people and gives
their efforts, direction and purpose.”
m According to George R. Terry, “Leadership is the activity of influencing people to strive
willingly for mutual objectives.”
m According to Robert Appleby, “Leadership is a means of direction. It is the ability of management
to induce subordinates to work towards group ideas with confidence and keenness.”
m According to Wendell French, “Leadership is the process of influencing the behavior of others
in the direction of a goal or set of goals or, more broadly, toward a vision of the future.”
m According to Keith Davis, “Leadership is the process of encouraging and helping others to
work enthusiastically towards objectives”.
m According to Koontz and O’Donnell, “Leadership is the art or process of influencing people so
that they will strive willingly towards the achievement of group goals”.
m According to Peter Drucker, “Leadership means the lifting of man’s visions to higher sights,
the raising of man’s performance to higher standard, the building of man’s personality beyond
its normal limitations”.
m According to Grey and Starke, “Leadership is both a process and a property. As a process, it is
used for non-coercive influence to shape up the goals of a group or organisation, to motivate
behavior toward the achievement of those goals and to help define group or organisational
culture. As a property, leadership is the set multi characteristics attributed to those who are
perceived to be leaders”.
Features of Leadership
The features of leadership are as follows:
m Leadership is the process of influencing behaviour of individuals of an organisation.
m Leadership uses non-coercive methods to direct and coordinate the activities of the individuals
of an organisation.
m Leadership directs the individuals to attain the tasks assigned to them by following the
instructions of their leaders.
m A leader possesses qualities to influence others.
m Leadership gives the individuals, a vision for future.
m Leadership is a group activity. Leader influences his followers and followers also exercise
influence over his leader.
m Leadership is meant for a given situation, given group for a pre-determined period of time.
m Leadership is continuous process of influencing behaviour. It encourages liveliness in the group.
Importance of Leadership
The following points can judge the importance of leadership:
m A leader should act as a friend of the people whom he is leading.
m A leader must have the capacity to recognize the potentials of the individuals and transform
them into realities.
m A leader should have the confidence of the individuals of the organisation.
m A leader must be able to unite the people as a team and build up team spirit.
m A leader should be able to maintain discipline among his group and develop a sense of
responsibility.
m A leader must be able to build up a high morale among the individuals of the organisation.
m A leader should motivate his people to achieve goals.
m A leader should try to raise the morale of the individuals and should maintain ethical standards
among the individuals.
m A leader should act as a link between the work groups and the forces outside the organisation.
Difference Between Leadership and Management

Leading and managing go together but some differences exist between the two. The following are the
differences between the leadership and the management:
m Management takes rational and logical decisions while leadership takes decision on expectations
of the followers. Leadership has an emotional appeal while management acts on rationality.
m The management establishes relationship through a lawful authority while leadership
establishes relationship through power.
m Managers have formal authority but the leaders have no such authority.
m All leaders are not managers and all managers are leaders.
m Management is a process of planning, organising, directing and controlling the activities of
others to attain the organisational objectives. Leadership on the other hand, is a process of
influencing the behaviour of the people to attain their assigned tasks. A successful manager
must possess both the managerial and leadership qualities.
Types of Leadership
Following are the main types of leadership:
m Autocratic or Authoritarian Leadership. In this type of leadership, there is a complete
centralization of authority in the leader, i.e., authority is centred in the leader himself. He has
all the powers to make decisions. He uses coercive measures and adopts, negative method of
motivation. He wants immediate obedience of his orders and instructions. Any negligence on
the part of subordinates results in punishment. There is no participation from the subordinates
in decision-making. A leader thinks that he is the only competent person in the organisation.
According to Edwin B. Filippo, there are following three types of leaders in autocratic:
1. Hard Boiled or Strict Autocrat. Leader, under such type uses negative influence and expects
that the employees should obey his orders immediately. Non-compliance of his orders
results in punishment. He makes all decisions and does not disclose anything to anyone.
He is quite rigid on performance.
2. Benevolent Autocrat. Benevolent autocrat leader uses positive influences and develops
effective human relations. He is known as paternalistic leader. He praises his employees if
they follow his orders and invites them to get the solutions of the problems from him. He
feels happy in controlling all the actions of his subordinates.
3. Manipulative Autocrat. Leader, under such type is manipulative in nature. He creates a
feeling in the minds of his subordinates and workers that they are participating in decision-
making processes. But he makes all decisions by himself. Non-compliance of his orders
also results in punishment.
m Democratic or Participative Leadership. Democratic or Participative leadership is also known
as group centered or consultative leadership. In this type of leadership, leaders consult their
groups and consider their opinion in the decision-making process. Leaders encourage
discussion among the group members on the problem under consideration and arrive at a
decision depending on their consent. Participation or involvement of the employees in the
decision-making process is also rewarded. Exchange of ideas among subordinates and with
the leader is given encouragement. Leaders give more freedom to their group members, who feel
that, their opinions are honored and they are given importance. It develops a sense of confidence
among subordinates and they derive job satisfaction. It improves quality of decision as it is
taken after due consideration of valued opinions of the talented group members.
n The demerit of this type of leadership is that it takes more time to arrive at a decision, as a
lot of time is wasted while taking the views from the employee. It is, therefore, very time
consuming.
m Laissez-faire or Free Rein Leadership. In this type of leadership, there is virtual absence of
direct leadership. It is, therefore, known as “no leadership at all”. There is complete delegation
of authority to subordinates so that they can make decisions by themselves. Absence of
leadership may have both positive and negative effects. Free rein leadership may be effective if
members of the group are highly committed to their work. The negative aspect shows that the
leader is not competent enough to lead his group effectively. Members may feel insecure and
develop frustration for lack of decision-making authority Bureaucratic. This type of leadership
emphasizes the rules and regulations of an organisation. The behavior of a leader is determined
by the rules, regulations and procedure to be followed under his leadership. The leader and the
subordinates both follow these rules and regulations. Therefore, there is no difference between
the management and the administration in this type of leadership. The employees, themselves
cannot do anything in this regard. It is the rules that determine their performance.
m Manipulative. This type of leadership manipulates the employees to attain their assigned
tasks. A manipulative leader is quite selfish and exploits the aspirations of the employees for
his gains. He knows very well the needs and desires of the employees but he does very little to
fulfill them. Due to such attitude, he has to face the hatred of the employees at times.
m Paternalistic. The paternalistic leadership believes in the concept that the happy employees
work better and harder. It maintains that the fatherly altitude is the right one for better
relationship between the manager and the employees. Everyone within the organisation should
work together like a family.
m Expert Leadership. The expert leadership emerged as a result of complex structure of modern
organisations. This type of leadership is based on the ability, knowledge and competence of the
leaders. He handles the situation skillfully with his talent. The employees feel relieved as they
are working under a person who is expert and can handle the situation without any problem.
In modern organisations, human resources vary in terms of skill, knowledge and competences. They
differ in quality, determination and their attitude towards the organisation. They exhibit different be-
haviours as they differ in attitude and outlook also. The leader must understand their behaviour and
accordingly can make use of the various types leadership. The manager should assess the situation and
adopt that type of leadership, which suits that situation. He should remember that leadership is situa-
tional. If situation changes, the use of leadership among its various types also changes. A successful
leader is the one who assesses the situation, studies the psychology of the subordinates and adopts the
most useful type of leadership to lead the people at work to accomplish the organisational goals.
TABLE Comparison between Leadership Style.
S. Points of Autocratic Democratic Free-rein
No. Comparison Style Style Style
1. Decision-making Leader sole decision-maker Leader makes decisions Subordinates themselves

in consultation with make decisions.
subordinates.
2. Motivation Fear and punishment Rewards & involvement Self direction and self-
Technique (negative incentives) (positive incentives) control
3. Communication one-way (down ward) Two-way commu- Free flow of
communication. nication communication.
4. Nature of Implicit obedience of Interchange of ideas and Self-discipline or control.
discipline orders and instructions. recognition of human
values.
5. Opportunity to No scope for initiative Scope for initiative Full scope for initiative and
Subordinates and creativity I style. creativity ‘we’ style. creativity ‘you’ style.
Theories of Leadership
A number of theories and approaches to study leadership have been developed. There are broadly
three theories of leadership.
(A) Trait Theory
This theory of studying leadership is taken into consideration to analyze the personal, psychological
and physical traits of strong leaders. The assumption made in this theory was that some basic traits or
set of traits differentiates leaders from non-leaders. For example, the leadership traits might include
intelligence, assertiveness, above average height, self-confidence, initiative and understanding of
interpersonal human relations. The existence of these traits determines the importance of leadership.
Possession of these traits helps the individuals to gain possession of leadership. Since all individuals
do not have these qualities, only those who have them would be considered potential leaders.
Some of the weakness of this theory is:
m All the traits are not identical with regard to essential characteristics of a leader.
m Some traits may not be inherited, but can only be acquired by training.
m It does not identify the traits that are most important and that are least important for a successful
leader.
m It does not explain the leadership failures, in spite of the required traits.
m It has been found that many traits exhibited by leaders are also found among followers without
explaining as to why followers could not become leaders.
m It is difficult to define traits in absolute terms.
m Thus, the trait theory has been criticized for lack of conclusiveness and predictability.
(B) Behaviour Theory

The behavioural theory assumed that effective leaders behaved differently from ineffective leaders. It
also identified the need of consistency of behaviour of good leaders. This theory can be more clearly
understood with the help of following case studies.
The Michigan Studies
Researchers at the University of. Michigan, led by Rensis Likert, began studying leadership in the late
1940s. Depending on broad discussions with both the managers and sub-ordinates, the Michigan
studies identified two forms of leadership behaviour. They are discussed as below:
1. Job-centred leadership behaviour. The first was called job-centred leadership behaviour, which
focuses on performances and efficient completion of the assigned tasks. A job-centred leader
interacts with group members to explain task procedures and oversee their work.
2. Employee centred leadership behaviour. The second behaviour was identified as employee
centred leader behaviour, which focuses on, high performance standards to be accomplished.
This can be done by developing a cohesive work group and ensuring that employees are
satisfied with their jobs. Thus, the leader’s primary concern is the welfare of the ordinates. The
Michigan researchers thought a leader could show signs of one kind of behavior, but not both.
The Ohio State Studies
At about the same time, a group of researchers at Ohio State also began studying leadership. The Ohio
State leadership studies also identified two major kinds of leadership behaviours or styles, which are
as follows:
1. Initiating-structure behaviour. In initiating-structure behaviour, the leader clearly defines the
leader-subordinate roles so that everyone knows what is expected. The leader also establishes
formal lines of communication and determines how tasks will be performed.
2. Consideration behaviour. In consideration behaviour, the leader shows concern for subordinates
feelings’ and ideas. He attempts to establish a warm, friendly and supportive.
The most obvious difference between Michigan and Ohio State studies is that the Ohio State research-
ers did not position their two forms of leader behavior at opposite ends of a single continuum. Rather,
they assumed the behaviors to be independent variables, which means that a leader could exhibit vary-
ing degrees of initiating structure and consideration at the same time i.e. a particular leader could have
higher ratings on both measures, low ratings on both or high ratings on one and low on the other.
The Ohio State researchers found that a leader’s behaviour remains consistent over a period of
time, if the situation also remains same. But the researchers could not come up with one best combination
of behaviour suitable to all the situations. The researchers used to believe that the leaders in possession
of both types of behaviour are most effective. However, their studies at International Harvester found
that leaders rated highly on initiating structure behaviour have higher performing but dissatisfied
sub-ordinates, whereas leaders rated highly on consideration structure had lower-performing sub-
ordinates who showed signs of higher satisfaction.
Most experts now agree that no single set of traits or behaviours appears to be common to all good
leaders. The universal approaches to leadership can help managers examine their own leadership
characteristics and match them against the traits most commonly identified with good leaders. In
order to understand the full complexity of leadership, contingency theory is to be studied.
(C) Contingency Theory

The main assumption of contingency theory is that the behaviour of an appropriate leader varies from
one situation to another. The motive of a contingency theory is to identify key situational factors and
to specify how they interact to determine appropriate behaviour of a leader.
The three most important and widely accepted contingency theories of leadership are as follows:
The LPC theory. The first contingency theory of leadership is Fred Fielder’s Least Preferred Co-
worker (LPC) Model. Fielder identified two types of leadership: task-oriented and relationship-oriented.
Fielder believes that a leader’s tendency to be task-oriented or relationship oriented remains constant.
In- other words, a leader is either task-oriented or relationship-oriented while leading his group
members. Fielder used the Least Preferred Co-worker (LPC) scale to measure the type of leadership. A
leader is asked to describe characteristics of the person with whom he or she is least comfortable while
working. They can do this by marking in a set of sixteen scales at each end, by a positive or negative
adjective. For example, three of the scales Fielder uses in the LPC are:
Helpful —————————— Frustrating 8 7 6 5 4 3 2 1
Tense ————————— — Relaxed 12345678
Boring —————————— Interesting 1 2 3 4 5 6 7 8
The leader’s LPC score is then calculated by adding up the numbers below the line checked on
each scale. A high total score is assumed to reflect a relationship orientation and a low score, a task
orientation by the leader. The LPC measure is controversial because researchers disagree about its
validity. This is because some of the LPC measures show whether the score is an index of behaviour,
personality or some other unknown factor.
According to Fielder, the contingency factor favours the situation from the leader’s point of view.
This factor is determined by leader-member relations, task-structure and position-power, which are
discussed as below:
m Leader-member relations. A Leader-member relation refers to the nature of relationship between
the leader and his work group. If the leader and the group enjoy mutual trust, respect, confidence
and they like one another, relations will remain good. If there is little trust, respect or confidence
and if they do not like one another, relations will remain bad. Good relations are assumed to be
favourable and bad relations unfavourable.
m Task-structure. Task-structure is the degree to which the group’s task is clearly defined. When
the task is routine, easily understood, and unambiguous and when the group has standard
procedures, the structure is assumed to be high. When the task is non-routine, ambiguous,
complex, with no standard procedures and precedents, structure is assumed to be low. High
structure is more favourable for the leader and low structure is unfavourable. If the task structure
is low, the leader will have to play a major role in guiding and directing the group’s activities.
If the task structure is high, the leader will not have to pay much attention.
m Position-power. Position-power is the power vested in the position of a leader in an organisation.
If the leader has the power to assign work, administer rewards and punishment, recommend
employees for promotion or demotion, position-power is assumed to be strong. If the leader
does not have required powers, the position-power is weak. From the leader’s point of view,
strong position power is favourable and weak position power is unfavourable. Fielder and his
associates conducted various studies highlighting if a situation favours the leadership and
group effectiveness or not. When the situation includes good relations, high structure and
strong power, a risk-oriented leader to lie most effective. However, when relations are good but
task structure is low and position-power is weak, relationship-oriented leader is considered to
be most effective.
m A final point about LPC theory is that, Fielder argues that any particular type of leadership,
which is measured by the LPC is inflexible and cannot be changed. In other words a leader
cannot change his behaviour to fit a particular situation. Fielder’s contingency theory has been
criticized on the ground that LPC measure lacks validity and that the assumption about the
inflexibility of the leader’s behaviour is unrealistic.
(D) The Path Goal Theory
The path-goal model of leadership was introduced by Martin Evans and Robert House. Path-goal
theory says that a leader can motivate subordinates by influencing their expectations. Leaders can
motivate sub-ordinates by making clear what they have to do to get the reward they desire. The path-
goal model assumes that leaders can change their style or behaviour to meet the demands of a particular
situation. This model identifies four kinds of leader behaviour: directive, supportive, participative
and achievement-oriented. According to this model managers can adjust their behaviour to include
any four kinds of leadership behaviour mentioned above. For instance, while leading a new group of
sub-ordinates, the leader may be directive in giving guidance and instructions to them. He may also
adopt supportive behaviour to encourage group cohesiveness, to look after their needs and ensuring
that they get the rewards and benefits. As the group becomes more familiar with the task and as new
problems are taken into consideration, the leader may use participative behaviour by which he can
participate with employees in making decisions and take their suggestions as well. Finally, the leader
may use achievement-oriented behaviour to encourage continued high performance of sub-ordinates.
(E) The Vroom-Yetton –Jago Theory (VYJ)
The Vroom-Yetton-Jago model was first introduced by Vroom and Yetton in 1973 and was revised by
Vroom and Jago in 1988, this model has a much less focus than the path-goal theory. It helps a leader
to determine the extent, to which employees should participate in the decision-making processes,
The VYJ theory argues that decision-effectiveness is best judged by the quality of decision and by
the acceptance of that decision on the part of employees. Decision acceptance is the extent to which
employees accept and are loyal to their decisions.
To maximize decision effectiveness, the VYJ theory suggests that leaders adopt one of five decision-
making leaderships. The appropriate leadership depends on the situation. As summarized in the
following table, there are two autocratic types of leadership, which are AI and All, two consultative
types of leadership, which are CI and CII and the other one is group GII.
Decision-Making Styles in the VYJ Model
Decision Style Description
AI Manager makes the decision alone.
AII Manager asks for information from subordinates but makes (he decision alone. Sub-
ordinates may or may will be informed about what the situation is.
CI Manager shares the situation with individual sub-ordinates and asks for information
and evaluation. Subordinates do not meet as a group and the manager alone makes the
decision.
C II Manager and subordinates meet as a group to discuss the situation but the manager
makes the decision.
G II Manager and subordinates meet as a group to discuss the situation and the group makes
the decision.
A = Autocratic; C = Consultative; G = Group
The situation is defined by a series of questions about the characteristics or attributes of the
problem under consideration. To address the questions, the leader uses one of the four decisions. Two
of them are used when the problem affects the entire group. For example, a decision about the facilities
to be given to employees in a new office affects the entire group and the other two are appropriate
when the decision affects a single individual only, e.g., a new office for that individual only.
Moreover, one of each is to be used when the decision has to be made quickly because of some
urgency and the others are to be used when the decision can be made more slowly and the leaders
wants to use the opportunity to develop subordinates decision-making abilities.
The VYJ model was criticized because of its complexity. Computer software has been developed to
aid leaders in defining the situation, answering the questions about the problem attributes and
developing a strategy for decision-making participation.
Although the VYJ model is too new to have been thoroughly tested, evidence so far indicates that
this model can help leaders to choose the most effective way to include the sub-ordinates in decision-
making.
Other Contingency Approaches

In addition to these three major theories, there are other contingency models or theories developed in
recent years. The other models are as follows:
m Vertical Dyad Linkage Model. This model stresses the fact that leaders actually have different
kinds of working relationship with different subordinates. Each manager-subordinate
relationship represents one vertical dyad. The Vertical Dyad Linkage model suggests that
leaders establish special working relationships with some subordinates based on some
combination of respect, trust and liking. These people constitute the ‘in-group’. Other
subordinates remain in the ‘out-group’s, who receive less of leader’s time and attention. Those
in the ‘in-group’ receive more of the manager’s time and attention and are better performers.
Research shows that people in the ‘in-group’ are more productive and more satisfied with their
work than ‘out group’ members.
m Life Cycle Model. The life cycle model suggests that appropriate leader behavior depends
on the maturity of the followers. In this context, maturity includes motivation, competence
and experience. The model suggests that as followers become more mature, the leader needs
to move gradually from high to low task orientation. Simultaneously, the leader’s employee-
oriented behaviour should start low, increase at a moderate rate and then decline again.
Many leaders are familiar with the life cycle theory because it is both simple and logical.
However, it has received little scientific support from researchers.
Emerging Perspectives on Leadership in Organisations

The new perspectives that have attracted attention are the concepts of substitutes for leadership
and transformational leadership.
Substitutes for Leadership. The existing leadership theories and models try to specify what kind of
leader’s behaviour is appropriate for different situations. They do not take into consideration, the
situations where the leadership is not needed. The substitute concept identifies the situations where
the characteristics of the subordinates, the task and the organisation replace leaders’ behaviours.
For example, when a patient is admitted to an emergency room in a hospital, nurses, doctors and
attendants act immediately without waiting for directive or supportive behaviours of leaders in an
emergency ward.
Several characteristics of the sub-ordinate may serve to replace or change the behaviour of the
leaders. For example, employees with much ability and experience may not need to be told what to
do. Similarly, a strong need for independence by the sub-ordinate may result in ineffectiveness of
leaders’ behaviour.
Characteristics of the task that may substitute the leadership include, the availability of feedback
and intrinsic satisfaction. For example, when the job is routine and simple, the subordinate may not
need direction. When the task is challenging, the subordinate may not need or want support.
Organisational characteristics that may substitute for leadership include formalization group
cohesion, inflexibility and a rigid reward structure. For example, when policies are formal and rigid,
leadership may not be needed.
Transformational Leadership. Another new concept of leadership goes by a number of labels:
charismatic leadership, inspirational leadership, symbolic leadership and transformational
leadership. This is a leadership that transmits a sense of mission, increases teaming experiences
and inspires new ways of thinking.
Charisma is a form of interpersonal attraction. Charismatic people attract followers and this
type of leader has great power over his or her followers. Charismatic leaders are self-confident and
can influence others. The followers of a charismatic leader identify with the leader’s beliefs, accept,
trust and obey the leader without questioning him and thereby contribute toward the success of the
organisational goals.
Leadership Skills. There is now recognition in both leadership theory and practice of the importance
of skills, how leaders should behave and perform effectively. Although there are many skills, such
as cultural flexibility, communication, HRD, creativity, and self-management of learning, the research-
based skills identified by Whitten and Cameron seem to be most valuable. Their personal skills model,
involving developing self-awareness, managing stress and solving problems creatively; the
interpersonal skills model, involving communicating supportively, gaining power and influence,
motivating others and managing conflict, are especially comprehensive and useful. Finally, the widely
recognized organisational behaviour techniques such as, training, job design and leaders can also
effectively use behavioural management
JOB SATISFACTION
The term ‘job satisfaction’ refers to an employee’s general happiness with his or her job. Locke defines
job satisfaction as a “pleasurable or positive emotional state resulting from the appraisal of one’s job
experiences”. For our purposes job satisfaction will be defined as the amount of overall positive affect
or feelings that individuals have towards their job.
Job satisfaction is the result of various attitudes the employee holds towards his job, towards
related factors and towards life in general.
The importance of job Satisfaction is that if the people are satisfied with their work, then there is an
improvement in both the quality and quantity of production. If they are not satisfied, then both the
quantity and quality of his output will be low, there will be high absenteeism and employee turnover
and increased unionism.
Caldur and Schurr in 1981 suggested that there are three different approaches to evaluating job
satisfaction. The first approach is that work attitudes such as job satisfaction are dispositional in
nature, i.e., they are stable, positive or negative disposition learned through experiences. The second
approach is the ‘social information processing model’, which suggests that job satisfaction and other
work place attitudes are developed or constructed out of experiences and information provided by
others at the work place. The third approach is that if information processing model’, which is based
on the accumulation of cognitive information about the -work place and one’s job. In a sense, this is the
most obvious approach, as it argues that a person’s job satisfaction is influenced directly by the
characteristics of their job.
Factors Relating to Job Satisfaction

Some of the most important factors relating to job satisfaction are briefly stated below:
Personal Factors. These factors include the individual employee’s personality, age, sex, educational
level, intelligence etc. Most of the evidence on the relation between age and satisfaction seems to
indicate that there is generally a positive relationship between the two variables up to the pre-retirement
years and then there is a sharp decrease in satisfaction.
There is no clear research evidence between educational level and job satisfaction. As regards the
relationship between the intelligence level and job satisfaction, it usually depends upon the level and
range of intelligence and the challenge of the job. There is as yet no consistent evidence as to whether
women are more satisfied with their jobs than men.
Job Factors. These factors include the type of work to be performed, skill required for work performance,
occupational status involved in the job etc.
The type of work is very important, as a number of research studies have shown that varied work
generally brings about more satisfaction than routine work. Where skill exists to a considerable degree
it tends to become the main source of satisfaction to the employee. As regards the relation of occupational
status to job satisfaction, research evidences indicate that employees are relatively more dissatisfied in
those jobs, which have less social status or prestige.
Organisational Factors. These factors include security, wages and salaries, fringe benefits,
opportunities for advancement, working conditions etc. Social and economic security to employees
increases job satisfaction, the wages and salaries and fringe benefits are definitely the main factors
that affect job satisfaction of employees. As regards the relation of opportunity for advancement to job
satisfaction, it has been found that this factor is most important to skilled personnel and least important
to unskilled personnel. Desirable working conditions are also important to job satisfaction. Besides,
an effective downward flow of communications in an organisation is also important to job satisfaction
as employees are keen to know more about the company and its plans, policies etc. Basically, job
satisfaction is determined by the discrepancy between what individuals expect to get out of their jobs
and what the job actually offers. A person will be satisfied if there is no discrepancy between desired
and actual conditions
Importance of Job Satisfaction. Obviously, job satisfaction significantly contributes to employee
productivity and morale. An organisation can be substantially benefited if it develops general attitudes
of its employees that can effectively contribute to job satisfaction. If employees are satisfied, turnover
and absenteeism will be less and productivity will be more, Further, satisfaction of individual
expectations results in group integration and cohesiveness.
Measures to Increase Job Satisfaction

Although management cannot change the personal factors in job satisfaction, it should appreciate the
role of such factors and must take care to place the employees where the personal factors of the
individual help him in achieving job satisfaction.
Similarly, the management can use the factors inherent in the job to plan and administer jobs more
advantageously for its personnel. For example, the policy of job rotation, job enrichment, and job
enlargement may help to increase job satisfaction. Management should also take necessary steps to
raise the occupational status of the workers.
The management should carefully develop appropriate policies and practices for promotions and
transfers, working conditions, wages, grievance handling, fringe benefits, satisfactory hours of work
and adequate rest pausing. Management should also able to recognize and appreciate the good work
done by the employees and give respect for their creative suggestion. Proper delegation of authority,
freedom to do work will also help to increase job satisfaction. Above all, while keeping in view the
factors related to job satisfaction, the management must recognize the importance of the stability of
employee attitudes that may lead to high morale and production could raise the job.
MORALE
Morale can be defined as the total satisfaction derived by an individual from his job, his work-group,
his superior, the organisation he works for and the environment. It generally relates to the feeling of
individual’s comfort, happiness and satisfaction.
According to Davis, “Morale is a mental condition of groups and individuals which determines their
attitude.”
According to Edwin B. Flippo, “Morale is a mental condition or attitude of individuals and groups
which determines their willingness to cooperate.”
In short, morale is a fusion of employees’ attitudes, behaviours, manifestation of views and opinions
– all taken together in their work scenarios, exhibiting the employees’ feelings towards work, working
terms and relation with their employers. Morale includes employees’ attitudes on and specific reaction
to their job.
High Morale
High morale implies determination at work- an essential in achievement of management objectives.
High morale results in:
m A keen teamwork on part of the employees.
m Organisational Commitment and a sense of belongingness in the employees mind.
m Immediate conflict identification and resolution.
m Healthy and safe work environment.
m Effective communication in the organisation.
m Increase in productivity.
m Greater motivation.
Low Morale
Low morale has following features:
m Greater grievances and conflicts in organisation.
m High rate of employee absenteeism and turnover.
m Dissatisfaction with the superiors and employers.
m Poor working conditions.
m Employee’s frustration.
m Decrease in productivity.
m Lack of motivation.
Though motivation and morale are closely related concepts, they are different in following ways:
m While motivation is an internal-psychological drive of an individual which urges him to behave
in a specific manner, morale is more of a group scenario.
m Higher motivation often leads to higher morale of employees, but high morale does not
essentially result in greatly motivated employees as to have a positive attitude towards all
factors of work situation may not essentially force the employees to work more efficiently.
m While motivation is an individual concept, morale is a group concept. Thus, motivation takes
into consideration the individual differences among the employees, and morale of the employees
can be increased by taking those factors into consideration which influence group scenario or
total work settings.
m Motivation acquires primary concern in every organisation, while morale is a secondary
phenomenon because high motivation essentially leads to higher productivity while high
morale may not necessarily lead to higher productivity.
m Things tied to morale are usually things that are just part of the work environment, and things
tied to motivation are tied to the performance of the individual.
Any morale improvement programme should follow the following basic rules
1. Respect the individual. 2. Give fair compensation.
3. Set worthwhile goals. 4. Provide good-work environment.
5. Ensure job security. 6. Adopt an open-door policy.
7. Give financial and non-financial incentives. 8. Be just and fair in all dealings with employees.
MONOTONY AND FATIGUE

Meaning of Monotony
Monotony indicates the psychologically undesirable effects of repetitive work found in factories and
industrial and business organisation of today. This is done of the major factors which appears to be ad-
versely affecting Indian business and industrial workers and their morale and motivation and produc-
tivity in the process of rapid economic development and such merit our study. Monotony is a mental
condition which is produced by the constant repetition of some function over a long period of time.
Effects of Monotony
1. Fatigue 2. Slow production
3. Variable production 4. Dissatisfaction
Causes of Monotony
1. Individual of the worker. Monotony is connected with the individual trait of the individual
workers. It is commonly seen that one particular kind of work will strike some person as boring
while other ill will find no boredom in doing it.
2. Intellectual level of the worker. It has been observed that more intelligent workers is inclined
to be borne by mechanical reparations of some jobs. On the other hand the less intelligent
individual makes a better adjustment with his work.
3. Attitude of the workers. Workers with negative attitude to their work experiences monotony
much sooner than those with a positive attitude people with a positive attitude can maintain
their concentrations in their work for much longer time.
4. Situations. Some people soon become fed up with doing work that needs recall, and they do not
want to continue doing it. Their attention in the work gradually decreases as their mind becomes
more and more satiated. As a result quality and quantity of production also declines
5. Environmental condition. External environment influences the manager’s employer who can
do more to remove boredom and monotony by changing the external conditions of work than
by trying to conditions the workers mind or control his attitudes ,monotony can be reduced.
6. Repetitive nature of task. One cause of boredom is the nature of the work because if a particular
function does not vary at all the workers becomes bored very soon and experiences monotony.
If the work is varied and changed frequently the workers interest in it is maintained.
7. Social Environment. Monotony also depends to a large extent upon some social factors because
the workers in a social environment which has influence upon his mental conditions. If the
mutual exchange between the management and workers is entertaining and cooperatives then
boredom is quickly done away with.
Handling Monotony
1. Job enlargement. The rationale of job enlargement implies to extend the limits of jobs or provide
greater discretion for the worker on the job. Jobs usually have twin aspects: prescribed and
discretionary. Jobs where discretionary aspects is minimum, employee dissatisfaction and
turnover is considerable in spite of high rates of pay.
2. Job rotation. Since different kinds of works exhaust different muscles of the body a change of
positions often helps to give rest also. Besides a change of jobs helps to maintain the novelty of
the workers and thus monotony is avoided.
3. Use of test. The susceptibility to monotony differs considerably from one individual to another;
therefore, most often psychological tests have been used to determine the degree of Susceptibility.
Tests are also used to located certain personality factors related with boredom such as IQ,
introversion, more than required level of intelligence so that a careful selection and placement
can on solve the problem to a certain extent.
4. Short term goal. Another strategy is setting up clear short term production goals so that the
workers are greatly motivated to reach them. Such a practice will be still greater use when the
goals are set by active cooperation’s of workers.
5. Use of pacing and automatic work habits. Psychological analysis have revealed that monotony
in a repeated activity is not caused by recall but by repeating the work. Now-a-days, efforts are
made to turn all repetitive functions into automatic activities, as far as possible.
6. Music. Music has been believed to combat the effects of monotony of factory work while music
has been mostly liked by the employees, its contribution towards increasing production has
been somewhat doubtful.
7. Increasing the experience of completion. The awareness of having some work provides natural
motivation and simulations, it is the duty of management to introduce necessary changes in
work situations to make workers feel that they have their task completed.
8. Improvement of working. Generally, monotony can kept in control by providing a properly
timed and sufficiently long period of rest, payment of wages at the correct time by introducing
the proper methods of working permitting freedom to laugh and enjoy and generally improving
the working environment.
9. Proper social environment. Finally, the most important strategy of reducing the effects of
monotony and boredom is to maintain an atmosphere of love, trust, confidence, cooperation
and coordination among the workers and management.
Meaning of Fatigue
Fatigue may be defined as a reduction on ability to work because of the previous work. Fatigue can be
both physical and mental, but to understand the differences it is necessary first to understand their
nature.
Types of Fatigue
1. Physical Fatigue. When physical efficiency and capacity fall down and physical coordination
becomes difficult, it is said to be physical fatigue. In Physical Fatigue, one finds physical
characteristics of fatigue.
2. Mental Fatigue. Fatigue is not only physical because it is sometimes manifested even when one
has no physical work. This is mental fatigue. Mental fatigue is normally apparent after excessive
physical fatigue. The indications of mental fatigue are an absence of desire to work, emotional
condition, lack of interest and concentration, lack of normal efficiency of work, desire to rest etc.
Conditions for Promoting Fatigue

1. Long hours of work. In some industries the house of work are so long that the workers become
exhausted while in fact these longer hours of work do not result in the a proportionate increase
in production.
2. Absence of rest pause. If a person works for a long time continuously than he fatigued. If does
not take rest and continues to work, then this fatigue increase even more rapidly he is working
exhausted conditions.
3. Absence of proper ventilation. If a worker does not inhale fresh air when he is working he
soon gets tired. In a factory in which the air is polluted the incidence of fatigue will be for
greater than in any other factory where there is adequate ventilations.
4. Inadequate Illumination. Fatigue increases if the illuminations in the workers place inadequate
and improper because the eyes being feel exhausted and get dry if the light is inadequate and
too bright. Proper lightening from the right direction is also necessary.
5. Environmental Temperature. It is known that metabolic process involved in work result in
generations of heat. It is for this reason the environmental temperature has a more unfavourable
effects on the persons doing heavy work. If it exceeds beyond circle limits. In cool air excessive
heat is lost from body by conditions and radiations.
6. Negation of human Engineering concept. Certain machines are so designed that they tend
exhausted and tire the operator working in them. Hence modern psychologists give suggestions
even in the constructions of machines so that they should be designed to minimize fatigue and
maximize production.
7. Noise. Fatigue is evident when the work environment is too noisy.
8. Unhygienic condition. Incidence of fatigue is actuate when unhygienic conditions such as
high humidity, foul smell, dirty urinals and latrines and negations of medical facilities prevail.
9. Lack of training in industry. In every profession there are certain jobs which requires some
training before they can be properly performed. If such jobs are entrusted to untrained employees
then their workers become exhausted very rapidly.
10. Lack of sleep. In factories in which workers have the work at night and cannot get the adequate
rest during the day, lack of sleep from another factors which result in fatigue.
11. Inharmonious management labour relations. A workers cannot maintain high morale in
which relation between the employer and the employees are not too good or in which the
environment is of hate or suspicions. The result is that in such conditions the workers feel
exhausted very quickly.
Reduction of Fatigue
1. Work hours 2. Environmental factors
3. Atmospheric condition 4. Hygienic condition
5. Rest periods 6. Proper Training
7. Sound management Labour relations 8. Adherence to the concept of human engineering
Symptoms of Fatigue
1. Feeling of Exhaustion 2. Muscular conditions
3. Chemistry of chemical reaction 4. Nervous Slackness
5. Fall of production
ORGANISATIONAL CHANGE AND DEVELOPMENT

Meaning of Organisational Change
Change simply refers to alteration in the existing conditions of an organisation. Even in most stable
organisations change is necessary to maintain stability. The economic and social environment is so
dynamic that without adapting to such change even the most successful organisations cannot survive
in the changed environment. Therefore, management must continuously monitor the outside
environment and be sufficiently innovative and creative to implement these changes effectively.
Organisations encounter different forces for change. These forces come from external and internal
sources of the organisation.
External Forces
External forces for change originate outside an organisation. There are four key external forces for
change:
Demographic Characteristics. These include age, education, skill level and gender of employees.
Organisations need to effectively manage these characteristics in order to receive maximum contribution
and commitment from their employees.
Technological Advancements. Both manufacturing and service organisations are increasingly using
technology as a means to improve productivity and market competitiveness.
Market Changes. The emergence of a global economy is forcing Indian organisations to change the
way they do business. Organisations are entering into new partnerships with their suppliers in order
to deliver higher quality products at lower prices.
Social and Political Pressures. These forces are created by social and political events. Personal values
affect employees’ needs, priorities and motivation. Therefore, managers need to adjust their manage-
rial style according to the changing employee values. Political events also create substantial change in
an organisation. Although it is difficult for organisations to predict changes in political forces, many
organisations hire lobbyists and consultants to help them detect and respond to social and political
changes.
Internal Forces
Internal forces for change come from inside the organisation. This may come from both human resource
problems and managerial behaviour.
Human Resource Problems. These problems stem from employee perceptions about their work
environment and conflict between an employee and organisation needs. Organisations might respond
to these problems by using the various approaches to job design by implementing realistic job previews
and by reducing employees’ role conflict, stress, work overload and ambiguity.
Managerial Behaviour. Excessive interpersonal conflict between managers and their subordinates is
a sign of implementing an immediate change. Inappropriate leader behaviour such as inadequate
direction and support are the cause of conflict between managers and their subordinates.
Nature of Change. Organisations introduce changes through people. Unless the people are willing to
accept the need and responsibility for organisational change, intended changes can never be translated
into reality. In addition, individuals have to learn to adapt their attitudes and behavioural patterns to
constantly changing environments.
Management of change involves both individual and organisational change. Individual change
is behavioural change, which is determined by individual characteristics of members such as their
knowledge, attitudes, beliefs, needs, expectations and skills. It is possible to bring about a total change
man organisation by changing behaviours of individual members through participative and educative
strategies. Although, the degree of difficulty involved in the change and the time taken to bring about
the change will depend on the target of change. The attitudes towards change are largely dependent
on the nature of the situation and the manner in which changes are initiated and executed.
Changing individual behaviour is more time consuming and a difficult task. The linkage between
attitude and behaviour is not direct and therefore changing behaviour is more difficult than changing
attitudes. One’s attitude does not necessarily get reflected in one’s behaviour. For example, we know
that honesty is the best policy and we have favourable altitudes towards people – who are honest but
in certain situations, we may still act in a less honest way. Changing group behaviour is usually a
more prolonged and harder task. Every group has its own dynamics of push and pull that attempt to
neutralise the change that may have taken place in an individual. Due to this group dynamics,
individual member’s ‘changed behaviour’ may revert to earlier normative behaviour in order to maintain
the change in the existing conditions. However, due to the same reasons of a group’s over-riding
influence on individual members, sometimes it may be easier to tackle the group as a whole rather
than trying to change the behaviour of members one by one.
Approaches to Organisational Change

As organisational change is a complex process, therefore managers must approach it systematically
and logically. Some organisational changes are planned whereas other changes are reactive. Planned
change is designed and implemented by an organisation in an orderly and timely fashion in the
anticipation of future change.
Reactive change results from a reaction of an organisation to unexpected events. In contrast to
planned change, it is a piece-meal response to circumstances as they develop. External forces that the
organisation has failed to anticipate or interpret always bring about reactive change. Since reactive
change may have to be carried out hastily, it increases the likelihood of a poorly conceived and poorly
executed Program.
Planned change is always preferable to reactive change. Managers who sit back and respond to
change only when they can no longer avoid it are likely to waste a lot of time and money trying to patch
together a last-minute solution. The more effective approach is to anticipate the significant forces for
change working in an organisation and plan ways to address them. To accomplish this, managers
must understand the steps needed for effective change.
A Comprehensive Model of Change

The comprehensive model of change shown in the figure shows seven steps that can lead to effective
change. This model is useful for both planned and reactive change.
The Seven Steps of Comprehensive Model of Change

Recognize need for change. The first step in this model is
recognizing need for change. For marketing managers who Recognise need for change
anticipate needed. Change, recognition is likely to come much
earlier, as a result of marketing forecasts indicating new market
Establish goals for change
potential, expert indications about impending socio-economic
change or a perceived opportunity to capitalize on a key
technological breakthrough. These managers tend to ‘initiate Diagnose relevant variables
change because they expect it to be necessary in the near future
in any case’. Select change intervention
Establish goals for change. The manager must then set goals
for the proposed change. It is important for the manager to Plan implementation of change
specify goals that the change is supposed to accomplish. The
goals can be set to maintain or increase the market standing, to Implement change
enter new markets, to restore employee morale, to reduce
turnover, to settle a strike and to identify good investment
Evaluate implemenation
opportunities.
Diagnose relevant variables. An important next step is FIGURE Comprehensive Model
diagnosing organisational variables that have brought about of Change
the need for change. Turnover, for example, may be caused by
a variety of factors such as low pay, poor working conditions, poor supervision, better alternatives in
the job market or employee job dissatisfaction etc. Thus, if turnover is the recognized stimulus for
change, the manager must understand what has caused it in a particular situation in order to make
the right changes. To carry out this diagnosis, the manager may discuss the situation with employees
and other managers.
Select change intervention. After the manager has developed an understanding of the problem and
its causes then he must select a change intervention that will accomplish the intended goal. An
intervention is a specific change induced in an organisation with the intention of solving a particular
problem or accomplishing a specific objective. For example, if turnover is caused by low pay, then a
new reward system is required and if the cause is poor supervision then interpersonal skills and
training for supervisors is required.
Plan implementation of change. The manager must then carefully plan the implementation of change.
Planning the implementation of change involves consideration of the cost of the change, how the
change will affect other areas of the organisation and the degree to which employees should participate
in bringing about the change. Hastily implemented change can result in more harm than benefit. For
example, if the change involves the use of new equipment, the manager should not make any changes
that rely on the use of new equipment until it has arrived and been installed and workers know how
to use it. Moreover, if change is thrust upon them too quickly, their resistance may stiffen.
Implement change. A systematically implemented change is more likely to proceed smoothly and to
encounter fewer obstacles than is a change that is implemented too quickly and without adequate
preparation.
Evaluate implementation.Finally, after the change has been implemented, the manager should verify that
it has accomplished its intended goals. A change may fail to bring about the intended results. This may be
due to inappropriate goals or inaccurate diagnosis of the situation or wrong selection of intervention.
Models and Dynamics of Planned Change

Managers are criticized for emphasizing short-term, quick fix solutions to organisational problems.
Quick-fix solutions do not really solve underlying problems and they have little staying power.
Researchers and managers have thus tried to identify effective ways to manage the change process.
The following models have been developed to effectively manage change:
Lewin’s Change Model. Most theories of organisational change originated from the landmark work
of social psychologist Kurt Lewin. Lewin developed a three-stage model of planned change, which
explained how to initiate, manage and stabilize the change process. The three stages are unfreezing,
changing and refreezing. Before reviewing each stage, it is important to highlight the assumptions on
which, this model is based:
1. The change process involves learning something new, as well discontinuing current attitudes,
behaviours and organisational practices.
2. Change will not occur unless there is motivation to change. This is often the most difficult part
of the change process.
3. People are the hub of all organisational changes. Any change, whether in terms of structure,
group process, reward systems or job design requires individuals to change.
4. Resistance to change is found even when the goals of change are highly desirable.
5. Effective change requires reinforcing new behaviours, attitudes and organisational practices.
Action of Change. The Following are the Three Stages of Change:
(1) Unfreezing. The focus of this stage is to make organisation open to change. In doing so individuals
are encouraged to replace old behaviours and attitudes with those desired by management.
Managers also need to devise ways to reduce the barriers to change during this stage.
(2) Changing. The focus of this stage is in providing employees with new information, new
behavioural models, or new ways of looking at things. The purpose is to help employees learn
new concepts to implement change. Role models, mentors, experts, benchmarking organisation
against world-class organisations and training are useful mechanisms to facilitate change.
(3) Refreezing. The focus of this stage is stabilizing the change during refreezing by helping
employees integrate the changed behaviour or attitude into their normal way of doing things.
This is accomplished by first giving employees the chance to exhibit the new behaviours or
attitudes. Once exhibited, positive reinforcement is used to reinforce the desired change. Additional
coaching and modelling are also used at this point to reinforce the stability of the change.
Expanded Process Model. Lewin’s model is very simple and straightforward and virtually all models
of organisational change use his approach. However, it does not deal with several important issues.
This model looks at planned change from the perspective of top management. The model incorporates
Lewin’s concept as part of the implementation phase.
Resistance to Change
Although organisations initiate changes in order to adjust to the changes in their environments but
people sometimes resist them. Therefore, managers need to recognize the manifestations of resistance
both in themselves and in others, if they want to be more effective in supporting change. For example,
managers can use the list given in following table
Acceptance m Enthusiasm
m Cooperation
m Cooperation under pressure from management
m Acceptance
m Passive resignation
m Indifference
Indifference m Apathy: loss of interest in the job
m Doing only what is ordered
m Regressive behaviour
Passive Resistance m Non-learning
m Protests
m Working to rule
m Doing as little as possible
Active Resistance m Slowing down
m Persona! withdrawal (increased time off the job)
m Committing “errors”·
m Spoilage
m Deliberate sabotage
The sources of resistance to change within organisations are classified into organisational sources
of resistance and individual sources of resistance.
Organisational Sources of Resistance. According to Daniel Katz and Robert L Khan, organisational
sources of resistance can be divided into following six general groups.
m Over determination or structural inertia refers to the tendency of an organisation’s rules, policies
and structure to maintain the existing conditions and therefore resist change even when change
would benefit the organisation more than stability.
m When an organisation tries to change one of its division or part of the division without
recognizing the interdependence of the division with other divisions of the organisation, then
it is said to have a narrow focus of change. Often a part of division cannot be changed without
changing the whole division.
m Group inertia may weaken an individual’s attempt to bring about change.
m Resistance may also take the form of threatened expertise if the change lends to weaken special
expertise built after years of experience. Organisational restructuring that involves reducing
the number of job categories often meets this kind of resistance.
m Any change that may alter the power relationships within an organisation may meet the form
of resistance known as ‘threatened power’.
m Resistance may occur when a change threatens quantum of resource allocation from one part
of the organisation to another.
Individuals Sources of Resistance. According to researchers, individuals have the following reasons
for resisting change:
m Simple habits create a lot of resistance. Most people prefer to do their work the way they did it
last week rather than learn a new approach.
m Perhaps the biggest cause of employee resistance to change is uncertainty. In the face of
impending change, employees are likely to become anxious and nervous. They worry about
their ability to meet new job demands therefore, leading to feeling of job insecurity.
m Some people resist change to avoid feeling of loss. For example, many organisations change
interventions and alter work arrangements, thus disrupting existing social networks. Social
relationships are important to most people, so they resist any change that might adversely
affect those relationships. Change may also threaten people’s feelings of familiarity and self-
confidence.
m People may resist change because their perceptions of underlying circumstances differ from
the perceptions of those who are promoting the change.
Overcoming Resistance to Change

Managers need not abandon planned change in the face of resistance. Before recommending specific
approaches to overcome resistance, there are three key conclusions that should be kept in mind. First,
an organisation must be ready for change. Second, the top management should inform the employees
about the process of change. Third, the employees’ perceptions or interpretations of a change should
be considered.
The following methods of overcoming-resistance to change are as follows:
m Participation. Participation is generally considered the most effective technique for overcoming
resistance to change. Employees who take part in planning and implementing change are
better able to understand the reasons for the change than those who are not involved. They
become committed to the change and make it work. Employees who have the opportunity to
express their own ideas and to understand the perspectives of others are likely to accept change
gracefully. It is a time consuming process.
m Education and Communication. Educating employees about the need for and the expected
results of an impending change help to reduce their resistance. Managers should maintain an
open channel of communication while planning and implementing change. However, it is also
a time consuming process.
m Facilitation of Change. Knowing ahead of time that employees are likely to resist change then the
manager should do as much as possible to help them cope with uncertainly and feeling of loss. In-
troducing change gradually, making only necessary changes, announcing changes in advance
and allowing time for people to adjust to new ways of doing things can help reduce resistance.
m Force-Field Analysis. In almost any situation where a change is being planned, there are forces
acting for and against the change. In force-field analysis, the manager list each set of forces and
then try to remove or minimize some of the forces acting against the change.
m Negotiation. Where someone or some group will clearly lose out in a change and where that
group has considerable power to resist, there negotiation is required. Sometimes it is a relatively
easy way to avoid major resistance.
m Manipulation and Cooperation. This is followed when other tactics will not work or are too
expensive. It can be quick and inexpensive; However, it can lead to further problems if people
feel manipulated.
m Explicit and Implicit Coercion. This is adopted where speed is essential and where the change
initiators possess considerable power. It is speedy and can overcome resistance.
ORGANISATIONAL DEVELOPMENT
Meaning of Organisational Development
Organisational Development (OD) is a systematic, integrated and planned approach for launching
and diffusing change in organisations. Organisation development is a long-range effort to improve an
organisations problem-solving and renewal processes, particularly through a more effective and
collaborative management of organisation culture with special emphasis on the culture of formal
work teams with the assistance of a change agent, or catalyst, and the use of the theory and technology
of applied behavioural science, including action research.
The term Organisational Development (OD) refers to a broad range of behavioural science based
strategies used to diagnose the need for change in organisations and to implement changes when
necessary. OD can be defined as a technique for bringing change in the entire organisation, rather
than focusing attention on individuals to bring change easily in the entire organisation.
Nature of Organisational Development

OD is a general strategy or approach to organisational change that is employed to analyze and
diagnose the sources of organisational problems and to develop and implement action plans for their
solution. According to Bennis, OD has the following characteristics;
m It is an educational strategy for bringing planned change.
m It relates to real problems of an organisation.
m Laboratory training methods based on experienced behaviour are primarily used to bring
change.
m Change agent applying OD technique for change is external to the forms of consultants.
m There is a close working relationship between change agents and the people who are being
changed. The relationships involve mutual trust, joint goals, means, and mutual influence.
m The change agents share social philosophy about human value. They are humanists seeking to
get a humanistic philosophy in organisation.
Process of Organisational Development

The Organisational Development (OD) process is complicated and it takes long time to complete the
process. It takes minimum of one year and sometimes continues indefinitely. There are different
approaches to OD process but the typical process consists of seven steps, viz., initial diagnosis, data
collection, data feedback and confrontation, action planning and problem solving, team building,
inter group development and evaluation and followup.
1. Initial Diagnosis. If executives recognize that there are inadequacies within organisation which
can be corrected by OD activities, it is necessary to find out the professional and competent
people within the organisation to plan and execute OD activities. If competent people are not
available within the organisation the services activities are to be taken. The consultants adopt
various methods including interviews, questionnaires, direct observation, analysis of documents
and reports for diagnosing the problem.
2. Data Collection. Survey method is used to collect the data and information for determining
organisational climate and identifying the behavioral problems.
3. Data Feedback and Confrontation. Data collected are analyzed and reviewed by various work
groups formed from this purpose in order to mediate in the areas of disagreement or
confrontation of ideas or opinions and to establish priorities.
4. Selection and Design of Interventions. The interventions are the planned activities that are
introduced into the system to accomplish desired changes and improvements. At this stage the
suitable interventions are to be selected and designed.
5. Implementation of Intervention. The selected intervention should be implemented. Intervention
may take the form of workshops, feedback of data to the participants, group discussions, written
exercises, on-the-job activities, redesign of control system etc. Interventions are to be implemented
steadily as the process is not a one-short, quick cure? for organisational malady. But it achieves
real and lasting change in the attitudes and behavior of employees.
6. Action planning and problem Solving. Groups prepare recommendations and specific action
planning to solve the specific and identified problems by using data collected.
7. Team Building. The consultants encourage the employees throughout the process to form into
groups and teams by explaining the advantages of the teams in the OD process, by arranging
joint meetings with the managers, subordinates etc.
8. Inter group Development. The consultants encourage the inter group meetings, interaction
etc., after the formation of groups/teams.
The main features of OD are as follows :
1. Long-range Effort 2. Broad Based 3. Systems view
4. Dynamic Process 5. Research Based 6. Normative Educational Strategy.
Interventions of Organisational Development

OD interventions refer to various activities which consultant and client organisation perform for
improving organisational functioning by enabling organisation members to better manage their team
and organisation cultures. French and Well have defined OD interventions as “sets of structured
activities in which selected organisational units (target groups or individuals) engage with a task or
a sequence of tasks where the task goals are related directly or indirectly to organisational improvement.
Interventions constitute the action thrust of organisation development; they make things happen and
are what is happening.”
These interventions can be clubbed into 15 groups and they are diagnostic, team-building, inter-
group activities, survey feedback methods, education and training programmes, techno-structural
activities, process consultation, the management grid, meditation and negotiation activities, coaching
and counselling and planning and goal setting activities.
(1) Survey Feedback. It recounts to an approach survey through well planned assessment or
Interviews. It covers the feedback to the customer organisation. It has a demand and significance
in a genuine situation. The attitude survey can have a purpose to measure the process; for
instance, communication, decision making and leadership at different levels. The data produced
under this system is perceptual and attitudinal.. A review of the product is prepared in a group
discussion. Generally feedback of results is specific to the group which prepares the data. As a
result strategies are planned to resolve the organisational problems. Consequently, the process
of survey feedback includes: collection of data, feedback, development of action plan and follow-
up. Therefore, to ensure authentic results, the survey should be applicable and dependable.
(2) Management Grid. The method urbanized by Robert Blake and Jane S. Mouton is a step to
move toward. This Grid represents a rational support of managing people. Growth of
management skills from beginning to end grid program involves wide range of included and
instrumented activities are the ways having investigational and planned conditions. The
members are secondary to be pleased about the advances to integrate people and their invention.
(3) Team Building. Team building is an attempt to assist the work group to identify, diagnose and
solve its own problems. Actually groups develop their own norms of behaviour which pressurise
the persons and group behaviour. Organisation is a system to interconnect with groups. OD
considers that work groups are the teams which are spinning around to introduce changes in
the organisation. Team building actions are taken to develop a range of groups in an organisation
like permanent work teams, task forces, committees etc. Team building actions focus on finding,
task achievement, team relationships and organisational process. The component groups in
team building activity are: the external advisors, the group leader and member of the group. In
team building movement, associates meet and talk about troubles connecting to their course-
work. It obtain sincere and courageous argument. In the team building movements, the associate
adds the sequence relating to their personal observation of issues, problems and task relationship.
(4) Sensitivity Training. Sensitivity training is a small-group interaction under stress in an
unstructured encounter group, which requires people to become sensitive to one another’s
feelings in order to develop reasonable group activity. In sensitivity training, the actual technique
employed is T-group. T-group has several characteristic features:
m The T-group is generally small, from ten to twenty members
m The group begins its activity with no formal agenda
m The primary role of trainer is to call attention of members from time to time to the ongoing
process within the group
m The procedure lends to develop introspection and self-examination, with emotional levels
of involvement and behaviour.
The objectives of such training are increased openness with others, more concern for others,
increased tolerance for individual differences, less ethnic prejudice, understanding of a group
process, enhanced listening skills and increased trust and support.
(5) Four System Management. Rensis Likert’s four System Management has given four stage to
represent the organisational values to include the essential collection of job bearing
According to Likert management philosophy can be classified into four systems they are:
(i) Exploitative Autocratic (ii) Benevolent Autocratic
(iii) Consultative Democratic (iv) Participative Democratic
This theory explains that three basic concepts of system has four management which will help
making the organisation effective they are:
(a) To use the principle of supportive relationship in the organisation
(b) To use the group decision making and group methods of supervision in the organisation,
and
(c) To emphasize more on the high performance goals.
(6) Management by Objectives (MBO). It is another important tool of O.D and involves the process
of educating the concerned persons about M.B.O, agreement upon clear cut quantifiable
objectives, evaluation of objectives and feedback for deviation and coercive action. . M.B.O is
wide-ranging overall managerial philosophies that focuses upon joint goal setting and
synthesize the individual’s goal to organisational goals. The entire organisation will have the
feeling of unity as all levels of management of an organisation are involved in goal setting. The
programmes relating to M.B.O can be effective if they are properly implemented and needs the
support of the top management
(7) Process Consultation. It can be described as the set of activities on the part of the consultant that
helps the client to perceive, understand and act upon the process events that take place in the
client’s environment. Process consultation concentrates on the analysis of process of activities
like communication, leadership etc. It also aims to attempts to develop initial contacts, define
relationships, selecting the method of work, collection of data and diagnosis. Process consultation
is a method of intervening in an on going system and is designed to change attitudes, values,
interpersonal skills, group norms, and cohesiveness and other process variables.
(8) Contingency Approach. This approach was given by P. Lawrence and J. Lorseh. It is based on
the principle that an organisation is a multifaceted social system. Its behaviour must be included
into a united effort to enable it to cope with the environment. Theoretically individuals in
different departments have different orientations related to the tasks they perform. Genuinely,
the organisational units in their regular operations they are differentiated along with their
direction. It appears that with the task discrimination coordination is not possible. According
to contingency approach separation and combination are possible for total organisation’s
effectiveness with the help of integrative devices. To sum up, high organisational presentation
is well-suited with the existence of both separation as well as combination which are required
as per the stress of their immediate environment. The contingency approach can be useful as an
OD intervention in industrial organisations in the form of inter group argument meetings of
concerned departmental persons.
(9) Role Analysis. In the presentation of their individual roles persons manifest certain behaviour
which may upset team efficiency. At times it is established that the persons are unambiguous
about their own expected behaviour from the view point of other members of the team. In these
circumstances the role analysis procedure is used to clarify the role expectations and obligations
of the members of a team. The ensuing role requirements and the expected behavioural
mechanism of each other help the member to enjoy an equally acceptable behaviour in the team
work. In this technique, the individual role players analyze the focal role of the individuals.
(10) Inter-group Activity. Interpersonal relations are not unusual features in organisational
performance . Under these circumstances, inter-group motion spotlights to improve the
relationships between the groups. It helps in the interaction and communication between the
work groups which eventually avoids dysfunctional inimical competitiveness among them.
Inter-group team building entails the procedure of discrimination and combination.
(11) Organisation Monitoring. It monitors the activities of group of members and gets the feedback
from the members of several other groups about how is it being professed. Organisational
monitoring is used when there is complexity with other department in the organisation. A
meeting is called and response is sought from other department. During the meeting the correct
picture emerges which will determine many mistakes committed between two groups.
(12) Third Party Peace Making Intervention. This intervention is the foundation of the thoughts
to understand the conflicts and their resolutions at the interpersonal level. It helps to confront
the method of resolving the conflicts takes place between two parties who are aware of the
existence of the conflicts and want to confront the issues. The advisor as a third party must
be accomplished in the art of identifies the conflicts and use confrontation as technique.
(13) Job Design/Redesign. It is task -technology connected approach and aims at making changes
in the work procedure of the groups of employees. Job design occupies a well planned
reorganisation of a job. On the whole it focuses to develop worker’s motivation, commitment,
performance, job satisfaction etc., through job enrichment, job engineering, job rotation, job
enlargement and socio-technical system.
(14) Quality Circles. Quality Circles are semi-autonomous work groups with six persons who
volunteer to talk about and solve feature related problems during working hours. It has impact
on working conditions, employee’s commitment and self development of employees.
(15) Counselling. Counselling is the method to extend the help by a manager to his assistant to
enhance his prospective. It plans at hypothesizing and empathize with the workers. It assists
to bring about self consciousness in the worker about his capability. Single or group of
interventions may be used to resolve the issues.
CONCEPT OF ORGANISATIONAL EFFECTIVENESS

Meaning
Organisational effectiveness is defined as an extent to which an organisation achieves its
predetermined objectives with the given amount of resources and means without placing undue
strain on its members.
Sometimes efficiency and effectiveness are used as synonyms. However, there exists a difference
between the two concepts. Therefore, it is important to explain the difference between the concepts
of effectiveness and efficiency to understand why organisations may be effective but not efficient, or
efficient but not effective. Effectiveness is a broad concept and takes into account a collection of
factors both inside and outside an organisation. It is commonly referred to as the degree to which
predetermined goals are achieved. On the other hand, efficiency is a limited concept that pertains to
the internal working of an organisation. It refers to an amount of resources used to produce a
particular unit of output. It is generally measured as the ratio of inputs to outputs.
Further, effectiveness concentrates more on human side of organisational values and activities
whereas efficiency concentrates on the technological side of an organisation. However the concept
of effectiveness is not simple because there are many approaches in conceptualizing this term.
Three Approaches of Orgnisational Effectiveness

1. Goal Approach. Goal attainment is the most widely used criterion of organisational
effectiveness, in goal approach, effectiveness refers to maximization of profits by providing
an efficient service that leads to high productivity and good employee morale. Campbell has
suggested several variables such as, quality, productivity, efficiency, profit, turnover, accidents,
morale, motivation and satisfaction, which help in measuring organisational effectiveness.
However, none of the single variable has proved to be entirely satisfactory. The main limitation
of this approaches the problem of identifying the real goals rather than the ideal goals.
2 . Functional Approaches. This approach solves the problem of identification of organisational
goals. Parson states that since it has been assumed that an organisation is identified in terms of
its goal, focus towards attainment of these goals should also aim at serving the society. Thus,
the vital question in determining effectiveness is how well an organisation is doing for the
super-ordinate system. The limitation of this approach is that when organisations have
autonomy to follow its independent courses of action, it is difficult to accept that ultimate goal
of organisation will be to serve society. As such, it cannot be applied for measuring organisational
effectiveness in terms of its contributions to social system. Both the goal and functional approach
do not give adequate consideration to the conceptual problem of the relations between the
organisation and its environment.
3. System Approach. System-resource approach of organisational effectiveness emphasizes on
interdependency of processes that relate the organisation to its environment. The interdependence
takes the form of input-output transactions and includes scarce and valued resources such as
physical, economic and human for which every organisation competes. The limitation of this
model is that an acquisition of resources from environment is again related to the goal of an
organisation. Therefore, this model is not different from the goal model. Thus, discussion of
organisational effectiveness leads to the conclusion that there is no single indicator of
effectiveness. Instead, the approach should focus on operative goals that would serve as a
basis for assessment of effectiveness.
Managerial effectiveness is a causal variable in organisational effectiveness. It has been defined
in terms of organisational goal-achieving behaviour, i.e., the manager’s own behaviour
contributes to achievement of organisational goals.
Factors Affecting Organisational Effectiveness

Likert has classified the factors affecting organisational effectiveness into following three variables:
m Causal Variables. Causal variables are those independent variables that determine the course
of developments within an organisation and the objectives achieved by an organisation. These
causal variables include only those independent variables, which can be altered by organisation
and its management. Causal variables include organisation and management’s policies,
decisions, business and leadership strategies, skills and behaviour.
m Intervening Variables. Intervening variables according to Likert are those variables that reflect
the internal state and health of an organisation. For example, loyalties, attitudes, motivations,
performance goals and perceptions of all the members and their collective capacity for effective
interaction, communication and decision-making.
m End-Result Variables. End-Result variables are the dependent variables that reflect
achievements of an organisation such as its productivity, costs, loss and earnings.
Inter-Relationship of Variable. The three variables such as causal, intervening and end-result
are interrelated. The inter-relationship may be visualized as psychological process where stimuli
or causal variables acting upon the organism or intervening variables and creating certain
responses or end-result variables. The causal, intervening and end-result variables comprise a
complex network with many interdependent relationships. The causal variables are the key to
organisational effectiveness. Hence, to make organisation effective, attempt should be made to
improve the causal variables, while other variables will be corrected or improved automatically
because of causal variables. Figure shows the relationship among various variables.
Casual Variables Intervening Variables End Results Variables
· Leadership Style · Commitment to Objective · Production
· Management Decision · Motivation and Morale · Cost
· Organizational · Communication · Sales
Philosophy Leadership Skills · Earning
Objectives and policies · Conflict Resolution · Turnover
· Technology · Decision–Making · Management Union
Relationship
FIGURE Inter-relationship of Variables
The above model is quiet simple. The effectiveness model can be presented in a more complex way
i.e. at three different levels such as the individual, group and organisational levels in order to make the
organisation more effective.
Effectiveness Through Adaptive–Coping Cycle

The organisation must develop a system through which it can adapt or cope with the environmental
requirements; Schein has suggested that an organisation can do this through the adaptive coping
cycle, which consists of various activities that enable an organisation to cope with the dynamics of
environment.
Adaptive-Coping cycle is a Continuous Process. There are six stages in the adaptive-coping cycle as
follows:
1. Sensing of Change. The first stage is the sensing of change in internal or external environment.
Most of the organisations have adaptive sub-system such as marketing research, research and
development and other similar devices for effective coping with the environment.
2. Importing the Relevant Information. Organisations must be able to take the relevant information
from the environment, which constitutes the input.
3. Changing Conversion Process. The organisation takes the inputs from environment for further
processing, normally known as conversion process.
4. Stabilizing Internal Changes. The fourth stage of the cycle is to stabilize an internal sub-
system of an organisation, which is dependent on external, sub-system. This is because change
in one may affect other and this change can be either positive or negative.
5. Exploring New Outputs. When the internal change is stabilised, the organisation can export
new outputs, which are in accordance with environment requirements.
6. Obtaining Feedback. The last stage in the cycle is to obtain feedback on the outcome of the
changes for further sensing the state of the external environment and the degree of integration
of internal environment. This is similar to first stage.
A successful coping suggests that all the stages have to be successfully-negotiated and failure
at any of these stages may result into ineffectiveness.
Following are the major organisational conditions for effective coping:
m There should be an effective communication system through which reliable and valid
information can be passed.
m There should be enough internal flexibility so that changes can be brought and absorbed
by an organisation.
m Successful coping requires integration and commitment to organisational goals, which
provide willingness for change.
m There should be supportive internal climate, which can support good communication,
reduction in inflexibility and stimulation of self-protection.
Maintaining organisational effectiveness requires additional efforts, especially when the major
organisational changes take place.

1. Individual who achieve the goal through 9. This model focuses better employee satisfac-
other people is/are tion and security. Under this model
(A) Individual (B) Group organisations satisfy the security and wel-
(C) Manager (D) All of these fare needs of employees.
2. A consciously coordinated social unit, com- (A) Custodial model
posed of two or more people, that function (B) Social psychology
on a relatively continuous basis to achieve a (C) Anthropology
common goal or set of a goal is (D) All of these
(A) Organisational Change 10. In _________ the manager has the power to
(B) Organisational command his subordinates to do a specific
(C) Organisational stress job. Management believes that it knows what
(D) All of these is best for an organisation and therefore, em-
ployees are required to follow their orders.
3. Which one gave management skill?
(A) Custodial model
(A) Robert Katz (B) Joe Gracie
(B) Autocratic model
(C) Berne (D) All of these
(C) Anthropology
4. Management skills is concerned with
(D) All of these
(A) Technical skill (B) Human skill
11. _______is useful in measuring, understand-
(C) Conceptual skill(D) All of these
ing and changing attitude, communication
5. The ability to apply specialized knowledge pattern, the way in which group activities
or expertise is called can satisfy individual need and in group
(A) Technical skill (B) Human skill decision making process.
(C) Conceptual skill(D) All of these (A) Psychology
6. The ability to work with, understand and (B) Social Psychology
motivate other people, both individually and (C) Anthropology
in group is concerned with (D) All of these
(A) Technical skill (B) Human skill 12. The study of societies to learn about human
(C) Conceptual skill(D) All of these being and their activities. It is the study of
7. The mental ability to analyse and diagnose the human race, in particular, its culture.
complex situation is called Culture has significant influence of human
(A) Technical skill (B) Human skill behaviour.
(C) Conceptual skill(D) All of these (A) Psychology /sociology
8. A Field of study that investigates the impact (B) Social Psychology
that individual, group and structure have (C) Anthropology
on behaviour within organisations is (D) All of these
known as 13. The concepts that organisations are becom-
(A) Organisational change ing more heterogeneous in terms of gender,
(B) Organisational behaviour race ethnicity and inclusion of others diverse
(C) Organisational stress groups is
(D) All of these (A) Psychology (B) Work diversity
(C) Anthropology (D) All of these
14. The constant attainment of satisfaction 21. The voluntary and involuntary permanent
through the continuous improvement of all withdrawal from an organisation
organisational processes is (A) Efficiency (B) Turnover
(A) Quality management (C) Anthropology (D) All of these
(B) Social Psychology 22. Discretionary behaviour that is not part of
(C) Anthropology an employee’s formal job requirement, but
(D) All of these that nevertheless promotes the effective func-
15. Reconsidering how work would be done tioning of the organisation is
and an organisation structured if it were (A) Efficiency
starting over (B) Process re-engineering
(A) Process re-engineering (C) Organisation citizenship behaviour
(B) QM (D) All of these
(C) Anthropology 23. An individual capacity to perform the vari-
(D) All of these ous tasks in a job is
16. Putting employees in charge of what they (A) Ability
do (B) Process re-engineering
(A) Process re-engineering (C) Anthropology
(B) QM (D) All of these
(C) Empowering employees 24. Any relatively permanent change in
(D) All of these behaviours that occurs as a result of experi-
17. Situation in which individual are required ence is
to define right and wrong conduct (A) Improve productivity
(A) Process re-engineering (B) Capability
(B) QM (C) Learning (D) None of these
(C) Ethical dilemmas 25. Theory of classical conditioning was given
(D) All of these by
18. A response that is affected by an indepen- (A) Ivan Pavlov (B) Elton Mayo
dent variable. (C) R.P. Quinn (D) None of these
(A) Dependent variable 26. Theory of classical conditioning grew out of
(B) Process re-engineering experiment conducted by
(C) Anthropology (A) Cats (B) Dogs
(D) All of these (C) Rats (D) None of these
19. A performance measure that includes effec- 27. A type of conditioning in which an indi-
tiveness and efficiency. vidual responds to some stimulus that
(A) Dependent variable would not ordinarily produce such a re-
(B) Process re-engineering sponse is known as
(C) Productivity (A) Operant conditioning
(D) All of these (B) Classical conditioning
(C) Both A & B
20. The ratio of effective output to the input re-
quired to achieve it (D) None of these
(A) Efficiency 28. A type of conditioning in which desired vol-
(B) Process re-engineering untary behaviours leads to a rewards or pre-
vents punishment
(C) Anthropology
(A) Operant conditioning
(D) All of these
(B) Classical conditioning (C) Both A & B
(D) None of these 38. Learning techniques that allow individual
29. In OB studies which of the following deter- to manage their own behaviour so that less
minant of behaviour in organisation external management control is necessary
(A) Individual (B) Group (A) Continuous reinforcement
(C) Structure (D) All of these (B) Self management
30. Which of the following field contribute to (C) Both A & B
OB? (D) None of these
(A) Psychology (B) Social Psychology 39. The voluntary and non voluntary perma-
(C) Anthropology (D) All of these nent withdrawal from an organisation is
31. Which of the following field contribute to known as
OB mainly at the individual level analysis? (A) Absenteeism
(A) Psychology (B) Social Psychology (B) Employee turnover
(C) Anthropology (D) All of these (C) Both A & B
32. The models of organisational behaviour are (D) None of these
(A) Autocratic model 40. An individual attitude towards his job is
(B) Custodial model (A) Job satisfaction
(C) Supportive model (B) Employee turnover
33. The managerial grid was given by (D) None of these
(A) Rensis likerts (B) Blake and mouton 41. Summation of the attitude of employees is
(C) Kurt Lewin (D) All of these called
(A) Motivation (B) Morale
34. The failure to report to work is known as
(A) Efficiency (B) Absenteeism
(C) Both A & B (D) None of these 42. Leaders create in-groups and out group and
subordinate within group status will have
35. Systematically reinforcing each successive higher performance rating, less turnover,
step that moves an individual closer to de- and greater job satisfaction
sired response
(A) Charismatic leadership
(A) Efficiency
(B) Transformational leaders
(B) Shaping behaviour
(C) LMX theory
(C) Both A & B
(D) All of these
(D) None of these
43. Operant conditioning is given by
36. A desired behaviour is reinforced each time
(A) B.F.Skinner (B) Elton Mayo
it is demonstrated by
(C) R.P.Quinn (D) None of these
(A) Continuous reinforcement
(B) Shaping behaviour 44. “People can learn through observation di-
rects experience”. It comes under
(A) Operant conditioning
37. A desired behaviour is reinforced often
(B) Classical conditioning
enough to make the behaviour worth repeat-
ing but not every it is demonstrated is (C) Social learning
(A) Continuous reinforcement (D) None of these
(B) Intermittent reinforcement 45. Evaluate statements concerning objects,
people or events.
(A) Attitude (B) Moral 53. _________is a personality dimension that
(C) Both A & B (D) None of these describe someone who is responsible, de-
46. Basic convictions that a specific mode of con- pendable, agreeableness.
duct or end state of existence is personally (A) Extraversion (B) Introversion
or socially preferable to an opposite or con- (C) Conscientiousness
verse mode of conduct or end state of exist- (D) None of these
ence. 54. ________is the degree to which people be-
(A) Attitude (B) Value lieves they are masters of their own fate.
(C) Both A & B (D) None of these (A) Locus of Control
47. Which of the following is a cognitive com- (B) Capability
ponent of an attitude? (C) Cognitive dissonance
(A) An Opinion & belief segment (D) None of these
(B) An Emotional segment 55. _______is individual degree liking and un-
(C) Both A & B linking themselves.
(D) None of these (A) Self worth (B) Self esteem
48. Which of the following is an affective com- (C) Self efficiency (D) None of these
ponent of an attitude? 56. _______is individual ability to adjust his
(A) An opinion segment behaviours to external, situational factors.
(B) An Emotional/feeling segment (A) Self esteem (B) Self efficiency
(C) Both A & B (D) None of these (C) Self monitoring (D) None of these
49. _____is the degree to which a person identi- 57. _______is a process by which individual
fies with his job and considers his job and organise and interpret their sensory impres-
consider his performance important to self sion in orders to give meaning to their envi-
worth. ronment.
(A) Job Satisfaction (B) Capability (A) Motivation (B) Morale
(C) Job Involvement (D) None of these (C) Perception (D) None of these
50. _______________ is the degree to which an 58. _____are individual who reports unethical
employee’s identifies with a particular practices by their employers to outsiders.
organisation and its goals. And wishes to (A) Motivation (B) Whistle-blowers
maintain membership in the organisation. (C) Both A & B (D) None of these
(A) Job satisfaction
59. _________is a designed work group defined
(B) Organisation Commitment by the organisation structure.
(C) Learning (A) Informal group (B) Morale
(D) None of these (C) Formal group (D) None of these
51. Who proposed the theory of cognitive dis- 60. A set of expected behaviours patterns attrib-
sonance? uted to someone occupying a given position
(A) Leon Festinger (B) Edwin Locke in a social unit is known as
(C) Taylor (D) None of these (A) Roles (B) Status
52. Any incompatibility between 2 or more atti- (C) Both A & B (D) None of these
tude or between behaviours and attitude is 61. _______is an individual view of how he or
known as she is supposed to act in a given situation.
(A) Cognition (B) Capability (A) Roles Expectations
(C) Cognitive dissonance (B) Role Perceptions
(D) None of these (C) Both A & B (D) None of these
62. A situation in which an individual is con- (A) Personality (B) Voice
fronted by divergent role expectations is (C) Both A & B (D) None of these
known as 72. Enduring characteristics that describe an in-
(A) Role conflicts (B) Role identity dividual behaviour
(C) Both A & B (D) None of these (A) Personality Trait (B) Voice
63. A socially rank given to group member by (C) Both A & B (D) None of these
others is referred to 73. A personality test taps four characteristics
(A) Roles (B) Status and classifies people into 1 to 16 personal-
(C) Both A & B (D) None of these ity types
64. ________are the teams that use computer (A) Personality (B) MBTI Test
technology to tie together physically dis- (C) Both A & B (D) None of these
persed member in order to achieve a com- 74. Model of personality includes
mon goal. (A) Extroversion (B) Agreeableness
(A) Virtual Teams (B) Self Managed team (C) Both A & B (D) All of these
(C) Both A & B (D) None of these 75. A personality dimension describing some-
65. A work generates positive synergy through one who is sociable gregorious and asser-
coordinated efforts. tive
(A) Virtual Teams (B) Self Managed team (A) Extroversion (B) Agreeableness
(C) Both A & B (D) None of these (C) Conscientiousness
66. ________is a group whose individual efforts (D) All of these
result in a performance that is greater than 76. A personality dimension describing some-
the sum of individual inputs one who is good natured cooperative and
(A) Virtual Teams (B) Self Managed team trusting is
(C) Work Team (D) None of these (A) Extroversion (B) Agreeableness
67. ________is a stage in group development (C) Emotional Stability
characterized by intergroup conflicts. (D) All of these
(A) Norming (B) Storming 77. A personality dimension describing some-
(C) Both A & B (D) None of these one who is responsible, dependent and per-
68. _________ is a stage in group development sistent and organised is
characterized by close relationship and co- (A) Extroversion (B) Agreeableness
hesiveness. (C) Conscientiousness
(A) Norming (B) Storming (D) Emotional Stability
(C) Both A & B (D) None of these 78. A personality Dimension that characteris-
69. How employees can express their dissatis- tics someone as calm, self confident, secure
faction verses nervous, depressed and insecure
(A) Exit (B) Voice (A) Extroversion (B) Agreeableness
(C) Both A & B (D) None of these (C) Locus of control
(D) Emotional Stability
70. How employees can express their dissatis-
faction 79. A personality dimension describing some-
(A) Loyalty (B) Neglect one in terms of imagination, sensitivity and
curiosity is
(A) Openness to experience
71. _________is the sum or total number of
(B) Agreeableness
ways in which an individual reacts and in-
(C) Conscientiousness
teracts with others.
(D) All of these
80. Degree to which an individual is pragmatic give meaning to their environment is
maintain emotional distance and believe (A) Emotion (B) Perception
that end can justify means (C) Both A & B (D) None of these
(A) Locus of control 87. People selectively interpret what they see on
(B) Machiavellianism the basis of their interest, background and
(C) Both A & B experience and attitude.
(D) None of these (A) Emotion
81. Aggressive involvement in a chronic, inces- (B) Selective perception
sant struggle to achieve more and more in (C) Both A & B
less and less time and, if necessary, against (D) None of these
the opposing efforts of others things and oth-
88. Evaluation of person characteristics that are
ers people.
affected by comparison with others people
(A) Type A Personality recently encountered who rank higher or
(B) Type B Personality lower on the same characteristics.
(C) Both A & B (A) Contrast effects
(D) None of these (B) Selective perception
82. Rarely harried by the desire to obtain a (C) Both A & B
widely increasing number of things or par- (D) None of these
ticipate in an endless growing series of
89. Attributing one own characteristics to other
events in an ever decreasing amount of time.
people is
The statement is
(A) Contrast effects (B) Projection
(A) Type A Personality
(B) Type B Personality
(C) Both A & B 90. A situation in which one person inaccurately
perceive a seconds person and the resulting
(D) None of these
expectations cause the second person to be-
83. Intense feeling that are directed at someone have in way consistent with the original
or something is perception
(A) Emotion (B) Personality (A) Self-fulfilling prophecy/Pygmalion
(C) Both A & B (D) None of these (B) Selective Perception
84. An assortment of non cognitive skills and (C) Both A & B
capabilities that influence a person ability (D) None of these
to succeed in coping with environmental de-
91. Individual make decision by constructing
mands and pressure is
simplified models that extracts the essential
(A) Emotion intelligence features from problem without capturing all
(B) Personality their complexity
(C) Both A & B (D) None of these (A) Contrast effects
85. Voluntary action that violates established (B) Bounded rationality
norms that threaten the organisation, its (C) Both A & B
member and both is (D) None of these
(A) Emotion
92. Judgement shortcuts in decision making is
(B) Employee deviance called
(C) Both A & B (A) Heuristics
(D) None of these (B) Selective perception
86. A process by which individual organise, in- (C) Both A & B (D) None of these
terprets their sensory impression in order to
93. An increased commitment to a pervious de- direction. People are ready to accept respon-
cision in spite of negative information. sibility.
(A) Heuristics (A) X (B) Y
(B) Escalation of commitment (C) Z (D) None of these
(C) Both A & B 102. Need that are satisfied externally, physi-
(D) None of these ological and safety needs is
94. The process that account for an individual (A) Lower level need
intensity, direction and persistence of efforts (B) Higher order need
towards attaining a goal is (C) Both A & B (D) None of these
(A) Motivation 103. Need that are satisfied internally, social, es-
(B) Escalation of commitment teem and self actualisation needs is
(C) Both A & B (D) None of these (A) Lower level need
95. Need hierarchy theory was given by (B) Higher order need
(A) William Ouchi (B) Abraham Maslow (C) Both (A) & (B)
(C) Herbert Simon (D) Elton Mayo (D) None of these
96. Abraham Maslow lower need include 104. Two factor theory was given by
(A) Physiological & safety (A) Abraham Maslow
(B) Security (B) Fredrick Herzberg
(C) Social and need (C) Chester Barnard
( D) Ego need (D) All of these
97. Which is/are the highest’s need of the 105. Dissatisfies factor are _____ factors.
Maslow hierarchy? (A) Maintenance (B) Hygiene
(A) Physiological (B) Social (C) Job context (D) All of these
(C) Ego need 106. The change in specialization and integra-
(D) Self actualization need tion in organisation context is called
98. Abraham Maslow’s Highest need include (A) Coordination
(A) Esteem & self actualization (B) Cooperation
(B) Ego need (C) Organisation structuring
(C) Social need (D) All of these
(D) Physiological need 107. Working condition, status and salary are a
99. Douglas McGregor propounded the (A) Maintenance (B) Hygiene factors
(A) Theories X and Y (C) Job context (D) All of these
(B) Theory Z 108. Achievements and growth factors related to
(C) ERG (A) Motivator factors
(D) None of these (B) Hygiene
100. Which theory is traditional and narrow ap- (C) Both (A) & (B) (D) All of these
proach of human nature. Average worker 109. Reasonability, Recognition & Growth are
are lazy, passive, and prefer to led by supe- (A) Motivator (B) Hygiene
rior
(C) Both (A) & (B) (D) All of these
(A) X (B) Y
110. Salary and Company policy and adminis-
(C) Z (D) None of these
tration, working condition are
101. Which theory is optimistic dynamic and flex- (A) Motivator (B) Hygiene
ible. People are not lazy, and passive by na-
ture, they will exercise self control and self
111. Theory Z is related to (A) Theories X and Y
(A) India (B) America (B) Theory Z
(C) Japanese (D) None of these (C) Goal setting theory
112. Theory Z was developed by (D) None of these
(A) William Ouchi (B) Herbert Simon 122. The individual beliefs that he or she is ca-
(C) Chester Barnard (D) All of these pable of performing a task is
113. Feature of theory Z is (A) Motivation (B) Self efficiency
(A) Trust (C) ERG (D) None of these
(B) Employee development 123. Individual compare their job inputs and out-
(C) Coordination comes with those of others and then re-
(D) All of these sponds to eliminate any inequities
114. The assumption that employees dislike (A) Equity theory (B) Theory Z
work, are, lazy dislike responsibility, and (C) ERG (D) None of these
must be coerces to perform 124. The strength of an tendency to act in a cer-
(A) Theory X (B) Theory Y tain way depends on the strength that the
(C) Theory Z (D) None of these act will followed by a given outcomes and
115. The assumption that employees dislike on the attractiveness of that outcome to the
work, are, creative seek responsibility, and individual is
can exercise self direction is (A) Equity theory (B) Theory Z
(A) Theory X (B) Theory Y (C) Expectancy theory
(C) Theory Z (D) None of these (D) None of these
116. Theory X greatest reliance should be placed 125. Company established benefits plan in
in which employees acquire stock as a part of
(A) Internal control (B) External control their benefits is
(C) Both (A) & (B) (D) None of these (A) Equity theory (B) Theory Z
117. Theory Y greatest reliance should be placed (C) ESOP (D) None of these
in 126. Workers are paid to fixed some for each unit
(A) Internal Control (B) External Control of production completed in
(C) Both (A) & (B) (D) None of these (A) Piece rate pay plan
118. Who gave Expectancy theory of motivation? (B) Gain sharing
(A) Victor H. Vroom (B) Herbert Simon (C) Profit sharing plan
(C) Chester Barnard (D) All of these ( D) None of these
119. There are three groups of core needs: exist- 127. Organisation wide program that distribute
ence relatedness and growth. There are in compensation based on some established
(A) Theories X and Y formula designed around accompany prof-
(B) Theory Z itability is
(C) ERG (D) None of these (A) Piece rate pay plan
(B) Gain sharing
120. Achievement, power affiliation is three im-
portant needs that explain motivation is (C) Profit sharing plan
given by (D) None of these
(A) McClelland’s (B) Herbert Simon 128. An incentive plan in which improvement in
(C) Chester Barnard (D) All of these a group productivity determine the total
121. The theory that specific and difficult goal, amount of money that is allocated is
with feedback leads to higher performance is (A) Piece rate pay plan
(B) Gain sharing (A) Forming (B) Storming
(C) Profit sharing plan (C) Norming (D) Performing
(D) None of these 139. The third stage ________in group develop-
129. Two or more individual interacting and in- ment, characteristics by close relationship
terdependent, who have come together to and cohesiveness.
achieve particular objective is (A) Forming (B) Storming
(A) Group (B) Formal group (C) Norming (D) Performing
(C) Informal group (D) None of these 140. The Fourth stage ________in group devel-
130. A designated work group defined by the opment, characteristics by when the group
organisation structure is fully functional.
(A) Group (B) Formal group (A) Forming (B) Storming
(C) Informal group (D) None of these (C) Norming (D) Performing
131. A group either formally structured or 141. The Final stage ________in group develop-
organisationally determined appears in re- ment for temporary group, characteristics by
sponse to the need for social contact is concern with wrapping up activities rather
(A) Group (B) Formal group than task performance.
(C) Informal group (D) None of these (A) Forming (B) Adjourning
132. A group composed of the individual who (C) Norming (D) Performing
reports directly to a given manager is 142. Individual who, as a part of a group, hold a
(A) Command group common attribute is called
(B) Formal group (A) Cohorts (B) Formal group
(C) Informal group (D) None of these (C) Informal group (D) None of these
133. Those working together to complete a job 143. Degree to which group members are at-
task is tracted to each other and are motivate to stay
(A) Group (B) Task group in the group
(C) Informal group (D) None of these (A) Cohorts (B) Cohesiveness
(C) Informal group (D) None of these
134. Those working together to attain a specific
objectives with which each is concerned is 144. An action of two or more substances that
(A) Interest group (B) Formal group result in an effect that is different from the
individual summation of the substances is
(A) Synergy (B) Formal group
135. Those brought together because they share
one or more common characteristics is
(A) Friendship group 145. Phenomenon in which the norms for con-
sensus overrides the realistic appraisal of
(B) Formal group
alternative course of action is
(A) Group think (B) Group Shift
136. Stages of group development includes (C) Electronic meeting
(A) Forming (B) Storming (D) None of these
(C) Norming (D) All of these
146. A change in decision risk between the group
137. The first stage _______in group develop- decision and the individual decision that
ment characteristics by great uncertainty. member within the group would make, can
(A) Forming (B) Storming be either towards conservation of greater risk
(C) Adjourning (D) All of these is
138. The seconds stage ________in group devel- (A) Group think (B) Group shift
opment, characteristics by intergroup con- (C) Electronic meeting
flicts. (D) None of these
147. A meeting in which member interacts on 154. The_________ personalities is authoritative,
computers allowing for anonymity of com- dogmatic, overprotective, controlling and
ments and aggregation of votes. critical and righteous.
(A) Group thinks (A) Parents Ego (B) Adult
(B) Group shift (C) Child (D) All of these
(C) Electronic meeting 155. The_________ personalities is mature ratio-
(D) None of these nal and objective part of person personality.
148. _________refers to the strength of an em- (A) Parents (B) Adult
ployee involvement in an organisation. (C) Child (D) All of these
(A) Organisation commitment 156. The____ personality is childish, dependent
(B) Group shift and immature part of person personality.
(C) Electronic meeting (A) Parents (B) Adult
(D) None of these (C) Child (D) All of these
149. _____are evaluated statement, are stable and 157. Transaction analyses is given by
long lasting beliefs about what is important. (A) Eric Berne (B) Herbert Simon
(A) Value (C) Chester Barnard (D) All of these
(B) Group shift 158. Which ego state is “Taught ego” state?
(C) Electronic meeting (A) Parents Ego (B) Adult
(D) None of these (C) Child (D) All of these
150. ______is an adaptive response to an exter- 159. Which state is “Thinking Ego” state?
nal situation that result in physical, psycho- (A) Parents (B) Adult
logical and/or behavioural deviations for
(C) Child (D) All of these
organisation participants.
(A) Organisation commitment 160. Which state is “Felt ego “ state?
(B) Stress (A) Parents (B) Adult
(C) Electronic meeting (C) Child (D) All of these
(D) None of these 161. Johari Window is given by
151. A process that begin when one party per- (A) Joseph Luft & Harry Inghram
ceives that another’s party have negatively (B) Herbert Simon
affected, or is about to negatively affects, (C) Chester Barnard (D) All of these
something that the first party care about is 162. Four region of johari window are
(A) Organisation commitment (A) Open area (B) Hidden self
(B) Stress (C) Blind & unknown
(C) Conflicts (D) All of these
(D) None of these 163. This area consists of details known to self
152. _________is the social transaction that takes and to others
place between two individual. (A) Open area (B) Hidden self
(A) Organisation commitment (C) Blind & unknown
(B) Stress (D) All of these
(C) Transaction analysis 164. This area compromise the knowledge about
(D) None of these self but known to others.
153. Three Ego states are (A) Open area (B) Hidden self
(A) Parents (B) Adult (C) Blind & unknown
(C) Child (D) All of these (D) All of these
165. This area compromises the knowledge about (B) Individuality of workers
the person that is known to others but not to (C) Situation
self. (D) All of these
(A) Open area (B) Hidden self 175. Causes of monotony are
(C) Blind area (D) All of these (A) Social environment
166. This area compromises the unknown about (B) Intellectual level of workers
self & unknown to others. (C) Uncompleted Task
(A) Open area (B) Unknown area (D) All of these
(C) Blind area (D) All of these
176. Which factors are useful for eliminating mo-
167. Contents theories of motivation are notony?
(A) Theories X and Y (A) Job enlargement
(B) Two factors theory (B) Job rotation
(C) ERG & need hierarchy theory (C) Working improvements
168. The process theories of motivation includes 177. Types of Fatigue are
(A) Vroom Expectancy (A) Physical (B) Mental
(B) The porter and Lawler model (C) Both (A) & (B) (D) All of these
(C) Both (A) & (B) 178. Causes of Fatigue are
(D) All of these (A) Long hours work
169. The Contemporary theories of motivation (B) Absence of rest pause
are (C) Absence of proper ventilation
(A) Equity theory (B) Carrot & stick (D) All of these
179. The paper ‘Engineer as an Economist’,
170. The Reinforcement approaches of motiva- which influence F.W. Taylor to develop his
tion are scientific Management principles was
(A) McClelland (B) Goal setting theory authored by
(C) Both (A) & (B) (D) All of these (A) Charles A. Babbage
171. _________is a mental condition, which is (B) Henry Gnatt
produced by the constant repetition of some (C) Louis D. Brandies
function over a long period of time. (D) Henry R. Towne
(A) Monotony (B) Stress 180. _______is an overall attitude of an indi-
(C) Conflicts (D) None of these vidual or group towards all aspects of their
172. _________is a mental condition in which work.
the individual exhibits negative attitude for (A) Morale (B) Job satisfaction
a particular work. It means he does not want (C) Stress (D) All of these
to do the work.
181. Motivational techniques are
(A) Monotony (B) Stress
(A) MBO (B) Job satisfaction
(C) Boredom (D) None of these
(C) Job enlargement & enrichment
173. Effects of monotony are (D) All of these
(A) Fatigue (B) Slow production
182. ______is a process whereby both manager
(C) Dissatisfaction (D) All of these and subordinate work together in identify-
174. Which of the following is the causes of mo- ing goals as well as setting standards of per-
notony? formance.
(A) Attitude of the workers (A) MBO (B) Job satisfaction
(C) Job enlargement & enrichment (A) Organisational development
(D) All of these (B) Job satisfaction
183. _______as the extents of positive feeling or (C) Change
attitude that individual towards their jobs. (D) All of these
(A) MBO (B) Job satisfaction 192. Which of the following is the type of change?
(C) Job enlargement & enrichment (A) Reactive (B) Proactive
( D) All of these (C) Both A & B (D) All of these
184. Sources of the job satisfaction are 193. Changes activities that are intentional and
(A) Organisational factors goal oriented are
(B) Work environmental factors (A) Reactive (B) Proactive
(C) Work itself & personal factors (C) Planned change (D) All of these
(D) All of these 194. Person who act as catalyst and assume the
185. Theories of job satisfaction are responsibility for managing change activi-
(A) Need fulfilment theory ties
(B) Equity theory (A) Change Agent (B) Proactive
(C) Two factors theory (C) Both A & B (D) All of these
(D) All of these 195. Kurt Lewin three step models are
186. Job enrichment is given by (A) Unfreezing (B) Changing
(A) Fredrick Herzberg (C) Refreezing (D) All of these
(B) Herbert Simon 196. Which one is not the part of McKinsey 7s
(C) Chester Barnard framework
(D) All of these (A) System (B) Standard
187. ________involves vertical loading of func- (C) Strategy (D) All of these
tion and responsibilities of the employee. It 197. Stabilising a change intervention by balanc-
is an improvement in the quality of a job in ing driving and restraining forces. _____ the
terms of intrinsic worth. person undergoes cognitive restructuring.
(A) MBO (B) Job satisfaction The person acquires information and evi-
(C) Job enrichment (D) All of these dences showing that the change is desirable
and possible.
188. _________involves a horizontal loading or
(A) Unfreezing
expansion of job in other words, in addition
to task in same nature. (B) Changing or moving
(A) MBO (B) Job satisfaction (C) Refreezing (D) All of these
(C) Job enlargement (D) All of these 198. _________ is to integrate the new behaviour
into the person personality and attitudes.
189. _______provides achievement, recognition,
Helping the client to integrate new point of
responsibility, achievement and growth.
view.
(A) MBO (B) Job satisfaction
(A) Unfreezing (B) Changing
(C) Job Enrichment (D) All of these
(C) Refreezing (D) All of these
190. Shifting of an employee for one job to another
199. A change process based on systematic col-
in order to provide some variety.
lection of data and then selection of a change
(A) MBO (B) Job satisfaction action based on what the analyzed data in-
(C) Job Rotation (D) All of these dicate
191. The alteration of status quo or making things (A) Action Research(B) Changing
different is (C) Refreezing (D) All of these
200. Causes of resistance to change is 209. _____is a technique used for bringing
(A) Individual (B) Group change in the entire aspects of the organisa-
(C) Organisational (D) All of these tion, rather than focusing attention on the
individual so that change is readily ab-
201. Individual causes of resistance to change is
sorbed.
(A) Economic & Social factors
(A) Organisational development
(B) Habits
(B) Job satisfaction
(C) Insecurity (D) All of these
(C) Change (D) All of these
202. Which of the following is the individual
210. Characteristics of organisation development
causes of resistance to change ?
are
(A) Lack of communication
(A) Planned change
(B) Extents of change
(B) Long range change
(C) Psychological factors
(C) System orientation
(D) All of these
(D) All of these
203. Which of the following is not the organisa-
211. List of Unfair labour practices on the part of
tional resistance causes?
the trade unions and employers was in-
(A) Threats to power
cluded in
(B) Group (A) Trade Union Act (B) Factories Act
(C) Organisational structure (C) Both (A) and (B)
(D) None of these (D) Industrial Dispute Act
204. Another Organisational resistance causes is
212. The theory that it is the leaders job to assist
(A) Threats to specialization followers in attaining their goal and provide
(B) Resources constraints the necessary direction and or support to
(C) Sunk Cost ensure that their goal are compatible with
(D) All of these the overall objectives of the group in
205. Overcoming resistances to change is organisation is
(A) Individual (B) Group (A) Charismatic leadership
(C) Both A& B (D) All of these (B) Goal theory
206. Overcoming resistances to change in indi- (C) LMX theory
vidual levels (D) All of these
(A) Participation and involvement 213. OD values tend to be
(B) Effective communication (A) Humanistic (B) Optimistic
(C) Facilitation and support (C) Democratic (D) All of these
(D) All of these 214. "OCTAPACE” was given by
207. Overcoming resistances to change in indi- (A) McClelland (B) Udai Pareek
vidual levels (C) Both (A) & (B) (D) All of these
(A) Manipulation co-operation 215. OD Program are________ in nature.
(B) Coercion (A) Short-term (B) Long-term
(C) Timing of change (C) Middle-term (D) All of these
(D) All of these 216. The central theme of OD is
208. What can a change agent change? (A) Planned change
(A) Structure (B) Technology (B) Action research
(C) People & physical setting (C) Consulting methods
217. In ‘T-group’ ‘T’ stands for (A) Transactional
(A) Training (B) Technical (B) Team building and intervention
(C) Trade (D) All of these (C) Both A & B (D) All of these
218. OD is a _____ in an organisational context. 227. Most of the Organisational Development ac-
(A) Planned change (B) Interchange tivities are based on a basic model, i.e.
(C) Both A & B (D) All of these (A) Data based
219. OD process is based on _____ which begins (B) Problem solving
with a known problem. (C) Scientific method of enquiry
(A) Planned change (D) All of these
(B) Interchange 228. Always try and reduce ________ upon con-
(C) Process sultant.
(D) Action research model (A) Transactional (B) Dependency
220. Concern for people refers to ______ concern (C) Both A& B (D) All of these
of others. 229. The refreezing stage of the model consists of
(A) Planned change (A) Helping the client to integrate the new
(B) Consideration of social and interper- point of view
sonal (B) Helping total personality and self con-
(C) Personal cept
(D) Action research model (C) Developing significant relationship
221. The initial interest of the managers for the (D) All of these
Organisational Development efforts is intro- 230. “Transactional Factors” theory has been
duced, through personal attendance at enunciated in the book – Organisational
(A) Planned change Development which is authored by
(B) Social and interpersonal (A) Kurt lewin (B) Warner Burke
(C) Action Research (C) Both A & B (D) All of these
(D) T-Group laboratory 231. Marvin’s Six Box Model, was ________ from
222. While describing the individual roles, “ the his experience in consulting in different
role “ is called as organisations.
(A) Focal Role (B) Local Role (A) Developed (B) Never Developed
(C) Both A & B (D) All of these (C) Both A & B (D) All of these
223. Management should ____ at the right depth. 232. As a result of OD intervention, the result ob-
(A) Intervene (B) System tained is a
(C) Both A & B (D) All of these (A) Win-lose (B) Win-win situation
( C) Both A & B (D) All of these
224. In an organisation there should be a _______
to be taken on business decisions. 233. During and after the ________ of interven-
(A) Transactional (B) Team Approach tion, the data is gathered.
(C) Both A & B (D) All of these (A) Planning (B) Implementation
225. The data collection on organisation is un-
dertaken by the Consultant, by way of 234. When a substantial conflict exists in the
(A) Interviews group, the most appropriate Group Interven-
tion would be
(B) Personal observations
(A) Role Negotiation technique
(C) Questionnaires
(B) Role analysis
(D) All of these
(C) Both A & B
226. At the heart of OD lies, ________ with an
(D) All of these
intact work team.
235. OD process is based on the action research 244. _________is the low task and low relation-
model, which begins with ship behaviour stage where the subordinate
(A) Identifying need for change in this stage are at a very high level of matu-
(B) Implementation rity.
(C) Both A & B (D) All of these (A) Telling (B) Selling
236. Quality Circle is basically an idea based on (C) Participating (D) Delegating
(A) Japanese Synthesis of American Idea 245. Self Managing________ are powerful social
(B) America idea intervention in a supportive organisation.
(C) Both A & B (A) Action team (B) Work team
(D) All of these (C) Both A& B (D) All of these
237. The name of the Japanese professor from To- 246. Survey feedback system consists of cyclical
kyo University, who added the notion of process, there number being
small groups formed to address the prob- (A) Four cyclical processes
lems in their work areas, is (B) Work team
(A) Kaoru Ishikawa (B) Taylor (C) Both A& B
(C) Both A& B (D) All of these (D) All of these
238. A known OD conceptualize, has identified 247. The Grid OD system has been developed by
prime responsibilities of OD, consultant. The psychologists
initiator’s name is (A) Porras and Robertson
(A) Kaoru Ishikawa (B) Argyris (B) Robert Blake and Jane Moulton
(C) Both A & B (D) All of these (C) Both A & B
239. The role of OD practitioner and that of con- (D) All of these
sultant is that of 248. The various types and categories of “ Power”
(A) Facilitator (B) Catalyst are
(C) Both A& B (D) All of these (A) Expert power
240. The unfreezing stage of the Changed pro- (B) Information power
cess, consists of (C) Reference power,
(A) Provision of psychological safety (D) All of these,
(B) Creation of guilt or anxiety 249. Transactional Factors” theory has been
(C) Disconfirmation or lack of confirmation enunciated in the book – Organisational De-
(D) All of these velopment which is authored by
241. OD ________ believes that, work teams are (A) Porras and Robertson
the building blocks of the organisation. (B) Warner Burke
(A) Fundamentally (B) Social (C) Both A & B
242. MBO programme generally consists of 250. Reputation analysis is based on the idea,
(A) Five Stages (B) Six Stages that
(C) Both A & B (D) All of these (A) People are not known itself
243. The team of authors, who called organisa- (B) Powerful people are known others
tional development as, practical application (C) Both A & B
of science of organisation is (D) All of these
(A) Porras and Robertson 251. OD was founded on the belief that using
(B) Berne behavioural science methods to increase
(C) Both A & B collaborative problem solving would in-
(D) All of these crease
(A) Organisational effectiveness (C) Questionnaires
(B) Organisational development (D) All of these
(C) Both A & B 258. Not more than 50% of members of the office
(D) All of these bears of trade union can be outsiders, as per
252. The team building interventions are directed provisions of legislations
towards main areas of (A) Industrial Dispute Act
(A) Diagnosis (B) Trade Union Act
(B) Team and organisational processes (C) Mines Act (D) ESI Act.
(C) Team relationships 259. Third party peacemaking is a__________
(D) All of these Intervention.
253. According to Deal and Kennedy, in a dy- (A) Intergroup (B) Team processes
namic organisation characterized by fun (C) Team relationships
and action, where employees take few risks (D) All of these
and games, meetings, promotions and con- 260. Interpersonal peacemaking confrontation &
ventions are encouraged to help maintain third party peacemaking intervention is
motivation, the type of culture can be de- given by
scribed as: (A) Porras and Robertson
(A) Hard/play-hard culture. (B) Richard Walton
(B) Work-hard/play-hard culture. (C) Both A& B
(D) All of these
261. OD interventions is a set of______activities.
254. ___________ can be viewed in terms of men- (A) Unstructured (B) Structured
tal attitudes which people have towards
(C) Both A& B (D) All of these
their tasks and responsibilities.
(A) Morale 262. ‘Culture Analysis’ interventions was given
by
(B) Team processes
(A) Porras and Robertson
(C) Team relationships
(B) Edger Schein
(D) All of these
(C) Both A & B
255. A transformational change which occurs as
(D) All of these
a reaction to drastic changes in an
organisation’s environment is identified by 263. Life goal exercise was given by
Nadler and Tushman (1986) as (A) Porras and Robertson
(A) Recreation (B) Creating (B) Herbert A Sheppard
(C) Both A & B (D) All of these (C) Both A & B (D) All of these
256. According to Koffman and Senge (1993), 264. Appreciate Inquiry was given by
which of the following is a barrier that needs (A) Frank Barrett (B) David
to be overcome in an organisation if an (C) Both A & B (D) All of these
organisation is to become ‘a learning 265. ___________has provided the concepts of
organisation’ Career anchors.
(A) The barrier of fragmentation. (A) Porras and Robertson
(B) The barrier of inefficiency (B) Edger Schein
(C) Both A & B (C) Both A & B (D) All of these
(D) All of these
266. Stream analyses is given by
257. Survey feedback uses_______to collect data. (A) Jerry Porras (B) Edger Schein
(A) Interviews (C) Both A & B (D) All of these
(B) Personal observations
267. Confrontation meeting is developed by (C) Survey feedback
(A) Jerry Porras (B) Richard Beckhard (D) All of these
(C) Both A & B (D) All of these 276. A set of activities that help others perceive
268. Role negotiation techniques is given by understand and react constructively to cur-
(A) Roger Harrison (B) Edger Schein rent behavioural events around them
(C) Both A & B (D) All of these (A) Process consultation
269. The concepts of visioning is created by (B) MBO
(A) Roger Harrison (B) Edger Schein (C) Grid Training and development
270. Major Families of OD intervention are 277. Activities developed by the Blake and Mou-
ton which constitute a six phase change
(A) Sensitivity training
model of involving the total organisation.
(B) Team Building
(A) Process consultation
(C) Survey Feedback
(B) MBO
(D) All of these
(C) Grid Training and development
271. Which of the following is/are the OD inter- (D) All of these
ventions?
278. Activities conducted by the skilled consult-
(A) Process consultation
ant (the third party), designed to “help two
(B) MBO member of an organisation to manage their
(C) Grid Training (D) All of these interpersonal conflicts” is
272. Major Families of OD intervention are (A) Third party peacemaking
(A) Third party peacemaking (B) Techno structural activities
(B) Techno structural activities (C) Strategic management activities
(C) Strategic management activities (D) All of these
(D) All of these 279. They designed to improve the effectiveness
273. It is a technique for learning about one self of organisational structure and job design.
and others by observing and participating (A) Third party peacemaking
in a group situation. (B) Techno structural activities
(A) Sensitivity Training (C) Strategic management activities
(B) Team Building (D) All of these
(C) Survey Feedback 280. Activities that help key policy maker and
(D) All of these reflects systematically in the organisation
274. A conscious effort by management to de- basic mission and goal and environmental
velop effective works group throughout the demands threats and opportunities and to
organisation is engage in long range action planning of both
(A) Sensitivity training a reactive and proactive is
(B) Team building (A) Third party peacemaking
(C) Survey feedback (B) Techno structural activities
(D) All of these (C) Strategic management activities
275. It is a method of basing change efforts on the (D) All of the above
systematic collection and measurement of 281. OD practitioner kit bag is the __________.
subordinate attitude through anonymous A device for understanding a problematic
question. situation and planning corrective action.
(A) Sensitivity training (A) Force field analysis
(B) Team building (B) Techno structural activities
(C) Strategic management activities 291. Under this style, the leader expects complete
(D) All of these obedience from his subordinate and all de-
282. Force field analysis is given by cision making power is centralized in the
leader.
(A) Kurt Lewin (B) Edger Schein
(A) Autocratic style
(B) Laissez faire or free rain style
283. The outsider to discuss and explore the data
(C) Democratic or participative
presented by the consultant is/are
(A) Anchors (B) Fishbowl (D) Paternalistic leader style
(C) Both A & B (D) All of these 292. Maximum freedom is allowed to subordi-
nate they are given free hand in deciding
284. A problem solving approach, a rather
their own policies and methods and to make
straight forward one consisting of three
independent decision.
phases problem identification, problem solv-
ing and implementation, consisting of five (A) Autocratic style
behavioural skill is (B) Laissez faire or free rain style
(A) Behavioural Modelling (C) Democratic or participative
(B) Fishbowl (D) Paternalistic leader style
(C) Both A & B (D) All of the above 293. _________is based upon sentiments and
285. Action research as a methodology for emotion of people. He looks after the subor-
behavioural science was proposed by dinate like a fathers looks after his family.
(A) P.F. Drucker (B) Kurt Lewin (A) Autocratic style
(C) Reddin (D) All of these (B) Laissez faire or free rain style
286. Edger Schein has provided the concepts of (C) Democratic or participative
___________ which are useful individually (D) Paternalistic leader style
and voluntary group discussions in career 294. A ______is one who is formally appointed
development workshop. and elected to directs and control the activi-
(A) Career Anchors (B) Fishbowl ties of the subordinate.
(C) Both A & B (D) All of these (A) Formal leader (B) Informal leader
287. The change procedure of unfreezing, mov- (C) Both A & B (D) None of these
ing, refreezing was given by 295. ______are not formally recognized. They de-
(A) Rensis Likerts (B) Blake and Mouton rive authority from the people who are un-
(C) Kurt Lewin (D) All of the above der their influence.
288. OD values includes (A) Formal leader (B) Informal leader
(A) Humanistic values (C) Both A & B (D) None of these
(B) Optimistic values 296. Managerial Grid is given by
(C) Democratic values (A) Elton Mayo (B) Blake & Mouton
(D) All of these (C) Both A & B (D) None of these
289. The term ____in OD refers to core structured 297. The first style (1.1) is the _________manage-
activities involving clients and consultants. ment under which the manager is least con-
(A) Reactive (B) Intervention cerned with either people and management.
(C) Action Research(D) All of these (A) Impoverished
290. _______is the ability to influence people to- (B) Country club
wards the accomplishment of the organisa- (C) Task management
tional goal. (D) Team management
(A) Leadership (B) Role identity 298. The _______management as shown in grid
(C) Both A & B (D) None of these at 9.1 is one in which the management have
great concern for their people but lack people 305. Two important Behavioural Theories are
orientation. (A) Michigan studies
(A) Impoverished (B) Ohio state
(B) Country club (C) Both A & B
(C) Task management (D) All of these
(D) Team management 306. Michigan studies two distinct styles of lead-
299. The _______management as shown in grid ership are
at 1.9 is one in which the management have (A) Production centered leadership
great concern for their production but lack (B) Employee centered leadership
people orientation. (C) Both A & B
(A) Impoverished (D) All of these
(B) Country club
307. Rigid work standards, procedure, rules and
(C) Task management close supervision of the subordinate is the
(D) Team management part
300. The _______ management as shown in grid (A) Production centered leadership
at (9.9) is one in which the management have (B) Employee centered leadership
great concern for their people and produc- (C) Both A & B
tion.
(D) All of these
(A) Impoverished (B) Country club
308. This style is known as relation __________
(C) Task management
because it emphasis on human relation. To
(D) Team management show concern for the employees, needs, wel-
301. The _____management as shown in grid at fare advancement etc.
(5.5) is one in which the management have (A) Production centered leadership
Medium concern for their people and pro- (B) Employee centered leadership
duction.
(C) Both A & B
(A) Impoverished
(D) All of these
(B) Country club
309. A nine-by-nine matrix outlining 81 differ-
(C) Task management
ent leadership styles is
(D) Middle of the road
(A) Managerial Grid
302. There is some personal qualities and Char- (B) Cognitive resources theory
acteristics known as which are essential to
(C) Both A & B
be a successful leader. The theory is
(D) None of these
(A) Trait Theory (B) Behavioural
(C) Ohio state (D) All of these 310. An instruments that purports to measure
whether a person is task or relationship ori-
303. According to this/these theories, leadership ented is
involves an interpersonal relationship be-
(A) Path Goal theory
tween a leaders and subordinate in which
behaviour of the leaders towards the subor- (B) LPC questionnaire
dinate constitute the most critical element (C) Both A & B
(A) Trait (B) Behavioural Theories (D) None of these
(C) Ohio state (D) All of these 311. In Fielders, theory LPC means
304. Theories proposing that specific behaviour (A) Least preferred co-worker
differentiate leaders and non leaders is/are (B) Last prefer co-workers
(A) Trait (C) Low prefer cause
(B) Behavioural Theories (D) None of these
(C) Ohio state (D) All of these
312. Which of the following is an important (C) Transactional leaders
dynamic variable? (D) All of these
(A) Superior style and behaviour 321. Leaders who guides their followers in the
(B) Organisation culture direction of established goals by clarifying
(C) Low prefer cause role and task requirement are known as
(D) None of these (A) Charismatic leadership
313. The authoritarian leadership goes with (B) Transformational leaders
(A) Theory X (B) Theory Y (C) Transactional leaders
(C) Theory Z (D) None of these (D) All of these
314. The democratic leadership goes with 322. A leadership style that focuses on the social
(A) Theory X (B) Theory Y transaction or exchanges between leaders
(C) Theory Z (D) None of these and followers
315. Managerial grid suggest the following as the
best leader behaviour. (B) Transformational leaders
(A) Low structure and low consideration (C) Transactional leaders
(B) High concern with people and produc- (D) All of these
tion 323. A leadership style in which leaders are not
(C) Low concern with people and produc- constrained by their followers perception but
tion are free to act to transform their followers
(D) None of these views
316. Effective leadership behaviour is a result of
following variable (B) Transformational leaders
(A) Structure (C) Transactional leaders
(B) Consideration (D) All of these
(C) Environment 324. The ability to crate & articulate a realistic,
(D) All of these credible attractive vision of the future for an
organisation is/are
317. Structure variables is synonymous with
(A) Visionary leaders
(A) Task
(B) Transformational leaders
(B) Relation
(C) Transactional leaders
(C) Environment
(D) All of these
(D) Situational variable
325. ______is the high task and low relationship
318. The concepts that leaders create in-groups behaviour stage, where the subordinate
& out-groups will have higher performance have low maturity.
rating, less turnover, and greater job satis-
(A) Telling (B) Selling
faction is
(C) Participating (D) Delegating
(A) Leader member Exchange (LMX)
(B) LPC 326. ______is the high task and High relation-
ship behaviour stage, where the subordinate
require both supportive and participating,
319. Charismatic leadership is given by where the subordinate have moderate ma-
(A) Robert House (B) Max Waber turity.
(C) Taylor (D) All of these (A) Telling (B) Selling
320. _______is a type of influence which is based (C) Participating (D) Delegating
on the leaders personal charisma. 327. ______will be effective because it is the high
(A) Charismatic leadership task and low relationship behaviour stage,
(B) Transformational leaders where the subordinate have moderate high
to moderate maturity. 331. What is the correct sequence of stage of group
(A) Telling development
(B) Selling (i) Norming
(C) Participating (ii) Forming
(D) Delegating (iii) Storming
328. Match the following Codes:
Group A Group B (A) (i) (ii) ( iii)
(a) Efficiency (i) Country club (B) (ii) (iii) ( i)
(b) Motivation (ii) Two factor theory (C) (iii) (ii) (i)
(c) Leadership (iii) Input output ratio (D) None of the above
(d) Job satisfaction (iv) Hierarchy need 332. Which of the following are the sequences of
Codes : the group development process?
(a) (b) (c) (d) (i) Performing (ii) Storming
(A) (iii) (ii) (iv) (i) (iii) Adjourning (iv) Forming
(B) (iii) (iv) (i) (ii) (v) Norming
Codes :
(C) (ii) (iv) (i) (iii)
(A) (iv) (v) (iii) (ii) (i)
(D) (ii) (iii) (iv) (i)
(B) (i) (iii) (ii) (v) (iv)
329. Match the following (C) (ii) (iv) (iii) (v) (i)
Group A Group B (D) (iv) (ii) (v) (i) (iii)
(a) Douglas .M. (i) Johri Window
333. Find the right sequences of Kurt Lewin’s
McGregor
planned change
(b) William Ouchi (ii) Force Field
(i) Refreezing, moving, unfreezing
Theory
(ii) Moving, refreezing, unfreezing
(c) Joseph Lufth and (iii) Theory X and Y
(iii) Unfreezing, moving, refreezing
Harry Ingham
Codes :
(d) Kurt Lewin (iv) Theory Z
(A) (i) (ii) ( iii)
Codes :
(B) (ii) (iii) ( i)
(a) (b) (c) (d)
(C) (iii) (ii) (ii)
(A) (iii) (ii) (iv) (i)
(D) None of the above
(B) (ii) (iii) (i) (iv)
(C) (iii) (iv) (i) (ii) 334. Match the following behavioural scientist
with the areas of distribution
(D) (iv) (ii) (i) (iii)
Scientist Area of interest
330. Which of the following are the correct se- (a) Charles L. Hulin (i) Transactional
quences of need suggested by Abraham
& Milton R. Blood Analysis
Maslow
(b) Blake and Mouton (ii) Organisational
(i) Self Esteem Needs Development
(ii) Belongingness need (c) Eric Berne (iii) BARS
(iii) Safety Needs (d) Beck hard R (iv) Managerial
(iv) Physiological Need Grid
(v) Self actualization Need Codes :
Codes: (a) (b) (c) (d)
(A) (i) (ii) (iv) (iii) (v) (A) (iii) (iv) (i) (ii)
(B) (v) (iv) (ii) (iii) (i) (B) (iii) (i) (ii) (iv)
(C) (iv) (iii) (ii) (i) (v) (C) (ii) (iv) (iii) (i)
(D) (iv) (iii) (i) (ii) (v) (D) (iv) (ii) (v) (ii)
ANSWER KEY
1. (C) 2. (B) 3. (A) 4. (D) 5. (A) 6. (B) 7. (C) 8. (B) 9. (A) 10. (B)
11. (B) 12. (C) 13. (B) 14. (A) 15. (A) 16. (C) 17. (C) 18. (A) 19. (C) 20. (A)
21. (B) 22. (C) 23. (A) 24. (C) 25. (A) 26. (B) 27. (B) 28. (A) 29. (D) 30. (D)
31. (D) 32. (D) 33. (B) 34. (B) 35. (B) 36. (A) 37. (B) 38. (B) 39. (B) 40. (A)
41. (B) 42. (C) 43. (A) 44. (C) 45. (A) 46. (B) 47. (A) 48. (B) 49. (C) 50. (B)
51. (A) 52. (C) 53. (C) 54. (A) 55. (B) 56. (C) 57. (C) 58. (A) 59. (C) 60. (A)
61. (A) 62. (A) 63. (B) 64. (A) 65. (B) 66. (C) 67. (B) 68. (A) 69. (C) 70. (C)
71. (A) 72. (A) 73. (B) 74. (D) 75. (A) 76. (B) 77. (C) 78. (D) 79. (A) 80. (B)
81. (A) 82. (B) 83. (A) 84. (A) 85. (A) 86. (B) 87. (B) 88. (A) 89. (B) 90. (A)
91. (B) 92. (A) 93. (B) 94. (A) 95. (B) 96. (A) 97. (D) 98. (A) 99. (A) 100. (A)
101. (B) 102. (A) 103. (B) 104. (B) 105. (D) 106. (C) 107. (B) 108. (A) 109. (A) 110. (B)
111. (C) 112. (A) 113. (D) 114. (A) 115. (B) 116. (B) 117. (A) 118. (A) 119. (C) 120. (A)
121. (C) 122. (C) 123. (A) 124. (C) 125. (C) 126. (A) 127. (C) 128. (C) 129. (A) 130. (B)
131. (C) 132. (A) 133. (B) 134. (A) 135. (A) 136. (D) 137. (A) 138. (B) 139. (C) 140. (D)
141. (B) 142. (A) 143. (B) 144. (A) 145. (A) 146. (B) 147. (C) 148. (A) 149. (A) 150. (B)
151. (C) 152. (C) 153. (D) 154. (A) 155. (B) 156. (C) 157. (A) 158. (A) 159. (B) 160. (C)
161. (A) 162. (D) 163. (A) 164. (A) 165. (C) 166. (B) 167. (D) 168. (C) 169. (C) 170. (C)
171. (A) 172. (C) 173. (D) 174. (D) 175. (D) 176. (D) 177. (C) 178. (D) 179. (D) 180. (A)
181. (C) 182. (A) 183. (B) 184. (D) 185. (D) 186. (A) 187. (C) 188. (C) 189. (C) 190. (C)
191. (C) 192. (C) 193. (C) 194. (A) 195. (D) 196. (B) 197. (B) 198. (C) 199. (A) 200. (D)
201. (D) 202. (D) 203. (D) 204. (D) 205. (C) 206. (D) 207. (D) 208. (D) 209. (A) 210. (D)
211. (D) 212. (B) 213. (D) 214. (B) 215. (B) 216. (D) 217. (A) 218. (A) 219. (A) 220. (B)
221. (D) 222. (A) 223. (A) 224. (B) 225. (D) 226. (B) 227. (D) 228. (B) 229. (D) 230. (B)
231. (A) 232. (B) 233. (B) 234. (A) 235. (A) 236. (A) 237. (A) 238. (B) 239. (C) 240. (D)
241. (A) 242. (B) 243. (A) 244. (D) 245. (B) 246. (A) 247. (B) 248. (D) 249. (B) 250. (B)
251. (A) 252. (D) 253. (B) 254. (A) 255. (A) 256. (A) 257. (C) 258. (B) 259. (A) 260. (B)
261. (B) 262. (B) 263. (B) 264. (C) 265. (B) 266. (A) 267. (B) 268. (A) 269. (A) 270. (D)
271. (D) 272. (D) 273. (A) 274. (B) 275. (C) 276. (A) 277. (C) 278. (A) 279. (B) 280. (C)
281. (D) 282. (A) 283. (B) 284. (A) 285. (B) 286. (A) 287. (C) 288. (D) 289. (B) 290. (A)
291. (A) 292. (B) 293. (D) 294. (A) 295. (B) 296. (B) 297. (A) 298. (B) 299. (C) 300. (D)
301. (D) 302. (A) 303. (B) 304. (B) 305. (C) 306. (C) 307. (A) 308. (B) 309. (A) 310. (B)
311. (A) 312. (A) 313. (A) 314. (B) 315. (B) 316. (D) 317. (D) 318. (A) 319. (A) 320. (A)
321. (C) 322. (C) 323. (B) 324. (A) 325. (A) 326. (B) 327. (C) 328. (B) 329. (C) 330. (C)
331. (B) 332. (B) 333. (D) 334. (A)
UNIT
INDUSTRIAL RELATIONS
MEANING OF INDUSTRIAL RELATION

In broader sense industrial relations means all such relationships that a business enterprise maintains
with various sections of society including employee, state, customers and public in industries contact.
In narrow sense it refers to all types of relationships between employer and employee, trade union
and management, workers and union and between employee and employee. It also includes all sorts
of relationships at both formal and informal levels in the organisation.
The parties involved in industrial relations i.e. employees and the employers have a common
purpose of production. They willingly bind themselves to work together. Economic interest brings
employees for wages and employers hire their services as a factor of production. It highlights
interpersonal relations but ignores conflicts of interest. It is an art which two parties learn by acquiring
the skills of adjustment.
Industrial relations has become one of the most delicate and complex problems of modern industrial
society. Industrial progress is impossible without cooperation of labours and harmonious relationships.
Therefore, it is in the interest of all to create and maintain good relations between employees (labour)
and employers (management).
Industrial relation means the relationship between employers and employees in course of
employment in industrial organisations. However, the concept of Industrial Relations has a broader
meaning. In a broad sense, the term Industrial Relations includes the relationship between the various
unions, between the state and the unions as well as those between the various employers and the
government. Relations of all those associated in an industry may be called Industrial Relations.
Concept of Industrial Relations

The term ‘Industrial Relations’ comprises of two terms: ‘Industry’ and ‘Relations’. “Industry” refers to
“any productive activity in which an individual (or a group of individuals) is (are) engaged”. By
“relations” we mean “the relationships that exist within the industry between the employer and his
workmen.”
The term industrial relations explain the relationship between employees and management which
stem directly or indirectly from union-employer relationship.
(329)
Definitions
The term ‘industrial relations’ has been variously defined :
m J.T. Dunlop defines industrial relations as “the complex interrelations among managers, workers
and agencies of the governments”.
m According to International Labour Organisation, Industrial relations comprise relationships
between the state on one hand and the employer’s and employee’s organisation on the other,
and the relationship among the occupational organisations themselves.
m Industrial Relation is a relation between employer and employees, employees and employers
and employees and trade unions. - Industrial dispute Act 1947
m According to Dale Yoder “industrial relations is the process of management dealing with one
or more unions with a view to negotiate and subsequently administer collective bargaining
agreement or labour contract”.
According to Ordway Teed, Metcalf, Industrial relations are the composite result of the attitudes
and approaches of employers and employees to each other with regard to planning, supervision,
direction and coordination of the activities of an organization with a minimum of human effort and
friction, with an animating spirit of a cooperation and with proper regard for the genuine will being of
all members of the organization.
m According to J. Henry Richardson, “Industrial relations may be referred to as an out of living
together for purposes of production.”
m According to Allan Flanders, “The subject of industrial relations deals with certain regulated
institutionalized relationship in industry.
m According to H.A. Clegg, “The field of industrials relations includes the study of workers and
their trade unions, management employers associations and the state institutions concerned
with the regulation of employment.
m According to R.A. Lester, “Industrial relations involve attempts at workable solutions between
conflicting objectives and values between incentive and economic security between discipline
and industrial democracy, between authority and freedom between bargaining and cooperation.
m According to Bethal and other, “Industrial relations refer to the part of management which is
concerned with the manpower of the enterprise whether machine operator, skilled worker or
manager.
m Encyclopedia Britannica defines a industrial relations as, “The concept of industrial relations
has been extended to denote the relation of the state with employers workers and their
organizations.
The HR Employee Relations Manager directs the organisation’s employee relations function.
They develop employee relations policies and ensure consistent application of company policies and
procedures. In addition, they are responsible for employee dispute resolution procedures, performing
internal audits, and taking appropriate action to correct any employee relations issues.
The School of Industrial and Labour Relations at Cornell University was the world’s first school
for college-level study in HR located in Ithaca, New York, USA. ILR (Industrial and Labour Relations)
specializes in the fields of human resource management, labour relations, and dispute resolution.
So Industrial relation means the relationship between employers and employees in course of
employment in industrial organisations. However, the concept of Industrial Relations has a
broader meaning. In a broad sense, the term Industrial Relations includes the relationship between
the various unions, between the state and the unions as well as those between the various employers
and the government. Relations of all those associated in an industry may be called Industrial Relations.
Industrial Relations 331
Scope of Industrial Relations Work
The concept of industrial relation has a very wide meaning and connotation. It means that the employer-
employee relationship confines itself to the relationship that emerges out of the day-to-day association of
the management and the labour. In its wider sense, industrial relations include the relationship between
employers in the course of running an industry and may project it to spheres which may transgress to
the areas of quality control, Marketing, price fixation and disposition of profits among others.
An industry is a social world in miniature. Associations of various persons, workmen, supervisory
staff, management and employer in industry create industrial relationships. This affects the economic,
social and political life of the whole community. Thus, industrial life creates a series of social
relationship which regulate the relations and working of not only workmen and management but also
of community and industry.
Industrial relations are therefore part and parcel of industrial life, as such they include:
(a) Labour relations. Relations between union-management (Also called Labour-management
relations).
(b) Employer-employee relations. Relations between Management and employee.
(c) Group Relations. Relations between various groups of workmen.
(d) Community or public relations. Relations between industry and society.
The main aspect of industrial relation are :
(i) Promotion and development of healthy labour management relations
(ii) Maintenance of industrial peace and avoidance of industrial strife
(iii) Development of industrial democracy
(i) Promotion and development of healthy labour-management relations. The promotion of
healthy management labour relation presupposes.
(a) The existence of well organised, democratic and responsible trade union and association
of the employer. These organisation enhance the job security of employees help in increased
worker participation in management and give labour a dignified society.
(b) The spirit of collective bargaining and willingness to take course to voluntary arbitration.
(c) Welfare work, whether statutory and non statutory, provided by the state, trade union
employer create, maintain and improve labour management relations and thereby contribute
to industrial peace.
(ii) Maintenance of industrial peace and avoidance of industrial strife. Industrial peace
presupposes the absence of industrial strife which is essential for increase productivity and
harmonious labour relation.
(a) Machinery should be set up for the prevention and settlement of the industrial disputes.
(b) The government should have the power to refers disputes to adjudication .
(c) The government should enjoy the power of the status quo.
(d) The provision of the bipartite and tripartite forms for the settlement of disputes.
(iii) Development of industrial democracy. The idea of industrial democracy exhorts that the
labour should have the right to be associated with the management of an industry. To achieve
this objectives, the following techniques are followed
(a) Establishment of the shop council and joint council
(b) Recognition of human right in industry
(c) Increase in labour productivity
(d) The availability of proper work environment is necessary so that the worker can effectively
carry out his assignment, as it is this environment which stimulates or depresses, improve
or destroy the relation between management and labour.
The functions of the industrial relations staff are:
1. Administration, including overall organisation, supervision and co-ordination of industrial
relations policies and programmes.
2. Liaison with outside groups and personnel departments as well as with various cadres of the
management staff.
3. The drafting of regulations, rules, laws or orders and their construction and interpretation.
4. Position classification, including overall direction of job analysis, salary and wage
administration, wage survey and pay schedules.
5. Recruitment and employment of workers and other staff.
6. Employment testing, including intelligence tests, mechanical aptitude tests and achievement
tests.
7. Placement, including induction and assignment.
8. Safety services, including first aid training.
9. Group activities, including group health insurance, housing, cafeteria programmes and social
clubs.
10. Research in occupational trends and employee attitudes, and analysis of labor turnover.
11. Training of apprentices, production workers, foremen and executives.
12. Employee counselling on all types of personnel problems-educational, vocational, health or
behaviour problems.
13. Suggestion plans and their uses in labour, management and production committees.
14. Public relations.
15. Employee relations, specially collective bargaining with representatives and settling grievances.
16. Medical and health services.
17. Employee records for all purposes.
18. Control of operation surveys, fiscal research and analysis.
19. Benefit, retirement and pension programmes.
Features of Industrial Relations

The main Features of industrial relations system are:
m Industrial relation is an active associations among the workers, the management and the
organisation of the workers i.e. trade union and the state.
m There are not simple relationship between the two or more parties but it is set of functions
interdependent of numbers of factors like-historical, economical, technological, occupational,
legal relationship are available in industry.
m Industrial relation broadly give emphasis on accommodations, adjustment and cooperation
between the employer and employees.
m It aims at industrial peace and leads to industrials democracy.
m The government intervene to shape the industrials relations through laws, rules, agreement,
terms and charters.
m The central and state government play a major role in the Industrial Relation of the country. It
influence and give proper shape of industrial relations through laws rules and regulations
and different awards of the court of law.
m Several parties are involved in the Industrial relations system. The main parties are employers
and their associations, employees and their unions and the government. These three parties
interact within economic and social environment to shape the Industrial relations structure.
m Industrial relations are a dynamic and developing concept, not a static one. They undergo
changes with changing structure and scenario of the industry as and when change occurs.
m Industrial relations include both individual relations and collective relationships.
Objectives
The main objectives of industrial relations system are:
m To safeguard the interest of labour and management by securing the highest level of mutual
understanding and good-will among all those sections in the industry which participate in the
process of production.
m To avoid industrial conflict or strife and develop harmonious relations, which are an essential
factor in the productivity of workers and the industrial progress of a country.
m To raise productivity to a higher level in an era of full employment by lessening the tendency to
high turnover and frequency absenteeism.
m To establish and promote the growth of an industrial democracy based on labor partnership in
the sharing of profits and of managerial decisions, so that ban individuals personality may
grow its full stature for the benefit of the industry and of the country as well.
m To eliminate or minimize the number of strikes, lockouts and gheraos by providing reasonable
wages, improved living and working conditions, said fringe benefits.
m To improve the economic conditions of workers in the existing state of industrial managements
and political government.
m Socialization of industries by making the state itself a major employer.
m Vesting of a proprietary interest of the workers in the industries in which they are employed.
Approaches of Industrial Relations

Different theoretical models/approaches to industrial relations given by different scholar are:
1 . The System approach. John Dunlop develop the system approach. This approach is quite
helpful in studying the industrial relation in the sense that it focuses on participants in the
process, environmental forces and the output. Further it studies interrelations among different
facets of industrial relation system.
According to Dunlop industrial relations system consists of three agents – management
organisations, workers and formal/informal ways they are organised and government agencies.
These actors and their organisations are located within an environment – defined in terms of
technology, labour and product markets, and the distribution of power in wider society as it
impacts upon individuals and workplace .Within this environment, actors interact with each
other, negotiate and use economic/political power in process of determining rules that constitute
the output of the industrial relations system.
He proposed that three parties—employers, labour unions, and government— are the key
actors in a modern industrial relations system. He also argued that none of these institutions
could act in an autonomous or independent fashion. Instead they were shaped, at least to some
extent, by their market, technological and political contexts.
Thus it can be said that industrial relations is a social sub system subject to three environmental
constraints- the markets, distribution of power in society and technology.
Dunlop’s model identifies three key factors to be considered in conducting an analysis of the
management-labour relationship:
(a) Environmental or external economic, technological, political, legal and social forces that
impact employment relationships.
(b) Characteristics and interaction of the key actors in the employment relationship: labour,
management, and government.
(c) Rules that are derived from these interactions that govern the employment relationship.
2. Giri Approach. Mr. V.V. Giri who was labour minister and later become the president of India
was stronger supporter of collective agreement and mutual negotiations for the settlement of
industrial disputes. He was of this opinion that “voluntary efforts on the part of the management
and the trade union for Binding up their differences is a tonic to the industry and any compulsion
form outside the bitter machines.”
Giri approach gave emphasis that industrial peace might be secured through machinery of
collective bargaining, the trade union should grow strong and self reliant without the assistant
of any outsider. There must be mutual settlement of disputes through collective bargaining and
voluntary arbitration and not the compulsory adjudication.
3. The Pluralist Approach. Pluralism is a major theory in labour-management relations, which
has many powerful advocates. The focus is on the resolution of conflict rather than its generation,
or, in the words of the pluralist, on ‘the institutions of job regulation.’ Kerr is one of the important
exponents of pluralism. According to him, the social environment is an important factor in
industrial conflicts. The isolated masses of workers are more strike-prone as compared to
dispersed groups. When industrial jobs become more pleasant and employees’ get more
integrated into the wider society, strikes will become less frequent. Ross and Hartman’s cross
national comparison of strikes postulates the declining incidents of strikes as societies
industrialist and develop appropriate institutional framework. They claim that there has been
a decline in strike activity all over the world in spite of an increase in union membership. The
theories on pluralism were evolved in the mid-sixties and early seventies when England
witnessed a dramatic resurgence of industrial conflicts. However, the recent theories of
pluralism emanate from British scholars, and in particular from Flanders and Fox. According
to Flanders, conflict is inherent in the industrial system. He highlighted the need for a formal
system of collective bargaining as a method of conflict resolution. Fox distinguishes between
two distinct aspects of relationship between workers and management. The first is the market
relationship, which concerns with the terms and conditions on which labour is hired. This
relationship is essentially economic in character and based on contracts executed between the
parties. The second aspect relates to the management’s dealing with labour, the nature of their
interaction, negotiations between the union and management, distribution of power in the
organisation, and participation of the union in joint decision-making. The major critics of the
pluralist approach are the Marxists according to whom exploitation and slavery will continue
unabated in the institutional structure of pluralism. The only difference is that in such a social
structure, the worker will be deemed to be a better-paid wage slave.
4 . The Social Action Approach. The social action model has its origin in webrian sociology .The
social approach stresses the way in which an individual influence the social structure and
makes the society. This approach attempts to study the behavior influences. Behaviour at work
gets influences by the quality of human relation management and the nature of technology.
Some of the major orientations in the Weberian approach have been to analyse the impact of
techno-economic and politico-organisational changes on trade union structure and processes,
to analyse the subjective interpretation of workers’ approaches to trade unionism and finally to
analyse the power of various components of the industrial relations environment – government,
employers, trade unions and political parties. Thus the Weberian approach gives the theoretical
and operational importance to “control” as well as to the power struggle to control work
organisations – a power struggle in which all the actors in the industrial relations drama are
caught up.
5. The Human Relations Approach. In the words of Keith Davies; human relations are “the
integration of people into a work situation that motivates them to work together productively,
cooperatively and with economic, psychological and social satisfactions.” According to him,
the goals of human relations are: (a) to get people to produce, (b) to cooperate through mutuality
of interest, and (c) to gain satisfaction from their relationships. The human relations school
founded by Elton Mayo and later propagated by Roethlisberger, Whitehead, W.F. Whyte, and
Homans offers a coherent view of the nature of industrial conflict and harmony.
The human relations approach highlights certain policies and techniques to improve employee
morale, efficiency and job satisfaction. It encourages the small work group to exercise
considerable control over its environment and in the process it helps to remove a major irritant
in labour-management relations. But there was reaction against the excessive claims of this
school of thought in the sixties. Some of its views were criticised by Marxists, pluralists, and
others on the ground that it encouraged dependency and discouraged individual development,
and ignored the importance of technology and culture in industry. Taking a balanced view,
however, it must be admitted that the human relations school has thrown a lot of light on
certain aspects such as communication, management development, acceptance of workplace
as a social system, group dynamics, and participation in management.
6. The Gandhian Approach. Gandhi can be called one of the greatest labour leaders of modern
India. His approach to labour problems was completely new and refreshingly human. He held
definite views regarding fixation and regulation of wages, organisation and functions of trade
unions, necessity and desirability of collective bargaining, use and abuse of strikes, labour
indiscipline, workers participation in management, conditions of work and living, and duties
of workers. The Ahmadabad Textile Labour Association, a unique and successful experiment
in Gandhian trade unionism, implemented many of his ideas. Gandhiji had immense faith in
the goodness of man and he believed that many of the evils of the modern world have been
brought about by wrong systems and not by wrong individuals. He insisted on recognising
each individual worker as a human being. He believed in non-violent communism, going so far
as to say that “if communism comes without any violence, it would be welcome.”
Gandhiji laid down certain conditions for a successful strike.
These are:
(a) the cause of the strike evolves appropriate strategies that must be just and there should be
no strike without a grievance;
(b) there should be no violence; and
(c) non-strikers or “blacklegs” should never be molested.
He was not against strikes but pleaded that they should be the last weapon in the armory of
industrial workers and hence should not be resorted to unless all peaceful and constitutional
methods of negotiations, conciliation and arbitration are exhausted. His concept of trusteeship
is a significant contribution in the sphere of industrial relations. According to him, employers
should not regard themselves as sole owners of mills and factories of which they may be the
legal owners.
They should regard themselves only as trustees, or co-owners. He also appealed to the workers
to behave as trustees, not to regard the mill and machinery as belonging to the exploiting agents
but to regard them as their own, protect them and put to the best use they can. In short, the
theory of trusteeship is based on the view that all forms of property and human accomplishments
are gifts of nature and as such, they belong not to any one individual but to society.
Thus, the trusteeship system is totally different from other contemporary labour relations
systems. It aimed at achieving economic equality and the material advancement of the “have-
nots” in a capitalist society by non-violent means. Gandhiji realised that relations between
labour and management can either be a powerful stimulus to economic and social progress or
an important factor in economic and social stagnation.
According to him, industrial peace was an essential condition not only for the growth and
development of the industry itself, but also in a great measure, for the improvement in the
conditions of work and wages. At the same time, he not only endorsed the workers’ right to
adopt the method of collective bargaining but also actively supported it.
He advocated voluntary arbitration and mutual settlement of disputes. He also pleaded for
perfect understanding between capital and labour, mutual respect, recognition of equality, and
strong labour organisation as the essential factors for happy and constructive industrial
relations. For him, means and ends are equally important.
7. Human Resource Management Approach. The term, human resource management (HRM)
has become increasingly used in the literature of personnel/industrial relations. The term has
been applied to a diverse range of management strategies and, indeed, sometimes used simply
as a more modern, and therefore more acceptable, term for personnel or industrial relations
management.
Some of the components of HRM are:
(i) human resource organisation; (ii) human resource planning; (iii) human resource systems;
(iv) human resource development; (v) human resource relationships; (vi) human resource
utilization; (vii) human resource accounting; and (viii) human resource audit. This approach
emphasizes individualism and the direct relationship between management and its employees.
Quite clearly, therefore, it questions the collective regulation basis of traditional industrial
relations.
8. The industrial sociology Approach. Industrial sociologists, G. Maregerison, was develop the
industrial sociology approach. Margerison hold the views the core of industrial relation is the
nature and developments of the conflicts itself. Margerison developed the two concepts level of
industrial relation –one at intra plant level and other outside the firm.
At plant level there could be three types of conflict-distributive, structural and human relations.
To resolve these conflict margerison suggested the collective bargaining, human relations
management analysis and structural analysis of socio-technical system. At the second level
outside the firm, the main concern with is the conflicts not resolved at intra organisational
level.
9. The Marxist Approach. The class conflict analysis of industrial relations derives its impetus
from Marxist social thinking and interpretation. Marxism is essentially a method of social
enquiry into the power relationships of society and a way of interpreting social reality. The
application of Marxian theory as it relates to industrial relations derives indirectly from later
Marxist scholars rather than directly from the works of Marx himself. Industrial relations,
according to Marxists, are in the first instance, market-relations. To Marxists, industrial relations
are essentially politicized and part of the class struggle. For Marxists industrial and employee
relations can only be understood as part of a broader analysis of capitalist society in particular
the social relations of production and the dynamics of capital accumulation. As Marx himself
put it, “the mode of production in material life determines the general character of the social,
political and spiritual process of life.” The Marxist approach is primarily oriented towards the
historical development of the power relationship between capital and labour. It is also
characterized by the struggle of these classes to consolidate and strengthen their respective
positions with a view to exerting greater influence on each other. In this approach, industrial
relations is equated with a power-struggle. The price payable for labour is determined by a
confrontation between conflicting interests. The capitalist ownership of the enterprise
endeavors’ to purchase labour at the lowest possible price in order to maximize their profits.
The lower the price paid by the owner of the means of production for the labour he employs, the
greater is his profit. The Marxist analysis of industrial relations, however, is not a comprehensive
approach as it only takes into account the relations between capital and labour. It is rather, a
general theory of society and of social change, which has implications for the analysis of
industrial relations within what Marxists would describe as capitalist societies.
10. The psychological Approach. This approach is given by Mason Haire. The psychologist are of
the view problem of industrials relations are deeply rooted in the perception and the attitude of
focal participants. According to him industrial relation problem arise due to perceptions of the
management, union, and the workers. These perception about the person, the situations or the
issues involved the conflicts. The perception and the trade union may differs because the same
positions may appears the entirely different to other party. Some aspects of the situation are
magnified or suppressed or distorted by other party. He studied the different group namely,
“union leaders” and “Executive” through a test. For a test of the photographer of an ordinary
middle age person served as a input, which both the group ware expected to rate. It is interesting
to note that both the groups rated the photograph in different manner, i.e., the union leaders
referred the person in the photograph as manager where the group of executives saw union
leaders in the photograph.
Theoretical Perspective of Industrial Relations

Industrial relations scholars have described three major theoretical perspectives or frameworks that
contrast in their understanding and analysis of workplace relations. The three views are generally
known as unitarism, pluralist and radical. Each offers a particular perception of workplace relations
and will therefore interpret such events as workplace conflict, the role of unions and job regulation
differently. The radical perspective is sometimes referred to as the “conflict model”, although this is
somewhat ambiguous, as pluralism also tends to see conflict as inherent in workplaces. Radical
theories are strongly identified with Marxist theories, although they are not limited to kosala.
1. Unitary Perspective. In unitarism, the organisation is perceived as an integrated and
harmonious system, viewed as one happy family. A core assumption of unitary approach is
that management and staff, and all members of the organisation share the same objectives,
interests and purposes; thus working together, hand-in-hand, towards the shared
mutual goals. Furthermore, unitarism has a paternalistic approach where it demands
loyalty of all employees. Trade unions are deemed as unnecessary and conflict is perceived as
disruptive.
From employee point of view, unitary approach means that:
m Working practices should be flexible. Individuals should be business process improvement
oriented, multi-skilled and ready to tackle with efficiency whatever tasks are required.
m If a union is recognized, its role is that of a further means of communication between
groups of staff and the company.
m The emphasis is on good relationships and sound terms and conditions of employment.
m Employee participation in workplace decisions is enabled. This helps in empowering
individuals in their roles and emphasizes team work, innovation, creativity, discretion in
problem-solving, quality and improvement groups etc.
m Employees should feel that the skills and expertise of managers supports their endeavours.
From employer point of view, unitary approach means that:
m Staffing policies should try to unify effort, inspire and motivate employees.
m The organisation’s wider objectives should be properly communicated and discussed with
staff.
m Reward systems should be so designed as to foster to secure loyalty and commitment.
m Line managers should take ownership of their team/staffing responsibilities.
m Staff-management conflicts – from the perspective of the unitary framework – are seen as
arising from lack of information, inadequate presentation of management’s policies.
m The personal objectives of every individual employed in the business should be discussed
with them and integrated with the organisation’s needs.
2. Pluralistic-Perspective. In pluralism the organisation is perceived as being made up of powerful
and divergent sub-groups – management and trade unions. This approach sees conflicts of
interest and disagreements between managers and workers over the distribution of profits as
normal and inescapable. Consequently, the role of management would lean less towards
enforcing and controlling and more toward persuasion and co-ordination. Trade unions are
deemed as legitimate representatives of employees. Conflict is dealt by collective bargaining
and is viewed not necessarily as a bad thing and if managed could in fact be channelled
towards evolution and positive change. Realistic managers should accept conflict to occur.
There is a greater propensity for conflict rather than harmony.
They should anticipate and resolve this by securing agreed procedures for settling disputes.
The implications of this approach include:
m Union recognition should be encouraged and union representatives given scope to carry
out their representative duties.
m The firm should have industrial relations and personnel specialists who advise managers
and provide specialist services in respect of staffing and matters relating to union
consultation and negotiation.
m Comprehensive collective agreements should be negotiated with unions.
m Independent external arbitrators should be used to assist in the resolution of disputes.
3. Marxist Perspective. The Marxist approach looks at industrial relations from a societal
perspective. It views industrial relations as a microcosm of the wider capitalist society. The
basic assumption of this approach is that industrial relations under capitalism are an everlasting
and unavoidable source of conflict According to this approach, industrial conflicts are the
central reality of industrial relations, but open conflicts are uncommon. The Marxist approach
views industrial disputes as a class struggle and industrial relations as a politicized concept
and an element of the class struggle. As per the Marxist approach, the understanding of industrial
relations requires an understanding of the capitalized society, the social relations of production
and the mechanism of capital accumulation.
The Marxist approach views the power relationship between the two classes, namely, the
employer (capital) and the employee (labour), as the crux of the industrial relations. Both
classes struggle hard to consolidate their respective positions so that they can have a greater
leverage over the other in the process of bargaining. The proponents of this approach perceive
that the employers can survive longer without labour than the employees can without work. As
far as theory is concerned, the compensation payable to the employees is an outcome of the
power struggle. For instance, the employers seek to maximize their profits by paying less
compensation to the employees, while the latter resist such attempts, and this resistance results
in industrial conflicts. However, the weakness of this theory is that it is narrow in approach as
it views industrial relations as a product or outcome of the industrial conflict.
Importance of Industrial Relations

The healthy industrial relations are key to the progress. Their significance may be discussed as
under:
1. Uninterrupted production. The most important benefit of industrial relations is that this ensures
continuity of production. This means, continuous employment for all from manager to workers.
The resources are fully utilized, resulting in the maximum possible production. There is
uninterrupted flow of income for all. Smooth running of an industry is of vital importance for
several other industries; to other industries if the products are intermediaries or inputs; to
exporters if these are export goods; to consumers and workers, if these are goods of mass
consumption.
2. Reduction in Industrial Disputes. Good industrial relation reduces the industrial disputes.
Disputes are reflections of the failure of basic human urges or motivations to secure adequate
satisfaction or expression which are fully cured by good industrial relations. Strikes, lockouts,
go-slow tactics, gherao and grievances are some of the reflections of industrial unrest which do
not spring up in an atmosphere of industrial peace. It helps in promoting co-operation and
increasing production.
3. High morale of the employees. Good industrial relations improve the morale of the employees.
Employees work with great zeal with the feeling in mind that the interest of employer and
employees is one and the same, i.e. to increase production. Every worker feels that he is a co-
owner of the gains of industry. The employer in his turn must realize that the gains of industry
are not for him along but they should be shared equally and generously with his workers. In
other words, complete unity of thought and action is the main achievement of industrial peace.
It increases the place of workers in the society and their ego is satisfied. It naturally affects
production because mighty co-operative efforts alone can produce great results.
4. Mental Revolution. The main object of industrial relation is a complete mental revolution of
workers and employees. The industrial peace lies ultimately in a transformed outlook on the
part of both. It is the business of leadership in the ranks of workers, employees and Government
to work out a new relationship in consonance with a spirit of true democracy. Both should
think themselves as partners of the industry and the role of workers in such a partnership
should be recognized. On the other hand, workers must recognize employer’s authority. It will
naturally have impact on production because they recognize the interest of each other.
5. New Programmes. New programmes for workers development are introduced in an atmosphere
of peace such as training facilities, labour welfare facilities etc. It increases the efficiency of
workers resulting in higher and better production at lower costs.
6. Reduced Wastage. Good industrial relations are maintained on the basis of cooperation and
recognition of each other. It will help to increase production. Wastages of man, material and
machines are reduced to the minimum and thus national interest is protected.
Determinant of Industrial Relations

Good industrial relations depend on a great variety of factors. Some of the more obvious ones are listed
below :
1. History of industrial relations. No enterprise can escape its good and bad history of industrial
relations. A good history is marked by harmonious relationship between management and
workers. A bad history by contrast is characterized by militant strikes and lockouts. Both types
of history have a tendency to perpetuate themselves. Once militancy is established as a mode of
operations there is a tendency for militancy to continue. Or once harmonious relationship is
established there is a tendency for harmony to continue.
2. Economic satisfaction of workers. Psychologists recognize that human needs have a certain
evolve appropriate strategies than priority. Need number one is the basic survival need. Much
of men conducted are dominated by this need. Man works because he wants to survive. This is
all the more for underdeveloped countries where workers are still living under subsistence
conditions. Hence economic satisfaction of workers is another important prerequisite for good
3. Social and Psychological satisfaction. Identifying the social and psychological urges of workers
is a very important steps in the direction of building good industrial relations. A man does not
live by bread alone. He has several other needs besides his physical needs which should also
be given due attention by the employer. An organisation is a joint venture involving a climate
of human and social relationships wherein each participant feels that he is fulfilling his needs
and contributing to the needs of others. This supportive climate requires economic rewards as
well as social and psychological rewards such as workers’ participation in management, job
enrichment, suggestion schemes, re-dressal of grievances etc.
4. Off-the-Job Conditions. An employer employs a whole person rather than certain separate
characteristics. A person’s traits are all part of one system making up a whole man. His home
life is not separable from his work life and his emotional condition is not separate from his
physical condition. Hence for good industrial relations it is not enough that the worker’s
factory life alone should be taken care of his off-the-job conditions should also be improved to
make the industrial relations better.
5. Enlightened Trade Unions. The most important condition necessary for good industrial
relations is a strong and enlightened labour movement which may help to promote the status
of labour without harming the interests of management. Unions should talk of employee
contribution and responsibility. Unions should exhort workers to produce more, persuade
management to pay more, mobilize public opinion on vital labor issues and help Government
to enact progressive labour laws.
6. Negotiating skills and attitudes of management and workers. Both management and workers’
representation in the area of industrial relations come from a great variety of backgrounds in terms
of training, education, experience and attitudes. These varying backgrounds play a major role
in shaping the character of industrial relations. Generally speaking, well-trained and experienced
negotiators who are motivated by a desire for industrial peace create a bargaining atmosphere
conducive to the writing of a just and equitable collective agreement. On the other hand, ignorant,
inexperienced and ill-trained persons fail because they do not recognize that collective bargaining
is a difficult human activity which deals as much in the emotions of people as in their economic
interests. It requires careful preparation and top –notch executive competence. It is not usually
accomplished by some easy trick or gimmick. Parties must have trust and confidence in each other.
They must possess empathy, i.e. they should be able to perceive a problem from the opposite angle
with an open mind. They should put themselves in the shoes of the other party and then diagnose
the problem. Other factors which help to create mutual trust are respect for the law and breadth
of the vision. Both parties should show full respect for legal and voluntary obligations and should
avoid the tendency to make a mountain of a mole hill.
7. Public policy and legislation. When Government, regulates employee relations, it becomes a
third major force determining industrial relations the first two being the employer and the
union. Human behaviour is then further complicated as all three forces interact in a single
employee relation situation. Nonetheless, government in all countries intervenes in management
– union relationship by enforcing labour laws and by insisting that the goals of whole society
shall take precedence over those of either of the parties. Government intervention helps in three
different ways : (1) it helps in catching and solving problems before they become serious.
Almost everyone agrees that it is better to prevent fires them to try stopping them after they start;
(2) It provides a formalized means to the workers and employers to give emotional release to
their dissatisfaction; and (3) It acts as a check and balance upon arbitrary and capricious
management action.
8. Better education. With rising skills and education workers’ expectations in respect of rewards
increase. It is a common knowledge that the industrial worker in India is generally illiterate
and is misled by outside trade union leaders who have their own axe to grind. Better workers’
education can be a solution to this problem. This alone can provide worker with a proper sense
of responsibility, which they owe to the organisation in particular, and to the community in
general.
9. Nature of industry. In those industries where the costs constitute a major proportion of the
total cost, lowering down the labour costs become important when the product is not a necessity
and therefore, there is a little possibility to pass additional costs on to consumer. Such periods,
level of employment and wages rise in decline in employment and wages. This makes workers
unhappy and destroys good industrial relations.
Causes of Poor Industrial Relations

m Economic causes. Often poor wages and poor working conditions are the main causes for
unhealthy relations between management and labour. Unauthorised deductions from wages,
lack of fringe benefits, absence of promotion opportunities, faulty incentive schemes are other
economic causes. Other causes for Industrial conflicts are inadequate infrastructure, worn-out
plant and machinery, poor layout, unsatisfactory maintenance etc.
m Organisational causes. Faulty communications system, unfair practices, non-recognition of
trade unions and labour laws are also some other causes of poor relations in industry.
m Social causes. Uninteresting nature of work is the main social cause of poor Industrial relations.
Dissatisfaction with job and personal life culminates into Industrial conflicts.
m Psychological causes. Lack of job security, non-recognition of merit and performance, poor
interpersonal relations are the psychological reasons for unsatisfactory employer-employee
relations.
m Political causes. Multiple unions, inter-union rivalry weaken the trade unions. Defective trade
unions system prevailing in the country has been one of the most responsible causes for
Industrial disputes in the country.
Suggestions to Improve Industrial Relations

1. Sound personnel policies. Policies and procedures concerning the compensation, transfer
and promotion, etc. of employees should be fair and transparent. All policies and rules relating
to Industrial relations should be fair and transparent to everybody in the enterprise and to the
union leaders.
2. Participative management. Employees should associate workers and unions in the formulation
and implementation of HR policies and practices.
3. Responsible unions. A strong trade union is an asset to the employer. Trade unions should
adopt a responsible rather than political approach to industrial relations.
4. Employee welfare. Employers should recognise the need for the welfare of workers. They must
ensure reasonable wages, satisfactory working conditions, and other necessary facilities for
labour. Management should have a genuine concern for the welfare and betterment of the
working class.
5. Grievance procedures. A well-established and properly administered system committed to
the timely and satisfactory redressal of employee’s grievances can be very helpful in improving
Industrial relations. A suggestion scheme will help to satisfy the creative urge of the workers.
6. Constructive attitude. Both management and trade unions should adopt positive attitude
towards each other. Management must recognise unions as the spokesmen of the workers’
grievances and as custodians of their interests. The employer should accept workers as equal
partners in a joint endeavour for good Industrial relations. Creating a proper communication
channel to avoid grievances and misunderstandings among employees Education and training
imparted to the employees.
Industrial Relations System

One of the significant theories of industrial labour relations was put forth by John Dunlop in the
1950s. According to Dunlop industrial relations system consists of three agents – management
organisations, workers and formal/informal ways they are organised and government agencies.
These actors and their organisations are located within an environment – defined in terms of
technology, labour and product markets, and the distribution of power in wider society as it impacts
upon individuals and workplace. Within this environment, actors interact with each other, negotiate
and use economic/political power in process of determining rules that constitute the output of the
industrial relations system. He proposed that three parties—employers, labour unions, and
government— are the key actors in a modern industrial relations system.
He also argued that none of these institutions could act in an autonomous or independent fashion.
Instead they were shaped, at least to some extent, by their market, technological and political contexts.
Thus it can be said that industrial relations is a social sub system subject to three environmental
constraints- the markets, distribution of power in society and technology.
Dunlop’s model identifies three key factors to be considered in conducting an analysis of the
management-labour relationship:
1. Environmental or external economic, technological, political, legal and social forces that impact
employment relationships.
2. Characteristics and interaction of the key actors in the employment relationship: labour,
management, and government.
3. Rules that are derived from these interactions that govern the employment relationship.
Dunlop emphasizes the core idea of systems by saying that the arrangements in the field of
industrial relations may be regarded as a system in the sense that each of them more or less intimately
affects each of the others so that they constitute a group of arrangements for dealing with certain
matters and are collectively responsible for certain results”.
In effect - Industrial relations is the system which produces the rules of the workplace. Such rules
are the product of interaction between three key “actors” – workers/unions, employers and associated
organisations and government.
The Dunlop’s model gives great significance to external or environmental forces. In other words,
management, labour, and the government possess a shared ideology that defines their roles within the
relationship and provides stability to the system.
Industrial Relations Programme

Today’s professional industrial relations director, or by whatever title he is designated, no longer
views his job as personalizing management, or that of a social worker in a factory, or a union buster,
he looks upon his department as an adjunct to management supervision at all levels; he keeps other
executives informed about new discoveries, programme trends and needs. At the same time, he provides
efficient service in the operation of several centralized services.
A successful industrial relations programme reflects the personnel viewpoint, which is influenced
by three main considerations:
(a) Individual thinking, (b) Policy awareness, and
(c) Expected group reaction.
Functional Requirements of a Successful Industrial Relations Programme:

(a) Top Management Support. Since industrial relations is a functional staff service, it must
necessarily derive its authority from the line organisation. This is ensured by providing that
the industrial relations director should report to a top line authority to the president, chairman
or vice president of an organisation.
(b) Sound Personnel Policies. These constitute the business philosophy of an organisation and
guide it in arriving at its human relations decisions. The purpose of such policies is to decide,
before any emergency arises, what shall be done about the large number of problems which
crop up every day during the working of an organisation. Policies can be successful only when
they are followed at all the level of an enterprise, from top to bottom.
(c) Adequate Practices should be developed by professionals. In the field to assist in the
implementation of the policies of an organisation. A system of procedures is essential if intention
is to be properly translated into action. The procedures and practices of an industrial relations
department are the “tool of management” which enables a supervisor to keep ahead of his job
that of the time-keeper, rate adjuster, grievance reporter and merit rater.
(d) Detailed Supervisory Training. To ensure the organisational policies and practices are properly
implemented and carried into effect by the industrial relations staff, job supervisors should be
trained thoroughly, so that they may convey to the employees the significance of those policies
and practices. They should, moreover, be trained in leadership and in communications.
(e) Follow-up of Results. A constant review of an industrial relations programme is essential, so
that existing practices may be properly evaluated and a check may be exercised on certain
undesirable tendencies, should they manifest themselves. A follow up of turnover, absenteeism,
departmental morale, employee grievances and suggestion; wage administration, etc. should
be supplemented by continuous research to ensure that the policies that have been pursued are
best fitted to company needs and employee satisfaction. Hints of problem areas may be found
in exit interviews, in trade union demands and in management meetings, as well as in formal
social sciences research.
INDUSTRIAL DISPUTES
Industrial dispute does not merely refer to difference between labour and capital as is generally
thought, but it refers to differences that affect groups of workmen and employers engaged in an
industry. Essentially, therefore, the differences of opinions between employers and workmen in regard
to employment, non-employment, terms of employment or the conditions of labour where the contesting
parties are directly and substantially interested in maintaining their respective contentious constitute
the subject-matter of an industrial dispute.
The HR Employee Relations Manager directs the organisation’s employee relations function.
They develop employee relations policies and ensure consistent application of company policies and
procedures. In addition, they are responsible for employee dispute resolution procedures, performing
internal audits, and taking appropriate action to correct any employee relations issues. Industrial
disputes are organised protests against existing terms of employment or conditions of work.
According to the Industrial Dispute Act, 1947, an Industrial dispute means “Any dispute or
difference between employer and employer or between employer and workmen or between workmen
and workmen, which is connected with the employment or non-employment or terms of employment
or with the conditions of labour of any person.”
In practice, Industrial dispute mainly refers to the strife between employers and their employees.
An Industrial dispute is not a personal dispute of any one person. It generally affects a large number
of workers’ community having common interests.
Causes of Industrial Disputes

The causes of industrial disputes can be broadly classified into two categories: economic and non-
economic causes. The economic causes will include issues relating to compensation like wages, bonus,
allowances, and conditions for work, working hours, leave and holidays without pay, unjust layoffs
and retrenchments. The non economic factors will include victimization of workers, ill treatment by
staff members, sympathetic strikes, political factors, indiscipline etc.
1. Wages and allowances. Since the cost of living index is increasing, workers generally bargain
for higher wages to meet the rising cost of living index and to increase their standards of living.
In 2002, 21.4% of disputes were caused by demand of higher wages and allowances. This
percentage was 20.4% during 2003 and during 2004 increased up to 26.2%. In 2005, wages and
allowances accounted for 21.8% of disputes.
2. Bonus. The demand for bonus or increase cause of industrial disputes, workers feel that they
should have a greater share in the profits of the industrial concern. Non-acceptance of this fact
by the employers has been a source of friction among the employers and the workers.
3. Working Conditions. The demand for improvement in working conditions such as lesser working
hours, security of job, better safety measures in the factory, leave, canteen, gratuity facilities,
etc., are also responsibile for may industrial disputes.
4. Personnel and retrenchment. [Forced lay-off of employees by a firm, usually to cut down its
payroll.] The personnel and retrenchment have also been an important factor which accounted
for disputes. During the year 2002, disputes caused by personnel were 14.1% while those
caused by retrenchment and layoffs were 2.2% and 0.4% respectively. In 2003, a similar trend
could be seen, wherein 11.2% of the disputes were caused by personnel, while 2.4% and 0.6%
of disputes were caused by retrenchment and layoffs. In year 2005, only 9.6% of the disputes
were caused by personnel, and only 0.4% were caused by retrenchment.
5. Indiscipline and violence. From the given table, it is evident that the number of disputes
caused by indiscipline has shown an increasing trend. In 2002, 29.9% of disputes were caused
because of indiscipline, which rose up to 36.9% in 2003. Similarly in 2004 and 2005, 40.4% and
41.6% of disputes were caused due to indiscipline respectively. During the year 2003,
indiscipline accounted for the highest percentage (36.9%) of the total time-loss of all disputes,
followed by cause-groups wage and allowance and personnel with 20.4% and 11.2%
respectively. A similar trend was observed in 2004 where indiscipline accounted for 40.4% of
disputes.
6. Bonus. Bonus has always been an important factor in industrial disputes. 6.7% of the disputes
were because of bonus in 2002 and 2003 as compared to 3.5% and 3.6% in 2004 and 2005
respectively.
7. Leave and working hours. Leaves and working hours have not been so important causes of
industrial disputes. During 2002, 0.5% of the disputes were because of leave and hours of work
while this percentage increased to 1% in 2003. During 2004, only 0.4% of the disputes were
because of leaves and working hours.
m Miscellaneous. The miscellaneous factors include
n Inter/Intra Union Rivalry
n Charter of Demands
n Work Load
n Standing orders/rules/service conditions/safety measures
n Non-implementation of agreements and awards etc.
Effects of Industrial Disputes
Strike
A strike is a very powerful weapon used by trade unions and other labor associations to get their
demands accepted. It generally involves quitting of work by a group of workers for the purpose of
bringing the pressure on their employer so that their demands get accepted. When workers collectively
cease to work in a particular industry, they are said to be on strike.
Strike action, also called labour strike, on strike, grieve (of French: grève), or simply strike, is a
work stoppage caused by the mass refusal of employees to work. A strike usually takes place in
response to employee grievances. Strikes became important during the industrial revolution, when
mass labour became important in factories and mines. In most countries, they were quickly made
illegal, as factory owners had far more political power than workers. Most western countries partially
legalized striking in the late 19th or early 20th centuries.
No doubt strike is the ultimate weapon in the hands of worker and labour laws also support
strikes if it does in accordance with, if we go through the history of strikes and analyze, core reason we
find ultimately is nonpayment of wages to workers by their employer, followed by irregular payment of
wages and then less payment of the wages.
Types of Strike
(1) Economic Strike. Under this type of strike, labours stop their work to enforce their economic
demands such as wages and bonus. In these kinds of strikes, workers ask for increase in wages,
allowances like travelling allowance, house rent allowance, dearness allowance, bonus and
other facilities such as increase in privilege leave and casual leave.
(2) Sympathetic Strike. When workers of one unit or industry go on strike in sympathy with
workers of another unit or industry who are already on strike, it is called a sympathetic strike.
The members of other unions involve themselves in a strike to support or express their sympathy
with the members of unions who are on strike in other undertakings. The workers of sugar
industry may go on strike in sympathy with their fellow workers of the textile industry who
may already be on strike.
(3) General Strike. It means a strike by members of all or most of the unions in a region or an
industry. It may be a strike of all the workers in a particular region of industry to force demands
common to all the workers. These strikes are usually intended to create political pressure on the
ruling government, rather than on any one employer. It may also be an extension of the
sympathetic strike to express generalized protest by the workers.
(4) Sit down Strike. In this case, workers do not absent themselves from their place of work when
they are on strike. They keep control over production facilities. But do not work. Such a strike is
also known as ‘pen down’ or ‘tool down’ strike. Workers show up to their place of employment,
but they refuse to work. They also refuse to leave, which makes it very difficult for employer to
defy the union and take the workers’ places. In June 1998, all the Municipal Corporation
employees in Punjab observed a pen down strike to protest against the non-acceptance of their
demands by the state government.
(5) Slow Down Strike. Employees remain on their jobs under this type of strike. They do not stop
work, but restrict the rate of output in an organised manner. They adopt go-slow tactics to put
pressure on the employers.
(6) Hunger strike. In this form of industrial protest, workmen resort to fasting near the workplace
in order to demand the employer to redress their grievances.
On 18, July, 2012, India’s leading car manufacturer Maruti Suzuki Udyog Ltd. in Manesar
factory workers in an agitation at factory human resource manager burned to death by workers,
made severe damage to companies property and hurt severely several other workers. Thereby
MSUL (Maruti Suzuki Udyog Ltd.) sacked all of its workers who ever involved in that incident
and filed a police complaint against those employees on 8th November, 2012, few workers
strike who are dismissed but claims that they were not involved resorted to hunger strike
demanding to reinstate them.
(7) Wild cat strikes. These strikes are conducted by workers or employees without the authority
and consent of unions. In 2004, a significant number of advocated went on wildcat strike at the
City Civil Court premises in Bangalore. They were protesting against some remarks allegedly
made against them by an Assistant Commissioner.
Legal Prohibitions on Strike on India

According to Industrial Disputes Act 1947, a strike is “a cessation of work by a body of persons
employed in an industry acting in combination; or a concerted refusal of any number of persons who
are or have been so employed to continue to work or to accept employment; or a refusal under a
common understanding of any number of such persons to continue to work or to accept employment”.
This definition throws light on a few aspects of a strike. Firstly, a strike is referred to as stoppage
of work by a group of workers employed in a particular industry. Secondly, it also includes the refusal
of a number of employees to continue work under their employer.
In a strike, a group of workers agree to stop working to protest against something they think is
unfair where they work. Labours withhold their services in order to pressurize their employment or
government to meet their demands. Demands made by strikers can range from asking for higher
wages or better benefits to seeking changes in the workplace environment. Strikes sometimes occur so
that employers listen more carefully to the workers and address their problems.
According to Industrial Disputes Act 1947, Strike [Sec. 2 (q)]: Strike means “a cessation of work
by a body of persons employed in any industry acting in combination or a concerted refusal under a
common understanding of any number of persons who are or have been so employed, to continue to
work or to accept employment”. Mere stoppage of work does not come within the meaning of strike
unless it can be shown that such stoppage of work was a concerted action for the enforcement of an
industrial demand.
Procedure of Strikes in India

According to Sec. 22(1) Worker should follow the rules mentioned below for doing strike. The rules are
as follows :
1. Issue of notice of strike is mandatory;
2. The date of strike must be within 6 weeks from the date of issue of strike notice;
3. The day of strike must not be within 14 days from the date of notice;
4. There should be no strike on any day before the date specified in the strike notice;
5. There should be no strike during the pendency of conciliation proceedings and 7 days after the
conclusion of said proceedings;
Methods of Strikes
Lockouts
A lockout may happen for several reasons. When only part of a trade union votes to strike, the purpose
of a lockout is to put pressure on a union by reducing the number of members who are able to work. For
example, if a group of the workers strike so that the work of the rest of the workers becomes impossible
or less productive, the employer may declare a lockout until the workers end the strike. Another case
in which an employer may impose a lockout is to avoid slowdowns or intermittent work-stoppages.
Occupation of factories has been the traditional method of response to lock-outs by the workers’
movement.
Lockouts in India
A lockout is a work stoppage in which an employer prevents employees from working. It is declared
by employers to put pressure on their workers. This is different from a strike, in which employees
refuse to work. Thus, a lockout is employers’ weapon while a strike is raised on part of employees.
According to Industrial Disputes Act 1947, lock-out means the temporary closing of a place of
employment or the suspension of work or the refusal by an employer to continue to employ any
number of persons employed by him.
Picketing
When workers are dissuaded from work by stationing certain men at the factory gates, such a step is
known as picketing. If picketing does not involve any violence, it is perfectly legal. Pickets are workers
who are on strike that stand at the entrance to their workplace. It is basically a method of drawing
public attention towards the fact that there is a dispute between the management and employees.
The purpose of picketing is:
m to stop or persuade workers not to go to work
m to tell the public about the strike
m to persuade workers to take their union’s side GHERAO
Gherao in Hindi means to surround. It denotes a collective action initiated by a group of workers
under which members of the management are prohibited from leaving the industrial establishment
premises by workers who block the exit gates by forming human barricades. The workers may gherao
the members of the management by blocking their exits and forcing them to stay inside their cabins.
The main object of gherao is to inflict physical and mental torture to the person being gherao and
hence this weapon disturbs the industrial peace to a great extent.
According to Industrial Disputes Act 1947, Lockout [Sec. 2(1)]: Lockout means “the temporary
closing of a place of employment, or the suspension of work, or the refusal by an employer to continue
to employ any number of persons employed by him”. Lockout is the antithesis of strike.
m It is a weapon of the employer while strike is that of the workers.
m Just as a strike is a weapon in the hands of the workers for enforcing their industrial demands,
lockout is a weapon available to the employer to force the employees to see his points of view
and to accept his demands.
m The Industrial Dispute Act does not intend to take away these rights.
m However, the rights of strikes and lockouts have been restricted to achieve the purpose of the
Act, namely peaceful investigation and settlement of the industrial disputes.
Procedure of Lockouts
According to Sec. 22(1) Worker should follow the rules mentioned below for doing Lockouts. The rules
are as follows:
m Issue of notice of lockout is mandatory;
m The date of lockout must be within 6 weeks from the date of issue of Lockout notice;
m The day of lockout must not be within 14 days from the date of notice;
m There should be no lockout on any day before the date specified in the strike notice;
m There should be no lockout during the pendency of conciliation proceedings and 7 days after
the conclusion of said proceedings;
Methods and Machinery for the Settlement of Industrial Disputes

Preventions of Industrial Disputes
The consequences of an Industrial dispute will be harmful to the owners of industries, workers,
economy and the nation as a whole, which results in loss of productivity, profits, market share and
even closure of the plant. Hence, Industrial disputes need to be averted by all means.
Prevention of Industrial disputes is a pro-active approach in which an organisation undertakes
various actions through which the occurrence of Industrial disputes is prevented. Like the old saying
goes, “prevention is better than cure”.
1. Model Standing Orders. Standing orders define and regulate terms and conditions of
employment and bring about uniformity in them. They also specify the duties and responsibilities
of both employers and employees thereby regulating standards of their behaviour. Therefore,
standing orders can be a good basis for maintaining harmonious relations between employees
and employers.
Under Industrial Dispute Act, 1947, every factory employing 100 workers or more is required to
frame standing orders in consultation with the workers. These orders must be certified and
displayed properly by the employer for the information of the workers.
2. Code of Industrial discipline. The code of Industrial discipline defines duties and
responsibilities of employers and workers. The objectives of the code are:
m To avoid work stoppage.
m To secure settlement of disputes by negotiation, conciliation and voluntary arbitration.
m To promote constructive co-operation between the parties concerned at all levels.
m To eliminate all forms of coercion, intimidation and violence.
m To maintain discipline in the industry.
3. Works Committee. The Industrial Dispute Act, 1947 has provided for the establishment of
works committees. In case of any industrial establishment in which 100 or more workers are
employed, a works committee consisting of employees and workers is to be constituted; it shall
be the duty of the Works Committee to promote measures for securing and preserving amity
and good relations among the employees and workers.
4. Joint Management Councils. Under this system Joint Management Councils are constituted at
the plant level. These councils were setup as early as 1958. These councils consist of equal
number of representatives of the employers and employees, not exceeding 12 at the plant level.
The plant should employ at least 500 workers. The council discusses various matters relating
to the working of the industry. This council is entrusted with the responsibility of administering
welfare measures, supervision of safety and health schemes, scheduling of working hours,
rewards for suggestions etc.
5. Joint Councils. The joint councils are constituted for the whole unit, in every Industrial Unit
employing 500 or more workers; there should be a Joint Council for the whole unit. Only such
persons who are actually engaged in the unit shall be the members of Joint Council. A joint
council shall meet at least once in a quarter. The chief executive of the unit shall be the chairperson
of the joint council. The vice-chairman of the joint council will be nominated by the worker
members of the council. The decisions of the Joint Council shall be based on the consensus and
not on the basis of voting.
6. Collective Bargaining. Collective Bargaining is a process in which the representatives of the
employer and of the employees meet and attempt to negotiate a contract governing the employer-
employee-union relationships. Collective Bargaining involves discussion and negotiation
between two groups as to the terms and conditions of employment.
7. Labour welfare officer. The factories Act, 1948 provides for the appointment of a labour welfare
officer in every factory employing 500 or more workers. The officer looks after all facilities in the
factory provided for the health, safety and welfare of workers. He maintains liaison with both
the employer and the workers, thereby serving as a communication link and contributing
towards healthy industrial relations through proper administration of standing orders,
grievance procedure etc.
8. Tripartite bodies. Several tripartite bodies have been constituted at central, national and state
levels. The India labour conference, standing labour committees, Wage Boards and Industries
Committees operate at the central level. At the state level, State Labour Advisory Boards have
been set up. All these bodies play an important role in reaching agreements on various labour-
related issues. The recommendations given by these bodies are however advisory in nature
and not statutory.
Machinery for Settlement of Industrial Disputes

1. Conciliation
Conciliation is an important methods for the settlement for the prevention and settlement of the
industrials disputes through third party intervention. Conciliation understood as the friendly
intervention of a neutral person in a disputes to help the parties to settle tier differences peacefully.
Conciliation refers to the process by which representatives of employees and employers are brought
together before a third party with a view to discuss, reconcile their differences and arrive at an agreement
through mutual consent. The third party acts as a facilitator in this process. Conciliation is a type of
state intervention in settling the Industrial Disputes. The Industrial Disputes Act empowers the Central
& State governments to appoint conciliation officers and a Board of Conciliation as and when the
situation demands.
(A) A Work committee. The work committee is purely consultive body. It is essentially advisory
body. It is essentially advisory in nature and their decision are in the form of recommendations
section 3(1) and (2) of the industrial disputes act 1947. The Industrial Dispute Act, 1947 has
provided for the establishment of works committees. In case of any industrial establishment in
which 100 or more workers are employed, a works committee consisting of employees and
workers is to be constituted; it shall be the duty of the Works Committee to promote measures
for securing and preserving amity and good relations among the employees and workers.
Committee shall meet at least once in a three month and half yearly progress reports of the
functioning of the committee is to be submitted in the triplicate to the concerned conciliation
officers.
(B) Conciliation Officer. According to the industrial disputes act, 1947, the central and the state
government can appoints the conciliation officers by a notifications in the official gazette to
that effects. The appropriate government may, by notification in the official gazette, appoint
such number of persons as it thinks fit to be the conciliation officer. The duties of a conciliation
officer are:
(a) To hold conciliation proceedings with a view to arrive at amicable settlement between the
parties concerned.
(b) To investigate the dispute in order to bring about the settlement between the parties
concerned.
(c) To send a report and memorandum of settlement to the appropriate government.
(d) To send a report to the government stating forth the steps taken by him in case no settlement
has been reached at. The conciliation officer however has no power to force a settlement.
He can only persuade and assist the parties to reach an agreement. The Industrial Disputes
Act prohibits strikes and lockouts during that time when the conciliation proceedings are
in progress.
(C) Board of conciliations. A board of conciliation constituted as an adhoc body by the appropriate
government .The board may be constituted by the appropriate government by notification in
the official gazette.
It shall consist of a chairman and two and four members, as the government think fit, who shall
be appointed to represent the party.
2. Arbitration
Arbitration is a means of securing an award on a conflict issue by reference to a third party. A neutral
third party listens to the disputing parties, gathers information about the dispute, and then takes a
decision which is binding on both the parties. The conciliator simply assists the parties to come to a
settlement, whereas the arbitrator listens to both the parties and then gives his judgement.
The main objective of the arbitration is the adjudication. And hence, there is no place for compromise
in awards through both parties are at liberty to do so. Arbitration decision are different from conciliation
because decision of arbitration is binding in nature. There is no place for compromise in awards in
case of arbitration.
The arbitration is a Quasi judicial process. The arbitrator is not vested with nay judicial power.
Advantages of Arbitration
m It is based on mutual consent of the parties and therefore helps in building healthy Industrial
Relations.
m It is established by the parties themselves and therefore both parties have good faith in the
arbitration process.
m The process is informal and flexible in nature.
Disadvantages
m Arbitration is an expensive procedure and the expenses are to be shared by the labour and the
management.
m Delay often occurs in settlement of disputes.
m Judgment can become arbitrary when the arbitrator is incompetent or biased.
There are two types of arbitration:
(a) Voluntary Arbitration. In voluntary arbitration the arbitrator is appointed by both the parties
through mutual consent and the arbitrator acts only when the dispute is referred to him.
(b) Compulsory Arbitration. Implies that the parties are required to refer the dispute to the arbitrator
whether they like him or not. Usually, when the parties fail to arrive at a settlement voluntarily,
or when there is some other strong reason, the appropriate government can force the parties to
refer the dispute to an arbitrator.
3. Adjudication
Adjudication is the ultimate legal remedy for settlement of Industrial Dispute. Adjudication means
intervention of a legal authority appointed by the government to make a settlement which is binding
on both the parties. In other words adjudication means a mandatory settlement of an Industrial
dispute by a labour court or a tribunal. It envisages government references to statutory bodies such as
labour court, industrial tribunal and national tribunal.
Adjudication means mandatory settlement of industrial disputes by labour court or industrial
tribunal and national tribunal under the disputes act or any other corresponding state statutes.
Three tier of adjudication machinery:
(A) Labour Court. The appropriate government may, by notification in the official gazette constitute
one or more labour courts for adjudication of Industrial disputes relating to any matters specified
in the second schedule of Industrial Disputes Act. They are:
m Dismissal or discharge or grant of relief to workmen wrongfully dismissed.
m Illegality or otherwise of a strike or lockout.
m Withdrawal of any customary concession or privileges.
Where an Industrial dispute has been referred to a labour court for adjudication, it shall hold
its proceedings expeditiously and shall, within the period specified in the order referring such
a dispute, submit its report to the appropriate government.
(B) Industrial Tribunal. The appropriate government may, by notification in the official gazette,
constitute one or more Industrial Tribunals for the adjudication of Industrial disputes relating
to the following matters:
m Wages
m Compensatory and other allowances
m Hours of work and rest intervals
m Leave with wages and holidays
m Bonus, profit-sharing, PF etc.
m Rules of discipline
m Retrenchment of workmen
m Working shifts other than in accordance with standing orders.
It is the duty of the Industrial Tribunal to hold its proceedings expeditiously and to submit its
report to the appropriate government within the specified time.
(C) National Tribunal. The central government may, by notification in the official gazette, constitute
one or more National Tribunals for the adjudication of Industrial Disputes in :
m Matters of National importance
m Matters which are of a nature such that industries in more than one state are likely to be
interested in, or are affected by the outcome of the dispute.
It is the duty of the National Tribunal to hold its proceedings expeditiously and to submit its
report to the central government within the stipulated time.
WORKERS’ PARTICIPATION IN MANAGEMENT

Workers’ participation in management is an essential ingredient of Industrial democracy. The concept
of workers’ participation in management is based on Human Relations approach to Management
which brought about a new set of values to labour and management.
Traditionally the concept of Workers’ Participation in Management (WPM) refers to participation
of non-managerial employees in the decision-making process of the organisation. Workers’ participation
is also known as ‘labour participation’ or ‘employee participation’ in management. In Germany it is
known as co-determination while in Yugoslavia it is known as self-management. The International
Labour Organisation has been encouraging member nations to promote the scheme of Workers’
Participation in Management.
Workers’ participation in management implies mental and emotional involvement of workers in
the management of Enterprise. It is considered as a mechanism where workers have a say in the
decision-making.
Definitions
m According to Walpole, Participation in Management gives the worker a sense of importance,
pride and accomplishment; it gives him the freedom of opportunity for self-expression; a feeling
of belongingness with the place of work and a sense of workmanship and creativity.
m According to Keith Davis, Participation refers to the mental and emotional involvement of a
person in a group situation which encourages him to contribute to group goals and share the
responsibility of achievement.
The concept of workers’ participation in management encompasses the following:
m It provides scope for employees in decision-making of the organisation.
m The participation may be at the shop level, departmental level or at the top level.
m The participation includes the willingness to share the responsibility of the organisation by the
workers.
Features of WPM
1. Participation means mental and emotional involvement rather than mere physical presence.
2. Workers participate in management not as individuals but collectively as a group through
their representatives.
3. Workers’ participation in management may be formal or informal. In both the cases it is a
system of communication and consultation whereby employees express their opinions and
contribute to managerial decisions.
There can be 5 Levels of Management Participation or WPM
(a) Information participation. It ensures that employees are able to receive information and express
their views pertaining to the matter of general economic importance.
(b) Consultative importance. Here workers are consulted on the matters of employee welfare such
as work, safety and health. However, final decision always rests with the top-level management,
as employees’ views are only advisory in nature.
(c) Associative participation. It is an extension of consultative participation as management here
is under the moral obligation to accept and implement the unanimous decisions of the employees.
Under this method the managers and workers jointly take decisions.
(d) Administrative participation. It ensures greater share of workers’ participation in discharge of
managerial functions. Here, decisions already taken by the management come to employees,
preferably with alternatives for administration and employees have to select the best from
those for implementation.
(e) Decisive participation. Highest level of participation where decisions are jointly taken on the
matters relating to production, welfare etc.
Objectives of WPM
1. To establish Industrial Democracy.
2. To build the most dynamic Human Resources.
3. To satisfy the workers’ social and esteem needs.
4. To strengthen labour-management co-operation and thus maintain Industrial peace and
harmony.
5. To promote increased productivity for the advantage of the organisation, workers and the
society at large.
6. Its psychological objective is to secure full recognition of the workers.
Strategies/Methods/Schemes/Forms of WPM
1. Suggestion schemes. Participation of workers can take place through suggestion scheme.
Under this method workers are invited and encouraged to offer suggestions for improving the
working of the enterprise. A suggestion box is installed and any worker can write his suggestions
and drop them in the box. Periodically all the suggestions are scrutinized by the suggestion
committee or suggestion screening committee. The committee is constituted by equal
representation from the management and the workers. The committee screens various
suggestions received from the workers. Good suggestions are accepted for implementation and
suitable awards are given to the concerned workers. Suggestion schemes encourage workers
interest in the functioning of an enterprise.
2. Works committee. Under the Industrial Disputes Act, 1947, every establishment employing
100 or more workers is required to constitute a works committee. Such a committee consists of
equal number of representatives from the employer and the employees. The main purpose of
this committee is to provide measures for securing and preserving amity and good relations
between the employer and the employees.
Functions. Works committee deals with matters of day-to-day functioning at the shop floor
level. Works committees are concerned with:
m Conditions of work such as ventilation, lighting and sanitation.
m Amenities such as drinking water, canteens, dining rooms, medical and health services.
m Educational and recreational activities.
m Safety measures, accident prevention mechanisms etc.
m Works committees function actively in some organisations like Tata Steel, HLL, etc. but the
progress of Works Committees in many organisations has not been very satisfactory due to
the following reasons:
n Lack of competence and interest on the part of workers’ representatives.
n Employees consider it below their dignity and status to sit alongside blue-collar workers.
n Lack of feedback on performance of Works Committee.
n Undue delay and problems in implementation due to advisory nature of recommenda-
tions.
3. Joint Management Councils. Under this system Joint Management Councils are constituted at
the plant level. These councils were setup as early as 1958. These councils consist of equal
Wages, bonus, personal problems of the workers are outside the scope of Joint management
councils. The council is to take up issues related to accident prevention, management of canteens,
water, meals, revision of work rules, absenteeism, indiscipline etc. the performance of Joint
Management Councils have not been satisfactory due to the following reasons:
m Workers’ representatives feel dissatisfied as the council’s functions are concerned with
only the welfare activities.
m Trade unions fear that these councils will weaken their strength as workers come under
the direct influence of these councils.
4. Work directors. Under this method, one or two representatives of workers are nominated or
elected to the Board of Directors. This is the full-fledged and highest form of workers’
participation in management. The basic idea behind this method is that the representation of
workers at the top-level would usher Industrial Democracy, congenial employee-employer
relations and safeguard the workers’ interests. The Government of India introduced this scheme
in several public sector enterprises such as Hindustan Antibiotics, Hindustan Organic Chemicals
Ltd. etc. However the scheme of appointment of such a director from among the employees
failed miserably and the scheme was subsequently dropped.
5. Co-partnership. Co-partnership involves employees’ participation in the share capital of a
company in which they are employed. By virtue of their being shareholders, they have the right
to participate in the management of the company. Shares of the company can be acquired by
workers making cash payment or by way of stock options scheme. The basic objective of stock
options is not to pass on control in the hands of employees but providing better financial
incentives for industrial productivity. But in developed countries, WPM through co-partnership
is limited.
employing 500 or more workers; there should be a Joint Council for the whole unit. Only such
council shall meet at least once in a quarter. The chief executive of the unit shall be the chairperson
of the joint council. The vice-chairman of the joint council will be nominated by the worker
members of the council. The decisions of the Joint Council shall be based on the consensus and
not on the basis of voting. In 1977 the above scheme was extended to the PSUs like commercial
and service sector organisations employing 100 or more persons. The organisations include
hotels, hospitals, railway and road transport, post and telegraph offices, state electricity boards.
7. Shop councils. Government of India on the 30th of October 1975 announced a new scheme in
WPM. In every Industrial establishment employing 500 or more workmen, the employer shall
constitute a shop council. Shop council represents each department or a shop in a unit. Each
shop council consists of an equal number of representatives from both employer and employees.
The employers’ representatives will be nominated by the management and must consist of
persons within the establishment. The workers’ representatives will be from among the workers
of the department or shop concerned. The total number of employees may not exceed 12.
Function of Shop Council
1. Assist management in achieving monthly production targets.
2. Improve production and efficiency, including elimination of wastage of man power.
3. Study absenteeism in the shop or department and recommend steps to reduce it.
4. Suggest health, safety and welfare measures to be adopted for smooth functioning of staff.
5. Look after physical conditions of working such as lighting, ventilation, noise and dust.
6. Ensure proper flow of adequate two way communication between management and workers.
WPM in India
Workers’ participation in Management in India was given importance only after Independence.
Industrial Disputes Act, 1947 was the first step in this direction, which recommended for the setting
up of works committees. The joint management councils were established in 1950 which increased the
labour participation in management. Since July 1975 the two-tier participation called shop councils at
shop level and Joint councils were introduced. Workers’ participation in Management Bill, 1990 was
introduced in Parliament which provided scope for upliftment of workers.
Reason for Failure of Worker Participation Movement in India
1. Employers resist the participation of workers in decision-making. This is because they feel that
workers are not competent enough to take decisions.
2. Workers’ representatives who participate in management have to perform the dual roles of
workers’ spokesman and a co-manager. Very few representatives are competent enough to
assume the two incompatible roles.
3. Generally Trade Unions’ leaders who represent workers are also active members of various
political parties. While participating in management they tend to give priority to political
interests rather than the workers’ cause.
4. Schemes of workers’ participation have been initiated and sponsored by the Government.
However, there has been a lack of interest and initiative on the part of both the trade unions and
employers.
5. In India, labour laws regulate virtually all terms and conditions of employment at the workplace.
Workers do not feel the urge to participate in management, having an innate feeling that they
are born to serve and not to rule.
6. The focus has always been on participation at the higher levels, lower levels have never been
allowed to participate much in the decision-making in the organisations.
7. The unwillingness of the employer to share powers with the workers’ representatives, the
disinterest of the workers and the perfunctory attitude of the government towards participation
in management act as stumbling blocks in the way of promotion of participative management.
Measure for Making Participation Effective
1. Employer should adopt a progressive outlook. They should consider the industry as a joint
endeavour in which workers have an equal say. Workers should be provided and enlightened
about the benefits of their participation in the management.
2. Employers and workers should agree on the objectives of the industry. They should recognize
and respect the rights of each other.
3. Workers and their representatives should be provided education and training in the philosophy
and process of participative management. Workers should be made aware of the benefits of
participative management.
4. There should be effective communication between workers and management and effective
consultation of workers by the management in decisions that have an impact on them.
5. Participation should be a continuous process. To begin with, participation should start at the
operating level of management.
6. A mutual co-operation and commitment to participation must be developed by both management
and labour.
Modern scholars are of the mind that the old adage “a worker is a worker, a manager is a manager;
never the twain shall meet” should be replaced by “managers and workers are partners in the progress
of business”
Collective Bargaining
Good relations between the employer and employees are essential for the success of industry. In order
to maintain good relations, it is necessary that industrial disputes are settled quickly and amicably.
One of the efficient methods of resolving industrial disputes and deciding the employment conditions
is Collective Bargaining. Industrial disputes essentially refer to differences or conflicts between
employers and employees.
Collective Bargaining is a process in which the management and employee representatives meet
and negotiate the terms and conditions of employment for mutual benefit. Collective bargaining
involves discussion and negotiation between two groups as to the terms and conditions of employment.
It is termed Collective because both the employer’s negotiators and the employees act as a group rather
than individuals. It is known as Bargaining because the method of reaching an agreement involves
proposals and counter-proposals, offers and counter offers. There should be no outsiders involved in
the process of collective bargaining.
According to Walton and McKersie the process of Collective Bargaining consists of four types of
activities:
1. Distributive Bargaining. It involves haggling over the distribution of surplus. Various activities
involved in this activity are wages, salaries, bonus and other financial issues. In this activity,
both the parties face a win/lose situation.
2. Integrative Bargaining. Also known as Interest-Based Bargaining, issues which are not
damaging to either party are discussed. It is a negotiation strategy in which both the parties
collaborate to find a win-win solution to their problems. This strategy focuses on developing
mutually beneficial agreements based on the interests of the disputants. Issues brought up may
be better job evaluation procedures, better performance appraisal methods or training
programmes etc.
3. Attitudinal structuring. Attitudinal structuring refers to efforts by negotiators to shape their
opponents’ perceptions about the nature of the issues to be negotiated. By cultivating an
atmosphere of friendliness, mutual respect, trust, and cooperation, negotiators can encourage
their opponents to view issues largely in integrative terms and participate in joint problem
solving. This activity involves shaping and reshaping some perceptions like trust/distrust,
friendliness/hostility, co-operative/non-cooperative between the labour and management.
When there is a backlog of bitterness between both the parties, attitudinal structuring is required
to maintain smooth and harmonious industrial relations.
4. Intra-Organisational Bargaining. It is a type of manoeuvreing to achieve consensus among the
workers and management. Even within the union there may be differences between different
groups as may be the case with the management. Intra-organisational consensus is required
for the smooth acceptance of the outcome of Collective Bargaining.
Objectives of Collective Bargaining

1. To maintain cordial relations between the employer and employees.
2. To protect the interests of the workers through collective action and by preventing unilateral
actions from being taken by the employer.
3. To ensure the participation of trade unions in industry.
4. To avoid the need for government intervention as collective bargaining is a voluntary collective
process.
5. To promote Industrial democracy.
Characteristics of Collective Bargaining

1. It is a group or collective action as opposed to individual action. It is initiated through the
representatives of the employees.
2. It is a flexible and dynamic process where no party adopts a rigid attitude.
3. It is a continuous process, which provides a mechanism for continuous negotiations and
discussions between management and the trade unions.
4. It is a voluntary process without any third-party intervention. Both workers and management
voluntarily participate in the negotiations, discuss and arrive at a solution. That is why it is
known as a bipartite process where workers’ representatives and management get an
opportunity for clear, face-to-face communication.
5. It ensures industrial democracy at the workplace; it is a self-run government in action.
6. It is a two-way process. It is a mutual give and take rather than a take home all method of
arriving at a solution to a dispute.
Process of Collective Bargaining

1. Preparation for Negotiation. Preparation for negotiation in Collective Bargaining is as important
as the negotiation process itself. Upto 83% of the outcomes are influenced by pre-negotiation
process. Such preparation is required for both management as well as the union representatives.
From the management’s point of view, pre-negotiation preparation is required as:
m Management should decide when and how to open the negotiations/dialogue.
m Management must choose the representatives to negotiate at the negotiation table.
m Draft for likely decisions should be prepared in advance so that the final agreement draft
can be prepared as soon as the negotiation process is over.
m From the employees’ side also, preparation is required for the following reasons:
(i) The union should collect the information related to the financial position of the company
and their ability to pay the employees.
(ii) The union must also be aware of the various practices followed by other companies in
the same region or industry.
(iii) The union must assess the attitudes and expectations of the employees over concerned
issues so that the outcome of negotiations does not face any resistance from them.
2. Identifying issues for Bargaining. The second step in bargaining process is the determination
of issues which will be taken up for negotiations. The different types of issues are:
m Wage-related issues: Include wage or salary revision, allowance for meeting increased cost
of living like Dearness Allowance (D.A.), financial perks, incentives etc.
m Supplementary economic benefits: These include pension plans, gratuity plans, accident
compensation, health insurance plans, paid holidays etc.
m Administrative issues: Include seniority, grievance procedures, employee health and safety
measures, job security and job changes.
The wage and benefits issues are the ones which receive the greatest amount of attention on the
bargaining table.
3. Negotiation. When the first two steps are completed, both parties engage in actual negotiation
process at a time and place fixed for the purpose. There are two types of negotiations:
m Boulwarism. In this method, the management themselves takes the initiative to find out
through comprehensive research and surveys the needs of the employees. Based on the
analysis of the findings, the company designs its own package based on the issues to be
bargained. Thereafter, a change is incorporated only when new facts are presented by the
employees or their unions.
m Continuous Bargaining. Involves parties to explore particular bargaining problems in joint
meetings over a long period of time, some throughout the life of each agreement. The basic
logic behind this method is that all persistent issues can be addressed through continuous
negotiation over a period of time. The success of negotiations depends on the skills and
abilities of the negotiators.
4. Initial negotiated agreement. When two parties arrive at a mutually acceptable agreement
either in the initial stage or through overcoming negotiation breakdown, the agreement is
recorded with a provision that the agreement will be formalized after the ratification by the
respective organisations.
5. Ratification of agreement. Ratification of negotiated agreement is required because the
representatives of both the parties may not have ultimate authority to decide various issues
referred to for collective bargaining. The ratification of agreement may be done by the appropriate
manager authorized for the purpose in the case of management, or trade executives in the case
of the employees. Ratification is also required by the Industrial Disputes Act. It is important
that the agreement must be clear and precise. Any ambiguity leads to future complications or
other such problems.
6. Implementation of agreement. Signing the agreement is not the end of collective bargaining,
rather it is the beginning of the process when the agreement is finalized, it becomes operational
from the date indicated in the agreement. The agreement must be implemented according to the
letter and spirit of the provisions made by the agreement agreed to by both parties. The HR
manager plays a crucial role in the day-to-day administration implementation of the agreement.
Code of Discipline
down which applies to both public and private sector enterprises. It specifies various obligations for
the management and the workers with the objective of promoting cooperation between their
representatives.
The Code is based on the following principles:
m The existing machinery for the settlement of disputes should be utilized.
To ensure better discipline in industry, management and unions agree on not indulging into
various actions. These actions can be summarized as follows:
m That no unilateral action should be taken in connection with any industrial matter and that
should be settled at appropriate level
m That the existing machinery for settlement of disputes should be utilized with the utmost
efficiency
m That there should be no strike or lock-out without prior notice
m That neither party will have recourse to coercion, intimidation, victimization or go–slow tactics
m That they will avoid litigation, sit-down and stay-in strikes and lock-outs
m That they will promote constructive co-operation between their representatives at all levels and
as between workers themselves
m That they will establish upon a mutually agreed grievance procedure which will ensure a
m That they will abide by various stages in the grievance procedure and take no arbitrary action
which would by-pass this procedure; and
Management Agrees
m Not to increase work-loads unless agreed upon or settled otherwise
m Not to support or encourage any unfair labor practice such as discrimination and victimization
of any employee
m To take prompt action for settlement of grievances and implementation of settlements, awards,
decision and orders
m To take appropriate disciplinary action against its officers and members in cases where enquiries
reveal that they were responsible for precipitate action by workers leading to indiscipline
Union agrees
demonstrations.
during working hours, unless as provide for by law agreement or practice.
n Insubordination
m To take prompt action to implement awards, agreements, settlements and decisions.
language (s); and
Tripartite Bodies
Tripartism is a system of labour relations in which the state, employers, and workers are autonomous
yet interdependent partners, pursuing common interests and participating in decisions affecting
them in a binding spirit of mutuality and reciprocity. This can take place at either or both macro and
micro levels.
Tripartite consultation is an important feature of India‘s industrial relations system. It has a long
history in India as it was set up as early as 1942. The Indian Labour Conference (ILC) and the Standing
Labour Committee (SLC) are two main forums for Tripartite Consultation. The objectives of Tripartite
Consultation could be mentioned as under:
m To promote uniformity in labour legislation.
m To lay down a procedure for settlement of industrial disputes.
m To consider matters of importance to both the managements and labour.

m Tripartite forums evolve norms or standards in the form of guidelines.
Evolution of Tripartite Bodies

The need for consultation on labour matters on the patterns set by the I.L.O. was recommended by the
Whitley Commission in 1931. It envisaged a statutory organisation which should be sufficiently large
to ensure adequate representation of the various interests involved; but it should not be too large to
prevent the members from making individual contributions to the discussion. The representatives of
employers, of labour and of government should meet regularly in conference. The commission also
recommended that labour members should be elected by registered trade unions and employers’
representatives should be elected by their associations.
But the recommendation was not implemented and nothing could be done in this respect till the
outbreak of the Second World War, which necessitated the need for maintenance of industrial peace.
During the Second World War separate consultations with the representatives of labour and employers
were held in 1941 and 1942 by the Government of India to finalize post-war labour programmes. The
experience of these consultations highlighted the necessity of holding joint meetings of the
representatives of the government, workers and employers, thus, providing a common platform for the
resolution of differences between the employers and workers by means of discussion and mutual
understanding. Accordingly, the Fourth Labour Conference was held in August 1942. It set up
permanent tripartite collaboration machinery and constituted a Preliminary Labour Conference (later
named as the Indian Labour Conference – ILC) and the Standing Labour Advisory Committee (which
subsequently dropped the word Advisory from its title SLC). Initially the ILC consisted of 44 members
whereas the SLC was about half the size of the ILC. The pattern of representation was governed by the
obtaining in the International Labour Conference. It ensured:
i. Equality of representation between the government and the non-government representatives;
ii. Parity between employers and workers;
iii. Nomination of representatives of organised employers and labourers was left to the concerned
organisations; and
iv. Representation of certain interests (unorganised employers and unorganised workers), where
necessary, on an adhoc basis through nomination by government. The delegates are free to
bring one official and one non-official adviser with them.
Tripartite bodies have been set up by the government to provide a forum of discussion and
consultation on various labour related issues.
Some of the notable bodies are :
m The Indian Labour Conference (ILC)
m The Standing Labour Committee (SLC)
m The Committee on Conventions
m The Industrial committee
Other bodies of tripartite nature which deals in various aspects of labour problems:
m Steering Committee on Wages
m Central Implementation and Evaluation Machinery
m Central Boards of Workers· Education
m National Productivity Council
Tripartism promotes the idea of partnership between the labour and the management. The two
main principles of tripartism are:
m Management and workers should share a relationship of partnership rather than that of employer
and employee. They should work in synergy towards the building up of the national economy.
m It holds the whole community liable for protecting the interests of workers and ensures that
workers are not deprived of their due share in gains of economic development.
1. Indian Labour Conference (ILC). The first tripartite labour conference, consisting of the
representative of the government, employers and workers was held at Delhi in August 1942.
The conference was held to discuss labour relations issues, procedure for the settlement of
industrial disputes and to promote uniformity in labour legislation.
This conference is consisted in two organisational namely ILC/SLC.
Both ILC and SLC are two important constituents of tripartite bodies. They play a vital role in
shaping, the I.R. system of the country. A brief account of these bodies is discussed here:
The agenda for ILC/SLC meetings was settled by the Labour Ministry after taking into
consideration the suggestions sent to it by member organisations. These two bodies worked
with minimum procedural rules to facilitate free and fuller discussions among the members.
The ILC meets once a year whereas the SLC meets as and when necessary.
The rules and procedures, which characterize the Indian tripartite consultative machinery, are
largely in tune with the recommendations of the ILO Committee on consultation and co-operation.
(Recommendation No. 113).
The objects of the Indian Labour Conference (ILC) are:
a. To promote uniformity in labour legislation; b. To lay down a procedure for the settlement of
industrial disputes; and c. To discuss all matters of all-India importance as between employers
and employees. The function of the ILC is to advise the Government of India on any matter
referred to it for advice, taking into account suggestions made by the provincial government,
the states and representatives of the organisations of workers and employers.
A detailed account of various resolutions adopted by the ILC‘s in their last two sessions is
presented here:
A. The 30th Session of the Indian Labour Conference
The 30th Session of the ILC was held on September 7-8, 1993 at New Delhi. After deliberations,
it arrived at the following conclusions.
1. On the impact of New Industrial Policy, the chairman referred to the assurance by the
Prime Minister that it would not lead to any human distress and the legitimate interests of
labour would be protected.
2. In regard to retraining and redeployment, the conference desired identification of labour
for such retraining and redeployment and a scheme for industry-wise and occupation-
wise redeployment. The conference also expressed the view that Government should identify
the agency for retraining and their redeployment. The conference also wanted to know
how labour of one unit would be redeployed in another unit.
3. For absorption of surplus labour, if any, as for maximizing capacity utilization, the
conference suggested diversification and broad-basing by working the units round the
clock and on all days of the week.
4. The conference expressed its serious concern at the low productivity of Indian industry
and expressed its determination to improve wherever necessary its productivity, enhance
its quality and reduce the price of goods to make them internationally competitive. The
conference decided to strive for improvement in discipline and attitude to work at all
levels. It also decided that bipartite efforts to improve productivity and quality should be
institutionalized.
5. The Trade Unions demanded:
i. The removal of ceiling on bonus both for eligibility and for computation by promulgation
of an ordinance;
ii. The immediate implementation of the DA rate of Rs.2 per point of the Consumer Price
Index (1960 series).
iii. Permission for the managements of the public sector units to commence negotiations
with the unions on their charter of demands immediately.
iv. Clearance by government to the agreement regarding pension and for the pension
scheme for its early introduction.
v. Enhancement of the rate of interest on Employees‘ Provident Fund to at least 13 per
cent.
vi. Enhancement of the limits of exemption of income tax substantially.
6. The employers wanted postponement of the decision on removal of ceiling on bonus both
for eligibility and computation of bonus by one year so that a well- thought out scheme
could be evolved. They also wanted productivity linked bonus as prescribed under the
law.
7. The trade unions indicated that the first National Commission on Labour was appointed
about 25 years ago and a time had come to set up another National Commission on Labour
to examine the issues that labour was facing today in view of the many changes that has
occurred in the meantime.
8. The Labour Cell in the Planning Commission may be revived to facilitate consultation with
trade unions while formulating policies concerning labour. The view expressed by the
participants in the conference with regard to employment policy may be conveyed to the
Planning Commission for its consideration and for the consideration of the two Sub-
Committees of the Planning Commission/ NDC which are considering strategies for
implementation of the employment policy.
B. 31st Session of I.L.C.
This session of I.L.C. was held at Delhi on 3rd-4th January 1995. In this session various problems
of industrial relations in the context of changed economic environment were discussed. The
various resolutions adopted at the said conference are as under.
1. The institution of the Indian Labour Conference should be strengthened further
2. The Central and State Governments and the social partners should come together in making
the comprehensive industrial relations law a reality and an instrument of production,
productivity, employment generation and enhancement of living standards.
3. Productivity of economic enterprises as a whole is of paramount importance.
4. The government should give special attention to streamlining the public distribution system,
particularly in centers of concentration of working people.
5. The Government should review the situation arising out of the wage negotiations in Central
Public Sector Undertakings and should facilitate speedy conclusion of wage negotiations
and settlements.
6. The worker‘s representatives demanded that the eligibility and calculation ceilings under
the Payment of Bonus Act should be scrapped, whereas the employers‘ representatives
demanded that a quick decisions should be taken on introduction of DA slabs.
7. The government should introduce the Pension for Provident Fund subscribers on priority
basis and there should be tripartite consultations before its introduction. Management of
Social Security Funds should be professionally handled so as to maximize the returns on
investments.
8. Steps should be taken for speedy and orderly investigation into the rehabilitation of sick
industrial enterprises registered with the BIFR, minimizing distress for the workers and
disabilities for the employers.
9. The constitution and the functioning of the National Renewal Fund should be reviewed
such that the Fund truly serves the purpose of industrial renewal and regeneration and
creation of employment opportunities.
10. Implementation of training programmes should be undertaken within the framework of a
well thought-out plan.
11. The Central and State Governments should give high priority to allocation of resources for
elementary and vocational education. Special attention should be given to the education of
women.
12. The government should enact, on priority basis, laws for covering agricultural and
construction workers.
13. The Labour Ministry should set up an Advisory Body to review, from time to time, the
status of women.
14. The Constitution of the Child Labour Advisory Committee should be reviewed to ensure
that it is fully representative of the social partners.
15. Representatives from workers and ‘employers’ organisations should be included in the
National delegation to the World Sumit for Social Development.
16. The Vocational Training System in the country should be reorganised.
17. The resolutions of the 32nd Session of the Standing Labour Committee in respect of the
social clause, child labour elimination and bonded labour were fully endorsed. The social
partners should take further follow up action on the resolutions.
18. The new International Economic Order holds out vast opportunities for economic betterment
and upgradation of the living standards of the people. The risks involved in formulating
and implementing economic policies to avail of these opportunities should be so handled
as to minimize human distress.
2. Standing Labour Committee. The second important organisation in the Indian tripartite
machinery is standing labour committee (S.L.C) & like ILC.
The Standing Labour Committee‘s (SLC) main function is to consider and examine such
questions as may be referred to it by the Plenary Conference or the Central Government, and to
render advice taking into account the suggestions made by various governments, workers and
employer.
The representatives of the workers and employers were nominated to these bodies by the Central
Government in consultation with the all-India organisations of workers and employers.
The objects of the SLC is the same as that of ILC:
a. To promote uniformity in labour legislation;
b. To lay down a procedure for the settlement of industrial disputes; and
c. To discuss all matters of all-India importance as between employers and employees.
A. The 31st Session of Standing Labour Committee
The 31st session of S.L.C was held in New Delhi on July 25, 1992. The Committee arrived at the
following conclusions:
1. It was resolved that future sessions of the Standing Labour Committee (SLC) should carry
fewer items on the agenda so that these could be discussed in greater detail.
2. It was resolved that Government may bring specific proposals for new Industrial Relations
Law in the ensuring session of Indian Labour Conference which should reflect the needs of
the qualitative change in the industrial/economic scenario in the national/global context.
3. It was resolved to set up a tripartite sub-committee to review the implementation of important
Labour laws.
4. It was resolved to set up an autonomous Bipartite Productivity Councils at the national,
regional, industrial and plant levels.
B. The 32nd Session of Standing Labour Committee
The thirty second session of the Standing Labour Committee was held in New Delhi on October
27, 1994. It discussed various issues concerning employment, vocational training, child labour,
bonded labour, labour standards and international trade. It adopted three important resolutions
discussed below:
(a) Social Clause. It was agreed that the government along with employers and labour
organisations would resist in I.L.O. and all other for any attempt to introduce Social clause,
in relation to carrying our marketing at the international level, contingent upon enforcement
of labour standards. Further, it advocated sustained national and international action for
upgrading labour standards without any trade linkage.
(b) Child Labour. With respect to child labour, it remarked that the Central and State
Governments and Organisations of employers and workers should take co-ordinated action
for the elimination of child labour in hazardous occupations by the year 2000 and in other
employments progressively. It also emphasized that both Central and State Governments
should implement time bound and action plans to take away children from work and
provide them education, primary vocational training, health and nutrition and concurrently
provide to the parents of such children gainful employment.
(c) Bonded Labour. It exhorted that all states should take fresh surveys for the identification
release and rehabilitation of bonded labour. Besides this, measures shall be initiated to
check the relapse of bondage of such labour.
3. Committee on Conventions. This is a three-man tripartite committee set up in 1954. The object
was : (i) to examine the ILO conventions and recommendations which have not so far been
ratified by India; and (ii) to make suggestions with regard to a phased and speedy implementation
of ILO standard.
4. Industrial Committees. The eighth session of the ILC (1947) decided to set up Industrial
Committees to discuss various specific problems special to the industries covered by them and
submit their report to the Conference, which would co-ordinate their activities. These committees
are tripartite bodies in which the number of workers‘ representatives is equal to the number of
employers‘ representatives. They do not meet regularly; meetings are considered afresh each
time a session is called.
The committees that were set up immediately after independence related to plantations, cotton
textiles, jute, coal mining, mines other than coal, cement, tanneries, and leather goods
manufactures, iron and steel, building and construction industry, chemical industries, road
transport, engineering industries, metal trades, electricity, gas and power, and banking.
Other Committees
(1) Committee on N.T.C. Turnaround. The Labour Ministry constituted a special committee
to consider the turnaround strategy for NTC on June 26, 1993. On the recommendation of
this committee, a sub-committee was constituted to consider the implementation of
turnaround strategy. It had eight rounds of meetings. This committee led to the final
agreement on April 9, 1994 for the modernization of N.T.C.
(2) Committee on Plantation. For the effective amendment of the Plantation Labour Act, 1951,
a Tripartite Committee on Plantation was reconstituted. The first meeting of the committee
took place on April 27, 1994. A sub-committee of the tripartite committee also considered
the specific issue relating to medical facilities was held on April 27, 1994. The consensus
arrived at meetings called for amendment in Plantations Labour (Amendment) Bill 1992
(that was earlier introduced by the government in the Rajya Sabha).
The 41st session of the Labour Ministers conference was held in New Delhi. On August 13,
1992 under the chairmanship of Union Minister of State for Labour. After deliberations on
various issues it arrived at the following conclusion:
(i) The Ramanujan Committee report on trade unions was considered by the conference it
was decided to place the report before the next I.L.C. (ii) It was decided to appoint a committee
of labour ministers to go into the recommendations of National Commission on Rural
Labour (NCRL) pertaining to (1) Social Security, (2) Central legislation for agriculture
labour, (3) Central legislation for construction workers, (4) Appointment of National
Commission on Bonded Labour. (iii) It was decided to convene a labour minister conference
to consider the question of improvement of quality of medical services rendered under the
E.S.I.C. (iv) It was held that restriction on the employment of outsider and the problem of
inter state migrant worker needs serious consideration and therefore be referred to inter
state and even to the national integration council.
For safeguarding the interest of child labour it was emphasized that the Child Labour
(Prohibition and Regulation) Act, 1986 needs more effective implementation. The conference
also called for the amendment of the Act.
Other Tripartite Committees
Besides the various committees discussed earlier, all those committees that have been playing
a vital role in implementing a uniform and co-ordinated labour policy in the country are
discussed under this head. A few important committees are:
(3) Steering Committee on Wages. It was set up in 1956 as a study group on wages and was
subsequently reconstituted as the steering committee on wages. It consists of representatives of
state governments, employers and workers and an economist. The functions of this committee
are: (i) to study trends in wages, production and prices; (ii) to plan collection of material for
drawing up a wage map of India; and (iii) to draw up reports from time to time for laying down
principles which will guide wage fixing authorities .
(4) Central Implementation and Evolution Machinery. The 18th session of the Standing Labour
Committee in 1957 recommended the setting up of a special machinery at the Centre as well as
in the states to ensure proper implementation of labour awards, agreements and Code of
Discipline. The implementation machinery at the Centre consists of an Evaluation and
Implementative Division and a tripartite implementation committee, consisting of 4
representatives each of central employers‘ and workers‘ organisations with the union labour
minister as chairman.
(5) Central Boards of Workers’ Education. Was constituted to encourage the growth of strong and
well-informed trade union movement conducted by the workers themselves on responsible
and constructive lines. This consists of representatives of employers and workers, and of central
and state governments.
(6) National Productivity Council. Consists of representatives of the government, employers’
associations, labourers’ organisations and certain independent experts. It encourages the
productivity in the country.
INTERNATIONAL LABOUR ORGANISATION (ILO)

India is a founder member of the International Labour Organisation, which came into existence in
1919. At present the ILO has 175 Members. A unique feature of the ILO is its tripartite character. The
membership of the ILO ensures the growth of tripartite system in the Member countries. At every level
in the Organisation, Governments are associated with the two other social partners, namely the
workers and employers. All the three groups are represented on almost all the deliberative organs of
the ILO and share responsibility in conducting its work. The three organs of the ILO are:
m International Labour Conferences. General Assembly of the ILO – Meets every year in the
month of June.
m Governing Body. Executive Council of the ILO. Meets three times in a year in the months of
March, June and November.
m International Labour Office. A permanent secretariat.
The work of the Conference and the Governing Body is supplemented by Regional Conferences,
Regional Advisory Committees, Industrial and Analogous Committees, Committee of Experts, Panels
of Consultants, Special Conference and meetings, etc.
1. International Labour Conferences
Except for the interruption caused by the Second World War, the international Labour Conference has
continued, since its first session in 1919 to meet at least once a year. The Conference, assisted by the
Governing Body, adopts biennial programme and budget, adopts International Labour Standards in
the form of Conventions and Recommendations and provides a forum for discussing social economic
and labour related issues. India has regularly and actively participated in the Conference through its
tripartite delegations.
The Conference has so far had 4 Indian Presidents viz., Sir. Atul Chatterjee (1927), Shri Jagjivan
Ram, Minister for Labour (1950), Dr. Nagendra Singh, President, International Court of Justice (1970)
and Shri Ravindra Verma, Minister of Labour and Parliamentary Affairs (1979). There have also been
8 Indian Vice Presidents of the International Labour Conference, 2 from the Government group, 3 from
the Employers and 3 from the Workers’ Group. Indians have chaired the important Committees of the
Conferences like Committee on Application of Standards, Selection Committee and Resolutions
Committee.
2. Governing Body
The Governing Body of the ILO is the executive wing of the Organisation. It is also tripartite in
character. Since 1922 Indian has been holding a non-elective seat on the Governing Body as one of the
10 countries of chief industrial importance. Indian employers and workers’ representatives have
been elected as Members of the Governing Body from time to time.
Four Indians have so far been elected Chairman of the Governing Body. They are Sir Atul Chatterjee
(1932-33), Shri Shamal Dharee Lall, Secretary, Ministry of Labour (1948-49), Shri S.T. Merani,
Joint Secretary, Ministry of Labour (1961-62) and Shri B.G. Deshmukh, Secretary, Ministry of Labour
(1984-85).
The Governing Body of ILO functions through its various Committees. India is a member of all six
committees of the Governing Body viz. (i) Programme, Planning & Administrative; (ii) Freedom of
Association; (iii) Legal Issues and International Labour Standards; (iv) Employment & Social Policy;
(v) Technical Cooperation and (vi) Sectoral and Technical Meetings and Related issues.
3. International Labour Offices
The International Labour Office, Geneva provides the Secretariat for all Conferences and other meetings
and is responsible for the day-to-day implementation of decisions taken by the Conference, Governing
Body etc. Indians have held positions of importance in the International Labour Office. Special
mention must be made of Shri S.K. Jain who retired as Deputy Director General of the ILO.
Shri Gopinath is currently the Director International Institute of Labour Studies, Geneva.
International Labour Standard - ILO Conventions

The principal means of action in the ILO is the setting up the International Labour Standards in the
form of Conventions and Recommendations. Conventions are international treaties and are
instruments, which create legally binding obligations on the countries that ratify them.
Recommendations are non-binding and set out guidelines orienting national policies and actions.
Pakistan (34), Japan (45), Australia (57), China (20), Malaysia (14), Sri Lanka (39) and USA (14).
The approach of India with regard to International Labour Standards has always been positive.
The ILO instruments have provided guidelines and useful framework for the evolution of legislative
and administrative measures for the protection and advancement of the interest of labour.
Core Conventions of the ILO

The eight Core Conventions of the ILO (also called fundamental/human rights conventions) are:
m Forced Labour Convention (No. 29)
m Abolition of Forced Labour Convention (No.105)
m Equal Remuneration Convention (No.100)
m Discrimination (Employment Occupation) Convention (No.111)
(The above four have been ratified by India).
m Freedom of Association and Protection of Right to Organised Convention (No.87)
m Right to Organise and Collective Bargaining Convention (No.98)
m Minimum Age Convention (No.138)
m Worst forms of Child Labour Convention (No.182)
(These four are yet to be ratified by India)
ILO Area Office, New Delhi

An ILO Branch Office was set up in New Delhi in 1929. The work of the Branch Office consisted of
collecting and disseminating information and maintaining links with the Government of India and
the Organisations of Employers and Workers and generally to publicise the work of ILO among the
Indian audience. With the planned programme of decentralisation, the Branch Office became an Area
Office of ILO in 1970. The Area Office at New Delhi has been changing in its jurisdiction over the
years. It now coordinates technical assistance activities in diverse focus as such as rural Labour,
women workers, employment generation, occupational safety and health, population control, family
welfare, etc. in India and Bhutan.
ILO Committee of Experts

Prominent Indians have served on the ILO Committee of Experts on Application of Conventions and
Recommendations, which is an independent body to oversee the implementation of the ILO
Conventions by Member countries. The Members of the Committee of Experts are appointed in their
individual capacity from among persons of independent, standing and are drawn from all parts of the
world. Indian who have been members of the Committee include:
m Justice P.N. Bhagwati, Retd. Chief Justice of India - Since 1978.
m Justice P.V. Gajendragadkar - 1972-1977
m Shri A. Ramaswamy Mudaliar - 1959-1970
m Shri R.M. Bannerjee - 1956-1988

m Shri Atul Chatterjee - 1936-1938 & 1945-1955.
ILO and Child Labour

ILO’s interest in child labour, young persons and their problems is well known. It has adopted a
number of Conventions and Recommendations in this regard. In India, within a framework of the
Child Labour (Prohibition and Regulations) Act, 1986 and through the National Policy on Child
Labour, ILO has funded the preparation of certain local and industry specific projects. In two vital
projects, viz. Child Labour Action and Support Programmes (CLASP) and International Programme
on Elimination of Child Labour (IPEC), the ILO is playing a vital role.
The implementation of IPEC programmes in India has certainly created a very positive impact
towards understanding the problem of child labour and in highlighting the need to elimination child
labour as expeditiously as possible. A major contribution of the IPEC programme in India is that it has
generated a critical consciousness among all the 3 social partners for taking corrective measures to
eliminate child labour.
Decent Work
The concept of Decent Work is being propagated by the ILO. It encompasses four strategic objectives:
I. Promotion of Rights at Work. It calls for renewed attention to ILO’s standards, as well as a
fresh look at complimentary means and instruments for achieving this goal.
II. Employment. Creation of greater employment and income opportunities for women and men
as a means to reduce poverty and inequality.
III. Social Protection. This section emphasizes expansion of social security schemes.
IV. Social Dialogue. This emphasizes examining ways of strengthening the institutional capacity
of ILO constituents as well as their contribution to the process of dialogue.
The concept of Decent Work emphasizes that the quantity of employment should not be divorced
from quality of work and stresses that a social and economic system should be evolved to ensure basic
security and employment without compromising workers’ rights and social standards in a highly
competitive world.
Linkage Between Trade and Labour Standard

The issue of linkage between trade and labour standards was first raised at the conclusions of the
Uruguay Round at Marrakesh in 1994 by the USA. India and other developing countries had taken
the position that labour standards at the international levels can be appropriately addressed only in
the ILO, not in the WTO. The social clause is not within the mandate of the WTO. In response, India
had countered that the relationship between trade and immigration policies may also be examined in
the WTO. The issue was not pursued seriously by the US for sometime thereafter.
The issue again came up at the First Ministerial Conference of the WTO in Singapore in 1996. In
this Conference, developing countries including India once again rejected the proposal of the US to
include labour standards as an agenda in the WTO. The final Ministerial Declaration at Singapore
endorsed the stand of the developing countries and reiterated the following:
i. ILO is the competent body to set and deal with core labour standards and WTO affirms its
support in promoting such standards.
ii. It rejected the use of labour standards for protectionist purposes and agreed that the comparative
advantage of countries, particularly low wage developing countries, must in no way be put
into question.
iii. It noted that the WTO and ILO Secretariats would continue their existing collaboration.

1. _____________ refers to all type of relation- (A) Cooperation (B) Conflict
ship between all the parties concerned with (C) Both A & B (D) All of these
industry. 7. Which of the following is not the part of the
(A) Industrial relation scope of Industrial relations?
(B) Human relation (A) Labour relation
(C) General Relation (B) Employees-employee relation
(D) All of these (C) Group relation
2. The scope of IR does not include (D) None of these
(A) Employer and employee relation 8. Main aspects of Industrial relations are
(B) Employee and trade union relation (A) Promotion and development of healthy
(C) Employee, employer and trade union management and labour relations
relation (B) Maintenance of industrial peace and
(D) Employee and customer relation avoidance of industrial strife
3. Modern industrial organisation is based (C) Development of industrial democracy
upon two large aggregates that is (D) All of these
(A) Accumulation and aggregation of large 9. Which of the following factors affecting IR?
capital (A) Institutional factors
(B) Aggregation of large number of workers (B) Economic factors
organised under trade union
(C) Social factors
(C) Both A & B
(D) All of these
(D) None of these
10. Which of the following factors not affecting
4. Dominate aspects of industrial relations are Industrial relations?
(A) Cooperation (B) Conflict (A) Psychological factors
(C) Both A & B (D) All of these (B) Political factors
5. Modern Industrial productions is based (C) Global factors
upon __________between labour and capi- (D) None of these
tal. Labour stands for the workers who man
the factories and other establishment. Capi- 11. _________are related items like state policy,
tal stands for the owners of business enter- labour laws, voluntary codes, collective bar-
prise who supply the capital and own the gaining agreement, labour union employee
final products organisation.
(A) Cooperation (B) Conflict (A) Institutional factors
(C) Both A & B (D) All of these (B) Economic factors
(C) Social factors
6. The frequency of work stoppages resulting
either from strike and lockouts, and the slow- (D) All of these
ing down the production are the occasion- 12. _____ are included economic organisation.
ally expression of ever present and latent Nature and composition of the workforce,
______________between workers and the the sources of labour supply, labour market
management. relative status, disparity of wages between
group, level of unemployment and economic (C) Oxford approach
cycle. (D) All of these
(A) Institutional factors 19. Multi dimensional model of IR is developed
(B) Economic factors by
(C) Social factors (A) Kenneth Walker
(D) All of these (B) Herbert Simon
13. Various issues included are international (C) Chester Barnard
relation, global conflicts, dominant eco- (D) All of these
nomic political ideologies, global cultural 20. _______presented IR model from manage-
milieu etc. rial point of view.
(A) Psychological factors (A) Kenneth Walker
(B) Political factors (B) Richard Peterson
(C) Global factors (C) Chester Barnard
14. Which of the following is not the approaches 21. The “Industrial relation system” book is writ-
to industrial relation includes ten by
(A) Social action model (A) John Dunlop
(B) Sociological approach (B) Herbert Simon
(C) Scientific management (C) Chester Barnard
15. Which of the following is the approaches of 22. Dunlop system model core elements includes
the Industrial relation?
(A) The actors in a system
(A) Gandhian approach
(B) The context of a system
(B) System approach
(C) The ideology of an IR
(C) Oxford approach
(D) All of these
(D) All of these
23. Which of the following is not adjudication
16. Marxist Approach, Industrial Sociology & machinery under the ID act?
Giri approach related to
(A) Labour court
(A) Industrial relation
(B) Court of inquiry
(B) OD
(C) Industrial Tribunal
(C) Employee welfare
(D) National Tribunal
(D) All of these
24. Oxford approach was advocated by
17. John Dunlop gave the
(A) Flanders (B) Herbert Simon
(B) System approach
25. Which of the following is not a duty of a
(C) Oxford approach
conciliation officer?
(D) All of these
(A) To induces parties to come to fair and
18. This approach is quite helpful in studying amicable decision on the matter in dis-
the IR in the sense that is focuses on partici- putes
pants in the process, environmental forces (B) To act as a mediator
and output.
(C) To promote settlement of dispute
(D) To act as a adjudicator
(B) System approach
26. Collective bargaining was considered as (C) Industrial Sociology
apex of IR system is concerned with (D) All of these
(A) Gandhian approach 33. Human relation approach was developed
(B) System approach by
(C) Oxford approach (A) G . Margerison
(D) All of these (B) Elton Mayo
27. Industrial Sociology approach was given by (C) Chester Barnard
(A) G .Margerison (D) All of these
(B) Herbert Simon 34. ________emphasized that industrial peace
(C) Chester Barnard (D) All of these might be secured through collective bargain-
28. Social factors like workers attitude, percep- ing. There must be mutual settlement of dis-
tion, value system has got directs impacts putes through collective bargaining and
on IR. IR is a part of society and the value voluntary arbitration and not the compul-
system, custom, status symbols and institu- sory adjudication.
tions of the society affects the IR system. The (A) Marxist approach
approach is (B) Giri approach
(A) Marxist approach (C) Industrial sociology
(B) Giri approach (D) All of these
(C) Industrial Sociology 35. Which one of the following is the free enter-
(D) All of these prise system?
29. The social action model has its origin in (A) Marxist (B) Capitalism
(A) Weberian Sociology (C) Industrial (D) All of these
(B) Herbert Simon 36. ________is based on fundamental principle
(C) Chester Barnard of truth, non-violence and non-possession.
(D) All of these (A) Gandhian approach
30. A new industrial cum social pattern emerges (B) System approach
a new behaviour patterns and new tech- (C) Oxford approach
niques handling resources is called (D) All of these
(A) Social action model 37. Which of the following is an objectives of
(B) Sociological approach IR?
(C) Human relation approach (A) To safeguard mutual trust
(D) All of these (B) To raise productivity
31. Psychological approach was given by (C) To avoid industrial strike
(A) G. Margerison (D) All of these
(B) Mason Haire 38. Which of the following is not an objective of
(C) Chester Barnard IR?
(D) All of these (A) To establish industrial democracy
32. The psychologist view the problem of IR as (B) To eliminate ID
deeply rooted in the perception and the atti- (C) To boost discipline
tude of focal participants. This perception (D) None of these
may be about the person, the situation and 39. Evolution of IR in India can be studied into
the issue of the conflicts. three periods that is
(A) Marxist approach (A) Pre independence era
(B) Psychological approach (B) Post independence era
(C) Future of IR (C) Conflict Relation
40. Temporary closing down the undertaking 48. Which of the following is the forms of in-
with the intention of forcing workers to ac- dustrial disputes?
cepts the demand of the employer is called (A) Strike (B) Lockouts
(A) Lockout (C) Gherao (D) All of these
(B) Layoff 49. Which of the following is not a form of
(C) Strike industrial disputes
(D) Retrenchment (A) Picketing (B) Boycott
41. IR in ______has being governed by the pro- (C) Gherao (D) None of these
cess of collective bargaining accompanied 50. Temporary cessation of work by a group of
by the trail of strength between parties. workers is called
(A) USA (B) UK (A) Strike (B) Lockouts
(C) Both A & B (D) None of these (C) Gherao (D) All of these
42. American labour movement is organised at 51. Who said there are three actors of IR?
three level that name is (A) Lester
(A) Local Union (B) Dale Yoder
(B) Intermediate bodies (C) John T Dunlop
(C) National union (D) Mc Kersie
(D) All of these
52. Commonly known as wild cat strike is one
43. In USA two important central organisation which is called without the approval of the
are union.
(A) AFL (B) CIO (A) Non authorized
(C) Both A & B (D) None of these (B) General and particular
44. Concepts in employee association in USA (C) Quickie
are (D) All of these
(A) Cumulative employer association 53. _______has a wide coverage, but the degree
(B) Negotiators employers association of generality to the nature of coverage varies
(C) Administrative employers association considerably from strike to strike.
(D) All of these (A) Authorised
45. U.K. government appointed royal commis- (B) General strike
sion in (C) Quickie
(A) 1965 (B) 1970 (D) All of these
(C) Both A & B (D) None of these 54. _________are limited in scope and are usu-
46. The chairman of the royal commission ap- ally confined to a single trade and occupa-
pointment by U.K. government was tion in particular town and city.
(A) Lord Donovan (B) Lord Radon (A) Non authorised
(C) Both A & B (D) None of these (B) Particular strike
47. The conflicts and disputes between employ- (C) Quickie
ers and employees on any industrial mat- (D) All of these
ters are known as a 55. The most common of the former category
(A) Industrial disputes strike is/are
(B) Human relation (A) Slow-down strike
(B) Quickie strike (A) Sympathetic strike
(C) Sit-down strike (B) Jurisdictional strike
(D) All of these (C) Political strike
56. In a strike of this type, workers do not actu- (D) General strike
ally stop the work, rather than they slow 62. ________are conducted with a view to force
down the pace of their work. For e.g. sugar an employer to recognize and bargain with
industry a particular trade union instead to another.
(A) Slow-down strike (A) Sympathetic Strike
(B) Quickie strike (B) Jurisdictional strike
(C) Sit-down strike (C) Political strike
(D) Work-to-rule strike (D) General strike
57. _______workers remain in their place of 63. Strike of this sort are intended to put pres-
work, but they stop work for a brief periods, sure in the governments to do something or
that is, for a few minutes of a few hours. desist for doing something.
(A) Slow-down strike (A) Sympathetic strike
(B) Quickie strike (B) Jurisdictional strike
(C) Sit-down strike (C) Political strike
(D) Work-to-rule strike (D) General strike
58. Workers remain in their place of work but 64. ________involves the entire working class
they do not work. The duration of the stop- of a country can rarely be caused by indus-
page of work in sit down strike is longer than trial disputes.
quickie strike. (A) Sympathetic strike
(A) Slow-down strike (B) Jurisdictional strike
(B) Quickie strike (C) Political strike
(C) Sit-down strike (D) General strike
(D) Work-to-rule strike 65. The members of the management are pro-
59. In___the employee are not formally in strike hibited from leaving the business or residen-
similar to the slow down strike. The employ- tial premises by the workers who block their
ees declare that they perform their task exit through human barricades.
strictly accordance with the rule prescribed. (A) Picketing (B) Boycott
(A) Slow-down strike (C) Gherao (D) All of these
(B) Quickie strike 66. The employer closes the place of the work to
(C) Sit-down strike put pressure on the workers to agree to his
(D) Work-to-rule strike term and conditions.
60. Which of the following are the types of the (A) Picketing (B) Lockout
Strike based on generic purposes ? (C) Gherao (D) All of these
(A) Sympathetic strike 67. _________worker are dissuaded from re-
(B) Jurisdictional strike porting for work by certain person stationed
(C) Political & general strike at the gate of the factory it is legal as long no
(D) All of these violence involved.
(A) Picketing (B) Boycott
61. When the member of the union collectively
stop work to support or express their sym- (C) Gherao (D) All of these
pathy with the member of their union who 68. Striking workers prevents others from en-
are on strike in other undertaking. tering through forcefully appeals and nega-
tive behavioral acts.
(A) Picketing discussion and consultation on various
(B) Boycott labour issues.
(C) Gherao (A) Tripartite bodies
(D) All of these (B) Bipartite bodies
69. Classification of industrial disputes is con- (C) Both A & B
cerned with (D) None of the above
(A) Interest disputes & recognition disputes 76. In ______the representative of labour, em-
(B) Grievance and right disputes ployers and government must meet regularly
(C) Disputes over unfair labour practice to discuss and hold consultations on impor-
(D) All of these tant matters relating to IR.
70. Which of the following is the causes of ID? (A) Tripartite bodies
(A) Economic (B) Bipartite Bodies
(B) Managerial (C) Both A & B
(C) Political (D) None of these
(D) All of these 77. That the behaviour, actions and role of the
individuals are primarily shaped by the cul-
71. Which of the following is not the economic
tures of the society is the basic assumption
causes of ID
in the
(A) Wages and allowance
(A) Social action approach
(B) Bonus
(B) System approach
(C) Working condition & hour
(C) Both A & B
(D) None of these
(D) All of these
72. That the behaviour, actions and role of the
78. Which of the following is not the type of tri-
partite bodies?
in the (A) National renewal fund
(A) Psychological approach (B) Central implementation and evaluation
machinery
(B) System approach
(C) Steering committee on wages
(C) Social action model
(D) None of these
(D) All of these
79. First ILC conference held in
73. The utility of non-violence as the means of
conflict resolution is the core principle of the (A) Delhi
(A) Gandhian approach (B) Bombay
(B) Social approach (C) Both A & B
(D) All of these 80. They are purely consultive and non nego-
tiable bodies which are set up exclusively to
74. Which of the following is the Industrial dis-
deal with the disputes affecting the plant
putes settlement machinery
and industry.
(A) Tripartite bodies
(B) Bipartite bodies
(C) Both A & B
(C) Both A & B
(D) None of these
75. Various _______have been formed by the
union government to provide a forum for
81. From the given bodies, the Bipartite body is/ (A) Conciliation
are (B) Arbitration
(A) Work Committee (C) Adjudication
(B) JMC (D) Collective bargaining
(C) Both A & B 88. Which of the following are the methods of
(D) None of these conciliation provide under ID act 1947
82. Every industrial undertaking employing (A) Conciliation
100 or more workers is under an obligation (B) Conciliation Officer
to set up a_________ consisting of represen- (C) Board of Conciliation
tative of employer and employee. (D) All of the above
(A) Work Committee
89. Work committee is a
(B) JMC
(C) Both A & B
(D) None of these
(C) Both A & B
83. The concepts of JMC was given in (D) None of these
(A) Industrial resolution 1956
90. The duty of the _______is to mediate in and
(B) 1967 promotes the settlement of ID. He is inde-
(C) Both A & B pendent person who investigates the dis-
(D) None of these putes and all matter affecting there to.
84. More close participation and interaction be- (A) Conciliation
tween labour and management is estab- (B) Conciliation Officer
lished in order to create a cooperative envi- (C) Board of Conciliation
ronment for negotiation and settlement. (D) All of the above
(A) Work Committee
91. The _________is bound to hold conciliation
(B) JMC in case of public utility services, while he is
(C) Both A & B not bound to do so in case of non-public util-
(D) None of these ity services.
85. The JMC are set up in (A) Conciliation
(A) 1957 (B) Conciliation Officer
(B) 1967 (C) Board of Conciliation
(C) Both A & B (D) All of the above
(D) None of these 92. Board of conciliation consists of how many
86. Industrial disputes settlement machinery– members.
II is concerned with (A) Chairman & two or four member
(A) Conciliation (B) One person
(B) Arbitration (C) Both A & B
(C) Adjudication (D) None of these
(D) Collective bargaining 93. _________is an adhoc body, tripartite body
87. ________ provided a mutually acceptable having the power of civil court created for
solution between both the disputing parties. specific dispute. The board cannot enforce
Its aim is to bring out the speedy settlements any award. It can take action only when dis-
of disputes without resorts to strike an lock- putes have referred to it by the government.
outs. (A) Conciliation
(B) Conciliation Officer (A) Voluntary arbitration
(C) Board of conciliation (B) Compulsory arbitration
(D) All of the above (C) Both A & B
94. A ________is a fact finding body and is not (D) None of these
required to make any recommendation for 101. When one of the parties to an industrial dis-
the settlement of ID. putes feels aggrieved by an act of the others,
(A) Conciliation it may apply the appropriate government to
(B) Court of Inquiry refers the disputed adjudication machinery
(C) Board of conciliation (A) Voluntary arbitration
(D) All of the above (B) Compulsory arbitration
95. Court of Inquiry submit reports to the gov- (C) Both A & B
ernment within (D) None of these
(A) 6 months 102. ________mean a mandatory settlement of ID
(B) 1 months by labour court, industrial tribunal and na-
(C) Both A & B tional tribunal under the ID act or any oth-
(D) None of these ers corresponding state statues.
96. Court of Inquiry consist of how many mem- (A) Conciliation
bers. (B) Voluntary Arbitration
(A) Chairman & two or four member (C) Adjudication
(B) One or more person (D) Collective bargaining
(C) Both A & B 103. Three tier system of adjudication are con-
(D) None of these cerned with
97. Gandhian technique of resolving ID is (A) Labour Court
( A) Conciliation (B) Industrial tribunal
(B) Voluntary arbitration (C) National tribunal
(C) Adjudication (D) All of the above
(D) Collective bargaining 104. The inability of an employer to provide em-
98. _______is a means of securing awards on a ployment due to shortage of power, raw
conflict issue by reference to a third party. In material and breakdown of machinery is
this process in which dispute is submitted called
to an impartial outsider who makes a deci- (A) Retrenchment
sion which is usually binding both parties. (B) Lockout
(A) Conciliation (C) Lay-off
(B) Voluntary arbitration (D) None of the above
(C) Adjudication 105. Labour court consist of how many persons
(D) Collective bargaining (A) Chairman & two or four member
99. The Types of arbitration include (B) one person only
(A) Voluntary arbitration (C) Both A & B
(B) Compulsory arbitration (D) None of these
(C) Both A & B 106. The appropriate government may be notifi-
(D) None of these cation in official gazette constitute one or
100. Here both parties are willing to go an arbi- more ________for adjudication of ID relat-
trator and submit to his decision ing to disputes orders of the employers.
(A) Labour court 115. __________involves the critical activity of
(B) Industrial tribunal negotiation, where each side has some power
(C) National tribunal to apply sanctions over the other.
(D) All of the above (A) Collective Bargaining
107. The state government have been empowered (B) System approach
to as many industrial tribunals as it thinks (C) Both A & B
proper for the adjudication of the dispute (D) All of these
relating to wages, hour of work rest, inter- 116. Using employees strategically to meet the
val, holiday bonus and profits. shifting demands of the competitive envi-
(A) Labour court ronment in terms of time, contract and skills
(B) Industrial tribunal (A) Flexible working time
(C) National tribunal (B) Free time
(D) All of the above (C) Both A & B
108. _______are set up by the central for the ad- (D) All of these
judication of the ID which involves the ques- 117. Different degrees and forms of Labour man-
tion of national importance. agement cooperation /worker participation
(A) Labour court in management is
(B) Industrial tribunal (A) Information sharing
(C) National tribunal (B) Problem sharing
(D) All of the above (C) Joint Consultation & WPM
109. Code of discipline in industry came into force (D) All of these
(A) 1958 (B) 1957 118. Work committee was set up in
(C) 1967 (D) All of these (A) 1947 (B) 1957
110. First industrial committee was set up in (C) 1967 (D) All of these
(A) 1947 (B) 1957 119. Joint management council was set up in
(C) 1967 (D) All of these (A) 1947 (B) 1958
111. Non statutory wage boards first set up in (C) 1967 (D) All of the above
(A) 1958 (B) 1957 120. Board level participation was set up in
(C) 1967 (D) All of these (A) 1947 (B) 1970
112. First national commission was set up in (C) 1967 (D) All of the above
(A) 1969 (B) 1957 121. Shop council and joint council under old
(C) 1967 (D) All of the above 20–point programme was set up in
113. Seconds national commission was set up in (A) 1947 (B) 1975
(A) 2002 (B) 1957 (C) 1967 (D) All of these
(C) 1967 (D) All of these 122. Unit council and joint council in commer-
114. __________is viewed as a industrial democ- cial and services organisation in the public
racy based on the principle of equity, equal- sectors was set up in
ity and voluntarism. (A) 1977 (B) 1957
(A) Work Committee (C) 1967 (D) All of these
(B) Worker participation in management 123. Institutional of employees participation in
(C) Both A & B management for public sectors undertaking
(D) None of these (A) 1947 (B) 1957
(C) 1983 (D) All of these
124. Varma committee (1977) was set up under (B) Performance standards and private sec-
the chairmanship of tor involvement
(A) Ravindra Verma (C) Both A & B
(B) J.T. Dunlop (D) All of these
(C) Dale Yoder 131. It involves haggling over the distribution of
(D) All of the above surplus. Under it, the economic issue wages,
125. ILO was established in salaries and bonus discussed
(A) 1999 (B) 1957 (A) Distributive bargaining
(C) 1967 (D) All of these (B) Integrative bargaining
126. The employer of every industrial unit em- (C) Attitudinal structuring
ploying _________or more workman is re- (D) Intra-organisational
quired to constitute a shop council for each 132. This involves negotiation of an issue on
department. which both parties may gain or at least nei-
(A) 100 (B) 500 ther party loses
(C) 1000 (D) All of these (A) Distributive bargaining
127. The schemes applies to the units of manu- (B) Integrative bargaining
facturing and mining industries in the pub- (C) Attitudinal structuring
lic, private and cooperative sectors. (D) Intra-organisational
(A) Work committee 133. This involves shaping and reshaping some
(B) JMC attitude like trust or distrust, friendliness or
(C) Shop council hostility between labour management
(D) Joint council (A) Distributive bargaining
128. A ____________ was setup in each unit of (B) Integrative bargaining
the organisation/services employing 100 or (C) Attitudinal structuring
more persons to discuss day-to-day prob- (D) Intra-organisational
lems and find solution. 134. Structure of the ILO includes
(A) Work Committee (A) International Labour conference
(B) JMC (B) Governing body
(C) Unit council (C) International Labour office
(D) Joint council (D) All of the above
129. _______is a term used to define a situation 135. Which of the following is the causes of ID?
in which the essential condition of employ- (A) Psychological factors
ment are determined by a bargaining pro-
(B) Institutional factors
cess undertaken by representative of work-
ers and the representative of management. (C) Economic
(D) All of these
(A) Collective Bargaining
(B) Negotiation 136. Which is known as home of collective bar-
(C) WPM gaining?
(D) All of the above (A) Great Britain
(B) UK
130. The public sector modernising agenda of the
New Labour administration involves which (C) Both A & B
of the following? (D) None of these
(A) A combination of planning and market 137. The phrase collective bargaining was first
driven strategies which emphasizes coined by
Public investment (A) Sidney & Beatrice Webb
(B) UK (A) 160 (B) 193
(C) Both A & B (C) 191 (D) None of these
(D) None of these 148. Disputes over the right of a trade union to
138. Webb was first to use the term collective bar- represent a particular class or category of
gaining workers for purpose of collective bargain-
(A) 1891 (B) 1890 ing?
(C) Both A & B (D) None of these (A) Unfair labour practices
139. V.V. Giri national labour institute was set in (B) Grievances disputes
(A) 1891 (B) 1890 (C) Both A & B
(C) 1974 (D) None of these (D) None of these
140. Worker participation in management is high- 149. As per the ID act 1947 the constitution of
lighted in work committee is mandatory if the number
of workers are
(A) Article 43A (B) Article 42A
(A) 200 or more
(B) 100 or more
141. Disputes that arise the facts for the interfer-
(C) 300 or more
ence with the exercise of the right to organise
are known as (D) None of these
(A) Unfair Labour practices 150. WPM has __________objectives.
(B) Interest disputes (A) Economic
(C) Both A & B (B) Psychological
142. ILO was established under the treaty of (D) None of these
(A) Berne (B) Versailles 151. Trusteeship approach to IR is given by
(C) Both A & B (D) None of these (A) Gandhiji
143. ILO, s conventions and recommendation are (B) Herbert Simon
instruments for creating & established inter- (C) Chester Barnard
national_______social and labour standard. (D) All of these
(A) Minimum (B) Maximum 152. “State shall make provision for securing just
(C) Both A & B (D) None of these & human condition of work & for maternity
144. In ____the ILO adopted convention concern- relief” comes under.
ing equal remuneration for male and female (A) Article 39
workers for of equal value. (B) Article 42
(A) 1931 (B) 1951 (C) Article 45
145. ILO was adopted ________conventions. 153. Equal pay for equal work for both men and
(A) 160 (B) 185 women is highlighted in
(C) 191 (D) None of these (A) Article 41
146. Out of 185 convention adopted by ILO, India (B) Article 43A
have ratified _____convention. (C) Article 45
(A) 160 (B) 185 (D) All of these
(C) 39 (D) None of these 154. Which of the following is the form of ID?
147. ILO has adopted __________ recommenda- (A) Strike (B) Lockouts
tions. (C) Gheraos (D) All of these
155. This approach sees conflicts of interest and 163. Who said “industrial society necessarily
disagreements between managers and work- create IR and it defined as complex of inter-
ers over the distribution of profits as normal relation among, worker, manager and gov-
and inescapable. ernment”
(A) Marxists Perspective (A) Robert Hoxie
(B) Pluralistic-Perspective (B) Selig Perlman
(C) Both A & B (C) John T. Dunlop
(D) All of these (D) Mc Kersie
156. A scheme known as Employee’s participa- 164. ILO was born on
tion in management was formulated in (A) April 19, 1919 (B) Feb. 19,1919
(A) 1891 (B) 1890 (C) Both A & B (D) None of these
(C) 1983 (D) None of these 165. India becomes a member of ILO in
157. ILO was established under the Treaty of (A) 1891 (B) 1890
(A) Versailles (C) 1919 (D) None of these
(B) Zurich 166. ______is the ultimate remedy for the settle-
(C) Brussels ment of ID through the intervention by the
(D) All of these third party appointed by the government.
158. Under_________ type of cooperation, the (A) Conciliation
employer agrees to keep the employee in- (B) Voluntary Arbitration
formed about business condition & general (C) Adjudication
prospects of the company (D) Collective bargaining
(A) Information Sharing 167. In USA the labour management relation act
(B) Problem Sharing (Taft Hartley act) was enacted in
(C) Joint Consultation (A) 1937 (B) 1947
(D) None of these (C) 1957 (D) 1967
159. _________co-operation is specific & related 168. The constitution of India upholds “freedom
to particular issues. of association’s a fundamental right enun-
(A) Information Sharing ciated by I.L.O. convention in
(B) Problem Sharing (A) Article 20 C (B) Article 19 C
(C) Joint Consultation (C) Article 24C (D) Article 18 C
(D) None of these 169. The international organisation of employ-
160. The first Industrial committee was set up in ers (I.O.E.) with headquarters in Geneva was
(A) 1891 (B) 1890 formulated in
(C) 1947 (D) None of these (A) 1910 (B) 1920
161. The first Industrial committee was set up in (C) 1930 (D) 1967
1947 for 170. Globalization is ruthless, rootless, jobless
(A) Plantation (B) Cotton Textile and fruitless was state be
(C) Coal (D) None of these (A) U.N.O (B) U.N.D.P
162. The first Non statutory wage board was set (C) I.L.O (D) W.H.O
up in 1947 for 171. Who has propounded the system concept
(A) Plantation of industrial relations? Find out from the
(B) Cotton Textile following.
(C) Coal (A) L.N. Allen Flonder
] (D) None of these (B) John T. Dunlop
(C) L.N. Flax 178. Who has stated that collective bargaining is
(D) Neil N. Chamberlein essentially a process in which employees act
172. Recognition of trade union is made by the as a group in seeking to shape conditions
provision of and relationship in their employment.
(A) Trade Unions Act of 1926 (A) Sydney and Beatrice Webb
(B) Code of Discipline (B) Richardson
(C) Industrial Dispute Act 1947 (C) Dale Yoder
(D) Factories Act of 1948 (D) L.G. Reynolds
173. Plenary labour conferences was the initial 179. Who are not the actors according to Dunlop
name of which of the following organisation framework of IR system
(A) ILO (A) Manager and their representative
(B) Standing labour committee (B) Workers and their organisation
(C) Indian labour conference (C) Specialized government agencies
(D) International labour conference (D) Communities and association
174. Who considered collective bargaining as the 180. __________ “Industrial relation” describe
most important concepts for determining the “relationship between management and
terms and condition of employment employees or among employees and their
(A) Sydney and Beatrice Webb organisation their characteristics and grow
out of employment.”
(B) Robert Hoxie
(A) Sydney and Beatrice Webb
(C) John T Dunlop (D) Samuel Gompers
(B) Richardson
175. Sidney and Beatrice Webb first use the term
of the “collective bargaining” in (C) Dale Yoder
(A 1952 (B) 1961 (D) L.G. Reynolds
(C) 1958 (D) 1962 181. Who observed that the respect of the rule
depends on the manner of their formulation?
176. Who Said “collective bargaining is a model
of fixing the term of employment by means (A) Sydney and Beatrice Webb
of bargaining between an organised body of (B) Flander A
employers and employees and or associa- (C) Durkhiem E
tion of employees usually acting through (D) Gouldners
organised agent. 182. Benefits (India) of globalisation like sus-
(A) Sydney and Beatrice Webb tained economic growth free markets, eco-
(B) Robert Hoxie nomic globalisation, privatisation etc. were
(C) John T Dunlop (D) Samuel Gompers summarised in
177. Who considered collective bargaining take (A) First national commission
place when a number of work people enter (B) Second national commission
into a negotiation as bargaining unit with (C) National labour board
an employer or group of employers with the (D) ILO
objects of reaching an agreement on the con- 183. Which of the following is not machinery for
dition of employment settlement of ID in India?
(A) Board of conciliation
(B) Richardson
(B) Labour court
(C) John T Dunlop
(C) Collective bargaining
(D) Samuel Gompers
(D) National Tribunal
184. The origin growth and development of em- (C) Both A & B
ployment organisation in India can be iden- (D) All of these
tified in as 192. Which of the following approaches insists
(A) Before 1933 (B) After 1933 on investigating the underlying trends and
(C) Before 1947 (D) After 1947 pattern in the cause and effects of industrial
185. Who propounded the system concepts of the dispute?
IR (A) Industrial sociology approach
(A) Sydney and Beatrice Webb (B) Gandhian approach
(B) Richardson (C) Both A & B
(C) John T Dunlop (D) All of these
(D) L.G. Reynolds 193. Which of the following approaches assumes
186. Identify the correct definition of Industrial that voluntary negotiations between employ-
Relation? ers and employees are a means of settling
(A) Relation between or among human disputes?
being (A) Human relation approach
(B) Relation between employer and employ- (B) Giri approach
ees (C) Both A & B
(C) Relation between parties in employment (D) All of these
context 194. That the behaviour, actions and role of the
(D) Collective relationship between man- individuals are primarily shaped by the cul-
agement and trade union. tures of the society is the basic assumption
187. Which of the following is not machinery in the
from settlement of ID in India? (A) Pluralist approach
(A) ILC & SLC (B) Giri approach
(B) Conciliation officers (C) Both A & B
(C) Labour Court (D) All of these
(D) National Tribunal 195. Which of the following approaches assumes
188. In USA, the labour management relation act that the understanding of industrial rela-
(Wagner act) was enacted in tions requires an understanding of the capi-
(A) 1936 (B) 1947 talized society?
(C) 1957 (D) 1967 (A) Gandhian approach
189. In USA, the labour management relation act (B) Marxist approach
(Narris–La guaradia act) was enacted in (C) Both A & B
(A) 1932 (B) 1947 (D) All of these
(C) 1957 (D) 1967 196. That the behaviour, actions and role of the
190. In USA, the labour management relation act individuals are primarily shaped by the cul-
(Landrum –Griffin act) was enacted in tures of the society is the basic assumption
in the
(A) 1959 (B) 1969
(C) 1984 (D) 1967
(B) System approach
191. Productivity bargaining is considered as a
(C) Social action model
classic example of
(D) All of these
(A) Oxford school approach
(B) Gandhian approach 197. The utility of non-violence as the means of
conflict resolution is the core principle of the
(B) System approach 204. Match the following
(C) Both A & B (a) Industrial Sociology (i) M.Gandhi
(D) All of these approach
198. Unfair Labour Practices are listed in (b) Psychological (ii) Mason Haire
(A) The factories Act, 1948 approach
(B) The Industrial Disputes Act, 1947 (c) Marxists approach (iii) G. Margerison
(C) The Industrial Employment Act, 1946 (d) Gandhian (iv) V.V Giri
(D) The trade Unions Act, 1926 approach
199. Which of the following is not a Tripartite Codes :
body? (a) ( b) ( c) ( d)
(A) Wage Boards (A) (iii) (ii) (i) (iv)
(B) Works Committee (B) (iii) (ii) (iv) (i)
(C) Indian labour Conference (C) (iii) (ii) (i) (iv)
(D) I.L.O. (D) (i) (iv) (iii) (ii)
200. Money Wage is otherwise called as 205. Match the following
(A) Nominal Wage (a) Industrial Democracy (i) Sydney
(B) Living Wage approach & Webb
(C) Real Wage (b) Social Psychological (ii) Robert
(D) Fair Wage approach Hoxie
201. The constitution of India upholds the prin- (c) Capitalism approach (iii) Frank
ciple ‘Freedom of Association’ as a funda- Tannbuan
mental right enunciated by I.L.O convention (d) Anti Capitalism or (iv) Karl Marx
in Revolutionary approach
(A) Article 20(C) (B) Article 19(C) Codes :
(C) Article 24(C) (D) Article 18(C) (a) (b) ( c) (d)
202. Who defined Industrial Relation as a “Rule (A) (iii) (ii) (i) (iv)
Making Process”? (B) (ii) (iii) (iv) (i)
(A) Robert Hoxie (C) (i) (ii) (iii) (iv)
(B) Selig Perlman (D) (i) (iv) (iii) (ii)
(C) John T Dunlop 206. Match the following
(D) Mc Kersie (a) Gandhi approach (i) Sydney&
203. Match the following Webb
(a) System approach (i) M.Gandhi (b) Sarvodaya approach (ii) M. Gandhi
(b) Oxford approach (ii) John T (c) Capitalism approach (iii) Frank
Dunlop Tannbuan
(c) Marxists approach (iii) Flanders (d) Anti Capitalism or (iv) Karl Marx
(d) Gandhian approach (iv) V.V. Giri Revolutionary
Codes : Codes :
(a) ( b) ( c) ( d) (a) (b) ( c) (d)
(A) (iii) (ii) ( i) (iv) (A) (iv) (ii) (i) (iii)
(B) (ii) (iii) ( iv) (i) (B) (ii) (iii) (iv) (i)
(C) (ii) (iii) ( iv) (i) (C) (iii) (ii) ( i) (iv)
(D) (i) (iv) ( iii) (ii) (D) (i) (iv) (iii) (ii)
207. Match the following Codes :
List-I List-II (a) (b) ( c) (d)
(a) Strike (i) The action of employer is (A) (iii) (ii) (i) (iv)
temporarily closing down (B) (ii) (iii) (iv) (i)
his undertaking (C) (iv) (i) (ii) (iii)
(b) Lockout (ii) Refusal of the employer to (D) (i) (iv) (iii) (ii)
employ the workers be-
210. Match the following
cause of coal, power and
raw material (a) Two or more (i) Board of
members conciliation
(c) Layoff (iii) Temporarily cessation of
work by a group of em- (b) Chairman & two (ii) Work Committee
ployees in order to express or four member
their grievances (c) One member (iii) Labour court
(d) Closure (iv) Permanently closing (d) Number of work- (iv) Court
down of the establishment man representative Inquiry
by the employer not less than
Management
Codes :
representative
(a) (b) ( c) (d)
Codes :
(A) (iii) (i) (ii) (iv)
(a) (b) ( c) (d)
(B) (iii) (iv) (i) (ii)
(A) (iv) (iii) (ii) (i)
(C) (ii) (i) (iii) (iv) (B) (iv) (i) (iii) (ii)
(D) (iv) (ii) (i) (iii) (C) (iii) (i) (iv) (ii)
208. Match the following (D) (ii) (iii) (iv) (i)
Methods Product 211. Which is the correct order of settlement of ID?
(a) Conciliation (i) Report (a) Industrial Tribunal
(b) Collective (ii) Award (b) National Tribunal
Bargaining (c) Conciliation
(c) Investigation (iii) Settlement (d) Labour court
(d) Adjudication (iv) Agreement Codes :
Codes : (a) (b) ( c) (d)
(a) (b) ( c) (d) (A) (c) (a) (b) (d)
(A) (iii) (ii) (iv) (i) (B) (c) (d) (a) (b)
(B) (iii) (iv) (i) (ii) (C) (a) (d) (c) (b)
(C) (ii) (i) (iii) (iv) (D) (c) (b) (d) (a)
(D) (iv) (ii) (i) (iii) 212. Arrange the following disputes settlement
209. Match the following Machineries in the order in which they are
(a) Conciliation (i) ILO given in ID ACT
Machinery (a) Industrial Tribunal
(b) Consultation (ii) Industrial (b) National Tribunal
Machinery Tribunal (c) Work Committee
(c) Adjudication (iii) Arbitration (d) Labour court
Machinery (e) Court of inquiry
(d) Arbitration (iv) Board of (f) Board of Conciliation
Machinery conciliation (g) Conciliation
Codes : (a) The decision of labour court is_______
(a) (b) ( c) (d) (e) (f) (g) (b) Canteen committee is______
(A) (d) (e) (f) (g) (a) (b) (c) (c) Deduction of union membership fee is
(B) (c) (g) (f) (e) (d) (a) (b) called_________
(C) (a) (d) (c) (b) (f) (g) (e) (d) ILO is _______
(D) (c) (b) (d) (a) (g) (e) (f) Codes :
213. Fill up the blank from one of the suitable (a) (b) ( c) (d)
words given. Select the correct combination (A) (ii) (v) ( vi) (viii)
(i) Award (B) (viii) (iv) (ii) (i)
(ii) Bipartite (C) (i) (ii) (iv) (iii)
(iii) Tripartite body (D) (iii) (v) (vii) (i)
(iv) Check Off 214. In USA, the labour management relation act
(v) Deduction (Taft Hartley act) was enacted in
(vi) International Federation (A) 1937 (B) 1947
(vii) settlement (C) 1957 (D) 1967
(viii) Consultive body
ANSWER KEY
1. (A) 2. (D) 3. (C) 4. (C) 5. (A) 6. (B) 7. (D) 8. (D) 9. (D) 10. (D)
11. (A) 12. (B) 13. (C) 14. (C) 15. (D) 16. (A) 17. (B) 18. (B) 19. (A) 20. (B)
21. (A) 22. (D) 23. (B) 24. (A) 25. (D) 26. (C) 27. (A) 28. (C) 29. (A) 30. (A)
31. (B) 32. (B) 33. (B) 34. (B) 35. (B) 36. (A) 37. (D) 38. (D) 39. (D) 40. (A)
41. (A) 42. (D) 43. (C) 44. (D) 45. (A) 46. (A) 47. (A) 48. (D) 49. (D) 50. (A)
51. (C) 52. (A) 53. (B) 54. (B) 55. (D) 56. (A) 57. (B) 58. (C) 59. (D) 60. (D)
61. (A) 62. (B) 63. (C) 64. (D) 65. (C) 66. (B) 67. (A) 68. (B) 69. (D) 70. (D)
71. (D) 72. (B) 73. (A) 74. (C) 75. (A) 76. (A) 77. (B) 78. (D) 79. (A) 80. (B)
81. (C) 82. (A) 83. (A) 84. (B) 85. (A) 86. (B) 87. (A) 88. (D) 89. (B) 90. (B)
91. (B) 92. (A) 93. (C) 94. (B) 95. (A) 96. (B) 97. (B) 98. (B) 99. (C) 100. (A)
101. (B) 102. (C) 103. (D) 104. (C) 105. (B) 106. (A) 107. (B) 108. (C) 109. (A) 110. (A)
111. (A) 112. (A) 113. (A) 114. (B) 115. (A) 116. (A) 117. (D) 118. (A) 119. (B) 120. (B)
121. (B) 122. (A) 123. (C) 124. (A) 125. (A) 126. (B) 127. (C) 128. (C) 129. (A) 130. (C)
131. (A) 132. (B) 133. (C) 134. (D) 135. (D) 136. (A) 137. (A) 138. (A) 139. (C) 140. (A)
141. (A) 142. (B) 143. (A) 144. (B) 145. (B) 146. (C) 147. (B) 148. (A) 149. (B) 150. (C)
151. (A) 152. (B) 153. (B) 154. (D) 155. (B) 156. (C) 157. (A) 158. (A) 159. (B) 160. (C)
161. (A) 162. (B) 163. (C) 164. (A) 165. (C) 166. (C) 167. (B) 168. (B) 169. (B) 170. (B)
171. (B) 172. (B) 173. (D) 174. (D) 175. (B) 176. (B) 177. (B) 178. (C) 179. (D) 180. (C)
181. (C) 182. (B) 183. (C) 184. (A) 185. (C) 186. (D) 187. (A) 188. (A) 189. (A) 190. (A)
191. (A) 192. (A) 193. (B) 194. (A) 195. (B) 196. (B) 197. (A) 198. (B) 199. (B) 200. (A)
201. (B) 202. (C) 203. (C) 204. (C) 205. (C) 206. (C) 207. (A) 208. (B) 209. (C) 210. (B)
211. (B) 212. (B) 213. (B) 214. (B)
UNIT
TRADE UNIONS
MEANING OF TRADE UNIONS

A trade union is an organization of employees formed on a continuous basis for the purpose of
securing diverse range of benefits. It is a continuous association of wage earners for the purpose of
maintaining and improving the conditions of their working lives. The Trade Union Act 1926 defines
a trade union as a combination, whether temporary or permanent, formed primarily for the purpose of
regulating the relations between workmen and employers or between workmen and workmen, or
between employers and employers, or for imposing restrictive condition on the conduct of any trade or
business, and includes any federation of two or more trade unions.
This definition is very exhaustive as it includes associations of both the workers and employers
and the federations of their associations. Here, the relationships that have been talked about are both
temporary and permanent. This means it applies to temporary workers (or contractual employees) as
well. Then this definition, primarily, talks about three relationships. They are the relationships between
the:
 workmen and workmen,
 workmen and employers,
 employers and employers.
Trade unions are associations of workers or organization formed together by labour, workers or
employees to achieve their demands for better conditions at their work atmosphere. In the United
States, trade unions go by the name labour unions. A labour union, or trade union, is an organization
of workers who have joined together to achieve goals in areas such as wages and working conditions.
The union negotiates contracts and conditions with employers, keeping employee satisfaction high
and protecting workers from unsafe or unfair working conditions.
These unions exist to deal with problems faced by labourers, these problems may be of any nature
such as those concerning the pay, unfair work rules, timings and so on. All the workers working
under one particular employer is represented by the worker’s union. All the communication that
happens in between the employer and the workforce generally takes place through the union. All of
the above trade unions are also liable and responsible for maintaining discipline and among the
workers, core purpose is to see that proper relations or being maintained in between management and
workers and trade union may take disciplinary action against the workers who ever misbehaves,
disturbed peace and harmony in the workplace and maintenance indiscipline.
(387)
Definition
According to Webb’s, a Trade Union is a continuous association of wage earners for the purpose of
maintaining and improving the conditions of their working lives.
According to De Cenzo & Robbins (1993), A more recent and non-legislative definition of a union is
“an organisation of workers acting collectively who seek to protect and promote their mutual interests
through collective bargaining”.
A modern definition by the Australian Bureau of Statistics states that a trade union is ‘an
organisation consisting predominantly of employees, the principal activities of which include the
negotiation of rates of pay and conditions of employment for its members.”
Recent historical research by Bob James in Craft, trade or Mystery (2001) puts forward the view
that trade unions are part of a broader movement of benefit societies, which includes medieval guilts,
Freemasons, Oddfellows, friently societies and other fraternal organizations.
There are three Forms of Trade Unions

Classical. A trade union’s main objective is to collectively protect the interests of its members in given
socio-economic-political system. Trade Unions are the expressions of the needs, aspirations and
wishes of the working class.
Neo-classical. It goes beyond classical objectives and tries to improve up other wider issues like tax-
reliefs, raising saving rates etc.
Revolutionary. Change in the system. Establishing the rule of working class even through violence
and use of force etc.
Objectives of Trade Unions

A. Wages and Salaries. The subject which drew the major attention of the trade unions is wages
and salaries. Of course, this item may be related to policy matters. However, differences may
arise in the process of their implementation. In the case of unorganised sector the trade union
plays a crucial role in bargaining the pay scales.
B. Working Conditions. Trade unions with a view to safeguard the health of workers demands
the management to provide all the basic facilities such as, lighting and ventilation, sanitation,
rest rooms, safety equipment while discharging hazardous duties, drinking, refreshment,
minimum working hours, leave and rest, holidays with pay, job satisfaction, social security
benefits and other welfare measures.
C. Discipline. Trade unions not only conduct negotiations in respect of the items with which their
working conditions may be improved but also protect the workers from the clutches of management
whenever workers become the victims of management’s unilateral acts and disciplinary policies.
This victimisation may take the form of penal transfers, suspensions, dismissals, etc. In such a
situation the separated worker who is left in a helpless condition may approach the trade union.
Ultimately the problem may be brought to the notice of management by the trade union and it
explains about the injustice met out to an individual worker and fights the management for
justice. Thus, the victimised worker may be protected by the trade union.
D. Personnel Policies. Trade unions may fight against improper implementation of personnel
policies in respect of recruitment, selection, promotions, transfers, training, etc.
E. Welfare. As stated earlier, trade unions are meant for the welfare of workers. Trade union
works as a guide, consulting authority and cooperates in overcoming the personnel problems
of workers. It may bring to the notice of management, through collective bargaining meetings,
the difficulties of workers in respect of sanitation, hospitals, quarters, schools and colleges for
their children’s cultural and social problems.
Trade Unions 389
F. Employee-employer relation. Harmonious relations between the employees and employer is a
sine quo non for industrial peace. A trade union always strives for achieving this objective.
However, the bureaucratic attitude and unilateral thinking of management may lead to conflicts
in the organisation which ultimately disrupt the relations between the workers and management.
Trade union, being the representative of all the workers, may carry out continuous negotiations
with the management with a view to promote industrial peace.
G. Negotiating machinery. Negotiations include the proposals made by one party and the counter
proposals of the other party. This process continues until the parties reach an agreement. Thus,
negotiations are based on ‘give and take’ principle. Trade union being a party for negotiations
protects the interests of workers through collective bargaining. Thus, the trade union works as
the negotiating machinery.
H. Safeguarding organisational health and the interest of the industry. Organisational health
can be diagnosed by methods evolved for grievance redressal and techniques adopted to reduce
the rate of absenteeism and labour turnover and to improve the employee relations. Trade
unions by their effective working may achieve employee satisfaction. Thus, trade unions help
in reducing the rate of absenteeism, labour turnover and developing systematic grievance
settlement procedures leading to harmonious industrial relations. Trade unions can thus
contribute to the improvements in level of production and productivity, discipline and improve
quality of work life.
Functions of Trade Unions

Trade unions perform a number of functions in order to achieve the objectives. These functions can be
broadly classified into four categories:
1. Militant Functions. One set of activities performed by trade unions leads to the betterment of
the position of their members in relation to their employment. The aim of such activities is to
ensure adequate wages secure better conditions of work and employment get better treatment
from employers, etc. When the unions fail to accomplish these aims by the method of collective
bargaining and negotiations, they adopt an approach and put up a fight with the management
in the form of go-slow tactics, strike, boycott, gherao, etc. Hence, these functions of the trade
unions are known as militant or fighting functions. Thus, the militant functions of trade unions
can be summed up as:
m To achieve higher wages and better working conditions.
m To raise the status of workers as a part of industry.
m To protect labours against victimization and injustice.
2. Fraternal Functions. Another set of activities performed by trade unions aims at rendering help
to its members in times of need, and improving their efficiency. Trade unions try to foster a spirit
of cooperation and promote friendly industrial relations and diffuse education and culture
among their members. They take up welfare measures for improving the morale of workers and
generate self confidence among them. They also arrange for legal assistance to its members, if
necessary. Besides, these, they undertake many welfare measures for their members, e.g., school
for the education of children, library, reading-rooms, in-door and out-door games, and other
recreational facilities. Some trade unions even undertake publication of some magazine or
journal.
These activities, which may be called fraternal functions, depend on the availability of funds,
which the unions raise by subscription from members and donations from outsiders, and also
on their competent and enlightened leadership. Thus, the fraternal functions of trade unions
can be summed up as:
m To take up welfare measures for improving the morale of workers.
m To generate self confidence among workers.
m To encourage sincerity and discipline among workers.
m To provide opportunities for promotion and growth.
m To protect women workers against discrimination.
3. Social Functions. Besides the main economic functions consisting basically of organising unions
and improving their terms and conditions of employment to enable workers to meet their
physical needs, some unions have now started undertaking and organising welfare activities
and also providing variety of services to their members and sometimes to the community of
which they are a part, which may be grouped under following heads:
(i) Welfare activities provided to improve the quality of work life including organisation of
mutual fund, cooperative credit societies for providing housing, cooperative stores, cultural
programmes, banking and medical facilities and training for women in various crafts to
help them to supplement their family income.
(ii) Education. Education of members in all aspects of their working life including improving
their civic life, awareness in the environment around them, enhancement of their knowledge
particularly in regard to issues that concern them, their statutory and other rights and
responsibilities, workers’ participation in management.
(iii) Scheme, and procedure for redressing their grievances. Some central union organisations
are also assisting the Government in implementing the Workers’ Education Scheme.
(iv) Publication of periodicals, newsletters or magazines for establishing communication with
their members, making the latter aware of union policy and stand on certain principal
issues and personnel matters concerning members, such as births, deaths, marriages,
promotion and achievements.
(v) Research. Of late, this is gaining importance and is intended mainly to provide updated
information to union negotiators at the bargaining table. Such research is to be more practical
than academic, concerning problems relating to day-to-day affairs of the union and its
activities and union and management relations. Some of the research activities are : (i)
collection and analysis of wage data including fringe benefits, and other benefits and
services through surveys of comparative practices, data on working conditions and welfare
activities; (ii) preparation of background notes for court cases and also position papers for
union officials; (iii) collection and analysis of macro data relating to the economy, industry
sectors etc. All the above mentioned activities and services are considered normal activities
of unions in the Trade Unions Act which stipulates the objectives on which general funds
of the union can be spent.
4. Political Functions. These functions include affiliating the union with a political party, helping
the political party in enrolling members, collecting donations, seeking the help of political
parties during the periods of strikes and lockouts.
Theories of Trade Unionism

The Important theories of trade unionism are as follows :
1. Karl Marx theory of Classless society. This theory is also called anti-capitalism approach.
Karl marx represented trade union as an instrument for destroying the capitalist class. The
trade unionism become necessary to bring about revolunatry and fundamental changes in the
social order of the workers. Marx considered trade union as an instrument to overthrow
capitalism. He Believed that the capitalism develop three tendency.
Trade Unions 391
(i) The tendency of heavy conservations of wealth in the hands of few of the largest capitalists.
(ii) The tendency towards a steady depression of wages and growing misery of the wage
earners keep revolutionary order alive.
(iii) The inevitable and frequent economic crisis under capitalism lead the working class
towards destruction. In his view, it was imperative for the workers of the world to collects
in an international.
2. Webb’s Theory of Industrial Democracy or Non–Revolutionary. Webb’s book ‘Industrial de-
mocracy’ is the Bible of trade unionism. According to Webb, trade unionism is an extension of
democracy from political sphere to industrial sphere. Webb agreed with Marx that trade union-
ism is a class struggle and modern capitalist state is a transitional phase which will lead to dem-
ocratic socialism. He considered collective bargaining as the process which strengthens labour.
3. Cole’s Theory of Union Control of Industry. Cole’s views are given in his book “World of
Labour” 1913. His views are somewhere in between Webb and Marx. He agrees that unionism
is class struggle and the ultimate is the control of industry by labour and not revolution as
predicted by Marx. As per cole, the ultimate objective of the trade union is to have control of the
workers over the industry, although the immediate objectives may be realizations of higher
wages and better condition of employment for the workers.
4. Perlman’s Theory of the “Scarcity Consciousness” of Manual Workers. He rejected the idea
of class consciousness as an explanation for the origin of the trade union movement but
substituted it with what he called job consciousness.
According to him, ‘working people in reality felt an urge towards collective control of their
employment opportunities, but hardly towards similar control of industry.’ Perlman observed
that three dominant factors emerged from the rich historical data:
(i) The capacity or incapacity of the capitalist system to survive as a ruling group in the face
of revolutionary attacks (e.g., failure in Russia).
(ii) The source of the anti-capitalist influences being primarily from among the intellectuals in
any society.
(iii) The most vital factor in the labour situation was the trade union movement. Trade unionism,
which is essentially pragmatic, struggles constantly not only against the employers for an
enlarged opportunity measure in income, security and liberty in the shop and industry,
but struggles also, whether consciously or unconsciously, actively or passively, against
the intellectual who would frame its programmes and shape its policies.
But Perlman also felt that a theory of the labour movement should include a theory of the
psychology of the labouring man. For instance, there was a historical continuity between the
guilds and trade unions, through their common fundamental psychology; the psychology of
seeking a livelihood in the face of limited economic opportunity. It was when manual workers
became aware of a scarcity of opportunity, that they banded together into unions for the purpose
of protecting their jobs and distributing employment opportunities among themselves equitably,
and to subordinate the interests of the individual to the whole labour organism. Unionism was
ruled thus by this fundamental scarcity consciousness (Perlman, 1970).
5. Hoxie’s Social psychological approach. He classified Unionism on the basis of their functions.
His classification were Business Unionism for protecting the interest of various craftsmen,
“Uplift unionism” for the purpose of contributing better life such as association of sales engineers
etc. “Revolutionary Unionism” which is eager to replace existing social order, “Predatory
Unionism” which rests on these support of others.
In other words workers are not divergent in temperament and training but are similar situated
at economic and social levels, they have common interpretations of their social situation to
their problem of living, so that unite into a union.
6. Tannenbaum’s Theory of capitalism approach or Man Vs. Machine. He traces the rise of
union to the industrial revolution and the workers reaction to the philosophy of individualism.
He believed that the fundamental cause of exploitation of workers in the use of machines. The
machines threatens the security of the individual workers and they react in self defence, through
the union, to attempt to control of machines.
According to him Union is formed in reaction to alienation and loss of community in an
individualistic and unfeeling society. In his words, the union returns to the workers his society,
which he left behind him when he migrated from a rural background to the anonymity of an
urban industrial location. The union gives the worker a fellowship and a value system that he
shares with others like him. Institutionally, the trade union movement is an unconscious effort
to harness the drift of our time and reorganise it around the cohesive identity that men working
together always achieve Reasons for Joining Trade Union.
7. Common’s Environment Theory. He was sceptical of generalisations and believed only that
which could be proved by evidence. He agreed that collective bargaining was an instrument of
class struggle, but he summarised that ultimately there will be partnership between employers
and employees.
8. Mitchell’s Economic Protection Theory of Trade Unionism. Mitchell, a labour leader, completely
rejected individual bargaining. According to him unions afford economic protection to.
9. Simons Theory of Monopolistic. He denounced trade unionism as monopoly founded on
violence. And he claimed monopoly power has no use save abuse.
10. Sarvodaya Approach of Gandhi. Mahatma gandhi approach to the growth of trade union was
contrary to those of karl marx. Gandhiji philosophy is based upon the sarvodaya principle of
truth, trusteeship and non violence. He believed trade union as economic institutions in which
capital and labour are not antagonistic but are supplementary to each others. In gandhiji
words, “My ideals is that capital and labour should supplement and help each other. They
should be a great family living in unity and harmony. Capital not only looking material welfare
of the labourers but their moral welfare also-capitalist being trustee of the welfare of the labouring
classes under them.
Structure of Trade Unions

Trade union have emerged for the protection of common interest of the workers. Different types of
trade union have been formed to protect and defend the workers from injustice and encroachment. A
wide variety of union have emerged across the globe.
I. On the Basis of Purpose
1. Reformist union. These unions aim to retain present structure of the capitalist society. They
want to maintain the usual employer and employee relationship by eliminating the competitive
system of production. They seek to dignify labour by availing the right of importance and
recognition by the society. They never wish to destroy the existing social, economic or political
structure of the state.
Types of Reformist Unions. R.F. Hoxie has divided reformist union into two categories
(a) Business Unionism. Smooth and cordial business relationship are enjoyed between the
employer and the employee under business unionism. All their problem conflict are solved
by collective bargaining and peaceful means of demonstration.
(b) Uplift Unionism. Also known as friendly or ideal unionism aims to enhance the social and
intellectual and moral values of the workers, such unionism put more emphasis on
insurance benefit, health, education and welfare measures, it advocates cooperative
enterprise, profit sharing and other idealistic norms.
Trade Unions 393
2. Revolutionary Union. Revolutionary unionism generally seeks to achieve their objectives by
destroying the existing capitalist structure and replacing it with socialist or communist society.
They believe in abolishment of the wage system and private property. They also strive to put an
end to the competitive society and existence of individual rights. They try to destroy the existing
economic system by revoluntary measures.
Industrial workers of the world (I.W.W.) are the common example of revolutionary trade union
in the USA.
The revolutionary union can be divided into four categories :
(i) Anarchist unions. Such union aims at destroying the present economic system by resorting
to revoluntary measures. They seek to abolish the wage system and private property.
(ii) Political union. Political union seek to redistribute the wealth by giving effective share to
the workers. They also enacts new rules to eliminate the capitalist structure of the state.
Political unions basically get their powers through political action only.
(iii) Predatory Union. Predatory union seek their objectives without sticking to any approach,
they may adopt business unionism, uplift unionism or revolutionary unionism for the
pursuance of their goal.
(iv) Guerrilla Union. They believe the exploitation, violence and non cooperation. They are
generally not democratic the leaders of guerrilla union are ruthless and irresponsible.
They do not believe in cooperation with their employers.
II. On the Basis of Membership Structure
1. Craft union. When the workers engaged in a single occupation or craft from a union, it is called
craft union. Craft union cover all worker engaged in the same craft, irrespective of the industries
in which they are employed. They stand for skilled labourers that work in a particular sector or
are employed in a particular craft.
2. Industrial unions. Unions organised on the basis of an industry rather than craft is called
industrial union. All workers skilled and semiskilled and unskilled working in a particular
they represent the workers trading in an industry regardless differences in the craft, skill,
position or sex from together an industrial union.. All the workers in that industry, not
considering which occupation or which job comes under that industry’s union.
3. Staff union. A combination of both craft union and industrial union is called staff union. It pre-
supposes unity and solidarity among the workers of different trades. Staff union is mostly
formed by the workers of territory sector like health services, tour and travel industry education
etc.
4. General unions. General unions represent labourers from all industries and professions
irrespective of what sector of the workforce they come from. Workers of different industries and
different occupations from general trade union.
TRADE UNIONS MOVEMENT IN INDIA

Structure of Trade Unions in India
In India there are two types of organisation to which trade unions are affiliated :
I. The National Federations. The national federations are the apex trade union, that brings
coordination in the activities of different trade union. Any trade union can join national
federation to have a national character in its policies. Generally the national federation and
politically learned and the leadership of such federations and politically learned and the
leadership to such federations is provided by politicians. Some of the trade union leaders are
MLA, MP, big corporate.
II. The Federations of union. Various union combine together to form the federation of unions for
the purpose of gaining more solidarity and strength. Such federation can take collective action,
when such need arises, without losing their individuality. The federation of unions have local,
regional, state, national and international character. In India, many trade union are affiliated
to one or the other central organisation. The central trade union or national federations or
federations of union are :
At present there are twelve Central Trade Union Organizations in India:
1. All India Trade Union Congress (AITUC)
2. Bharatiya Mazdoor Sangh (BMS)
3. Centre of Indian Trade Unions (CITU)
4. Hind Mazdoor Kisan Panchayat (HMKP)
5. Hind Mazdoor Sabha (HMS)
6. United Trade Union Congress (UTUC) and
7. Trade Unions Co-ordination Centre (TUCC)
8. United Trade Union Congress - Lenin Sarani (UTUC - LS)
9. National Labour Organization (NLO)
10. Indian National Trade Union Congress (INTUC)
11. Indian Federation of Free Trade Unions (IFFTU)
12. National Front of Indian Trade Unions (NFITU)
Role of the Trade Unions

Adopting the model of Prof. Clark Kerr unions assume the following roles:
A. Sectional Bargainers. Interests of the workers at plant, industry, national level multiplicity of
unions, Crafts Unions, white Collar Union etc.
B. Class Bargainers. Unions representing the interest of the class as whole as in France Agricultural
Unions, Federations of unions, Civil Servants Union.
C. Agents of State. As in U.S.S.R., ensuring targets of production at fixed price. In 1974 Railway
strike, INTUC stood behind Government and its agent.
D. Partners in Social Control. Co-determinate in Germany. Also, some examples are found in
Holland, France, Italy and Sweden; some half-hearted attempts are being made in India also.
E. Unions role which can be termed as enemies of economic systems, driven by political ideologies
than business compulsions. Leftist unions want to change the fundamental structure of economy
and want to have control over it. Therefore, they encourage high wages, high bonus etc. without
any consideration for the health of the economy.
F. Business Oriented Role. Here unions consider the interests of the organisation along with
workers. They think that their member’s fate is inextricably linked with that of organisation
and they swim or sink together.
G. Unions as Change Agent. Lead the changes than to be led by them and thus, performing the
pioneering role.
Types of Trade Unions
1. Craft union. They stand for skilled labourers that work in a particular sector or are employed in
a particular craft.
2. Industrial unions. They represent the workers trading in an industry. All the workers in that
industry, not considering which occupation or which job comes under that industry’s union.
3. General unions. General unions represent labourers from all industries and professions
irrespective of what sector of the workforce they come from.
Trade Unions 395
4. White collar unions. They stand for professionals who work from an office such as those who
occupy a managerial or administrative chair.
Aim & objectives of Trade Union Movement in India

1. To establish a socialist state in India.
2. To socialize and nationalize the means of production, distribution and exchange as far as
possible.
3. To ameliorate the economic and social conditions of the working class.
4. The watch promote, safeguard and further the interests, rights and privileges of the workers in
all matters relating to their employment.
5. To co-ordinate the activities of the trade unions affiliated to the AITUC.
6. To fight against all forms of atrocities against women and harassment at place of work.
Classification of Trade Unions

Classification of trade unions is based upon ideology, trade and agreement.
1. Classification Based on Ideology

a. Revolutionary Unions. Believe in destruction of existing social/economic order and creation
of a new one. They want shift in power and authority and use of force - Left Unions.
b. Reformist or Welfare Unions. Work for changes and reforms within existing socio-political
framework of society - European Model.
c. Uplift Unions. Advocate extensive reforms well beyond the area of working condition i.e.,
change in taxation system, elimination of poverty etc.
2. Classification Based on Trade

At the other extreme in terms of the range of workers represented in the general union, which has
members drawn from all trades. Most unions in India and Sri Lanka are in this category.
m Many unions have memberships and jurisdictions based on the trades they represent. The
most narrow in membership is the craft union, which represents only members certified in a
given craft or trade, such as pipe fitting, carpentry, and clerical work. Although very common
in the western world, craft unions are not common in countries like India and Sri Lanka.
m At the other extreme in terms of the range of workers represented in the general union, which
has members drawn from all trades. Most unions in India and Sri Lanka are in this category.
Another common delineation of unions based on trades or crafts is that between so called blue-
collar workers and white-collar workers. Unions representing workers employed on the
production floor, or outdoor trades such as in construction work, are called blue-collar unions.
In contrast, those employees in shops and offices and who are not in management grades and
perform clerical and allied functions are called white-collar workers.
m In addition, trade unions may be categorized on the basis of the industry in which they are
employed. Examples of these are workers engaged in agriculture of forestry: hence agricultural
labour unions or forest worker unions.
3. Classification Based on Agreement

Another basis on which labour agreements are sometimes distinguished is on basis of the type of
agreement involved, based on the degree to which membership in the union is a condition of
employment. These are:
A. Closed Shop. Where management and union agree that the union would have sole responsibility
and authority for the recruitment of workers, it is called a Closed Shop agreement. The worker
joins the union to become an employee of the shop. The Taft-Hartley Act of 1947 bans closed
shop agreements in the USA, although they still exist in the construction and printing trades.
Sometimes, the closed shop is also called the ‘Hiring Hall.’
B. Union Shop. Where there is an agreement that all new recruits must join the union within a
fixed period after employment it is called a union shop. In the USA where some states are
declared to be ‘right-to-work’.
C. Preferential Shop. When a Union member is given preference in filling a vacancy, such an
agreement is called Preferential Shop.
D. Maintenance Shop. In this type of arrangement no compulsory membership in the union before
or after recruitment exists. However, if the employee chooses to become a member after recruitment,
his membership remains compulsory right throughout his tenure of employment with that
particular employer. This is called maintenance of membership shop or maintenance shop.
E. Agency Shop. In terms of the agreement between management and the union a non union
member has to pay the union a sum equivalent to a member’s subscription in order to continue
employment with the employer. This is called an agency shop.
F. Open Shop. Membership in a union is in no way compulsory or obligatory either before or after
recruitment. In such organizations, sometimes there is no union at all. This is least desirable
form for unions. This is referred to as an open shop.
The important forces that make the employees to join a union are as follows :
1. Greater Bargaining Power. The individual employee possesses very little bargaining power as
compared to that of his employer. If he is not satisfied with the wage and other conditions of
employment, he can leave the job. It is not practicable to continually resign from one job after
another when he is dissatisfied. This imposes a great financial and emotional burden upon the
worker. The better course for him is to join a union that can take concerted action against the
employer. The threat or actuality of a strike by a union is a powerful tool that often causes the
employer to accept the demands of the workers for better conditions of employment.
2. Minimize Discrimination. The decisions regarding pay, work, transfer, promotion, etc. are
highly subjective in nature. The personal relationships existing between the supervisor and each
of his subordinates may influence the management. Thus, there are chances of favouritisms and
discriminations. A trade union can compel the management to formulate personnel policies that
press for equality of treatment to the workers. All the labour decisions of the management are
under close scrutiny of the labour union. This has the effect of minimizing favouritism and
discrimination.
3. Sense of Security. The employees may join the unions because of their belief that it is an
effective way to secure adequate protection from various types of hazards and income insecurity
such as accident, injury, illness, unemployment, etc.
4. Sense of Participation. The employees can participate in management of matters affecting their
interests only if they join trade unions. They can influence the decisions that are taken as a
result of collective bargaining between the union and the management.
5. Sense of Belongingness. Many employees joins a union because their co-workers are the
members of the union. At times, an employee joins a union under group pressure; if he does not,
he often has a very difficult time at work. On the other hand, those who are members of a union
feel that they gain respect in the eyes of their fellow workers. They can also discuss their
problem with’ the trade union leaders.
Trade Unions 397
6. Platform for self-expression. The desire for self-expression is a fundamental human drive for
most people. All of us wish to share our feelings, ideas and opinions with others. Similarly the
workers also want the management to listen to them. A trade union provides such a forum
where the feelings, ideas and opinions of the workers could be discussed. It can also transmit
the feelings, ideas, opinions and complaints of the workers to the management. The collective
voice of the workers is heard by the management and give due consideration while taking
policy decisions by the management.
7. Betterment of relationships. Another reason for employees joining unions is that employees
feel that unions can fulfil the important need for adequate machinery for proper maintenance
of employer-employee relations. Unions help in betterment of industrial relations among
management and workers by solving the problems peacefully.
Problems and Measures to Strengthen Trade Unions

Over the years, trade unions in India have been taken for a ride by outside, political leaders. In the
process, the interests of workers and their aspirations have been totally neglected. The Trade Unions
Act, 1926, did not go for recognising a representative union. As a result multiple unions have cropped
up, often with blessings from management and outsiders. The union finances have not been very
sound in the beginning. The average membership figures for each union remain poor and have not
improved. The forces of liberalisation unleashed in early 90s have strengthened the hands of employers
in closing down unviable units. The new corporate ‘mantras’ productivity, performance, efficiency,
survival of the fittest have virtually pushed them to the wall-where their very survival looks uncertain.
Let’s recount the factors responsible for their ever-increasing woes and depreciated status thus as
below:
1. Trade Union Leadership

The nature of leadership significantly influences the union-management relations as the leadership is
the lynch-pin of the management of trade unions. The leadership of most of the trade unions in India
has been outside leadership mainly drawn from political parties.
Reasons for emergence of outside leadership. Outside leadership has been playing a pivotal role in
Indian Trade Union Movement due to the inability of insiders to lead their movement. In view of low
education standards and poor command over English language which is still the principal language
of labour legislation and negotiations, low level of knowledge about labour legislation, unsound
financial position, fear of victimisation by the employer and lack of leadership qualities-outside leaders
have come to stay. The main reason for this trend is that the Trade Unions Act, 1926, [India] itself
provided the scope for outside leadership.
The evil effects of outside leadership. The evil effects of outside leadership analysed by National
Commission on Labour are as follows:
1. Outside leadership undermined the purposes of Trade Unions and weakened their authority.
Personal benefits and prejudices sometimes weighed more than unions.
2. Outside leadership has been responsible for the slow growth of Trade Unions.
3. Internal leadership has not been developed fully.
4. Most of the leaders cannot understand the worker’ problems as they do not live the life of a
worker.
Even though outside leadership is permissible in the initial stages it is undesirable in the long run
because of many evils associated with it. Political differences of leaders have been inhibiting the
formation of one union in one industry. Most of the Trade Union leaders fulfil their personal aspirations
with their knowledge and experience gained in the Trade Unions.
Measures to minimise the evil effects of outside leadership. In view of the limitations of outside
leadership, it is desirable to replace the outside leaders progressively by the internal leaders. The
National Commission on Labour, 1969, also stated that outsiders in the Trade Unions should be made
redundant by forces from within rather than by legal means. Both the management and trade unions
should take steps in this direction. The steps may be:
m Management should assure that the victimisation will be at zero level, even if the trade unions
are led by insiders;
m Extensive training facilities in the areas of leadership skills, management techniques and
programmes should be provided to the workers;
m Special leave should be sanctioned to the office bearers.
Union rivalry has been the result of the following factors:
1. The desire of political parties to have their basis among the industrial workers;
2. Person-cum-fractional politics of the local union leader;
3. Domination of unions by outside leaders;
4. Attitude and policies of the management, i.e., divide and rule policy; and
5. The weak legal framework of trade unions.
Measures to minimise union rivalry. In view of the evil effects of inter-union rivalry and the problem
of formation of one union in one industry, it may be necessary to consider the recommendations of
National Commission on Labour, 1969. The recommendations of NCL to minimise union rivalry are:
1. Elimination of party politics and outsiders through building up of internal leaders;
2. Promotion of collective bargaining through recognition of sole bargaining agents;
3. Improving the system of union recognition;
4. Encouraging union security; and
5. Empowering labour courts to settle inter-union disputes if they are not settled within the
organisation.
2. Multiple Unions
Multiple unionisms both at the plant and industry levels pose a serious threat to industrial peace and
harmony in India. The situation of multiple unions is said to prevail when two or more unions in the
same plant or industry try to assert rival claims over each other and function with overlapping
jurisdiction. The multiple unions exist due to the existence of craft unions, formations of two or more
unions in the industry. Multiple unionisms is not a phenomenon unique to India. It exists even in
advance countries like UK and USA. Multiple unionisms affect the industrial relations system both
positively and negatively. It is sometimes desirable for the healthy and democratic health of labour
movement. It encourages a healthy competition and acts as a check to the adoption of undemocratic
practice, authoritative structure and autocratic leadership. However, the negative impacts of multiple
unions dominate the positive impacts. The nature of competition tends to convert itself into a sense of
unfair competition resulting in inter-union rivalry. The rivalry destroys the feeling of mutual trust and
cooperation among leadership. It is a major cause for weakening the Trade Union Movement in India.
Multiple unionisms also results in small size of the unions, poor finances, etc.
3. Union Rivalry
The formal basis for Trade Union Organisation is provided by the Indian Trade Union Act, 1926. The
relevant article reads as follows: “Any seven or more members of a trade union may be subscribing
their name to the roles of the trade union and by otherwise complying with the provisions of this act
with respect to the registration, apply for registration of the trade union under this Act.”
Trade Unions 399
This provision has led to the formation of multiple unions and resulted in inter union rivalry in
different industries. But the inter-union rivalry breaks the very purpose of the trade unions by
weakening the strength of collective bargaining. On the other hand, the existence of a single, strong
union not only protects the employee interests more effectively but also halts the various unproductive
activities of the unions and forces the leaders to concentrate on the strategic issues. Further, it helps to
bring about congenial industrial relations by bringing about a system of orderliness in dealing with
the employees and by facilitating expeditious settlement of disputes.
The state of rivalry between two groups of the same union is said to be inter union rivalry. Inter
and intra-union rivalries have been a potent cause of industrial disputes in the country. They are
responsible for weal bargaining power of trade unions in collective bargaining. These rivalries are
responsible for slow growth of trade union movement in the country.
4. Finance
Sound financial position is an essential ingredient for the effective functioning of trade unions, because
in the process of rendering services or fulfilling their goals, trade unions have to perform a variety of
functions and organise programmes which require enormous financial commitments. Hence, it is
imperative on the part of a trade union to strengthen its financial position.
But it is felt that the income and expenditure of trade unions in India over the years is such, with
few exceptions, that the financial position of the union is generally weak, affecting their functioning.
It is opined that, “trade unions could be more effective, if they paid more attention to strengthening
their organisations and achieving higher attention of financial solvency.”
The primary source of income to the unions is membership subscription. Their other sources of
union finances are donations, sale of periodicals, etc. The items of expenditure include: allowances to
office bearers, salaries to office, annual convention/meeting expenses, rents, stationery, printing,
postage, telegrams, etc.
Most of the trade unions in India suffer from inadequate funds. This unsound financial position
is mostly due to low membership and low rate of membership fee. Trade Union Act, 1926, prescribed
the membership fee at 25 paise per member per month. But the National Commission on Labour
recommended the increase of rate of membership subscription from 25 paise to Re. 1 in the year 1990.
But the Government did not accept this recommendation.
As the National Commission on Labour observes, “an important factor limiting the effective
functioning of unions in our country has been their financial weakness.. In most unions, poor finances
are the result of inadequate membership strength. This in turn, can be traced to the small size of units.
In a majority of unions, the rate of contributions required of members is also small. With a relatively
low rate of unionisation, total funds collected are small. The general picture of finances of unions is
disappointing.”
5. Low Memberships
The average membership figures of each union are quite depressing. In 1992-93 the average membership
figure was 632, a steady fall from 3,594 per union from 1927-28. “Because of their small size, unions
suffer from lack of adequate funds and find it difficult to engage the services of experts to aid and
advise members in times of need”. They can’t bargain with the employer effectively on their own.
6. Heterogenous Nature of Labour

Since workers come to the factory with varying backgrounds; it is difficult for them to put a joint front
in case of trouble. Employers exploit the situation, under the circumstances, by dividing workers on
the basis of race, religion, language, caste, etc.
7. Lack of Interest
For a large majority of workers, unionism even today remains a foreign issue. In fact, workers avoid
union activities out of sheer disinterestedness. Those who become part of the union do not also
participate in the union work enthusiastically. In such a scenario, it is not surprising to find outside
political leaders exploiting the situation serve their own personal agenda.
8. Absence of Paid Office Bearer

Weak finances do not permit unions to engage the services of full time, paid office bearers. Union
activists, who work on a part time basis, neither have the time nor the energy to take up union activities
sincerely and diligently.
9. Other Problem
The other factors responsible for the unsound functioning of trade unions in India are:
1. Illiteracy. Workers in India fail to understand the implications of modern trade unionism.
Their illiteracy coupled with ignorance and indifference account for the predominance of outside
leadership.
2. Uneven growth. Trade unionism activities are, more or less, confined to major metros in India
and traceable only in large scale units (especially cotton textile. The membership fees should be
raised as the amount of wages of the workers increased significantly, compared to the situation
in 1926 when Trade Union Act provided for the collection of 25 paise per month per member as
subscription fee. Even amended Rs. 1/- is not sufficient. Some other source of finance may also
explore to make trade union financially healthy.
Measures to Strengthen Trade Union Movement in India

The following are some of the measures to minimise trade union problems and to strengthen the Trade
Union Movement of India.
(a) United Labour Front. Unions must put a joint front. Splinter groups multiple unions dissipate
their energies, dilute their power and reduce their effectiveness. Trade unions should form a
sort of labour party and all the trade unions in the country should be affiliated to it. It gives
adequate strength to the trade unions both industry and Parliament.
(b) Efficient Leadership. Outside political leadership has developed due to the absence of internal
leadership. Outside leadership is the main cause for the multiple problems of the trade unions.
These problems can be eradicated through the development of leadership talents from within.
Management should encourage internal workers to lead their own movement. Management
and trade unions should provide educational and training facilities for the development of
internal leadership.
(c) Membership Fees. In order to make updated trade union must organize continuous training
and developmental programme. Future needs smart and responsive trade union, if they have
survive and thrive.
(d) The trade union act should be amended in order to avoid dual membership.
(e) There should be legal provision for the recognition of the representative union.
(f) Unions should not interactive in day to day matters. They must focus on important issues
affecting workers.
Growth of Trade Union Movement
Trade unions in India, as in most other countries, have been the natural outcome the modem factory
system. The development of trade unionism in India has checkered history and a stormy career.
Trade Unions 401
Early Period
Efforts towards organising the workers for their welfare were made, during the early period of industrial
development by social workers, philanthropists and other religious leaders mostly on humanitarian
grounds. The first Factories Act, 1881, was passed on the basis of the recommendations of the Bombay
Factory Commission, 1875. Due to the limitations of the Act, the workers in Bombay Textile Industry
under the leadership of N. M. Lokhande demanded reduced of hours of work, weekly rest days, mid-
day recess and compensation for injuries. Bombay Mill owners’ Association conceded the demand for
weekly holiday. Consequently, Lokhande established the first Workers’ Union in India in 1890 in the
name of Bombay Mill hands Association. A labour journal called “Dinabandu” was also published.
Some of the important unions established during the period are: Amalgamated Society of Railway
Servants of India and Burma (1897), Management the Printers Union, Calcutta (1905) and the Bombay
Postal Union (1907), the Kamgar Hitavardhak Sabha (1910) and the Social Service League (1910). But
these unions were treated as adhoc bodies and could not serve the purpose of the TU.
Modest Beginning. The beginning of the labour movement in the modest sense started after the
outbreak of World War I in the country. Economic, social and political condition of the day influenced
the growth of the trade union movement in India. Establishment of the ILO in 1919 helped the formation
of trade union of the country. Madras labour union was formed on systematic lines in 1919. A number
of trade union was established between 1919 and 1923.
All India Trade Union Congress. The most important year in the history of Indian Trade Union
movement is 1920 when the All India Trade Union Congress (AITUC) was formed consequent upon the
necessity of electing delegates for the International Labour Organisation (ILO). This is the first all India
trade union in the country. The first meeting of the AITUC was held in October, 1920 at Bombay (now
Mumbai) under the presidentship of Lala Lajpat Rai. The formation of AITUC led to the establishment
of All India Railwaymen’s Federation (AIRF) in 1922. Many Company Railway Unions were affiliated
to it. Signs of militant tendency and revolutionary ideas were apparent during this period.
(a) Period of splits and mergers. The splinter group of AITUC formed All India Trade Union
Federation (AITUF) in 1929. Another split by the communists in 1931 led to the formation of All
India Red Trade Union Congress. Thus, splits were more common during the period. However,
efforts were made by the Railway Federation to bring unity within the AITUC unity. These
efforts did bear fruit and All India Red Trade Union Congress was dissolved. Added to this, All
India Trade Union Federation also merged with AITUC. The unified AITUC’s convention was
held in 1940 in Nagpur. But the unity did not last long.
The World War II brought splits in the AITUC. There were two groups in the AITUC, one
supporting the war while the other opposing it. The supporting group established its own
central organisation called the Indian Federation of Labour. A further split took place in 1947,
when the top leaders of the Indian National Congress formed another central organisation.
(b) Indian National Trade Union Congress. The efforts of Indian National Congress resulted in
the establishment of Indian National Trade Union Congress (INTUC) by bringing the split in
the AITUC; INTUC started gaining membership right from the beginning.
(c) Other Central Unions. Socialists separated from AITUC had formed Hind Mazdoor Sabha
(HMS) in 1948. The Indian Federation of Labour merged with the HMS, Radicals formed another
union under the name of United Trade Union Congress in 1949. Thus, the trade union movement
in the country was split into four distinct central unions during the short span of 1946 to 1949.
Some other central unions were also formed. They were Bharatiya Mazdoor Sangh (BMS) in
1955, the Hind Mazdoor Panchayat (HMP) in 1965 and the Centre of Indian Trade Unions
(CITU) in 1970. Thus, splinter group of INTUC formed Union Trade Union Congress, the split
in the Congress Party in 1969 resulted in the split in INTUC and let to the formation of National
Labour Organisation (NLO).
Present Position
There are over 9,000 trade unions in the country, including unregistered unions and more than 70
federations and confederations registered under the Trade Unions Act, 1926. The degree of unionism
is fairly high in organised industrial sector. It is negligible in the agricultural and unorganised sectors.
Though the number of unions has greatly increased in the last four decades, the union membership
per union has not kept pace. The National commission on labour has stated that only 131 unions had
a membership of over 5,000. More than 70% of the unions had a membership of below 500. Over the
years the average membership figures per union have fallen steadily from about 1387 in 1943 to 632 in
1992-93 (Pocket Book of Labour Statistics, 1997). Unions with a membership of over 2000 constitute
roughly 4 per cent of the total unions in the country. There is a high degree of unionisation (varying
from 30% to over 70%) in coal, cotton, textiles, iron and steel, railways, cement, banking, insurance,
ports and docks and tobacco sector. White-collar unions have also increased significantly covering
officers, senior executives, managers, civil servants, self employed professions like doctors, lawyers,
traders, etc. for safeguarding their interest.
There are as many as 10 central trade union organisations in the country (as against one or two in
UK, Japan, USA). The criteria for recognition as Central Trade Union has been that the combined
strength should be 5 lakhs numbers with a spread over to at least 4 states and 4 industries as on
31.12.89. Ten such Trade Unions are; (1) BMS (2) INTUC (3) HMS, (4) U.T.U.C - LS (5) AITUC (6) CITUC
(7) NLO (8) UTUC (9) TUCC (10) NFITU. As per one survey (Economic Times, 24.9.97) the five leading
Trade Unions’ strength are as follows:
Trade Union Strength

m BMS - 331 Lakhs
m INTUC - 271 Lakhs
m AITUC - 18 Lakhs
m HMS - 15 Lakhs
m CITU - 3.4 Lakhs
Trade Unions in India

The Indian workforce consists of 430 million workers, growing 2% annually. The Indian labor markets
consist of three sectors:
1. The rural workers, who constitute about 60 per cent of the workforce.
2. Organized sector, which employs 8 per cent of workforce, and
3. The urban informal sector (which includes the growing software industry and other services,
not included in the formal sector) which constitutes the rest 32 per cent of the workforce.
Recognitions of Trade Union

The underline idea of former trade union is to negotiate and bargain with employers to improve the
service and employment conditions of workers on their behalf. This collective bargaining process can
be possible only when employer recognises a trade union as bargaining agent and agree to negotiate
with it because it is difficult to negotiate with multiple trade unions in a single organisation.
The Trade Union Act, 1926, the only Central Law, which regulates the working of the unions does
not have any provision for recognition of trade union. Some attempts were made to include compulsory
recognition in the Trade Union Act in 1947, 1950, 1978 and 1988, but it could not be materialised.
There are, however, state legislations like Maharashtra Recognition of Trade Union and Prevention
of Unfair Labour Practices Act 1971, Madhya Pradesh Industrial Relations Act, 1960 and other states
Trade Unions 403
like Gujarat, Andhra Pradesh and Orissa etc. which have gone for such legislations, of late. The usual
methods used to determine union strength, which is the basis of the recognitions are following:
1. Election by Secret Ballot. Under which system, all eligible workers of an establishment may
vote for their chosen union, elections to be conducted by a neutral agent, generally the Registrar
of Unions, in a manner very similar to the conduct of general elections. Once held, the results of
the elections would remain valid for a minimum period, usually two years.
2. Check-Off method. Under which each individual worker authorises management in writing
to deduct union fees from his wages and credit it to the chosen union. This gives management
concrete evidence about the respective strengths of the unions. But the system is also prone to
manipulation, particularly collision between management and a favoured union. Sometimes,
genuine mistakes may occur, particularly when the number of employees is large. It also
depends on all unions accepting the method and cooperating in its implementation.
3. Verification of union membership method by the labour directorate as adopted as a resolution
in the same session of the ILC and used widely in many establishments. This process is carried
out by the labour directorate, which on the invitation of unions and management of an
organisation or industry, collects particulars of all unions in a plant, with regard to their
registration and membership. The claim lists of the unions, their fees books, membership records
and account books are scrutinised for duplicate membership. Under a later amendment, unions
also with lists of members in order to avoid dual membership. After cross checking of records,
physical sampling of workers, particularly in cases of doubt or duplication, a final verified list
is prepared for employers, unions and the government.
4. Rule of Thumb or intelligent guessing by management or general observation to assess
union strength, either by the response at gate meetings, strikes or discussions with employees.
This is not a reliable method, particularly in large establishments and can also be subject to
change at short intervals.
Of the above methods the first one is universally accepted method used all over the world but
there has been no consensus amount among the trade unions on that in India.

1. ________says “A Trade union is a continu- (B) Political activities
ous association of wage earners for the pur- (C) Social activities
pose of maintaining or improving the con- (D) None of these
dition of their working lives”.
8. Theories of trade union includes
(A) Industrial Democracy
(B) G.D.H. Cole
(B) Social psychological
(C) Both A& B
(C ) Capitalism approach
(D) None of these
(D) All of these
2. A_______ strives to protect maintain and
9. Which of the following are the theories of
improve, economic, social and vocational in-
trade union
terest of their members
(A) Sarvodaya approach
(A) Trade union
(B) Protest approach
(B) Employers union
(C) Anti capitalism or Revolutionary
(C) Both A& B
(D) All of these
(D) None of these
10. Which theory was given by Robert F. Hoxie?
3. The Objectives of trade union includes
(A) Employee compensation
(B) Social psychological approach
(B) Working condition
(C) Capitalism approach
(C) Recognition and participation
(D) Anti capitalism/Revolutionary
(D) All of these
11. Workers are not very divergent in tempera-
4. Which of the following is not a type of trade
ment and training but at similar situated at
union
economic and social levels. They have a
(A) Craft union common interpretation of their social situ-
(B) Stable union ation and have common solution to their
(C) Company union problem of livings. So that they unite into
(D) Industrial union union
5. The First trade union was organised in (A) Industrial Democracy
(A) 1884 (B) 1890 (B) Social psychological approach
(C) 1918 (D) 1920 (C) Capitalism approach
6. Which of the following is the method of trade (D) All of these
union 12. Which theory was given by Sydney and
(A) Mutual insurances Beatrice Webb?
(B) Collective bargaining (A) Industrial Democracy
(C) Political action (B) Social psychological approach
(D) All of these (C) Capitalism approach
7. Which of the following is not including in (D) Anti capitalism/Revolutionary
the trade union activities? 13. Webb refereed common rules as obligation
(A) Economic activities on the parts of the employers to improve the
economic status of the workers by paying a
Trade Unions 405
minimum level of wages and to provide (A) Work tradition
minimum working condition in terms of (B) Sarvodaya approach
hours, sanitation, safety etc. (C) Control approach
(A) Industrial Democracy (D) All of these
(B) Anti capitalism/Revolutionary 20. Scarcity consciousness approach of trade
(C) Capitalism approach unionism was given by
(D) All of these (A) Selig Perlman (B) Robert F. Hoxie
14. Frank Tannenbaum has given_________ (C) Gandhiji (D) All of these
approach. 21. Who was first trade unionist of India?
(A) Selig Perlman
(B) Anti capitalism/Revolutionary
(B) N.M. Lokhanday
(C) Capitalism approach
(C) Gandhiji
(D) All of these
(D) All of these
15. Fundamental cause of exploitation of work-
22. Bombay hands mills association was formed
ers is the cause of machines. These machines
by
threaten the security of the individual work-
ers and they reacts in self defense, through (A) Nehruji
the union, to attempt to control the machines. (B) N.M. Lokhanday
(A) Social psychological (C) Gandhiji
(B) Anti capitalism/Revolutionary (D) All of these
(C) Capitalism approach 23. Structure of trade union is concerned with
(D) All of these (A) On the basis of purpose
16. Which theory of trade union was given by (B) On the basis of membership structure
Karl Marx? (C) Both A & B
(A) Industrial Democracy/Non Revolution- (D) All of these
ary 24. On the basis of purpose trade union types
(B) Social psychological includes
(C) Capitalism approach (A) Reformist
(D) Anti capitalism/Revolutionary (B) Revolutionary
17. The trade unions becomes necessary to bring (C) Both A & B
about revolutionary and fundamental (D) All of these
changes in the social order of the workers 25. On the basis of purpose reformist types in-
(A) Industrial Democracy/Non Revolution- cludes
ary (A) Uplift unionism
(B) Social psychological (B) Business unionism
(C) Capitalism approach (C) Both A & B
(D) Anti capitalism (D) All of these
18. Gandhiji has propounded 26. They want to maintain the usual employer
(A) Sarvodaya approach employee relationship by eliminating the
(B) Protest approach competitive system of production.
(C) Control approach (A) Reformist
(D) Work tradition (B) Revolutionary
19. Gandhiji philosophy is based upon the (C) Both A & B
sarvodaya principle of truth, trust ship and (D) All of these
non- violence.
27. All unionism problem & conflicts are solved (A) Anarchist
by collective bargaining and peaceful means (B) Political union
of demonstration. (C) Predatory
(A) Uplift Unionism (D) Guerrilla union
(B) Business unionism 34. They believe in exploitation, violence and
(C) Both A & B non cooperation. They are generally non
(D) All of these democratic. They do not believe in coopera-
28. Union put more emphasis on insurance ben- tion to their employees.
efits health, education and welfare measures (A) Anarchist
are called (B) Political union
(A) Uplift Unionism (C) Predatory
(B) Business unionism (D) Guerrilla union
(C) Both A & B 35. On the basis of the membership structure
(D) All of these trade union types are
29. ________generally seek to achieve their ob- (A) Craft union
jectives by destroying the existing capitalist (B) Industrial union
structure and replacing it with socialist or (C) General union
communist system (D) All of these
(A) Reformist
36. Which of the following is not the character-
(B) Revolutionary istic of the trade union
(C) Both A & B (A) Common Goal
(D) All of these (B) Individual action
30. AITUC was established in (C) Both A & B
(A) 1920 (B) 1954 (D) All of these
(C) 1930 (D) All of these 37. ________is organised on the basis of the in-
31. Such union destroying the present economic dustry rather than a craft all workers are
system by resorting the revolutionary mea- skilled, semi skilled and unskilled working
sures. They seek to abolish the wage system in a particular industries.
and private property (A) Craft union
(A) Anarchist (B) Industrial union
(B) Political union (C) General union
(C) Predatory (D) All of these
(D) Guerrilla union 38. A ________is one whose membership may
32. Such union redistribute the wealth by giv- covers workers employed in many indus-
ing the effective share to the workers. They tries, craft and union.
also enacts the new rule to eliminate the capi- (A) Craft union
talist structure of the state. (B) Industrial union
(A) Anarchist (C) General union
(B) Political union (D) All of these
(C) Predatory
39. Types of organisation to which trade union
(D) Guerrilla union are affiliated.
33. Such union seek there objective without stick- (A) The national federation
ing to any approach. They may adopt busi- (B) The federation of union
ness, uplift and revolutionary union for pur-
suance the goal.
Trade Unions 407
40. __________ are politically learned and the 46. ________includes improvement in wages,
leadership of such federation is provided by salary, better safety provision, improving the
the politician, trade union leaders, MLA, MP working condition and workers participa-
etc. tion in management.
(A) The national federation (A) Intra-mural activities
(B) The federation of union (B) Extra-mural activities
(C) Both A & B (C) Political activities
41. Such federation can take collective action, 47. __________performed outside the boundary
when such need arises, without losing their of the organisation for the general welfare of
individuality. the member.
(A) The national federation (A) Intra-mural activities
(B) The federation of union (B) Extra-mural activities
(C) Both A & B (C) Political activities
42. Which of the following is the function of 48. Techniques to achieve the objectives of the
trade union? organisation are
(A) Militant function (A) Collective bargaining
(B) Fraternal function (B) Grievance handling
(C) Both A & B (C) Negotiations
43. _______are performed by the trade union 49. Which of the following techniques is used
when efforts of collective bargaining fail to to achieve the objectives of the organisation?
bear results (A) Union security
(A) Militant function (B) Arbitrations
(B) Fraternal function (C) Mutual insurance
(D) All of these 50. Which is the problem of the trade union in
44. ________or positive functions of trade union India?
relate to the provision of financial support (A) Internal (B) External
to its members during the periods of tempo- (C) Both A & B (D) All of these
rary unemployment and also during strikes
51. Internal problem of the trade union are
and lockouts.
(A) Migratory character
(A) Militant function
(B) Homogenous character
(B) Fraternal function
(C) Poor economic condition
(C) Both A & B
(D) All of these
(D) All of these
52. Which of the following factors is/are inter-
45. Classification of fraternal function are con-
nal problems of the trade union?
cerned with
(A) Illiterate labour
(A) Intra-mural activities
(B) Ineffective leadership
(B) Extra-mural activities
(C) Lack of unity
(C) Political activities
(D) All of these
(D) All of these
53. External problems of the trade union are 61. A__________is that place of the employment
(A) Political pressure where an agreement between the employers
(B) Less legal support & the TU provides that all employees who
(C) Opposition by industrialist are members of the union on a specified date
or who become members after that date are
(D) All of these
obliged as a condition of employments to
54. Which of the following factors not measures maintain a good standing in the union for
the strengthen of the trade union in India the terms of agreements
(A) Education of workers (A) Membership shop
(B) Economic and social uplift (B) Union shop
(C) Effective leadership (C) Both A & B
55. Which of the following factors measures the 62. Under which an employee in the bargain-
strengthen of the trade union in India? ing unit is obliged to pay dues to the union
(A) Sufficient fund in return for the collective bargaining ser-
(B) Internal unity vice which it is rendering him, although he
(C) Free from political pressure does not join the union.
(D) All of these (A) Agency shop (B) Union shop
56. The central trade union in India is/are (C) Both A & B (D) All of these
(A) AITUC (B) INTUC 63. Under this union membership it is not com-
(C) UTUC (D) All of these pulsory before or after recruitment or both
57. Which of the following is not the central union and non-union members are em-
trade union in India? ployed
(A) NFITU (B) HMS (A) Agency shop (B) Open shop
(C) BMS (D) None of these
64. It is practice under which the employers de-
58. The central trade union in India is/are
ducts a dues from the pay of the workers
(A) TUCC (B) NLO
and hand over the deduction to the union
(C) HMKP (D) All of these
(A) Check-off (B) Union shop
59. A __________ is that business enterprise (C) Both A & B (D) All of these
which has an agreement with the union that
a workers must be the member of the union 65. Ahmadabad textile labour associations was
at the time of his employment and continue established under the leadership of
to do so in order to retain his job, such an (A) Sarabhai and banker
enterprise. (B) Gandhiji
(A) Closed shop (B) Union shop (C) Both A & B
60. A _________is that enterprise which has en- 66. Ahmadabad textile labour associations was
tered into an agreement with the union that formed in
a workers would become a members of the (A) 1920 (B) 1918
union within a specifies periods of his se- (C) 1930 (D) All of these
curing his employments in that enterprise 67. The First president of AITUC was
& that he would continue his membership (A) Sarabhai and banker
in order to retain his job.
(B) Gandhiji
(A) Closed shop (B) Union shop
(C) Lala Lajpat Rai
(D) All of these
Trade Unions 409
68. They stand for professionals who work from 75. Hind Mazdoor Panchayat (HMP) was es-
an office such as those who occupy a mana- tablished in
gerial or administrative chair. (A) 1965 (B) 1948
(A) Brown Collar union (C) 1930 (D) All of these
(B) White collar unions 76. National Front of Indian Trade union
(C) Both A & B (NFITU) was established in
(D) All of these (A) 1920 (B) 1967
69. In terms of the agreement between manage- (C) 1930 (D) All of these
ment and the union a non union member 77. Bombay hand mills association also pub-
has to pay the union a sum equivalent to a lished a journal that name is
member’s subscription in order to continue (A) Dinbandhu (B) Balbandhu
employment with the employer. This is
called an ___________.
(A) Closed shop 78. Who was the first leader of Madras labour
union?
(B) Agency Shop
(A) B.P. Wadia (B) Gandhiji
(C) Preferential Shop
(D) Union shop and
79. Madras labour union was formed in
70. _________ classified unionism on the basis
of their functions. (A) 1920 (B) 1918
(A) Gandhi (C) 1930 (D) All of these
(B) Tannenbaum’s Theory 80. Indian national trade union congress
(C) Hoxie (INTUC) has political links with
(D) All of these (A) Congress (B) BJP
(C) CPI(M) (D) All of these
71. The situation of multiple unions is said to
prevail when two or more unions in the same 81. All India trade union congress (AITUC) has
plant or industry try to assert rival claims political links with
over each other and function with overlap- (A) CPI (B) BJP
ping jurisdiction. (C) CPI(M) (D) All of these
(A) Militant function (B) Multi union 82. Centre of Indian trade union (CITU) of lead-
(C) Both A & B (D) All of these ers has political links with
72. NLO stands for (A) CPI (B) BJP
(A) National Labour Organisation (C) CPI(M) (D) All of these
(B) National Land Organisation 83. Bhartiya Mazdoor Sangh (BMS) has politi-
(C) Both A & B cal links with
(D) All of these (A) CPI
73. TUCC stands for (B) BJP
(A) Trade Unions common Centre (C) CPI( M)
(B) Trade Unions Co-ordination Centre (D) All of these
(C) Both A & B (D) All of these 84. Out of the friendly benefits, the most gener-
74. HMKP full form is ally provided by the trade union is
(A) Funeral benefit
(A) Hind Mazdoor Kisan Panchayat
(B) Hindu Mazdoor Kisan Panch (B) Sickness benefit
(C) Both A & B (C) CPI( M)
85. The agreement arrived between the repre- 93. ___________denotes the percentage change
sentative of a TU & the employers is known in the labour force of an organisation.
as (A) Labour Turnover
(A) Collective agreement (B) Lay-off
(B) Mutual agreement (C) Both A & B
(D) None of these 94. Who said “A trade union, as we understand
86. Engaging in collective bargaining, strike, the term, is a continuous association of wage
picketing boycott are TU activities related to earner for the purpose of maintaining or
(A) Social (B) Economic improving the condition of lives”.
(C) Both A & B (D) None of these (A) Webb
87. INTUC, AITUC, HMS, AND UTUC adopted (B) Argyris
the code of conduct for trade union rivalry (C) Robert Blake and Jane Moulton
in the year (D) All of these
(A) 1948 (B) 1958 95. Who said “A trade union is continuing
(C) 1968 (D) 1978 organisation of employees established for the
88. Who started the publication of English purpose of protecting or improving through
weekly called “Socialist” in 1923 collective action, the economic and social
(A) S.A. Dange (B) Gandhiji status for its member.”
(C) Berne (D) All of these (A) Webb (B) Clyde E. Dankert
89. The first of May in _________was for the (C) Jane Moulton (D) All of these
first time celebrated at Bombay as “Labour 96. Who said “A trade union means an asso-
day” ciation of workers in one or more profession
(A) 1927 (B) 1918 carried on mainly for the purpose of protect-
ing and advancing the members economic
interest with connection with their daily
90. Bombay hands mills association was work”.
formed
(A) Webb (B) G.D.H. Cole
(A) 1890 (B) 1891
(C) Robert Blake (D) All of these
97. Webb and Cunnison have used the expres-
91. _________is measure to cope with the tem- sion_________
porary inability of an employers to offer em-
(A) Organisation (B) Association
ployments to workman to keep the establish-
ment going concern (C) Wage Earner (D) All of these
(A) Labour Turnover 98. In India as late as 1921 in the Buckingham
(B) Lay-off & Carnetic mills case, the Madras labour
union led by _________was indicated as a
(C) Both A & B
criminal conspiracy and damages were
(D) None of the above awarded against the union.
92. __________denotes the absence of an em- (A) Webb (B) Clyde E. Dankert
ployee when he is scheduled to work. (C) B.P. Wadia (D) All of these
(A) Labour Turnover
99. __________ was the founder president of the
(B) Absenteeism American federation of labour.
(C) Both A & B (A) Webb (B) Samuel Gophers
(D) None of the above (C) B.P. Wadia (D) All of these
Trade Unions 411
100. Who said “The trade union have a home 107. Where the recruitment happens through the
grown philosophy based on workers, expe- compulsory intervention of trade union, the
rience and psychology”. system is called.
(A) Webb (B) Selig Perlman (A) Closed shop
(C) Jane Moulton (D) All of these (B) Union shop
101. Who said “No one should have doubt about (C) Both A & B
the unlikely hood that collective bargaining (D) All of these
can be maintained in the absence of right to 108. Trade union means any combination formed
strike and lockout”. for the purpose of regulating the relation
(A) Webb between
(B) Selig Perlman (A) Workmen and employers permanently
(C) George W. Taylor (B) Worker and workmen permanently
(D) All of these (C) Workmen and employers, workmen and
102. In the words of___________ the problem is workmen, employers and employers,
the fundamental one of the combining popu- temporary and permanently
lar control in trade union with administra- (D) Workmen and employers, workmen and
tive efficiency. workmen, employers and employers,
(A) V.L. Allen permanently
(B) Selig Perlman 109. Trade union movement in India emerged in
(C) George W. Taylor (A) 1920-1930
(D) All of these (B) 1850-1870
103. ______ has/have called the periods between (C) 1850-1870
1829 and 1842, the revolutionary period. (D) 1930-1947
(A) Webb (B) Selig perlman 110. Trade union rivalry in the country was dis-
(C) George W. Taylor cussed at the 16th session of the ILC held on
(D) All of these 19-20, _________.
104. Who established the international working- (A) 1952 (B) 1957
men association? (C) 1958 (D) 1962
(A) Selig Perlman 111. The code of discipline in industry was
(B) Karl Marx adopted by the Indian labour conference (tri-
(C) George W. Taylor partite) in
(D) All of these (A) 1952 (B) 1957
105. The Ahmadabad textile labour association (C) 1958 (D) 1962
was established in 1920 under the leader- 112. The code of discipline was ratified by the
ship of___________ . Indian labour conference to ensure disci-
(A) Ansuya Ben Sarabhai pline in the industry, identify the year of rati-
fication out of the following.
(B) Karl Marx
(C) George W. Taylor (A) 1952 (B) 1957
(C) 1958 (D) 1962
(D) All of these
113. Recognition of the trade union was made by
106. Recognition of the trade union in industry
the provision of
under the code of discipline was developed
in the year. (A) Trade union act, 1926
(A) 1952 (B) 1957 (B) Industrial dispute act, 1947
(C) 1958 (D) 1962 (C) Code of discipline
(D) Factories act 1948
114. Which is not a structure of trade union of (C) Distribution to political literature.
industrial organisation? (D) All of these
(A) Craft union 120. What are the main contents of the Indian
(B) General Union Trade Union Act
(C) Industrial Union (A) To provide registration of trade unions
(D) Consumers union (B) Provide Welfare
115. Trade unions try to foster a spirit of coop- (C) Both A & B
eration and promote friendly industrial re- (D) All of these
lations and diffuse education and culture 121. Which union is focused in making the skill
among their members. of its member valuable and not easily replace-
(A) Militant function able in organisation?
(B) Fraternal function (A) Industrial union
(C) Both A & B (B) Occupational Union
116. Which of the following is not the character- (D) All of these
istic of trade union? 122. A union meant to protect the interest and right
(A) Is an association of employers or the em- of the non manual employees is called a
ployees or of the independent workers? (A) Blue collar union
(B) Is relatively a permanent combination (B) Brown collar union
but not temporary and casual.
(C) Both A & B
(C) Is an association of workers who are en-
(D) All of these
gaged is not securing economic benefit
for their member. 123. What should be the minimum number re-
quired to registered a union
(D) Is influenced by the member of ideolo-
gies (A) 100 (B) 7
117. What are the main causes of trade union (C) 6 (D) All of these
movement? 124. Which is not a structure of Trade Union of
(A) Establishment of ILO Industrial Organisation?
(B) World War I (A) Consumers Union
(C) All India Trade union Congress (B) Craft Union
(D) All of these (C) General Union
118. By lockout we mean (D) Industrial Union
(A) Stoppage of work by employer 125. Trade Union movement in India emerged
(B) Union shop between
(C) Both A & B (A) 1920-1930 (B) 1850-1870
(D) All of these (C) 1870-1880 (D) 1930-1947
119. A registered trade union may constituted a 126. Objectives of trade union are
separated fund from the contribution (A) Improving economic status
levied separately for promotion of civil and (B) Shorter working hours
political interest of its members by the (C) Improvement in living condition
following (D) All of these
(A) Covering expenses for a person to legis- 127. Mahatma Gandhi, N.M. Joshi, Jawaharlal
lative bodies. Nehru, Subhash Chandra Bose, S.A. Dange,
(B) Holding a meeting or distribution of lit- V.V. Giri and a host of others known to all
erature for candidate in an election student of_______in India
Trade Unions 413
(A) Mutual Insurance (A) 1991 (B) 1956
(B) Trade unionism (C) 1967 (D) All of the above
(C) Political action 135. At the central level, the 16th session of the
(D) All of these Indian labour conference held at _________
128. The clauses in collective agreement provid- in May, 1958 adopted the following set of
ing either the closed shop, union shop or criteria under the code of discipline for the
maintained of membership shop or any other recognition of trade union.
variation requiring union membership shop (A) Nainital (B) Shimla
as a condition for continuing in employment (C) Both A & B (D) All of these
are known as_________. 136. The Madras Textile Union was the first
(A) Union security clauses union in the modern sense, which was
(B) Membership shop formed in ________ by B.P. Wadia.
(C) Agency shop (A) 1918 (B) 1958
(D) All of these (C) 1967 (D) All of the above
129. The first May _____was for the first time cel- 137. The textile labour association was formed
ebrated at Bombay as a labour day”—”the in ________ at the initiation of Gandhiji. It
symbol of the opening of a new era of the adopted the ideology truth and non violence
Indian labour movement as conscious part as I means to get the demand utilized.
of the international labour movement. (A) 1920 (B) 1958
(A) 1947 (B) 1927 (C) 1967
(C) 1967 (D) All of the above (D) All of the above
130. Muzaffer Ahmed published the Bengali 138. The Founder president of the American fed-
weekly called “Janawani” in the _____. eration was
(A) Delhi (B) Calcutta (A) Samuel Gompers
(C) Pune (D) All of these (B) Elton Mayo
131. In ___________witnessed the continuous (C) F.W. Taylor
growth of the trade union and their mem- (D) Chris Argyris
bership. 139. In _______ both the trade union and em-
(A) 1947 (B) 1920-1930 ployer are obliged under the labour man-
(C) 1967 (D) All of the above agement relation act, 1947.
132. Main features of the Indian trade union (A) UK (B) USA
movement during 1920 was (C) Japan (D) All of these
(A) Formation of AITUC 140. The code of discipline in industry was
(B) Expansion of number of TU adopted by the Indian labour conference (tri-
(C) Trade union act 1926 partite) in
(D) All of the above (A) 1948 (B) 1958
133. Indian resolution policy declared by India (C) 1968 (D) 1950
in the year_______. 141. Which of the following is a single use plan?
(A) 1947 (B) 1956 (A) Budget (B) Rule
(C) 1967 (D) All of the above (C) Procedure (D) Policy
134. In July _______ the government of India an- 142. S.A. Dange published the English weekly
nounced a new industrial policy based on called Socialist in the year_____.
the acceptance of the “privatisation, liberal- (A) 1947 (B) 1923
ization, and globalisation.” (C) 1967 (D) All of the above
143. Two event under the period of 1940-1947 150. According to the trade union act, who
imprint on the Indian trade union move- among the following can form the trade
ment. union
(A) The Second World War (A) Permanent Employees
(B) Reunification of trade union movement (B) Temporary Employees
(C) Both A & B (C) Contract Labour
(D) All of the above (D) All of the above
144. In Great Britain, the industrial relation act 151. Intra union rivalry means
of 1971 also recognized the claim of a trade (A) Rivalry between union
union to have exclusive right as the (B) Rivalry within the same union
(A) Sole Bargaining agent (C) Rivalry between union and manage-
(B) Bargaining agent ment
(D) All of these 152. Who among the following defined trade
145. UTUC was formed in the year union as a continuous association of wage
(A) 1949 (B) 1984 earners
(C) 1920 (D) 1947 (A) S.D. Punkar
146. Which can be said to be the first trade union (B) Dankart
in India? (C) Sydney and Beatrice Webb
(A) Amalgamated society of railway (D) V.V. Giri
(B) Kamgar Hitwardhak sabha 153. Union securities is related with
(C) Madras Labour union (A) Union Democracy
(D) Bombay mill hands association (B) Industrial Democracy
147. The basic function of the trade union is (C) Living wage
(A) To protect and promote the interest of (D) Union shop and closed shop
the worker 154. Which one of the following federation was
(B) Acquiring the control of industry by organised in 1920
workers (A) INTUC (B) AITUC
(C) Imbibing sincerity and discipline of (C) CITU (D) HMS
workers
155. Revolutionary theory of the trade union is
(D) To provide cultural and recreational proposed by
activities
(A) Webb (B) Hoxie
148. Which of the following aims to check the (C) Karl Marx (D) Gandhi
inter and intra union rivalry in India
156. A list of unfair labour practices in the part of
(A) The trade union acts
trade union and employers was inserted in
(B) The code of discipline in industry
(A) Trade union act 1926
(C) The inter union code of conduct
(B) The Factories act, 1948
(D) All of these
(C) The Industrial Disputes act, 1947
149. Which of the following is not a part of the (D) None of the above
structure of the trade union in India?
157. Who among the following was the first
(A) Craft union
union leader in India
(B) Industrial Union
(A) N.M. Lokhande (B) B.P. Wadia
(C) Company Union
(C) G.L. Nanda (D) Gandhi
(D) General Union
Trade Unions 415
158. The oldest trade union in the country (c) Socio-psycho- (iii) Sydney and
is_______. logical context Beatrice webb
(A) INTUC (B) AITUC theory
(C) CITU (D) HMS (d) Trustship Theory (iv) Karl Marx
159. BMS is affiliated to one of the following po- Codes :
litical parties (a) ( b) ( c) (d)
(A) Indian National Congress (A) (ii) (i) ( iii) (iv)
(B) Bharteeya Janta Party (B) (i) (ii) (iv) (iii)
(C) CPI (C) (iv) (iii) (i) (ii)
(D) Bahujan Samaj Party (D) (iv) (iii) (i) (ii)
160. When a Union member is given preference 164. Match the trade union leaders associated
in filling a vacancy, such an agreement is with the trade union
(A) Union Democracy (a) Madras Labour union (i) V.V. Giri
(B) Industrial Democracy (b) Ahmadabad Textile (ii) A.R.
(C) Preferential Shop. Labour Association Ramanujam
(D) Union shop and closed shop (c) All India Railway (iii) Mahatma
161. According to him Union is formed in reac- Federation Gandhi
tion to alienation and loss of community in (d) INTUC (iv) B.P. Wadia
an individualistic and unfeeling society. Codes :
(A) Gandhi Theory (a) ( b) ( c) (d)
(B) Tannenbaum’s Theory (A) (iii) (iv) (ii) (i)
(C) Webb (B) (ii) (i) (iii) (iv)
(D) All of these (C) (i) (ii) (iv) (iii)
162. Match the following (D) (iv) (iii) ( i) (ii)
(a) Check off (i) Registered trade 165. Match the year of formation associated with
system union the trade union
(b) Report (ii) Arbitration (a) Madras Labour union (i) 1890
(c) Award (iii) Union Subscription (b) Ahmadabad Textile Labour (ii) 1909
(d) Political (iv) Conciliation Association
Fund (c) Bombay mill hands (iii) 1917
Codes : association
(a) ( b) ( c) (d) (d) Kamgar Hitwardhan Sabha (iv) 1920
(A) (iii) (ii) (iv) (i) Codes :
(B) (iii) (iv) ( i) (ii) (a) ( b) ( c) (d)
(C) (iii) (iv) (ii) (i) (A) (iv) (iii) (ii) (i)
(D) (ii) (iii) ( iv) (i) (B) (iii) (iv) (i) (ii)
163. Match the trade union leaders associated (C) (ii) (i) (iii) (iv)
with the theory (D) (i) (ii) (iv) (iii)
Group A Group B 166. Match of the following
(a) Class conflict (i) Robert Hoxie Trade union federation Year of formation
theory
(a) AITUC (i) 1947
(b) Socialist pattern (ii) Mahatma
(b) CITU (ii) 1948
Theory Gandhi
(c) INTUC (iii) 1920
(d) HMS (iv) 1970
Codes : (c) Industrial Union
(a) ( b) ( c) (d) (d) Confederation
(A) (iv) (iii) ( i) (ii) (e) Federation
(B) (iii) (i) (iv) (ii) Codes :
(C) (iii) (iv) ( i) (ii) (A) a, b, c, d, e
(D) (ii) (iii) ( iv) (i) (B) b, c, a, e, d
167. Arrange the events in Indian TU in the or- (C) c, b, a, d, e
der in which they have occurred from earli- (D) d, a, b, c, e
est to the latest 169. Match the following
(a) Formation of CITU (a) Industrial employment (i) 1948
(b) Formation of UTUC Standing Orders Act
(c) Formation of AITUC (b) Industrial Dispute Act (ii) 1926
(d) Formation of INTUC (c) Factories Act (iii) 1947
Codes : (d) Trade Unions Act (iv) 1946
(A) (c) (d) (b) ( a)
Codes :
(B) (d) (b) (a) (c)
(a) (b) (c) (d)
(C) (a) (b) (c) (d)
(A) (iii) (ii) (iv) (i)
(D) (a) ( b) (d) (c)
(B) (iv) (ii) (i) (iii)
168. Arrange the following in the order of their
(C) (iv) (iii) (i) (ii)
coverage from lower to higher
(D) (ii) (i) ( iv) (iii)
(a) Regional Union
(b) Craft Union
Trade Unions 417
ANSWER KEY
1. (A) 2. (A) 3. (D) 4. (B) 5. (B) 6. (D) 7. (D) 8. (D) 9. (D) 10. (B)
11. (B) 12. (A) 13. (A) 14. (C) 15. (C) 16. (D) 17. (D) 18. (A) 19. (B) 20. (A)
21. (B) 22. (B) 23. (C) 24. (C) 25. (C) 26. (A) 27. (B) 28. (A) 29. (B) 30. (B)
31. (A) 32. (B) 33. (C) 34. (D) 35. (D) 36. (B) 37. (B) 38. (C) 39. (C) 40. (A)
41. (B) 42. (C) 43. (A) 44. (B) 45. (D) 46. (A) 47. (B) 48. (D) 49. (D) 50. (C)
51. (D) 52. (D) 53. (D) 54. (D) 55. (D) 56. (D) 57. (D) 58. (D) 59. (A) 60. (B)
61. (A) 62. (A) 63. (B) 64. (A) 65. (A) 66. (A) 67. (C) 68. (B) 69. (B) 70. (C)
71. (B) 72. (A) 73. (B) 74. (A) 75. (A) 76. (B) 77. (A) 78. (A) 79. (B) 80. (A)
81. (A) 82. (C) 83. (B) 84. (A) 85. (A) 86. (B) 87. (A) 88. (A) 89. (A) 90. (A)
91. (B) 92. (B) 93. (A) 94. (A) 95. (B) 96. (B) 97. (C) 98. (C) 99. (B) 100. (B)
101. (C) 102. (A) 103. (A) 104. (B) 105. (A) 106. (B) 107. (A) 108. (C) 109. (A) 110. (C)
111. (C) 112. (C) 113. (C) 114. (D) 115. (B) 116. (C) 117. (D) 118. (A) 119. (D) 120. (A)
121. (B) 122. (B) 123. (B) 124. (A) 125. (A) 126. (D) 127. (B) 128. (A) 129. (B) 130. (B)
131. (B) 132. (D) 133. (B) 134. (A) 135. (A) 136. (A) 137. (A) 138. (A) 139. (B) 140. (B)
141. (A) 142. (B) 143. (C) 144. (A) 145. (A) 146. (D) 147. (A) 148. (D) 149. (C) 150. (D)
151. (A) 152. (C) 153. (D) 154. (B) 155. (C) 156. (C) 157. (A) 158. (B) 159. (B) 160. (C)
161. (B) 162. (C) 163. (C) 164. (D) 165. (B) 166. (C) 167. (A) 168. (B) 169. (C)
UNIT
LABOUR LEGISLATION
MEANING OF LABOUR LEGISLATION

Labour Legislation refers to all laws of the Government which have been enacted to provide social and
economic security to the labour or workers. The evils of industrial revolution have led to the labour
legislation. Now the state has a direct interest in the industrial peace and prosperity. These acts are
aimed at reduction of production losses due to industrial disputes and to ensure timely payment of
wages and other minimum amenities of the workers.
The history of labour legislation in India is naturally interwoven with the history of British
colonialism. Considerations of British political economic were naturally paramount in shaping some
of these early laws. In the beginning it was difficult to get enough regular Indian workers to run British
establishments and hence laws for indenturing workers became necessary. This was obviously labour
legislation in order to protect the interests of British employers.
Objectives of Labour Legislation

The main objectives for various labour laws are as follows:
1. To protect the workers from profit seeking exploiters.
2. To promote cordial industrial relations between employers and employees.
3. To preserve the health safety and welfare of workers.
4. To product the interests of women and children working in the factories.
Principle of Labour Legislation

1. Social Justice. Ideal condition in which all members of a company have the same basic rights,
security, opportunities, obligations and social benefits.
Social Legislation: Laws aimed at promoting the social functioning of individuals and groups
and at protecting their rights.
2. Social Equity. Legislation based on social justice prescribes a definite standard for adoption in
future. Such standard is forced after taking into consideration the past and present
circumstances. Once this standard is fixed by legislation it cannot be changed unless the
circumstances and conditions so warrant.
3. National Economy. While framing the labour law the general economic situation of the country
has to be kept in mind so that object may not be defeated.
(418)
Labour Legislation 419
4. International Uniformity. International uniformity is another principle on which labour laws
are based. This important role played by international organisation in this connection is
praiseworthy. This organisation aims at securing minimum uniform standard in respect of all
labour matters.
Principle of Modern Labour Legislation
1. Principle of protection 2. Principle of social justice
3. Principle of regulation 4. Principle of welfare
5. Principle of social security 6. Welfare legislation
Classification of Labour Legislation In India

Labour Laws may be classified under the following heads:
I. Laws related to Industrial Relations such as:
m Trade Unions Act, 1926.
m Industrial Employment Standing Order Act, 1946.
m Industrial Disputes Act, 1947.
II. Laws related to Wages such as:
m Payment of Wages Act, 1936.
m Minimum Wages Act, 1948.
m Payment of Bonus Act, 1965.
III. Laws related to Working Hours, Conditions of Service and Employment such as:
m Factories Act, 1948.
m Plantation Labour Act, 1951.
m Mines Act, 1952.
m Working Journalists and other Newspaper Employees’ (Conditions of Service and Misc.
Provisions) Act, 1955.
m Merchant Shipping Act, 1958.
m Motor Transport Workers Act, 1961.
m Beedi & Cigar Workers (Conditions of Employment) Act, 1966.
m Contract Labour (Regulation & Abolition) Act, 1970.
m Sales Promotion Employees Act, 1976.
m Inter-State Migrant Workmen (Regulation of Employment & Conditions of Service) Act, 1979.
m Dock Workers (Safety, Health & Welfare) Act, 1986.
m Building & Other Construction Workers (Regulation of Employment & Conditions of
Service) Act, 1996.
IV. Laws related to Equality and Empowerment of Women such as:
m Maternity Benefit Act, 1961.
m Equal Remuneration Act, 1976.
V. Laws related to deprived and Disadvantaged Sections of the Society such as:
m Bonded Labour System (Abolition) Act, 1976.
m Child Labour (Prohibition & Regulation) Act, 1986.
m Children (Pledging of Labour) Act, 1933.
VI. Laws related to Social Security such as:
m Workmen’s Compensation Act, 1923.
m Employees’ State Insurance Act, 1948.
m Employees’ Provident Fund & Miscellaneous Provisions Act, 1952.
m Payment of Gratuity Act, 1972.
Need of Labour Legislation

The basic principle of industrial legislation is to ensure social justice to the workers . The object of
legislation is the equitable distribution of profits and benefits accruing from industry between
industrialists and workers and affording protection to the workers against harmful affects to their
health safety and morality. In a developing country like India, Labour legislation becomes especially
important because of the following reasons:
1. Labour organisations are relatively weak and in most of the cases, they depend merely on the
mercy of the employers. Individual worker is economically very weak and is unable to bargain
his terms with the employers. Now the prior payment of wages lay off, dismissal, retrenchments
etc., are all governed by legislation. The economic insecurity of the workers is removed to a
great extent.
2. In many organisations, workers may feel occupational insecurity. The workers may not be
given by amount in case of accidents, death, occupational Act, Employees State Insurance Act,
certain benefits have been statutorily given to workers which the employees otherwise may not
get from their employers.
3. In any factories, there important working conditions on account of which the employees health
and safety is always in danger. The factories Act contains a number of provisions relating to
health safety and welfare of workers. Special provisions have been made for the women.
4. Labour legislation is also necessary from the view point of law and order situation and national
security of the country. State plays a vital role in the continuing production. It helps in the
economic development of the country. The idea of Welfare State is embodied in the Directive
Principles of the constitution and for reason, various labour laws have been enacted to protect
the sections of the society.
5. Labour Legislation is one of the most progressive and dynamic instruments for achieving
socio-economic progress.
Types of Labour Legislation
The principle of labour legislation also gives an idea of the various types of labour legislation. However
for the sake of convince, labour legislation can be classified under the following categories :
1. Protective labour legislation
2. Regulative legislation
3. Social Security Legislation
4. Welfare Legislation
1. Protective labour legislation. Under this category, are those legislation is use primary purpose
is to protect minimum labour standards and to improve the working conditions. Laws laying
down the minimum labour standards in the areas of hour of work, safety employment of
children and woman and so on. In factories, mine, plantation, transport shops and other
establishment are included in this category. Legislation laying down the methods and manner
of the wage payment as well as minimum wages also comes under these category are, the
factories act 1948, the mines act, 1952, the plantation labour act 1951, the motor transport
worker act, 1961, shop and establishment act passed for various state.
2. Regulative legislation. Under these category falls these laws whose main objectives is to
regulate the relation between the employers and employees and to provide for methods and
manner of setting industrial disputes. Such laws also regulate the relationship between the
workers and their trade union, the right and obligation of the organisation of employers and
workers, as well as their mutual relationship. Indian example of such laws are: the trade union
act, 1926, ID Act 1947 and the industrial employment act, 1946.
3. Social Security Legislation. The third category of labour legislation covers those laws which
intends to provide to workman social security benefits during the certain contingencies of life,
though such legislation may cover others classes of citizen also their primary and original goal
has been protect the workers. In India the important laws falling under the category are: the
workman compensation act, 1923, the ESI act 1948, Maternity benefit act, 1948, the payment of
gratuity act, 1972.
4. Welfare Legislation. Legislation falling under this category aim at promoting the general welfare
of the worker and improve the living condition . Though in a sense, all labour laws can be said
to be promoting the welfare of the workers and improving their living condition and though
many of the protective labour laws. The examples are Mica mines labour welfare fund 1946,
Beedi workers welfare fund act, 1976.
Evolution of Labour Legislation in India

The History of Labour Legislation
The history of labour legislation in India is naturally interwoven with the history of British colonialism.
Considerations of British political economy were naturally paramount in shaping some of these early
laws. In the beginning it was difficult to get enough regular Indian workers to run British establishments
and hence laws for indenturing workers became necessary. This was obviously labour legislation in
order to protect the interests of British employers.
1. Then came the Factories Act. It is well known that Indian textile goods offered stiff competition
to British textiles in the export market and hence in order to make India labour costlier the
Factories Act was first introduced in 1883 because of the pressure brought on the British
parliament by the textile magnates of Manchester and Lancashire. Thus we received the first
stipulation of eight hours of work, the abolition of child labour, and the restriction of women in
night employment, and the introduction of overtime wages for work beyond eight hours. While
the impact of this measure was clearly welfares the real motivation was undoubtedly
protectionist.
To date, India has ratified 39 International Labour Organisation (ILO) conventions of which 37
are in force. Of the ILO’s eight fundamental conventions, India has ratified four - Forced Labour
1930, Abolition of Forced Labour 1957, Equal Remuneration 1951, and Discrimination
(employment and occupation) 1958.
2. The organised and the unorganised. An important distinction that is popularly made
nowadays in all discussions relating to labour legislation is between workers in the organised/
formal sector and those in the informal sector. Many who make this distinction do so with
ulterior motives, yet we must reckon with it - especially because out of the total workforce in the
country, 92 per cent work in the informal sector while only eight per cent work in the formal
sector.
At the outset it must therefore be remembered that those who were unorganised yesterday are
organised today and those who are unorganised today aspire to become the organised tomorrow.
Moreover, many rights, benefits, and practices, which are popularly recognised today as
legitimate rights of the workers, are those that have accrued as a result of the struggles carried
out by the earlier generation of workers. The attempt, prevalent in some circles to pit one section
of workers against the others, must therefore be carefully understood and deserves to be rejected
outright.
3. Trade unionism and the Trade Union Act 1926. There are almost ten major central union
organisations of workers based on different political ideologies. Almost every union is affiliated
to one of these. These central organisations have state branches, committees, and councils from
where its organisation works down to the local level.
The first central trade union organisation in India was the All India Trade Union Congress
(AITUC) in 1920 - almost three decades before India won independence. At about the same time
workers at the Buckingham and Cyanotic Mills, Madras went on strike led by B P Wadia. The
management brought a civil suit against the workers in the Madras High Court and not only
obtained an injunction order against the strike but also succeeded in obtaining damages against
the leader for ‘inducing a breach of contract’. This was followed by widespread protests that
finally yielded in the Trade Union Act 1926 giving immunity to the trade unions against
certain forms of civil and criminal action. Apart from this aspect the Trade Union Act also
facilitated registration, internal democracy, a role for outsiders and permission for raising a
political fund subject to separate accounting requirements.
The Trade Union Act facilitates unionisation both in the organised and the unorganised sectors.
It is through this law that the freedom of association that is a fundamental right under the
Constitution of India is realised.
The right to register a trade union however does not mean that the employer must recognise the
union – there is in fact no law which provides for recognition of trade unions and consequently
no legal compulsion for employers, even in the organised sector, to enter into collective
bargaining.
Yet in reality because of the strength of particular trade unions there is fairly widespread
collective bargaining, especially in the organised sector.
4. Wage determinations in the unorganised sector. Wage determination in India has been achieved
by various instruments. For the unorganised sector the most useful instrument is the Minimum
Wages Act 1948. This law governs the methods to fix minimum wages in scheduled industries
(which may vary from state to state) by using either a committee method or a notification
method. A tripartite Advisory Committee with an independent Chairman advises the
Government on the minimum wage. In practice unfortunately, the minimum wage is so low
that in many industries there is erosion of real wage despite revision of the minimum wage
occasionally. A feeble indexation system has now been introduced in a few states only.
5. Collective bargaining in the organised sector. An important factor that is not much recognised,
but which still prevails in many organised sector units is fixing and revising wages through
collective bargaining. The course of collective bargaining was influenced in 1948 by the
recommendations of the Fair Wage Committee that reported that three levels of wages exist -
minimum, fair, and living.
These three wage levels were defined and it was pointed out that all industries must pay the
minimum wage and that the capacity to pay would apply only to the fair wage, which could be
linked to productivity. In addition to this the fifteenth Indian Labour Conference, a tripartite
body, met in 1954 and defined precisely what the needs-based minimum wage was and how it
could be quantified using a balanced diet chart.
This gave a great boost to collective bargaining; many organised sector trade unions were able
to achieve reasonably satisfactory indexation and a system of paying an annual bonus. It is
now the law, that a thirteenth month of wage must be paid as a deferred wage to all those
covered by the Payment of Bonus Act. The minimum bonus payable is 8.33 per cent and the
maximum is 20 per cent of the annual wage.
6. Strikes and lockouts. Workers have the right to strike, even without notice unless it involves a
public utility service; employers have the right to lockout, subject to the same conditions as a
strike. The parties may sort out their differences either bilaterally, or through a conciliation
officer who can facilitate but not compel a settlement which is legally binding on the parties,
even when a strike or a lockout is in progress. But if these methods do not resolve a dispute, the
government may refer the dispute to compulsory adjudication and ban the strike or lockout.
7. Conciliation, arbitration, and adjudication. When parties engaging in collective bargaining
are unable to arrive at a settlement, either party or the government may commence conciliation
proceedings before a government appointed conciliation officer whose intervention may produce
a settlement, which is then registered in the labour department and becomes binding on all
parties. If conciliation fails it is open to the parties to invoke arbitration or for the appropriate
government to refer the dispute to adjudication before a labour court or a tribunal whose
decision may then be notified as an award of a binding nature on the parties. Disputes may be
settled by collective bargaining, conciliation, or compulsory adjudication.
8. Colonial dispute settlement machinery. The Industrial Disputes Act 1947 (IDA) provides for
the settlement machinery above. The framework of this legislation, which is the principle
legislation dealing with core labour issues, is of colonial origin. This law originated firstly in
the Trade Disputes Act 1929, introduced by the British, when there was a spate of strikes and
huge loss of person days and secondly through Rule 81A of the Defence of India Rules 1942,
when the British joined the war efforts and wanted to maintain wartime supplies to the allied
forces. Interestingly the interim government on the eve of formal independence retained this
framework by enacting the IDA, which still remains on the statute book.
9. Developments after independence. Even though the IDA was primarily meant for industry in
the organised sector, its present application has now extended well into the unorganised
sector, through judge-made law. Its pro-worker protection clauses and safeguards against
arbitrary job losses have evolved over a period of time both through the process of sustained
legislative amendments and through the process of judicial activism spread over more than
five decades.
The original colonial legislation underwent substantial modification in the post-colonial era
because independent India called for a clear partnership between labour and capital. The
content of this partnership was unanimously approved in a tripartite conference in December
1947 in which it was agreed that labour would be given a fair wage and fair working conditions
and in return capital would receive the fullest co-operation of labour for uninterrupted
production and higher productivity as part of the strategy for national economic development
and that all concerned would observe a truce period of three years free from strikes and lockouts.
10. Regulation of job losses. Space does not allow a detailed discussion of this transformation in
labour policy and consequent amendments to labour law, but provisions that deal with job
losses must be noted. Under the present law any industrial establishment employing more
than 100 workers must make an application to the Government seeking permission before
resorting to lay-off, retrenchment, or closure; employers resorting to any of the said forms of
creating job losses, is acting illegally and workers are entitled to receive wages for the period of
illegality. The Reserve Bank of India commissioned a study into the causes of sickness in
Indian industry and they reported cryptically, ‘Sickness in India is a profitable business’. This
chapter in the IDA, which has been identified as offering high rigidity in the area of labour
redundancy, has been targeted for change under globalisation and liberalisation.
11. Protection of service conditions. A feature of the IDA is the stipulation that existing service
conditions cannot be unilaterally altered without giving a notice of 21 days to the workers and
the union. Similarly if an industrial dispute is pending before an authority under the IDA, then
the previous service conditions in respect of that dispute cannot be altered to the disadvantage
of the workers without prior permission of the authority concerned. This has been identified as
a form of rigidity that hampers competition in the era of the World Trade Organisation.
12. Removal from service. A permanent worker can be removed from service only for proven
misconduct or for habitual absence - due to ill health, alcoholism and the like, or on attaining
retirement age. In other words the doctrine of ‘hire and fire’ is not approved within the existing
legal framework. In cases of misconduct the worker is entitled to the protection of Standing
Orders to be framed by a certifying officer of the labour department after hearing management
and labour, through the trade union. Employers must follow principles of ‘natural justice’,
which again is an area that is governed by judge-made law. An order of dismissal can be
challenged in the labour court and if it is found to be flawed, the court has the power to order
reinstatement with continuity of service, back wages, and consequential benefits. This again is
identified as an area where greater flexibility is considered desirable for being competitive.
13. Return to colonial days! Almost all pro-worker developments that accrued since independence
are now identified as areas of rigidity and in the name of flexibility there is pressure on the
government of India to repeal or amend all such laws. Interestingly, if such a proposal is fully
implemented, labour law, especially for the organised sector, will go back to the colonial
framework where state intervention was meant primarily to discipline labour, not to give it
protection.
14. Globalisations. The most distinctly visible change from globalization is the increased tendency
for off-loading or subcontracting. Generally this is done through the use of cheaper forms of
contract labour, where there is no unionization, no welfare benefits, and quite often not even
statutorily fixed minimum wages. Occasionally the tendency to bring contract labour to the
mother plant itself is seen. This is very often preceded by downsizing, and since there is statutory
regulation of job losses, the system of voluntary retirement with the ‘golden handshake’ is
widely prevalent, both in public and private sectors.
15. Regulation of contract labour. The Contract Labour (Prohibition and Regulation) Act 1970
provides a mechanism for registration of contractors (if more than twenty workers are engaged)
and for the appointment of a Tripartite Advisory Board that investigates particular forms of
contract labour, which if found to be engaged in areas requiring perennial work connected
with the production process, then the Board could recommend its abolition. A tricky legal
question has arisen as to whether the contract workers should be automatically absorbed or
not after the contract labour system is abolished. Recently a Constitutional Bench of the Supreme
Court held that there need not be such automatic absorption - in effect this ‘abolishes’ the
contract labourer and has given rise to a serious anomaly.
16. Phase between organised and unorganised. We are already witnessing a reduction in the
organised labour force and an increase in the ranks of the unorganised. The above law is a kind
of inter-phase in the process of regulating the transition from regular employment to irregular
employment. If contract labour is seen as introducing a form of flexibility, a strict enforcement
of this Act could have had a salutary effect on the transition process. Instead the enforceability
of the Act is now diluted and consequently even the minimum protection envisaged under this
law to contract labourers is in jeopardy. Dominant thinking in relation to globalization is
having its effect on the judicial process also, ignoring Directive Principles of State Policy
contained in the Constitution of India.
17. Employment injury, health, and maternity benefit. The Workman’s Compensation Act 1923
is one of the earliest pieces of labour legislation. It covers all cases of ‘accident arising out of and
in the course of employment’ and the rate of compensation to be paid in a lump sum, is
determined by a schedule proportionate to the extent of injury and the loss of earning capacity.
The younger the worker and the higher the wage, the greater is the compensation subject to a
limit. The injured person, or in case of death the dependent, can claim the compensation. This
law applies to the unorganised sectors and to those in the organised sectors who are not
covered by the Employees State Insurance Scheme, which is conceptually considered to be
superior to the Workman’s Compensation Act.
The Employees State Insurance Act provides a scheme under which the employer and the
employee must contribute a certain percentage of the monthly wage to the Insurance Corporation
that runs dispensaries and hospitals in working class localities. It facilitates both outpatient
and in-patient care and freely dispenses medicines and covers hospitalization needs and
costs. Leave certificates for health reasons are forwarded to the employer who is obliged to
honour them. Employment injury, including occupational disease is compensated according
to a schedule of rates proportionate to the extent of injury and loss of earning capacity. Payment,
unlike in the Workmen’s Compensation Act, is monthly. Despite the existence of tripartite
bodies to supervise the running of the scheme, the entire project has fallen into disrepute due to
corruption and inefficiency. Workers in need of genuine medical attention rarely approach this
facility though they use it quite liberally to obtain medical leave. There are interesting cases
where workers have gone to court seeking exemption from the scheme in order to avail of better
facilities available through collective bargaining.
The Maternity Benefit Act is applicable to notified establishments. Its coverage can therefore
extend to the unorganised sector also, though in practice it is rare. A woman employee is
entitled to 90 days of paid leave on delivery or on miscarriage. Similar benefits, including
hospitalization facilities are available under the law described in the paragraph above.
18. Retirement benefit. There are two types of retirement benefit generally available to workers.
One is under the Payment of Gratuity Act and the other is under the Provident Fund Act. In the
first case a worker who has put in not less than five years of work is entitled to a lump sum
payment equal to 15 days’ wages for every completed year of service. Every month the employer
is expected to contribute the required money into a separate fund to enable this payment on
retirement or termination of employment. In the latter scheme both the employee and the employer
make an equal contribution into a national fund. The current rate of contribution is 12 per cent
of the wage including a small percentage towards family pension. This contribution also attracts
an interest, currently 9.5 per cent per annum, and the accumulated amount is paid on retirement
to the employee along with the interest that has accrued. Unfortunately the employee is allowed
to draw many types of loan from the fund such as for house construction, marriage of children,
and education etc. As a result very little is available at the time of retirement. This is also a
benefit, which is steadily being extended to sections of the unorganised sector, especially where
the employer is clearly identifiable.
19. Women labour and the law. Women constitute a significant part of the workforce in India but
they lag behind men in terms of work participation and quality of employment. According to
Government sources, out of 407 million total workforce, 90 million are women workers, largely
employed (about 87 per cent) in the agricultural sector as labourers and cultivators. In urban
areas, the employment of women in the organised sector in March 2000 constituted 17.6 per
cent of the total organised sector.
Apart from the Maternity Benefit Act, almost all the major central labour laws are applicable to
women workers. The Equal Remuneration Act was passed in 1976, providing for the payment
of equal remuneration to men and women workers for same or similar nature of work. Under
this law, no discrimination is permissible in recruitment and service conditions except where
employment of women is prohibited or restricted by the law. The situation regarding enforcement
of the provisions of this law is regularly monitored by the Central Ministry of Labour and the
Central Advisory Committee. In respect of an occupational hazard concerning the safety of
women at workplaces, in 1997 the Supreme Court of India announced that sexual harassment
of working women amounts to violation of rights of gender equality. As a logical consequence
it also amounts to violation of the right to practice any profession, occupation, and trade. The
judgement also laid down the definition of sexual harassment, the preventive steps, the
complaint mechanism, and the need for creating awareness of the rights of women workers.
Implementation of these guidelines has already begun by employers by amending the rules
under the Industrial Employment Standing Orders Act 1946.
20. The unorganised sector. Many of the laws mentioned above apply to the unorganised sector
also. In some cases a separate notification may be necessary to extend the application of a
particular law to a new sector. It is useful to notice that some pieces of legislation are more
general in character and apply across the board to all sectors. The Trade Union Act 1926, The
Minimum Wages Act 1948, The Contract Labour (Regulation and Abolition) Act 1970, The
Workman’s Compensation Act 1923, and The Payment of Wages Act 1936 are examples of this
type. In certain cases, even the IDA 1947 would be included.
In addition to the above there are special sectoral laws applicable to particular sectors of the
unorganised. Under this category are laws like the Building and Construction Workers Act 1996, the
Bonded Labour System (Abolition) Act 1976, The Interstate Migrant Workers Act 1979, The Dock
Workers Act 1986, The Plantation Labour Act 1951, The Transport Workers Act, The Beedi and Cigar
Workers Act 1966, The Child Labour (Prohibition and Regulation) Act 1986, and The Mine Act 1952.
Broadly speaking these sectoral laws either abolish or prohibit an abominable practice like bonded
labour or they seek to regulate exploitative conditions by regulating working hours and conditions of
service.
A recent trend has been to seek the creation of a welfare fund through the collection of a levy from
which medical benefits or pension provisions are made. Workers and management may contribute
and attempt to set up tripartite boards for implementation of welfare benefits. In some states like
Kerala a large number of such boards have already been set up to take care of welfare in different
sectors of employment.
Another contemporary effort is to provide an umbrella statute to take care of employment conditions
and social welfare benefits for all unorganised sections. Common central legislation for all agricultural
workers is also on the anvil. Many powers are vested in quasi-judicial authorities, labour courts, and
magistrates’ courts. The power of review is in the High Courts and finally in the Supreme Court.
The general experience, with the occasional exception, is unbearable delay. Even where statutes
prescribe reasonable time limits, they are not adhered to. Frustration with labour-related justice is
heightened by these unlimited delays. A case of dismissal takes almost ten years for the labour court
to decide and if the parties decide to seek judicial review in the higher courts there can be unlimited
delay.
For the unorganised sector a renewed attempt to focus on the core labour standard identified by
the ILO in its Declaration on Fundamental Rights at Work would still be worthwhile, especially if we
take steps to ensure the implementation of the first of those core labour standards namely the freedom
of association and the right to collective bargaining. It is only through the organisation of potential
beneficiaries that we can hope for some benefits at least to percolate down into the hands of the needy.
Labour Legislation and Indian Constitutions

The Indian constitutions contain important provisions which have a direct bearing on the course of
social and labour legislation in the country. These are mainly incorporated the fundamental rights
and directive principle of state policy. Fundamental are justifiable. The directive principle through
not justifiable, are “fundamental in divergence of the country” and it is “the duty of the state to apply
these principle in making laws”. These principles lay down that the state should strive to promote
welfare of the people by securing and promoting as effectively as it may, a social order in which social,
economic and political, shall inform all institutions of national life.
Labour legislation is necessary from the view point of law and order situation and national
security of the country. State plays a vital role the continuing production. It helps in the economic
development of the country. The idea of Welfare State is embodied in the Directive Principles of the
constitution and for reason; various labour laws have been enacted to protect the sections of the
society. The fundamental right and directive principle of state policy are discussed below.
Fundamental Rights Part III

Part III of the Indian Constitution( A 12-35) deals with the FR granted to individuals.
Originally seven groups of rights. But now 44th Amendment ‘Right to property’ deleted.
Classification of Fundamental Rights: The citizens of India enjoy the following fundamental
rights:
1. Right to equality and liberty (Article 14 to 18). According to this right all citizens of the country
are equal in eyes of law. Everyone has the equal opportunity to get the government job. The
untouchability has been abolished. All other types of titles also have been abolished except the
educational degrees.
14: Equality before law
15: Prohibition of discrimination
16: Equality of opportunity
17: Abolishes practices of untouchability
18: Prohibits state from confirming any title
2. Right to Freedom (Article 19 to 22). According to this right every Indian citizen enjoys the
following seven fundamental freedoms:
(i) Freedom of speech and expression.
(ii) Freedom of assembly peacefully and without arms.
(iii) Freedom to form associations and unions.
(iv) Freedom of movement.
(v) Freedom to reside in any part of India.
(vi) Right to buy, keep and dispose of property.
(vii) Freedom of profession.
3. Right against Exploitation (Article 23 to 24). According to this right no one can sell or purchase
any man or woman, no one can take work from others without paying the money for his labour
and children below 14 years cannot be employed in a factory or mine or any other dangerous
work.
4. Right to Freedom of Religion (Article 25 to 28). India has been declared a secular State. The
State itself has no religion. According to this right, freedom of the religion has been granted to
every individual. Anyone can follow, practice and preach any religion he likes and has faith in
the same.
5. Cultural and Educational Right (Article 29 to 30). According to this right the people of any part
of India, whose language or culture is separate have the right to protect and develop it. Every
citizen has the right to get admission to any government aided educational institution.
6. Right to Constitutional Remedies. The right to constitutional remedies is a most important
fundamental right for the citizens of India. According to this right all the citizens have the right
to move to the Supreme Court or to any of the High Court in India. With this right the citizens
are able to protect their all the fundamental rights. While protecting the fundamental rights
these courts can issue the following writs:
The Writs:
Habeas Corpus. “To have a body”- An order calling a person who has detained another to
produce the letter before the court to let it know, on what ground he has been confirmed.
Prohibition. It is issued by SC or HC to a inferior court forbidding jurisdiction or to usurp a
jurisdiction with which it is not legally vested.
Mandamus. “We command” : Commands the person to whom it is addressed to perform some
public or quasilegal duty which he has refused to perform.
Certiorary. It is issued to a lower court after a case has been decided by it, quashing the decision or
order.
Quo-Warranto. It is a proceeding by which the court enquires into the legality of the claim which
a party asserts to a public office.
Distinction between Fundamental Rights and Directive Principles
m Fundamental Rights are justifiable while Directive Principles are not.
m If there is discrepancy between Fundamental Rights and Directive Principles then Fundamental
Rights will prevail.
m Fundamental Rights are negative and Directive Principles are positive.
m Fundamental Rights responsible for political democracy while Directive Principles are for
establishment of economical and welfare state.
The Directive Principles of State Policy Part IV

(1) Equitable distribution of wealth or the socialist pattern of society and equal pay for equal work
for both men and women.
(2) Provision of adequate means of livelihood to all its citizens, men and women.
(3) Provision of employment to all.
(4) Free and compulsory education for children.
(5) Living wage for workers.
(6) Protection of childhood and youth against exploitation and against moral and material
abandonment.
(7) Organisation of village panchayats as units of self-government (Article 40).
(8) Prohibition of the consumption except for medical purposes of intoxicating drinks and of
drugs injurious to health.
(9) Organisation of agriculture and animal husbandry on modern and scientific lines.
(10) Promotion of international peace and security and maintenance of just and honorable relations
between the nations of the world.
The directive principle of state policy are not enforceable by any court, but they are fundamental in
the governance of the country and it is the duty of the state to apply them in making laws (Art. 37)
the principle having a bearing on social and labour legislation are as follows. Policy in the
Constitution of India have been inspired by the Constitution of Ireland. It contains ideals of a Welfare
State. The Directive Principles are contained in Part-IV of the Constitution.
(i) The state shall strive to promote the welfare of the people by securing and protecting as effectively
as it may a social order in which justice – social, economic and political shall inform all the
institutions of the national life. {Art. 38(1)}
(ii) The state shall, in particular direct its policy towards securing (a) that the citizen men and
woman, equally have the right to an adequate means of livelihood (b) that there is equal pay for
equal work both men and women (c) that the health and strength of workers, men and women
and the tender age of children are not abashed and that the citizen are not forced by economic
necessity to enter avocations unsuited to their age and their strength and (d) that the children
are given opportunities and facilities to develop in healthy manner and in conditions of freedom
and dignity and that childhood and youth. Are protected against exploitations and against
moral and material and abandonment (Art. 39) .
(iii) “The State shall, within the limits of its economic capacity and development, make effective
provision for securing the right to work, to education and to public assistance in cases of
unemployment, old age, sickness and disablement and in other cases of undeserved want.”
The custodian of Fundamental Rights is the Supreme Court of India. (Article 41 in Part IV)
(iv) The state shall make provision for securing just humane conditions of work and for maternity
reliefs. (Art. 42)
(v) The state shall Endeavour to secure by suitable legislation or economic organisation or in any
other ways to all workers –agricultural, industrial otherwise., work, a living wage, conditions,
of work ensuring a decent standard of life and full enjoyment of leisure and social and cultural
opportunities. (Art. 43)
(vi) The state shall take step, by suitable legislations or in any other ways, to secure the participation
of workers in the management of undertaking, establishment or other organisation engaged in
any industry. {Art. 43 (A)}
The above principle have a bearing on both labour and social legislation, but there are some other
which are related more to social issues. These are as follows :
(i) The state shall Endeavour to provide, within a periods of ten years from the commencement of
this constitution, for free and compulsory education for all children until they complete the age
of fourteen years. (Art. 46)
(ii) The state shall promote with special care the educational and economic interest of the weaker
sections of the people, and, in particular, of the Scheduled castes and scheduled Tribes and
shall protect them from social injustice and all forms of exploitations. (Art. 46)
(iii) The state shall regards the raising of the level of nutrition and the standard of living of its
people and the improvement of public health as among its primary duties and, in particular,
the state shall Endeavour to bring about prohibition of the consumption except for medicinal
purposes of intoxicating drinks and drugs which are injurious to health. (Art. 47)
The Constitution which envisages parliamentary form of government is federal in structure
with unitary features. President of India is constitutional head of executive of the Union. Article 74 (1)
of the Constitution provides that there shall be a Council of Ministers with the Prime Minister as head
to aid and advise president who shall in exercise of his functions, act in accordance with such advice.
Real executive power thus vests in Council of Ministers with Prime Minister as head. Council of
Ministers is collectively responsible to the House of the People (Lok Sabha). Similarly, in states,
Governor is head of executive, but it is the Council of Ministers with Chief Minister as head in whom
real executive power vests. Council of Ministers of a state is collectively responsible to Legislative
Assembly.
Amended Preamble
We, the people of India, having solemnly resolved to constitute India into a Sovereign Socialist Secular
Democratic Republic and to secure to all its citizens: JUSTICE, social, economic and political; LIBERTY
of thought, expression, belief, faith and worship; EQUALITY of status and of opportunity; and to
promote among them all FRATERNITY assuring the dignity of the individual and unity and integration
of the Nation; IN OUR CONSTITUENT ASSEMBLY this twenty-sixth day of November, 1949, do
HEREBY ADOPT, ENACT AND GIVE TO OURSELVES THIS CONSTITUTION. Added by the 42nd
Constitutional Amendment.
THE FACTORIES ACT, 1948

Objective & Applicability
The Factories Act, 1948 has been enacted to consolidate and amend the law regulating the workers
working in the factories. It extends to whole of India and applies to every factory wherein 20 or more
workers are ordinary employed. Since the aim and object of the Act is to safeguard the interest of
workers and protect them from exploitation, the Act prescribes certain standards with regard to safety,
welfare and working hours of workers, apart from other provisions.
Factory means any premises including the precincts thereof where ten or more persons are working
in any manufacturing process being carried on with aid of power and where twenty or more workers
are working without the aid of power.
Employee Health
m Every factory should be kept dean and free from effluvia arising from any drain, privy or other
nuisance. {Section 11}
m Effective arrangements should be made in every factory for the treatment and effluents due to
the manufacturing process carried on therein, so as to render them innocuous, and for their
disposal. {Section 12}
m Effective and suitable provisions should be made in every factory for securing and maintaining
in every workroom; adequate ventilation by the circulation of fresh air; and such a temperatures
will secure to workers therein reasonable conditions of comfort and prevent injury to health.
{Section 13}
m Effective measures should be taken to prevent inhalation of dust to prevent inhalation of dust
and fume that may produce in the course of manufacturing process. {Section 14}
m In any factory where the humidity of air is artificially increased, the State Government may
make rules prescribing standards of humidification; regulating the methods used for artificially
increasing humidity of the air; and directing prescribed test for determining the humidity of the
air to be correctly carried out and recorded; and prescribing methods to be adopted for securing
adequate ventilation and cooling of the air in the workrooms. {Section 1S}
m No room in any factory should lie overcrowded to an extent injurious to the health of the
workers employed therein. {Section 16}
m In every part of a factory where workers are working or passing, there should be provided and
maintained sufficient and suitable lighting, natural or artificial, or both. {Section 17}
m In every factory effective arrangements should be made to provide and maintain at suitable
points conveniently’ situated for all workers employed therein a sufficient supply of wholesome
drinking water. {Section 18}
m In every factory sufficient latrine and urinal accommodation of prescribed types should be
provided conveniently situated and accessible to workers, separately for male and female
workers, at all times while they are at the factory. {Section 19}
m In every factory there should be provided a sufficient number of spittoons in convenient places
and they shall be maintained in a clean and hygienic condition. {Section 20}
Employee Safety
m The machinery in every factory should be properly fenced. {Section 21}
m Only the trained adult male worker, wearing tight fitting clothing which should be supplied by
the Occupier, should be allowed to work near the machinery in motion. {Section 22}
m No young person shall be employed on dangerous machinery, unless he is fully instructed as
to the danger arising in connection with the machine and the precautions to be observed and
he has received sufficient training in work at the machine. {Section 23}
m Suitable arrangements should be made to provide striking gear and devices for cutting off
power in case of emergencies. {Section 24}
m Sufficient precautions should be taken with regard to self-acting machines to avoid accidents.
{Section 25}
m To prevent danger, all machinery driven by power should be encased and effectively guarded.
{Section 26}
m Woman worker and children should not be employed in any part of the factory for pressing
cotton in which a cotton-opener is at work. {Section 27}
m Hoists and Lifts in a factory should be periodically inspected by the Competent Person. {Section
28}
m Lifting Machines, Chains, Ropes and Lifting Tackles in a factory should be periodically inspected
by the Competent Person. {Section 29}
m Where process of grinding is carried on, a notice indicating the maximum safe working
peripheral speed of every grind-stone or abrasive wheel etc., should be fixed to the revolving
machinery.{Section 30}
m Where any plant or machinery or any part thereof is operated at a pressure above atmospheric
pressure, effective measures should be taken to ensure that the safe working pressure of such
plant of machinery or part is not exceeded.{Section 31}
m Floors, stairs and means of access should be soundly constructed and properly maintained.
{Section 32}
m Pits, sumps opening in floor etc., should be either securely covered or fenced. {Section 33}
m No workman shall be employed in any factory to lift, carry or move any load so heavy as to be
likely to cause him injury. {Section 34}
m Necessary protective equipment should be provided to protect the eyes of the workman, where
the working involves risk of injury to the eyes. {Section 35}
m Suitable precautionary arrangements should be taken against dangerous fumes, gases etc.
{Section 36}
m Every practicable measures should be taken to prevent any explosion where the manufacturing
process produces dust, gas, fume or vapour etc. {Section 37}
m Every practicable measures should be taken to prevent the outbreak of fire and its spread, both
internally and externally. {Section 38}
m The Inspector of Factories can ask the Occupier or the Manager of the Factory to furnish drawings,
specification etc., of any building, machinery or a plant, in case he feels that condition of such
building, machinery or the plant may likely to cause danger to human life. {Section 39}
m The Inspector of Factories can suggest suitable measures of steps to take by the Occupier or
Manager for implementation, when he feels the condition of any building, machinery or a plant
may likely to cause danger to human life. {Section 40}
m Wherein 1000 or more workmen are employed in a factory, the Occupier should appoint a
Safety Officer to look after the safety aspects of the factory. {Section 40-B}
Employee Welfare
m Adequate and suitable ‘washing facilities’ should be provided in every factory. {Section 42}
m Provision should be made to provide suitable places for keeping clothing not worn during
working hours and for the drying of wet clothing.{Section 43}
m In every factory, suitable arrangements for sitting should be provided and maintained for all
workers obliged to work in a standing position, in order that they may take advantage of any
opportunities for rest which may occur in the course of their work.{Section 44}
m First-Aid Boxes with the prescribed contents should be provided and maintained so as to be
readily accessible during all working hours at the rate of at least one Box for every 150 workmen.
{Section 45}
m In every factory wherein more than 500 workers are employed there should be provided and
maintained an Ambulance containing the prescribed equipment and in the charge of such
medical and nursing staff. {Section 45(4)}
m The Occupier should provide a canteen for the use of workers in every factory, where the
number of workmen employed is more than 250. {Section 46}
m In every factory wherein more than 150 workers are employed adequate and suitable shelters
or rest rooms and a suitable lunch room, with provision for drinking water, where workers can
eat meals brought by them, should be provided and maintained for the use of the workers.
{Section 47}
m In every factory wherein more than 30 women workers are ordinarily employed there should be
provided and maintained a suitable room for the use of children under the age of six years of
such women. {Section 48}
The owner of the mill did not provide medical help. Deterioration of their health without
medical care has forced them along with other 19 employees at the rice mill to revolt against the
mill owner. Based on a plea by one of the workers who escaped from the mill a few day’s ago,
Kancheepuram collector sent a team of revenue officials and doctors to inspect the mill on
Thursday. The team rescued 21 people including 11 children.
m In every factory wherein more than 500 or more workers are employed, the Occupier should
employ in the factory such number of Welfare Officers as may be prescribed. {Section 49}
Working Hours of Adult Workers

m Ordinarily, a worker should not be allowed to work in a factory for more than 48 hours in any
week. {Section 51}
m The workman should have one holiday for a whole day in a week. Where he was asked to work
on his scheduled weekly holiday, he should be given compensatory holiday within three days
of his scheduled weekly holiday. {Section 52}
m After obtaining approval from the Inspector of Factories, the workman shall be allowed to avail
the compensatory holidays unavailed by him, within that month during which the
compensatory holidays are due or within two months immediately following that month.
{Section 53}
m Subject to the provisions of Section 51 no worker should be allowed to work more than nine
hours in a day. {Section 54}
m The timings of work should be fixed in such a way that no worker should be required to work
continuously for more than five hours; and he should be allowed to avail an interval for rest of
at least half-an hour during his work in a day. {Section 55}
m The period of work of a workman should be so arranged that inclusive of his interval for rest
under Section 55 should not spread over more than ten and a half hours in any day. {Section
56}.
m Worker works in a factory for more than nine hours in any day or for more than forty-eight
hours in any week, he shall, in respect of overtime work, be entitled to wages at the rate of twice
his ordinary rate of wages. {Section 59}
Further Restrictions on Employment of Women [Section 66]

Women is not allowed to work during the night hours from between 10 P.M. and 5 A.M. Factories act
1948, shall allow women to work in between the hours of 6 A.M. and 7 P.M. only
General Duties of the Occupier
1. Every Occupier should ensure, so far is reasonably practicable the health, safety and welfare of
all workers while they are at work in the factory.
2. Without prejudice to the generality of the provisions of sub-section (1), the matters to which
such duty extends, include :
m the provisions and maintenance of plant and systems of work in the factory that are safe
and without risks to health;
m the arrangements in the factory for ensuring safety and absence of risks to health in
connection with the use, handling, storage and transport of articles and substance;
m the provision of such information, instruction, training and supervision as are necessary
to ensure, the health and safety of all workers at work;
m the maintenance of all places of work in the factory in a condition that is safe and without
risks to health and the provision and maintenance of such means of access to, and egress
from, such places as are safe and without such risks;
m the provision, maintenance or monitoring of such working environment in the factory for
the workers that is safe, without risks to health and adequates, regards, facilities and
arrangements for their welfare at work.
m Except in such cases as may be prescribed, every Occupier should prepare, and, so often as
may be appropriate, revise, a written statement of his general policy with respect to the
health and safety of the workers at work and the organisation and arrangements for
the time being in force for carrying out that policy, and to bring the statement and any
revision thereof to the notice of all the workers in such manner as may be prescribed.
{Section 7-A}
EMPLOYEE STATE INSURANCE ACT, 1948

Objective of the Act
The Employees Slate Insurance Act (ESI Act) was enacted with the objective of introducing a scheme
of health insurance for industrial workers. The scheme envisaged by it is one of compulsory State
Insurance providing for certain benefits in the event of sickness, maternity and employment injury to
workmen employed in or in connection with the work in factories other than seasonal factories. The
ESI Act, which has replaced the Workmen’s Compensation.
Definitions. [Section 2]
(3) “confinement” means labour resulting in the issue of a living child or labour after 26 weeks of
pregnancy resulting in the issue of a child whether alive or dead;
(4) “contribution” means the sum of money payable to the Corporation by the principal employer
in respect of an employee and includes any amount payable by or on behalf of the employee in
accordance with the provisions of this Act;
(6) “Corporation” means the Employees’ State Insurance Corporation set up under this Act;
(6A) “dependant” means any of the following relatives of a deceased insured person, namely,-
(i) a widow, a legitimate or adopted son who has not attained the age of 25 years, an unmarried
legitimate or adopted daughter. (2010 amendment) (i.a.) a widowed mother;
(ii) if wholly dependent on the earnings of the insured person at the time of his death, a
legitimate or adopted son or daughter who has attained the age of 25 years and is infirm;
(2010 amendment)
(iii) if wholly or in part dependent on the earnings of the insured person at the time of his death:
(a) a parent other than a widowed mother,
(b) a minor illegitimate son, an unmarried illegitimate daughter or a daughter legitimate or
adopted or illegitimate if married and a minor or if widowed and a minor,
(c) a minor brother or an unmarried sister or a widowed sister if a minor,
(d) a widowed daughter-in-law,
(e) a minor child of a pre-deceased son,
(f) a minor child of a pre-deceased daughter where no parent of the child is alive, or
(g) a paternal grandparent if no parent of the insured person is alive,
(8) “employment injury” means a personal injury to an employee caused by accident or an
occupational disease arising out of and in the course of his employment, being an insurable
employment, whether the accident occurs or the occupational disease is contracted within or
outside the territorial limits of India;
(11) “family” means all or any of the following relatives of an insured person, namely,
(i) a spouse;
(ii) a minor legitimate or adopted child dependent upon the insured person;
(iii) a child who is wholly dependent on the earnings of the insured person and who is
(a) receiving education, till he or she attains the age of twenty-one years,
(b) an unmarried daughter;
(iv) a child who is infirm by reason of any physical or mental abnormality or injury and is
wholly dependent on the earnings of the insured person, so long as the infirmity continues;
(v) Dependant parents, whose income from all sources does not exceed such income as may be
prescribed by the Central Government;
(vi) in case the insured person is unmarried and his or her parents are not alive, a minor
brother or sister wholly dependent upon the earnings of the insured person. (2010
amendment)
(12) ”factory” means any premises including the precincts thereof whereon 10 or more persons are
employed or were employed on any day of the preceding 12 months, and in any part of which
a manufacturing process is being carried on or is ordinarily so carried on, but does not include
a mine subject to the operation of the Mines Act, 1952 or a railway running shed. (2010
amendment)
(14A) “managing agent” means any person appointed or acting as the representative of another
person for the purpose of carrying on such other person’s trade or business, but does not
include an individual manager subordinate to an employer;
(14B) “mis-carriage” means expulsion of the contents of a pregnant uterus at any period prior to or
during the 26 weeks of pregnancy but does not include any mis-carriage,
(15A) “permanent partial disablement” means such disablement of a permanent nature, as reduces
the earning capacity of an employee in every employment which he was capable of undertaking
at the time of the accident resulting in the disablement:
(22) “wages” means all remuneration paid or payable, in cash to an employee, if the terms of the
contract of employment, express or implied, were fulfilled and includes any payment to an
employee in respect of any period of authorized leave, lock-out, strike which is not illegal or
lay-off and other additional remuneration, if any, paid at intervals not exceeding two months,
but does not include:
(a) any contribution paid by the employer to any pension fund or provident fund, or under
this Act;
(b) any travelling allowance or the value of any travelling concession;
(c) any sum paid to the person employed to defray special expenses entailed on him by the
nature of his employment; or
(d) any gratuity payable on discharge.
Corporation, Standing Committee and Medical Benefit Council

Establishment of Employees’ State Insurance Corporation. [Section 3]
Central government establishes the Corporation to be known as the Employees’ State Insurance
Corporation. This corporation will be having following characteristics:
m Separate corporate body.
m Having perpetual succession. (no death)
m Have a common seal.
m Employees’ State Insurance Corporation can sue. (file a suit in court on other)
m Other can sue Employees’ State Insurance Corporation.
The Corporation Shall Consist of the Following Members. [Section 4]

(a) Chairman, Vice-Chairman to be appointed by the Central Government;
(b) Not more than 5 persons to be appointed by the Central Government;
(c) One person each representing each of the States in which this Act is in force to be appointed by
the State Government concerned;
(d) One person to be appointed by the Central Government to represent the 3 Union Territories;
(e) 10 persons representing employers to be appointed by the Central Government in consultation
with such organisations of employers.
(f) 10 persons representing employees to be appointed by the Central Government in consultation
with such organisations of employees.
(g) 2 persons representing the medical profession to be appointed by the Central Government in
consultation with such organisation of medical practitioners.
(h) 3 members of Parliament of whom two shall be members of the House of the People (Lok Sabha)
and one shall be a member of the Council of States (Rajya Sabha) elected respectively by the
members of the House of the People and the members of the Council of States; and
(i) The Director-General of the Corporation ex-officio.
Term of Office of Members of the Corporation [Section 5]
Members referred to in clauses (f), (g), (h) shall be four years, commencing from the date on which their
appointment or election. The members of the Corporation referred to in clauses (a),(b),(c) and (e) of
Sectioning 4 shall hold office during the pleasure of the government appointing them.
Constitution of Standing Committee [Section 8]
Standing Committee of the Corporation shall be constituted from among its members, consisting of :
(a) A Chairman, appointed by the Central Government;
(b) three members of the Corporation appointed by the Central Government;
three members of the Corporation representing such three State Governments thereon as the
Central Government may, by notification Gazette, specify from time to time;
(c) eight members elected by the Corporation as follows-
(i) 3 members from among the members of the Corporation representing employers;
(ii) 3 members from among the members of the Corporation representing employees;
(iii) 1 member from among the members of the Corporation representing the medical profession;
and
(iv) 1 member from among the members of the Corporation elected by Parliament;
(d) the Director General of the Corporation, ex officio.
Term of Office of Members of Standing Committee [Section 9]
m a member of the Standing Committee shall cease to hold office when he ceases to be a member
of the Corporation.
m the term of office of a member of the Standing Committee, other than a member referred to in
clause (a) or clause (b) or clause (b) of Section 8, shall be two years from the date on which his
election.
m A member of the Standing Committee referred to in clause (a) or clause (b) or clause (b) of
Section 8 shall hold office during the pleasure of the Central Government.
Medical Benefit Council [Section 10] (2010 Amendment)
(a) the Director General, the Employees’ State Insurance Corporation, ex officio as Chairman;
(b) The Director General, Health Services, ex officio as Co-chairman;”.
(c) one member each representing each of the States
(d) 3 members representing employers to be appointed by the Central Government in consultation
with such organisations of employers.
(e) 3 members representing employees to be appointed by the Central Government in consultation
with such organisations of employees.
(f) 3 members, of whom not less than one shall be a woman, representing the medical profession,
to be appointed by the Central Government.
Duties of Medical Benefit Council [Section 22]
m advise the Corporation and the Standing Committee on matters relating to the administration
of medical benefit, the certification for purposes of the grant of benefits and other connected
matter.
m have such powers and duties of investigation as may be prescribed in relation to complaints
against medical practitioners in connection with medical treatment and attendance; and
m perform such other duties in connection with medical treatment and attendance.
Cessation of Membership [Section 12]
m Members of Parliament of whom 2 shall be members of the House of the People (Lok Sabha) and
one shall be a member of the Council of States (Rajya Sabha) shall cease to be a member of the
Corporation when he ceases to be a Member of Parliament.
m Other members Membership of Employees’ State Insurance Corporation, Standing Committee
or the Medical Benefit Council will be ended when that person ends representing such employers,
employees, or the medical profession.
Disqualification [Section 13]
A person shall be disqualified for being chosen as or for being a member of the Corporation, the
Standing Committee or the Medical Benefit Council-
m if he is declared to be of unsound mind by a competent court; or
m if he is an undischarged insolvent; or
m If he a shareholder or a partner of company.
m If he has been convicted of an offence involving moral turpitude.
Fees and Allowances. [Section 15]

Members of the Corporation, the Standing Committee and the Medical Benefit Council shall receive
such fees and allowances as may from time to time be prescribed by the Central Government.
Principal Officers. [Section 16]
The Central Government may, in consultation with the Corporation, appoint a director general and a
financial commissioner.
m The director general shall be the chief executive officer of the Corporation.
m The director general and the financial commissioner shall be whole-time officers of the
Corporation and shall not undertake any work unconnected with their office without the
sanction of the Central Government and of the Corporation.
m The director general or the financial commissioner shall hold office for such period, not exceeding
five years, as may be specified in the order appointing him. An outgoing director general or
financial commissioner shall be eligible for re-appointment if he is otherwise qualified.
m The director general or the financial commissioner shall receive such salary and allowances as
may be prescribed by the Central Government.
Staff. [Section 17]
The Corporation may employ such other permanent or temporary staff of officers and servants as may
be necessary for monthly salary basis.
Employees’ State Insurance Fund. [Section 26]
m All contributions paid under this Act and all other moneys received on behalf of the Corporation
shall be paid into a fund called the Employees’ State Insurance Fund.
m The Corporation may accept grants, donations and gifts from the Central or any State
Government, local authority, or any individual or body whether incorporated or not, for all or
any of the purposes of this Act.
·m All money received will be paid in to reserve bank of India or government approved bank
credited to the account of the Employees’ State Insurance Fund.
m Account shall be operated on by such officers as may be authorised by the Standing Committee
with the approval of the Corporation.
The Employees’ State Insurance Fund Shall be Expended only for the Following Purposes.
[Section 28]
m Payment of benefits and provision of medical treatment.
m Payment to insured persons.
m Payment of medical benefits to insured person families.
m Payment of fees and allowances to members of the Corporation, the Standing Committee and
the Medical Benefit Council, the regional boards, local committees and regional and local
Medical Benefit Councils.
m Payment of salaries, leave and joining time allowances, travelling and compensatory allowances,
gratuities and compassionate allowances, pensions, contributions to provident or other benefit
fund of officers and servants of the Corporation.
m Meeting the expenditure in respect of offices and other services set.
m Establishment and maintenance of hospitals, dispensaries and other institutions.
m Payment of contributions to any State Government, local authority or any private body or
individual, towards the cost of medical treatment.
m Payment of expenses of auditing the accounts of the Corporation and of the valuation of its
assets and liabilities.
m Payment of expenses of the Employees’ State Insurance Courts set up under this Act.
m Payment of sums under any decree, order or award of any Court or Tribunal against the
Corporation.
m Payment of the cost and other charges of instituting or defending any civil or criminal
proceedings arising out of any action taken under this Act;
m Payment of expenditure, within the limits prescribed, on measures for the improvement of the
health and welfare of insured persons and for the rehabilitation and re-employment of insured
persons who have been disabled or injured.
Holding of Property. [Section 29]
m Employees’ State Insurance Corporation can hold both movable property and immovable
property.
m It can sell or transfer the both movable property and immovable property for the purposes for
which the Corporation is established.
m It can raise loans and take measures for discharging such loans.
m It can provide benefits for its staff. [Section 30] all the above details or properties, income
derived and expenditure incurred should be maintained in the books of the corporation.
Accounts. [Section 33]
The Corporation should maintain correct accounts of its income and expenditure in such form and in
such manner as may be prescribed by the Central Government.
Audit. [Section 34]
The accounts of the Corporation should be audited annually by the Comptroller and Auditor-General
of India and any expenditure incurred by him in connection with such audit shall be payable by the
Corporation to the Comptroller and Auditor-General of India.
m He has the right to demand the production of books, account, connected vouchers and other
documents and papers and to inspect any of the offices of the Corporation.
m Audit report thereon should be forwarded to the Corporation which shall forward the same to
the Central Government along with its comments on the report of the Comptroller and Auditor
General.
Annual Report. [Section 35]
The Corporation shall submit to the Central Government an annual report of its work and activities.
Valuation of Assets and Liabilities. [Section 37]
The corporation should make valuation of its assets and liabilities for every 3 years of period. (2010
amendment).
Contributions
All Employees to be Insured. [Section 38]
Factory or establishment having more than 10 employees should be insured under the Employee State
Insurance Act
Contribution. [Section 39]
m Employer and employer liable for payment of the contribution to the Employee State Insurance
Corporation.
m The rate of contribution paid by employer and employee will be decided by the central
government.
m Currently, the employee’s contribution rate (w.e.f. 1.1.97) is 1.75% of the wages and that of
employer’s is 4.75% of the wages paid/payable in respect of the employees in every wage
period.
m If wage is received every month by employee, the Contribution to the ESI Corporation should be
made by employer and employee every month without fail.
m @ 12% of interest per year should be paid if employer delays in payment of the contribution to
ESI corporation
Principal Employer to Pay Contributions in The First Instance. [Section 40]
m Employer should pay the contribution to ESI Corporation of behalf of his employee.
m Employer may deduct employee contribution from employee wage for payment of contribution
to ESI Corporation.
m Employer may recover the employee contribution paid from the wage of the employee which
should not exceed the amount equivalent to employer contribution.
m Employer will become responsible for the payment to the ESI contribution after deduction of the
employee contribution from the employee wage.
m Employer should bear the expenses occurred in payment of contributions to the Corporation.
General Provisions as to Payment of Contributions. [Section 42]

m No employee’s contribution shall be payable by or on behalf of an employee whose average
daily wages during a wage period are below such wages as may be prescribed by the Central
Government.
m The average daily wages of an employee shall be calculated in such manner as may be prescribed
by the Central Government.
For Andhra Pradesh Employees in receipt of a daily average wage up to Rs.70/- are exempted
from payment of contribution.
Method of Payment of Contribution. [Section 43]
The ESI Corporation can make following rules and regulation in payment and collection of contributions
payable under this Act.
m The manner of payment of contribution.
m The time of payment of contribution.
m Fixation of stamps for payment of contribution.
m Benefits distributed in the case of the insured persons by the corporation.
m Maintenance of books and cards of contribution of insured person by ESI Corporation.
m The issue, sale, custody, production, inspection and delivery of books or cards and the
replacement of books or cards which have been lost, destroyed or defaced.
Employers to Furnish Returns and Maintain Registers in Certain Cases. [Section 44]
Every principal and immediate employer should submit to the Corporation or to such officer of the
Corporation as it may direct such returns in such form and containing such particulars relating to
persons employed by him.
Every principal and immediate employer shall maintain such registers or records in respect of his
factory or establishment.
Social Security Officers, Their Functions and Duties. [Section 45] (2010 Amendment)
The Corporation may appoint such person as Social Security Officers, as it thinks fit, for the purposes
of this Act. The following are his functions and duties.
m Enquiring into the correctness of any of the particulars stated in any return referred to in
Section 44.
m Social Security Officers can demand any principal or immediate employer to furnish to him
such information as he may consider necessary for the purposes of this Act.
m Social Security Officers can at any reasonable time enter any office, establishment, factory or
other premises for inspection of examine such accounts, books and other documents relating to
the employment of persons and payment of wages or to furnish to him such information as he
may consider necessary.
m He can examine the employer, his agent or servant or any person found in such factory,
establishment, and office.
m He can make copies of, or take extracts from, any register, account book or other document
maintained in such factory, establishment, office or other premises.
m He can do re-inspection whether the records and returns submitted under Section 44 are correct
or not.
[Section 45A] (2010 amendment)
If no records or particular of employed persons are not maintain as required under this act by his
employer, social Security officer by order, determine the amount of contributions payable in respect of
the employees of that factory or establishment. No order shall be passed by the Corporation in respect
of the period beyond 5 years from the date on which the contribution shall become payable.
Benefits
The following benefits will be paid to insured persons or to their dependents [Section 46] :
m Periodical payments to such dependents of an insured person who dies as a result of an
employment injury
m Periodical payments to an insured woman in case of confinement or miscarriage or sickness
arising out of pregnancy, confinement, premature birth of child or miscarriage, such woman
being certified to be eligible for such payments.
m Periodical payments to any insured person in case of his sickness certified by a duly appointed
medical practitioner.
m Medical benefits
m Periodical payments to an insured person suffering from disablement as a result of an
employment injury
Funeral Benefit. [Section 46]
As prescribed by the central government, an amount of Rs. 5000/- is payable to the dependents or to
the person who performs last rites from day one of entering insurable employment.
Sickness Benefit. [Section 49]
As prescribed by the central government, Sickness Benefit represents periodical cash payments made
to an IP during the period of certified sickness occurring in a benefit period when IP requires medical
treatment and attendance with abstention from work on medical grounds. Sickness benefit is roughly
60% of the average daily wages and is payable for 91 days during 2 consecutive benefit periods.
Qualifying Conditions
m To become eligible to Sickness Benefit, an Insured Person should have paid contribution for not
less than 78 days during the corresponding contribution period.
m A person who has entered into insurable employment for the first time has to wait for nearly 9
months before becoming eligible to sickness benefit, because his corresponding benefit period
starts only after that interval.
Extended Sickness Benefit (ESB)
IPs suffering from long term diseases was experiencing great hardship on expiry of 91 days Sickness
benefit. Often they, though not fit for duty, pressed for a Final certificate. Hence, a provision for paying
Sickness Benefit for an extended period (Extended Sickness Benefit) of up to 2 years in a ESB period of
3 years. An Insured Person suffering from certain long term diseases is entitled to ESB, only after
exhausting Sickness Benefit to which he may be eligible. A common list of these long term diseases for
which ESB is payable, is reviewed by the Corporation from time to time. The list was last reviewed on
5.12.99 and revised provisions of ESB became effective from 1.1.2000 and at present this list includes
34 diseases which are grouped in 11 groups as per International.
To be entitled to the Extended Sickness Benefit an Insured Persons should have been in continuous
employment for 2 years or more at the beginning of a spell of sickness in which the disease is diagnosed
and should also satisfy other contributory conditions.
According to Section 69, employer shall be liable for payment of excess sickness benefit, if the
sickness to the insured person/ employee is caused by the negligence and improper maintenance &
no cleanliness of factory or establishment.
Maternity Benefit (Sec. 50)
As prescribed by the central government,
Maternity Benefit is payable to an Insured Woman in the following cases subject to contributory
conditions:
m Confinement-payable for a period of 12 weeks (84 days)
m Miscarriage or Medical Termination of Pregnancy (MTP)-payable for 6 weeks (42 days) from
the date following miscarriage.
m Sickness arising out of Pregnancy, Confinement, Premature birth-payable for a period not
exceeding one month.
m In the event of the death of the Insured Woman during confinement leaving behind a child,
Maternity Benefit is payable to her nominee.
m Maternity benefit rate is double the Standard Benefit Rate, or roughly equal to the average daily
wage.
Disablement Benefit (Sec. 51)
As prescribed by the central government
m Temporary disablement benefit (TDB)
Eligibility for TDB:
m The benefit is not subject to any contributory conditions. An Insured Person is eligible from the
day he joins the insurable employment.
m TDB Rate is 40% over and above the normal sickness benefit rate. This works out to nearly 85%
of the average daily wages.
Duration of TDB. There is no prescribed limit for the duration of TDB. This is payable as long as
temporary disablement lasts and significant improvement by treatment is possible. If a Temporary
Disablement spell lasts for less than 3 days (excluding day of accident), IP will be paid sickness
benefit, if otherwise eligible.
Permanent Disablement Benefits (PDB)

PDB is payable to an Insured Person who suffers permanent residual disablement as a result of EI
(including Occupational Diseases) and results in loss of earning capacity. The PDB rate is calculated
as percentage of loss of earning capacity as assessed by the Medical Board.
Employer will be liable for the accidents caused to his employer in the following circumstance:
m Accident caused to an employee even if he obeyed the safety instruction of his employer. [Section
51B]
m Accident caused to employee while travelling in employer’s transportation vehicles. [Section
51C]
m At the time of employment the accident caused to the employee while protection or rescuing
other employer from occurring accident. [Section 51D]
m An accident occurring to an employee while commuting from his residence to the place of
employment for duty or from the place of employment to his residence after performing duty,
shall be deemed to have arisen out of and in the course of employment. [Section 51E] (2010
amendment).
Dependents’ Benefit. [Section 52]
The dependents’ benefit is payable to the dependents in cases where an Insured Person dies as
result of Employment Injury. The minimum rate of dependents’ benefit w.e.f 1.1.90 is Rs.14/- per day
and these rates of the dependents’ benefit are increased from time to time. The latest enhancement is
with effect from 01.08.2002
Medical Benefit. [Section 56]
Employer or his family members are entitled to the medical benefit. In case of the retirement of the
employer his spouse shall be eligible to receive medical benefit subject to payment of contribution. In
case of permanent disablement by the employee, he can get medical benefit till the date of his retirement.
Maximum age for the retirement is 60 years.
Benefit not assignable or attachable. [Section 60]
m The right to receive any payment of any benefit under this Act shall not be transferable or
assignable.
m No cash benefit payable under this Act shall be liable to attachment or sale in execution of any
decree or order of any Court.
[Section 59B]
The Corporation can establish medical colleges, nursing colleges and training institutes for its Para-
medical staff and other employees with a view to improve the quality of services provided under the
Employees’ State Insurance Scheme.
Recipients of Sickness or Disablement Benefit to Observe Conditions. [Section 64]
A person who is in receipt of sickness benefit or disablement benefit (other than benefit granted on
permanent disablement) :
m should remain under medical treatment at a dispensary, hospital, clinic or other institution
provided under this Act and shall carry out the instructions given by the medical officer or
medical attendant in charge thereof;
m should not while under treatment do anything and have chances of recovery;
m shall not leave the area in which medical treatment provided by this Act is being given, without
the permission of the medical officer, medical attendant or such other authority as may be
specified in this behalf by the regulations; and
m should allow himself to be examined by any duly appointed medical officer or other person
authorized by the Corporation in this behalf.
Benefits not to be Combined. [Section 65]
(1) An insured person shall not be entitled to receive for the same period-
(a) both sickness benefit and maternity benefit;
(b) both sickness benefit and disablement benefit for temporary disablement; or
(c) both maternity benefit and disablement benefit for temporary disablement.
(2) Where a person is entitled to more than one of the benefits mentioned in sub-Section (1), he
shall be entitled to choose which benefit he shall receive.
Employer not to Dismiss or Punish Employee during Period of Sickness, etc.

[Section 73]
No employer shall dismiss, discharge, or reduce or otherwise punish an employee during the following
circumstances
m sickness m maternity leave
m pregnancy or confinement m under the treatment in the hospital
m temporary disablement
Adjudication of Disputes and Claims Constitution of Employees’ Insurance Court.

[Sec. 74]
m The Court shall consist of such number of Judges as the State Government may think fit.
m Any person who is or has been a judicial officer or is a legal practitioner of 5 years’ standing
shall be qualified to be a Judge of the Employees’ Insurance Court.
m The State Government may appoint the same Court for two or more local areas or 2 or more
Courts for the same local area.
m Where more than one Court has been appointed for the same local area, the State Government
may by general or special order regulate the distribution of business between them.
Matters to be Decided by Employees’ Insurance Court. [Sec. 75]
If any question or dispute arises as to :
m Payment of pay the employee’s contribution.
m Payment of benefits and duration.
m the rate of contribution payable by a principal employer in respect of any employee.
m dispute between a principal employer and the Corporation, or between a principal employer
and an immediate employer or between a person and the Corporation or between an employee
and a principal or immediate employer.
[Section 75 (2A)]
The following claims shall be decided by the Employees’ Insurance Court, namely:
m claim for the recovery of contributions from the principal employer;
m claim by a principal employer to recover contributions from any immediate employer.
[Section 77 (1A)]
Every such application shall be made within a period of three years from the date on which the cause
of action arose.
Power of State Government to Make Rules. [Section 96]
The State Government may, after consultation with the Corporation, subject to the condition of previous
publication, make rules not inconsistent with this Act in regard to all or any of the following matters,
namely :
m the constitution of Employees’ Insurance Courts, the qualifications of persons who may be
appointed Judges thereof, and the conditions of service of such Judges;
m the procedure to be followed in proceedings before such Courts and the execution of orders
made by such Courts;
m the fee payable in respect of applications made to the Employees’ Insurance Court, the costs
incidental to the proceedings in such Court, the form in which applications should be made to
it and the particulars to be specified in such applications;
m the establishment of hospitals, dispensaries and other institutions, the allotment of insured
persons or their families to any such hospital, dispensary or other institution;
m the scale of medical benefit which shall be provided at any hospital, clinic, dispensary or
institution, the keeping of medical records and the furnishing of statistical returns; the nature
and extent of the staff, equipment and medicines that shall be provided at such hospitals,
dispensaries and institutions;
m the conditions of service of the staff employed at such hospitals, dispensaries and institutions;
and
m any other matter which is required or allowed by this Act to be prescribed by the State
Government.
[Section 82 (3)]
Appeal can be made to high court after the ESI courts. The period of limitation for an appeal to the high
court of that state should be within 60 days when there is question law.
Chapter VII: Penalties
Section Reason Penalty
· Whoever, for the purpose of causing any

increase in payment punishable with imprisonment for a
term which may extend to 6 months, or
· Whoever, for the purpose of causing any
with fine not exceeding 2000/- rupees,
payment or benefit to be made where no
or with both.
payment
PROVIDED that where an insured
84 · Whoever, for the purpose of avoiding any
person is convicted under this Section,
payment to be made by himself under this Act
he shall not be entitled for any cash
· Whoever, enabling any other person to avoid benefit under this Act for such period as
any such payment, knowingly makes may be prescribed by the Central
· Whoever, made any false statement or false Government.
representation,
imprisonment for a term which may
fails to pay any contribution which under this Act
extend to 3 years but which shall not be
he is liable to pay
less than one year,
in case of failure to pay the employee's fine of 10,000/- rupees and
contribution which has been deducted by him imprisonment which shall not be less
from the employee's wages than six months
85
· fails or refuses to submit any return required
by the regulations, or makes a false return,
Imprisonment for a term which may
· deducts or attempts to deduct from the wages
extend to one year or with fine which
of an employee the whole or any part of the
may extend to 4000/- rupees, or with
employer's contribution,
both.
· obstructs any Inspector or other official of the
Corporation in the discharge of his duties,
Imprisonment for a term which may

Repeated failure by the employer to pay any
extend to 5 years but which shall not be
85A contribution which under this Act he is liable to
less than 2 years and shall also be liable
pay,
to fine of 25,000/- thousand rupees.
WORKMAN COMPENSATION ACT, 1923

The main objective of the Act is to impose an obligation upon the employers to pay compensation to
workers for accidents arising out of and in course of employment.
Introduction
The Act applies to any person who is employed otherwise than in a clerical capacity, in railways
factories, mines, plantations, mechanically propelled vehicles, loading and unloading work on a
ship, construction, maintenance and repairs of roads and bridges, electricity generation, cinemas,
catching or trading of wild elephants, circus, and other hazardous occupations and other employment
specified in Schedule II to the Act, Under Section 2(3) of the Act, the State Governments are empowered
to extend the scope of the Act to any class of persons whose occupations are considered hazardous
after giving three months’ notice in the official gazette. The Act, however, does not apply to members
serving in the Armed Forces of Indian Union, and employees covered under the provisions of the
Employees’ State Insurance Act 1988 as disablement and dependents’ benefit is available under this
Act.
Definition [Sec. 2(1)]

(d) “Dependent” means any of the following relatives of a deceased (dead) workman, namely
(i) a widow, a minor legitimate or adopted son, and unmarried legitimate or adopted daughter,
or a widowed mother; and
(ii) If wholly dependent on the earnings of the workman at the time of his death, a son or a
daughter who has attained the age of 18 years and who is infirm;
(iii) If wholly or in part dependent on the earnings of the workman at the time of his death,
(a) A widower,
(b) A parent other than a widowed mother,
(c) A minor illegitimate son, an unmarried illegitimate daughter or a daughter legitimate
or illegitimate or adopted if married and a minor or if widowed and a minor,
(d) A minor brother or an unmarried sister or a widowed sister if a minor,
(e) A widowed daughter-in-law,
(f) A minor child of a pre-deceased son,
(g) A minor child of a pre-deceased daughter where no parent of the child is alive, or
(h) A paternal grandparent if no parent of the workman is alive.
(f) “managing agent” means any person appointed or acting as the representative of another
person for the purpose of carrying on such other person’s trade or business, but does not
include an individual manager subordinate to an employer;
(ff) “Minor” means a person who has not attained the age of 18 years
(g) “partial disablement” means, where the disablement is of a temporary nature, such disablement
as reduces the earning capacity of a workman in any employment in which he was engaged at
the time of the accident resulting in the disablement, and, where the disablement is of a permanent
nature, such disablement as reduces his earning capacity in every employment which he was
capable of undertaking at that time:
Every injury specified in Part II of Schedule I shall be deemed to result in permanent partial
disablement.
(l) “total disablement” means such disablement, whether of a temporary or permanent nature, as
incapacitates a workman for all work which he was capable of performing at the time of the
accident resulting in such disablement :
Permanent total disablement shall be deemed to result from every injury specified in Part I of
Schedule I, mentioned below OR
Permanent total disablement shall be deemed to result from every injury specified in Part II of
Schedule I, mentioned below OR
from any combination of injuries specified in Part II thereof where the aggregate percentage the
loss of earning capacity, as specified in the said Part II against those injuries, amount to 100%
or more;
Appointment of Commissioner. [Sec. 20]

(1) The State Government may, by notification in the Official Gazette, appoint any person who is
or has been a member of a State Judicial Service for a period of not less than five years or is or has
been for not less than five years an advocate or a pleader or is or has been a Gazetted officer for
not less than five years having educational qualifications and experience in personnel
management, human resource development and industrial relations”
(2) Where more than one Commissioner has been appointed for any area, the State Government
may, by general or special order, regulate the distribution of business between them.
(3) Any Commissioner may, for the purpose of deciding any matter referred to him for decision
under this Act, choose one or more persons possessing special knowledge of any matter relevant
to the matter under inquiry to assist him in holding the inquiry.
(4) Every Commissioner shall be deemed to be a public servant within the meaning of the Indian
Penal Code (45 of 1860).
Employer’s Liability for Compensation. [Sec. 3(1)]

If personal injury is caused to a workman by accident arising out of and in the course of his employment,
his employer shall be liable to pay compensation in accordance with the provisions of this Chapter
The Employer Shall Not Be So Liable In Following Cases [Sec. 3 (1)]
(a) Any injury which does not result in the total or partial disablement of the workman for a period
exceeding 3 days, employer is not liable to pay the compensation.
(b) Accidents caused due to, (i) the workman having been at the time thereof under the influence of
drink or drugs, (alcohol) or (ii) the willful disobedience of the workman to an order expressly
given, or to a rule expressly framed, for the purpose of securing the safety of workmen, or
(iii) the willful removal or disregard by the workman of any safety guard or other device which
he knew to have been provided for the purpose of securing the safety of workmen,
Occupational Diseases. An occupational disease is any chronic ailment that occurs as a result of
work or occupational activity. It is an aspect of occupational safety and health. An occupational
disease is typically identified when it is shown that it is more prevalent in a given body of workers
than in the general population, or in other worker populations.
[Sec. 3 (2)]. The worker/employee must have minimum 6 months period of service in particular
employment under employer to claim the compensation for occupational disease mention in Part B
of schedule III for which he was effected. May be the reason behind above condition is, current
employer shouldn’t be blamed for the occupational disease caused by the previous employer for his
worker under employment. There should be certain service time gap to blame whether current
employer or previous employer is liable for the occupation disease caused to worker under
employment.
Amount of Compensation [Sec. 4]
1. This section deals with how compensation is to be calculated for injured or deceased workman.
2. Calculation of the compensation is made on the monthly wage or salary of employee.
3. The amount of compensation varies from worker death, permanent total disablement, permanent
partial disablement and temporary disablement.
Compensation in case of death [Sec. 4(1) (a)]. While calculating the compensation of the workman,
age of the workman and relevant factor is taken in to account.
50% of monthly wages of the deceased workman × relevant factor with reference to the age of
injured workman. Or 20,000/- rupees of compensation. Whichever is more.
Compensation in case of permanent total disablement [Sec. 4(1) (b)]. 60% of monthly wages of
workman × relevant factor with reference to the age of injured workman. Or 1, 40,000/- rupees of
compensation. Whichever is more.
For above the calculation of the compensation in case of death or permanent partial disablement,
the monthly wage of workman is limited to 4000/- Rupees only. Or the government may prescribe and
change the monthly wage amount for calculation of the compensation.
Compensation in case of permanent partial disablement [Sec. 4(1) (c)]. Injury specified in Part II of
Schedule I. The calculation of the compensation is same as in case of the permanent total disablement.
More injuries than one are caused by the same accident. All injuries compensation caused by same
accident will be added but compensation amount payable should not exceed more than what would
have been payable in the case of permanent partial disablement.
Compensation in case of Temporary disablement [Sec. 4(1) (d)]. In case of temporary disablement,
payments equal to 25 % of the workers’ wages shall be made at fortnightly intervals (every two weeks).
[Sec. 4(2)]. In case the disablement lasts for more than 28 days, the employer should make the payment
on the 16th day from the day of the disablement. If the period of disablement lasts for less than 28 days,
the payment shall be made after the expiry of 3 days. This wait for 3 days is to ascertain how long the
temporary disablement will last—less than/equal to 28 days or more. In case the employer makes any
payment to the worker before the payment of this half monthly (every two weeks) or lump sum amount,
it shall be deducted from any lump sum or half-monthly payments. [Section 4 (2) (a)]
[Sec. 4(2A)]. The employee shall be reimbursed the actual medical expenditure incurred by him for
treatment of injuries caused during course of employment.
If the injury of the workman results in his death, [Sec. 4(4)]. the employer shall, in addition to the
compensation under sub-section (1), deposit with the Commissioner a sum of 2500/- for payment of
the same to the eldest surviving dependant of the workman towards the expenditure of the funeral of
such workman or where the workman did not have a dependant or was not living with his dependant
at the time of his death to the person who actually incurred such expenditure.
Compensation to be Paid When due and Penalty for Default. [Sec. 4A]. Employer must pay the
compensation to the workman within one month of time. If employer fails to pay the compensation
within one month of time, the commissioner can direct the employer to pay the amount and addition
to that 12% of simple interest per annum. If employer without proper reason or there is no justification
for the delay in payment of compensation, the commissioner can direct the employer to pay extra sum
of not exceeding 50% of compensation amount as the penalty. [Sec. 4A (b)]
Review [Sec. 6]
m In the case of temporary disablement of the workman, employer should pay the amount as
compensation for every two weeks.
m If workman condition is improving, employer can make a application to the commissioner for
reduction of compensation amount payable.
m If the workman condition is becoming worse, with the help of the qualified medical practitioner
can make an application to commissioner for increase in compensation amount payable for
every two weeks.
m If the accident is found to have resulted in permanent disablement, be converted to the lump
sum to which the workman is entitled less any amount which he has already received by way
of half-monthly payments.
Commutation of Half-monthly Payments [Sec. 7]
In the case of temporary disablement of the workman and his compensation amount for every two
weeks have been continued more than 6 months, employer and workman can settlement of lump sum
amount or can make an application to commissioner for settlement of lump sum amount.
Distribution of Compensation. [Sec. 8]
m Compensation must be paid to the dependents only. No other persons except dependents
having are right to claim compensation.
m Compensation should not be paid directly to the workman by his employer in case of injury or
death etc.
m Employer should deposit the workman compensation with the commissioner.
m The deposited compensation to workman shall be paid through the commissioner to the
workman.
m If no dependent is there for deceased (dead) workman, there is no necessity to pay compensation
by the employer. [Sec. 8 (4)].
m If two or more dependents exist for a deceased workman, the compensation amount shall be
distributed by the commissioner according to his wish. [Sec. 8 (5)].
m If the workman dependent is of legal disability ((a minor), or mental capacity) or neglect of
children, the compensation amount shall be invested for their according to the directions of the
commissioner.
[Sec. 9]. Except to the workman, compensation should not be pass or attachment to other person. Only
in case of death of the workman, compensation should be given to the dependents.
Notice and Claim. [Sec. 10]
After the occurrence of the accident to the workman, giving notice to the employer is must.
After the occurrence of the accident to workman or the death of the workman, with in 2 years
notice should be given to the employer.
Without giving notice of accident or death of the workman, claim of compensation is not considered
by the commissioner.
Every notice given to employer about the accident of the workman should contain the following
details.
(a) Name of the injured workman.
(b) Address of the injured workman.
(c) Date on which the accident happened.
Notice should be registered post addressed.
Power to Require from Employers Statements Regarding Fatal Accidents. [Sec. 10A]
Commissioner receives information from any source about the death of the workman or the occurrence
of the accident to the workman under employment, he is having power to send notice to employer
through registered post demanding the employer for explanation about the cause and reasons for the
accident or the death of the workman. Within 30 days from the receipt of the notice from commissioner
by the employer has to submit all the details of the accident or the death of the workman. Employer
should mention whether he is liable to pay the compensation or not liable to pay the compensation to
the workman
m If employer accepts the liability to pay the compensation to the workman, employer should
deposit the compensation with the commissioner with in 30 day from the receipt of the notice.
m If employer rejects the liability to the compensation to the workman, employer should mention
all details why he is not so liable.
Reports of Fatal Accidents and Serious Bodily Injuries. [Sec. 10B]
After the occurrence of the accident results in death of the workman, or serious bodily injury of the
workman, employer should give notice to the authority appointed by the state government within
7 days.
Medical Examination. [Sec. 11]
m Notice of the workman accident to employer is must.
m Within 3 days after the notice, injured workman should present for the medical examination
before the qualified medical practitioner for free of charge.
m If injured workman is not in a position to attend for medical examination, employer may send
the qualified medical practitioner to him.
m In case temporarily disabled person receiving payment for very 51 days as compensation
should be present for medical examination from time to time.
m If injured workman rejects for the medical examination from time to time demanded by the
employer or the commissioner, injured workman loss the right of the compensation until the
time he refuses to attend for medical examination.
m Injured workman dies without submitting himself for medical examination, commissioner
may direct the employer to pay the compensation to deceased workman dependents. [sec.
11(4)]
m Employer liable to pay the compensation even if the injury of the workman has been aggravated,
because of the irregularity of attendance of workman before the qualified medical practitioner
or refused to follow the guidelines.
Contracting. [Sec. 12]
In case of contracting, the principal (person who employed the workman for contract) or contractor
(principal for the purposes of his trade or business contracts with any other person) is liable to pay the
compensation to the employed workman who is injured.
Insolvency of Employer. [Sec. 14]
In the case where the employer of the worker has entered into an agreement with insurers (insurance
company), to pay compensation and subsequently the employer (may be company) becomes insolvent
or closing down of company, then in the event of any accident happening, the employer’s liabilities
will be transferred to the insurers, and they would be treated as the employers of the aggrieved worker
for the purpose of paying compensation. Compensation cannot be claimed from the insurer in any
case in which the workman fails to give notice to the insurers of the happening of the accident and of
any resulting disablement as soon as practicable after he becomes aware of the institution of the
insolvency or liquidation proceedings.
If the liability of the insurers is to be less than that of the original employers, then the worker can
claim the balance amount from the insolvency proceedings. [Sec. 4(2)]. If employer has taken insurance
to cover claims arising out of workers’ accidents, the insurance company will be responsible to pay
compensation. It is interesting that in such cases were an employer has taken insurance and the
employer will back the worker’s claim against the insurance company. Naturally, as insurance
company is not responsible to pay the worker compensation. The practice of taking insurance is
common only amongst the bigger contractors/companies. In the case of the compensation being half
monthly payments (every two weeks), the insurers may convert that to an appropriate lump sum and
pay that compensation to the worker. [Sec. 14 (5)]
Special Provisions Relating to Masters And Seamen. [Sec. 15]
m Master of the ship is treated as the employer and seamen are treated as the workman employed
under him.
m Notice of the accident and disablement to the seaman is not necessary, if it has happened on
board of the ship.
m In the case of the death of a master or seaman, the claim for compensation shall be made within
one year after the news of the death has been received by the claimant. [Sec. 15(2)]
m In case ship has lost the claim for compensation by claimant shall be made within 18 months
from the date ship is lost.
Special Provisions Relating to Captains and other Members of Crew of Aircraft’s. [Sec. 15A]
m Captain of the aircraft is treated as the employer and crew are treated as the workman employed
under him.
m Notice of the accident and disablement to the crew is not necessary, if it has happened on board
of the aircraft.
m In the case of the death of a Captain of the aircraft or crew, the claim for compensation shall be
made within one year after the news of the death has been received by the claimant. [Sec.
15A(2)]
m In case aircraft has lost, the claim for compensation by claimant shall be made within
18 months from the date aircraft is lost..
Special Provisions Relating to Workmen Abroad of Companies And Motor Vehicles. [Sec. 15B]
(i) In the case of workmen who are persons recruited by companies registered in India and working
as such abroad, and
(ii) Persons sent for work abroad along with motor vehicles registered under the Motor Vehicles
Act, 1988 (59 of 1988) as drivers, helpers, mechanics, cleaners or other workmen, subject to the
following modifications, namely :
(1) The notice of the accident and the claim for compensation may be served on the local agent
of the company, or the local agent of the owner of the motor vehicle, in the country of
accident, as the case may be,
(2) In the case of death of the workman in respect of whom the provisions of this section shall
apply, the claim for compensation shall be made within one year after the news of the
death has been received by the claimant.
Contracting Out. [Sec. 17]

Any contractor agreement made for give-up of compensation from the employer in case of the accident
or the death of the workman is void and not valid.
Penalties. [Sec. 18A.]
Fine of rupees 5000/- as the punishment for disobeying the following :
m Fails to maintain the notice-book of the workman employed at premises by the employer.
m Employer fails to send a statement with in 30 days of the receipt of the notice from commissioner
demanding the reasons for cause of the accident to the workman.
m Employer fails to send a statement with in 7 days to the commissioner the reasons for cause of
the serious bodily injuries to the workman. Employer fails to mention correct number of injuries
for which compensation has to be paid.
Form of Application. [Sec. 22]
m Application should be made before the commissioner by the dependents of the workman for
claiming the compensation
m Fee is necessary for Application to commissioner. [Sec. 22(2)]
m Application form should consist the following details
(a) Reason for application for compensation
(b) Relief they need.
(c) Claims
m Date of the notice given to the employer about the accident of the employer
m If application is illiterate, he or she can take help of other person in preparing the application
form.
Registration of Agreements. [Sec. 28]
When there is agreement (memorandum) of compensation in between workman and employer for
lump sum amount settlement against the half monthly payments (every two weeks payments) to the
women or a person under a legal disability, employer should sent the memorandum to the commissioner.
Memorandum should not be obtained by fraud, undue influence or other improper means. If the
commissioner satisfies with memorandum, it shall be registered.
[Sec. 29]. If memorandum of agreement is not send to commissioner by the employer shall be liable to
pay the full amount of compensation which he is liable to pay.
APPEALS. [Sec. 30]
In the following circumstance the employer or workman can appeal to High court of that state :
(a) an order awarding as compensation a lump sum whether by way of redemption of a half-
monthly payment or otherwise or disallowing a claim in full or in part for a lump sum;
an order awarding interest or penalty under section 4A;
(b) an order refusing to allow redemption of a half-monthly payment;
(c) an order providing for the distribution of compensation among the dependents of a deceased
workman, or disallowing any claim of a person alleging himself to be such dependant;
(d) an order allowing or disallowing any claim for the amount of an indemnity under the provisions
of sub-section (2) of section 12; or
(e) an order refusing to register a memorandum of agreement or registering the same or providing
for the registration of the same subject to conditions.
MATERNITY BENEFIT ACT, 1961
Prior to the enactment of the Maternity Benefit Act, of 1961 there were in force several central and State
Maternity Benefit Acts in the country. But there was no uniformity in their provisions for all women
workers in the country. It is true that its object was achieved by the enactment of the Employees’ State
Insurance Act of 1948, which superseded the provisions of several Maternity Benefit Acts. But the
Employees’ State Insurance Act did not cover all women workers in the country. The Maternity Benefit
Act of 1961 was therefore passed to provide uniform maternity benefit for women workers in certain
industries not covered by the Employees’ State Insurance Act.
Introduction
The object of maternity leave and benefit is to protect the dignity of motherhood by providing for the
full and healthy maintenance of women and her child when she is not working. With the advent of
modern age, as the number of women employees is growing, the maternity leave and other maternity
benefits are becoming increasingly common. But there was no beneficial piece of legislation in the
horizon which is intended to achieve the object of doing social justice to women workers employed in
factories, mines and plantation.
An Act is to regulate the employment of women in certain establishment for certain period before
and after child-birth and to provide for maternity benefit and certain other benefits.
Object of the Act
To protect the dignity of motherhood and the dignity of a new person’s birth by providing for
the full and healthy maintenance of the woman and her child at this important time when she
is not working.
Coverage of the Act
Upon all women employees either employed directly or through contractor except domestic
women employee employed in mines, factories, plantations and also in other establishments if
the State Government so decides. Therefore, if the State Government decides to apply this Act to
women employees in shops and commercial establishments, they also will get the benefit of
this Act. Bihar, Punjab, Haryana, West Bengal, U.P., Orissa and Andhra Pradesh have so on.
3. Definitions
In this Act, unless the context otherwise requires,
(a) “Appropriate Government” means in relation to an establishment being a mine 7 [or An
establishment where persons are employed for the exhibition of equestrian, Acrobatic and
other performances], the Central Government and in relation to any Other establishment,
the State Government;
(b) “child” includes a still-born child;
(c) “Delivery” means the birth of a child;
(d) “Employer” means
(i) in relation to an establishment which is under the control of the Government, a Person
or authority appointed by the Government for the supervision and Control of employees
or where no person or authority is so appointed, the Head of the department;
(ii) in relation to an establishment which is under any local authority, the person appointed
by such authority for the supervision and control of employees or where no person is so
appointed, the chief executive officer of the local authority;
(iii) in any other case, the person who are the authority which has the ultimate control over
the affairs of the establishment and where the said affairs are entrusted to any other
person whether called a manager, managing director, managing agent, or by any other
name, such person;
(e) “Establishment” means:
(i) a factory;
(ii) a mine;
(iii) a plantation;
(iv) an establishment wherein persons are employed for the exhibition of equestrian,
acrobatics and other performances; or
(v) an establishment to which the provisions of this Act have been declared under Sub-
section (4) of section 2 to be applicable;]
(f) “Factory” means a factory as defined in clause (m) of section 2 of the Factories Act, 1948 (63
of 1948);
(g) “Inspector” means an Inspector appointed under section 14;
(h) “Maternity benefit” means the payment referred to in sub-section (1) of section 5;
(i) “mine” means a mine as defined in clause (j) of section 2 of the Mines Act, 1952 (35 of 1952)
(j) “Miscarriage” means expulsion of the contents of a pregnant uterus at any period prior to
or during the twenty-sixth week of pregnancy but does not include any miscarriage the
causing of which is punishable under the Indian Penal Code (45 of 1860);
(k) “Plantation” means a plantation as defined in clause (f) of section 2 of the Plantations
Labour Act, 1951 (69 of 1951);
(l) “Prescribed” means prescribed by rules made under this Act;
(m) “State Government” in relation to a Union territory, means the Administrator
Thereof;
(n) “wages” means all remuneration paid or payable in cash to a woman, if the terms of the
contract of employment, express or implied, were fulfilled and includes :
(1) such cash allowances (including dearness allowance and house rent allowance) as a
woman is for the time being entitled to;
(2) incentive bonus; and
(3) the money value of the concessional supply of food grains and other articles,
but does not include:
(i) Any bonus other than incentive bonus;
(ii) Overtime earnings and any deduction or payment made on account of fines;
(iii) Any contribution paid or payable by the employer to any pension fund or provident
fund or for the benefit of the woman under any law for the time being in force; and
(iv) Any gratuity payable on the termination of service;
(o) “woman” means a woman employed, whether directly or through any agency, for wages
in any establishment.
4. Employment of, or work by, women prohibited during certain period
(1) No employer shall knowingly employ a woman in any establishment during the six weeks
Immediately following the day of her delivery or her miscarriage.
(2) No woman shall work in any establishment during the six weeks immediately following
the day of her delivery of her miscarriage.
(3) Without prejudice to the provisions of section 6, no pregnant woman shall, on a request
being made by her in this behalf, be required by her employer to do during the period
specified in sub-section (4) any work which is of an arduous nature or which Involves long
hours of standing or which in any way is likely to interfere with her pregnancy or the
normal development of the foetus, or is likely to cause her miscarriage or otherwise to
adversely affect her health.
(4) The period referred to in sub-section (3) shall be :
(a) At the period of one month immediately preceding the period of six weeks, before the
date of her expected delivery;
(b) Any period during the said period of six weeks for which the pregnant woman does not
avail of leave of absence under section 6.
5. Right to payment of maternity benefit.
(1) Subject to the provisions of this Act, every woman shall be entitled to, and her employer
shall be liable for, the payment of maternity benefit at the rate of the average daily wage for
the period of her actual absence immediately preceding and including the day of her
delivery and for the six weeks immediately following that day.
(2) No woman shall be entitled to maternity benefit unless she has actually worked in an
establishment of the employer from whom she claims maternity benefit for a period of not
less than one hundred and sixty days in the twelve months immediately preceding the
date of her expected delivery:
Provided that the qualifying period of one hundred and sixty days aforesaid shall not
apply to a woman who has immigrated into the State of Assam and was pregnant at the
time of the immigration.
(3) The maximum period for which any woman shall be entitled to maternity benefit shall be
twelve weeks, that is to say, six weeks up to and including the day of her delivery and six
weeks immediately following that day:
Provided that where a woman dies during this period, the maternity benefit shall be payable
only for the days up to and including the day of her death:
Provided further that where a woman, having been delivered of a child dies during her
delivery or during the period of six weeks immediately following the date of her delivery,
leaving behind in either case the child, the employer shall be liable for the maternity benefit
for the entire period of six weeks immediately following the day of her delivery but if the
child also dies during the said period, then for the days up to and including the day of the
death of the child.
[5-A] Continuance of payment of maternity benefit in certain cases. Every woman entitled to the
payment of maternity benefit under this Act shall, notwithstanding the Application of the
Employees’ State Insurance Act, 1948 (34 of 1948), to the factory or other establishment in
which she is employed, continue to be so entitled until she Becomes qualified to claim maternity
benefit under Sec. 50 of that Act.]
[5-B] Payment of maternity benefit in certain cases. Every woman :
(a) Who is employed in a factory or other establishment to which the provisions of the
Employees’ State Insurance Act, 1948 (34 of 1948), apply;
(b) Whose wages (excluding remuneration for overtime work) for a month exceed the amount
specified in sub-clause (b) of clause (a) of section 2 of that Act; and
(c) Who fulfils the conditions specified in sub-section (2) of section 5, shall be Entitled to the
payment of maternity benefit under this Act.
6. Notice of claim for maternity benefit and payment thereof.

(1) Any woman employed in an establishment are entitled to maternity benefit under the
provisions of this Act may give notice in writing in such form as may be prescribed, to her
employer, stating that her maternity benefit and any other amount to which she may be
entitled under this Act may be paid to her or to such person as she may nominate in the
notice and that she will not work in any establishment during the period for which she
receives maternity benefit.
(2) In the case of a woman who is pregnant, such notice shall state the date from which she
will be absent from work, not being a date earlier than six weeks from the date of her
Expected delivery.
(3) Any woman who has not given the notice when she was pregnant may give such notice as
soon as possible after the delivery.
(4) On receipt of the notice, the employer shall permit such woman to absent herself from the
establishment until the expiry of six weeks after the day of her delivery.
(5) The amount of maternity benefit for the period preceding the date of her expected delivery
shall be paid in advance by the employer to the woman on the production of such proof as
may be prescribed that the woman is pregnant, and the amount due for the subsequent
period shall be paid by the employer to the woman within forty-eight hours of production
of such proof as may be prescribed that the woman has been delivered of a child.
(6) The failure to give notice under this section shall not disentitle a woman to maternity
benefit or any other amount under this Act if she is otherwise entitled to such benefit or
amount and in any such case an Inspector may either of his own motion or on an application
made to him by the woman, order the payment of such benefit or amount within such
period as may be specified in the order.
Notes. See also Sec. 50 of the Employees’ State Insurance Act, 1948, for conditions under
which a woman becomes qualified to claim maternity benefit under this Act.
7. Payment or maternity benefit in case of death of a woman. If a woman entitled to maternity
benefit or any other amount under this Act, dies before receiving such maternity benefit or
amount, or where the employer is liable for maternity benefit under the second provision to
sub-section (3) of section 5, the employer shall pay such benefit or amount to the person
nominated by the woman in the notice given under section 6 and in case there is no such
nominee, to her legal representative.
8. Payment of medical bonus. Every woman entitled to maternity benefit under this Act shall
also be entitled to receive from her employer a medical bonus of twenty-five rupees, if no pre-
natal confinement and post-natal care is provided for by the employer Free of charge.
9. Leave for miscarriage. In case of miscarriage, a woman shall, on production of such Proof as
may be prescribed, be entitled to leave with wages at the rate of maternity benefit for a period of
six weeks immediately following the day of her miscarriage.
10. Leave for illness arising out of pregnancy, delivery, premature birth of child, or miscarriage.
A woman suffering illness arising out of pregnancy, delivery, premature birth of child or
miscarriage shall, on production of such proof as may be prescribed, be entitled in addition to
the period of absence allowed to her under section 6, or, as the case may be, under section 9, to
leave with wages at the rate of maternity benefit for a maximum period of one month.
11. Nursing breaks. Every woman delivered of a child who returns to duty after such Delivery
shall, in addition to the interval for rest allowed to her, be allowed in the courses of her daily
work two breaks of the prescribed duration for nursing the child until the child attains the age
of fifteen months.
12. Dismissal during absence or pregnancy.
(1) Where a woman absents herself from work in accordance with the provisions of this Act, it
shall be unlawful for her employer to discharge or dismiss her during or on account of
such absence or to give notice of discharge or dismissal on such a day that the notice will
expire during such absence, or to vary to her disadvantage any of the conditions of her
service.
(2) (a) The discharge or dismissal of a woman at any time during her pregnancy, if the
woman but for such discharge of dismissal would have been entitled to maternity
benefit or medical bonus referred to in section 8, shall not have the effect of depriving
her of the maternity benefit or medical bonus:
Provided that where the dismissal is for any prescribed gross misconduct the employer
may, by order in writing communicated to the woman, deprive her of the maternity
benefit or medical bonus or both.
(b) Any woman deprived of maternity benefit or medical bonus or both may, within sixty
days from the date on which the order of such deprivation is communicated to her,
appeal to such authority as may be prescribed, and the decision of that authority on
such appeal, whether the woman should or should not be deprived of maternity
benefits or medical bonus or both, shall be final.
(c) Nothing contained in this sub-section shall affect the provisions contained in
subsection (1).
13. No deduction of wages in certain cases. No deduction from the normal and usual daily wages
of a woman entitled to maternity benefit under the provisions of this Act shall be made by
reason only of :
(a) the nature of work assigned to her by virtue of the provisions contained in subsection (3) of
section 4; or
(b) breaks for nursing the child allowed to her under the provisions of section 11.
14. Appointment of Inspectors. The appropriate Government may, by notification in the Official
Gazette, appoint such officers as it thinks fit to by Inspectors for the purposes of this Act and
may define the local limits of the jurisdiction within which they shall exercise their function
under this Act.
15. Powers and duties of Inspectors. An Inspector may, subject to such restrictions or conditions
as may be prescribed, exercise all or any of the following powers, namely:
(a) enter at all reasonable times with such assistants, if any, being persons in the service of the
Government or any local or other public authority as he thinks fit, any premises or place
where women are employed or work is given to them in an establishment, for the purposes
or examining any registers, records and notices required to be kept or exhibited by or under
this Act and require their production for inspection;
(b) examine any person whom he finds in any premises or place and who, he has reasonable
cause to believe, is employed in the establishment:
Provided that no person shall be compelled under this section to answer any question or
give any evidence tending to incriminate himself:
(c) require the employer to give information regarding the names and addresses of women
employed, payments made to them, and applications or notices received from them under
this Act; and
(d) take copies of any registers and records or notices or any portions thereof.
16. Inspectors to be public servants. Every Inspector appointed under this Act shall be deemed to
be a public servant within the meaning of section 21 of the Indian Penal Code (45 of 1860).
17. Power of Inspector to direct payments to be made.
(1) Any woman claiming that maternity benefit or any other amount to which she is entitled
under this Act and any person claiming that payment due under section 7 has been
improperly withheld, may make a complaint to the inspector.
(2) The Inspector may, of his own motion or on receipt of a complaint referred to in subsection
(1), make an enquiry or cause an inquiry to be made and if satisfied that payment has been
wrongfully withheld, may direct the payment to be made in accordance with his orders.
(3) Any person aggrieved by the decision of the Inspector under sub-section (2) may, within
thirty days from the date on which such decision is communicated to such person, appeal
to the prescribed authority.
(4) The decision of the prescribed authority where an appeal has been preferred to it under
sub-section (3) or of the Inspector where no such appeal has been preferred, shall be final.
(5) Any amount payable under these sections shall be recoverable as an arrear of lane revenue.
18. Forfeiture of maternity benefit. If a woman works in any establishment after she has been
permitted by her employer to absent herself under the provisions of section 6 for any period
during such authorised absence, he shall forfeit her claim to the maternity benefit for such
period.
19. Abstracts of Act and rules there under to be exhibited. An abstract of the Provisions of this Act
and the rules made there under in the language or languages of the Locality shall be exhibited
conspicuous place by the employer in every part of the Establishment in which women are
employed.
20. Registers, etc. Every employer shall prepare and maintain such registers, records and muster-
rolls and in such manner as may be prescribed.
21. Penalty for contravention of Act by employers. If any employer contravenes the Provisions of
this Act or the rules made there under he shall be punishable with Imprisonment which may
extend to three months, or with fine which may extend to five Hundred rupees, or with both;
and where the contravention is of any provision regarding Maternity benefit or regarding
payment of any other amount and such maternity benefit or amount has not already been
recovered, the court shall in addition recover such Maternity benefit or amount as if it were a
fine, and pay the same to the person entitled thereto.
22. Penalty for obstructing Inspector. Whoever fails to produce on demand by the Inspector any
register or document in his custody kept in pursuance of this Act or the rules made there under
or conceals or prevents any person from appearing before or being Examined by an Inspector,
shall be punishable with imprisonment which may extend to three months, or with fine which
may extend to five hundred rupees or with both.
23. Cognizance of offences.
(1) No prosecution for an offence punishable under this Act or any rule made there under
shall be instituted after the expiry of one year from the date on which the offence is alleged
to have been committed and no such prosecution shall be instituted except by, or with the
previous sanction of, the Inspector;
Provided that in computing the period of one year aforesaid, the time, if any, taken for the
purpose of obtaining such previous sanction shall be excluded.
(2) No court inferior to that of a Presidency Magistrate or a Magistrate of the First Class shall
try any such offence.
Notes. Sections 21 to 23 deal with penalties under the Act and procedure to try offences
committed under this Act.
24. Protection of action taken in good faith. No suit, prosecution or other legal proceeding shall lie
against any person for anything which is in good faith done or intended to be done in pursuance
of this Act or of any rule or order made there under.
25. Power of Central Government to give directions. The Central Government may give such
directions as it may deem necessary to a State Government regarding the carrying into execution
the provisions of this Act and the State Government shall comply with such directions.
26. Power to exempt establishments. If the appropriate Government is satisfied the having regard
to an establishment or a class of establishments providing for the grant of benefit which are not
less favourable than those provided in this Act, it is necessary so to do, it may, by notification
in the Official Gazette, exempt subject to such conditions and restrictions, if any, as may be
specified in the notifications, the establishment or class of Establishments from the operation of
all or any of the provisions of this Act or of any rule made there under .
27. Effect of laws and agreements inconsistent with this Act.
(1) The provisions of this Act shall have effect notwithstanding anything inconsistent therewith
contained in any other law or in the terms of any award, agreement or contract of service,
whether made before or after the coming into force of this Act: Provided that where under
any such award, agreement, contract of service or otherwise, a woman is entitled to benefits
in respect of any matter which are more favourable to her than those to which she would be
entitled under this Act, the woman shall continue to be entitled to the more favourable
benefits in respect of that matter, notwithstanding that she is entitled to receive benefit in
respect of other matters under this Act.
(2) Nothing contained in this Act shall be construed to preclude a woman from entering into
an agreement with her employer for granting her rights or privileges in respect of any
Matter, which are more favourable to her than those to which she would be entitled under
this Act.
28. Power to make rules.
(1) The appropriate Government may, subject to the condition of previous publication and by
notification in the Official Gazette, make rules for carrying out the purposes of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules
may provide for :
(a) the preparation and maintenance of registers, records and muster rolls;
(b) the exercise of powers (including the inspection of establishments) and the performance
of duties by Inspectors for the purposes of this Act;
(c) the method of payment of maternity benefit and other benefits under this Act in so far as
provision has not been made therefore in this Act;
(d) the form of notices under section 6;
(e) the nature of proof required under the provisions of this Act;
(f) the duration of nursing breaks referred to in section 11;

(g) acts which may constitute gross misconduct for purposes of section 12;
(h) the authority to which an appeal under clause (b) of sub-section (2) of section 12 shall
lie, the form and manner in which such appeal may be made and the procedure to be
followed in disposal thereof;
(i) the authority to which an appeal shall lie against the decision of the Inspector under
section 17; the form and manner in which such appeal may be made and the procedure
to be followed in disposal thereof;
(j) the form and manner in which complaints be made to Inspectors under subsection
(k) of section 17 and the procedure to be followed by them when making inquiries or
causing inquiries to be made under sub-section (2) of that section;
(l) any other matter which is to be, or may be, prescribed.
(3) Every rule made by the Central Government under this section shall be laid as soon as may
be after it is made, before each House of Parliament while it is in session for a total period
of thirty days which may be comprised in one session 11 [or in two or more successive
sessions, and if, before the expiry of the session immediately following the session or the
successive session, aforesaid], both Houses agree in making any Modification in the rule
or both houses agree that the rule should not be made, the rule shall thereafter have effect
only in such modified form or be of no effect, as the case may be; so, however, that any such
modification or annulment shall be without prejudice to the validity of anything previously
done under that rule.
29. Amendment of Act 69 of 1951. In section 32 of Plantation Labour Act, 1951,
(a) in sub-section (1), the letter and brackets “(a)” before the words “in the case of Sickness,”
the word “and” after the words “sickness allowance”, and clause (b) shall be omitted.
(b) in sub-section (2), the words “or maternity” shall be omitted.
30. Repeal. On the application of this Act.
(i) to mines, the Mines Maternity Benefit Act, 1941 (19 of 1941); and Maternity Benefit Act, 1929
(Bom. Act VII of 1929), as in force in that territory, shall stand repealed.

1. Four Principles of labour legislation was 7. The disabilities and discrimination suffered
given by by slaves, indentured and migrant labour. It
(A) R.K. Das aims at removing discrimination suffered by
(B) J.T. Dunlop particular groups of labour
(C) Dale Yoder (A) Protection
(D) All of the above (B) Social justice
2. Four principles of labour legislation was (C) Regulation
given by R.K Das in (D) Welfare
(A) 1937 (B) 1978 8. ____________generally seeks to regulate the
(C) 1948 (D) 1968 relationship between the employers and
employees, on the hand workers and their
3. Which of the following is not the principle
associations, on the others.
of labour legislation?
(A) Protection
(A) Social justice
(B) Social justice
(B) Social welfare
(C) Regulation
(C) National economy
(D) Welfare
(D) International uniformity
9. Social security plan’s five giants in the path
4. New principle of modern labour legislation
of the social progress namely, “want”, “sick-
is/are
ness, “ignorance, “squalor” and “idleness
(A) Protection
was given by
(B) Social justice
(A) R.K. Das
(C) Regulation (B) Gandhiji
(D) All of the above (C) Lord William Beveridge
5. Which of the following is/are the new prin- (D) All of these
ciples of modern labour legislation?
10. Principle of social justice includes
(A) International obligation
(A) Abolitions of servitude
(B) Economic development
(B) Freedom of association
(C) Social security
(C) Collective Bargaining
(D) All of these
6. The labour legislation to protect those work-
11. Which of the following is the principle of
ers who are not able to protect their interest
social welfare?
on their own and also workers, in particu-
lar industries against the hazardous of in- (A) Development of childhood
dustrial process is (B) Opportunity of education
(A) Protection (C) Both A & B
(B) Social justice (D) All of these
(C) Regulation 12. The term of office of the canteen committee
(D) Welfare is ____________.
(A) one year
(B) two years
(C) three years 19. Laws on Industrial relation is concerned
(D) four years with
13. Principle of National Economy is concerned (A) Industrial Disputes act, 1947
with (B) Indian Trade union act, 1926
(A) Development of industry (C) Industrial employment standing order
(B) Social insurance act, 1946
(C) Regulation wage payment (D) All of the above
(D) All of these 20. Laws on Wages is concerned with
14. The primary purpose of ________ is to pro- (A) Minimum wages act, 1948
tect minimum labour standard and improve (B) Payment of wages act, 1936
working condition (C) Payment of bonus act, 1965
(A) Protective labour legislation (D) All of the above
(B) Regulative labour legislation 21. Which of the following laws is concerned
(C) Social security legislation with Social Security ?
(D) Welfare legislation (A) Worker compensation act, 1923
15. ____________generally seeks to regulate the (B) Payment of Gratuity act, 1972
relationship between the employers and (C) Employee state insurance act, 1948
employees, on the hand workers and their (D) All of the above
associations, on the others and provide for 22. __________refers to that body of laws which
methods and manners of settling ID. are enacted to protect & promote the interest
(A) Protective labour legislation of the working class in society.
(B) Regulative labour legislation (A) Company Law
(C) Social security legislation (B) Labour Law
(D) Welfare legislation (C) International Law
16. ______covers those laws which intends to (D) All of the above
provide to the workman social security ben- 23. Name of the lists that contain in the Article
efits during certain contingencies of life. 246 and Seventh schedule
(A) Protective labour legislation (A) Union list
(B) Regulative labour legislation (B) Concurrent list
(C) Social security legislation (C) State list
(D) Welfare legislation (D) All of the above
17. _________is promoting the general welfare 24. In _______ labour legislation was put on
of the workers and improving their living the Concurrent list.
conditions.
(A) 1926 (B) 1925
(A) Protective labour legislation
(C) 1926 (D) 1935
(B) Regulative labour legislation
25. The first factories act was enacted in
(C) Social security legislation
(A) 1881 (B) 1895
(D) Welfare legislation
(C) 1835 (D) 1889
18. Labour legislation in India includes
26. Who is an adult as per factories act?
(A) Laws on working conditions
(A) Who has completed 18 years of age.
(B) Laws on industrial relation
(B) Who has not completed 18 years of age.
(C) Laws on wages
(C) Both A & B.
(D) All of these
(D) None of these.
27. A person who has ultimate control over the 34. Safety provision under factories act includes
affairs of the factory under factories act, 1948 (A) Fencing of machinery
is called as_______. (B) Self acting machines
(A) Director (B) Manager (C) Casing in new machinery
(C) Occupier (D) None of these (D) All of these
28. Who is an adolescent as per factories act, 35. The welfare provision under factories act
1948? 1948 was
(A) Who has completed 17 years of age. (A) Washing facilities
(B) Who has not completed 15 years of age. (B) Facilities for storing & drying clothes
(C) Who has completed 15 years but less (C) Facilities for sitting
than 18 years. (D) All of these
(D) None of these.
36. The welfare provision under factories act
29. _______means a person who has not com- 1948 was
pleted his 15 years of age. (A) First aid appliances
(A) Child (B) Canteen
(B) Adolescent (C) Shelter rest room and lunch room
(C) Adult (D) All of these
(D) None of these
37. Which one of the following is not a welfare
30. _______ means a person who is either a provision under factories act, 1948
child or adolescent. (A) First aid appliances
(A) Young person (B) Canteen
(B) Adolescent (C) Drinking water
(C) Adult (D) Crèche
(D) None of these
38. Welfare officers are to be appointed if
31. The state government may also appoint organisation is engaging _______or more
qualified medical practitioners as ________. employees.
(A) Child (A) 500 (B) 100
(B) Certifying surgeons (C) 600 (D) None of these
(C) Adult 39. Crèche is to provided if __________or more
(D) None of these lady employees are engaged.
32. Which of the following is not the Provision (A) 30 (B) 60
relating to health under factories act 1948? (C) 40
(A) Cleanliness (D) None of these
(B) Disposal of wastage and effluents 40. An adult worker can work up to ____ hrs. in
(C) Ventilation and temperature a day as per factories act, 1948.
33. Provision relating to health under factories (C) 10 (D) None of these
act 1948 includes 41. Canteen is to be provided if engaging em-
(A) Dust and fumes ployees are more then _____ persons.
(B) Artificial humidification (A) 150 (B) 250
(C) Lighting and drinking water (C) 100
42. If the factory employs more then 1000 work- 50. There should be provision for shelters ,rest
ers ,they should appoint a qualified_______ rooms and lunch room in factories employ-
to carry out the prescribed duties. ing more than ______workers.
(A) Safety officer (A) 150 (B) 250
(B) Welfare officer (C) 100 (D) None of these
(C) Security officer 51. One first aid box in a factory shall be pro-
(D) None of these vided for every _______ workers.
43. Leave with wages is allowed for employees (A) 150 (B) 250
if they work for_________days in a month. (C) 100
(A) 15 (B) 25 (D) None of these
(C) 20 (D) None of these 52. For more than ________workers in a factory,
44. The factories employing more than 1000 provision of cooling of drinking water shall
workers are required to submit their plan be made.
for approval to a (A) 150 (B) 250
(A) Chief Inspector of Factory (C) 100
(B) Additional Chief Inspector of Factories (D) None of these
(C) Deputy Chief Inspector of Factories 53. The maximum permissible working hours
(D) None of these in a week for the adult workers are
45. A weekly holiday in the factories for the first (A) 15 (B) 25
time introduced in the year (C) 48 (D) None of these
(A) 1948 (B) 1923 54. In one day the maximum permissible work-
(C) 1931 ing hours for the adult workers are
46. The workers shall be provided with mini- (C) 5 (D) None of these
mum _______ liters of water for everyday 55. Working hours for children in factory are
under the factories act. limited to _____ hours.
(A) 2 litres ( B) 3.5 litres (A) 6 (B) 5
(C) 5 litres (D) 4.5 litters (C) 4 ½ (D) None of these
47. Time allotted for the purpose of washing 56. For overtime work a workers is entitled a
hands is ______ minutes before the end of wage at the rate of ______ his ordinary rate
days work. of wages.
(A) 10 (B) 5 (A) Twice (B) Half
(C) 15 (D) All of these (C) Thrice (D) None of these
48. The occupier of every factory employing 57. To avoid overcrowding in factories _____m3
______ or more workers shall plant and of space per workers is required.
maintain trees within the premises of the (A) 14.2 (B) 14.3
factory. (C) 14.1
(C) 100 (D) None of these
58. While drafting factories act , 1948 the ser-
49. One ambulance room in a factory shall be vices of _______ were utilised.
provided employing more than ________ (A) Sir Wildfrid Garsett
workers.
(B) Sir William
(A) 500 (B) 100
(C) Taylor
(D) None of these
59. The first act was passed on the recommen- (A) Employer
dation of the (B) Employee
(A) Factory commission (C) Authority
(B) Pay commission (D) Employer and Authority
(C) Royal commission 67. The annual return under the factories act
(D) None of these shall be submitted to Inspector of Factories
60. A child who has not completed his on or before___________.
__________ years is prohibited to work in (A) 31st January
factory. (B) 31st December
(A) 15 (B) 25 (C) 30th April
(C) 14 (D) 31st March
(D) None of these 68. Where males are employed, there shall be at
61. Every workers who has worked for a period least one latrine seat for every________male
of _______or more days in factory during a workers shall be provided.
calendar years qualified for annual leave. (A) 20 workers (B) 50 workers
(A) 250 (B) 255 (C) 30 workers (D) 100 workers
(C) 240 (D) None of these 69. The occupier of every factory employing
62. __________is required to appoints inspec- ___________or more workers shall plant
tors for the enforcement of the act by notifi- and maintain trees within the premises of
cation in the official gazette. the factory.
(A) State government (A) 500 workers
(B) Central Government (B) 250 workers
(C) Both (C) 200 workers
(D) None of these (D) 100 workers
63. The expression of “Time card” in Form No. 70. The examination of eye sight of certain work-
25. Shall be substituted as “Service card” ers under the factories act shall be done at
by an amendment in the factories act from least once in every ________ months.
the year (A) 6 (B) 12
(A) 1984 (B) 2005 (C) 18 (D) 24
(C) 2004 (D) 1981 71. The number of elected workers in the can-
64. Under the Section 41.A. of the factories act, teen managing committee shall not be more
the Site Appraisal Committee shall be con- then ______ or less then ______.
stituted once in ________ year under the (A) 5, 2 (B) 20, 10
chairmanship of Chief Inspector of Facto- (C) 15, 10 (D) 10, 5
ries.
72. Under the factory act the ___________
(A) 5 ( B) 2 should provide a canteen for the use of work-
(C) 3 (D) 1 ers in every factory, where the number of
65. To close down a factory, the occupier has to workmen employed is more than 250.
give _______ days notice to the authorities. {Section 46}
(A) 30 days (B) 60 days (A) Employee
(C) 20 days (D) All of these (B) Occupier
66. If an employee alleges that he was working (C) Authority
for the employer and the employer denies it, (D) Employer and Authority.
who has to prove this fact?
73. Employee state insurances act was enacted (C) ESI act, 1948
in (D) All of these
(A) 1984 (B) 1948 81. It is such disablement of permanent nature
(C) 2004 (D) 1981 as incapacities an employee for all work
74. In ESI act, the rate of contribution as on 31 which he was capable of performing at the
March 2002 was ________ per cent of the time of accidents resulting in such disable-
wages payable by the employees. ment
(A) 1.74 (B) 1.50 (A) Permanent total disablement
(C) 2.25 (D) All of these (B) Permanent partial disablement
75. In ESI act, the rate of contribution as on 31 (C) Temporary disablement
March 2002 was_______ per cent of the (D) All of these
employees wages payable by the employers. 82. It is such disablement of permanent nature
(A) 1.74 (B) 4.75 as reduces the earning capacities an em-
(C) 2.25 ployee for all work which he was capable of
(D) All of these performing at the time of accidents result-
ing in such disablement
76. ESI scheme is being administrated by the
(A) Permanent total disablement
(A) ESI administration
(B) Permanent partial disablement
(B) ESI corporation
(C) Temporary disablement
(C) Medical Officer
(D) All of these
(D) All of these
83. __________means a condition resulting
77. The ESI act was enacted due to the sugges-
from an employment injury which requires
tion of which of the following committees
medical treatment and renders an employee
(A) Shiv Rao Committee as a result of such injury, temporarily inca-
(B) Adarkar Committee pable of doing the work which he was do-
(C) Rege Committee ing prior to or at the time of injury.
(D) All of these (A) Permanent total disablement
78. ESI act provides for the following benefits (B) Permanent partial disablement
(A) Sickness benefit & Maternity benefit (C) Temporary disablement
(B) Disablement & Dependents benefits (D) All of these
(C) Medical Benefit & Funeral Expenses 84. As on 31st march 2002, contribution in re-
(D) All of these spects of employees getting wages upto
79. In which of the following legislation, there Rs _______ per day were not payable.
is mention of “Principle employer” and “Im- (A) 40 (B) 30
mediate employer”? (C) 20
(A) Industrial disputes act, 1947 (D) All of these
(B) Trade union act, 1926 85. Qualifying condition of the insured em-
(C) ESI act, 1948 ployee of the sickness benefits were payable
(D) All of these not less than
80. The object of this act is to provide the benefit (A) 78 days (B) 60 days
of the employees in case of sickness ,mater- (C) 50 days
nity and employment injury on all India (D) All of these
basis. 86. The ceiling on wage or salary under the pay-
(A) Industrial disputes act, 1947 ment of bonus act 1965 is
(B) Trade union act, 1926
(A) Rs. 3,500 (B) Rs. 2,500 94. In payment of bonus act, a minimum of ____
(C) Rs. 4,500 (D) Rs. 6,500 per cent wages of an employee is payable.
87. Sickness benefits is payable to an insured (A) 5 (B) 8.33
employee during the periods of sickness , (C) 10
but not more than _____in any two consecu- (D) All of these
tive benefits periods. 95. Every employee shall be eligible for bonus
(A) 80 days (B) 91 days provided he has worked for not less than
(C) 50 days (D) All of these ______working days in that years.
88. A woman employee is entitled to maternity (A) 30 (B) 50
benefits in a benefit periods if contribution (C) 100 (D) All of these
in respects of her were payable for at least 96. ________is the workers share.
_________in the two immediately preced- (A) Available Surplus
ing contribution periods.
(B) Allocable Surplus
(A) 90 days (B) 80 days
(C) Both of these
(c) 50 days (D) All of these
(D) All of these
89. Medical bonus is given Rs ______ to insured
97. Maximum bonus is _____ percent of employ-
woman.
ees salary.
(A) 240 (B) 230
(A) 10 (B) 15
90. The administration of the employee’s state
98. Workman compensation act applies to work-
insurances scheme primarily vest in the
man employed in
______appointed by the central government.
(A) Factories (B) Circuses
(A) ESI Corporation
(C) Railway
(B) ESI Company
(D) All of these
(C) Both of these
(D) All of these 99. __________ means loss of capacity to work
or to move.
91. The administration of the ESI act , 1948 is
(A) Displacement
done by which of the following machinery.
(B) Dependent
(A) ESI Corporation
(C) Disablement
(B) Standing Corporation
(D) All of these
(C) Medical benefits
(D) All of these 100. An employer is liable to pay compensation
to a workman for
92. Which act is conceived as a means of extinc-
(A) Personal injury caused to him by acci-
tion of the evils of the society?
dent
(A) ESI act, 1948
(B) Any occupational diseases
(B) Worker compensation act, 1923
(C) Both A & B
(C) Maternity benefits
(D) All of these
(D) All of these
101. For the enforcement of compensation act
93. ESI Fund is created by _________are appointed.
(A) Payment of benefits to insured person (A) Chief inspectors
(B) Meeting cost of the administration (B) Certifying surgeons
(C) Making provision for the others (C) Commissioners
authorised purposes
(D) All of these
(D) All of these
102. The theory that “the cost of product should (B) Workman compensation act, 1923
bear the blood of the workman” belongs to (C) Both A & B
(A) Maternity benefit, 1961 (D) All of these
(B) Workman Compensation act, 1923 109. Industrial Relation Bill was passed in the
(C) Both A & B year________.
(D) All of these (A) 1984 (B) 1978
103. The common defence available to the em- (C) 2004 (D) 1981
ployers in such compensation cases under 110. Under which Act, provision of conciliation
the common law. officers provided?
(A) Doctrine of assumed risk. (A) Maternity benefit, 1961
(B) Doctrine of contributing negligence. (B) The Industrial Disputes Act 1947
(C) Doctrine of common employment and (C) Both A & B
fellow servant. (D) All of these
(D) All of these.
111. The Code of Discipline ________ reiterated
104. The programme generally providing ben- the faith of the parties in voluntary arbitra-
efits for meeting the minimum need of per- tion.
son of small means are called (A) 1984 (B) 1958
(A) Social Insurance (C) 2004 (D) 1981
(B) Social Assistance
112. What are the main contents of the Indian
(C) Both A & B Trade Union Act?
(D) All of these (A) To provide registration of trade unions
105. The doctrine of contributory negligence and (B) To provide recognition of trade unions
assumed risk are associated with which of (C) Both A & B
the following benefits extended to workers.
(D) All of these
(A) Maternity benefit, 1961
113. An aggrieved employee should be given the
(B) Workman Compensation act, 1923
answer within ________ hours from the
(C) Both A & B submission of grievance.
(D) All of these (A) 80 (B) 50
106. The illness arising of pregnancy, delivery, (C) 40 (D) 48
premature child or miscarriage.
114. What are the principles of the industrial re-
(A) 1 month lations policy?
(B) 2 month (A) The code of conduct
(C) Both A & B (D) All of these (B) The code of discipline
107. Two nursing breaks with prescribed dura- (C) Welfare
tion child attain the age of ___________. (D) All of these
(A) 1 years 3 months
115. The Indian Labour Conference ________ ,
(B) 1 years 4 months reiterated the need for a wide acceptance of
(C) Both A & B voluntary arbitration.
(D) All of these (A) 1984 (B) 1962
108. Employer liable to pay compensation for per- (C) 2004 (D) 1982
sonal injury caused by “arising out of” and 116. The maximum daily hours of work in a day
“in the course of employment” the terms re- with normal wage allowed in factories is
lated to
(A) 11 Hours (B) 10 Hours
(A) Maternity benefit, 1961
(C) 9 hours (D) 8 Hours
117. The maternity leave with full wage is (B) Employee who is not liable under the
(A) 6 month (B) 12 weeks act to pay the employee contribution.
(C) 4 month (D) 16 weeks (C) Minor employee who is not liable under
118. Recognition of trade union is made by the the act to pay the employee contribu-
provision tion.
(A) Trade union act of 1926 (D) None of the above
(B) Industrial disputes act 125. ‘Unemployment allowance’ payable is
stated in
(C) Code of discipline
(A) Employee State Insurance Act, 1948
(D) All of these
(B) Unorganised Sector Workers Social Se-
119. Which is not the structure of trade union of curity Act, 2005
industrial organisation.
(C) Factories Act, 1948
(A) Craft union
(B) General union
126. The ESI act 1948 is applicable to an employee
(C) Industrial union
who draws salary upto
(D) Consumers union
(A) Rs 3500 in case of apprentice
120. A trade union should be registered as per (B) Rs 5000 in case of apprentice and em-
the law must have ployee
(A) 20% of the workers (C) Rs 7500 in case of employee only
(B) 150 workman (D) 10000 are covered under ESI Act, 1948
(C) Minimum 17 person in case of employee only
(D) None of the above 127. The employee state insurances act was en-
121. Which of the following is not a tripartite acted on the basis of the _______ committee’s
body? report.
(A) Work committee (A) B.P. Adarkar committee
(B) I.L.O. (B) Royal commission on labour
(C) I.L.C. (C) Labour investigation committee
(D) None of the above (D) None of these
122. The constitution of site appraisal commit- 128. According to Maternity Benefit Act 1961, the
tees is under the women must have actually worked in an
(A) Trade union act of 1926 establishment of employer from whom she
claims maternity benefit for a period not less
(B) ESI act, 1948
than _________ days in the 12 months im-
(C) Factories act, 1948
mediately preceding the date of her expected
(D) All of these delivery.
123. Under the Equal Remuneration Act, 1976 (A) 80 (B) 70
remuneration means (C) 100 (D) 60
(A) Basic wage only 129. If the wilful removal and disregard by the
(B) Basic wage and dearness allowance workman of any safety guard or other de-
(C) Basic wage and emoluments what so vice which he knew to have been provided
ever payable for the purpose of securing safety of work-
(D) None of the above man.
124. Who is an “exempted employee” under the (A) Employer is not liable to pay compensa-
ESI Act, 1948 tion
(A) Employee who is minor
(B) Employer is liable to pay compensation (B) Miscarriage
(C) Appropriate government is liable to pay (C) Both A & B
compensation (D) None of these
(D) The trade union is liable to pay compen- 137. Every woman entitled to maternity benefit
sation under this Act shall also be entitled to re-
130. A workman who has given a notice of acci- ceive from her employer a medical bonus of
dent to his employer is required to submit twenty-five rupees, if no______and _______
himself for examination by a qualified medi- is provided for by the employer free of
cal practitioner appointed by the employer charge.
within __________of notice. (A) Pre-natal confinement
(A) 4 days (B) 3 days (B) Post natal care
(C) 5 days (D) 7 days (C) Both A & B
131. The maximum amount of claim compensa- (D) None of these
tion payable was Rs ________ in the case of 138. Every woman entitled two nursing breaks
permanent total disablement. of her daily work until the child attains the
(A) Rs 10 lakh (B) Rs 4.56 lakh age of
(C) Rs 5.48 lakh (D) Rs 6 lakh (A) 16 months
132. Permanent total disablement shall be (B) 15 months
deemed to result from every injury specified (C) Both A & B
in Part of (D) None of these
(A) Schedule I (B) Schedule II 139. Under workman compensation act, 1923
(C) Both A & B (D) None of these (A) The appropriate government shall ap-
133. The rate of 50% of subsistence allowance point managing agent.
paid to an employee under suspension for (B) Individual manager subordinate to an
first _______ day. employer cannot act as managing agent.
(A) 40 days (B) 90 days (C) Managing agent includes an individual
(C) 50 days (D) 70 days manager subordinate to an employer.
134. The maximum amount of _______ Gratuity (D) Only employer can act as managing
payable under payment of gratuity act is agent.
(A) Rs 350000 (B) Rs 10 lakh 140. ____________is any chronic ailment that
(C) Rs 500000 (D) None of these occurs as a result of work or occupational
135. If any employer contravenes the provisions activity. It is an aspect of occupational safety
of this Act then he shall be punishable with and health.
Imprisonment which may extend to 3 (A) “Disease”
month, or with fine which may extend to (B) Occupational disease
Rs ___________ or with both; (C) Both A & B
(C) 300 (D) None of these 141. [Sec. 3(2)] The worker/employee must have
136. ________means expulsion of the contents minimum ___________period of service in
of a pregnant uterus at ay period prior to or particular employment under employer to
during the twenty-sixth week of pregnancy claim the compensation for occupational
but does not include any miscarriage the disease mention in Part B of schedule III for
causing of which is punishable under the which he was effected.
Indian Penal Code (45 of 1860); (A) 4 months (B) 3 months
(A) Pregnancy (C) 6 months (D) 7 months
142. Every injury specified in ____________shall than five hours; and he should be allowed
be deemed to result in permanent partial to avail an interval for rest of at least during
disablement. his work in a day. {Section 55}
(A) Schedule I (A) Two hour (B) Half-an hour
(B) Part II of Schedule I (C) One hour (D) All of these
(C) Both A & B 148. Under the factories act the period of work of
(D) None of these a workman should be so arranged that in-
143. “__________” means labour resulting in the clusive of his interval for rest under Section
issue of a living child or labour after 26 weeks 55 should not spread over more than
of pregnancy resulting in the issue of a child __________ in any day. {Section 56}
whether alive or dead. (A) Five hour
(A) Miscarriage (B) Ten and a half hours
(B) Confinement (C) Nine hour
(D) None of these 149. The terms ‘arising out of employment’ and
144. ______________ means the sum of money ‘during and in the course of employment’
payable to the corporation by the principal have been used in
employer in respect of an employee and in- (A) Maternity Benefit Act, 1961
cludes any amount payable by or on behalf (B) Payment of Gratuity Act, 1972
of the employee in accordance with the pro- (C) Workmen’s Compensation Act, 1923
visions of this Act. (Employees’ Compensation Act, 1923)
(A) Contribution (B) Confinement (D) Employees Provident Fund (and Miscel-
(C) Both A & B (D) None of these laneous Provisions) Act, 1952
145. ____________ means any person appointed 150. According to the factories act 1948 creche
or acting as the representative of another must be provided in a factory if there are
person for the purpose of carrying on such (A) 10 or more woman workers
other person’s trade or business, but does (B) 20 or more woman workers
not include an individual manager subor- (C) 25 or more woman workers
dinate to an employer as per ESI act 1948.
(D) 30 or more woman workers
(A) “Managing agent”
151. Among the following which cannot be said
(B) “Managing Clerk”
to be statutory labour welfare facility under
(C) Both A & B factory act, 1948?
(D) None of these (A) Canteen
146. Under the ______________ worker works (B) First Aid box
in a factory for more than nine hours in any (C) Crèche
day or for more than forty-eight hours in any
(D) Housing
week, he shall, in respect of overtime work,
be entitled to wages at the rate of twice his 152. The first factory act was enacted in?
ordinary rate of wages. {Section 59} (A) 1956 (B) 1934
(A) Trade union act of 1926 (C) 1881 (D) 1891
(B) ESI act, 1948 153. The employee state insurance act was en-
(C) Factories act, 1948 acted due to the suggestion of the following
(D) All of these committee
147. Under the_____________ no worker should (A) Shiv Rao committee
be required to work continuously for more (B) Adarkar Committee
(C) Rege Committee 157. Sequences the following act in order of their
(D) All of these years of enactment from earliest to latest
154. Who among the principle employer under (a) Workman compensation act
the ESI act (b) Maternity benefit act
(A) Director General ESI (c) Factory act, 1948
(B) Medical Commissioner (d) Equal remuneration act
(C) An Actuary Codes :
(D) All of these (a) (b) (c) (d)
155. The woman employees are now entitled to (A) (i) (iii) (ii) (iv)
maternity leave according to maternity ben- (B) (iii) (i) (iv) (ii)
efit act, 1961 for a period of (C ) (iii) (iv) (ii) (i)
(A) 140 days (B) 180 days (D) (ii) (iii) ( iv) (i)
(C) 150 days (D) 170 days 158. Match the following
156. Arrange the following in the order of their Contributors Contribution
coverage from lower to higher (a) Robert Owen (i) Social Security
(a) Workman compensation act (b) Mahatma (ii) Employee state
(b) Maternity benefit act Gandhi insurance
(c) Establishment of ILO (c) Bevridge (iii) Welfare movement
(d) Employee state insurance act (d) Adarker (iv) Trusteeship
Codes : Theory
(A) (a) (b) (c) (d) Codes :
(B) (b) (c) (a) (d) (a) (b) (c) (d)
(C) (c) (a) (d) (b) (A) (iv) (iii) (i) (ii)
(D) (d) (a) (b) (c) (B) (iii) (iv) (i) (ii)
(C) (iii) (iv) (ii) (i)
(D) (ii) (iii) (iv) (i)
ANSWER KEY
1. (A) 2. (A) 3. (B) 4. (D) 5. (D) 6. (A) 7. (B) 8. (C) 9. (C) 10. (D)
11. (C) 12. (B) 13. (C) 14. (A) 15. (B) 16. (C) 17. (D) 18. (D) 19. (D) 20. (D)
21. (D) 22. (D) 23. (D) 24. (D) 25. (A) 26. (A) 27. (C) 28. (C) 29. (A) 30. (A)
31. (B) 32. (D) 33. (D) 34. (D) 35. (D) 36. (D) 37. (C) 38. (A) 39. (A) 40. (B)
41. (B) 42. (A) 43. (C) 44. (A) 45. (B) 46. (D) 47. (A) 48. (C) 49. (A) 50. (A)
51. (A) 52. (B) 53. (C) 54. (A) 55. (C) 56. (A) 57. (A) 58. (A) 59. (A) 60. (C)
61. (C) 62. (A) 63. (B) 64. (A) 65. (B) 66. (B) 67. (A) 68. (A) 69. (D) 70. (D)
71. (A) 72. (B) 73. (B) 74. (A) 75. (B) 76. (D) 77. (B) 78. (D) 79. (C) 80. (C)
81. (B) 82. (C) 83. (C) 84. (A) 85. (A) 86. (A) 87. (B) 88. (B) 89. (C) 90. (A)
91. (D) 92. (A) 93. (D) 94. (B) 95. (A) 96. (C) 97. (C) 98. (D) 99. (C) 100. (D)
101. (C) 102. (B) 103. (D) 104. (B) 105. (C) 106. (C) 107. (B) 108. (C) 109. (B) 110. (B)
111. (B) 112. (A) 113. (D) 114. (D) 115. (B) 116. (C) 117. (A) 118. (C) 119. (D) 120. (D)
121. (D) 122. (A) 123. (C) 124. (B) 125. (A) 126. (D) 127. (B) 128. (A) 129. (A) 130. (B)
131. (C) 132. (A) 133. (B) 134. (B) 135. (B) 136. (B) 137. (C) 138. (B) 139. (A) 140. (B)
141. (C) 142. (B) 143. (B) 144. (A) 145. (A) 146. (C) 147. (B) 148. (B) 149. (C) 150. (D)
151. (D) 152. (C) 153. (B) 154. (D) 155. (B) 156. (C) 157. (A) 158. (B)
UNIT
LABOUR LEGISLATION ACT-II
TRADE UNION ACT, 1926

Introduction
The law relating to the registration and protection of the Trade Unions is contained in the Trade
Unions Act, 1926 which came into force with effect from 1st June 1927. The Act extends to the whole of
India except the State of Jammu and Kashmir.
In common parlance, Trade Union means an association of workers in one or more occupations.
Its object is the protection and promotion of the interests of the working class. Trade Unions have a
home grown philosophy based on workers’ experience and psychology. It grows out of the workers’
day-to-day experience.
Objective
The objective of trade union is, any organisation having minimum number of workers or employees in
accordance with the trade union act 1926, having right to form trade union in their organisation and
also have right to elect members of trade union. Trade union is having Right, to protect workers
against exploitation by employer, to represent the grievance of employees on behalf of them to the
management, to protect rights of the workers provided by the employment or labour laws, to take
participation in management for decision-making in connection to workers and to take disciplinary
action against the worker who commits in-disciplinary action.
Central Trade Union Organisations in India

 All India Trade Union Congress (AITUC)
 Bharatiya Mazdoor Sangh (BMS)
 Centre of Indian Trade Unions (CITU)
 Hind Mazdoor Kisan Panchayat (HMKP)
 Hind Mazdoor Sabha (HMS)
 Indian Federation of Free Trade Unions (IFFTU)
 Indian National Trade Union Congress (INTUC)
 National Front of Indian Trade Unions (NFITU)
 National Labor Organisation (NLO)
 Trade Unions Co-ordination Centre (TUCC)
(474)
Labour Legislation Act-II 475
June 2012. The National Mazdoor Union (NMU) gave a strike notice to APSRTC (Andhra Pradesh
State Road Transportation Corporation) Managing Director with nearly 36 demands. In case
management fails to react, union members have decided to strike from following month.
National Mazdoor Union (NMU) said the 36 demands, four were most important. “Abolition of
contract system in APSRTC, regularisation of nearly 22,000 contract drivers and bus conductors,
constitution pay commission were among these.
June 2012. One of the unions of Visakhapatnam steel plant, Indian National Trade Union Congress
(INTUC), has demanded rupees 1 crore ex-gratia ( compensation) for the families of the victims of the
explosion had occurred at the ‘oxygen control unit’ near the Steel Melting Shop-II at Visakhapatnam
steel plant which claimed the lives of 20 persons on 12 June, 2012. Visakhapatnam steel plant had
already paid 20 lakh rupees to each of the families of the deceased workers and officers. The union
also demanded a permanent job for the Kin of the victims. The deceased include Deputy General
Manager (Construction) L Srihari and Deputy General Manager (instrumentation) P V Karunakar.
Definitions
Appropriate Government [Sec. 2]. In relation to Trade Unions whose objects are not confined to one
state ‘the appropriate Government’ is the Central Government. In relation to other Trade Unions, the
‘appropriate Government’ is the State Government.
Executive [Sec. 2(a)]. Executive means the body of which the management of the affairs of a Trade
Union is entrusted.
Trade Dispute [Sec. 2(g)]. A trade dispute means any dispute between the employers and workmen,
the workmen and workmen and the employers and employers which is connected with the employment
or non-employment, or the terms of employment, or the conditions of labour of any person. ‘Workmen’
mean all persons employed in trade or industry whether or not in the employment of the employer
with whom the trade dispute arises.
Trade Union [Sec. 2(h)]. Trade Union means any combination, whether temporary or permanent,
formed primarily for the purpose of regulating the relations between workmen and employers or
between workmen and workmen or between employers and employers for imposing restrictive
conditions on the conduct of any trade or business and includes any federation of two or more Trade
Unions.
Registered Trade Union [Sec. 2(e)]. A registered Trade Union means a ‘Trade Union’ registered under
the Act.
[Sec. 14] Certain Acts do not Apply to Trade Unions
Below mentioned acts will not apply to any registered Trade Union, had the registration of any such
Trade Union under any such Act shall be void.
m The Societies Registration Act, 1860.
m The Cooperative Societies Act, 1912.
m Trade Unions can be registered only under the Trade Union Act, 1926.
Registration of Trade Unions [Sec. 3] Appointment of Registrars.

m The government will appoint a person to be a Registrar.
m The government will appoint required number of person as the Addition and deputy Registrar
of the Trade Unions. These office will be under the Registrar of the Trade Union
[Sec. 4] Minimum Requirement of Registration of Trade Union (2001 amendment)
Applicants seeking registration to show that at least 10% or 100 workmen, whichever is less, engaged
in relevant industry members of such trade union on the date of making application. If a trade union
fails to attract at least 10% workmen engaged in the establishment has no right to get registered.
However, it has been made clear on the date of making application for registration at least 7 persons
as its members must be workmen engaged actually in that industry with which the trade union is
connected. It appears that the strength of the workmen in that industry or establishment must be 70 at
least to enable them to form a trade union and get it registered under the Act, the reason being that 10%
of 70 would be 7 which would fulfill the requirement.
[Sec. 5] Application for Registration.
Application for registering the Trade Union should contain the following :
(a) Name of the 7 persons in Trade Union.
(b) Occupation of the persons.
(c) Address of the persons.
(d) Place of the work of the persons.
(e) Name of the Trade Union.
(f) Address of the Trade Union head Office. If Trade Union has already been existing for one year,
for its registration the members should submit all the details of the Trade Union going to be
registered by the Registrar of Trade Union.
[Sec. 6] Provisions to be contained in the rules of a Trade Union (2001 amendment)
For registration of the Trade Union, provision or rules mentioned below should be followed by the
member for registration of the Trade Union according to this act.
(a) The name of the Trade Union.
(b) The object of the Trade Union.
(c) General funds of the Trade Union by its members should be properly used for Lawful purpose.
(d) Maintenances of list of members in the Trade Union and their facilities to be provided.
(e) (1) Half of the members of the trade union must be the member who actually engaged in an
industry with which trade union is connected.
(2) the payment of a minimum subscription by members of the Trade Union which shall not be
less than:
(i) one rupee per annum for rural workers;
(ii) three rupees per annum for workers in other unorganised sectors; and
(iii) twelve rupees per annum for workers in any other case;
(f) Disciplinary action against member of the Trade Union and procedures in imposition of fines
on members.
(g) the manner in which the rules shall be amended, varied or rescinded;
(h) (1) the manner in which the members of the executive and the other of the Trade Union shall be
elected and removed.
(2) executive members and other office bearers should be elected for the period of maximum 3
years.
(i) Funds of the Trade Union should be safe guarded, annual audit is necessary, and account
books should be maintained for the purpose of inspection if necessary.
(j) Procedure for how to wind up the Trade Union.
Power to call for further particulars and to require alteration of name. [Sec. 7]
m If Registrar is not satisfy with information provided by the members of the Trade Union going
to be registered, Registrar is having power to call its members for submitting the additional and
required information for registering the Trade Union.
m If the Name of the Trade Union is already existed or similar to other Trade Unions names,
registrar is having power to order for changing of the name.
Registration [Sec. 8]
All the documents submitted with details and information is correct by the members of the Trade
Union going to be registered, the Registrar will register the Trade Union.
Certificate of Registration [Sec. 9]
The Registrar registering a Trade Union under Section 8, shall issue a certificate of registration in the
prescribed form which shall be conclusive that the Trade Union has been duly registered under this
Act.
Minimum requirement about membership of a Trade Union [Sec. 9A]
A registered Trade Union of workmen shall at all times continue to have not less than 10% or 100 of the
workmen, whichever is less, subject to a minimum of seven, engaged or employed in an establishment
or industry with which it is connected, as its members.
Cancellation of registration [sec. 10] (2001 amendment)
Registrar of the Trade Union can cancel the registration of the Trade Union in following
circumstances :
m When Trade Union registration certificate has been obtained by fraud or other illegal means.
m Disobey the rules and regulation of Trade Union act.
m All the provision contained in section 6 of this act not followed by the members of the Trade
Union.
m When there are no minimum required numbers of members in the Trade Union.
Appeal [Sec. 11]

m If Registrar of the Trade Union stops registration of the Trade Union or withdrawal of the
registration, members can appeal to Labour Court or an Industrial Tribunal, with in jurisdiction.
m Court can Court may dismiss the appeal, or pass an order directing the Registrar to register the
Union and to issue a certificate of registration under the provisions of Section 9 or setting aside
the order for withdrawal.
Features of Registered Trade Union [Sec. 13]
m Registered Trade Union will have perpetual succession (will no stop after the death of the
members of the Trade Union.
m Every registered Trade Union will have common seal.
m Every registered Trade Union can acquire and hold both movable and immovable property.
m Every registered Trade Union can sue others.
m Every registered Trade Union can sued by others also.
Rights And Liabilities of Registered Trade Unions

A registered Trade Union has the right to maintain
(a) a general fund, and
(b) a separate fund for political purposes: But the Unions are bound to utilise the funds only for the
purposes specified in the Act.
Objects on Which General Funds May be spent [Sec. 15]
The following are the purposes for which the general funds of the Union may be spent:
1. Payment of salaries, allowances, etc., to the office bearers of the Union.
2. Payment of expenses for the administration of the Union including other expenses spent on
defending any legal proceedings by or against the Union.
3. Settlement of trade disputes.
4. Special allowances to the members (including dependents) of the Trade Union on account of
death, sickness or accidents, etc.
5. Compensation to members for loss arising out of trade disputes.
6. Providing educational, social and religious benefits to the members.
7. Issue of assurance policies on the lives of members and also against sickness, accidents,
unemployment, insurance, etc.
8. Providing for publication of periodicals for the use of which is intended for the members
benefit.
9. Any other object that may be notified by the appropriate Government in the Official Gazette.
10. If funds are spent for any purposes other than the above, such expenditure is treated as unlawful
and the Trade Union can be restrained by the Court for applying its funds in any other purposes.
Construction of separate fund for political purposes [Sec. 16]
Apart from the primary objects, a Trade Union may have certain other political objects. As per Sec. 16
a registered union may constitute a separate fund in addition to the general fund and the payment of
such a fund shall be utilised for serving civic and political interest of its members. The fund can be
utilised for the following purposes:
m Holding of any meeting or distribution of any literature or document in support of any candidate
for election as a member of legislative body constituted under the constitution or of any local
authority.
m For maintenance of any person who is a member of any legislative body constituted under the
constitution.
m For convening of political meeting of any kind or distribution of political literature or documents
of any kind.
m The registration of electors for selection of a candidate for legislative body.
The funds collected for political purposes shall not be clubbed with the general fund. No workman
is compelled to contribute in this fund and the nonpayment in this fund cannot be made a condition
for admission to the Trade Union.
Immunity from Punishment for Criminal Conspiracy [Sec. 17]
No office bearer or member of a registered Trade Union will not be punished under the Sec. 120B
punishment of criminal conspiracy of the Indian Penal Code (Conspiracy cases are defined as cases in
which two or more persons agree to commit a crime or to commit an illegal act.) regarding the matters
of the spending the general funds for proper purpose.
Immunity from civil suit to certain cases [Sec. 18]
No suit or other legal proceeding shall be maintainable in any Civil Court against any registered
Trade Union in the following activities and circumstances.
m Delay in the matters relating to the member of the Trade Union regarding the trade disputes like
‘contract of employment’, (is an agreement between an employer and an employee which sets
out their employment rights, responsibilities and duties.)
m Trade Union or its members showing interest or interfering in matters of the trade or business.
m Trade Union or its members showing interest or interfering in matters of the employment of the
persons.
m Trade Union or its members showing interest or interfering in matters of the removal of labour.
m Trade Union or its members showing interest or interfering in matters of compensating or
remunerating the employees.
m Registered Trade Union shall not be liable in any suit or other legal proceeding in any Civil
Court for the tortious act (wrongful act) committed by the agent of the Trade Union.
m Registered Trade Union is not liable for the vicarious liability (if agent commits mistake
intentionally without the knowledge of the Trade Union, agent is liable but not the Trade
Union)
Right to inspect books of Trade Union [Sec. 20 ]
The account books of a registered Trade Union and the list of members thereof shall be open to
inspection by office-bearer or member of the Trade Union at such times as may be provided for in the
rules of the Trade Union.
Rights of minors to membership of Trade Unions [Sec. 21]
Any person who has attained the age of 15 years may be a member of a registered Trade Union and
enjoy all the rights of a member.
Disqualifications of office-bearers of Trade Unions [Sec. 21A]
Person shall be disqualified for being chosen as, and for being member of the executive or any other
office-bearer of a registered Trade Union if
m he has not attained the age of 18 years;
m he has been convicted by a Court in India of any offence involving moral turpitude and sentenced
to imprisonment, unless a period of 5 years has elapsed since his release.
m Change of name [Sec. 23] - Any registered Trade Union may, with the consent of not less than
2/3rd of the total number of its members can change its name.
Amalgamation of Trade Unions

[Sec. 24]
Any 2 or more registered Trade Unions may become amalgamated together as one Trade Union with
or without dissolution or division of the funds of such Trade Unions or either or any of them, provided
that the votes of at least one-half of the members of each or every such Trade Union entitled to vote are
recorded, and that at least 60% of the votes recorded are in favor of the proposal.
[Sec. 25]
m in case of change in the name of the Trade Union, written notice of the change of name must be
signed by secretary and 7 member of the Trade Union are required to sent to registrar of the
Trade Union.
m in case of an amalgamation of the Trade Union, written notice of an amalgamation must be
signed by secretary and 7 member of the Trade Union are required to sent to registrar of the
Trade Union.
m Trade Union name should not match with the other Trade Union names.
m If Registrar satisfies with all requirements provided by the members of Trade Union, Registrar
will change the name and the same entered in the register.
m If Registrar satisfies with all requirements provided by the members of Trade Unions, Registrar
will validate amalgamation and entered in the register.
Dissolution of Trade Union [Sec. 27]
m notice of dissolution signed by secretary and 7 member of the Trade Union, should be sent to
the Registrar of the Trade Union within 14 days from the date of the dissolution of the Trade
Union.
m If registrar satisfies with provisions and rules followed by the members of the Trade Union for
dissolution, he will confirm the dissolution.
m Funds shall be divided by the Registrar among its members if there is no rules mention by the
Trade Union in distribution of the funds.
Returns to the Registrar

Every registered Trade Union shall have to submit annually to the Registrar a general statement of all
receipts and expenditures during the year ended the 31st day of December. Such a statement shall be
accompanied by another statement containing assets and liabilities of Trade Union as existing on 31st
December each year.
THE INDUSTRIAL EMPLOYMENT (STANDING ORDER) ACT, 1946

Introduction
Earlier, the economic law of supply and demand in the labor market was existed between employers
and workers as a mutually beneficial deal. The mutual bargain was treated as such grants, as the
terms and conditions of employment for workers are being kept safe. They had an abiding confident in
the unity of this law. But as the law work, their faith has proven incorrect. Workers later found that
they have not adequately processed fair bargaining power to secure terms and conditions of their
service; they organise themselves into trade unions and began to emphasize collective bargaining
with the employer. With the advent of trade unions and collective bargaining, new problems began
create to maintain industrial peace and production for the society. Workers began to put forth their
demands. The recognition that while, such raw a deal been presented to workers by employers , which
was not able to define their terms of service, and was sure to be in a situation of industrial conflict, the
Legislature stepped sought to introduce a Industrial Employment (Standing Orders) Bill, 1946.
Statement of Objects and Reasons

Experience has shown that ‘standing orders’ defining the conditions of recruitment, discharge,
disciplinary action, holidays, leave, etc., go a long way towards minimising friction between the
management and workers in industrial undertakings. Discussion on the subject at the tripartite
Indian Labor Conference revealed a consensus of opinion in favor of legislation. The Bill accordingly
seeks to provide for the framing of ‘standing orders’ in all industrial establishments employing one
hundred or more workers. In the first instance, the Act will apply to the categories of industrial
establishments specified in clause [2(e)], which include, besides factories and railways, mines, quarries
and oil fields, tramway or motor, omnibus services, docks, wharves and jetties, inland steam vessels,
plantations and workshops.
Government will be competent to extend the Act to other classes of industrial establishments or to
grant exemptions where necessary, by notification. Within 6 months from the date on which the Act
becomes applicable to an industrial establishment the employer is required to frame draft ‘standing
orders’ and submit them to the Certifying Officer for certification. The draft should cover all the
matters specified in the Schedule to the Act and any other matter that Government may prescribe by
rules. The Certifying Officer will be empowered to modify or add to the draft standing orders so as to
render them certifiable under the Act. It will not be his function (nor of the Appellate Authority) to
adjudicate upon their fairness or reasonableness. There will be a right to appeal against the decisions
of the Certifying Officers.
List of Amending Act and Adaptation Orders

1. The Indian Independence (Adaptation of Central Acts and Ordinances) Order, 1948.
2. The Adaptation of Laws Order, 1950.
3. The Part B States (Laws) Act, 1951 (3 of 1951).
4. The Industrial Disputes (Amendment and Miscellaneous Provisions) Act, 1956 (36 of 1956).
5. The Industrial Employment (Standing Orders) Amendment Act, 1961 (16 of 1961).
7. The Central Labor Laws (Extension to Jammu and Kashmir) Act, 1970 (51 of 1970).
It applies to every Industrial establishment wherein 100 or more workmen are employed or were
employed on any day of the preceding 12 months.
Matters to be Provided in Standing Orders Under this Act

m Classification of workmen, e.g., whether permanent, temporary, apprentices, probationers, or
badlis.
m Manner of intimating to workmen periods and hours of work, holidays, pay-days and wage
rates.
m Shift working.
m Attendance and late coming.
m Conditions of, procedure in applying for, and the authority which may grant leave and holidays.
Requirement to enter premises by certain gates, an liability to search.
m Closing and reporting of sections of the industrial establishment, temporary stoppages of work
and the rights and liabilities of the employer and workmen arising there from.
m Termination of employment, and the notice to be given by employer and workmen.
m Suspension or dismissal for misconduct, and acts or omissions which constitute misconduct.
m Means of redress for workmen against unfair treatment or wrongful exactions by the employer
or his agents or servants.
m Any other matter which may be prescribed.
Submission of Draft Standing Orders

Within six months of the application of the Act , to an industrial establishment, the employer shall
submit to the Certifying Officer five copies of the draft standing orders proposed by him for adoption
in his industrial establishment.
Standing orders to be accompanied by particulars of workmen. The draft standing orders submitted
shall be accompanied by a statement giving prescribed particulars of the workmen employed in the
industrial establishment including the name of the trade union, if any, to which they belong.
Employers in similar establishments may submit a joint draft for their convenience.
Conditions for certification of standing orders. Standing orders shall be certified under this Act if :
(a) provision is made for every matter set out which is applicable to the industrial establishment,
and
(b) the standing orders are otherwise in conformity with the provisions of this Act; the Certifying
Officer is under an obligation to adjudicate upon the fairness or reasonableness of the provisions
of any standing orders.
Certification of Standing Orders

m Copy of the draft standing order to be sent to trade union or workmen: On receipt of the draft,
the Certifying Officer shall forward a copy to the trade union, if any, of the workmen, or where
there is no such trade union, to the workmen ,in the prescribed form requiring objections, if any,
which the workmen may desire to make to the draft standing orders to be submitted to him
within fifteen days from the receipt of the notice.
m After giving the employer and the trade union or representatives of the workmen an opportunity
of being heard, the Certifying Officer shall decide whether or not any modification or addition
to the draft submitted by the employer is necessary to render the draft standing orders certifiable
under this Act, and shall make an order in writing accordingly.
m The Certifying Officer shall thereupon certify the draft standing orders, after making any
modifications and within seven days send copies of the certified standing orders to the employer
and to the trade union or other prescribed representatives of the workmen.
Appeals
Any employer, workman, trade union or other prescribed representatives of the workmen aggrieved
by the order of the Certifying Officer within 30 days from the date on which copies are sent by the
certifying officer, appeal to the appellate authority, and the appellate authority, whose decision shall
be final, shall by order in writing confirm the standing orders either in the form certified by the
Certifying Officer or after amending the said standing orders by making such modifications or additions
as it thinks necessary to render the standing orders certifiable under this Act. The appellate authority
shall, within seven days of its order , send copies of the Certifying Officer, to the employer and to the
trade union or other prescribed representatives of the workmen.
Date of operation of standing orders. Standing orders shall, unless an appeal is preferred , come into
operation on the expiry of thirty days from the date on which authenticated copies are sent or where
an appeal is preferred, on the expiry of seven days from the date on which copies of the order of the
appellate authority are sent.
Register of standing orders. A copy of all standing orders as finally certified under this Act shall be
filled by the Certifying Officer in a register in the prescribed form maintained for the purpose, and the
Certifying Officer shall furnish a copy to any person on payment of the prescribed fee.
Posting of standing orders. The text of the certified standing orders shall be prominently posted by the
employer in English and in the language understood by the majority of his workmen on special
boards maintained for the purpose at or near the entrance through which the majority of the workmen
enter the industrial establishment and in all departments where the workmen are employed.
Duration and modification of standing orders. A certified standing orders shall not, except on
agreement between the employer and the workmen or a trade union or other representatives of the
workmen be liable to modification until the expiry of six months from the date on which the standing
orders or the last modifications thereof came into operation. An employer or workman or a trade union
or other representative body of the workmen may apply to the Certifying Officer for the modification
and such application shall be accompanied by five copies of the modifications proposed to be made,
and where such modifications are proposed to be made by agreement between the employer and the
workman or a trade union or other representative of the workmen, a certified copy of that agreement
shall be filled along with the application.
THE INDUSTRIAL DISPUTES ACT, 1947

The objective of the Industrial Disputes Act is to secure industrial peace and harmony by providing
machinery and procedure for the investigation and settlement of industrial disputes by negotiations.
This act deals with the retrenchment process of the employees, procedure for layoff, procedure and
rules for strikes and lockouts of the company.
Introduction
Industrial Disputes have adverse effects on industrial production, efficiency, costs, quality, human
satisfaction, discipline, technological and economic progress and finally on the welfare of the society.
A discontent labour force, nursing in its heart mute grievances and resentments, cannot be efficient
and will not possess a high degree of industrial morale. Hence, the Industrial Dispute Act of 1947, was
passed as a preventive and curative measure.
Scope and Object

The Industrial Dispute Act of 1947, came into force on the first day of April, 1947. Its aim is to protect
the workmen against victimisation by the employers and to ensure social justice to both employers
and employees. The unique object of the Act is to promote collective bargaining and to maintain a
peaceful atmosphere in industries by avoiding illegal strikes and lock outs. The Act also provides for
regulation of lay off and retrenchment. The objective of the Industrial Disputes Act is to secure industrial
peace and harmony by providing machinery and procedure for the investigation and settlement of
industrial disputes by negotiations.
Definitions
Appropriate Government [Sec. 2(a)]. Appropriate Government means the Central Government in
relation to any industrial dispute concerning any industry carried on by or under the authority of the
Central Government, any industry carried on by a Railway Company, any controlled industry specified
by the Central Government, The Unit Trust of India, Corporations under the Central Statutes, Banking
company, Insurance company, Mines, Oil field, Cantonment board, Major ports, etc. In relation to any
other industrial dispute, the appropriate Government is the State Government.
Award [Sec. 2 (b)] means an interim or a final determination of any industrial dispute or of any
question relating thereto by any Labour Court, Industrial Tribunal or National Industrial Tribunal
and includes an arbitration award made under section 10A;
Industry [Sec. 2(j)]. Industry means any business, trade, undertaking, manufacture or calling of
employers and includes any calling, service, employment, handicraft or industrial occupation or
avocation of workmen.
Industrial Dispute [Sec. 2(k)] means any dispute or difference between employers and employers, or
between employers and workmen, or between workmen and workmen, which is connected with the
employment or non-employment or the terms of employment or with the conditions of labour, of any
person.
Settlement [Sec. 2(p)]. Settlement means a settlement arrived at in the course of conciliation proceeding
and includes a written agreement between an employer and a workman arrived at otherwise than in
the course of conciliation proceeding where such agreement has been signed by the parties thereto in
such manner as may be prescribed and a copy thereof has been sent to an officer authorised by the
Appropriate Government and the Conciliation Officer.
Wages [Sec. 2(rr)]. Wages mean all remuneration capable of being expressed in terms of money, which
would, if the terms of employment, express or implied were fulfilled, be payable to a workman in
respect of his employment or of the work done in such an employment and includes:
(i) such allowances (including dearness allowance) as the workman is for the time being entitled
to;
(ii) the value of any house accommodation, or of supply of light, water, medical attendance or
other amenity or of any service or of any concessional supply of food grains or other articles;
(iii) Any travelling concession. But the following are excluded:
(a) Any bonus.
(b) Any contribution paid or payable to any pension fund or provident fund, or for the benefit
of the workman under any law for the time being in force.
(c) Any gratuity payable on the termination of his service.
2(n) “Public utility service” means -
(i) any railway service or any transport service for the carriage of passengers or goods by air;
(ia) any service in, or in connection with the working of, any major port or dock;
(ii) any section of an industrial establishment, on the working of which the safety of the
establishment or the workmen employed therein depends;
(iii) any postal, telegraph or telephone service;
(iv) any industry which supplies power, light or water to the public;
(v) any system of public conservancy or sanitation;
(vi) any industry specified in the First Schedule which the appropriate Government may, if satisfied
that public emergency or public interest so requires, by notification in the Official Gazette,
declare to be a public utility service for the purposes of this Act, for such period as may be
specified in the notification.
Dispute Settlement Authorities Under the Act

The I.D. Act provides elaborate and effective machinery for the investigation and amicable settlement
of industrial disputes by setting up the various authorities. These are:
1. Works Committee;
2. Conciliation Officer;
3. Conciliation Board;
4. Court of Enquiry;
5. Labour Court;
6. Industrial Tribunal;
7. National Tribunal;
8. Arbitrators;
9. Grievances Settlement Authority.
Dismissal, etc., of an Individual Workman to be Deemed to be an Industrial Dispute.

[Sec. 2A]
Difference in between the workman and his employer connected arising out of following activities
shall be deemed to the industrial dispute.
m Dismissal of workman
m Discharge of workman
m Retrenchment of the workman
m Termination of workman from his services
[Sec. 2A (2)]. Workman having the disputes can make a application to the conciliation officer to settle
the dispute. After the expiry of 3 months of time conciliation officer fails to settle the dispute, workman
can make a direct application to labour courts or tribunals for adjudication.
[Sec. 2A (3)]. Workman should make an application to labour courts or tribunals for adjudication
before the expiry of 3 years from the date of discharge, dismissal, retrenchment or otherwise termination
of service of workman.
Works Committee [Sec. 3]. In the case of an industrial establishment in which 100 or more workmen
are employed, the appropriate Government may require the employer to constitute a ‘Work Committee’.
It consists of equal number of representatives of employers and workmen engaged in the establishment.
The representatives of the workmen shall be chosen from amongst the workmen engaged in the
establishment and in consultation with the registered trade union, if any. Works committee deals with
the workers problem arising day to day in the industrial establishment.
Conciliation Officer [Sec. 4]. The appropriate Government is empowered to appoint any number of
persons, as it thinks fit, to be conciliation officers. The conciliation officer having duty of mediating
and acts as the mediators in between the parties to resolve the dispute.
In the case of public utility services matters like strikes and lockouts the conciliation officer can
initiate the conciliation proceeding and tries to settle the dispute in between the parties.
If the conciliation officer fails to resolve the dispute between the parties, he should report to the
appropriate government. If necessary the dispute shall be referred to the Board, Labour Court, Tribunal
or National Tribunal, by the appropriate government. [Sec. 12 (5)]
Duties of Conciliation Officers [Sec. 12]
m Hold conciliation proceedings relating to Strikes and lockouts procedural matters of public
utility services.
m Investigate the matters of the disputes.
m Conciliation officers shall induce the parties to come to a fair and amicable settlement of the
dispute.
m Duty to send the report of settlement of dispute and memorandum of the settlement signed by
the parties to the dispute to the government or his superior.
m In case of failure of settlement of dispute in between parties, duty to send them to the government
or his superior, report of facts and circumstances relating to the disputes and in his opinion, a
settlement could not be arrived at,
m Duty to send the report to the government or his superior within 14 days from the commencement
of the proceeding. Or within such shorter period as may be fixed by the appropriate Government.
Conciliation Board [Sec. 5] as occasion arises appropriate Government is also authorised to constitute
a Board of conciliation for promoting the settlement of an industrial dispute. It consists of a chairman
who shall be an independent person, and two or four other members. The members appointed shall be
in equal numbers to represent the parties to the dispute. On the dispute being referred to the Board it
is the duty of the Board to do all things as it thinks fit for the purpose of inducing the parties to come
to fair and amicable settlement.
If there are many parties relating to or in the dispute the government may appoint the conciliation
board consisting of the above said members.
According to [Sec. 10 (2)] when parties in the industrial dispute apply to the government to refer
dispute to the Conciliation Board and if government satisfies it shall make the reference to the
Conciliation Board.
Duties of Board [Sec. 13]
m It shall be the duty of the Board to endeavor to bring about a settlement of dispute.
m Investigate the matters relating to the dispute between parties and inducing the parties to come
to a fair and amicable settlement of the dispute.
m In case of failure of settlement of dispute in between parties, duty to send to the government the
report of facts and circumstances relating to the disputes and board opinion, a settlement could
not be arrived at,
m The Board shall submit its report under this section within 2 months of the date on which the
dispute was referred to it or within such shorter period as may be fixed by the appropriate
Government.
Court of Enquiry [Sec. 6] as occasion arises, Government can initiate a Court of Inquiry. This Court of
Inquiry was to find out matters connected with or relevant to an industrial dispute. Where a Court
consists of two or more members, one of them shall be appointed as the chairman.
A Court of Inquiry looks into only matters which are referred to it by Government and submits its
report to the Government ordinarily within certain period from the date of reference.
Adjudication
Labour Court [Sec. 7]. The appropriate Government is empowered to constitute one or more Labour
Courts. Its function is the adjudication of industrial disputes relating to any matter specified in the
Second Schedule.
Matters within the Jurisdiction of Labour Courts. Second Schedule
1. The propriety or legality of an order passed by an employer under the standing orders;
2. The application and interpretation of standing orders;
3. Discharge or dismissal of workmen including reinstatement of, or grant of relief to, workmen
wrongfully dismissed;
4. Withdrawal of any customary concession or privilege;
5. Illegality or otherwise of a strike or lock-out; and
m According to [Sec. 10 (1) (c)] matters specified in THIRD SCHEDULE, dispute not effecting
more than 100 workers can be referred to labour court.
m According to [Sec. 10 (2)] when parties in the industrial dispute apply to the government to
refer dispute to the labour court and if government satisfies it shall make the reference to the
labour courts.
m According to [Sec. 10 (6)] no Labour Court or Tribunal shall have jurisdiction to adjudicate
upon any matter which is under adjudication before the National Tribunal.
m A Labour Court consists of one person only. A person is qualified to be appointed as presiding
officer of a Labour Court, if:
(a) he is, or has been a judge of a High Court, or
(b) he has been a District judge or an Additional District judge for at least three years, or
(c) he has held the office of the chairman or any other member of the Labour Appellate Tribunal
or of any Tribunal for at least two years, or
(d) he has held any judicial office in India for not less than seven years, or
(e) he has been the presiding officer of a Labour Court constituted under any Provincial Act or
State Act for at least five years.
(f) he is or has been a Deputy Chief Labour Commissioner (Central) or Joint Commissioner of
the State Labour Department , having a degree in law and at least 7 years’ experience in the
labour department after having acquired degree in law including three years of experience
as Conciliation Officer.
(g) as the case may be, before being appointed as the presiding officer; or (g) he is an officer of
Indian Legal Service in Grade III with three years’ experience in the grade.”
Industrial Tribunal [Sec. 7A]. The appropriate Government may, by notification in the Official Gazette,
constitute one or more Industrial Tribunals for the adjudication of industrial disputes relating to any
matter, whether specified in the Second Schedule or the Third Schedule and for performing such other
functions as may be assigned to them under this Act.
Second Schedule
1. The propriety or legality of an order passed by an employer under the standing orders;
2. The application and interpretation of standing orders;
3. Discharge or dismissal of workmen including reinstatement of, or grant of relief to, workmen
wrongfully dismissed;
4. Withdrawal of any customary concession or privilege;
5. Illegality or otherwise of a strike or lock-out; and
Third Schedule
1. Wages, including the period and mode of payment;
2. Compensatory and other allowances;
3. Hours of work and rest intervals;
4. Leave with wages and holidays;
5. Bonus, profit sharing, provident fund and gratuity;
6. Shift working otherwise than in accordance with standing orders;
7. Classification by grades;
8. Rules of discipline;
9. Rationalisation;
10. Retrenchment of workmen and closure of establishment; and
11. Any other matter that may be prescribed.
m According to [Sec. 10 (2)] when parties in the industrial dispute apply to the government to
refer dispute to the industrial tribunal and if government satisfies it shall make the reference to
the industrial tribunal.
m According to [Sec. 10 (6)] no Labour Court or Tribunal shall have jurisdiction to adjudicate
upon any matter which is under adjudication before the National Tribunal.
A Tribunal consists of one person only.
For appointment as the presiding officer of a Tribunal
m he is, or has been, a Judge of a High Court; or
m he has, for a period of not less than 3 years, been a District Judge or an Additional District
Judge;
m he is or has been a Deputy Chief Labour Commissioner (Central) or Joint Commissioner of the
State Labour Department, having a degree in law and at 7 seven years’ experience in the labour
department after having acquired degree in law including three years of experience as
Conciliation Officer:
Provided that no such Deputy Chief Labour Commissioner or Joint Labour Commissioner
shall be appointed unless he resigns from the service of the Central Government or State
Government, as the case may he, before being appointed as the presiding officer; or he is an
officer of Indian Legal Service in Grade III with three years’ experience in the grade.”
National Tribunal [Sec. 7 (B)]. The Central Government may, by notification in the Official Gazette,
constitute one or more National Industrial Tribunals. Its main function is the adjudication of industrial
disputes which involve questions of national importance or affecting the interest of two or more States.
According to [Sec. 10 (1-A)] dispute involves any question of national importance or is of such a
nature that industrial establishments situated in more than one State, whether it relates to any matter
specified in the Second Schedule or the Third Schedule, the government will order in writing refer to
National Tribunal for adjudication.
According to [Sec. 10 (2)] when parties in the industrial dispute apply to the government to refer
dispute to the National Tribunal and if government satisfies it shall make the reference to the National
Tribunal.
The Central Government shall appoint a National Tribunal consisting of one person only.
m A person to be appointed a presiding officer of a National Tribunal must be, or
m must have been, a judge of a High Court or
m must have held the office of the chairman or
m any other member of the Labour Appellate Tribunal for a period of not less than two years.
m The Central Government may appoint two persons as assessors to advise the National Tribunal.
Arbitration
Voluntary reference of disputes to arbitration. [Sec. 10 (a)]. An arbitrator is appointed by the
Government. Whether the dispute is before Labour Court, or Industrial Tribunal or National Tribunal,
the parties can go to arbitration by written agreement. The arbitrators conduct the investigation in to
the dispute matters and give arbitration award (final decision or settlement or decree) as for making
reference of an industrial dispute. If an industrial dispute exists or is apprehended and the employer
and the workman agree to refer the dispute to an arbitration, they may refer the dispute to an arbitration.
But such reference shall be made before the dispute has been referred under Sec. 19 to a Labour Court
or Tribunal or National Tribunal by a written agreement. The arbitrator may be appointed single or
more than one in number. The arbitrator or arbitrators shall investigate the dispute and submit to the
appropriate Government the arbitration award signed by the arbitrator or all the arbitrators, as the
case may be.
Grievance Settlement Authority [Sec. 9 (c)]. This Section is incorporated as a new chapter II B of the
Act. As per this Section, the employer in relation to every industrial establishment in which fifty or
more workmen are employed or have been employed on any day in the preceding twelve months, shall
provide for, in accordance with the rules made in that behalf under this Act, a Grievances Settlement
Authority.
[Sec. 9C]. every industrial establishment employing 20 or more workmen shall have one or more
Grievance Redressal Committee for the resolution of disputes arising out of individual grievances.
m The Grievance Redressal Committee shall consist of equal number of members from the employer
and the workmen.
m The chairperson of the Grievance Redressal Committee shall be selected from the employer and
from among the workmen alternatively on rotation basis every year.
m The total number of members of the Grievance Redressal Committee shall not exceed more than
6: Provided that there shall be, as far as practicable, one woman member if the Grievance
Redressal Committee has two members and in case the number of members is more than two,
the number of women members may be increased proportionately.
m The Grievance Redressal Committee may complete its proceedings within forty-five days on
receipt of a written application by or on behalf of the aggrieved party.
m The workman who is aggrieved of the decision of the Grievance Redressal Committee may
prefer an appeal to the employer against the decision of Grievance Redressal Committee and
the employer shall, within one month from the date of receipt of such appeal, dispose off the
same and send a copy of his decision to the workman concerned.
m Nothing contained in this section shall apply to the workmen for whom there is an established
Grievance Redressal Mechanism in the establishment concerned.”
Awards (decree) [Secs. 16, 17, 17A]

m The award of a Labour Court or Tribunal or National Tribunal shall be in writing and shall be
signed by its presiding officer. [Sec. 16(2)].
m Every arbitration award and every award of a Labour Court, Tribunal or National Tribunal
shall, within a period of 30 days from the date of its receipt by the appropriate Government, be
published in such manner as the appropriate Government thinks fit. [Sec. 17(1)].
m The award published shall be final and shall not be called in question by any Court in any
manner whatsoever. [Sec. 17 (2)].
m An award (including an arbitration award) shall become enforceable on the expiry of thirty
days from the date of its publication [Sec. 17A (1)].
m Where the award has been given by a National Tribunal, that it will be inexpedient (not advisable
or not practicable) on public grounds affecting national economy or social justice to give effect
to the whole or any part of the award, the appropriate Government, or as the case may be, the
Central Government may, by notification in the Official Gazette, declare that the award shall
not become enforceable on the expiry of the said period of thirty days. [Sec. 17A (1) (b)].
m The appropriate Government or the Central Government may, within 90 days from the date of
publication of the award under section 17, make an order rejecting or modifying the award, to
legislature of sate or parliament [Sec. 17A (2) ]. And if no pursuance has made, the order become
enforceable after the expiry of 90 days. [Sec. 17A (3)].
m Any award as rejected or modified laid before legislature of state or parliament, shall become
enforceable on the expiry of 15 days from the date on which is so laid. [Sec. 17A (3)].
m Award declared becomes enforceable on the specified date if mentioned, if no date mentioned
award becomes enforceable according to above rules.
Period of Operation of Settlements and Awards. [Sec. 19]

m A settlement shall come into operation on such date as is agreed upon by the parties to the
dispute, and if no date is agreed upon, on the date on which the memorandum of the settlement
is signed by the parties to the dispute.
m An award shall remain in operation for a period of one year from the date on which the award
becomes enforceable under section 17A: Provided that the appropriate Government may reduce
the said period and fix such period as it thinks fit :
n the appropriate Government may, before the expiry of the said period, extend the period of
operation by any period not exceeding one year at a time as it thinks fit, so however, that the
total period of operation of any award does not exceed three years from the date on which
it came into operation.
n E.g: If the court orders the employer to reinstate the workman in case of unreasonable
removal or discharge , the employer is bind over for one year or in some cases, the period
specified by the courts.
Unfair Labour Practices - Fifth Schedule

I . On the part of employers and trade unions of employers
1. To interfere with, restrain from, or coerce, workmen in the exercise of their right to organise,
form, join or assist a trade union or to engage in concerted activities for the purposes of collective
bargaining or other mutual aid or protection, that is to say :
(a) threatening workmen with discharge or dismissal, if they join a trade union;
(b) threatening a lock-out or closure, if a trade union is organised; and
(c) granting wage increase to workmen at crucial periods of trade union organisation, with a
view to undermining the efforts of the trade union at organisation.
2. To dominate, interfere with or contribute support, financial or otherwise, to any trade union,
that is to say :
(a) an employer taking an active interest in organising a trade, union of his workmen; and
(b) an employer showing partiality or granting favour to one of several trade unions attempting
to organise his workmen or to its members, where such a trade union is not a recognised
trade union.
3. To establish employer-sponsored trade unions of workmen.
4. To encourage or discourage membership in any trade union by discriminating against any
workman, that is to say :
(a) discharging or punishing a workman, because he urged other workmen to join or organise
a trade union;
(b) discharging or dismissing a workman for taking part in any strike (not being a strike
which it deemed to be an illegal strike under this Act);
(c) changing seniority rating of workmen because of trade union activities;
(d) refusing to promote workmen to higher posts on account of their trade union activities;
(e) giving unmerited promotions to certain workmen with a view to creating discord amongst
other workmen, or to undermine the strength of their trade union;
(f) discharging office bearers or active members of the trade union on account of their trade
union activities.
5. To discharge or dismiss workmen :
(a) by way of victimisation;
(b) not in good faith, but in the colourable exercise of the employer’s rights;
(c) by falsely implicating a workman in a criminal case on false evidence or on concocted
evidence;
(d) for patently false reasons;
(e) on untrue or trumpet up allegations of absence without leave;
(f) in utter disregard of the principles of natural justice in the conduct of domestic enquiry or
with undue haste;
(g) for misconduct of a minor or technical character, without having any regard to the nature
of the particular misconduct or the past record of service of the workman, thereby leading
to a disproportionate punishment.
6. To abolish the work of a regular nature being done by workmen, and to give such work to
contractors as a measure of breaking a strike.
7. To transfer a workman mala fide from one place to another, under the guise of following
management policy.
8. To insist upon individual workmen, who are on a legal strike to sign a good conduct bond, as
a precondition to allowing them to resume work.
9. To show favouritis or partiality to one set of workers regardless of merit.
10. To employ workmen as “badlis” casuals or temporaries and to continue them as such for years,
with the object of depriving them of the status and privileges of permanent workmen.
11. To discharge or discriminate against any workman for filling charges or testifying against an
employer in any enquiry or proceeding relating to any industrial dispute.
12. To recruit workmen during a strike which is not an illegal strike.
13. Failure to implement award, settlement or agreement.
14. To indulge in acts of force or violence.
15. To refuse to bargain collectively, in good faith with the recognised trade unions.
16. Proposing or continuing a lock-out deemed to be illegal under this Act.
II. On the part of workmen and trade unions of workmen
1. To advise or actively support or instigate any strike deemed to be illegal under this Act.
2. To coerce workmen in the exercise of their right to self-organisation or to join a trade union or
refrain from joining any trade union, that is to say :
(a) for a trade union or its members to picketing in such a manner that non-striking workmen
are physically debarred from entering the work places;
(b) to indulge in acts of force or violence or to hold out threats of intimidation in connection
with a strike against non-striking workmen or against managerial staff.
3. For a recognised union to refuse to bargain collectively in good faith with the employer.
4. To indulge in coercive activities against certification of bargaining representative.
5. To stage, encourage or instigate such forms of coercive actions as willful “go slow”, squatting
on the work premises after working hours or “gherao” of any of the members of the managerial
or other staff.
6. To stage demonstrations at the residences of the employers or the managerial staff members.
7. To incite or indulge in willful damage to employer’s property connected with the industry.
8. To indulge in acts of force or violence or to hold out threats of intimidation against any workman
with a view to prevent him from attending work.
Lay-off and Retrenchment

Lay-off [Sec. 2(kkk)]. Lay-off means “the failure, refusal or inability of an employer on account of
shortage of coal, power or raw materials or the accumulation of stocks or the breakdown of machinery
or for any other reason to give employment to a workman whose name is borne on the muster rolls of
his industrial establishment and who has not been retrenched”.
Retrenchment [Sec. 2(oo)]. Retrenchment means the termination by the employer of the service of a
workman for any reason whatsoever otherwise than as a punishment indicated by way of disciplinary
action.
Rights of Workman Laid Off for Compensation [Sec. 25C]
A workman who is laid off is entitled to compensation only if he complies with the following conditions:
(i) He must not be a badli or a casual workman.
“Badli workman” means a workman who is employed in an industrial establishment in the
place of another workman whose name is borne on the muster rolls of the establishment.
(ii) His name must be borne on the muster rolls of the industrial establishment.
(iii) He must have completed at least one year of continuous service.
(iv) A worker is entitled to lay-off compensation for the period of his lay off other than for weekly
holidays which may intervene.
(v) The rate of compensation must be equal to 50% of the total of the basic wage and dearness
allowance that might have been payable to him.
(vi) No compensation can be claimed for more than forty-five days during the period of twelve
months.
Workmen Laid Off not Entitled to Compensation [Sec. 25E]
No compensation shall be paid to a workman who has been laid off:
(i) if he refuses to accept any alternative employment in the same or any other establishment
belonging to the same employer situated in the same town or village or within a radius of five
miles and it does not require any special skill or previous experience, provided the same wages
are offered,
(ii) if he does not present himself for work at the appointed time during normal working hours at
least once a day,
(iii) if lay off in the consequence of strike or slowing down of production by the workers in another
part of the establishment.
Difference Between the Lay-off and Laid-Off
Laid-off Lay-off
A person who is temporarily stopped for Temporary stoppage of the running factory by the
the work being attended owner of the establishment or factory.
A company which has declared of lay-off, Lay-off is implemented due to shortage of the raw
worker shall be laid-off from the work material, break-down of machinery etc.
The laid-off compensation shall be payable to After 45 days of lay-off, management can retrench
worker for 45 day only worker.
Close Down any Undertaking [Sec. 25FFA]

m An employer who intends to close down an undertaking shall serve, at least 60 days before the
date on which the intended closure.
m A notice, is required to give to the appropriate Government stating clearly the reasons for the
intended closure of the undertaking.
m Provided that nothing in this section shall apply to – An undertaking in which less than 50
workmen are employed, or less than 50 workmen were employed on an average per working
day in the preceding twelve months. An undertaking set up for the construction of buildings,
bridges, roads, canals, dams or for other construction work or project.
Retrenchment of Worker Section. 25C
If lay-off exceeds 45 days only the management or owner can retrench the workers by following below
said rules.
The reason for compelling and restricting 45 days period of lay-off before doing retrenchment
of employee is.
Lay-off is considered to be a unique situation created by reasons beyond the control of employer,
it is supposed to be a temporary situation contingent on the grounds mentioned in the definition of
layoffs in the section 2(kkk). However if this contingency is prolonging beyond a reasonable time, say
45 days, it will be matter of serious concern both to the employer and to employees because both of
them put to a loss of 50% wages by employees and loss of earnings by employer due to temporary
stoppage of work, which employer would have earned if there was no laid-off for the reasons mentioned
in section 2 (kkk). In the case if an employer is not able to restore the situation which compelled him to
lay off employees, he can retrench employees after the expiry of 40 days in stuff continuing layoffs.
Procedure for retrenchment [Sec. 25G]
LIFO (Last in First Out) method should be followed while retrenchment of workers, a workers who has
joined last shall be retrenched first. Further explanation junior should be retrenched first.
Conditions precedent to retrenchment of workmen [Sec. 25F]
Worker who has completed one year of service and continuing in service must be retrenched by the
owner by following rules.
m One month notice of retrenchment should be given to the worker by the owner.
m Notice should include the reasons for the retrenchment of the concerned worker.
Retrenchment Compensation [Sec. 25F (b)]

Retrenchment worker can claim compensation from the worker under following procedure 15 days of
salary drawn for every year of service completed E.g.: last drawn salary of worker = 10000/-
Number of years of service = 5 years
So, retrenchment compensation calculated as follows
Salary drawn is = 10000/- , for 15 days salary is half of the amount = 5000/- × number of service
years = 5. = 25000/- is the retrenchment compensation.
Re-employment of Retrenched Workmen [Sec. 25H]
This Section provides priority for a retrenched workman in the case of reemployment. In case the
employer proposes to re-employ any person, he is under an obligation to offer first priority to the
persons who have been retrenched.
During Pendency of Proceedings [Sec. 33]
During the pendency of any conciliation proceeding before a conciliation officer or a Board or of any
proceeding before an arbitrator or a Labour Court or Tribunal or National Tribunal in respect of an
industrial dispute, employer should not do the following :
m For any misconduct connected with the dispute, discharge or punish, whether by dismissal or
otherwise, any workmen concerned in such dispute.
m Alter the term of contract according to standing orders.
m Take action against the protected workman. If employer wants to take above actions against the
employee, employer should makes an application to a conciliation officer, Board, an arbitrator,
a Labour Court, Tribunal or National Tribunal.
Penalties
Sec Reasons Punishment
25U unfair labour practice punishable with imprisonment for a term which
may extend to 6 months or with fine which may
extend to 1000/- rupees or with both.
26 Illegal Strikes punishable with imprisonment for a term which
may extend to one month, or with fine which may
extend to 50/- rupees, or with both.
Sec Reasons Punishment

26 Illegal Lock-Outs punishable with imprisonment for a term which
may extend to one month, or with fine which may
extend to one 1000/- rupees, or with both.
27 Any person who instigates or incites punishable with imprisonment for a term which
others to take part in, or otherwise acts may extend to 6 months, or with fine which may
in furtherance of, a strike or lock-out extend to one 1000/- rupees, or with both.
which is illegal under this Act
28 Giving Financial Aid to Illegal Strikes punishable with imprisonment for a term which
and Lock-Outs may extend to 6 months, or with fine which may
30 Disclosing Confidential Information Punishable with imprisonment for a term which
may extend to 6 months, or with fine which may
30A Closure of establishment Without Notice punishable with imprisonment for a term which
31 contravenes the provisions of section 33 Punishable with imprisonment for a term which
MINIMUM WAGES ACT, 1948

In this unit we are going to discuss on “Minimum wages Act 1948”. According to the Act, the Act
enables the Central and State Government to fix minimum rates of wages payable to employees in a
selected number of ‘sweated’ industries. There are certain provisions under the Act. You will get a fair
idea on the important provisions of the Act while going through this unit.
Object and Scope

The main objective of this Act, is fixing a minimum rate of wages in number of industries where the
labours are not organised and sweated labours are most dominant. The Act aims at preventing the
exploitation of workers or labours in some industries, for which, the appropriate Government is
empowered to take steps to prescribe minimum rates of wages in certain employment.
The Minimum Wages Fixing Machinery convention was held at Geneva in the year 1928 by ILO
with reference to remuneration of workers in those industries where the, level of wages was substantially
low and the labour was vulnerable to exploitation, being not well organised and having less effective
bargaining power.
This act may be called the Minimum Wages Act 1948. The Act enables the Central and State
Government to fix minimum rates of wages payable to employees in selected number of ’sweated’
industries. The act extends to the whole of India.
Definitions
Following are some of the definitions and sections under the Act:
1. Adolescent [2. (a)]. “adolescent” means a person who has completed his fourteenth year of age
but has not completed his eighteenth year.
2. Adult [2. (aa)]. “adult” means a person who has completed his eighteenth year of age.
3. Appropriate government [2. (b)]. “appropriate government” means:
(i) in relation to any scheduled employment carried on by or under the authority of the Central
Government or a railway administration or in relation to a mine oil field or major port or
any corporation established by a Central Act the Central Government and
(ii) in relation to any other scheduled employment the State Government;
4. Child [2. (bb)]. “child” means a person who has not completed his fourteenth year of age.
5. Competent authority [2. (c)]. “competent authority” means the authority appointed by the
appropriate government by notification in its Official Gazette to ascertain from time to time the
cost of living index number applicable to the employees employed in the scheduled employments
specified in such notification.
6. Cost of living index number [2. (d)]. “cost of living index number” in relation to employees in
any scheduled employment in respect of which minimum rates of wages have been fixed
means the index number ascertained and declared by the competent authority by notification
in the Official Gazette to be the cost of living index number applicable to employee in such
employment.
7. Employer [2. (e)]. “employer” means any person who employs whether directly or through
another person or whether on behalf of himself or any other person one or more employees in
any scheduled employment in respect of which minimum rates of wages have been fixed under
this Act and includes except in sub-section (3) of section 26:
i. in a factory where there is carried on any scheduled employment in respect of which
minimum rates of wages have been fixed under this Act any person named under clause (f)
of sub-section (1) of section 7 of the Factories Act 1948 (63 of 1948) as manager of the
factory;
ii. in any scheduled employment under the control of any government in India in respect of
which minimum rates of wages have been fixed under this Act the person or authority
appointed by such government for the supervision and control of employees or where no
person or authority is so appointed the head of the department;
iii. in any scheduled employment under any local authority in respect of which minimum
rates of wages have been fixed under this Act the persons appointed by such authority for
the supervision and control of employees or where no person is so appointed the chief
executive officer of the local authority;
iv. in any other case where there is carried on any scheduled employment in respect of which
minimum rates of wages have been fixed under this Act any person responsible to the
owner for the supervision and control of the employees or for the payment of wages;
8. Prescribed [Sec.2 (f)]. “prescribed” means prescribed by rules made under this Act.
9. Schedule employment [Sec.2 (f)]. “schedule employment” means an employment specified in
the Schedule or any process or branch of work forming part of such employment
10. Wages [Sec.2(h)] : “wages” means all remuneration capable of being expressed in terms of
money which would if the terms of money which would be payable to a person employed in
respect of his employment or of work done in such employment and includes house rent
allowance but does not include:
i. the value of:
(a) any house accommodation supply of light water medical attendance or
(b) any other amenity or any service excluded by general or special order of the appropriate
government;
ii. any contribution paid by the employer to any person fund or provident fund or under any
scheme of social insurance;
iii. any travelling allowance or the value of any travelling concession;
iv. any sum paid to the person employed to defray special expenses entailed on him by the
v. any gratuity payable on discharge;
11. Employee [Sec.2 (i)]. “employee” means any person who is employed for hire or reward to do
any work skilled or unskilled manual or clerical in a scheduled employment in respect of
which minimum rates of wages have been fixed; and includes an out-worker to whom any
articles or materials are given out by another person to be made up cleaned washed altered
ornamented finished repaired adapted or otherwise processed for sale for the purposes of the
trade or business of that other person where the process is to be carried out either in the home
of the out-worker or in some other premises not being premises under the control and
management of that other person; and also includes an employee declared to be an employee
by the appropriate government; but does not include any member of the Armed Forces of the
Union.
Fixation and Revision of Wages (Sec. 3 to Sec. 5)

The fixation and revision of wages falls under the Sec. 3, Sec. 4 and Sec. 5. Sec. 3 deals with, the
appropriate government fix the minimum wages that is payable to the employees in any scheduled
employment. The Sec. 4 describes on the contents of minimum wages. Sec. 5 lays down the procedure
for fixing and revising the minimum rates of wages.
Minimum Number of Employees. The appropriate government can forbear from fixing minimum
rate of wages of any scheduled employment in which there are less than 1,000 employees in the
organisation. But if the appropriate government find after an inquiry that there are more than 1,000
employees in any scheduled employment, it shall fix the minimum rate of wages payable as soon as
after the finding.
1. Fixing of minimum rates of wages (Sec. 3). Under Sec. 3, the appropriate Government fix the
minimum rate of wages. The appropriate government :
a. shall fix the minimum rate of wages payable to the employees employed in the employment
specified in Part I or part II of the schedule (the schedule is reproduced at the end of the
unit) and in an employment to either by notification in official Gazette.
b. the employees employed in the employment specified in Part II of the schedule ( the schedule
is reproduced at the end of the unit), fix the minimum rate of wage for apart of the state or
for any specified class, instead of fixing the minimum rate of wages for the whole state.
c. shall review the minimum rate of wages so fixed and revise the same, at such intervals not
exceeding 5 years.
Minimum rates. The Appropriate Government may fix:
a. minimum rate of wages for time work (hereinafter referred to as “a minimum time rate”);
b. minimum rate of wages for piece work (hereinafter referred to as “a minimum piece rate”);
c. a minimum rate of remuneration to apply in the case of employees employed on piece work
for the purpose of securing to such employees a minimum rate of wages on a time work
basis (hereinafter referred to as “a guaranteed time rate”);
d. a minimum rate (whether time rate or piece rate) to apply in substitution for the minimum
rate which would otherwise be applicable in respect of overtime work done by employees
(hereinafter referred to as “over time rate”).
Different minimum rates. The different minimum rates of wages may be fixed for:
a. different scheduled employments;
b. different classes of work in the scheduled employment;
c. adults, adolescents, children and apprentice;
2. Minimum Rate of Wages (Sec. 4). The appropriate governments fix or revise minimum rate of
wages may consists of-
a. a basic rate of wages and special allowance
b. a basic rate of wages with or with the cost of living allowance
c. an all inclusive rate allowing for the basic rate, the cost of living allowance and the cash
value of the concessions
3. Procedure for fixing and revising minimum wages (Sec. 5). There are two separate modes of
procedure for fixing and revising minimum wages under Sec. 5. The main object of both the
procedures is to enable the government to reach a balanced conclusion with regard to fixation
of a minimum wage. The two modes are as follows:
a. Mode one. Appointment of Committee: The appropriate government should appoint as
many committees or sub-committees as to hold necessary inquires for fixation of minimum
rates of wages.
b. Mode two. Publication of proposals in the official gazette: The appropriate government
shall by notification in the official Gazette, publish its proposals for the information of the
person who is likely to be affected by the fixation of minimum rates of wages.
Safeguards Payment of Minimum Wages (Sec. 11 to 18)

The safeguards payments of minimum wages falls under the sec. 11 to sec. 18. The section are as
follows:
1. Wages in kind (Sec. 11). The minimum wages under the Act shall be paid in cash. But where it
has been custom to pay wages wholly or partly in kind, the appropriate Government may, by
notification in the official Gazette, authorize the payment of minimum wages either partly or
wholly in kind.
The cash value of wages in kind and of concessions in respect of supplies of any essential
commodities at concessional rates shall be estimated in the prescribed manner.
2. Payment of minimum rate of wages (Sec. 12). In respect of any scheduled employment where
minimum wages have been fixed, the employer shall pay each and every employee wages at a
rate not less than the minimum rate of wages fixed for that class of employees. The wages shall
be paid without any deductions except as prescribed.
3. Fixing hours for a normal working day, etc. (Sec. 13). In respect of any scheduled employment
where minimum wages have been fixed, the appropriate government may:
a. fix the numbers of hour of work which is the normal working day inclusive of one or more
intervals;
b. provide a day of rest in every period of 7 days and for payment of remuneration in respect
of such day of rest;
c. provide for payment for work on a day of rest at a rate not less than the overtime rate.
4. Rates of overtime (Sec. 14). Where employee, whose minimum rate of wages is fixed under this
Act, by the hour, by the day or by any longer wage-period as prescribed, works overtime, the
employer shall pay him for every hour or for part of an hour so worked in excess, wages at the
rates fixed for overtime work under the Act or under any law of the appropriate Government in
force, whichever is higher.
let us know
The provisions of the minimum Wages Act, 1948 shall not prejudice the operation of the
provision of sec. 59 of the Factories Act, 1948 in any case where those provisions are applicable
Sec. 59 of the Factories Act, 1948 provides that where a worker works in factory for more than
9 hours in any day or for more than 48 hours in any week, he shall, in respect of overtime work,
be entitled to wages at the rate of twice his ordinary rate of wages.
5. Wages of worker who works for less than the normal working day (Sec. 15). Sometime it may
happen that any employee whose minimum rate of wages has been fixed by the day may work
on any day on which he has employed the period less than the required number of hours
constituting a normal working day. In that case he is entitled to receive wages for the work done
by him on that day if he had worked on a full normal working day except:
(i) if his failure of work is caused by his unwillingness to work and not by omission of the
employer to provide him with work;
(ii) in such other cases and circumstances as may be prescribed.
6. Wages for 2 or more classes of work (Sec. 16). Where an employee does 2 or more classes of
work to each of which a different minimum rate of wages is applicable, the employer shall pay
to such employee in respect of the time respectively occupied in each such class of work, wages
at not less than the minimum rate in force in respect of each such class.
7. Minimum time rate wages for piece work (Sec. 17). Where an employee is employed on piece
work for which minimum time rate and not a minimum piece rate has been fixed under the Act,
the employer shall pay such employee wages at not less than the minimum time rate.
8. Maintenance of registers and records (Sec. 18). In an organisation who falls under this Act
shall maintain registers and records giving the detail information of the employees, the work
performed by them, the wages paid to them and such other particulars and in such form as may
be prescribed.
Enforcement of the Act (Sec. 19 to Sec. 20)

The Appropriate Government can appoint by notification in the Official Gazette an inspector (section
19). The inspector can within his local limit
(a) enter at all reasonable hours, with such assistant ( if any ) or any local or other public authority,
as think fit any premises or place of premises where employees are employed or for the purpose
of examining any register, record of wages or notices required to be kept;
(b) examine any person he find in such premises or depending on any reasonable causes believe
is an employee or an employee who given out his work from therein;
(c) require any person giving out work or any out-workers to give any information, which in his
power to give with respect to the names and addresses of the persons from or to whom the work
is given out or received and with respect to the payment to be made for the work.
(d) seize or takes copies of the register, record of wages or notices in respect of any offence under
the Act.
(e) exercise such other powers as may be prescribed.
Within the meaning of section 175 and 176 under Indian Penal Code, any document or information
given by the inspector shall be deemed to be legally bound. The inspector shall be deemed to be a
public servant within the meaning of Indian Penal Code.
The employee can claims for minimum wages (under section 20):
1. The Appropriate Government may by notification in the Official Gazette, appoint :
a. any Commissioner for Workmen’s Compensation, or
b. any officer of the Central Government exercising functions as a Labour Commissioner for
any region,
c. any officer of the State Government not below the rank of the Labour Commissioner or, any
other officer.
Such person should have an experience as a judge of a Civil Court or as a stipendiary Magistrate
to hear or decide any claims arising out of the payment of less than the minimum rates of
wages.
2. Again for any claims of the employees under section 3, the employees himself or any legal
practitioner or any official of a registered trade union or inspector can apply to such Authority
and the application shall present to them within six month from the date on which the minimum
wages became payable.
3. After the necessary enquiry, the Authority shall hear the applicant and the employer and give
them opportunity of being heard. If the wages is paid of less than the minimum rates of wages,
than the Authority may asked to the employer to pay exceed the actual amount which has to
pay in addition with compensation not exceeding ten times the amount of such excess for such
act.
In any other case, if the payment become due than the employee will get together with the
payment of such compensation as the Authority may think fit not exceeding ten rupees.
4. If under this section the Authority hearing any claim and found that it was either malicious or
vexatious, it may direct penalty not exceeding fifty rupees to the employer by the person
presenting the application.
5. Under this section if any amount is directed to be paid than as if it were a fine imposed by the
Authority as a Magistrate or if he is not Magistrate than to such person whom the Authority
makes application in this behalf as if were a fine imposed by such Magistrate.
6. Every direction is final under this section.
7. Every Authority appointed shall have all powers of a Civil Court under the Code of Civil
Procedure, 1908.
THE PAYMENT OF WAGES ACT, 1936

Object of the Act
The Payment of Wages Act regulates the payment of wages to certain classes of persons employed in
industry and its importance cannot be under-estimated. The Act guarantees payment of wages on
time and without any deductions except those authorised under the Act. The Act provides for the
responsibility for payment of wages, fixation of wage period, time and mode of payment of wages,
permissible deduction as also casts upon the employer a duty to seek the approval of the Government
for the acts and permission for which fines may be imposed by him and also sealing of the fines, and
also for a machinery to hear and decide complaints regarding the deduction from wages or in delay in
payment of wages, penalty for malicious and vexatious claims. The Act does not apply to persons
whose wage is Rs. 10,000 or more per month. The Act also provides to the effect that a worker cannot
contract out of any right conferred upon him under the Act.
Definitions
“employed person” [sec. 2 (i)] includes the legal representative of a deceased employed person;
“employer” [sec. 2 (ia)] includes the legal representative of a deceased employer;
“industrial or other establishment” [sec. 2 (i1)] means any :
(a) tramway service or motor transport service engaged in carrying passengers or goods or both by
road for hire or reward;
(aa) air transport service other than such service belonging to or exclusively employed in the military
naval or air forces of the Union or the Civil Aviation Department of the Government of India;
(b) Dock wharf or jetty;
(c) inland vessel mechanically propelled;
(d) mine quarry or oil-field;
(e) plantation;
(f) workshop or other establishment in which articles are produced adapted or manufactured
with a view to their use transport or sale;
(g) establishment in which any work relating to the construction development or maintenance of
buildings roads bridges or canals or relating to operations connected with navigation irrigation
or to the supply of water or relating to the generation transmission and distribution of electricity
or any other form of power is being carried on;
(h) any other establishment or class of establishments which the Central Government or a State
Government may having regard to the nature thereof the need for protection of persons employed
therein and other relevant circumstances specify by notification in the Official Gazette.
“Wages” [sec. 2 (iv)] means all remuneration (whether by way of salary allowances or otherwise)
expressed in terms of money or capable of being so expressed which would if the terms of employment
express or implied were fulfilled by payable to a person employed in respect of his employment or of
work done in such employment and includes :
(a) any remuneration payable under any award or settlement between the parties or order of a
court;
(b) any remuneration to which the person employed is entitled in respect of overtime work or
holidays or any leave period;
(c) any additional remuneration payable under the terms of employment (whether called a bonus
or by any other name);
(d) any sum which by reason of the termination of employment of the person employed is payable
under any law contract or instrument which provides for the payment of such sum whether
with or without deductions but does not provide for the time within which the payment is to be
made;
(e) any sum to which the person employed is entitled under any scheme framed under any law for
the time being in force, but does not include :
(1) any bonus (whether under a scheme of profit sharing or otherwise) which does not form
part of the remuneration payable under the terms of employment or which is not payable
under any award or settlement between the parties or order of a court;
(2) the value of any house-accommodation or of the supply of light water medical attendance
or other amenity or of any service excluded from the computation of wages by a general or
special order of the State Government;
(3) any contribution paid by the employer to any pension or provident fund and the interest
which may have accrued thereon;
(4) any travelling allowance or the value of any travelling concession;
(5) any sum paid to the employed person to defray special expenses entailed on him by the
(6) any gratuity payable on the termination of employment in cases other than those specified
in sub-clause (d).
Responsibility for payment of wages [Section 3]
Every employer shall be responsible for the payment to persons employed by him of all wages required
to be paid.
m In the case of the factory, manager of that factory shall be liable to pay the wages to employees
employed by him.
m In the case of industrial or other establishments, persons responsibility of supervision shall be
liable for the payment of the wage to employees employed by him.
m In the case of railways, a person nominated by the railway administration for specified area
shall be liable for the payment of the wage to the employees.
m In the case of contractor, a person designated by such contractor who is directly under his
charge shall be liable for the payment of the wage to the employees. If he fails to pay wages to
employees, person who employed the employees shall be liable for the payment of the wages .
[Sec. 5 (3)]. With the consultation of the central government, state government having power and can
change the person responsible for the payment of the wages in Railways, or person responsible to
daily-rated workers in the Public Works Department of the Central Government or the State
Government.
Fixation of wage-periods. [Section 4]
Every person responsible for the payment of wages under section 3 shall fix periods in respect of
which such wages shall be payable. No wage-period shall exceed one month. That means wage can be
paid on daily, weekly, fortnightly (for every 15 days) and monthly only. Wage period for payment of
wages to employees by employer should not exceed 30 days i.e. one month according to this act.
But wages cannot be paid for quarterly, half yearly or once in a year.
Time of Payment of Wages. [Section 5]
m In railway factory or industrial or other establishment, if there are less than 1000 employees,
wages of employees should be paid before the expiry of the 7th day after the last day of the wage
period. (Ex.: wages should be paid on starting of present month within 7 days i.e., before 7th
date if wage is paid on 1st in previous month )
m In other railway factory or industrial or other establishment, if there are more than 1000
employees, wages of employees should be paid before the expiry of the 10th day after the last
day of the wage period. (Ex.: wages should be paid on starting of present month within 10 days
i.e. before 10th date if wage is paid on 1st in previous month )
m For employees of port area, mines, wharf or jetty, wages of employees should be paid before the
expiry of the 7th day after the last day of the wage period.
[Sec. 5 (2)]. If the employee is terminated or removed for the employment by the employer the wage of
that employee should be paid within 2 days from the day on which he was removed or terminated.
[Sec. 5 (4)]. Except the payment of wage of the terminated employee, all the wages of the employees
should be paid by their employer on the working day only.
Wages to be Paid in Current Coin or Currency Notes. All the wages of the employees must be paid in
form of currently using currency notes or coins or in both forms. Currently using currency notes are
1000/-, 500/-, 100/-, 50/-, 20/-, 10/-, 5/- and currently using coins are 10/-, 5/-, 2/-, 1/-.
Deductions which may be Made from Wages. At the time of payment of the wage to employees,
employer should make deductions according to this act only. Employer should not make deductions
as he like. Every amount paid by the employee to his employer is called as deductions.
The following are not called as the deduction
m Stoppage of the increment of employee.
m Stoppage of the promotion of the employee.
m Stoppage of the incentive lack of performance by employee.
m Demotion of the employee
m Suspension of the employee.
The above said actions taken by the employer should have good and sufficient cause.
Deductions [Sec. 7 (2)]
Deduction made by the employer should be made in accordance with this act only. The following are
said to be the deductions and which are acceptable according to this act.
m Fines,
m Deductions for absence from duty,
m Deductions for damage to or loss of goods made by the employee due to his negligence,
m Deductions for house-accommodation supplied by the employer or by government or any
housing board,
m Deductions for such amenities and services supplied by the employer as the State Government
or any officer,
m Deductions for recovery of advances connected with the excess payments or advance payments
of wages,
m Deductions for recovery of loans made from welfare labour fund,
m Deductions for recovery of loans granted for house-building or other purposes,
m Deductions of income-tax payable by the employed person,
m Deductions by order of a court,
m Deduction for payment of provident fund,
m Deductions for payments to co-operative societies approved by the State Government,
m Deductions for payments to a scheme of insurance maintained by the Indian Post Office
m Deductions made if any payment of any premium on his life insurance policy to the Life
Insurance Corporation with the acceptance of employee,
m Deduction made if any contribution made as fund to trade union with the acceptance of
employee,
m Deductions, for payment of insurance premia on Fidelity Guarantee Bonds with the acceptance
of employee,
m Deductions for recovery of losses sustained by a railway administration on account of
acceptance by the employee of fake currency,
m Deductions for recovery of losses sustained by a railway administration on account of failure
by the employee in collections of fares and charges,
m Deduction made if any contribution to the Prime Minister’s National Relief Fund with the
acceptance of employee,
m Deductions for contributions to any insurance scheme framed by the Central Government for
the benefit of its employees with the acceptance of employee,
Limit for Deductions. [Sec. 7 (3)]
The total amount of deductions from wages of employees should not exceed 50%, but only in case of
payments to co-operative societies, deduction from wages of employee can be made up to 75%.
Fines. [Sec. 8]
Fine should be imposed by the employer on employee with the approval of the state government or
prescribed authority. Employer should follow the rules mentioned below for and before imposing of
fine on the employee.
1. Notice board of fines on employee should be displayed in the work premises and it should
contain activities that should not be made by employee.
2. Fine should not be imposed on the employee until he gives the explanation and cause for the
act or omission he made.
3. Total amount of fine should not exceed 3% of his wage.
4. Fine should not be imposed on any employee who is under the age of 15 years.
5. Fine should be imposed for one time only on the wage of the employee for the act or omission he
made.
6. Fines should not be recovered in the way of instalments from the employee.
7. Fine should be recovered within 60 days from the date on which fine were imposed.
8. Fine should be imposed on day act or omission made by the employee.
9. All fines collected from the employee should be credited to common fund and utilise for the
benefit of the employees.
Deductions for Absence from Duty. [Sec. 9]
m Deductions can be made by the employer for the absence of duty by the employee for one day or
for any period.
m The amount deducted for absence from the duty should not exceed a sum which bears the same
relationship to the wage payable in respect of the wage-period as this period of absence does to
such wage-period. (Example: if the salary of an employee is 6000/- per month and he was
absent for duty for one month. Deduction from the salary for absence of duty should not exceed
6000/-)
m Employee present for the work place and refuses to work without proper reason shall be deemed
to be absent from duty.
m If 10 or more persons together absent for the duty without any notice and without reasonable
cause, employer can make 8 day of wages as deduction from their wage.
Deductions for Damage or Loss. [Sec. 10]
Employer should give an opportunity to the employee to explain the reason and cause for the damage
or loss happened and deductions made by employer from the employee wage should not exceed the
value or amount of damage or loss made by the employee.
[Sec. 10 (2)]. All such deduction and all realisations thereof shall be recorded in a register to be kept by
the person responsible for the payment of wages under section 3 in such form as may be prescribed.
Deductions for Services Rendered. [Sec. 11]
House-accommodation amenity or service provided by the employer should be accepted by the
employee, than only the employer can make deduction from the wage of the employee. Deduction
should not exceed an amount equivalent to the value of the house-accommodation amenity or service
supplied.
Deductions for Recovery of Advances. [Sec. 12]
In case of advance paid to the employees by the employer before employment began, such advance
should be recovered by the employer from the first payment of the wages /salary to the employee. But
employer should not recover the advance given for the travelling expense for the employee.
Deductions for Recovery of Loans. [Sec. 12A]
Deductions for recovery of loans granted for house-building or other purposes shall be subject to any
rules made by the State Government regulating the extent to which such loans may be granted and the
rate of interest payable thereon.
Deductions for Payments to Co-operative Societies and Insurance Schemes. [Sec. 13]
Deductions for payments to co-operative societies or deductions for payments to scheme of insurance
maintained by the Indian Post Office or with employee acceptance deductions made for payment of
any premium on his life insurance policy to the Life Insurance Corporation shall be subject to such
conditions as the State Government may impose.
Maintenance of Registers and Records. [Sec. 13A]
Every employer should maintain such registers and records giving such particulars of persons employed
by him, the work performed by them, the wages paid to them, the deductions made from their wages,
the receipts given by them and such other particulars and in such form as may be prescribed.
Every register and record required to be maintained and preserved for a period of three years after
the date of the last entry made therein. It means for every transaction made within employer and
employee should have 3 years of record.
Inspectors. [Sec. 14]
The state government may appoint an inspector for purpose of this act. Every Inspector shall be
deemed to be a public servant within the meaning of the Indian Penal Code, 1860 [Sec. 14(5)]. The
inspector of this act is having powers mentioned below
m Inspector can make enquiry and examination whether the employers are properly obeying the
rules mentioned under this act.
m Inspector with such assistance, if any, as he thinks fit, enter, inspect and search any premises
of any railway, factory or industrial or other establishment at any reasonable time for the
purpose of carrying out the objects of this Act.
m Inspector can supervise the payment of wages to persons employed upon any railway or in any
factory or industrial or other establishment.
m Seize or take copies of such registers or documents or portions thereof as he may consider
relevant in respect of an offence under this Act which he has reason to believe has been committed
by an employer.
Facilities to be afforded to Inspectors. [Sec. 14A]
Every employer shall afford an Inspector all reasonable facilities for making any entry, inspection,
supervision, examination or inquiry under this Act.
Claims Arising out of Deductions from Wages or Delay in Payment of Wages and Penalty for
Malicious or Vexatious Claims. [Sec. 15] (2005 amendments)
To hear and decide all claims arising out of deductions from the wages, or delay in payment of the
wages, of persons employed or paid, including all matters, incidental to such claims, there will be a
officer mentioned below appointed by the appropriate government.
(a) any Commissioner for Workmen’s Compensation; or
(b) any officer of the Central Government exercising functions as –
(i) Regional Labour Commissioner; or
(ii) Assistant Labour Commissioner with at least two years’ experience; or
(c) any officer of the State Government not below the rank of Assistant Labour Commissioner with
at least two years’ experience; or
(d) a presiding officer of any Labour Court or Industrial Tribunal, constituted under the Industrial
Disputes Act, 1947 (14 of 1947) or under any corresponding law relating to the investigation
and settlement of industrial disputes in force in the State; or
(e) any other officer with experience as a Judge of a Civil Court or a Judicial Magistrate, as the
authority to hear and decide for any specified area all claims arising out of deductions from the
wages, or delay in payment of the wages, of persons employed or paid in that area, including
all matters incidental to such claims:
Appropriate Government considers it necessary so to do, it may appoint more than one authority
for any specified area and may, by general or special order, provide for the distribution or allocation of
work to be performed by them under this Act.
[Sec. 15(2)]. If any employer does opposite to the provisions of this act, any unreasonable deduction
has been made from the wages of an employed person, or any payment of wages has been delayed, in
such case any lawyer or any Inspector under this Act or official of a registered trade union authorised
to write an application to the authority appointed by government for direction of payment of wages
according to this act. Every such application shall be presented within 12 months from the date on
which the deduction from the wages was made or from the date on which the payment of the wages
was due to be made. Time of making an application can be accepted if there is reasonable cause.
[Sec. 15(3)]. After receiving of the application the authority shall give an opportunity to hear the
applicant and the employer or other person responsible for the payment of wages and conducts the
enquiry if necessary. It is found that there is mistake with employer; authority shall order the employer
for payment of the wage or refund to the employee of the amount deducted unreasonably or the
payment of the delayed wages, together with the payment of such compensation as the authority may
think fit. There will not be any compensation payable by employer if there is a reasonable and genuine
cause in delay in the payment of wages.
Powers of Authorities Appointed. [Section 18]
Taking evidence and of enforcing the attendance of witnesses and compelling the production of
documents.
Single Application in Respect of Claims from Unpaid Group. [Section 16]
There is no necessity of many applications if there are many employees whose wages has not been
paid. Such all employees can make one application to the authority for payment of wages according to
this act.
Appeal. [Section 17]
In the following situation the parties who ever dissatisfied can appeal to the district court :
m If the application dismissed by above authorities.
m Employer imposed with compensation exceeding 300/- rupees by the authorities.
m If the amount exceeding 25/- rupees withheld by the employer to single unpaid employee
50/- in case of many unpaid employees.
Penalty for Offences Under the Act. [Section 20] (2005 amendments)
Reasons
m Delay in payment of wages.
m Unreasonable deductions.
m Excess deduction for absence of duty.
m Excess deduction for damage or loss to employer.
m Excess deduction for house-accommodation amenity or service.
Punishable with fine which shall not be less than 1000/- rupees but which may extend to 7500/- rupees.
m If Wage period exceed one month.
m Failure in payments of wages on a working day.
m Wages not paid in form of current coin or currency notes or in both.
m Failure to maintain record for collected fines from employee.
m Improper usage of fine collected from employees.
m Failure of employee to display notice containing such abstracts of this Act and of the rules
made.
Punishable with fine which may extend 3000/- rupees
m Whoever obstructs an Inspector in the discharge of his duties under this Act.
m Whoever wilfully refuses to produce on the demand of an Inspector any register or other
document.
m Whoever refuses or wilfully neglects to afford an Inspector any reasonable facility for making
any entry, inspection, examination, supervision, or inquiry authorised by or under this Act.
Punishable with fine which shall not be less than 1000/- rupees but which may extend to 7500/- rupees
Whoever repeats the same offence committed before.
Imprisonment for a term which shall not be less than one month but which may extend to
6 months and fine which shall not be less than 3750/- rupees but which may extend 20,500/- rupees.
EQUAL REMUNERATION ACT, 1976

The Equal Remuneration Act, 1976 aims to provide for the payment of equal remuneration to men and
women workers and for the prevention of discrimination, on the ground of sex, against women in the
matter of employment and for matters connected therewith or incidental thereto. According to the Act,
the term ‘remuneration’ means “the basic wage or salary and any additional emoluments whatsoever
payable, either in cash or in kind, to a person employed in respect of employment or work done in such
employment, if the terms of the contract of employment, express or implied, were fulfilled”. Nothing in
this Act shall apply:- (i) to cases affecting the terms and conditions of a woman’s employment in
complying with the requirements of any law giving special treatment to women; or (ii) to any special
treatment accorded to women in connection with the birth or expected birth of a child, or the terms and
conditions relating to retirement, marriage or death or to any provision made in connection with the
retirement, marriage or death.
The Central Industrial Relations Machinery (CIRM) in the Ministry of Labour is responsible for
enforcing this Act. CIRM is an attached office of the Ministry and is also known as the Chief Labour
Commissioner (Central) [CLC(C)] Organisation. The CIRM is headed by the Chief Labour Commissioner
(Central).
The main provisions of the Act are:
m No employer shall pay to any worker, employed by him/ her in an establishment, a remuneration
(whether payable in cash or in kind) at rates less favorable than those at which remuneration
is paid by him/ her to the workers of the opposite sex in such establishment for performing the
same work or work of a similar nature. Also, no employer shall, for the purpose of complying
with the provisions of this Act, reduce the rate of remuneration of any worker.
m No employer shall, while making recruitment for the same work or work of a similar nature, or
in any condition of service subsequent to recruitment such as promotions, training or transfer,
make any discrimination against women except where the employment of women in such
work is prohibited or restricted by or under any law for the time being in force.
m Every employer shall maintain such registers and other documents in relation to the workers
employed by him/ her in the prescribed manner.
m If any employer: (i) makes any recruitment in contravention of the provisions of this Act; or
(ii) makes any payment of remuneration at unequal rates to men and women workers for the
same work or work of a similar nature; or (iii) makes any discrimination between men and
women workers in contravention of the provisions of this Act; or (iv) omits or fails to carry out
any direction made by the appropriate Government, then he/ she shall be punishable with fine
or with imprisonment or with both.
m Where an offence under this Act has been committed by a company, every person who at the
time the offence was committed, was in charge of, and was responsible to the company for the
conduct of the business of the company, as well as the company, shall be deemed, to be guilty
of the offence and shall be liable to be proceeded against and punished accordingly.
Definitions
In this Act, unless the context otherwise requires,
(a) “appropriate Government” means,
(i) in relation to any employment carried on by or under the authority of the Central
Government or a railway administration, or in relation to a banking company, a mine,
oilfield or major port or any corporation established by or under a Central Act, the Central
Government, and
(ii) in relation to any other employment, the State Government.
(b) “commencement of this Act” means, in relation to an establishment or employment, the date on
which this Act comes into force in respect of that establishment or employment;
(c) “employer” has the meaning assigned to it in clause (f) of section 2 of the Payment of Gratuity
Act, 1972 (39 of 1972);
(d) “man” and “woman” mean male and female human beings, respectively, of any age;
(e) “notification” means a notification published in the Official Gazette;
(f) “prescribed” means prescribed by rules made under this Act;
(g) “remuneration” means the basic wage or salary, and any additional emoluments whatsoever
payable, either in cash or in kind, to a person employed in respect of employment or work done
in such employment, if the terms of the contract of employment, express or implied, were
fulfilled;
(h) “same work or work of a similar nature” means work in respect of which the skill, effort and
responsibility required are the same, when performed under similar working conditions, by a
man or a woman and the differences, if any, between the skill, effort and responsibility required
of a man and those required of woman are not of practical importance in relation to the terms
and conditions of employment :
(i) “worker” means a worker in any establishment or employment in respect of which this Act has
come into force;
(j) words and expressions used in this Act and not defined but defined in the Industrial Disputes
Act, 1947 (14 of 1947), shall have the meanings respectively assigned to them in that Act.
Duty of Employer to Pay Equal Remuneration to Men and Women Workers for Same Work or Work
of a Similar Nature.
(1) No employer shall pay to any worker, employed by him in an establishment or employment,
remuneration, whether payable in cash or in kind, at rates less favourable than those at which
remuneration is paid by him to the workers of the opposite sex in such establishment or
employment for performing the same work or work of a similar nature.
(2) No employer shall, for the purpose of complying with the provisions of sub-section (1), reduce
the rate of remuneration of any worker.
(3) Where, in an establishment or employment, the rates of remuneration payable before the
commencement of this Act for men and women workers for the same work or work of a similar
nature are different only on the ground of sex, then the higher (in cases where there are only two
rates), or, as the case may be, the highest (in cases where there are more than two rates), of such
rates shall be the rate at which remuneration shall be payable, on and from such commencement,
to such men and women workers :
Provided that nothing in this sub-section shall be deemed to entitle a worker to the revision of the
rate of remuneration payable to him or her with reference to the service rendered by him or her before
the commencement of this Act.
No Discrimination to be Made While Recruiting Men and Women Workers.
On and from the commencement of this Act, no employer shall, while making recruitment for the same
work or work of a similar nature, or in any condition of service subsequent to recruitment such as
promotions, training or transfer, make any discrimination against women except where the employment
of women in such work is prohibited or restricted by or under any law for the time being in force :
Provided that the provisions of this section shall not affect any priority or reservation for Scheduled
Castes or Scheduled Tribes, ex-servicemen, retrenched employees or any other class or category of
persons in the matter of recruitment to the posts in an establishment or employment.
Advisory Committee
(1) For the purpose of providing increasing employment opportunities for women, the appropriate
Government shall constitute one or more Advisory Committees to advise it with regard to the
extent to which women may be employed in such establishments or employments as the Central
Government may, by notification, specify in this behalf.
(2) Every Advisory Committee shall consist of not less than ten persons, to be nominated by the
appropriate Government, of which one-half shall be women.
(3) In tendering its advice, the Advisory Committee shall have regard to the number of women
employed in the concerned establishment or employment, the nature of work, hours of work,
suitability of women for employment, as the case may be, the need for providing increasing
employment opportunities for women, including part-time employment and such relevant
factors as the Committee may think fit.
(4) The Advisory Committee shall regulate its own procedure.
(5) The appropriate Government may, after considering the advice tendered to it by the Advisory
Committee and after giving to the persons concerned in the establishment or employment an
opportunity to make representations, issue such directions in respect of employment of women
workers, as the appropriate Government may think fit.
Power of Appropriate Government to Appoint Authorities for Hearing and Deciding Claims and
Complaints.
(1) The appropriate Government may, by notification, appoint such officers, not below the rank of
a Labour Officer, as it thinks fit to be the authorities for the purpose of hearing and deciding -(a)
complaints with regard to the contravention of any provision of this Act; (b) claims arising out
of non-payment of wages at equal rates to men and women workers for the same work or work
of a similar nature; and may, by the same or subsequent notification, define the local limits
within which each such authority shall exercise its jurisdiction.
(2) Every complaint or claim referred to in sub-section (1) shall be made in such manner as may be
prescribed.
(3) If any question arises as to whether two or more works are of the same nature or of a similar
nature, it shall be decided by the authority appointed under sub-section (1).
(4) Where a complaint or claim is made to the authority appointed under sub-section (1) it may,
after giving the applicant and the employer an opportunity of being heard, and after such
inquiry as it may consider necessary, direct :
(i) in the case of a claim arising out of non-payment of wages at equal rates to men and women
workers for the same work or work of a similar nature, that payment be made to the worker
of the amount by which the wages payable to him exceed the amount actually paid;
(ii) in the case of complaint, that adequate steps be taken by the employer so as to ensure that
there is no contravention of any provision of this Act.
(5) Every authority appointed under sub-section (1) shall have all the powers of a Civil Court
under the Code of Civil Procedure, 1908 (5 of 1908), for the purpose of taking evidence and of
enforcing the attendance of witnesses and compelling the production of documents, and every
such authority shall be deemed to be a Civil Court for all the purposes of section 195 and
Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974).
(6) Any employer or worker aggrieved by any order may be an authority appointed under sub-
section (1), on a complaint or claim may, within thirty days from the date of the order, prefer an
appeal to such authority as the appropriate Government may, by notification, specify in this
behalf, and that authority may, after hearing the appeal, confirm, modify or reverse the order
appealed against and no further appeal shall lie against the order made by such authority.
(7) The authority referred to in sub-section (6) may, if it is satisfied that the appellant was prevented
by sufficient cause from preferring the appeal within the period specified in sub-section (6),
allow the appeal to be preferred within a further period of thirty days but not thereafter.
(8) The provisions of sub-section (1) of section 33C of the Industrial Disputes Act, 1947 (14 of
1947), shall apply for the recovery of monies due from an employer arising out of the decision
of an authority appointed under this section.
Duty of Employers to Maintain Registers. On and from the commencement of this Act, every employer
shall maintain such registers and other documents in relation to the workers employed by him as may
be prescribed.
Inspectors.
(1) The appropriate Government may, by notification, appoint such persons as it may think fit to
be Inspectors for the purpose of making an investigation as to whether the provisions of this
Act, or the rules made there under, are being complied with by employers, and may define the
local limits within which an Inspector may make such investigation.
(2) Every Inspector shall be deemed to be a public servant within the meaning of section 21 of the
Indian Penal Code (45 of 1860).
(3) An Inspector may, at any place within the local limits of his jurisdiction : (a) enter, at any
reasonable time, with such assistance as he thinks fit, any building, factory, premises or vessel;
(b) require any employer to produce any register, muster-roll or other documents relating to the
employment of workers, and examine such documents; (c) take on the spot or otherwise, the
evidence of any person for the purpose of ascertaining whether the provisions of this Act are
being, or have been, complied with; (d) examine the employer, his agent or servant or any other
person found in charge of the establishment or any premises connected therewith or any person
whom the Inspector has reasonable cause to believe to be, or to have been a worker in the
establishment; (e) make copies, or take extracts from, any register or other document maintained
in relation to the establishment under this Act.
(4) Any person required by an Inspector to produce any register or other document or to give any
information shall comply with such requisition.
Penalties.
(1) If after the commencement of this Act, any employer, being required by or under the Act, so to
do:
(a) omits or fails to maintain any register or other document in relation to workers employed
by him, or
(b) omits or fails to produce any register, muster-roll or other document relating to the
employment of workers, or
(c) omits or refuses to give any evidence or prevents his agent, servant, or any other person in
charge of the establishment, or any worker, from giving evidence, or
(d) omits or refuses to give any information, he shall be punishable with simple imprisonment
for a term which may extend to one month or with fine which may extend to ten thousand
rupees or with both.
(2) If, after the commencement of this Act, any employer -
(a) makes any recruitment in contravention of the provisions of this Act, or
(b) makes any payment of remuneration at unequal rates to men and women workers, for the
same work or work of a similar nature, or
(c) makes any discrimination between men and women workers in contravention of the
provisions of this Act, or
(d) omits or fails to carry out any direction made by the appropriate Government under sub-
section (5) of section 6, he shall be punishable with fine which shall not be less than ten
thousand rupees but which may extend to twenty thousand rupees or with imprisonment
for a term which shall be not less than three months but which may extend to one year or
with both for the first offence, and with imprisonment which may extend to two years for
the second and subsequent offences.
(3) If any person being required so to do, omits or refuses to produce to an Inspector any register or
other document or to give any information, he shall be punishable with fine which may extend
to five hundred rupees.
Offences by Companies.
(1) Where an offence under this Act has been committed by a company, every person who at the
time the offence was committed, was in charge of, and was responsible to, the company for the
of the offence and shall be liable to be proceeded against and punished accordingly : Provided
that nothing contained in this sub-section shall render any such person liable to any punishment,
if he proves that the offence was committed without his knowledge or that he had exercised all
due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where any offence under this Act been
committed by a company and it is proved that the offence has been committed with the consent
or connivance of or is attributable to any neglect on the part of any director, manager, secretary
or other officer of the company, such director, manager, secretary or other officer shall be deemed
to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.
Explanation. For the purposes of this section :
(a) “company” means any body corporate and includes a firm or other association of individuals;
and
(b) “director”, in relation to a firm, means a partner in the firm.
Cognizance and Trial of Offences.
(1) No court inferior to that of a metropolitan magistrate or judicial Magistrate of the first class
shall try any offence punishable under this Act.
(2) No court shall take cognizance of an offence punishable under this Act except upon :
(a) its own knowledge or upon a complaint made by the appropriate Government or an officer
authorised by it in this behalf, or
(b) a complaint made by the person aggrieved by the offence or by any recognised welfare
institution or organisation.
Power to Make Rules.
(1) The Central Government may, by notification, make rules for carrying out the provisions of this
Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may
provide for all or any of the following matters, namely: (a) the manner in which complaint or
claim referred to in sub-section (1) of section 7 shall be made; (b) registers and other documents
which an employer is required under section 8 to maintain in relation to the workers employed
by him; (c) any other matter which is required to be, or may be, prescribed.
(3) Every rule made by the Central Government under this Act shall be laid, as soon as may be after
it is made, before each House of Parliament, while it is in session, for a total period of thirty days
which may be comprised in one session or in two or more successive sessions, and if, before the
expiry of the session immediately following the session or the successive sessions aforesaid,
both Houses agree in making any modification in the rule or both Houses agree that the rule
should not be made, the rule shall thereafter have effect only in such modified form or be of no
effect, as the case may be; so, however, that any such modification or annulment shall be
without prejudice to the validity of anything previously done under that rule.
Power of Central Government to Give Directions.
The Central Government may give directions to a State Government as to the carrying into execution
of this Act in the State.
Act not to Apply in Certain Special Cases.
Nothing in this Act shall apply:
(a) to cases affecting the terms and conditions of a woman’s employment in complying with the
requirements of any law giving special treatment to women, or
(b) to any special treatment accorded to women in connection with :
(i) the birth or expected birth of a child, or
(ii) the terms and conditions relating to retirement, marriage or death or to any provision made
in connection with the retirement, marriage or death.
Power to Make Declaration.
Where the appropriate Government is, on a consideration of all the circumstances of the case, satisfied
that the differences in regard to the remuneration, or a particular species of remuneration, of men and
women workers in any establishment or employment is based on a factor other than sex, it may, by
notification, make a declaration to that effect, and any act of the employer attributable to such a
difference shall not be deemed to be contravention of any provision of this Act.
Power to Remove Difficulties.
If any difficulty arises in giving effect to the provisions of this Act the Central Government may, by
notification, make any order, not inconsistent with the provisions of this Act, which appears to it to be
necessary for the purpose of removing the difficulty:
Provided that every such order shall, as soon as may be after it is made, be laid before each House
of Parliament.
Repeal and Saving.
(1) The Equal Remuneration Ordinance, 1975 (12 of 1975), is hereby repealed.
(2) Notwithstanding such repeal, anything done or any action taken under the Ordinance so
repealed (including any notification, nomination, appointment, order or direction made there
under) shall be deemed to have been done or taken under the corresponding provisions of this
Act as if this Act were in force when such thing was done or action was taken.
THE PAYMENT OF BONUS ACT, 1965

Introduction
The practice of paying bonus in India appears to have originated during First World War when
certain textile mills granted 10% of wages as war bonus to their workers in 1917. In certain cases of
industrial disputes demand for payment of bonus was also included. In 1950, the Full Bench of the
Labour Appellate evolved a formula for determination of bonus. A plea was made to raise that
formula in 1959. At the second and third meetings of the Eighteenth Session of Standing Labour
Committee (G.O.I.) held in New Delhi in March/April 1960, it was agreed that a Commission be
appointed to go into the question of bonus and evolve suitable norms. A Tripartite Commission was
set up by the Government of India to consider in a comprehensive manner, the question of payment of
bonus based on profits to employees employed in establishments and to make recommendations to
the Government. The Government of India accepted the recommendations of the Commission subject
to certain modifications. To implement these recommendations the Payment of Bonus Ordinance,
1965 was promulgated on 29th May, 1965. To replace the said Ordinance the Payment of Bonus Bill
was introduced in the Parliament.
The Payment of Bonus Act, 1965 is the principal act for the payment of bonus to the employees
which was formed with an objective for rewarding employees for their good work for the organisation.
It is a step forward to share the prosperity of the establishment reflected by the profits earned by the
contributions made by capital, management and labour with the employees.
Objective
1. To improve statutory liability to pay bonus [reward for good work] in case of profits or losses.
2. To prescribe formula for calculating bonus
3. To prescribe Minimum & Maximum percentage bonus
4. To provide of set off/set on mechanism
5. To provide redressal mechanism
Definitions
(1) “accounting year” means :
(i) in relation to a corporation, the year ending on the day on which the books and accounts of
the corporation are to be closed and balanced;
(ii) in relation to a company, the period in respect of which any profit and loss account of the
company laid before it in annual general meeting is made up, whether that period is a year
or not;
(iii) in any other case-
(a) the year commencing on the 1st day of April; or
(b) if the accounts of an establishment maintained by the employer thereof are closed and
balanced on any day other than the 31st day of March, then, at the option of the employer,
the year ending on the day on which its accounts are so closed and balanced.
(4) “allocable surplus” means:
(a) in relation to an employer, being a company (other than a banking company) which has
not made the arrangements prescribed under the Income-tax Act for the declaration and
payment within India of the dividends payable out of its profits in accordance with the
provisions of section 194 of that Act, 67% of the available surplus in an accounting year;
(b) in any other case, 60% of such available surplus;
(11) “corporation” means anybody corporate established by or under any Central, Provincial or
State Act but does not include a company or a co-operative society;
(12) “direct tax” means:
(a) any tax chargeable under-
(i) the Income-tax Act;
(ii) the Super Profits Tax Act, 1963 (14 of 1963);
(iii) the Companies (Profits) Surtax Act, 1964 (7 of 1964);
(iv) the agricultural income-tax law; and
(b) any other tax which, having regard to its nature or incidence, may be declared by the
Central Government, by notification in the Official Gazette, to be a direct tax for the purposes
of this Act;
(13) “employee” means any person (other than an apprentice) employed on a salary or wage not
exceeding 10,000/- rupees per month in any industry to do any skilled or unskilled manual,
supervisory, managerial, administrative, technical or clerical work for hire or reward, whether
the terms of employment be express or implied; (2007 amendment)
(15) “establishment in private sector” means any establishment other than an establishment in
public sector;
(16) “establishment in public sector” means an establishment owned, controlled or managed by:
(a) a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956);
(b) a Corporation in which not less than forty per cent of its capital is held (whether single or
taken together) by:
(i) the Government; or
(ii) the Reserve Bank of India; or
(iii) a corporation owned by the Government or the Reserve Bank of India.
Payment of Bonus Act not to apply to certain classes of employees. [Section 32]
m Life Insurance Corporation ,
m The Indian Red Cross Society or any other institution of a like nature,
m Universities and other educational institutions ,
m Institutions (including hospitals, chambers of commerce and society welfare institutions)
established not for purposes of profit,
m Employees employed through contractors on building operations,
m Employees employed by the Reserve Bank of India,
m The Industrial Finance Corporation of India,
m Financial Corporations,
m the National Bank for Agriculture and Rural Development,
m the Unit Trust of India,
m the Industrial Development Bank of India.
Eligibility for bonus. [Sec. 8] (2007 amendment)
Every employee (receiving salary or wages up to Rs. 10,000 p.m) engaged in any industry to do any
skilled or unskilled manual, supervisory, managerial, administrative, technical or clerical work is
entitled to bonus for every accounting year if he has worked for at least 30 working days in that year.
Calculation of bonus with respect to certain employees. [Sec. 12] (2007 amendment)
Where the salary or wage of an employee exceeds 3500/- rupees per month, the minimum (8.33%)
bonus payable to Such employee under section 10 or, in case maximum bonus (20%) payable to such
employee under section 11, should be calculated as if his salary or wage were 3500/- rupees per
month. That means 3500/- as a salary or wage per month will be the fixed limit amount for calculation
of payment of bonus to employees those who are drawing the salary or wage more than 3500/- per
month but not more than 10,000/- per month. The Government has decided to enhance the eligibility
limit for payment of bonus 3500/- per month.
Disqualification for bonus. [Sec. 9]
An employee shall be disqualified from receiving bonus under this Act, if he is dismissed from service
for:
m Fraud; or Riotous or violent behaviour while on the premises of the establishment; or
m Theft, misappropriation or sabotage of any property of the establishment.
Payment of minimum bonus. [Sec. 10]

m Bonus should be paid along with the salary.
m Every year, every employer shall be bound to pay bonus to every employee.
m A minimum bonus which shall be 8.33% cent of the salary or wage earned by the employee
during the accounting year or 100/- rupees, whichever is higher.
m Bonus shall be payable in case of profits or losses in the accounting year.
Section 36. Power of exemption of bonus payment by government

In certain circumstances payment of minimum bonus can be exempted by the appropriate government
by taking consideration into relevant circumstances of concern factory or establishment which is in
losses. Payment of bonus exemption by the appropriate government may be given for a certain period
only.
Here are the relevant factors may be, the reasons for occurrence of losses to company, reasons and
ingenuity in consecutive occurrence of losses, the reasons must be justifiable, there should not be
intention to avoid payment of bonus by creating fake losses (mens rea).
Payment of Maximum Bonus [Sec. 11]
m In case the allocable surplus amount [Section 2(4)] exceeds the minimum bonus (8.33%) payable
amount to employees, the employer is bound to pay extra percentage of bonus.
m But maximum of 20% of bonus is payable to the every employee on the wage or salary earned
during the year.
Proportionate, reduction in bonus in certain cases [Sec. 13]
Where an employee has not worked for all the working days in an accounting year, the minimum
bonus of one hundred rupees or, as the case may be, of sixty rupees, if such bonus is higher than 8.33
per cent of his salary or wage for the days he has worked in that accounting year, shall be proportionately
reduced.
Computation of number of working days. [Sec. 14]
An employee shall be deemed to have worked in an establishment in any accounting year also on the
days on which :
(a) He has been laid off;
(b) He has been on leave with salary or wage;
(c) He has been absent due to temporary disablement caused by accident arising out of and in the
course of his employment; and
(d) The employee has been on maternity leave with salary or wage, during the accounting year.
Calculations for Bonus Payment

Computation of Gross Profits [Sec. 4].
There few differences in computation of gross profits in case of banking company and other than
banking companies. For accurate computation of the gross profits in case of banking companies refer
to First schedule and for other companies but not banking companies refer to Second schedule. But
over view for computation of gross profits is mentioned below :
Net profit (P&L a/c) +Add following items
m Income tax.
m Provision for: Bonus to employees, Depreciation, Direct taxes.
m Bonus paid to employees in respect of previous accounting years.
m The amount, if any, paid to, or provided for payment to, an approved gratuity fund.
m The amount actually paid to employees on their retirement or on termination of their employment
for any reason.
m Donations.
m Annuity due.
m Capital expenditure (other than capital expenditure on scientific research.
m Capital losses.
m Capital losses (other than losses on sale) of Capital assets on which depreciation has been
allowed for income-tax or agricultural income-tax).
m Losses of, or expenditure relating to, any business situated outside India.
Deduct
(a) Capital receipts and capital profits (other than profits on the sale of assets on which depreciation
has been allowed for income-tax or agricultural income-tax).
(b) Profits of, and receipts relating to, any business situated outside India.
(c) Income of foreign concerns from investments outside India.
(d) Expenditure or losses (if any) debited directly to reserves, other than:
i. Capital expenditure and capital losses (other than losses on sale of capital assets on which
depreciation has not been allowed for income-tax or agricultural income-tax) ;
ii. Losses of any business situated outside India.
(e) In the case of foreign concerns proportionate administrative (over head) expenses of Head
Office allocable to Indian business.
(f) Refund of any direct tax paid for previous accounting years and excess provision, if any, of
previous accounting years relating to bonus, depreciation, taxation or development rebate or
development allowance, if written back.
Computation of Available surplus [Section 5]
Available surplus = gross profit [derived as per First Schedule or Second Schedule of this act] –
(minus) Depreciation, investment allowance or development allowance [Section 6] - (minus) direct
taxes payable [Section 7] - (minus) further sums as are specified in respect of the employer in the Third
Schedule of this act consist of dividend payable (preference shares), reserves and % of paid up equity
share capital [investment].
Allocable surplus [sec. 2 (4)]. Allocable surplus = 67% of the available surplus (other than banking
companies) or 60% of the available surplus (banking companies and companies linked with abroad)
Payment of bonus calculated on the allocable surplus which is derived by the above calculation
Set-On and Set-Off of Allocable Surplus [Sec. 15]
Set-On (In case of huge profits)
Excess allocable surplus remain after paying the maximum bonus of 20% on the wage or salary of the
employee, Should be carried forward to the next following year to be utilised for the purpose of
payment of bonus in case of the shortage of the allocable surplus or losses occur. This is called as
Set-On.
Set-Off (in case of losses occur)
When there are no profits (available surplus or allocable surplus) or the amount falls short or deficiency
for payment of minimum bonus to employees 8.33%, such deficiency amount should be adjusted to the
current accounting year from the Set-On amount which was carried forward in case of excess allocable
surplus in the previous year. This is called as Set-Off.
Illustration:
m In this Schedule, the total amount of bonus equal to 8.33 per cent of the annual salary or wage
payable to all the employees is assumed to be Rs.1,04,167.
m Accordingly, Maximum bonus to which all the employees are entitled to be paid (20% of the
annual salary or wage of all the employees) would be Rs. 2,50,000.
Minimum: The balance of Rs.1,10,000 set on from Year-2 lapses.
Special provisions [Sec. 16]
m In case of new establishments up to 5 years, employees’ bonus is payable only in case of profits
only but not in losses by the management or employer.
m Condition that the Profits are remaining amounts after deducting expenses, depreciation and
taxes.
Deduction of certain amounts from bonus payable. [Sec. 18]
Employee is found guilty of misconduct causing financial loss to the employer, then, it shall, be lawful
for the employer to deduct the amount of loss from the amount of bonus payable by him to the employee
under this Act in respect of that accounting year only and the employee shall be entitled to receive the
balance, if any.
Time limit for payment. [Sec. 19]
m Bonus should be paid within a period of 8 months from the close of the accounting year.
m Maximum extended period for payment of bonus is 2 years, but with the permission of the
government only.
Recovery of bonus due from an employer [Sec. 21]
m If any amount is due to employee as bonus from his employer, he can write and apply to the
government for the recovery of the bonus from the employer.
m Application shall be made within one year from the date on which the money became due to the
employee from the employer.
Reference of dispute under this Act. [Sec. 22]
Where any dispute arises between an employer and his employees with respect to the bonus payable
under this Act such dispute shall be deemed to be an industrial dispute within the meaning of the
Industrial Dispute Act, 1947. All disputes shall be referred to the Labour courts or the industrial
tribunals.
Maintenance of registers, records, etc. [Sec. 26]
Every employer shall prepare and maintain such registers, records and other documents in such form
and in such manner as may be prescribed.
Inspectors. [Sec. 27]
The Government may, by notification in the official Gazette, appoint such persons as it thinks fit to be
Inspectors for the purpose of this Act and may define the limits within which they shall exercise
jurisdiction.
Powers;
m Inspector can any reasonable time can enter in the premises and inspect or examine the records,
accounts, books, registers and any other documents.
m Employer is having duty to furnish any information asked by the inspector.
Offences and Penalties [Sec. 28 & 29]

m For contravention of the provisions of the Act or rules the penalty is imprisonment up to
6 months or fine up to Rs.1000, or both.
m In case of offences by companies, every person who, at the time the offence was committed, was
in charge of, and was responsible to, the company for the conduct of business of the company,
as well as the company, shall be deemed to be guilty of the offence and shall be liable to be
proceeded against and punished accordingly: any such person liable to any punishment if he
proves that the offence was committed without his knowledge or that he exercised all due
diligence to prevent the commission of such offence.

1. ________ means an association of workers 7. As per the trade union act, 1926 what is the
in a particular craft and industry. minimum trade union membership fee per
(A) Craft union (B) Industry union month to be paid by a member in a factory
(C) Trade union (D) All of these (A) 1 rupees per month
2. TU act was passed to regulate (B) 3 months per month
(A) Obligation imposed upon a registered (C) 25 Paisa per month
TU (D) All of these
(B) Right & liabilities of registered TU 8. For a registered trade union, consent of
(C) Conditions governing the registration of ________members is required for change of
TU name.
(D) All of these (A) Not less than 1/3 of total
3. ________means the body to which the man- (B) Not less than 2/3 of total
agement of the affairs of a TU is entrusted. (C) Both A & B
(A) TU management (D) All of these
(B) Executive 9. The ______provided for the registration and
(C) Both A & B recognition of trade union and define the
(D) All of these law relating to registered and recognised
trade union and certain unfair labour prac-
4. In TU 1926 the minimum number of mem-
tice.
bers are required at the time of registration
is (A) Trade union bill, 1950
(A) 8 (B) 7 (B) Trade union bill, 1956
(C) 9 (D) All of these (C) Trade union bill, 1958
(D) All of these
5. The registrar of trade union is appointed for
the________ . 10. First National Commission on labour was
(A) State governed
(B) District (A) 1969 (B) 1956
(C) Both A & B (C) 1968 (D) All of these
(D) All of these 11. __________years of age is required for be-
coming a member of registered TU.
6. According to TU (Amendment act) 2001, in
order to be eligible for registration the require- (A) 18 (B) 15
ment is (C) 19 (D) All of these
(A) Not less than 7 member 12. The payment of a subscription by members
(B) Not less than 10% of the total workmen of the trade union which is not less than one
or 100 whichever is less rupee per annum are for__________ .
(C) Not less than 10% or 100 of the work- (A) Rural workers
man engaged in the industry or estab- (B) Unorganised sectors
lishment with a minimum of 7 (C) Workers in any others case
13. The payment of a subscription by members tained the minimum age of _____________
of the trade union which is not less than years.
three rupee per annum are for__________ . (A) 18 (B) 17
(A) Rural workers (C) 19 (D) All of these
(B) Unorganised sectors 21. The account book of a registered trade union
(C) Workers in any others case and the membership list will be open to in-
(D) All of these spection by a ___________or member of the
14. The payment of a subscription by members trade union.
of the trade union which is not less than (A) Rural workers
12 rupee per annum are for__________ . (B) Office bearer
(A) Rural workers (C) Workers in any others case
(B) Unorganised sectors (D) All of these
(C) Workers in any others case 22. The act provides for the constitution of a
(D) All of these separate ___________by a registered trade
15. The duration of the periods not being more union.
than _________ for which the members of (A) Economic fund
the executive and others office bearers of the (B) Political fund
trade union will be elected . (C) Workers in any others case
(A) 2 years (B) 3 years (D) All of these
(C) 1 years (D) All of these 23. Indian trade disputes act came into force in
16. In TU act, 1926 for becoming an office bearer _______.
of the registered TU, the minimum age (A) 1829 (B) 1945
is_________ years. (C) 1929 (D) All of these
(A) 18 (B) 17 24. Industrial disputes act came into force in
(C) 19 (D) All of these (A) 1829 (B) 1945
17. In TU, 1926, out of the total office bearer (C) 1947 (D) All of these
________can be outsiders.
25. The provision of the “protected workman”
(A) 1/3 (B) 1/2 is given under
(C) 2/3 (D) All of these (A) ID Act, 1947
18. The TU amendment act 2001 has limited the (B) Minimum wage, 1948
proportion for the outsider that is (C) Both A & B
(A) Not less than 1/3 of total Number office (D) All of these
bearer
26. A list of unfair labour practices on the part
(B) 5
of the trade union and employers are in-
(C) Both A & B, whichever is less serted in
(D) All of these (A) ID Act, 1947
19. The TU Amendment act, 2001 has limited (B) Minimum wage, 1948
the proportion of outsider in unorganised (C) Payment of bonus, 1961
sector to
(D) All of these
(A) 50% (B) 20%
27. Which schedule of the ID act, 1947 gives the
(C) 10% (D) All of these
list of Public utility services?
20. In TU act, 1926 disqualification of an office (A) First schedule
bearer of the registered TU, if he has not at-
(B) Fifth schedule
(C) Both A & B 35. The various _______have been formed by

(D) All of these the union government to provide a forum
28. Equal remuneration act 1976 mainly enacted for discussion and consultation on various
to check labour issues.
(A) Child exploitation (A) Tripartite bodies
(B) Man exploitation (B) Bipartite bodies
(C) Woman exploitation (C) Both A & B
29. The conflicts and disputes between employ- 36. In ______the representative of labour, em-
ers and employees on any industrial mat- ployers and government must meet regularly
ters are known as a_________. to discuss and hold consultations on impor-
tant matters relating to IR.
(A) Industrial disputes
(B) Human relation
(C) Conflict Relation
(C) Both A & B
(D) All of these
(D) None of these
30. Which of the following is the forms of in-
dustrial disputes? 37. Which of the following is the types of tripar-
tite bodies are
(A) Strike
(A) Indian labour conference
(B) Lockouts
(B) Standing labour committee
(C) Gherao (D) All of these
(C) The industrial committee
31. Which of the following is not the forms of
(D) All of these
industrial disputes
(A) Picketing (B) Boycott 38. Which of the following is the not the types
of tripartite bodies ?
(C) Gherao (D) None of these
(A) National renewal fund
32. Which of the following is based on the con-
(B) Central implementation and evaluation
tributory principle?
machinery
(A) Maternity benefit act, 1961
(C) Steering committee on wage
(B) ESI act,1948
(D) None of these
(C) Workman compensation act, 1923
39. They are purely consultive and non nego-
(D) Old age pension scheme
tiable bodies which are set up exclusively to
33. _________ is one in which only union has deal with the disputes affecting the plant
given its consent. and industry
(A) Authorised (A) Tripartite bodies
(B) General and particular (B) Bipartite bodies
(C) Quickie (C) Both A & B
34. The industrial disputes settlement machin- 40. Which of the following is the type of Bipar-
ery-1 includes tite bodies?
(A) Tripartite bodies (A) Work Committee
(B) Bipartite bodies (B) JMC
(C) Both A& B (C) Both A& B
41. Every industrial undertaking employing pendent person who investigates the dis-
100 or more workers is under an obligation putes and all mater affecting there to.
to set up a_________ consisting of represen- (A) Conciliation
tative of employer and employee. (B) Conciliation Officer
(A) Work Committee (C) Board of conciliation
(B) JMC (D) All of the above
(C) Both A& B 49. The _________is bound to hold conciliation
(D) None of these in case of public utility services, while he is
42. The concepts of JMC was given in not bound to do so in case of non –public
(A) Industrial resolution 1956 utility services.
(B) 1967 (A) Conciliation
(C) Both A & B (B) Conciliation officer
(D) None of these (C) Board of conciliation
43. More close participation and interaction be- (D) All of the above
tween labour and management is estab- 50. Board of conciliation consists of how many
lished in order to create a cooperative envi- members.
ronment for negotiation and settlement (A) Chairman & two or four member
(A) Work Committee (B) 1 person
(B) JMC (C) Both A& B
(D) None of these 51. A ________is a fact finding body and is not
44. The JMC was set up in required to make any recommendation for
(A) 1957 (B) 1967 the settlement of ID.
(C) Both A& B (D) None of these (A) Conciliation
45. Which of the following is the Industrial dis- (B) Court of inquiry
putes settlement machinery–II? (C) Board of conciliation
(A) Conciliation (B) Arbitration (D) All of the above
(C) Adjudication (D) All of these 52. Court of inquiry submit reports to the gov-
46. ____ aims to bring out the speedy settlements ernment within
of disputes without resorts to strike an lock- (A) 6 months (B) 1 months
outs. This provided a mutually acceptable (C) Both A& B (D) None of these
solution between both the disputing parties. 53. Court of inquiry consist of how many mem-
(A) Conciliation bers.
(B) Arbitration (A) Chairman & two or four member
(C) Adjudication (B) One or more person
(D) Collective bargaining (C) Both A & B
47. Work committee is a (D) None of these
(A) Tripartite bodies 54. When one of the parties to an industrial dis-
(B) Bipartite bodies putes feels aggrieved by an act of the others,
(C) Both A & B it may apply the appropriate government to
(D) None of these refers the disputed adjudication machinery.
48. The duty of the _______ is to mediate in and (A) Voluntary arbitration
promotes the settlement of ID. He is inde- (B) Compulsory arbitration
(C) Both A & B (B) Industrial tribunal

(D) None of these (C) National tribunal
55. ________means a mandatory settlement of (D) All of the above
ID by labour court, industrial tribunal and 61. The inability of an employer to provide em-
national tribunal under the ID act or any ployment due to shortage of power, raw
others corresponding to state statues. material and breakdown machinery is called
(A) Conciliation (A) Lockout (B) Retrenchment
(B) Voluntary Arbitration (C) Both A & B (D) None of these
(C) Adjudication 62. __________means the failure and refusal of
(D) Collective bargaining an employer to give employment.
56. Three tier system of adjudication are (A) Lay-off (B) Retrenchment
(A) Labour Court (C) Both A & B (D) None of these
(B) Industrial tribunal 63. Not less than _______of service is required
(C) National tribunal in order to be compensated for /transfer and
(D) All of the above closing of undertaking.
57. Parties adjudicating bodies decide the dis- (A) 2 years (B) 3 years
putes referred to them by the appropriate (C) 1 years (D) All of these
government and pass their awards. 64. _________days of notice is required from
(A) Labour Court employer for his intention to close down
(B) Industrial tribunal undertaking.
(C) National tribunal (A) 20 (B) 60
(D) All of the above (C) 80 (D) All of these
58. The appropriate government may be noti- 65. The period of work of an adult worker in a
fied in official gazette constitute one or more factory including interval cannot be more
labour court for adjudication of ID relating then
to disputes orders of the employers. (A) 8 ½ (B) 10 ½
(A) Labour Court (C) 8 hour (D) 9 hour
(B) Industrial tribunal 66. According to the factories act 1948, which
(C) National tribunal of the following is the correct
(D) All of the above (A) 8 hours a day & 48 hours a week
59. The state government have been empowered (B) 9 hours a day & 54 hours a week
to as many industrial tribunals as it thinks (C) 9 hours a day & 48 hours a week
proper for the adjudication of the dispute (D) 8 hours a day & 56 hours a week
relating to wages, hour of work rest, inter- 67. Which of the following is a bipartite body
val, holiday bonus and profits. for disputes settlement under the industrial
(A) Labour Court disputes act.
(B) Industrial tribunal (A) Labour court
(C) National tribunal (B) Industrial tribunal
(D) All of the above (C) Work Committee
60. _______are set up by the central government (D) All of the above
for the adjudication of the ID which involves 68. Which of the following should be the ___ %
the question of national importance. of worker with trade union seeking recogni-
(A) Labour Court tion as a bargaining agent.
(A) 20 (B) 30 76. Which of the following is/are the objectives
(C) 10 (D) All of the above of payment of wages act.
69. Labour court consist of how many person (A) Payment in kind
(A) Chairman & two or four member (B) when paid in cash, payment in illegal
(B) 1 person only tender
(C) Both A& B (C) Arbitrator deduction
(D) None of these (D) Irregular payment and non-payment al-
together.
70. Standing orders means
77. Every ________ is ordinary responsible for
(A) Rules relating to the condition of employ-
payment of wages to person employed by
ment
him.
(B) Rules related to organisation
(A) Trade union
(C) Rules in management
(B) Employer
(D) All of these
(C) Government
71. Minimum numbers of workers required for
(D) All of these
the applicability of industrial employment
(S.O.) Act, 1946 are 78. Wage period is not exceed by __________.
(A) 100 (B) 50 (A) 6 months (B) 3 months
(C) 150 (D) All of these (C) 1 month (D) All of these
72. Within ______ of the application of indus- 79. In industrial establishment in which less
trial employment (S.O.) Act, 1946 the em- than 1000 person are employed will have to
ployer will submit the 5 copies of draft S.O. paid before the expiry of ___________after
to certifying officer the last day of wage periods.
(A) 6 months (B) 4 months (A) 7 days (B) 10 days
(C) 1 years (D) All of these (C) 1 month
(D) All of these
73. Any employer, workman, trade union and
others prescribed representative of workman 80. In Industrial establishment in which more
aggrieved by the order of the certifying of- than 1000 person are employed will have to
ficer may appeal the appellate authority paid before the expiry of ___________after
within _______from the date on which cop- the last day of wage periods.
ies are sent to them. (A) 7 days (B) 10 days
(A) 6 months (B) 3 months (C) 1 month (D) All of these
(C) 1 years (D) All of these 81. In payment of wages act, the total amount of
74. Certified standing orders are normally to refine imposed on a person shall not exceed
main unmodified for a periods of________. _________of his wages.
Employer, workman, trade union others pre- (A) 1% (B) 3%
scribed representative of workman may (C) 4% (D) All of these
agree to modify it in a shorter periods. 82. Total amount of deduction shall not exceed
(A) 6 months (B) 3 months 75% of wages of employed person where
(C) 1 years (D) All of these such deduction under payment to coopera-
75. Payment of wages act was came into force tive societies. In others cases, they shall not
(A) 1829 (B) 1936 exceed _______ of wages.
(C) 1947 (D) All of these (A) 50% (B) 60%
(C) 40% (D) All of these
83. Total amount of deduction shall not exceed (A) 19 (B) 15

__________ of wages of employed person (C) 18 (D) All of these
where such deduction under payment to 92. Central advisory board under the minimum
cooperative societies. wages act, 1948 is constituted to
(A) 50% (B) 75 % (A) To advise the employers for payment of
(C) 40% (D) All of these minimum wages as fixed under this act.
84. Which of the following is not an authorised (B) Coordinate the work committee and sub-
deduction under of payment of wages act, committee.
1936. (C) Coordinate the work of advisory com-
(A) Deduction for overtime mittee.
(B) Deduction for services (D) All of these
(C) Deduction for Fines 93. Which of the following is given to workers in
(D) All of these the organised sectors and sweated industry
85. Payment of wages act was amending rais- (A) Living wages
ing the wage ceiling to Rs______per month. (B) Statutory Minimum wages
(A) 6500 (B) 7500 (C) Fair wages
(C) 6400 (D) All of these (D) All of these
86. The minimum wages act was enacted in 94. The ________is to consist of equal number
(A) 1949 (B) 1948 of representative of employers and employ-
(C) 1947 (D) All of these ees and independent person not exceeding
87. Labour investigation committee known as 1/3 total number of the member-all nomi-
Rege committee appointed by the govern- nated by central government.
ment in India in (A) Central advisory board
(A) 1944 (B) 1936 (B) State advisory board
(C) 1947 (D) All of these (C) Both A& B
88. In minimum wages act, which of the follow- (D) All of these
ing employment is in part II of the sched- 95. The minimum rates of wages fixed under the
uled employment act are generally to be revised at maximum
(A) Agriculture (B) Business interval ___________years.
(C) Plantation (D) All of these (A) 1 (B) 5
89. For fixing minimum wages appropriate gov- (C) 3 (D) All of these
ernment shall 96. The revised rates of wages are also came into
(A) Appoints committee force on the expiry of the ________months
(B) Publish proposal in official gazette for the date of issue of the notification.
(C) Both A & B (D) All of these (A) 7 Months (B) 3 Months
(C) 1 Month (D) All of these
90. The minimum rate of wages fixed
(A) For time work 97. Cost of living index is related to
(B) For piece Work (A) Living wages
(C) For a guaranteed time work (B) Minimum wages
(D) All of these (C) Fair wages
(D) All of these
91. As per payment of wages act,1936 no fine
shall be imposed on any employed person 98. Under the payment of bonus act, 1965 any
who is under age of employee who has worked for not less than
___________working days in a years is en- (A) Payment of bonus act
titled to payment of bonus by his employer. (B) Minimum wages
(A) 15 (B) 30 (C) Equal remuneration act
(C) 31 (D) All of these (D) All of these
99. Payment of Bonus act was came into force 107. Which ILO convention is concerned with
in equal remuneration for equal work _______.
(A) 1967 (B) 1965 (A)Convention no. 100
(C) 1947 (D) All of these (B) Convention no. 101
100. In payment of bonus act, a minimum bonus (C) Both A &B
of_________ percent of wages of an em- (D) All of these
ployee is payable. 108. ILO convention is concerned with equal re-
(A) 8.33% (B) 5.5% muneration for equal work was adopted in
(C) 10 (D) All of these ______.
101. Minimum condition of welfare is explained (A) 1967 (B) 1951
by (C) 1947 (D) All of these
(A) Dr. Akykroid formula 109. Recognition of the trade union in industry
(B) Subsistence theory under the code of discipline was developed
(C) Both (A) and (B) in the year
(D) None of the above (A) 1967 (B) 1951
102. ________is the workers share. (C) 1957 (D) 1962
(A) Appoints committee 110. Where the recruitment happens through the
(B) Allocable surplus compulsory intervention of the trade union,
(C) Both A & B the system is called
(D) All of these (A) Closed shop (B) Union shop
103. “Set on” and “Set Off” is related to (C) Open shop (D) All of these
(A) Payment of bonus act 111. Under the payment of wages act 1936 the
(B) Minimum wages maximum limit of the deduction should not
(C) Fair wages ordinarily cross
(D) All of these (A) 50 % generally and 65% in case of pay-
ment due to cooperatives
104. Equal remuneration act was came into force
in (B) 60 % generally and 75% in case of pay-
(A) 1967 (B) 1976
(C) 1947 (D) All of these (C) 50 % generally and 75% in case of pay-
105. Equal remuneration act, Advisory commit-
(D) 30 % generally and 75% in case of pay-
tee is to consists of not less then 10 persons
to be nominated by the appropriate govern-
ment, of which _________________ must be 112. Trade union movements in India emerged
woman. between
(A) One -half (B) Two-half (A) 1920-1930 (B) 1850-1870
(C) Both A & B (D) All of these (C) 1870-1880 (D) 1930-1947
106. The advisory committee to increase employ- 113. The payment of bonus act, 1965 is applicable
ment opportunity to women constituted to an employee who draws wage and salary
under which act of
(A) Rs 3500 in case of apprentice 121. First National commission of labour was set
(B) Rs 5000 in case of apprentice and em- up in
ployee (A) 1948 (B) 1969
(C) Rs 7500 in case of employee only (C) 1931 (D) None of these
(D) Rs 10000 in case of employee only 122. Second national commission of labour was
114. The Minimum wages act,1948 has set up in
(A) One schedule covering different types (A) 2002 (B) 1957
industries (C) 1967 (D) All of the above
(B) One schedule covering different types 123. A Weekly holiday in the factories for the first
of industries, shop and establishment time introduced in the year
(C) One schedule covering shop and estab- (A) 1948 (B) 1923
lishment (C) 1931 (D) None of these
(D) Two scheduled covering industrial es- 124. _____________ means an interim or a final
tablishment and agriculture determination of any industrial dispute or
115. _____________means any dispute or differ- of any question relating there to by any
ence between employers and employers, or Labour Court, Industrial Tribunal or Na-
between employers and workmen, or be- tional Industrial Tribunal and includes an
tween workmen and workmen, which is con- arbitration award made under section 10A;
nected with the employment or non-employ- (A) Award [Sec. 2 (b)]. (B) Arbitrator
ment or the terms of employment or with the (C) Conciliation (D) All of these
conditions of labour, of any person.
125. The concepts of JMC was given by
(A) Award [Sec 2 (b)]
(A) Industrial resolution 1956
(B) 2(k) “industrial dispute”
(B) 1967
(C) Conciliation
(C) Both A & B
(D) None of the
116. Public utility services are listed in
126. Which of the following is not a principle of
(A) Trade union act, 1926 labour welfare
(B) Factories act, 1948 (A) The principle of coordination
(C) Equal Remuneration act (B) The principle of Uniformity
(D) All of these (C) The principle of coordination and inte-
117. Fair wage committee was set up in gration
(A) 1948 (B) 1959 (D) The principle of timeliness.
(C) 1931 (D) None of these 127. An ____________is appointed by the Gov-
118. National productivity council was set up in ernment. Whether the dispute is before
(A) 1958 (B) 1958 Labour Court, or Industrial Tribunal or Na-
(C) 1931 (D) None of these tional Tribunal, the parties can go to arbi-
tration by written agreement.
119. Wage board was established in
(A) Adjudication (B) arbitrator
(A) 1957 (B) 1958
(C) Conciliation
120. Royal Commission of labour was set up in
128. _________”A cessation of work by a body
(A) 1948 (B) 1931
of persons employed in any industry acting
in combination or a concerted refusal under
a common understanding of any number of 135. ILO was established in
persons who are or have been so employed, (A) 1999 (B) 1957
to continue to work or to accept employ- (C) 1967 (D) All of the above
ment”.
136. Code of discipline in industry was came into
(A) Strike force in
(B) Industrial Dispute (A) 1958 (B) 1957
(C) Lockout (C) 1967 (D) All of the above
137. First industrial committee was set up in
129. __________”the temporary closing of a place (A) 1947 (B) 1957
of employment, or the suspension of work,
(C) 1967 (D) All of the above
or the refusal by an employer to continue to
employ any number of persons employed by 138. Non statutory wage board was first set up
him”. in
(A) Strike (A) 1958 (B) 1957
(B) Industrial Dispute (C) 1967 (D) All of the above
(C) Lockout 139. The JMC was set up in
(D) All of the above (A) 1957 (B) 1967
130. Board level participation was set in (C) Both A& B (D) None of these
(A) 1947 (B) 1970 140. “The temporary closing of a place of employ-
(C) 1967 (D) All of the above ment, or the suspension of work, or the re-
fusal by an employer to continue to employ
131. Shop council and joint council under old
any number of persons employed by him”.
20–point programme was set up in
(A) Strike
(A) 1947 (B) 1975
(B) Lockout
(C) 1967
(C) Both A& B
(D) None of these
132. “Labour is not a commodity” is the asser-
141. ___________ means the termination by the
tion made by
employer of the service of a workman for any
(A) The Magna Carta
reason whatsoever otherwise than as a pun-
(B) The declaration of Phildelphia adopted ishment indicated by way of disciplinary
by 26th session of ILO action.
(C) The Constitution of India (A) Strike
(D) The International Labour Conference. (B) Retrenchment
133. Institutional of employees participation in (C) Both A& B
management for public sectors undertaking (D) None of these
was set up in
142. Industrial Relation Bill was passed in the
(A) 1947 (B) 1957
year__________.
(C) 1983 (D) All of the above
(A) 1984 (B) 1978
134. Verma committee (1977) was set up under (C) 2004 (D) 1981
the chairmanship
143. Defence of India rules was set up in
(A) Ravindra Verma
(A) 1915 (B) 1978
(B) J.T. Dunlop
(C) 2004 (D) 1981
(C) Dale Yoder
144. First time the May Day was celebrated in (A) Second schedule
India (B) Third schedule
(A) 1927 (B) 1978 (C) Fourth schedule
(C) 2004 (D) 1981 (D) Fifth schedule
145. Inter union code of conduct was adopted in 153. Who among the following was the chairman
India in of the second national commission of labour
(A) 1984 (B) 1958 (A) Ravindra Verma
(C) 2004 (D) 1981 (B) Gajendra Ghadkar
146. First trade union India was set up in (C) Indira Gandhi
(A) 1984 (B) 1890 (D) Lalbahadur Shastri
(C) 2004 (D) 1981 154. Which of the following is/are authorised
147. Sanchar committee on worker’s participa- deduction (s) under the payment of wages
tion was set up in act, 1936
(A) 1984 (B) 1977 (A) Fine
(C) 2004 (D) 1981 (B) Contribution under ESI fund
148. A________ looks into only matters which (C) Contribution under Provident Fund
are referred to it by Government and sub- (D) All of these
mits its report to the Government ordinarily 155. Adjudication machineries under ID act, 1947
within certain period from the date of refer- shall submit their award in case of an indi-
ence. vidual workman within a period of
(A) Adjudication (A) One years (B) Two years
(B) Court of Inquiry (C) 3 years (D) 2 month
(C) Conciliation 156. Which schedule of the ID act 1947 deals with
(D) All of the above Public Utility Services
149. When parties in the industrial dispute ap- (A) First schedule
ply to the government to refer dispute to the (B) Third schedule
Conciliation Board and if government satis- (C) Fourth schedule
fies it shall make the reference to the (D) Fifth schedule
(A) Adjudication
157. The equal remuneration act was enacted in
(B) Conciliation Board. the year
(C) Conciliation (A) 1946 (B) 1947
(D) All of the above (C) 1976 (D) 1948
150. Gajendra Ghadkar commission on worker 158. The Industrial employment standing order
participation was set up in act, 1946 is applicable to every establishment
(A) 1984 (B) 1977 wherein _________ workmen are employed
(C) 2004 (D) 1968 (A) 50 (B) 70
151. The industrial Employment (standing order) (C) 80 (D) 100
act was enacted in the year 159. Which of the following is not a settlement
(A) 1946 (B) 1947 machinery under the ID Act 1947 ?
(C) 1950 (D) 1948 (A) Conciliation, Board of conciliation
152. Which schedule of the ID act 1947 deals with (B) Court of Inquiry
Unfair labour practices (C) Industrial Tribunal
(D) ILC & SLC
160. As per the payment of Bonus act, 1965 every (B) Labour Commissioner
employee shall be entitled to be paid by his (C) Chief Inspector of Factories
employer, bonus, provided he has worked (D) Certifying Officers
in the establishment for not less then
167. Which of the following stands for bonus in
(A) 20 working days the context of Indian situation
(B) 30 working days (A) Profit Sharing
(C) 60 working days (B) Deferred Wage
(D) 180 working days (C) Incentive
161. Which of the following legislation took into (D) None of the above
account the provision 81 A of the defence of
168. Under the minimum wage act, 1948 which
India rules?
of the following has /have been provided
(A) Trade union act for fixation of minimum wages
(B) ID Act, 1947 (A) Wage Boards
(C) Equal Remuneration act (B) Awards of Labour Court
(D) All of these (C) Notification methods and Committee
162. Consumer price index is taken into account methods
in connection with which of the following (D) None of the above
(A) Payment of Bonus act, 1965 169. Which of the following is not a tripartite
(B) Payment of Gratuity act, 1972 body?
(C) Minimum Wages act (A) Indian Labour Conference
(D) Payment Wages act (B) Standing Labour Committee
163. The wage period as provided under the pay- (C) Wage Board
ment of wages act,1936 should not be more (D) Joint Management Council
than
170. Which of the following legislation does not
(A) 30 days (B) 31 days contain labour welfare provision?
(C) 1 month (D) 2 month (A) Industrial disputes, 1947
164. The provision of constituting a political (B) Mines act, 1952
fund is given under which of the following (C) Plantation labour act, 1951
legislation?
(D) Factories act,1948
(A) Payment of bonus act, 1965
171. Match of the following
Theory of wages Propagators
(C) Minimum wages act
(a) Wage fund theory (i) John Bates Clark
(D) Payment wages act
(b) Marginal producti- (ii) John Davidson
165. Which of the following bodies is provided
vity theory
under the minimum wages act, 1948
(c) Bargaining theory (iii) John stuart Mill
(A) Standing labour committee
(d) Investment theory (iv) Gilelmen
(B) Shop level council
Codes :
(C) Advisory board
(a) ( b) ( c) (d)
(D) Payment wages act
(A) (ii) (iv) (i) (iii)
166. Who among the following has been autho-
(B) (iv) (ii) (iii) (i)
rised to certify standing orders under Indus-
trial employment, 1946 ? (C) (iii) (i) (ii) (iv)
(A) Labour Inspector (D) (i) (iii) (ii) (iv)
172. ‘Award Under the Industrial Disputes act’ 176. Give the correct sequences of the following
1947 is (i) Living Wage (ii) Minimum Wage
(a) Not interim determination of labour (iii) Fair Wage
court. (iv) Subsistence Wage
(b) Not arbitration award under section 10 Codes :
A (a) ( b) ( c) (d)
(c) Not final determination of labour court (A) (iv) (iii) (i) (ii)
(d) Not find determination of arbitration (B) (iv) (ii) (iii) (i)
award under section 10A.
(C) (iii) (iv) (ii) (i)
Codes :
(D) (ii) (iii) (iv) (i)
(A) All statements are true
177. Match the following subjects with the rel-
(B) All statements are wrong
evant schedules of the ID act
(C) (b) are true.
(a) Matters within juris- (i) First
(D) (a) and (b) are true. diction of Labour Schedule
173. Which of the following is not a peculiarity court
of labour market? (b) List of public utility (ii) Second
(A) Labour is less mobile services Schedule
(B) Workers can sell not only his own (c) Unfair labour (iii) Third
labour but also the labour of his fellow practices schedule
workers. (d) Matters within (iv) Fifth schedule
(c) Labour market normally local in jurisdiction of Indus-
nature. trial tribunal
(d) The number of buyers is less than the Codes :
number of sellers. (a) ( b) ( c) (d)
174. Who identified the types of unions as busi- (A) (ii) (i) (iv) (iii)
ness, predatory, dependent and friendly? (B) (iii) (iv) (i) (ii)
(A) Roberts, B.C. (C) (iii) (iv) (ii) (i)
(B) Kirkaldy, H.S. (D) (ii) (iii) ( iv) (i)
(C) Robert F. Hoxie 178. Match the following
(D) Perlman Selig (a) Discipline (i) Payment of
175. Match the following wages act,1936
(a) Check off (i) Registered trade (b) Regulation of (ii) Industrial
system union employee– employment
(b) Report (ii) Arbitration employer relation 1946
(c) Award (iii) Union subscription (c) Wage Revision (iii) ID act 1947
(d) Political Fund (iv) Conciliation (d) Mode and time (iv) Minimum
Codes : payment wages wages act
(a) ( b) ( c) (d) Codes :
(A) (iii) (ii) (iv) (i) (a) ( b) ( c) (d)
(B) (iii) (iv) (i) (ii) (A) (ii) (i) (iv) (iii)
(C) (iii) (iv) (ii) (i) (B) (iii) (iv) (i) (ii)
(D) (ii) (iii) (iv) (i) (C) (iii) (iv) (ii) (i)
(D) (iii) (ii) (iv) (i)
179. Match the following (A) Adjudication
List –I List-II (B) Arbitrator
(a) Protected Workman (i) Industrial em (C) Civil Court
ployment SO, (D) All of the above
1946 183. Any registered ________ can change its
(b) Immunity for civil (ii) Maternity name with the consent of two third of the
suit benefit act total number of its member under the provi-
(c) Subsistence (iii) ID Act,1947 sion of section 25.
allowance (A) Adjudication
(d) Medical Bonus (iv) Trade (B) Arbitrator
Union act, 1926 (C) Trade union
Codes : (D) All of these
(a) ( b) ( c) (d)
184. The certifying officer is a________ .
(A) (ii) (i) (iv) (iii)
(A) Adjudicator
(B) (iii) (iv) (i) (ii)
(B) Labour Commissioner
(C) (iii) (iv) (ii) (i)
(C) Labour Officer
(D) (iii) (ii) (iv) (i)
180. The “Public utility service” means
185. _____ process being conducted to settle the
(A) Any railway service or any transport ID should be closed within 14 days.
service for the carriage of passengers or
(A) Adjudication
goods by air;
(B) Arbitrator
(B) Any postal, telegraph or telephone ser-
(C) Conciliation
vice;
(D) All of these
(C) Any industry which supplies power,
light or water to the public; 186. ________ means any dispute or difference
(D) All of these between employers and employers, or
between employers and workmen, or
181. Labour court, tribunal and national tribu-
between workmen and workmen, which is
nal are the authorities for _____to solve dis-
connected with the employment or non-
putes.
employment or the terms of employment or
(A) Adjudication with the conditions of labour, of any person.
(B) Arbitrator (A) Adjudication
(C) Labour court (B) Industrial Dispute [Sec. 2(k)]
(D) All of the above (C) Conciliation
182. The _______has a jurisdiction to decide in- (D) All of the above
tra-union rivalry of office bearer of a trade
union.
ANSWER KEY
1. (A) 2. (D) 3. (B) 4. (B) 5. (A) 6. (C) 7. (C) 8. (B) 9. (A) 10. (a)
11. (B) 12. (A) 13. (B) 14. (C) 15. (B) 16. (A) 17. (B) 18. (C) 19. (A) 20. (A)
21. (B) 22. (B) 23. (C) 24. (C) 25. (A) 26. (A) 27. (A) 28. (D) 29. (A) 30. (D)
31. (D) 32. (D) 33. (A) 34. (C) 35. (A) 36. (A) 37. (D) 38. (D) 39. (B) 40. (C)
41. (A) 42. (A) 43. (B) 44. (A) 45. (D) 46. (A) 47. (B) 48. (B) 49. (B) 50. (A)
51. (B) 52. (A) 53. (B) 54. (B) 55. (C) 56. (C) 57. (D) 58. (A) 59. (B) 60. (C)
61. (B) 62. (A) 63. (C) 64. (B) 65. (C) 66. (A) 67. (C) 68. (B) 69. (D) 70. (A)
71. (A) 72. (A) 73. (B) 74. (A) 75. (B) 76. (D) 77. (B) 78. (C) 79. (A) 80. (B)
81. (B) 82. (A) 83. (B) 84. (A) 85. (A) 86. (B) 87. (A) 88. (A) 89. (C) 90. (D)
91. (B) 92. (B) 93. (B) 94. (A) 95. (B) 96. (B) 97. (B) 98. (B) 99. (B) 100. (A)
101. (C) 102. (C) 103. (A) 104. (B) 105. (A) 106. (C) 107. (A) 108. (B) 109. (C) 110. (A)
111. (C) 112. (A) 113. (D) 114. (D) 115. (B) 116. (A) 117. (A) 118. (A) 119. (A) 120. (A)
121. (B) 122. (A) 123. (B) 124. (A) 125. (A) 126. (A) 127. (B) 128. (A) 129. (C) 130. (B)
131. (B) 132. (B) 133. (C) 134. (A) 135. (A) 136. (A) 137. (A) 138. (A) 139. (A) 140. (B)
141. (B) 142. (B) 143. (A) 144. (A) 145. (B) 146. (B) 147. (B) 148. (B) 149. (B) 150. (D)
151. (A) 152. (D) 153. (A) 154. (D) 155. (C) 156. (A) 157. (C) 158. (D) 159. (D) 160. (B)
161. (B) 162. (C) 163. (C) 164. (B) 165. (C) 166. (D) 167. (D) 168. (A) 169. (D) 170. (A)
171. (C) 172. (B) 173. (B) 174. (C) 175. (C) 176. (B) 177. (A) 178. (D) 179. (B) 180. (D)
181. (A) 182. (C) 183. (C) 184. (B) 185. (C) 186. (B)
UNIT
LABOUR WELFARE
Labour welfare is an important dimension of industrial relation, labour welfare includes overall
welfare facilities designed to take care of well being of employee’s and in order to increase their living
standard. It do not generally constitutes monetery benefits nor these are provided by employers alone,
it can also be provided by government, non government agencies and trade unions. Industrialization,
mechanisation and globalisation has increased important of labour welfare in industries.
The importance of labour in industrialization and economic development has been recognised
globally. In global scenario need and importance of labour welfare has been increasingly appreciated.
HISTORY OF LABOUR WELFARE

In India the labour welfare started sometime during the 1st world war (1914-1918). Till then wellbeing
of workers in factories was hardly thought by anybody. Since, 1st world war labour welfare has been
expanding on voluntary basis. Industrial Labour Organisation has played a very significant role for
labour welfare. Much labour legislation have been formed by Indian central government and state
governments for welfare of labours in Industries. Government has laid down minimum standards for
employment and working conditions in organisations. Besides the government, the employers, trade
unions and various social organisations also function as agencies for implementation of labour welfare
measures. A Industrial labour organisation (ILO) is an advisory body so it cannot force any country to
introduce any welfare measures. The need of labour welfare was powerfully felt by the Royal
Commission of Labour far back in 1931, Indian constitution emphasized this need under its directive
principles of state policy.
Labour Welfare Meaning and Definition

Labour welfare is an important dimension of industrial relation, labour welfare includes overall
welfare facilities designed to take care of well being of employee’s and in order to increase their living
standard. It do not generally constitutes monetary benefits nor these are provided by employers alone,
it can also be provided by government, non government agencies and trade unions. Industrialisation,
mechanisation and globalisation has increased importance of labour welfare in industries.
The importance of labour in industrialisation and economic development has been recognised
globally. In global scenario need and importance of labour welfare has been increasingly appreciated.
 According to Arthur James Todd:”Labour welfare means anything done for the comfort and
improvement, intellectual and social, of the employees over and above the wages paid which is
not a necessity of the Industry.”
(533)
m According to Industrial Labour Organisation (ILO)”Labour welfare may be understood and
including such services facilities and amenities which may be established in vicinity of
undertaking to perform their work in healthy and congenial environment and to avail of facilities
which improve their health and bring high morale.”
Scope of Labour Welfare

Scope of Labour Welfare is very broad; however we have tried to include some main aspects of it. The
following list of labour welfare scope is not exhaustive.
Working Environment
Favourable working environment enhances efficiency of workers and includes proper illumination,
safety, temperature, ventilation, sanitation, cleanliness and canteen facilities. Workplace sanitation
and cleanliness is very important for making workplace favourable to workers. Following points
should be considerdered to make workplace favourable to workers.
m Proper ventilation, lighting, temperature, cleanliness, seating arrangements etc.
m Proper safety measures for workers should be there.
m Sufficient urinals, lavatories and bathing facilities should be provided and cleaned regularly.
m Proper gardening and cleanliness of open spaces.
m Pure drinking water should be provided.
m Subsidized canteen services should be provided.
Health Facilities
m Health centre should be provided within factory.
m Ambulance service should be provided within factory in case of any emergency.
m Free medical checkups of workers and health and diet counselling of workers.
m Availability of Doctor inside the factory for emergency.
m Women and child welfare work.
m Recreation facilities inside the organisation
m Education and library services
General Welfare Programs
m Housing facilities for workers
m Family case work and counselling
Economic Welfare Programs
m Subsidized consumer goods including grains, vegetables, milk, oil and other daily requirements.
m Banking services and credit facilities.
m Health insurance schemes
m Bonus and profit sharing schemes.
m Transportation services in factory
Objectives of Labour Welafre

Several objectives of Labour welfare are mentioned below:
1. Labour welfare provides social comfort to employees.
2. It provides intellectual improvement of employees.
3. To develop sense of responsibility and belongingness among employees.
4. To ensures that the working conditions for employees are of higher standard.
Labour Welfare 535
5. To build stable work force.
6. To reduce absenteeism and labour turnover.
7. To make employees lives good and worth living.
8. To boost productivity and efficiency at the workplace.
9. To provide healthy and proper working conditions.
10. To ensure well being of employees and families.
Approaches or Theories of Labour Welfare

There are some theories which constitutes the conceptual framework of the labour welfare, describe
these theories. Several theories constituting the conceptual framework of labour welfare have so far
been outlined these are :
m Policy theory m Religious theory
m Philanthropic theory m Trusteeship theory
m Paternalistic theory m Placating theory
m Public relations theory m Functional theory
m Social theory
1. Policy theory. This theory is based on the contention that a minimum standard of welfare is
necessary for workers. The assumption on which the theory is based without compulsion,
supervision and fear of punishment, no employer will provide even the barest minimum of
welfare facilities for workers this theory is based on the assumption that man is selfish and self
–centered, and always tries to achieve his own ends, even at the cost of the welfare of others.
According to this theory, owners and managers of industrial undertakings make use of every
opportunity to engage in this kind of exploitation. The sate has therefore to step in to prevent
exploitation by enacting stiff laws to coerce industrialists into offering a minimum standard of
welfare to their workers. Such interference it is felt is in the interests of the progress and welfare
of the state as well. Laws are enacted to compel management to provide minimum wages,
congenial working conditions and reasonable hours of work and social security.
The policy theory involves several stages of implementation
m Enactments
m Periodical supervision
m Punishment
2. Religious theory. The religion theory has two connotations, namely, the investment and
atonement aspects. The investment aspect of the religion theory implies that the fruits of today’s
deeds will be reaped tomorrow. Any action, good or bad is therefore treated as an investment.
Inspired by this belief, some employers plan and organise canteens and creches. The atonement
aspect of the religion theory implies that the present disabilities of a person are the result of the
sins committed by him/her previously. He/she should undertake to do good deeds now to
atone or compensate for his/her sins. There is the story of a big Jain employer who firmly held
the belief that the provision of welfare facilities for workers was outside the duties of the
management. Whatever he did provide was under government compulsion and supervision. It
so happened, however, that the children born to him died as soon as they were born. Later, his
own health suffered. He felt that, as a compensation, or expiration or even as an investment in
a good deed (punyam), he should liberally contribute to the creche in the factory (as well as to
other child-welfare institutions), and also to medical services for his workers. Consequently, in
this particular factory, there came to exist an excellent creche and a well-organised dispensary.
3. Philanthropic theory. Philanthropy means affection for mankind. The philanthropic theory of
labour welfare refers to the provision of good working conditions, creches and canteens out of
pity on the part of the employers who want to remove the disabilities of the workers. Robert
Owen of England was a philanthropic employer, who worked for the welfare of his workers.
The philanthropic theory is more common in social welfare. Student hostels, drinking water
facilities, the rehabilitation of crippled persons, donations to religious and educational
institutions, and so forth are examples of philanthropic deeds.
4. Trusteeship theory. In this theory it is held that the industrialists or employers holds the total
industrial estate, properties and profits accruing from them in trust for the workmen, for himself,
and for society. It assumes that the workmen are like minors and are not able to look after their
own interests that they are ignorant because of lack of education. Employers therefore have the
moral responsibility to look after the interests of their wards, who are the workers.
5. Paternalistic Theory. According to the paternalistic theory, also called the trusteeship theory,
of labour welfare, the industrialist or the employer holds the total industrial estate, properties
and the profits accruing from them, in trust. The property which he/she can use or abuse as
he/she likes is not entirely his/her own. He/she holds it for his/her use, no doubt, but also for
the benefit of his/her workers, if not for the whole society. For several reasons, such as low
wages, lack of education, and so forth the workers are at present unable to take care of themselves.
They are, therefore, like minors, and the employers should provide for their well-being out of
funds in their control. The trusteeship is not actual and legal, but it is moral and, therefore, not
less real.
6. Placating theory. As labour groups are becoming better organised and are becoming demanding
and militant, being more conscious of their rights and privileges that even before, their demand
for higher wages and better standards increases. The placing theory advocates timely and
periodical acts of labour welfare to appease the workers.
7. Public Relations Theory. According to this theory, welfare activities are provided to create a
good impression on the minds of the workers and the public, particularly the latter. Clean and
safe working conditions, a good canteen, creche and other amenities, make a good impression
on the workers, visitors and the public. Some employers proudly take their visitors round the
plant to show how well they have organised their welfare activities.
8. Functional Theory. Also known as the efficiency theory of labour welfare, the functional theory
implies that welfare facilities are provided to make the workers more efficient. If workers are fed
properly, clothed adequately and treated kindly, and if the conditions of their work are congenial,
they will work efficiently. Welfare work is a means of securing, preserving and increasing the
efficiency of labour.
9. Social Theory. The social obligation of an industrial establishment has been assuming great
significance these days. The social theory implies that a factory is morally bound to improve
the conditions of the society in addition to improving the condition of its employees. Labour
welfare, as mentioned earlier, is gradually becoming social welfare.
Principle of Labour Welfare

m Welfare activities will be carried out at all levels in the organisation.
m It will be provided over and above regular wages.
m Adequate and full co-operation shall be provided from management level.
m Periodic assesment of labour welfare measures is essential.
m It shall emphasize on physical, mental, moral and emotional well being of employees.
m It can be a social concept which relates to welfare of employees, their families and community
as a whole.
Labour Welfare 537
Nature of Labour Welfare
Nature of labour welfare constitues following dimensions
1. Labour Welfare enhances efficiency of workers, it improves health and upgrades economic
and social status of workers.
2. Labour welfare provides facilities in addition to regular wages and other economic benefits.
3. Schemes of labour welfare shall be updated time to time according to needs of workers.
4. Employers, government, NGOs etc. introduce labour welfare measures.
5. The main purpose of labour welfare is to enhance the overall standard of living and personality
of the workers.
6. Labour welfare provides facilities which improves workers work-life balance.
Employee Welfare Schemes

Organisations provide welfare facilities to their employees to keep their motivation levels high. The
employee welfare schemes can be classified into two categories viz. statutory and non-statutory welfare
schemes. The statutory schemes are those schemes that are compulsory to provide by an organisation
as compliance to the laws governing employee health and safety. These include provisions provided
in industrial acts like Factories Act 1948, Dock Workers Act (safety, health and welfare) 1986, Mines
Act 1962. The non statutory schemes differ from organisation to organisation and from industry to
industry.
Statutory and Non-Statutory Welfare Schemes

Statutory Welfare Schemes
The statutory welfare schemes include the following provisions:
1. Drinking Water. At all the working places safe hygienic drinking water should be provided.
2. Facilities for sitting. In every organisation, especially factories, suitable seating arrangements
are to be provided.
3. First aid appliances. First aid appliances are to be provided and should be readily assessable
so that in case of any minor accident initial medication can be provided to the needed employee.
4. Latrines and Urinals. A sufficient number of latrines and urinals are to be provided in the office
and premises and are also to be maintained in a neat and clean condition.
5. Canteen facilities. Cafeteria or canteens are to be provided by the employer so as to provide
hygienic and nutritious food to the employees.
6. Spittoons. In every work place, such as ware houses, store places, in the dock area and office
premises spittoons are to be provided in convenient places and same are to be maintained in a
hygienic condition.
7. Lighting. Proper and sufficient lights are to be provided for employees so that they can work
safely during the night shifts.
8. Washing places. Adequate washing places such as bathrooms, wash basins with tap and tap
on the stand pipe are provided in the port area in the vicinity of the work places.
9. Changing rooms. Adequate changing rooms are to be provided for workers to change their
cloth in the factory area and office premises. Adequate lockers are also provided to the workers
to keep their clothes and belongings.
10. Rest rooms. Adequate numbers of restrooms are provided to the workers with provisions of
water supply, wash basins, toilets, bathrooms, etc.
Non-statutory Schemes
Many non-statutory welfare schemes may include the following schemes:
1. Personal Health Care (Regular medical check-ups). Some of the companies provide the facility
for extensive health check-up.
2. Flexi-time. The main objective of the flextime policy is to provide opportunity to employees to
work with flexible working schedules. Flexible work schedules are initiated by employees and
approved by management to meet business commitments while supporting employee personal
life needs.
3. Employee Assistance Programs. Various assistant programs are arranged like external
counselling service so that employees or members of their immediate family can get counselling
on various matters.
4. Harasment Policy. To protect an employee from harassments of any kind, guidelines are
provided for proper action and also for protecting the aggrieved employee.
5. Maternity & Adoption Leave. Employees can avail maternity or adoption leaves. Paternity
leave policies have also been introduced by various companies.
6. Medi-claim Insurance Scheme. This insurance scheme provides adequate insurance coverage
of employees for expenses related to hospitalisation due to illness, disease or injury or
pregnancy.
7. Employee Referral Scheme. In several companies employee referral scheme is implemented to
encourage employees to refer friends and relatives for employment in the organisation.
The very logic behind providing welfare schemes is to create efficient, healthy, loyal and satisfied
labor force for the organisation. The purpose of providing such facilities is to make their work life
better and also to raise their standard of living. The important benefits of welfare measures can be
summarised as follows:
m They provide better physical and mental health to workers and thus promote a healthy work
environment
m Facilities like housing schemes, medical benefits, and education and recreation facilities for
workers’ families help in raising their standards of living. This makes workers to pay more
attention towards work and thus increases their productivity.
m Employers get stable labor force by providing welfare facilities. Workers take active interest in
their jobs and work with a feeling of involvement and participation.
m Employee welfare measures increase the productivity of organisation and promote healthy
industrial relations thereby maintaining industrial peace.
m The social evils prevalent among the labors such as substance abuse, etc. are reduced to a
greater extent by the welfare policies.
Intra-mural and Extra-mural Welfare

(I) Within the organisation services (INTRA-MURAL). The services provided within the organisation
includes medical aid , recreational facilities, libraries,canteens, rest room , washing and bathing
facilities.
(II) Outside the organisation services (EXTRA-MURAL). Welfare arrangement included housing
accommodation transport, children education, sports fields, holiday homes, leave travel facility,
interest free loans.
Labour Welfare 539
AGENCIES OF LABOUR WELFARE
The labour welfare agencies in India and the activities organised by them are:
1. The Central Government. The government of India has set up a Central Board for Workers
Education, consisting of representatives of central and state governments, organisations of
employers and workers and educations. It established 37 regional centrals to cover important
industrial centres. It also provides grants-in-aid to trade unions and institutions for workers,
education.
Various schemes for grant of National Safety Awards to factories covered by the Factories Act
1948 and Ports have been instituted for good safety records. Four such schemes are in operation,
each having 15 awards for good safety records. Each scheme consists of cash prize and certificates
of merit. A National safety council was set up in 1960.
Its main function is to conduct seminar, organise file shows in factories and distribute posters
on the subject of safety. Shram-Vir Awards have been instituted for workers in factories, mines,
plantation and docks. The awards are given in recognition of meritorious performance-such as
suggestions leading to higher productivity or economy or greater efficiency.
2. The State Governments. State governments have also played an important role in providing
the welfare activities to labours in their state. States of Maharashtra, Uttar Pradesh and West
Bengal are the leading states in organising various welfare activities.
Maharashtra. In 1939, Bombay government organised for the first time in the state the Model
Welfare Centres. In 1953, the government passed the Labour Welfare Fund Act and transferred
all welfare activities to the Bombay Labour Welfare Board constituted under the act having
representatives of employers independent persons and women. A welfare fund consisting of
underutilised fines and unpaid wages, donation etc., was set up.
Labour welfare boards maintain a member of labour welfare centres catering to the various
welfare activities for workers and their families. The State government also set up an Institute
for training Labour welfare officers for the factories in the state.
Uttar Pradesh. In 1937, the government created a new Department of Labour under a
commissioner of labour. The department has organised labour welfare centre in almost all big
industrial centres. The regular centres are divided into three categories on the basis of the
activities undertaken by them. Nearly all basic welfare facilities like hospitals and dispensaries,
libraries and reading rooms, sewing classes, maternity centres, crèches indoor and outdoor
games etc. are provided by these centres. The U.P. Government framed factories welfare offices
rules.
According to these rules, every factory employing 500 workers or more will have to appoint a
Labour Welfare Officers and factories employing 2,500 workers or more will have appoint an
additional welfare officer. There are also labour welfare advisory committees, one for the whole
state 19 in districts to advise the government in organising labour welfare activities. The
government passed U.P. Welfare Fund Act 1956 to provide funds for welfare activities.
Other State Governments. The governments of others state have also started labour welfare
centres catering to almost all the labour almost welfare facilities. The states have also undertaken
the projects of housing for labourers in the state.
3. The Employers. At present, the welfare activities are being brought more and more under the
legislation rather than being left to the good sense of the employers. The government has made
certain facilities obligatory on the part of employers under legislations.
The employers have limited financial resources and moreover their attitude towards labour is
apathetic. They consider the expenditure on labour welfare activities as waste of money rather
than an investment.
Even so, some enlightened employers, on their own initiative, have been doing a bit in the
direction of welfare. They have provided medical aids, hospital and dispensary facilities,
canteens, fair prices shops, co-operative societies, recreation club etc. these facilities are apart
from their liability under various control of state legislations.
The Delhi Cloth and General Mills have an Employees Benefit Fund Trust managed by a Board
of trustees. This fund is financed by the contribution of a fixed percentage of the amount
distributed as dividend, unclaimed wages and fines etc.
4. The Trade Unions. The welfare works undertaken by the trade union agency are negligible
because of lack of organisation and financial stringency. Only few unions, like the Ahmadabad
Textile Labour Associations, the Mazdoor Subha of Kanpur, Indore Mill Mazdoor Sangh and
Bank Employees Association, have devoted themselves to welfare work. The Ahmadabad textile
Labour association spends nearly 30 % of its income on welfare activities.
5. Other Agencies-There are two options of labour welfare work by other agencies.
Social Service Agencies. Several social service agencies such as Bombay Social Service League
started by the servants of India society and similar leagues in Madras and Bengal, the Shiv
Sena Society, the Bombay Presidency Woman’s Council, the Maternity and In fact Welfare
Association, the Y.M.C.A. The depressed classes mission society and many other mission
societies play an important role in organising the welfare work, both the helping employers
and labour and by independent efforts. These agencies have provided various welfare activities,
like education, indoor and outdoor games, establishment of co-operative societies, night schools
and libraries etc.
Municipalities. A few municipalities and municipal corporations have also taken special welfare
measures such as co-operative credit societies, Montessorie and nursery schools, adult schools,
crèches, etc. These progressive municipalities are of Bombay, Calcutta, Delhi, Kanpur, Madras,
Ajmer, etc.
Labour Welfare 541

1. All those activities of the employers which (A) Economic services
are directed towards providing the employ- (B) Recreational services
ees certain facilities and services in addi- (C) Facilitative services
tion to wages and salary (D) All of these
(A) Labour welfare
8. Facilitative services included
(B) Employee development
(A) Education
(C) Both A & B
(B) Medical Facilities
(D) None of these
(C) Housing Facilities
2. _________is a comprehensive term which (D) All of these
may include any activity which is connected
9. The welfare provision under factories act
with social, moral and economic betterment
1948 was
of workers.
(A) Labour welfare (A) Washing facilities
(B) Employee development (B) Facilities for storing and drying clothes
(C) Both A& B (C) Facilities for sitting
(D) All of these
(D) All of these
10. Which of the following is not the welfare
3. The amount sufficient to enable a worker to
provision under factories act 1948?
live in resonable comfort, having regard to
all obligations to which an average worker (A) First aid appliances
would ordinarily be subject to (B) Canteen
(A) Living Wage (C) Shelter rest room and lunch room
(B) Fair Wage (D) None of these
(C) Minimum Wage 11. Which one of the following is not a welfare
(D) Nominal Wage provision under factories act, 1948
4. Which of the following is/are the types of (A) First aid appliances
labour welfare facilities? (B) Canteen
(A) Intra-mural (B) Extra-mural (C) Drinking water
(C) Both A & B (D) All of these (D) Crèche
5. The services provided within the organisa- 12. Welfare officers are to be appointed if
tion is called organisation is engaging _______or more
(A) Intra-mural (B) Extra-mural employees.
(C) Both A&B (D) All of these (A) 500 (B) 100
6. The services provided outside of the (C) 600 (D) None of these
organisation is called 13. Crèche is to provided if __________or more
(A) Intra-mural (B) Extra-mural lady employees are engaged.
(C) Both A& B (D) All of these (A) 30 (B) 60
7. The welfare activities classified into three (C) 40 (D) None of these
categories that is/are 14. An adult worker can work up to _____ hrs.
in a day as per factories act, 1948.
(A) 8 (B) 9 (A) 500 (B) 100
(C) 10 (D) None of these (C) 600 (D) None of these
15. Canteen is to be provided if engaging 24. There should be provision for shelters, rest
employees are more than _____ persons. rooms and lunch room in factories employ-
(A) 150 (B) 250 ing more than ______workers.
16. If the factory employs more than 1000 work- (C) 100 (D) None of these
ers, they should appoint qualified_______ 25. One first aid box in a factory shall be pro-
to carry out the prescribed duties. vided for every _______workers.
(A) Safety officer (B) Welfare officer (A) 150 (B) 250
(C) Security officer (D) None of these (C) 100 (D) None of these
17. Leave with wages is allowed for employees 26. For more then _________workers in a fac-
if they work for_________days in a month. tory, provision of cooling of drinking water
(A) 15 (B) 25 shall be made.
18. The factories employing more than 1000 (C) 100 (D) None of these
workers are required to submit their plan 27. The maximum permissible working hour in
for approval to a a week for the adult workers are
(A) Chief Inspector of Factory (A) 15 (B) 25
(B) Additional Chief Inspector of Factories (C) 48 (D) None of these
(C) Deputy Chief Inspector of Factories 28. In one day the maximum permissible work-
(D) None of these ing hour for the adult workers are
19. A weekly holiday in the factories for the first (A) 9 (B) 8
time was introduced in the year. (C) 5 (D) None of these
(A) 1948 (B) 1923 29. Working hours for children in factory are
(C) 1931 (D) None of these limited to _____hours.
20. The workers shall be provided with mini- (A) 6 (B) 5
mum ________litres of water for everyday (C) 4 ½ (D) None of these
under the Factories Act. 30. For overtime work a worker is entitled a
(A) 2 (B) 3.5 wage at the rate of_______his ordinary rate
(C) 5 (D) 4.5 of wages.
21. Time allotted for the purpose of washing (A) Twice (B) Half
is_________minutes before the end of days (C) Thrice (D) None of these
work. 31. To avoid overcrowding in factories ____ m3
(A) 10 (B) 5 of space per worker is required.
(C) 15 (D) All of these (A) 14.2 (B) 14.3
22. The occupier of every factory employing (C) 14.1 (D) None of these
_____or more workers shall plant and main- 32. While drafting factories act, 1948 the services
tain trees within the premises of the factory. of_______were utilised.
(A) 500 (B) 250 (A) Sir Wildfrid Garsett
(C) 200 (D) 100 (B) Sir William
23. One ambulance room in a factory shall be (C) Taylor
provided employing more than___workers. (D) None of these
Labour Welfare 543
33. The first act was passed on the recommen- (A) 30 (B) 60
dation of the (C) 20 (D) All of these
(A) Factory commission 41. If an employee alleges that he was working
(B) Pay commission for the employer and the employer denies it,
(C) Royal commission who has to prove this fact?
(D) None of these (A) Employer
34. A child who has not completed his _______ (B) Employee
year is prohibited to work in a factory. (C) Authority
(A) 15 (B) 25 (D) Employer and Authority.
(C) 14 (D) None of these 42. The annual return under the Factories Act
35. Every workers who has worked for a period shall be submitted to Inspector of Factories
of _______or more in factory during a cal- on or before______________.
endar years qualified for annual leave (A) 31st January (B) 31st December
(A) 250 (B) 255 (C) 30th April (D) 31st March
(C) 240 (D) None of these 43. Where males are employed, there shall be at
36. __________is required to appoints inspec- least one latrine seat for every________male
tors for the enforcement of the act by notifi- workers shall be provided.
cation in the official gazette. (A) 20 (B) 50
(A) State government (C) 30 (D) 100
(B) Central government 44. A Committee of expert on welfare facilities
(C) Both for industrial workers was constituted by
(D) None of these the ______ in 1963.
37. If the factory employs more than 1000 work- (A) Indian Labour Organisation
ers, they should appoint qualified________ (B) Intra-mural welfare
to carry out the prescribed duties (C) Extra-mural welfare
(A) Safety officer (D) Non-statutory welfare
(B) Welfare officer 45. The examination of eye sight of certain work-
(C) Security officer ers under the factories act shall be done at
(D) None of these least once in every _______ months.
38. The expression of “Time card” in Form No. (A) 6 (B) 12
25. Shall be substituted as “Service card” by (C) 18 (D) 24
an amendment in the Factories Act from the 46. The number of elected workers in the can-
year teen managing committee shall not be more
(A) 1984 (B) 2005 than________or less than________.
(C) 2004 (D) 1981 (A) 5, 2 (B) 20, 10
39. Under the Section 41. A of the Factories Act, (C) 15, 10 (D) 10, 5
the Site Appraisal Committee shall be con- 47. Which of the following are the approaches
stituted once in __________ year under the of the labour welfare?
chairmanship of Chief Inspector of Facto- (A) Policing theory (B) Religion theory
ries. (C) Philanthropic (D) All of these
(A) 5 (B) 2
48. Which of the following are not the ap-
(C) 3 (D) 1 proaches of the labour welfare?
40. To close down a factory, the occupier has to (A) Paternalistic theory
give________days notice to the authorities. (B) Placating theory
(C) Public relation theory (C) Public relation theory
49. Approaches of the labour welfare includes 56. “Welfare work is a means of securing, pre-
(A) Functional theory serving and increasing the efficiency of the
(B) Social theory workers
(C) Public relation theory (A) Functional theory
(D) All of these (B) Social theory
50. A welfare State that enacts legislation un- (C) Public relation theory
der which management are compelled to (D) All of these
provide basic amenities to the workers. 57. The_________ implies that a industrial es-
(A) Policing theory (B) Religion theory tablishment is morally bound to improve the
(C) Philanthropic (D) All of these condition of the employees.
51. This theory has two aspects namely, the in- (A) Functional theory
vestment aspects and atonement aspects. (B) Social theory
(A) Policing theory (B) Religion theory (C) Public relation Theory
(C) Philanthropic (D) All of these (D) All of these
52. Which theory of the labour welfare provides 58. Labour welfare may be viewed as a
the good working condition, crèches and (A) Social concepts
canteen facilities out of the pity part of the (B) Relative concepts
employer to remove disabilities of a person. (C) Total concepts
(A) Policing theory (D) All of these
(B) Religion theory 59. The concepts of welfare, which implies the
(C) Philanthropic theory welfare of man, his family and his commod-
(D) All of these ity, is known as
53. In this theory the industrialist hold the en- (A) Social concepts
tire industrial estate, properties and the prof- (B) Relative concepts
its accruing from them in trust. (C) Total concepts
(A) Paternalistic theory (D) All of these
(B) Placating theory 60. Which of the following concepts of a wel-
(C) Public relation theory fare is a desirable state of existence involv-
(D) All of these ing the physical, mental, social & well being
54. When workers are organised and union are (A) Social concepts
strong management has to appease them. As (B) Relative concepts
crying children are pacified by sweet. (C) Total concepts
(A) Paternalistic theory (D) All of these
(B) Placating theory 61. Scope of social security are of the following
(C) Public relation theory types
(D) All of these (A) Social insurance
55. Under this theory welfare facilities provided (B) Social assistance
by the employers to the employees, create (C) Both A&B
good image of the employer in the mind of (D) All of these
the general public
62. Under__________workers and employers
(A) Paternalistic theory make periodical contribution to a fund, with
(B) Placating theory and without a subsidy from the government
Labour Welfare 545
(A) Social insurance 69. Types of the unemployment includes
(B) Social assistance (A) Voluntary (B) Involuntary
(C) Both A&B (C) Both A & B (D) All of these
(D) All of these 70. Unemployment which result from the with-
63. Under this scheme, the government provides drawals of some persons from employment
benefits to a person of small means in suffi- for diverse reasons is known as
cient quality so that their minimum standard (A) Voluntary (B) Involuntary
need could be satisfied (C) Both A& B (D) All of these
(A) Social insurance 71. Unemployment due to non availability of
(B) Social assistance work during some periods when the work-
(C) Both A& B ers want to work is known
(D) All of these (A) Voluntary (B) Involuntary
64. The first and foremost objective of a welfare (C) Both A& B (D) All of these
state is 72. Visible, seasonal and distinguished unem-
(A) Welfare facilities ployment are the forms of _____ unemploy-
(B) Full employment ment.
(C) Both A& B (A) Voluntary (B) Involuntary
(D) All of these (C) Both A & B (D) All of these
65. Which was based on the principle of com- 73. Unemployment due to reasons like mobility
pulsory mutual aid ? of labour, ignorance of job opportunity etc.
(A) Social insurance comes under
(B) Social assistance (A) Frictional unemployment
(C) Both A & B (B) Cyclical unemployment
(D) All of these (C) Seasonal unemployment
66. _________occurs when a person who wants (D) All of these
and is able to work but can’t find work. 74. Unemployment caused by trade cycles at
(A) Unemployment regular interval is known as
(B) Underemployment (A) Frictional unemployment
(C) Both A & B (B) Cyclical unemployment
67. __________includes workers that are highly (D) All of these
skilled but employed in low paying jobs and 75. “Labour at present wastefully used” signi-
workers employed part time but rather work fies
full time. (A) Disguised unemployment
(A) Unemployment (B) Cyclical unemployment
(B) Underemployment (C) Seasonal unemployment
(D) All of these 76. The lack of productive work during some
68. Which of the following is the causes of the periods of the years is known as
unemployment? (A) Frictional unemployment
(A) Rapid technological changes (B) Cyclical unemployment
(B) Recessions (C) Seasonal unemployment
(C) Seasonal factors (D) All of these
(D) All of these
77. The total absence of jobs for certain workers (A) Internal
for some periods comes under. (B) External
(A) Frictional unemployment (C) Both A & B
(B) Cyclical unemployment (D) All of these
(C) Visible unemployment 84. Which of the following is the internal prob-
(D) All of these lem of the labour force ?
78. Unemployment arises owing to structural (A) Migratory character
changes in the economy of a country is (B) Homogenous character
known as (C) Poor economic condition
(A) Frictional unemployment (D) All of these
(B) Cyclical unemployment 85. Internal problem of the labour force are con-
(C) Structural unemployment cerned with
(D) All of these (A) Illiterate labour
79. Unemployment which is caused by the (B) Ineffective leadership
changes in the techniques of production is (C) Lack of unity
known as (D) All of these
(A) Frictional unemployment
86. External problem of the labour force are con-
(B) Cyclical unemployment cerned with
(C) Technological unemployment (A) Political pressure
(D) All of these (B) Less legal support
80. Current daily status is estimated as the ag- (C) Opposition by industrialist
gregate of all the unemployed days of all per- (D) All of these
sons in the labour force during the _______.
87. Measures to the strengthen of the Labour
(A) Week (B) Year
force in India is
(C) Days
(A) Education of workers
(D) All of these
(B) Economic and social uplift
81. According to current weekly status unem- (C) Effective leadership
ployment a person so unemployed if he had
(D) All of these
worked even for ______ but was seeking or
available for work. 88. Which of the following is not a method of
social security?
(A) One hour during week
(B) Year (A) Social Action
(B) Social Assistance
(C) Days
(D) All of these (C) Social Insurance
(D) Mutual Assistance
82. A person is unemployed in ______unem-
ployment if he was not working, but was 89. Royal commission of labour was set up in
either seeking or available for work for a ma- (A) 1948
jor parts of the reference years. (B) 1934
(A) Current weekly status (C) 1931
(B) Current daily status (D) None of these
(C) Usual principle status 90. National commission of labour was set up
(D) All of these in
83. Which is the problem of the labour force in (A) 1948 (B) 1969
India? (C) 1931 (D) None of these
Labour Welfare 547
91. Which of the following statement about char- 98. Who was the father of labour welfare move-
acteristics of labour is not true ment
(A) Labour is a perishable commodity (A) K.N. Vaid (B) Robert Owen
(B) Labour cannot be separated from the (C) S.C. Pant (D) All of these
person 99. The centre theme of paternalistic theory of
(C) Workers have no reserve price labour is
(D) Labour is as flexible and mobile as capi- (A) Welfare increases workers efficiency
tal (B) Employee are treated as the guardians
92. Which of the following statement about of the industrial property
labour market is not true? (C) Worker are treated as family member
(A) Labour is a like commodity market is (D) Labour is as flexible and mobile as capi-
analysed by supply, demands and price tal
equilibrium 100. Which of the following is not Extra –mural
(B) Labour market is relatively more local labour welfare measure
than commodity (A) Canteen (B) Sports
(C) Unlike a commodity market, the relation- (C) Hospital (D) All of these
ship between a buyer and sellar in
101. Among the following which cannot be said
labour market is not temporary
to be a statutory labour welfare facility un-
(D) Monopoly in the labour market is high.
der the factories act, 1948
93. Who among the following is not included (A) Canteen
in labour force
(B) First Aid Box
(A) Workers
(C) Crèche
(B) Self employed people
(D) Housing
(C) Domestic servants
102. The centre theme of paternalistic theory of
(D) House wives
labour welfare is
94. The author of the book “principle of labour (A) Welfare increases workers efficiency
welfare” is
(B) Employee are treated as the guardians
(A) K.N. Vaid (B) M.V. Murthy of the industrial property
(C) S.C. Pant (D) All of these (C) Worker are treated as family member of
95. Trusteeship theory of labour welfare was the industrial family
given by (D) Welfare is a kind of investment
(A) G.L. Nanda (B) M.K. Gandhi 103. Trusteeship theory of labour welfare was
(C) Indira Gandhi (D) All of these proposed by
96. Visible, seasonal and distinguished unem- (A) M.K. Gandhi
ployment are the forms of _________unem- (B) V.V. Giri
ployment. (C) Bal Gangadhar
(A) Voluntary (B) Involuntary (D) Jawaharlal Nehru
104. Welfare programme undertaken outside the
97. Which of the following is not intra-mural organisation is called
labour welfare measure (A) Statutory welfare programme
(A) Canteen (B) Intra-mural welfare programme
(B) Creche (C) Extra-mural welfare programme
(C) Housing and hospital facility (D) Non-statutory welfare programme
(D) All of these
105. Which of the following does not relate to (A) Policing theory and placating theory
Intra-mural labour welfare activity? (B) Religious theory and Trusteeship theory
(A) First aid box (C) The Philanthropic theory of labour wel-
(B) Drinking water fare
(C) Education facilities for children (D) Productivity theory of labour welfare
(D) Provision of the canteen 113. Who is called the father of labour welfare
106. Under which legislation, provision of hous- movement?
ing is provided (A) Frederick Herzberg
(A) The factories act (B) Robert Owen
(B) The mines act (C) F.W. Taylor
(C) The dock workers act (D) Charles Babbege
(D) The plantation labour act 114. Which of the following is not an agency of
107. Appointment of the welfare officer is a statu- providing labour welfare?
tory requirement according to (A) State
(A) The factories act (B) Employer
(B) The ID act 1947 (C) Transport Facility
(C) Trade union act, 1926 (D) Customers
(D) The plantation Labour act 115. Which of the following is not a statutory wel-
108. One first aid box must be provided for every fare facility under the factories act, 1948
(A) 150 workers (B) 200 workers (A) Canteen
(C) 250 workers (D) 350 workers (B) Sport facility
109. Which of the following is not the theories of (C) Crèche
the labour welfare (D) First-Aid appliances
(A) Policing theory and placating theory 116. Who among the following are not included
(B) Religious theory and trusteeship theory in the labour force of a country?
(C) Functional theory and public relations (A) Employees (B) Employer
theory (C) Crèche (D) Housewives
(D) Subsistence theory and Residual Claim- 117. The programme generally providing ben-
ant theory efits for meeting the minimum needs of per-
110. Which of the following is not extra –mural son of small means are called
labour welfare measure (A) Social insurance
(A) Canteen (B) Social assistance
(B) Crèche (C) Mutual Aid
(C) Rest room, shelter and lunch room (D) None of the above
(D) Housing and hospital facility 118. Who Said, “ Labour welfare means anything
111. Which of the following is not a labour wel- done for the comfort and improvement, in-
fare agency? tellectual and social, of the employees over
(A) Bharat Sewak Samaj and above the wages paid which is not a
(B) Harijan Sewak Sangh necessity of the industry.”
(C) Central Social Welfare Board (A) Gandhi
(D) Standing Labour Committee (B) Arthur James Todd
(C) V.V. Giri
112. Which of the following is not a principle of
labour welfare? (D) None of the above
Labour Welfare 549
119. Who said, “ Labour welfare may be under- (C) Adequate and full co-operation shall be
stood and including such services facilities provided from management level
and amenities which may be established in (D) All of these
vicinity of undertaking to perform their work 124. Which of the following is Non statutory
in healthy and congenial environment and schemes includes?
to avail of facilities which improve their
(A) Flexi-time
health and bring high morale.”
(B) Personal Health Care
(A) Industrial Labour Organisation
(C) Maternity & Adoption Leave
(B) Arthur James Todd
(C) V.V. Giri
(D) None of the above 125. Which of the following is the labour welfare
agencies?
120. Which of the following is the Economic wel-
(A) Bombay Social Service League
fare programs under labour welfare?
(B) Y.M.C.A.
(A) Subsidised consumer goods including
(C) Bombay Presidency Woman’s Council
grains, vegetables, milk, oil and other
daily requirements (D) All of the above
(B) Banking services and credit facilities 126. Which of the following is not the labour wel-
(C) Health insurance schemes fare agencies?
(D) All of these (A) Bombay Social Service League
121. Health Welfare facilities of labour welfare (B) Shive Sena Society
includes (C) Both of the above
(A) Health centre should be provided (D) None of the above
within factory 127. The state has therefore to step in to prevent
(B) Ambulance service should be provided exploitation by enacting stiff laws to coerce
within factory in case of any emergency industrialists into offering a minimum stan-
(C) Free medical checkups of workers and dard of welfare to their workers.
health and diet counselling of workers (A) Policing theory
(D) All of these (B) Religion theory
122. Health Welfare facilities of labour welfare (C) Philanthropic theory
includes (D) All of these
(A) Proper ventilation, lighting, tempera- 128. The religion theory has two connotations,
ture, cleanliness, seating arrangements namely, the investment and atonement as-
etc. pects. The investment aspect of the religion
(B) Proper safety measures for workers theory implies that the fruits of today’s deeds
should be there will be reaped tomorrow
(C) Sufficient urinals, lavatories and bath- (A) Policing theory
ing facilities should be provided and (B) Religion theory
cleaned regularly (C) Philanthropic theory
123. Principles of Labour Welfare are 129. The _________ theory of labour welfare re-
(A) Welfare activities will be carried out at fers to the provision of good working condi-
all levels in the organisation tions, crèches and canteens out of pity on
(B) It will be provided over and above regu- the part of the employers who want to re-
lar wages move the disabilities of the workers.
(A) Policing
(B) Religion 135. The____________ like Ahmadabad Textile
(C) Philanthropic Labour Associations, the Mazdoor Sabha of
(D) All of these Kanpur, Indore Mill Mazdoor Sangh and
Bank Employees Association, have devoted
130. In this theory it is held that the industrial-
themselves to welfare work.
ists or employers holds the total industrial
estate, properties and profits accruing form (A) Trade union (B) Welfare agencies
them in trust for the workmen, for himself, (C) Government (D) All of the above
and for society. 136. Drinking water, facilities for sitting, first aid
(A) Trusteeship theory appliances, latrines and urinals etc. comes
(B) Placating theory under the category of
(C) Public relation theory (A) Statutory welfare programme
(D) All of these (B) Intra-mural welfare programme
131. According to_____________also called the (C) Extra-mural welfare programme
trusteeship theory, of labour welfare, the in- (D) Non-statutory welfare programme
dustrialist or the employer holds the total 137. Spittoons, Washing places, Rest rooms etc.
industrial estate, properties and the profits comes under the category of
accruing from them, in trust. (A) Statutory welfare programme
(A) Paternalistic theory (B) Intra-mural welfare programme
(B) Placating theory (C) Extra-mural welfare programme
(C) Public Relation theory (D) Non-statutory welfare programme
(D) All of these 138. __________can be implemented to employee
132. According to this theory, welfare activities to refers friends and relatives for employ-
are provided to create a good impression on ment in the organisation.
the minds of the workers and the public, par- (A) Employee referral scheme
ticularly the latter (B) Harassment policy
(A) Paternalistic theory (C) Maternity & adoption leave
(B) Public relations (D) All of the above
(C) Public relation theory 139. This insurance scheme provides adequate
(D) All of these insurance coverage of employees for ex-
133. The__________ implies that a factory is penses related to hospitalisation due to ill-
morally bound to improve the conditions of ness, disease or injury or pregnancy
the society in addition to improving the con- (A) Employee referral scheme
dition of its employees. (B) Medi-claim insurance scheme
(A) Paternalistic theory (C) Maternity & adoption leave
(B) Social theory (D) All of the above
(C) Public relation theory 140. The___________ are those schemes that are
(D) All of these compulsory to provide by an organisation
134. Which of the following is non statutory as compliance to the laws governing em-
schemes includes? ployee health and safety.
(A) Employee referral scheme (A) Statutory schemes
(B) Harassment policy (B) Intra-mural welfare
(C) Maternity & adoption leave (C) Extra-mural welfare
(D) All of the above (D) Non-statutory welfare
Labour Welfare 551
141. ____________include provisions provided Codes :
in industrial acts like factories act 1948, (a) ( b) ( c) ( d)
Dock Workers Act (safety, health and wel- (A) (iv) (iii) (ii) (i)
fare) 1986, Mines Act 1962. (B) (iii) (iv) (i) (ii)
(A) Statutory schemes (C) (iii) (ii) (i) (iv)
(B) Intra mural welfare (D) (iii) (ii) (iv) (i)
(C) Extra mural welfare
(D) Non Statutory welfare
Group–I Group-II
142. Match the following (a) Policing Theory(i) Labour Welfare
List –I List-II work is taken up in
(a) Trusteeship (i) Elton Mayo a spirit of Atone-
Theory ment
(b) Revoluntary (ii) Labour Welfare (b) Religious (ii) Passing the laws
Theory Theory and strictly imple-
(c) Placating Theory (iii) Karl Marx menting them to as-
(d) Human Relation (iv) Gandhi certain that welfare
Theory measures are pro-
Codes : vided
(a) ( b) ( c) ( d) (c) Functional (iii) Welfare work is a
(A) (iv) (iii) (ii) (i) Theory means of securing
preserving and in-
(B) (iii) (iv) (i) (ii)
creasing
(C) (iii) (iv) (ii) (i)
(d) Placating (iv) Workers are be
(D) (iii) (ii) (iv) (i)
Theory coming conscious
143. Match the following of their right and
Group–I Group-II welfare work is the
(a) Provision of (i) A place for every- best means of secur-
Housing thing and every- ing their Coopera-
thing in place tion
(b) The new Lanark (ii) The Factories Act Codes :
Experiment (a) ( b) ( c) ( d)
(c) Provision of (iii) Robert Owen (A) (iv) (iii) (ii) (i)
safety officer (B) (ii) (i) (iii) (iv)
(d) House Keeping (iv) Plantation Labour (C) (iii) (ii) (i) (iv)
Act (D) (iii) (ii) (iv) (i)
ANSWER KEY
1. (C) 2. (A) 3. (A) 4. (C) 5. (A) 6. (B) 7. (D) 8. (D) 9. (D) 10. (D)
11. (C) 12. (A) 13. (A) 14. (B) 15. (B) 16. (A) 17. (C) 18. (A) 19. (B) 20. (D)
21. (A) 22. (D) 23. (A) 24. (A) 25. (A) 26. (B) 27. (C) 28. (A) 29. (C) 30. (A)
31. (A) 32. (A) 33. (A) 34. (C) 35. (C) 36. (A) 37. (A) 38. (B) 39. (A) 40. (B)
41. (B) 42. (A) 43. (A) 44. (A) 45. (D) 46. (A) 47. (D) 48. (D) 49. (D) 50. (A)
51. (B) 52. (C) 53. (A) 54. (B) 55. (C) 56. (A) 57. (B) 58. (D) 59. (A) 60. (C)
61. (C) 62. (A) 63. (B) 64. (B) 65. (A) 66. (A) 67. (B) 68. (D) 69. (C) 70. (A)
71. (B) 72. (B) 73. (A) 74. (B) 75. (A) 76. (C) 77. (C) 78. (C) 79. (C) 80. (A)
81. (A) 82. (C) 83. (C) 84. (D) 85. (D) 86. (D) 87. (D) 88. (A) 89. (B) 90. (B)
91. (D) 92. (D) 93. (D) 94. (B) 95. (B) 96. (B) 97. (C) 98. (B) 99. (B) 100. (A)
101. (D) 102. (B) 103. (A) 104. (C) 105. (C) 106. (D) 107. (A) 108. (A) 109. (D) 110. (D)
111. (D) 112. (D) 113. (B) 114. (D) 115. (B) 116. (D) 117. (B) 118. (B) 119. (A) 120. (D)
121. (D) 122. (D) 123. (D) 124. (D) 125. (D) 126. (C) 127. (A) 128. (B) 129. (C) 130. (A)
131. (A) 132. (B) 133. (B) 134. (D) 135. (A) 136. (A) 137. (A) 138. (A) 139. (B) 140. (A)
141. (A) 142. (A) 143. (C) 144. (B)
UNIT
LABOUR MARKET
A Labour market is the place where workers and employees interact with each other. In the labour
market, employees compete to hire the best, and the workers compete for the best satisfying job. In
simple words : A labour market in an economy functions with demand and supply of labour. In this
market, labour demand is the firm’s demand for labour and supply is the worker’s supply of labour.
The supply and demand of labour in the market is influenced by changes in the bargaining power.
LABOUR MARKET
Meaning
The “labour market” refers to the system in which people who want work, find employers who want
workers. This system is referred to as a market because it follows to a large extent the laws of supply
and demand. When there are many people chasing few jobs, there is downward pressure on wage
rates. Workers are forced to accept lower rates of pay in order to get job. But when there are many jobs
available and only a few workers who want them, there is upward pressure on wage rates. Employers
are forced to pay higher rates of pay to get workers. However the labour market is not a perfect market
and there are many other factors that intervene to prevent wage rates from dropping when there is an
oversupply of workers for the number of jobs available.
A labour market is defined as a pool of all potential workers who compete for jobs. It also
includes the employers who compete for workers. Labour markets are based on the supply and demand
of labour in a country or a specific location that are able and willing to work.
Labour Force. Labour force includes all persons classified either as employed or unemployed
during a specified period of time, usually a day or a week. Labour force can be categorized as self-
employed, wage and salary earners, casual workers and unemployed.
Labour Market Related Terms

1. Casual Workers. Casual workers are those workers who are generally employed by small
entrepreneurs on daily or weekly basis on a low wage rate. They are not entitled to any paid
holiday leave or paid sick leaves.
2. Unemployed persons. The persons in the labour market who are without work, that is, without
paid employment or self-employment and are currently either available for work or are seeking
any work are considered to be unemployed.
3. Labour force participation rate. It is the number of persons in the labour force as a percentage
of the working-age population. The working-age population is the population above a certain
reference age like 15 years old and over or 15–64, etc.
(553)
4. Employment rate. It is ratio of employed persons to the total labour force. It is the percentage of
working age people who have jobs or are employed.
5. Unemployment rate. It is the ratio of unemployed people to the total labor force.
6. Underemployed persons. Workers who are employed, but not in the desired capacity, whether
in terms of compensation, hours, or level of skill and experience. The skills of such persons are
underutilised, for example paying low wages to a highly skilled employee. Underemployment
also refers to a situation where a major portion of labor force is unemployed.
7. Underemployment rate. It is the ratio of underemployed to either total labor force or total
employment.
Characteristics of Indian Labour

1. Migratory character 2. Low level of literacy
3. Indebtedness of labour 4. Heterogeneity of labour
5. High absenteeism 6. High labour turnover
7. Un-united labour force 8. Ill health of labour
9. Low efficiency
Labour Market Trends

Downsizing
m Businesses are downsizing to improve productivity and competitiveness.
m Businesses can downsize by contracting out or outsourcing work normally done by their own
employees.
Self-Employment
m The loss of work from the manufacturing sector, the introduction of new technology and the
downsizing of businesses has created a tendency towards self-employment.
m There is government assistance available for people to start a business if they qualify.
Contract work. Employers are increasingly prone to hiring employees under fixed term contracts
e.g. one year. This gives employers more flexibility to shape the work force when economic conditions
are changing.
Training and education. A university education is more commonplace than 30 years ago. University
graduates face stronger competition for jobs. Workers need to return to training and education more
frequently during their careers. As technology changes, workers have to be updated. Retraining is
required when changing careers.
Working from home. Information technology has made it possible for many people to work from
home and still be tied into the business computer network. Working from home has advantages for
both employer and employee.
Classification of Labour Market

1. Perfect market is defined by several conditions, collectively called perfect competition. Among
these conditions are
m Perfect market information
m No participant with market power to set prices
m No barriers to entry or exit
m Equal access to production technology
Labour Market 555
The following assumptions hold:
(a) there is a large number of buyers;
(b) there is a large number of sellers;
(c) the quantity of goods bought by any individual transactor is so small relative to the total
quantity traded that individual trades leave the market unaffected;
(d) the units of goods sold by different sellers are the same - the product is homogeneous;
(e) there is perfect information = all buyers and sellers have complete information on the
prices being asked and offered in other parts of the market; and
(f) there is perfect freedom of entry to and exit from the market
Main Features of Perfect Competitions

The following are the characteristics or main features of perfect competition :
1. Many Sellers. In this market, there are many sellers who form total of market supply.
Individually, seller is a firm and collectively, it is an industry. In perfect competition, price of
commodity is decided by market forces of demand and supply, i.e., by buyers and sellers
collectively. Here, no individual seller is in a position to change the price by controlling supply.
Because individual seller’s individual supply is a very small part of total supply. So, if that
seller alone raises the price, his product will become costlier than other and automatically, he
will be out of market. Hence, that seller has to accept the price which is decided by market forces
of demand and supply. This ensures single price in the market and in this way, seller becomes
price taker and not price maker.
2. Many Buyers. Individual buyer cannot control the price by changing or controlling the demand.
Because individual buyer’s individual demand is a very small part of total demand or market
demand. Every buyer has to accept the price decided by market forces of demand and supply.
In this way, all buyers are price takers and not price makers. This also ensures existence of
single price in market.
3. Homogenous Product. In this case, all sellers produce homogeneous, i.e., perfectly identical
products. All products are perfectly same in terms of size, shape, taste, colour, ingredients,
quality, trade marks etc. This ensures the existence of single price in the market.
4. Zero Advertisement Cost. Since all products are identical in features like quality, taste, design
etc., there is no scope for product differentiation. So advertisement cost is nil.
5. Free Entry and Exit. There are no restrictions on entry and exit of firms. This feature ensures
existence of normal profit in perfect competition. When profit is more, new firms enter the
market and this leads to competition. Entry of new firms competing with each other results into
increase in supply and fall in price. So, this reduces profit from abnormal to normal level. When
profit is low (below normal level), some firms may exit the market. This leads to fall in supply.
So remaining firms raise their prices and their profits go up. So again this ensures normal level
of profit.
6. Perfect Knowledge. On the front of both, buyers and sellers, perfect knowledge regarding
market and pricing conditions is expected. So, no buyer will pay price higher than market price
and no seller will charge lower price than market price.
7. Perfect Mobility of Factors. This feature is essential to keep supply at par with demand. If all
factors are easily mobile (moveable) from one line of production to another, then it becomes
easy to adjust supply as per demand. Whenever demand is more additional factors should be
moved into industry to increase supply and vice versa. In this way, with the help of stable
demand and supply, we can maintain single price in the Market.
8. No Government Intervention. Since market has been controlled by the forces of demand and
supply, there is no government intervention in the form of taxes, subsidies, licensing policy,
control over the supply of raw materials, etc.
9. No Transport Cost. It is assumed that buyers and sellers are close to market, so there is no
transport cost. This ensures existence of single price in market.
m Imperfect market. A market where information is not quickly disclosed to all participants
in it and where the matching of buyers and sellers isn’t immediate. Generally speaking, it
is any market that does not adhere rigidly to perfect information flow and provide instantly
available buyers and sellers.
m Monopolistic markets. Monopoly is a trade market controlled by only one company, hence
the prefix mono which means one. Its cause is greed. By being the only supplier of a good
or service, the price is not competitive. The company can overcharge and needs not fear
losing revenues to competing companies, because there is no competitor.
The two main causes of monopoly are:
1. government regulation that prevent anyone from competing; and
2. declining average costs- so that economies of scale mean that it would be more expensive for
two firms to produce the desired amount of a good or service than for two or more (this is
known as a ‘natural monopoly’).
A Purely Competitive Labour Market

m Numerous firms compete with one another to hire a specific type of labour.
m Each of many qualified workers with identical skills supplies that type of labour.
m Individual firms and individual workers are “wage takers;” neither exerts control over the
market wage rate:
1. Market Demand for Labour-market labour demand curve for a particular labour service is
the horizontal sum of the labour demand curves of the individual firms.
2. Market supply of Labour (assuming that workers individually compete for jobs).
Purely Competitive Firm in a PC

Labour Market Labour Market
S
We
S = MRP
D = MRP D = MRP
Qe Qe QL
Labour Market Equilibrium

m equilibrium wage rate and level of employment in PC labour market = intersection of market
labour D curve and market S curve.
m each individual firm finds it profitable to hire this type of labour up to point at which
MRP = MRC.
m The area under the demand curve represents the total costs.
Labour Market 557
Monopsony Model
PC labour market: employer hires too small an amount of labour to influence the market wage rate :
Monopsony = a market in which a single employer of labour has substantial buying (hiring)
power
Characteristics.
m only a single buyer of a particular type of labour
m relatively immobile type of labour, e.g. geographically or backward class workers would have
to acquire new skills
Example of pure monopsony power: silver-mining company is the only source of employment in
a small town.
MRC
PL
We
D = MRP
QL
Upward-Sloping Labor Supply to Firm
m When a firm employs most of the available supply of a certain kind of labour, hiring more/less
affects the wage rate.
m If a firm is large relative to the labour market size, it must pay a higher wage rate to attract
labour from other employers or from staying at home.
m The extreme case: labour supply curve is identical to the total supply curve.
m The supply curve is also the average-cost-of-labour curve for the firm.
MRC Higher then the Wage Rate

Monopolist pays higher wages to attract an additional worker results it has to pay that higher wage to
all workers that it is currently employing if NOT, decrease in labour morale, lots of labour unrest
paying cost of extra worker (MRC) = sum of that worker’s wage rate and amount necessary to bring
wage rate of all current workers up to new wage level MRC > wage rate (graphically, MRC line is
above average-cost-of labour curve or labour S curve)
DEMAND AND SUPPLY OF LABOUR

Labour Demand and Supply in a Perfectly Competitive Market
In addition to making output and pricing decisions, firms must also determine how much of each
input to demand. Firms may choose to demand many different kinds of inputs. The two most common
are labor and capital. The demand and supply of labor are determined in the labor market. The
participants in the labor market are workers and firms. Workers supply labor to firms in exchange for
wages. Firms demand labor from workers in exchange for wages.
The firm’s demand for labour. The firm’s demand for labor is a derived demand; it is derived from
the demand for the firm’s output. If demand for the firm’s output increases, the firm will demand more
labor and will hire more workers. If demand for the firm’s output falls, the firm will demand less labor
and will reduce its work force.
Marginal revenue product of labour. When the firm knows the level of demand for its output, it
determines how much labor to demand by looking at the marginal revenue product of labor. The
marginal revenue product of labor (or any input) is the additional revenue the firm earns by employing
one more unit of labor. The marginal revenue product of labor is related to the marginal product of
labor. In a perfectly competitive market, the firm’s marginal revenue product of labor is the value of
the marginal product of labor. For example, consider a perfectly competitive firm that uses labor as an
input. The firm faces a market price of $10 for each unit of its output. The total product, marginal
product, and marginal revenue product that the firm receives from hiring 1 to 5 workers are reported
in Table.
TABLE Marginal Revenue Product of Labor.
Labor input (workers) Total product Marginal product Marginal revenue
(number of goods) of labor product of labor
0 0 — —
1 9 9 $90
2 17 8 80
3 22 5 50
4 25 3 30
5 26 1 10
The marginal revenue product of each additional worker is found by multiplying the marginal
product of each additional worker by the market price of $10. The marginal revenue product of labor
is the additional revenue that the firm earns from hiring an additional worker; it represents the wage
that the firm is willing to pay for each additional worker. The wage that the firm actually pays is the
market wage rate, which is determined by the market demand and market supply of labor. In a
perfectly competitive labor market, the individual firm is a wage-taker; it takes the market wage rate as
given, just as the firm in a perfectly competitive product market takes the price for its output as given.
The market wage rate in a perfectly competitive labor market represents the firm’s marginal cost of
labor, the amount the firm must pay for each additional worker that it hires.
The firm’s labor demand curve. The firm’s profit-maximizing labor-demand decision is depicted
graphically in Figure.
FIGURE A perfectly competitive firm’s profit-maximizing labor-demand decision.

This figure graphs the marginal revenue product of labor data from Table along with the market
wage rate of $50. When the marginal revenue product of labor is graphed, it represents the firm’s
labor demand curve. The demand curve is downward sloping due to the law of diminishing returns;
as more workers are hired, the marginal product of labor begins declining, causing the marginal
revenue product of labor to fall as well. The intersection of the marginal revenue product curve with
the market wage determines the number of workers that the firm hires, in this case 3 workers.
Labour Market 559
An individual’s supply of labor. An individual’s supply of labor depends on his or her preferences
for two types of “goods”: consumption goods and leisure. Consumption goods include all the goods
that can be purchased with the income that an individual earns from working. Leisure is the good that
individuals consume when they are not working. By working more (supplying more labor), an
individual reduces his or her consumption of leisure but is able to increase his or her purchases of
consumption goods. In choosing between leisure and consumption, the individual faces two constraints.
First, the individual is limited to twenty-four hours per day for work or leisure. Second, the individual’s
income from work is limited by the market wage rate that the individual receives for his or her labor
skills. In a perfectly competitive labor market, workers—like firms—are wage-takers; they take the
market wage rate that they receive as given. An individual’s labor supply curve. An example of an
individual’s labor supply curve is given in Figure .
FIGURE An individual’s labor supply curve

As wages increase, so does the opportunity cost of leisure. As leisure becomes more costly, workers
tend to substitute more work hours for fewer leisure hours in order to consume the relatively cheaper
consumption goods, which is the substitution effect of a higher wage. An income effect is also
associated with a higher wage. A higher wage leads to higher real incomes, provided that prices of
consumption goods remain constant. As real incomes rise, individuals will demand more leisure,
which is considered a normal good—the higher an individual’s income, the easier it is for that
individual to take more time off from work and still maintain a high standard of living in terms of
consumption goods. The substitution effect of higher wages tends to dominate the income effect at low
wage levels, while the income effect of higher wages tends to dominate the substitution effect at high
wage levels. The dominance of the income effect over the substitution effect at high wage levels is what
accounts for the backward-bending shape of the individual’s labor supply curve.
Market Demand and Supply of Labour

Many different markets for labor exist, one for every type and skill level of labor. For example, the labor
market for entry level accountants is different from the labor market for tennis pros. The demand for
labor in a particular market—called the market demand for labor—is the amount of labor that all the
firms participating in that market will demand at different market wage levels. The market demand
curve for a particular type of labor is the horizontal summation of the marginal revenue product of
labor curves of every firm in the market for that type of labor. The market supply of labor is the number
of workers of a particular type and skill level who are willing to supply their labor to firms at different
wage levels. The market supply curve for a particular type of labor is the horizontal summation of the
individuals’ labor supply curves. Unlike an individual’s supply curve, the market supply curve is not
backward bending because there will always be some workers in the market who will be willing to
supply more labor and take less leisure time, even at relatively high wage levels.
Labour Demand and Supply in a Monopsony-A labour market in which there is only one firm
demanding labour is called a monopsony. The single firm in the market is referred to as the monopolist.
An example of a monopsony would be the only firm in a “company town,” where the workers all work
for that single firm. Wage-searching behaviour. Because the monopsonist is the sole de-mander of
labor in the market, the monopsonist’s demand for labour is the market demand for labour. The
supply of labour that the monopsonist faces is the market supply of labour. Unlike a firm operating in
a perfectly competitive labour market, the monopsonist does not simply hire all the workers that it
wants at the equilibrium market wage. The monopsonist faces the upward-sloping market supply
curve; it is a wage-searcher rather than a wage-taker. If the monopsonist wants to increase the
number of workers that it hires, it must increase the wage that it pays to all of its workers, including
those whom it currently employs. The monopsonist’s marginal cost of hiring an additional worker,
therefore, will not be equal to the wage paid to that worker because the monopsonist will have to
increase the wage that it pays to all of its workers.
A numerical example of a monopsony market is provided in Table. The first two columns provide
data on the market supply of labor that the monopsonist faces. The third column reports the total cost
to the monopsonist of hiring each worker, which is just the wage times the number of workers. The
fourth column reports the marginal cost of labor, which is the change in monopsonist’s total cost of
labor as it hires additional workers.
TABLE A Monopsonist’s Marginal Cost of Labour.
Labor (number of workers) Wage (per hour) Total cost of labor Marginal cost of labor
1 $10 $10 $10
2 15 30 20
3 20 60 30
4 25 100 40
5 30 150 50
Suppose the monopsonist wants to increase the number of workers that it hires from 2 to 3. In
order to attract the third worker, the monopsonist must offer an hourly wage of $20 instead of $15.
However, because the monopsonist cannot discriminate among its workers (and risk alienating them),
it must offer the higher $20 wage to its two current employees. Hence, the monopsonist’s costs from
hiring the third worker are $60 (3 × $20), and the marginal cost from hiring the third worker is $30 ($60
“ $30). The marginal cost of $30 exceeds the new market wage of $20 because the monopsonist must
also pay its two current employees an hourly wage that is $5 higher than before.
Labour Market 561
Equilibrium in a Monopsony Market

In a monopsony market, the monopsonist firm—like any profit-maximising firm—determines the
equilibrium number of workers to hire by equating its marginal revenue product of labor with its
marginal cost of labor. Figure illustrates the monopsony labour market equilibrium, using the supply
and cost data from Table.
TABLE A Monopsonist’s Marginal Cost of Labour
Labor (number of workers) Wage (per hour) Total cost of labor Marginal cost of labor
1 $10 $10 $10
2 15 30 20
3 20 60 30
4 25 100 40
5 30 150 50
NATURE AND COMPOSITION OF INDIAN LABOUR FORCE

The unorganised sector in India. The Indian Economy is characterised by the existence of a vast
majority of informal or unorganised labour employment. As per the Economic Survey 2007-08, 93% of
India’s workforce include the self employed and employed in unorganised sector. The Ministry of
Labour, Government of India, has categorised the unorganised labour force under four groups in
terms of Occupation, nature of employment, specially distressed categories and service categories.
1. In terms of Occupation. Small and marginal farmers, landless agricultural labourers, share
croppers, fishermen, those engaged in animal husbandry, beedi rolling, labeling and packing,
building and construction workers, leather workers, weavers, artisans, salt workers, workers
in brick kilns and stone quarries, workers in saw mills, oil mills etc. come under this category.
2. In terms of Nature of Employment. Attached agricultural labourers, bonded labourers, migrant
workers, contract and casual labourers come under this.
3. In terms of Specially distressed categories. Toddy tappers, Scavengers, Carriers of head loads,
Drivers of animal driven vehicles, Loaders and unloaders come under this category.
4. In terms of Service categories. Midwives, Domestic workers, Fishermen and women, Barbers,
Vegetable and fruit vendors, News paper vendors etc. belong to this category.
In addition to these four categories, there exists a large section of unorganized labour force such as
cobblers, Hamals, Handicraft artisans, Handloom weavers, Lady tailors, Physically handicapped
self employed persons, Rikshaw pullers, Auto drivers, Sericulture workers, Carpenters, Tannery
workers, Power loom workers and Urban poor.
Though the availability of statistical information on intensity and accuracy vary significantly, the
extent of unorganized workers is significantly high among agricultural workers, building and other
construction workers and among home based workers. According to the Economic Survey 2007-08
agricultural workers constitute the largest segment of workers in the unorganized sector (i.e., 52% of
the total workers). As per the National Sample Survey Organization (NSSO), 30 million workers in
India are constantly on the move (migrant labour) and 25.94 million women workforce has been
added in the labour market from the year 2000 onwards. All the more every day 13000 Indians turn 60
years and they are expected to live another average of 17years. Unfortunately only 10% of the Indians
save for old age. The tragedy is that the existing social security legislations cover only 8% of the total
work force of 459 million in India.
The latest report of the NSSO uploaded by the close of May 2011 about the casual workers in India
between 2004-05 and 2009-10 compared to that of the period between 1999 – 2000 and 2004-05 very
clearly shows that there is significant increase in the number of casual workers and decline in the
number of regular workers.
This report shows a substantial shift between 1999-00 and 2009-10 in the structure of the labour
force which can be broadly divided into self employed, regular, and casual workers. (casual workers
are employees who do not enjoy the same benefits and security as tenured employees. All daily wage
employees and some categories of contract employees are casual labourers.)
All these NSSO reports are clear evidences to prove that the labour market of India has been
undergoing tremendous transformations, including growth of informal sector activities, deterioration
in the quality of employment (in terms of job security, terms and conditions at work), Weakening of
worker organizations and collective bargaining institutions, marked decline in social security etc. To
a greater extent, these transformation could be related to the ongoing globalization process and the
resultant efforts on the part of employers to minimize the cost of production to the lowest levels. It is
also evident that most of these outcomes are highly correlated and mutually reinforcing. A closer
analysis suggests that the growing informalisation of labour market has been central to most of these
transformations, which inter alia highlights the utility of understanding the growth of unorganized
sector in India and its implications.
Many thought that India’s growth could do no wrong, and took the administrative versions and
interpretations for granted. Now it comes to a point that none of these can be taken for granted. Growth
is slow, inflation is structural and structure of employment is not enough to cater to the growing
labour force.
Labour Market 563
Social Security Measures
It is rightly true that when independent India’s constitution was drafted, social security was specially
included in List III to Schedule VII of the constitution and it was made as the concurrent responsibility
of the central and state governments. A number of directive principles of state policy relating to
aspects of social security were incorporated in the Indian constitution. The initiatives in the form of
Acts such as the Workmen’s Compensation Act (1923), the Industrial Disputes Act (1947), the
Employees State Insurance Act (1948), the Minimum Wages Act (1948), the Coal Mines Provident
Funds and Miscellaneous Provisions Act (1948), The Employees Provident Fund and Miscellaneous
Provisions Act (1952), the Maternity Benefit Act (1961), the Seamen’s Provident Fund Act (1966), the
Contract Labour Act (1970), the Payment of Gratuity Act (1972), the Building and Construction Workers
Act (1996) etc. reveal the attention given to the organized workers to attain different kinds of social
security and welfare benefits. Though it has been argued that the above Acts are directly and indirectly
applicable to the workers in the unorganized sector also, their contribution is very negligible to the
unorganized workers.
Inspite of the fact that not much has been done in providing social security cover to the rural poor
and the unorganized labour force, the country has made some beginning in that direction. Both the
central and state governments have formulated certain specific schemes to support unorganized
workers which fails in meeting with the real needs and requirements of the unorganized sector labour
force.
This becomes clear even when the highly proclaimed National Rural Employment Guarantee Act
-2005 (NREGA), though it is a breakthrough, doesn’t have common wage in different states and limits
itself only to hundred day’s work for those registered worker under the Act. What about the rest of the
days in an year? As per this Act, the work guarantee applies in rural areas only, what about the urban
poor?
And looking at the recent Unorganized Sectors’ Social Security Act (2008), one really wonders if
there is any provision for an unorganized worker in this Act other than some guidelines about the
available social security schemes in the country. How can it be called an Act unless it has the legal
binding and provisions of rights to work and entitlements under it? Here as per the Act nothing is
mentioned about what constitutes appropriate and adequate social security for the vast mass of
unorganized workers and their dependents, what eligibility criteria, if any, ought to be prescribed,
what will be the scale of benefits that the workers and their families are entitled to receive and under
what conditions, what will be the funding arrangements that must be put in positions to meet the cost
of social security and so on. Aren’t the unorganized workers of this country entitled to receive, in this
60th year of our Republic, minimum standards of social security and labour rights, on the scale and
spread adumbrated in the relevant ILO convention drawn up more than 50 years ago? Therefore, this
law which does not deal with the issue of unemployment, its regulation, wages, and conditions of
work and so on is not merely incomplete but dysfunctional if it proceeds to deal with social security on
a stand alone basis.
Organised and Unorganised Labour

The table below describes major employment trends for the organized and unorganized sector for the
years 1983, 1987-88, 1993-94 and 1999-2000. It is evident that throughout this period a large portion
of the workforce in India is found to be employed in the unorganized sector. Out of 397 million
workers in 1999-2000, it is estimated that 369 million workers (nearly 93 per cent) are employed in the
unorganized segment of the economy whereas only 28 million workers (7 per cent) are engaged in the
organized sector. The share of unorganized employment in the economy has displayed remarkable
steadiness over the years. The share of informal employment has risen from 92 per cent (nearly 276
million out of 300 million) in 1983 to 93 per cent in the 1999-2000. It is clear that employment opportunity
in the organised sector has remained more or less stagnant, showing only a marginal increase from
24 million in 1983 to 28 million in 1999-2000.
The largest numbers of informal workers are in agriculture. In fact, 98.84 percent of the employment
in agriculture is informal. In the non-agricultural sector, the highest numbers of informal employees
are in retail trade, construction, land transport, textiles etc.
Estimates of population, labour force, employment and unemployment (in million)
1883 1988 1994 1999-2000
Estimated population 718.21 7.90 895.05 1004.1
Labour force 309.64 333.49 391.94 406.05
Employed 302.75 324.29 347.45 397
Unemployed 5.89 9.2 7.45 9.05
Employment in organised sector 24.01 25.71 27.37 28.11
Employment in unorganised sector 278.74 298.58 347.08 368.89
Thus, the unorganized sector plays a vital role in terms of providing employment opportunity to
a large segment of the working force in the country and contributes to the national product significantly.
The contribution of the unorganized sector to the net domestic product and its share in the total NDP
at current prices has been over 60%. In the matter of savings the share of household sector in the total
gross domestic saving mainly unorganised sector is about three fourth. Thus unorganised sector has
a crucial role in our economy in terms of employment and its contribution to the National Domestic
Product, savings and capital formation.
Employment by zones
Zone Employment (in thousands) Percentage change
2004 2005
Northern 4090 4049.1 –1
Central 3819.2 3759.2 –1.6
North Eastern 1495.9 1511.9 1.1
Eastern 4318.9 4358.1 0.9
Western 5253 5631 2
Southern 7427.6 7381.4 –0.6
Total 26404.6 26690.7 0.1
Women Employment
Women workforce constitutes an integral part of total workforce in India. On 31st march 2004, women
constituted 19 per cent of the total workforce. The participation of women in the labour force has
always been lower than that of men, in the rural as well as urban areas. The work participation rate for
women has increased significantly. In 1981, work participation rate for women was only 19.67 per cent
which increased up to 22.73 per cent in 1991 and 26.68 per cent in 2001. In the women workforce,
women from rural areas are greater in number as compared to the urban women. Amongst rural
women workers, a majority is employed in agriculture and some are employed in cottage industries.
In the urban areas, women workers are primarily employed in the unorganized sectors. As on the 31st
March, 2005 a total number of 50.16 Lacs women employees were engaged in the organised sector, out
of which 29.21 lacs (58 per cent) in the public sector and 20.95 lacs (42 per cent) in the Private Sector.
Employment of women in public sector increased by 1.1 per cent and by 2.5 per cent in the private
Labour Market 565
sector during 2004-2005. The zone wise analysis showed an increase of 8 percent in North-
Eastern Zone, followed by Western Zone (5.3 per cent), Eastern Zone (3 per cent) and Central Zone
(1.3 per cent) and Northern Zone (1.2 per cent). Only Southern Zone registered a marginal dip of
0.8 percent.
Some Vital Statistics

m The number of women job seekers has increased from 99.3 lacs in 1999 to 106.1 lacs in 2004.
Thus the percentage of women job seekers to the total job-seekers has also increased from
24.6 per cent in 1999 to 26.2 per cent in 2004
m The state wise analysis reflects that Kerala has the maximum (21.1 lacs) women job-seekers
followed by West Bengal (19.3 lacs) and Tamil Nadu (15.3 lacs) while minimum number of
women job-seekers are in Rajasthan (1.0 lacs).
m The percentage of educated women job seekers among the total women job seekers has gone
down from 73.3 per cent to 70.4 per cent in 2004.
m The work participation rate for women was 25.68 per cent in 2001. This shows an improvement
over 22.73 per cent in 1991 and 19.67 per cent in 1981.
m Women workers constituted 19 per cent of the total organized sector employment in the country,
as compared to 18.4 per cent in the previous year. As on 31st March, 2004, there were about
49.34 lacs women workers employed in the organized sector (Public and Private Sector).
The Indian labor market can be categorized into three sectors:
m Rural workers, who constitute about 60% of the workforce.
m Organized the formal sector, that constitutes about 8% of the workforce; and
m Urban unorganized or informal structure which represents the 32% of the workforce.
The chart below describes the estimated increase in the number of labours from 1977-78 to 2004-
05. The labour force has grown from 276.3 million to 385.5 million between 1977-78 and 1993-94
showing an annual growth rate of 2.1%. During the year 1999-2000, the workforce was estimated to be
407 million. In 2004-05 the labour market consisted of 430 million workers and has grown up to 500
million in 2006.
m As far as industries are concerned, in 2005, the manufacturing industry faced a dip of 1.1 per
cent in women employment. On the other hand, other industries reflected an increase in women
employment. An increase of 7.8 per cent was registered in Wholesale and Retail Trade followed
by 5.6 per cent in Mining and Quarrying, 5.5 per cent in Agriculture, Hunting, Forestry &
Fishing, 5.2 per cent in Financing, Insurance Real Estate & Business Services, 1.7 per cent in
Electricity, Gas & Water, 1.5 per cent in Construction, 1.4 per cent in Community, Social and
Personal Services and 1.2 per cent in Transport, Storage & Communications.
Labour Market in India
Two-third of India’s workforce is employed in agriculture and rural industries. One-third of rural
households are agricultural labour households, subsisting on wage employment. Only about 9 percent
of the total workforce is in the organized sector; the remaining 91 percent are in the unorganized
sector, self-employed, or employed as casual wage labourers. The labour force in year 2006 has grown
up to 509.3 million out of which 60% are in agriculture, 12% are employed in industries and the
residual 28% are in services.
Labour force can be divided into four categories: self employed workers, wage and salary earners,
casual workers and unemployed. Of these, self-employed are most loosely connected to labor market
because of the possibilities of work-sharing and work spreading in a self-employed enterprise. Non-
contractual casual labourers have the closest connection to labour market on almost day-to day basis.
Same is the case with those unemployed who are actively seeking work. Contractual and hence stable
hired employment (with the same employer and/or in the same job) on a regular basis is covered in the
description wage and salary workers. Persons who are engaged in their own farm or non- farm
enterprises are defined as self employed. The employees in an enterprise can be either regular salaried/
wage employees or casual wage employees who are normally engaged on a day-to-day basis. The
casual wage workers both in public work and other types of work don’t have any job security or social
security. These workers, either in formal or informal sector or in private households, are informal
workers. The regular salaried/wage employees are those working in others farm or non- farm enterprises
and getting in return salary or wages on a regular basis and not on the basis of daily or periodic
renewal of work contract. This category includes those getting time wage as well as those receiving
piece wage or salary and paid apprentices, both full time and part time. This category of persons may,
therefore, include persons engaged regularly on an hourly basis, temporary workers, out- workers, etc.
Labour Market 567
The table given below classifies labour force across male-female and rural-urban dimensions. It is
clear that :
m Self-employment and casual labor statuses are more prevalent among rural than urban labor
force and among female than male workers.
m The Incidence of unemployment is higher in the urban than in the rural labor force with nearly
48 per cent of the total unemployed persons coming from aggregate urban labor force whose
share in total (rural plus urban) work force is 22 per cent.
m Those reporting wage and salary earning dominate in the urban labor force, their share being
around 62 per cent (lines 10 to 12 of Table).
S. No. Category of Self employed Wage & Casual Unemployed Total (in
labour force salary earners workers per cent)
1 Rural males 53.96 8.7 35.63 1.71 100
2. Rural females 57.75 3.05 39.5 1.05 100
3. Urban males 39.59 39.81 16.09 4.51 100
4. Urban females 42.78 31.37 20.14 5.71 100
5. Rural persons 54.94 6.73 36.86 1.47 100
6. Urban persons 40.22 38.13 16.9 4.75 100
7. Total persons 51.65 13.68 32.44 2.2 100
8. Total males 50.23 16.77 30.56 2.44 100
9. Total females 54.81 7.01 36.49 1.69 100
10. Urban share : Males 20.43 61.56 13.65 47.91 25.93
11. Urban share : Females 10.91 92.59 7.71 47.2 13.98
12. Urban share : Persons 17.24 61.73 11.54 47.74 22.15
UNEMPLOYMENT AND UNDEREMPLOYMENT

Unemployment
It is important to acknowledge that unemployed labour represents an integral element of the external
labour market. People that are out of work but actively Seeking employment, particularly those
unemployed over a long period, tell us a great deal about the operation of the labour market. The
unemployed or surplus labour in any given market plays a role in determining the cost of employed
labour, the terms under which it is engaged and the extent of industrial conflict. For example, where
there is a large surplus of labour then this will result in greater competition for jobs, a downward
pressure on wages and conditions and a lowered likelihood of employees ‘rocking the boat’. Where
particular groups are disproportionately affected by unemployment for reasons unconnected to their
capabilities (for example, reflecting social group disadvantage) this reflects a distortion of the ‘proper’
working of the labour market.
There are a number of types of unemployment.
1. Structural unemployment exists where there is a fundamental mismatch between the supply
and demand for labour. For example, where demand for particular types of skill is low, those in
possession of these skills are at a relatively greater risk of being out of work. As such,
unemployment can result from a lack of employability and can bead dressed through workers
retraining or moving to areas where their skills are in greater demand.
2. Cyclical unemployment can also be cyclical in that it reflects business or economic cycles. For
example, in times of recession the demand for labour in general falls and unemployment rises.
Therefore, being out of work is not necessarily associated with one’s long-term employability;
rather it is linked to a short-term decline in overall demand for labour.
3. Frictional unemployment reflects a temporary mismatch in the demand and supply of labour
which is always present in an economy. For example, a worker might be unemployed whilst
looking for a particular type of job but is yet to identify an appropriate existing vacancy.
Therefore, even where supply broadly meets the demand for labour, unemployment temporarily
persists.
Underemployment
“Underemployment” can mean many things to different people, but when used correctly it means
that :
(1) a person is working at a job for they are significantly overqualified (i.e. Bill has an MA in
Mechanical Engineering and is working as a cashier at Kmart).
(2) a person is working part-time even if he/she wants/needs full-time (i.e. Bill is available to work
40 hours a week but can’t find a job for more than 20 hours a week).
The classic reason for underemployment is a bad job market. There simply isn’t enough work to go
around. There can be a glut of applicants for specific occupations (too many assembly line workers
after robots take their jobs) or there can be high unemployment levels across the country.
Underemployment refers to an employment situation that is insufficient in some important way
for the worker, relative to a standard. Examples include holding a part-time job despite desiring full-
time work, and over qualification, where the employee has education, experience, or skills beyond the
requirements of the job.
Underemployment has been studied in recent decades from a variety of perspectives, including
economics, management, psychology, and sociology. In economics, for example, the term
underemployment has three different distinct meanings and applications. All meanings involve a
situation in which a person is working, unlike unemployment, where a person who is searching for
work cannot find a job. All meanings involve under-utilization of labor which is missed by most
official (governmental agency) definitions and measurements of unemployment.
Underemployment can Refers to

m “Over qualification” or “over education”, or the employment of workers with high education,
skill levels, and/or experience in jobs that do not require such abilities. For example, a trained
medical doctor who works as a taxi driver would experience this type of underemployment.
m “Involuntary part-time” work, where workers who could (and would like to) be working for a
full work-week can only find part-time work. By extension, the term is also used in regional
planning to describe regions where economic activity rates are unusually low, due to a lack of
job opportunities, training opportunities, or due to a lack of services such as child-care and
public transportation.
m “Overstaffing” or “hidden unemployment” (also called “labor hoarding”), the practice in which
businesses or entire economies employ workers who are not fully occupied—for example,
workers currently not being used to produce goods or services due to legal or social restrictions
or because the work is highly seasonal.
Reason for Underemployment

The number of wage employment seekers depends upon the following: the size of the population of
working age, the number who, having sufficient unearned incomes, choose to remain idle; the number
Labour Market 569
who, being in command of the requisite means of production, are self-employed; and the prevailing
wage-rate and other incentives provided.
Normally, apart from the size of the population of working age, these factors are likely to be more
or less stable over short periods. For instance, the span of life regarded as falling within the working
age, while subject to variation as, a result of changes in the period of schooling or in the normal age for
retirement consequent on changes in health standards and longevity, is likely to remain unchanged in
the short period.
Moreover, even when some of these factors change somewhat, the net quantitative effect may not
be important. Higher wages, for instance, may induce some of the older workers to postpone their
retirement while these may impel some of the married women workers, now that their husbands are
better off, to relinquish their jobs. The net effect of a rise in wages will not, therefore, be quantitatively
important.
The same applies to other of these factors. The size of the population of working age, too, though
not invariant, is measurable as it changes according to definite trends. It follows that the number of
wage-seeking population can be determined with a great measure of accuracy. And since the average
number of hours of work which each wage-employment seeker wants to put in is likely to be more or
less stable in any short period, the total amount of wage employment sought is quite precisely
measurable.
Similar observations may be made regarding the permissible allowance for seasonal and frictional
unemployment. It will have to vary from season to season, and from year to year, in accordance with
the inevitable seasonal variations in employment and in the magnitude of the structural shifts in
demand and production that, together with immobility of labour, cause frictional unemployment. It
may, therefore, be better defined as a range rather than as a precise figure. Since normally structural
shifts in demand and production are unlikely to be violent or spasmodic and since in industrialized
countries the incidence of seasonal unemployment is bound to be quite low, the allowance for frictional
and seasonal unemployment needs to be very small. A U.N. study has suggested that this allowance
need not be beyond a range of 2-4 or 3-5 per cent of the available labour force.
The possibility of measuring the size of the available labour force and inevitable minimum of
frictional and seasonal unemployment makes full employment a determinate quantity. As suggested
by a U.N. study, as a necessary step in the effective implementation of full-employment policies, each
country should fix a full-employment target expressed in terms of the permissible range of frictional
and seasonal unemployment. Unemployment in excess of the fixed target would indicate a lapse from
full employment calling for remedial action. The fixation of such a target would help to reduce the
chances of government inaction or vacillation in the face of growing unemployment. It may also help
to maintain confidence among business men whose pessimism ordinarily plays a notable part in
magnifying the downswing.
There is, however, the danger of government acting on a false scent. For at times, unemployment
may exceed the target due to causes other than insufficient demand. The danger may be minimized by
allowing the government the discretion to disregard the signal if it has clear evidence that rise in
unemployment is not due to demand deficiency
CONCEPT OF WAGES
m Wages. Wages may be defined as the aggregate earning of employee for a given period of time
such as a day or a week or a month .Wages are basically the price paid for the services of labour
in the process of production. They are composed of two parts – the basic wage and other
allowances. The allowances include dearness allowances, city compensatory allowances,
overtime pay and medical allowances.
m Salary. It is compensation to an employee for services rendered on a weekly, monthly or annual
basis. It is usually associated with office staff, supervisors, researchers, manager etc.
m Wage rate. It is a wage received by a workers for a unit of time or production excluding special
payments for overtime, night work and incentive earning. If the wage rate is determined by the
job evaluation. It is called standard wage rate.
m Nominal Wage. Wage expressed in terms of money are called nominal wages.
m Real Wages. The goods and services which could be purchased with the help of money wages
are known as real wages. Nominal wages are divided by a cost of living or consumer price
index give real wages.
m Fringe Benefits. There refers to compensation given to employees, over and above wages, that
often is not directly related to output, performance or time worked.
m Wage and Salary Administration’ refers to the establishment and implementation of sound
policies and practices of employee compensation. The basic purpose of wage and salary
administration is to establish and maintain an equitable wage and salary structure. Wages
and salaries are often one of the largest components of cost of production and such have
serious implications for growth and profitability of the company. On the other hand, they are
the only source of workers’ income.
After the independence and particularly after 1948, some new terms relating to wages began to be
used. These are:
1. Statutory Minimum Wages
2. Basic Minimum Wages
3. Minimum Wages
4. Fair Wages
5. Living Wages
6. Need Based Wages
1. Statutory Minimum Wages. By it we mean the minimum amount of wages which should
essentially be given to the workers as per provisions of the Minimum Wages Act, 1948.
2. Basic Minimum Wages. This minimum wage is fixed through judicial pronouncement, awards,
industrial tribunals and labour. The employers are essentially to give this minimum wage to
the workers.
3. Minimum Wages. The concept of minimum wages has developed due to different standards in
different countries. In Indian context, minimum wage means the minimum amount which an
employer thinks necessary for the sustenance of life and preservation of the efficiency of the
worker. According to Fair Wage Committee, the minimum wages must also provide for some
measures of education- medical requirements and amenities.
4. Fair Wages. In order to bring about improved relations between labour and management an
effort has been made in modern times that the labour gets a fair deal at the hands of owners and
managers of industries. Various proposals were undertaken at the Industries Conference in
1947 and a resolution known as the Industrial Truce Resolution was passed. It is provided for
the payment of fair wages to labour. The government of India appointed a Fair Wages committee
in 1948 to determine the principles on which fair wages should be based and to suggest the
lines on which those principles should be applied. According to the report on this Committee,
Fair Wages is that wages which the labourer gets for his work just near to minimum wages and
living wages. Generally, the current rate of wages being paid in the enterprise are known as fair
wages.
Labour Market 571
5. Living Wages. According to Fair Wage Committee Report, “The living wage should enable the
male earner to provide for himself and his family not merely the bare essentials of food, clothing
and shelter, but also a measure of frugal comfort including education for children, protection
against ill health, requirements of essential social needs and a measure of insurance against
the more important misfortunes including old age.” According to the Committee on Fair Wages,
the living wages represent the highest level of the wages and include all amenities which a
citizen living in a modern civilized society is to expect when the economy of the country is
sufficiently advanced and the employer is able to meet the expanding aspirations of his workers.
The Living Wage should be fixed keeping in view the National income and the capacity of the
industry to pay.
6. Need Based Wages. The Indian Labour Conference at its 15th session held at New Delhi in
July, 1957 suggested that minimum wage fixation should be need based. Following are the
important points of the Resolution of the Conference.
(a) The standard working class family should include three consumption units for the one
earner.
(b) Calculation of minimum food requirements should be made on the basis of the
recommendation of Dr. Aykoroyed i.e. 27000 calories for an average Indian adult.
(c) Calculation of cloth should be made @ 18 yards annually for one member. As such, a
family consisting of four members will require 72 yards of cloth.
(d) The workers should get minimum rent as per guidelines fixed by the government in the
industrial housing policy.
(e) Expenses for fuel, light and so on should be equal to 20% of the entire minimum wages.
State Regulation of Wages

m A potent objectives of legislation on wages is the regulation and fixation of the quantum of
wages. Although prior to the intervention in the field of wages, it was accepted that free bargaining
between individual bargaining between individual workmen and their employers would result
in fixation of such wage rates which would satisfy both. Many inquires reveled that widespread
exploitations of woman and child labour existed in those industries which were generally
carried on a small scale and in many cases, even in the homes of the employers. In such
industries, the Workers did not have and do not have, even now, strong organization to protect
them against the excesses of the employers, strong public opinion, however gradually forced
the state to adopt legislation for the fixation of minimum wages in such industries .
m As early as 1896, the state of Victoria adopted a legislation to protect workers employed in
certain sweated trades requiring special efforts and hard work. These included boot making,
shirt making, clothing, underclothing and furniture manufacturing. A similar protective
legislation –the minimum wages act was adopted in 1948.
m The purpose of these all minimum wages laws was prevent the exploitation of labour and
payment of unduly low wages in those industries where workers were least organized and
where employment of woman workers and children are predominated. It was realized the
wages of these industries or occupations were so low that worker engaged, therein could not
earn enough to meet even the bare necessities of life though they might be continually employed.
m The fixation of minimum wages in the industries and wages in these industries or occupations
and the impositions of legal obligations on the employer to pay the wage rate so fixed, have
gone a long way towards mitigating the suffering and hardships of labour in the unorganized
industries and employment.
m At times, the state intervention to regulate the quantum of wages to control inflationary pressure
as happened during the last world war.
m The state has also regulated wages for maintaining the purchasing power of the wage earners
and thereby speeding up the pace of economy recovery.
m Finally, The most comprehensive objectives of state regulation of wages which is finding
expression in a large number of countries today even in the capitalist societies ones, has been
the pursuit of a national income distribution policy and using the wage policy as an instrument
of planned economic development.
State regulation of wages seek to achieve the following objectives :
m Prevention of extra hard work and toil and poverty arising from unduly low wages.
m Fixation of just and fair wages for preventing industrial disputes.
m Control of infantry pressures.
m Raising purchasing power with a view to speeding up the pace of economic recovery.
m Wage regulation as a part of national income distribution policy and programmes of planned
economic development.
Wage Fixation
m The necessity for fixing the minimum rates of wage was realized in India as early as the
beginning of the present century, but no concrete measures were adopted as long. The question
of fixation of the minimum rate of wages are considered by the royal commission on labour
which, in its report submitted in 1931.
m This reports recommended making investigation in respect of the fixations of minimum rates
of wages in small industries like bid making, wool cleaning, mica works etc.
m It also recommended the establishment of a minimum wages fixing machinery in these industries
and the adoption of necessary legislation. The commission further setting up of a statutory
wage board for fixing minimum wages in plantation in Assam.
m Labour investigation committee known as Rege committee, appointed by the government of
India 1944, also made investigation in respects of wage earning in industrial employment and
submitted a main report and 35 adhoc survey.
m The report and survey revealed the existence of low level of wages for almost all categories of
worker employed in different industries.
m The international labour organization also adopted the conventions and recommendations
relating to fixing the wage machinery. The minimum wage fixing machinery convention NO
26, 1928 provides for creation of wage fixing machinery in certain trades.
m The minimum wages fixed by the machinery are binding to the labour and employer.
m India ratified the convention in 1955, after the enactments of the minimum wages act, 1948, the
minimum wages fixing machinery recommendation NO 30, 1928 requires such a machinery to
investigate the condition relevant to the trades and to consult the affected interest before fixing
minimum wages.
m The question of the fixation of minimum wages was considered by the standing labour
committee and the fifth session of the Indian labour conferences in 1943.
m Government of India introduced the minimum wages Bill in the legislative assembly in 1946,
which was passed on the 9th February, 1948 and came into force the 15 of the same year.
m The minimum wages act, 1948 is the first labour legislation in the country dealing with the
fixation of minimum rates of wages for workers employed in different exacting employment
including agriculture.
Labour Market 573
Wages Theories
Different writers and thinkers have suggested several theories for determination of wages .Theories
are discussed below.
1. Subsistence Theory
2. Wage Fund Theory
3. Residual Claimant Theory
4. Surplus Value Theory of Money
5. Marginal Productivity Theory
6. Bargaining Theory of Wages
7. Compensation theory
8. Expectancy theory
9. Equity Theory
10. Agency theory
1. Subsistence Theory. This theory was propounded by David Richardo. Richardo states that
“The labourers are paid to enable them to subsist and perpetuate the race without increase or
diminution.” This theory is also known as “Iron Law of Wages”. According to this theory, if
the wages fall below the subsistence level, the number of workers would decrease as many of
them would die of hunger, disease, malnutrition etc.. This would make the wage rates go up as
labour will become scarce. However, if the workers are paid more than the subsistence wages,
they would marry and procreate. This would increase their number and bring down the rate of
wages.
This theory is based on two assumptions, namely,
(i) The law of diminishing return applies to industry.
(ii) There is a rapid increase in populations.
2. Wage Fund Theory. This was propounded by Adam Smith and further expounded by J.S. Mill.
He assumed that wealthy persons have funds of surplus wealth, as a result of their savings
wages are paid out of these funds. This fund could be utilised for employing labourers for
work. If the fund was large, wages would be high if it was small, wages would be low, just
enough for the subsistence. Thus, the size of the fund determined the demand for labour and
the wages that could be paid.
The J.S. Mill said that wages mainly depend upon the demand for and supply of labour or
proportion between populations and capital available. The amount of wages is fixed. Wages
can’t be increased without decreasing the numbers of workers and vice versa. It is the wages
fund which determine the demand of labour.
3. Residual Claimant Theory. This theory was propounded by Francis A Walker. According to
Walker, there are four factors of production namely, land, labour, capital and organisation.
Wages represent the amount of value created in the production which remains after payment of
the other three factors of production namely land, capital and organisation.
In others words, labour is residual claimant .The wages are equal to the whole production
minus rent, interest and profits.
This theory tries to prove that if the productivity of the workers increases the production will
rise as a result there will be increase in the residual means to be distributed as wages. It also
recognises that the workers have a stake in the national income of the country.
4. Surplus Value Theory of Money. This theory was propounded by Karl Marx. According to
Marx, Labour was to be treated as an article of commerce, which could be purchased on payment
of subsistence price. The price of any product was determined by the labour time needed for
producing it. The labourers were not paid in proportion to the time spent on job, but much less.
The surplus, thus created, was utilized for paying other expenses.
5. Marginal Productivity Theory. This theory was propounded by Wick steed and Clark.
According to this theory wages depend upon the demand for and supply of labour. Wages are
based upon the entrepreneur’s estimate of the value that will probably be produced by the last
or marginal worker. Workers are paid only what they are economically worth. As long as
additional worker contributes more to the total value than the cost in wages, it pays the employer
to continue hiring. The result is that the employer has a larger share in profits as he doesn’t
have to pay to non-marginal workers.
6. Bargaining Theory of Wages. This theory was propounded by John Davidson. According to
him, wages are determined by the relative bargaining power of workers or trade unions and of
employers. When a trade union is involved, monetary benefits, incentives, job differentials etc.
tend to be determined by the relative strength of the organisation and the trade union. However
this is possible in big plant which are earning huge profits and where labour is well organised,
the profits earned but the enterprise play an important role in determining the bargaining
wages.
7. Compensation theory. All researcher agree on the point that pay affects employee satisfaction
and this can have behavioural implications. When employees are dissatisfied with their jobs
their desire for money increases and attractiveness of the job is increases and attractiveness of
the job decreases. As a result of the desire for more money, they are more apt to pursue behaviours
which are likely to raise their pay, such as improving their work performance, joining union
and looking for better job.
8. Expectancy theory. Vroom’s expectancy theory focuses on the link between rewards and
behaviour motivation, according to the theory is the result of valence, instrumentally and
expectancy. Remunerating system differ according to this impact on these motivational
component. Remunerating system according to this impacts on these motivational components.
9. Equity Theory. Equity theory seek to relate employees behaviour to their perception of equity
and inequity in their compensation. Elliott Jacques has been the leading advocate of the equity
approach. His analysis leans heavily on his view that the effective rewards system must relate
pay to the level of work as defined by the time span discretions. This time span is the maximum
periods for which a job holder can be allowed to exercise discretions or self control without the
supervisor review.
10. Agency theory. The agency theory focuses on the divergent interest and goal of the organisation
stake holder and the way employee remunerations can be used to align these interest and
goals. Employer and employees are the two stakeholders of a business unit, the former assuming
the role of principle and the latter the role of agent. The remuneration is paid to the employee
in the agency cost.
Wage Determinant Process

Wage determination is a complex process. However, wage determination process consists of the
following steps:
1. Job Analysis. Job analysis describes the duties, responsibilities, working conditions and inter-
relationships between the job as it is and the other jobs with which it is associated. It attempts
to record and analyse details concerning the training, skills, required efforts, qualifications,
abilities, experience, and responsibilities expected of an employee. After determining the job
specifications, the actual process of grading, rating or evaluating the job occurs. A job is rated
in order to determine its value relative to all the other jobs in the organization which are subject
Labour Market 575
to evaluation. The next step is that of providing the job with a price. This involves converting
the relative job values into specific monetary values or translating the job classes into rate
ranges.
2. Wage Survey. In determining the wages for a specific job it is very necessary to work as to what
wages are being given for the same job in other enterprises. If, on the basis of utility, the wages
for a specific job are determined below the wages for the same job on other enterprises, following
will be its disadvantages:
1. Good persons and persons of merit will not be available.
2. If such people are at all obtained for employment, they will shift to another enterprise after
some time.
It is, therefore, necessary to keep in mind the following in wage-survey:
(i) Term of survey, (weekly or monthly)
(ii) The whole wage-payment-knowledge of daily working hours or monthly payment.
(iii) Definition of jobs.
(iv) Appropriate questionnaire for collecting information.
(v) Scientific technique of collecting the data.
3. Group Similar Jobs into Pay Grades. After the results of job analysis and salary surveys have
been received, the committee can turn to the task of assigning pay rates to each job, but it will
usually want to first group jobs into pay grades. A pay grade is comprises the jobs of
approximately equal difficulty or importance as determined by job evaluation. Pay grading is
essential for pay purposes because instead of having to deal with hundreds of pay rates, the
committee might only have to focus on a few.
4. Price Each Pay Grade. The next step is to assign pay rates to pay grades. Assigning pay rates
to each pay grade is usually accomplished with a wage curve. The wage curve depicts
graphically the pay rates currently being paid for jobs in each pay grade, relative to the points
or ranking assigned to each job or grade by the job evaluation. The purpose of wage curve is to
show the relationship between (i) the value of the job as determined by one of the job evaluation
methods and (ii) the current average pay rates for the grades.
5. Fine-Tune Pay Rates. Fine tuning involves correcting out of line rates and developing rate
ranges.
(i) Correcting out of Line Rates. The average current pay for a job may be too high or too low,
relative to other jobs in the firm. If a rate falls well below the line, a pay rise for that job may
be required. If the rate falls well above the wage line, pay cuts or a pay freeze may be
required.
(ii) Developing Rate Ranges. Most employers do not pay just one rate for all jobs in a particular
pay grade. Instead, they develop rate ranges for each grade so that there might be different
levels and corresponding pay rates within each pay grade. The rate is usually built around
the wage line or curve. One alternative is to arbitrarily decide on a maximum and minimum
rate for each grade. As an alternative, some employers allow the rate for each grade to
become wider for the higher pay ranges reflecting the greater demands and performance
variability inherent in these more complex jobs.
6. Wage Administration Rules. The development of rules of wage administration has to be done
in the next step. It is considered advisable in the interests of the concern and the employees that
the information about average salaries and ranges in the salaries of group should be made
known to the employees concerned; for secrecy in this matter may create dissatisfaction and it
may also vitiate the potential motivating effects of disclosure. Finally, the employee is appraised
and the wage is fixed for the grade he is found fit.
Types of Wages
Determination of reasonable wages is a difficult task for the management and so they should give
adequate attention to this area. However, different types of wage payment can be divided into three
parts:
1. Time wage
2. Piece Rate system
3. Wage incentive plan
1. Time wage. In this type the worker is given remuneration according to time. This type of
remuneration may be per hour, per day or per month or per year. There exists no relationship
between the quantum of work and the wage. This type is in operation in all industries in India.
This plan is very simple to understand. The worker works after due thinking and with
convenience. However it encourages the tendency of prolonging or delaying the work
unnecessarily. Moreover, it is very difficult to measure the productivity of the workers under
this type of plan.
2. Piece Rate System. In this type of plan, a worker gets remuneration according to his output
irrespective of the time he takes in finishing his job. Here, the payment of remuneration is
related to work and not to time. Under this type, the workers are encouraged to earn more and
more. The more the output is, the more the remuneration is. The workers are also at liberty for
their job with interest and they need not be supervised. However, this type of wage payment is
not suitable for commodities of artistic taste. Moreover, the quality of goods goes down.
3. Wage incentive Plan. This type of wage payment is the combination of two types the above
referred. Efforts have been made here to obtain the advantages of both these types while avoiding
their disadvantages. This includes:
(A) Halsey Premium Scheme. Halsey premium plan is a combination of time and speed bases
of payment and the minimum wages are guaranteed to every worker. Under this scheme
if a worker gives an output more than the fixed standard job, he is given about 33% to 50%
of the remuneration for that job as bonus. Here a standard of output is fixed and a standard
of time is also fixed for the completion of that job before hand. If the job of fixed standard is
completed with the standard time fixed for the purpose, the worker gets his fixed wages.
But, if he completes the job before the fixed standard time and, thereby, saves some time, he
gets a fixed percentage of his wages for the time so saved as bonus.
(B) Rowan Premium Scheme. This plan is an improvement upon Halsey Plan. Under this
plan, premium is that proportion of the wages for the time taken which the time saved
bears to the standard time. The credit of this incentive premium method goes to Rowan of
Scotland. The worker is paid wages at normal rates for the duration he has worked and is
paid extra money in the form of premium on the basis of the time he has saved. Under this
scheme, the standard work and the standard time both are fixed. The wages for the time
saved will increase in the same percentage that is equal to the proportion the time saved
bears to standard time. The premium for the time saved cannot be more than the total
standard wages. Thus, a worker cannot get cleverly wages more than needed.
(C) Taylor’s Plan. F.W. Taylor suggested differential piece rate plan as an alternative to time
rate system which he considered as unscientific and lacks incentive elements. In his, Taylor
did not provide for minimum guarantee wage payment to each workers. Taylor plan is
based on wages per unit. In other words, a worker is paid wages in accordance with his
output. Higher price rate is fixed for the workers who give production over and above the
standard workload fixed. The lower rate is fixed for the workers who give production
below the standard workload fixed.
Labour Market 577
(D) Merrick Plan. This plan is somewhat a modified form of Taylor’s plan. This plan offers
three grade piece rates than the two offered in the Taylor’s plan. The workers who produce
less than 83% of standard output are paid are basic piece rate. Those producing form 83%
to 100% of the standard output are paid 110% of basic rate. Lastly the workers Producing
more than 110% of basic piece rate.
I. First limit is for new workers and is very low.
II. Second limit is for workers with average efficiency.
III. Third limit is for very efficient workers.
(E) Gantt Plan. This is also a modified form of Taylor plan. In it, wages are fixed on the basis
of time. On the other hand, the efficient workers are given wages per unit. Thus, the workers
who give more output get their wages at enhanced rates. If a workers achieves excel it, gets
extra wages varying between 25% to 50% of the hourly rate for the time allowed for the task.
But if the workers are fail to complete the task within the standard time, he receives the
wages only actual time spent at the specified rate.
(F) Emerson Plan. This plan is a combination of Taylor, Merrick and Gantt plans. However, a
slight modification in these plans has been made and different rates of bonus have been
fixed under this plan. The amount of bonus increases with the increase in efficiency. These
percentages are as under:
1% bonus on 67.5% efficiency.
20% + 30% extra on bonus on efficiency more than 100%.
(G) Profit-Sharing Scheme. Under this scheme, workers are given a certain percentage of
profits as bonus. But it suffers from one defect. Suppose, there is no profit in a particular
year. Workers will also not be given the bonus for that very year. The workers think that
they have been deceived by the employers and therefore, clash with them on this very issue.
This assumes the form of worker-management unrest and has its bad effect on the
production. This scheme is undoubtedly a new and better scheme. But, the trade unions
misuse the scheme.
(H) Scanlon Plan. Under this scheme, the workers are paid bonus equal to the percentage of
profits earned more than the profits earned last year by the organisation. 15% of the bonus
is deducted and this deduction is deposited in the fund which is distributed among the
workers in the year to come.
Wage Differentials
Wage differentials mean differences or disparities in wages. Wages differ in different employments or
occupations, industries and localities and also between persons in the same employment or grade.
One, therefore comes across such terms as occupational wage differentials, inter-industry, inter-firm,
inter-area or geographical differentials and personal differentials. In other words, wage differentials
may be as follows:
(i) Occupational Differentials. The reasons for occupational wage differentials can be varying
requirements of skill, knowledge, demand supply situation, degree of responsibilities etc. In
countries adopting a course of planned economic development, skill differentials play an
important role in manpower and employment programmes, for they considerably help in
bringing about an adequate supply of labour with skills corresponding to the requirements of
product plans.
(ii) Inter-firm Differentials. Inter-firm differentials reflect the relative wage levels of workers
indifferent plants in the same area and occupation. Differences in technological advancement,
managerial efficiency, financial capability, age and size of them, relative advantages and
disadvantages of supply of raw materials, power and availability of transport facilities- those
are also accounted for considerable disparities in inter-firm wage rates. Lack of co-ordination
among adjudication authorities, too, are responsible for such anomalies.
(iii) Inter-area or Regional Differentials. Such differentials arise when workers in the same industry
and the same occupational group, but living in different geographical areas, are paid different
wages. Regional wage differentials may be conceived in two senses. In the first sense, they are
merely a part of inter-industry differentials in a particular region. In the second sense, they may
represent real geographical differentials, resulting in the payment of different rates for the same
type of work. In both cases, regional differentials affect the supply of manpower for various
plants in different regions.
(iv) Inter-industry Differentials. These differentials arise when workers in the same occupation
and the same area but in different industries are paid different wages. Inter-industry differentials
reflect skill differentials. The industries paying higher wages have mostly been industries with
a large number of skilled workers, while those paying less have been industries with a large
proportion of unskilled and semi-skilled workers. Other factors influencing inter-industry
differentials are the extent of unionisation, the structure of product markets, the ability to pay,
labour-capital ratio, and the stage of development of an industry.
(v) Inter-personal Wage Differentials. These differentials are between workers in the same plant
and the same occupation. These may be due to differentials in sex, skills, age, knowledge or
experience.
Labour Market 579

1. Administration of employee wage and sal- 7. Which Internal factors influencing the wage
ary is called______________. and salary administration?
(A) Wage and salary administration (A) Demand & supply
(B) Wage fund (B) Trade unions bargaining power
(C) Wage and salary policy (C) Cost of living
2. Objective of the wage and salary adminis- 8. Which internal factors not influencing the
tration includes wage and salary administration?
(A) To establish to fair and equitable com- (A) Government legislation
pensation (B) Technological development
(B) To attract qualified and competent per- (C) Economy
sonnel (D) None of these
(C) To improve motivation and morale of 9. Which external factors influencing the wage
employees and salary administration?
(D) All of these (A) Ability to pay
3. Money received in performance of work, (B) The employee
plus many kind of benefits and services that (C) Job requirement
the organisation provide to their employees
(D) All of these
is
10. Which of the following is/are not the theo-
(A) Wage and salary administration
ries of wages?
(B) Wage fund
(A) Subsistence theories
(C) Compensation
(D) All of these
4. Payment to hourly rates production and ser-
(D) None of these
vices workers is
11. Which of the following is/are the theories
(A) Wage
of wages?
(B) Wage fund
(A) Residual claimant theories
(C) Salary
(B) Bargaining theories of wage
(D) All of these
(C) Marginal productivity theories
5. Weekly and monthly rates paid to clerical ,
(D) All of these
administrative and professional employees
is 12. Which are the theories of wages?
(A) Wage (B) Wage fund (A) Compensation theories
(C) Salary (D) All of these (B) Equity theory
6. Which of the following factors is not influ- (C) Expectancy theory
encing the wage and salary administration? (D) All of these
(A) Internal (B) External 13. Who said “The labourers are paid to enable
(C) Both A& B (D) None of these them to subsist and perpetuate the race with-
out increase or diminution”
(A) David Richard (A) Residual claimant theories

(B) Karl Marx (B) Bargaining theories of wage
(C) Adam Smith/J.S. Mill (C) Marginal productivity theories
(D) Clark (D) All of these
14. Which theory is called Iron law of wages? 21. Marginal productivity theories was given by
(A) Subsistence theory (A) David Richard
(B) Wage fund theory (B) Karl Marx
(C) Surplus value theory of money (C) Adam Smith/J.S. Mill
(D) All of these (D) Clark
15. Wage fund theory was given by 22. According to________ wage is depend
(A) David Richard upon demands and supply of labour. Wages
are based upon the entrepreneur estimate of
(B) Karl Marx
the value that will probably produced by the
(C) Adam Smith & J.S. Mill
last marginal worker.
(D) Clark (A) Residual claimant theories
16. ________assumed that the wealthy person (B) Bargaining theories of wage
have fund of surplus wealth as a result of (C) Marginal productivity theories
their saving wages are paid out of these fund.
(D) All of these
23. Bargaining theories of wage was given by
(A) David Richard (B) Karl Marx
(C) Clark (D) John Davidson
(D) All of these
24. According to________ theory wages are de-
17. Surplus value theory of money was given
termined by the relative bargaining power
by
of workers or trade union and of employers.
(A) David Richard
(A) Residual claimant theories
(B) Karl Marx
(B) Bargaining theories of wage
(C) Adam Smith/J.S. Mill
(C) Marginal productivity theories
(D) Clark
(D) All of these
18. Labour was treated as an article of commerce
25. Which of the following is the methods of
which could be purchased on payment of
wage payment?
subsistence price
(C) Balance and debt methods
(D) All of these
(D) All of these
26. Wages are paid according to time spent by
19. Residual claimant theories was given by
the workers irrespective of his output or
(A) Francis A. Walker work done.
(B) Karl Marx (A) Time wage system
(C) Adam Smith/J.S. Mill (B) Piece wage system
(D) Clark (C) Balance and debt methods
20. According to________ theory after the pay- (D) All of these
ment have been made to all other factors of
27. Wages are based on output and not on time.
production viz. land, capital, and entrepre-
There is no consideration for time taken in
neur, whatever the surplus represented
completing a task.
wages.
Labour Market 581
(A) Time wage system (C) Wage differential
(B) Piece wage system (D) All of these
(C) Balance and debt methods 34. Which of the following are the types of wage
(D) All of these differential?
28. Types of piece rate system are (A) Occupational
(A) Straight piece rate (B) Inter-firm
(B) Increasing piece rate (C) Inter area & inter personal
(C) Decreasing piece rate (D) All of these
(D) All of these 35. _________differential can be varying re-
29. Methods in which one piece rate is fixed and quirement of skill, knowledge, demands and
whole production is paid on this basis supply, degree of responsibilities involved.
(A) Straight piece rate (A) Occupational
(B) Increasing piece rate (B) Inter-firm
(C) Decreasing piece rate (C) Inter area & inter personal
30. Methods in which different rates are fixed 36. __________reflects the relative wage levels
for different type of production. Higher rate of workers in different plants in the same
are given when production increases in cer- area and occupation.
tain level (A) Occupational
(A) Straight piece rate (B) Inter-firm
(B) Increasing piece rate (C) Inter area & inter personal
(C) Decreasing piece rate (D) All of these
(D) All of these 37. It arises when worker in same area, same
31. In this method the rate per unit decreases occupation but living in different geographi-
with increases in output cal area
(A) Straight piece rate (A) Occupational (B) Inter-firm
(B) Increasing piece rate (C) Inter-area (D) All of these
(C) Decreasing piece rate 38. ________are between workers working in
(D) All of these same plants and the same occupation .these
may be due to differential in sex, skill, knowl-
32. __________is a combination of time and
edge or experience.
piece wage system, the worker is guaran-
teed a time rate with an alternative of piece (A) Occupational (B) Inter-firm
rate. (C) Inter personal (D) All of these
(A) Time wage system 39. ________are monetary benefits to workers
(B) Piece wage system in recognition of their outstanding perfor-
(C) Balance and debt methods mance.
(D) All of these (A) Incentive-Plan (B) Inter-firm
(C) Inter personal (D) All of these
33. __________means differences and dispari-
ties in wages. Wages differ in different em- 40. Which of the following is/are the types of
ployment or occupation ,industries and loy- wage incentive plans ?
alties and between the person in a same em- (A) Individual incentive plan
ployments or grade. (B) Group incentive plan
(A) Time wage system (C) Both A & B
(B) Piece wage system (D) None of these
41. Time based system types are concerned with (B) Rowen plan
(A) Halsey (B) Rowen (C) Badeaux
(C) Emerson & Badeaux (D) All of these
(D) All of these 48. A workers did not provide guaranteed mini-
42. Which of the following are the types of pro- mum wage payment to each worker. Taylor
duction based system? suggested to piece rate for the worker. The
(A) Taylor’s differential piece rate system principle of this system is to rewards an effi-
(B) Gantt’s task and bonus plan cient worker and penalizes the inefficient
person
(C) Both A & B
(A) Taylor’s differential piece rate system
(D) None of these
(B) Gantt’s task and bonus plan
43. Group incentive system types are concerned
(C) Both A & B
with
(D) None of these
(A) Priestman plan
(B) Scalon plan & profit sharing 49. A worker is guaranteed minimum wage un-
der Gantt and task and bonus wage plan. A
(C) Co-partnership plan & profit sharing
person taking less than standard time get
(D) All of these time wages plus bonus.
44. This plan is a simple combination of time (A) Taylor’s differential piece rate system
and speed bases of payments. In this stan- (B) Gantt’s task and bonus plan
dard time is fixed for completing the work
(C) Both A & B
in advance a person taking standard or more
is paid for the time taken by him (D) None of these
(A) Halsey premium plan 50. Standard production is fixed for whole fac-
(B) Rowen tory. If productivity exceeds the standard
then bonus is paid accordance with the in-
(C) Emerson & Badeaux
crease.
(D) All of these
(A) Priestman plan
45. A worker is guaranteed minimum wage for (B) Scalon plan & profit sharing
time spent on the job. He get bonus for com-
(C) Co-partnership plan & profit sharing
pleting the job in less than the standard time.
(D) All of these
(B) Rowen plan 51. There is a payment for 1% participating bo-
nus for every 1% increases in productivity
(C) Emerson & Badeaux
(A) Profit sharing
(D) All of these
(B) Scalon plan
46. A worker is guaranteed minimum wage for
time spent on the job. In addition bonus and
extra payment was suggested to those who (D) All of these
prove efficient 52. Employees is offered shares of the enterprise
(A) Halsey premium plan at reduced rates, the payment is also collected
(B) Rowen plan in installment. The employees shared prof-
its of the concern as its member
(C) Emerson
(A) Profit sharing
(B) Scalon plan
47. In this plan, the minute is the time unit
describe as the standard minute and
accounted as Bandeaux point B. (D) All of these
Labour Market 583
53. _______is a methods of remuneration un- 60. More then one piece rate offered to the em-
der which employer undertakes to pay his ployees in
employees to share a net profits of an enter- (A) Taylor’s differential piece rate
prise, in an additional to regular wages. (B) Gantt’s task and bonus plan
(A) Profit sharing (C) Both A & B
(B) Scalon plan (D) None of these
(C) Co-partnership plan 61. Evaluating the relative worth of the employ-
(D) All of these ees in the organization then deciding the
54. Plan in which workers earnings very pro- awards from them is called
portionately less than their output is/are (A) Nominal wages
(A) Hasley premium plan (B) Real wages
(B) Rowen plan (C) Standard wage rate
(C) Badeaux (D) All of these
(D) All of these 62. Incentive system recommend two piece
55. Wages expressed in terms of money is called wage system is called
(A) Nominal wages (B) Real wages (A) Taylor’s differential piece rate
(C) Time wages (D) All of these (B) Gantt’s task and bonus plan
56. The goods and services which could be pur- (C) Both A & B
chased with the help of money wages is (D) None of these
known as___________ 63. The ________ adjusted for the prevailing
(A) Nominal wages (B) Real wages rate of inflation.
(C) Time wages (D) All of these (A) Nominal wages
57. Wage rate is determined by the job evalua- (B) Real wages
tion, is known as (C) Standard wage rate
(A) Nominal wages (D) All of these
(B) Real wages 64. Stock option and performance share is the
(C) Standard wage rate _________term plan.
(D) All of these (A) Short (B) Long
58. It is a wage received by a workers for a unit (C) Middle (D) All of these
of time and production excluding special 65. Co-partnership incentive plan, there is divi-
payment for overtime, night work and in- sion of surplus
centive earning. (A) Profit
(A) Nominal wages (B) Real wages
(B) Real wages (C) Standard wage rate
(C) Wage rate (D) All of these
(D) All of these
66. Halsey premium plan is_______bonus plan.
59. These refers to compensation given to em- (A) Price saved (B) Time saved
ployee over and above the wages ,that often
(C) Cost saved (D) All of these
is not related to output ,performance and time
worked 67. ______means the additional output realized
(A) Nominal wages by employing one additional unit of labour.
(B) Fringe benefits (A) Value productivity
(C) Standard wage rate (B) Specific productivity
(D) All of these (C) Marginal productivity
(D) All of these
68. ______productivity means production in (A) Cotton textile (B) Plantation
terms of one unit of factors (C) Both A& B (D) All of these
(A) Gross (B) Net 76. The concepts of wage board was first enun-
(C) Simple (D) All of these ciated by
69. National productivity council was estab- (A) Fair wage committee
lished in (B) High wage committee
(A) 1948 (B) 1958 (C) Both A& B
(C) 1931 (D) None of these (D) All of these
70. When productivity per labour unit is ex- 77. Fair wage committee was set up in
pressed in terms ___________of is known (A) 1948 (B) 1958
as Physical productivity. (C) 1931 (D) None of these
(A) Physical quantities
78. National productivity council was set up in
(B) Specific productivity
(A) 1958 (B) 1959
(C) Marginal productivity
(D) All of these
79. Wage board was established in
71. Reducing the number of employees at op-
(A) 1957 (B) 1958
erational level and reorganizing the work
system in order to attain greater productiv- (C) 1931 (D) None of these
ity. 80. A wage board is ________in character
(A) Manpower inventory (A) Bipartite
(B) Manpower forecasting (B) Tripartite character
(C) Downsizing (C) Both A& B
(D) All of the above (D) All of the
72. ________intends to measures the contribu- 81. The recommendation of the wage board are
tion of a particular factor production to _________.
change in production. (A) Non-statutory (B) Statutory
(A) Value productivity (C) Both A& B (D) All of these
(B) Specific productivity 82. ________ is that portion of Dearness Allow-
(C) Marginal productivity ance which Government declares to be paid
(D) All of these for all purpose
73. Which of the following is most stable? (A) Dearness pay
(A) Basic wage (B) Dearness allowance
(B) Dearness allowance (C) Annual bonus
(C) Annual bonus (D) All of these
(D) All of these 83. In recent times, in addition to stock options,
74. ________is an additional payment to em- employees of dotcom companies are de-
ployees in order to compensate them to cer- manding
tain extent for the rise in the cost of living. (A) Dearness pay
(A) Basic wage (B) Dearness allowance
(B) Dearness allowance (C) Annual bonus
(C) Annual bonus (D) Cash bonus
(D) All of these 84. Basic purpose of Wage and salary adminis-
75. The concepts of DA was introduced for the tration is to establish and maintain an equi-
first time in_________ industry in India. table
Labour Market 585
(A) Dearness pay (A) Minimum wage
(B) Dearness allowance (B) Living wage
(C) Annual bonus (C) Both A & B
(D) Wage and Salary structure (D) None of these
85. Documents used for wage analysis are 92. Which of the following is the fixed compo-
(A) Job cards (B) Wage sheets nent in compensation packages?
(C) Both A & B (D) None of these (A) Basic wage
86. Providing equal pay for jobs of equal nature (B) Dearness allowance
based on job evaluation ensures_______ in (C) Annual bonus
compensation administration. (D) All of these
(A) Internal equity 93. When there are several pay grades in a pay
(B) External equity structure, it is called
(C) Both A & B (A) Minimum wage
(D) None of these (B) Traditional pay structure
87. Ensuring a fair balance between an (C) Both A & B
employee’s contributions to the job and the (D) None of these
rewards received in return from that job is 94. ________ provides benefits at the time of re-
the essence of tirement/death/following disability of
(A) Subsistence theories worker.
(B) Wage fund theory (A) Deferred plan
(C) Equity theory (B) Traditional pay structure
88. Managers never own complete responsibil- (D) None of these
ity for the all the decisions made by them 95. Life and Medical insurance or reimburse-
since they are not the owners of the busi- ment of medical bills is considered as a part
ness is the assumption of of________.
(A) Subsistence theories (A) Job cards (B) Perks
(B) Wage fund theory (C) Both A & B (D) None of these
(C) Agency theory 96. In Taylor differential piece rate system, high
(D) All of these piece rate is applicable if ________.
89. Provision for cars, parking lots and mem- (A) Input is above standard
bership in country club are examples of (B) Output is above standard
(A) Job cards (C) Both A & B
(B) Executive Perks (D) None of these
(C) Both A & B 97. Time rate systems are
(D) None of these (A) Ordinary level
90. Performance-based annual bonuses are an (B) High wage level
example of (C) Graduated time rates
(A) Short (B) Long (D) All of these
(C) Middle (D) All of these
98. The first pay commission was appointed by
91. ______ ensure that the employees get an in- the government of India in
come which is sufficient for meeting their (A) 1946 (B) 1958
present and future necessities and contin-
gencies.
99. The chairman of the first pay commission 106. Which of the following is the Main Features
(A) Justice Vardachariar of Perfect Competition ?
(B) Justice Roy (A) Many Sellers
(C) Justice Sharma (B) Many Buyers
(D) None of these (C) Homogenous product
100. The concept that “wages represent the mar- (D) All of these
ginal discounted product of labour” was 107. Which of the following are not the features
given by of the Perfect Competition includes?
(A) Taussig (B) Richardo (A) Zero advertisement cost
(C) J.S.Mill (D) None of these (B) Perfect mobility of factors
101. Individual incentive plan are concerned (C) Homogenous product
with (D) None of these
(A) Time based system 108. A market where information is not quickly
(B) Production based system disclosed to all participants in it and where
(C) Both A& B the matching of buyers and sellers isn’t im-
(D) None of these mediate.
102. The__________ refers to the system in which (A) Labour market
people who want work, find employers who (B) Imperfect market
want workers. This system is referred to as a (C) Both A& B
market because it follows to a large extent (D) None of these
the laws of supply and demand. 109. _____________is a trade market controlled
(A) Labour market (B) Market by only one company, hence the prefix mono
(C) Both A & B (D) None of these which means one.
103. Labour market is not a___________ and (A) Labour market
there are many other factors that intervene (B) Monopolistic markets
to prevent wage rates from dropping when (C) Both A& B
there is an oversupply of workers for the (D) None of these
number of jobs available.
110. Purely Competitive Labour Market includes
(A) Labour market
(A) Numerous firms compete with one an-
(B) Perfect market other to hire a specific type of labor
(C) Both A & B (B) Each of many qualified workers with
(D) None of these identical skills supplies that type of la-
104. Which of the following is the Labour Mar- bor
ket trends? (C) Individual firms and individual work-
(A) Self-Employment ers are “wage takers;” neither exerts con-
(B) Downsizing trol over the market wage rate
(C) Both A& B (D) All of these
(D) None of these 111. A market in which a single employer of
105. Which of the following is not the labour labour has substantial buying (hiring)
market trends? power
(A) Working from home (A) Monopsony
(B) Training and education (B) Monopolistic markets
(C) Both A & B (C) Both A& B
Labour Market 587
112. Characteristics of the monopsony includes 119. ___________and distinguished unemploy-
(A) Only a single buyer of a particular type ment are the forms of involuntary unemploy-
of labour ment.
(B) Relatively immobile type of labour, e.g. (A) Voluntary (B) Visible, seasonal
geographically because workers would (C) Both A & B (D) All of these
have to acquire new skills 120. ______ reflects a temporary mismatch in
(C) Firm is a ‘wage maker’ because the wage the demand and supply of labour which is
rate it must pay varies indirectly with always present in an economy.
respect to the workers it employs (A) Frictional unemployment
(D) All of these (B) Cyclical unemployment
113. ___________occurs when a person who is (C) Seasonal unemployment
wants and is able to work can’t find work. (D) All of these
(A) Unemployment 121. Unemployment caused by ________in regu-
(B) Underemployment lar interval is known as cyclical unemploy-
(C) Both A & B ment.
(D) All of these (A) Frictional unemployment
114. __________includes workers that are highly (B) Trade cycles
skilled but employed in low paying jobs and (C) Seasonal unemployment
workers employed part time but rather work (D) All of these
full time 122. The demand price of labour is determined
(A) Unemployment by the ________of the individual worker.
(B) Underemployment (A) Marginal revenue
(C) Both A& B (B) Marginal productivity
115. Which of the following is the causes of the (D) All of these
unemployment? 123. “Labour at present wastefully used” signi-
(A) Rapid technological changes fies
(B) Recessions (A) Disguised unemployment
(C) Seasonal factors (B) Cyclical unemployment
116. Types of the unemployment includes (D) All of these
(A) Voluntary (B) Involuntary 124. The lack of productive work during some
(C) Both A & B (D) All of these periods of the years is known as
117. Unemployment which result from the with- (A) Frictional unemployment
drawals of some persons from employment (B) Cyclical unemployment
for diverse reasons is known (C) Seasonal unemployment
(A) Voluntary (B) Involuntary (D) All of these
(C) Both A & B (D) All of these 125. The total absence of jobs for certain workers
118. Unemployment due to non availability of for some periods
work during some periods when the work- (A) Frictional unemployment
ers want to work is known (B) Cyclical unemployment
(A) Voluntary (B) Involuntary (C) Visible unemployment
126. Structural unemployment exists when there 133. Which of the following is not the internal
is a fundamental mismatch between the problem of the labour force?
(A) Frictional unemployment (A) Illiterate labour
(B) Cyclical unemployment (B) Ineffective leadership
(C) Supply and demand for labour (C) Lack of unity
127. Unemployment which is caused by the 134. Which of the following is the external prob-
changes in the techniques of production is lem of the labour force?
known as (A) Political pressure
(A) Frictional unemployment (B) Less legal support
(B) Cyclical unemployment (C) Opposition by industrialist
(C) Technological unemployment (D) All of these
(D) All of these 135. Measures to the strengthen of the labour
128. Current daily status is estimated as the ag- force in India is
gregate of all the unemployed days of all (A) Education of workers
persons in the labour force during the (B) Economic and social uplift
(A) Week (B) Year (C) Effective leadership
(C) Days (D) All of these (D) All of these
129. Current weekly status unemployment a per- 136. Which of the following is not the measures
son so unemployed if he had worked even to the strengthen of the trade union in In-
for ___________ but was seeking or avail- dia?
able for work. (A) Sufficient fund
(A) One hour during week (B) Internal unity
(B) Year (C) Free from political pressure
(C) Days (D) None of these
(D) All of these
137. Those industries are included which work
130. A person is unemployed in usual principle for the whole years
status unemployment if he was not work- (A) Perennial factories
ing ,but was either seeking or available for
(B) Seasonal factories
work for a major parts of the
(C) Both A & B
(A) Current weekly status
(D) All of these
(B) Current daily status
(C) Reference years 138. Work, where workers who could (and
would like to) be working for a full work-
(D) All of these
week can only find part-time work.
131. Which is the problem of the labour force in (A) Perennial factories
India?
(B) Involuntary part-time
(A) Internal (B) External
(C) Both A & B
(C) Both A&B (D) All of these
(D) All of these
132. Which of the following is the internal prob-
139. "Overstaffing” or ___________” (also called
lem of the labour force ?
“labour hoarding”), the practice in which
(A) Migratory character businesses or entire economies employ work-
(B) Homogenous character ers who are not fully occupied.
(C) Poor economic condition (A) Hidden unemployment
(D) All of these (B) Involuntary part-time
Labour Market 589
(C) Both A& B (C) Minimum wage
(D) All of these (D) Fair wages
140. __________means the minimum amount of 145. The Indian Labour Conference at its 15th
wages which should essentially be given to session held at New Delhi in July, 1957 sug-
the workers as per provisions of the Mini- gested that minimum wage fixation should
mum Wages Act, 1948. be
(A) Statutory minimum wages (A) Statutory minimum wages
(B) Basic minimum wages (B) Living wages
(C) Both A & B (C) Need based
(D) All of these (D) Fair wages
141. This minimum wage is fixed through judi- 146. According to ___________if the workers are
cial pronouncement, awards, industrial tri- paid more than the subsistence wages they
bunals and labour. The employers are essen- would marry and procreate. This would in-
tially to give this minimum wage to the work- crease their number and bring down the rate
ers. of wages.
(A) Statutory minimum wages (A) Subsistence theories
(B) Basic minimum wages (B) Wage fund theory
(C) Both A & B (C) Surplus value theory of money
142. ____________ means the minimum amount 147. According to _________ If the fund was
which an employer thinks necessary for the large, wages would be high if it was small,
sustenance of life and preservation of the wages would be low, just enough for the
efficiency of the worker. subsistence. Thus, the size of the fund deter-
mined the demand for labour and the wages
(A) Statutory minimum wages
that could be paid.
(B) Basic minimum wages
(C) Minimum wage
(D) All of these
143. __________ is that wages which the labourer (D) All of these
gets for his work just near to minimum wages
148. Wages represent the amount of value cre-
and living wages.
ated in the production which remains after
(A) Statutory minimum wages payment of the other three factors of produc-
(B) Basic minimum wages tion namely land, capital and organisation.
(C) Minimum wage (A) Subsistence theories
(D) Fair wages (B) Wage fund theory
144. According to the Committee on Fair Wages, (C) Residual Claimant Theory
the ____________represent the highest level (D) All of these
of the wages and include all amenities which 149. The price of any product was determined by
a citizen living in a modern civilised society the labour time needed for producing it. The
is to expect when the economy of the coun- labourers were not paid in proportion to the
try is sufficiently advanced and the em- time spent on job, but much less. The sur-
ployer is able to meet the expanding aspira- plus, thus created, was utilised for paying
tions of his workers. other expenses.
(A) Statutory minimum wages (A) Subsistence theories
(B) Living wages (B) Wage fund theory
(C) Surplus value theory of money 155. Wages paid on the basis of the units pro-
(D) All of these duced are called
150. According to this theory wages depend upon (A) Time rate (B) Money rate
the demand for and supply of labour. Wages (C) Piece Rate (D) Real Wage
are based upon the entrepreneur’s estimate 156. Who among the following propounded the
of the value that will probably be produced marginal productivity theory of wages?
by the last or marginal worker (A) David Richard
(A) Marginal productivity theory (B) Webb’s
(B) Wage fund theory (C) Maurice Dobb
(C) Surplus value theory of money (D) Walker
(D) All of these 157. Money wage otherwise called
151. According to him, wages are determined by (A) Nominal wages
the relative bargaining power of workers or (B) Real wages
trade unions and of employers.
(C) Standard wage rate
(A) Bargaining theory of wages
(D) Fair wages
158. Wage boards set right
(A) Inter-regional differential
(D) All of these
(B) Intra-sectoral differential
152. In this type of plan, a worker gets remunera-
(C) Intra-Industry differential
tion according to his output irrespective of
(D) Inter-Industry differential
the time he takes in finishing his job. Here,
the payment of remuneration is related to 159. Which of the following is not a determinant
work and not to time. of wages
(A) Piece rate system (A) Prevailing wages
(B) Time wage system (B) Bargaining strength of union
(C) Balance and debt methods (C) Job evaluation
(D) All of these (D) performance appraisal
153. In this type the worker is given remunera- 160. Wage board is a
tion according to time. This type of remu- (A) Bipartite body
neration may be per hour, per day or per (B) Tripartite body
month or per year. There exists no relation- (C) Both A& B
ship between the quantum of work and the (D) None of the above
wage
161. Wage produced on the basis of units pro-
(A) Piece rate system duced are called
(B) Time wage system (A) Piece rate
(C) Balance and debt methods (B) Real wages
(D) All of these (C) Standard wage rate
154. _____________ is somewhat a modified (D) Fair wages
form of Taylor’s plan. This plan offers three
162. Wage boards evolve wage structure for
grade piece rates than the two offered in the
Taylor’s plan. (A) One industry
(A) Piece rate system (B) single firm
(B) Merrick plan (C) Nation as a whole
(C) Balance and debt methods (D) Different industries
(D) All of these
Labour Market 591
163. Which of the following is not the character- 170. Labour market is a
istics of Indian labour market (A) Perfect Market
(A) Migratory Character (B) Imperfect Market
(B) Low level of literacy (C) Monopolistic Market
(C) High degree of unionization (D) None of these
(D) High rate of absenteeism 171. Who among the following are not included
164. After all others factors of production are paid as a member of wage board
wages are paid to labour from the left out (A) Employees representative
fund, is the theme of (B) Worker representative
(A) Subsistence theories (C) Consumer representative
(B) Marginal productivity theory (D) Economists & wage expert
(C) Wage fund theory 172. A wage period shall not exceed
(D) All of these (A) Forty days
165. Any employer who is unable to pay _______ (B) One month
minimum wages has no right to exist. (C) One week
(A) Statutory minimum wages (D) Thirty five days
(B) Minimum wage
173. If a wage rate is determined by job evalua-
(C) Living wages tion it is called
(D) Fair wages (A) Real Wage
166. Minimum wage are fixed by (B) Standard wage rate
(A) Trade union (C) Piece rate
(B) Employer (D) Time rate
(C) Appropriate government 174. Incentive plans types are
(D) Court of law (A) Group incentive plan
167. Out of the following theories of wages which (B) Individual incentive
one is called as iron law of wages? (C) Both of these
(A) Wage fund theory (D) None of these
(B) Marginal productivity theory
175. The _________(or any input) is the additional
(C) Subsistence theories revenue the firm earns by employing one more
(D) Collective bargaining theory unit of labour. The marginal revenue product
168. Who among the following is not include in of labour is related to the marginal product
the labour force? of labour.
(A) Worker/employees (A) Group incentive plan
(B) Self employed people (B) Marginal revenue product of labour
(C) Domestic servant (C) Both of these
(D) House wives (D) None of these
169. Karl Marx is said to be the proponent of 176. ______________ include all the goods that
which of the following theories of wages? can be purchased with the income that an
(A) Wage fund theory individual earns from working.
(B) Marginal productivity theory (A) Group incentive plan
(C) Surplus value theory of money (B) Consumption goods
(D) Collective bargaining theory (C) Both of these
(D) None of these
177. This the number of workers of a particular (B) Wage and salary earners
type and skill level who are willing to sup- (C) Casual workers and unemployed
ply their labour to firms at different wage (D) All of these
levels.
183. ___________are most loosely connected to
(A) Market supply of labour labour market because of the possibilities of
(B) Consumption goods work-sharing and work spreading in a self-
(C) Both of these employed enterprise.
(D) None of these (A) Self employed workers
178. The demand for labour in a particular mar- (B) wage and salary earners
ket called the—is the amount of labour that (C) Casual workers and unemployed
all the firms participating in that market will (D) All of these
demand at different market wage levels.
184. Non-contractual casual labourers have the
(A) Market supply of labour closest connection to labour market on al-
(B) Market demand for labour most day-to day basis.
(C) Both of these (A) Self employed workers
(D) None of these (B) Non-contractual casual labourers
179. In a monopsony market, ____________like (C) Casual workers and unemployed
any profit-maximizing firm—determines the (D) All of these
equilibrium number of workers to hire by
equating its marginal revenue product of
labour with its marginal cost of labour. List –I List-II
(A) Market supply of labour (a) Subsistence Theory (i) Karl Marx
(B) Market demand for labour (b) Wage fund Theory (ii) Francis Walker
(c) Residual Claimant (iii) Karl Marx
(C) The monopolist firm
Theory
(D) None of these
(d) Surplus value (iv) David Richardo
180. The major characteristics of the unorganised
workers is Theory
(A) The workplace is scattered and frag- Codes :
mented. (a) (b) (c) (d)
(B) There is no formal employer – employee (A) (iv) (iii) (i) (ii)
relationship (B) (iv) (iii) (ii) (i)
(C) The unorganised workers do not receive (C) (iii) (iv) (ii) (i)
sufficient attention from the trade (D) (iii) (ii) (iv) (i)
unions. 186. Match the following
(D) All of these List –I List-II
181. The Indian labour market can be categorized (a) Human Capital (i) David
into the sectors Approach McClelland
(A) Rural workers (b) Socio-Psychological (ii) UNDP
(B) Organised of the formal sector Approach
(C) Urban unorganised or informal struc- (c) Poverty Alleviation (iii) T.W. Scultz
ture Approach
(D) All of these (d) World Human (iv) World Bank
182. The categories of labour force includes Development
(A) Self employed workers Approach
Labour Market 593
Codes : Codes :
(a) (b) (c) (d) (a) (b) (c) (d)
(A) (ii) (iv) (i) (iii) (A) (i) (iii) (ii) (iv)
(B) (iii) (iv) (ii) (i) (B) (iv) (iii) (ii) (i)
(C) (iii) (i) (iv) (ii) (C) (iii) (iv) (ii) (i)
(D) (iv) (ii) (i) (iii) (D) (iii) (ii) ( iv) (i)
187. Match the following 188. Match the following
Theory of wages Contributor Contributor Wage theories
(a) Bargaining Theory (i) J. Stacy (a) David Richardo (i) Marginal produc-
Adam tivity theory
(b) Demand & supply (ii) A.C. Pigou (b) James Stuart Mill(ii) Residual claimant
Theory theory
(c) Purchasing power (iii) John (c) F.W. Walker (iii) Wage fund theory
Theory Davidson (d) J.B. Clark (iv) Subsistence theory
(d) Equity Theory (iv) Alfred Codes :
Marshall (a) (b) (c) (d)
(A) (iv) (iii) (ii) (i)
(B) (ii) (i) (iii) (iv)
(C) (iv) (iii) (ii) (i)
(D) (iii) (ii) (iv) (i)
ANSWER KEY
1. (A) 2. (D) 3. (C) 4. (A) 5. (C) 6. (D) 7. (D) 8. (D) 9. (D) 10. (D)
11. (D) 12. (D) 13. (A) 14. (A) 15. (C) 16. (B) 17. (B) 18. (C) 19. (A) 20. (A)
21. (D) 22. (C) 23. (D) 24. (B) 25. (D) 26. (A) 27. (B) 28. (D) 29. (A) 30. (B)
31. (C) 32. (C) 33. (C) 34. (D) 35. (A) 36. (B) 37. (C) 38. (C) 39. (A) 40. (C)
41. (D) 42. (C) 43. (D) 44. (A) 45. (B) 46. (C) 47. (C) 48. (A) 49. (B) 50. (A)
51. (B) 52. (C) 53. (A) 54. (D) 55. (A) 56. (B) 57. (C) 58. (C) 59. (B) 60. (A)
61. (C) 62. (A) 63. (B) 64. (B) 65. (A) 66. (B) 67. (C) 68. (A) 69. (B) 70. (A)
71. (C) 72. (B) 73. (A) 74. (B) 75. (A) 76. (A) 77. (A) 78. (A) 79. (A) 80. (B)
81. (A) 82. (A) 83. (D) 84. (D) 85. (C) 86. (B) 87. (C) 88. (C) 89. (B) 90. (A)
91. (B) 92. (A) 93. (B) 94. (A) 95. (B) 96. (B) 97. (D) 98. (A) 99. (A) 100. (A)
101. (C) 102. (A) 103. (B) 104. (C) 105. (D) 106. (D) 107. (D) 108. (B) 109. (B) 110. (D)
111. (A) 112. (D) 113. (A) 114. (B) 115. (D) 116. (C) 117. (A) 118. (B) 119. (B) 120. (A)
121. (B) 122. (B) 123. (A) 124. (C) 125. (C) 126. (C) 127. (C) 128. (A) 129. (A) 130. (C)
131. (C) 132. (D) 133. (D) 134. (D) 135. (D) 136. (D) 137. (A) 138. (B) 139. (A) 140. (A)
141. (B) 142. (C) 143. (D) 144. (B) 145. (C) 146. (A) 147. (B) 148. (C) 149. (C) 150. (A)
151. (A) 152. (B) 153. (B) 154. (B) 155. (C) 156. (D) 157. (A) 158. (C) 159. (D) 160. (B)
161. (A) 162. (A) 163. (C) 164. (C) 165. (B) 166. (C) 167. (C) 168. (D) 169. (C) 170. (B)
171. (C) 172. (B) 173. (B) 174. (C) 175. (B) 176. (B) 177. (A) 178. (B) 179. (C) 180. (D)
181. (D) 182. (D) 183. (A) 184. (B) 185. (B) 186. (C) 187. (D) 188. (C)
ELECTIVE INDUSTRIAL RELATIONS
ROLE OF PARTIES
Parties Relating to Industrial Relations
(1) Workers & their Organisation. The personal characteristics of workers, their culture,
educational attainments, qualifications, skills, attitude towards work etc., play an important
role in industrial relations. Workers’ organisations, known as trade unions, are political
institutions.
(2) Employers & their Organisations. The employers are a very important variable in industrial
relations & regulate their behaviour for getting high productivity from them. Industrial unrest
generally arises when the employer’s demands from workers are very high and they offer low
economic & other benefits.
(3) Government. The government exerts an important influence on industrial relations through
such measures as providing employment, and regulating wages, bonus and working
conditions, through various laws relating to labour.
COOPERATION AND CONFLICT

There are two important aspects of the industrial relations scene in a modern industrial society:
1. Cooperation. Modern industrial production is based upon cooperation between labour and
capital. Here labour stands for the workers who man the factories, mines and other industrial
establishment or services. Capital stands for the owners of business enterprises who supply
the capital and own the final product. The cooperation between the two is one of the basic
requirements for the smooth functioning of modern industries and the growth of
industrialisation.
2. Conflict. The second aspect of the system of industrial relations obtaining today is the existence
of conflict, conflict, like cooperation is inherent in the industrial relations set up of today. The
prevailing industrial unrest, the frequency of work – stoppages resulting either from strikes or
lock-outs, and the slowing down of production, are the occasional expressional of the ever-
present and latent conflict between workers and the management.
Industrial Conflict
Industrial Conflict are organised protests against existing terms of employment or conditions of work.
According to the Industrial Dispute Act, 1947, an Industrial dispute means “Any dispute or difference
between employer and employer or between employer and workmen or between workmen and
workmen, which is connected with the employment or non-employment or terms of employment or
with the conditions of labour of any person. In practice, Industrial dispute mainly refers to the strife
between employers and their employees. An Industrial dispute is not a personal dispute of any one
person. It generally affects a large number of workers’ community having common interests.
(595)
Prevention of Industrial Conflict

The consequences of an Industrial dispute will be harmful to the owners of industries, workers,
economy and the nation as a whole, which results in loss of productivity, profits, market share and
even closure of the plant. Hence, Industrial disputes need to be averted by all means.
Prevention of Industrial disputes is a pro-active approach in which an organisation undertakes
various actions through which the occurrence of Industrial disputes is prevented. Like the old saying
goes, “prevention is better than cure”.
1. Model Standing Orders. Standing orders define and regulate terms and conditions of
employment and bring about uniformity in them. They also specify the duties and
responsibilities of both employers and employees thereby regulating standards of their
behaviour. Therefore, standing orders can be a good basis for maintaining harmonious relations
between employees and employers.
Under Industrial Dispute Act, 1947, every factory employing 100 workers or more is required
to frame standing orders in consultation with the workers. These orders must be certified and
displayed properly by the employer for the information of the workers.
2. Code of Industrial discipline. The code of Industrial discipline defines duties and
responsibilities of employers and workers. The objectives of the code are:
m To secure settlement of disputes by negotiation, conciliation and voluntary arbitration.
m To eliminate all forms of coercion, intimidation and violence.
m To maintain discipline in the industry.
m To avoid work stoppage.
m To promote constructive co-operation between the parties concerned at all levels.
3. Works Committee. The Industrial Dispute Act, 1947 has provided for the establishment of
works committees. In case of any industrial establishment in which 100 or more workers are
employed, a works committee consisting of employees and workers is to be constituted; it
shall be the duty of the Works Committee to promote measures for securing and preserving
amity and good relations among the employees and workers.
4. Joint Management Councils. Under this system Joint Management Councils are constituted
at the plant level. These councils were setup as early as 1958. These councils consist of equal
employing 500 or more workers, there should be a Joint Council for the whole unit. Only such
council shall meet at least once in a quarter. The chief executive of the unit shall be the
chairperson of the joint council. The vice-chairman of the joint council will be nominated by
the worker members of the council. The decisions of the Joint Council shall be based on the
consensus and not on the basis of voting.
6. Collective Bargaining. Collective Bargaining is a process in which the representatives of the
employer and of the employees meet and attempt to negotiate a contract governing the employer-
employee-union relationships. Collective Bargaining involves discussion and negotiation
between two groups as to the terms and conditions of employment.
Elective I 597
7. Labour welfare officer. The factories Act, 1948 provides for the appointment of a labour
welfare officer in every factory employing 500 or more workers. The officer looks after all
facilities in the factory provided for the health, safety and welfare of workers. He maintains
liaison with both the employer and the workers, thereby serving as a communication link and
contributing towards healthy industrial relations through proper administration of standing
orders, grievance procedure etc.
8. Tripartite bodies. Several tripartite bodies have been constituted at central, national and state
levels. The India labour conference, standing labour committees, Wage Boards and Industries
Committees operate at the central level. At the state level, State Labour Advisory Boards have
been set up. All these bodies play an important role in reaching agreements on various labour-
related issues. The recommendations given by these bodies are however advisory in nature
and not statutory.
Machinery of Settlement of Industrial Conflict/Disputes
1. Conciliation. Conciliation refers to the process by which representatives of employees and
employers are brought together before a third party with a view to discuss, reconcile their
differences and arrive at an agreement through mutual consent. The third party acts as a
facilitator in this process. Conciliation is a type of state intervention in settling the Industrial
Disputes. The Industrial Disputes Act empowers the Central & State governments to appoint
conciliation officers and a Board of Conciliation as and when the situation demands.
Conciliation Officer. The appropriate government may, by notification in the official gazette,
appoint such number of persons as it thinks fit to be the conciliation officer. The duties of a
conciliation officer are:
(a) To hold conciliation proceedings with a view to arrive at amicable settlement between the
parties concerned.
(b) To investigate the dispute in order to bring about the settlement between the parties
concerned.
(c) To send a report and memorandum of settlement to the appropriate government.
(d) To send a report to the government stating forth the steps taken by him in case no settlement
has been reached at.
The conciliation officer however has no power to force a settlement. He can only persuade and
assist the parties to reach an agreement. The Industrial Disputes Act prohibits strikes and
lockouts during that time when the conciliation proceedings are in progress.
2. Arbitration. A process in which a neutral third party listens to the disputing parties, gathers
information about the dispute, and then takes a decision which is binding on both the parties.
The conciliator simply assists the parties to come to a settlement, whereas the arbitrator listens
to both the parties and then gives his judgement.
Advantages:
m It is established by the parties themselves and therefore both parties have good faith in the
arbitration process.
m The process informal and flexible in nature.
m It is based on mutual consent of the parties and therefore helps in building healthy
Industrial Relations.
Disadvantages:
m Delay often occurs in settlement of disputes.
m Arbitration is an expensive procedure and the expenses are to be shared by the labour and
the management.
m Judgment can become arbitrary when the arbitrator is incompetent or biased
There are two types of arbitration:
(a) Voluntary Arbitration. In voluntary arbitration the arbitrator is appointed by both the
parties through mutual consent and the arbitrator acts only when the dispute is referred to
him.
(b) Compulsory Arbitration. Implies that the parties are required to refer the dispute to the
arbitrator whether they like him or not. Usually, when the parties fail to arrive at a settlement
voluntarily, or when there is some other strong reason, the appropriate government can
force the parties to refer the dispute to an arbitrator.
3. Adjudication. Adjudication is the ultimate legal remedy for settlement of Industrial Dispute.
Adjudication means intervention of a legal authority appointed by the government to make a
settlement which is binding on both the parties. In other words adjudication means a mandatory
settlement of an Industrial dispute by a labour court or a tribunal. For the purpose of
adjudication, the Industrial Disputes Act provides a 3-tier machinery:
(a) Labour court
(b) Industrial Tribunal
(c) National Tribunal
(a) Labour Court. The appropriate government may, by notification in the official gazette
constitute one or more labour courts for adjudication of Industrial disputes relating to any
matters specified in the second schedule of Industrial Disputes Act. They are:
m Dismissal or discharge or grant of relief to workmen wrongfully dismissed.
m Illegality or otherwise of a strike or lockout.
m Withdrawal of any customary concession or privileges.
Where an Industrial dispute has been referred to a labour court for adjudication, it shall
hold its proceedings expeditiously and shall, within the period specified in the order
referring such a dispute, submit its report to the appropriate government.
(b) Industrial Tribunal. The appropriate government may, by notification in the official gazette,
constitute one or more Industrial Tribunals for the adjudication of Industrial disputes
relating to the following matters:
m Wages
m Compensatory and other allowances
m Hours of work and rest intervals
m Leave with wages and holidays
m Bonus, profit-sharing, PF etc.
m Rules of discipline
m Retrenchment of workmen
m Working shifts other than in accordance with standing order
It is the duty of the Industrial Tribunal to hold its proceedings expeditiously and to submit
its report to the appropriate government within the specified time.
(c) National Tribunal. The central government may, by notification in the official gazette,
constitute one or more National Tribunals for the adjudication of Industrial Disputes in
m Matters of National importance
m Matters which are of a nature such that industries in more than one state are likely to
be interested in, or are affected by the outcome of the dispute.
It is the duty of the National Tribunal to hold its proceedings expeditiously and to submit its
report to the central government within the stipulated time.
Elective I 599
Strike
A strike is a very powerful weapon used by trade unions and other Labour associations to get their
demands accepted. It generally involves quitting of work by a group of workers for the purpose of
bringing the pressure on their employer so that their demands get accepted. When workers collectively
cease to work in a particular industry, they are said to be on strike. Strike action, also called labour
strike, on strike, greve (of French: grève), or simply strike, is a work stoppage caused by the mass
refusal of employees to work. A strike usually takes place in response to employee grievances. Strikes
became important during the industrial revolution, when mass labour became important in factories
and mines. In most countries, they were quickly made illegal, as factory owners had far more political
power than workers. Most western countries partially legalised striking in the late 19th or early 20th
centuries. No doubt strike is the ultimate weapon in the hands of worker and labour laws also support
strikes if it does in accordance with, if we go through the history of strikes and analyse, core reason we
find ultimately is non payment of wages to workers by their employer, followed by irregular payment of
wages and then less payment of the wages.
Types of Strike
(1) Economic Strike. Under this type of strike, labours stop their work to enforce their economic
demands such as wages and bonus. In these kinds of strikes, workers ask for increase in
wages, allowances like travelling allowance, house rent allowance, dearness allowance, bonus
and other facilities such as increase in privilege leave and casual leave.
(2) Sympathetic Strike. When workers of one unit or industry go on strike in sympathy with
workers of another unit or industry who are already on strike, it is called a sympathetic strike.
The members of other unions involve themselves in a strike to support or express their
sympathy with the members of unions who are on strike in other undertakings. The workers
of sugar industry may go on strike in sympathy with their fellow workers of the textile industry
who may already be on strike.
(3) General Strike. It means a strike by members of all or most of the unions in a region or an
industry. It may be a strike of all the workers in a particular region of industry to force demands
common to all the workers. These strikes are usually intended to create political pressure on
the ruling government, rather than on any one employer. It may also be an extension of the
sympathetic strike to express generalised protest by the workers.
(4) Sit down Strike. In this case, workers do not absent themselves from their place of work when
they are on strike. They keep control over production facilities. But do not work. Such a strike
is also known as ‘pen down’ or ‘tool down’ strike. Workers show up to their place of
employment, but they refuse to work. They also refuse to leave, which makes it very difficult
for employer to defy the union and take the workers’ places. In June 1998, all the Municipal
Corporation employees in Punjab observed a pen down strike to protest against the non-
acceptance of their demands by the state government.
(5) Slow Down Strike. Employees remain on their jobs under this type of strike. They do not stop
work, but restrict the rate of output in an organised manner. They adopt go-slow tactics to put
pressure on the employers.
(6) Hunger strike. In this form of industrial protest, workmen resort to fasting near the workplace
in order to demand the employer to redress their grievances.
On 18th July, 2012, India’s leading car manufacturer Maruti Suzuki Udyog Ltd. in Manesar
factory workers are on an agitation at factory premises where a human resource manager
burned to death by workers, made severe damage to companies property and hurt severely
several other workers. Thereby MSUL (Maruti Suzuki Udyog Ltd.) sacked all of its workers
who ever involved in that incident and filed a police complaint against those employees on
8th November, 2012. Few workers strike who are dismissed but claims that they were not
involved resorted to hunger strike demanding to reinstate them.
(7) Wild cat strikes. These strikes are conducted by workers or employees without the authority
and consent of unions. In 2004, a significant number of advocated went on wildcat strike at
the City Civil Court premises in Bangalore. They were protesting against some remarks
allegedly made against them by an Assistant Commissioner.
Legal Prohibitions on Strike in India

According to Industrial Disputes Act 1947, a strike is “a cessation of work by a body of persons
employed in an industry acting in combination; or a concerted refusal of any number of persons who
are or have been so employed to continue to work or to accept employment; or a refusal under a
common understanding of any number of such persons to continue to work or to accept employment”.
This definition throws light on a few aspects of a strike. Firstly, a strike is referred to as stoppage
of work by a group of workers employed in a particular industry. Secondly, it also includes the refusal
of a number of employees to continue work under their employer.
In a strike, a group of workers agree to stop working to protest against something they think is
unfair where they work. Labors withhold their services in order to pressurise their employment or
government to meet their demands. Demands made by strikers can range from asking for higher
wages or better benefits to seeking changes in the workplace environment. Strikes sometimes occur so
that employers listen more carefully to the workers and address their problems.
According to Industrial Disputes Act 1947, Strike [Sec. 2 (q)]. Strike means “a cessation of work by
a body of persons employed in any industry acting in combination or a concerted refusal under a
common understanding of any number of persons who are or have been so employed, to continue to
work or to accept employment”. Mere stoppage of work does not come within the meaning of strike
unless it can be shown that such stoppage of work was a concerted action for the enforcement of an
industrial demand.
Procedure of Strikes in India

According to Sec. 22 (1)
Worker should follow the rules mentioned below for doing strike. The rules are as follows:
1. Issue of notice of strike is mandatory;
2. The date of strike must be within 6 weeks from the date of issue of strike notice;
3. The day of strike must not be within 14 days from the date of notice;
4. There should be no strike on any day before the date specified in the strike notice;
5. There should be no strike during the pendency of conciliation proceedings and 7 days after
the conclusion of said proceedings;
INDUSTRIAL ACTION
Industrial action refers to action in which employees work in a manner different from the customary
manner. It includes restrictions, limitations, or bans upon work.
Failing to attend for work can constitute industrial action, as can a refusal to perform work while
at the workplace.
Lockout refers to a specific of industrial action associated with employers, in which the employer
refuses employees entry to the workplace. Most typically, industrial action is taken in support of a
claim(s) pressed by employees against the employer.
Elective I 601
Industrial action not limited to employees. Industrial action is not limited to action by employees.
Employers may also take action in response to employee action or in an attempt to get employees to
comply with demands or to get them to refrain from doing certain activities (such as a lockout, as
mentioned previously).
Under the Fair Work Act 2009, employers are only be able to take lawful industrial action in
response to employee-initiated industrial action. This means that employers are not able to initiate the
action. Before the employer can take action in response, it must genuinely try to reach agreement with
its employees.
The employer must also give written notice to all bargaining representatives of the intended
industrial action and make reasonable attempts to notify employees.
The Fair Work Act 2009 allows employees to take protected industrial action in response to employer
industrial action. If so, the employer must receive three days’ written notice in advance. Contractors
may be involved in or affected by industrial action.
Strike action. A strike is a collective withdrawal of labour by employees. Under such action, employees
refuse to perform all work, not just selected duties. Strikes are usually, but not always, organised by a
union. The purpose of a strike is to pressure an employer (or other third party) into complying with
particular demands or refraining from doing something.
Under the federal Fair Work Act 2009 strike action may be ‘protected action’ if undertaken during
a bargaining period for an enterprise agreement and other formal procedures have been complied
with. Protected action may also cover other types of industrial action as well as strikes. ‘Protected
action’ means that industrial tribunals will not intervene to resolve the dispute as long as it is conducted
within the rules of legitimate protected action.
Six Conditions for Protected Industrial Action

Six important conditions must be satisfied in order for industrial action to be protected under the Fair
Work Act.
1. Industrial action will not be protected if taken before the nominal expiry of an enterprise
agreement.
2. The action must be about:
m matters pertaining to the employer’s relationship with its employees or the employees’
organisation (e.g., a union)
m payroll deductions or
m how the agreement will operate. If the action is not about any of these matters, it cannot be
protected industrial action.
3. The action must be organised by the employees or their bargaining representative (e.g. the
union).
4. Before action is taken, the parties must have genuinely tried to reach agreement.
5. A majority of eligible employees must vote in support of the action through a secret ballot.
6. The employer must receive at least three days’ written notice of the industrial action before it
is taken.
The Fair Work Act specifies that striking employees should not be paid for the period of the strike.
Continuity of employment however is not affected.
The issue of whether employees have ‘the right to strike’ is one of the most contentious issues in
Protected action not available

Protected industrial action is not available in relation to:
m a proposed Greenfields agreement
m a proposed multi-enterprise agreement
m a dispute about the membership demarcation of different unions at the worksite
m pattern bargaining, or
m unlawful terms.
1. Work bans. Work bans, as the name suggests, involve employees refusing to do certain types
of work or refusing to work with particular management, employees or other third parties. For
example, a work ban may include employees refusing to train new employees who have been
brought into the company to do the same job but on different conditions.
Bans on overtime are also included in this category of industrial action.
This type of action is attractive for collectively organised employees as they are theoretically still
at work and getting paid, however the action can still have an adverse impact on the employer’s
business Employers may seek orders from industrial tribunals to have work bans lifted.
2. Go slows. A ‘go slow ‘ is where employees delay production or work flow to put pressure on
the employer. The employees deliberately work slower than they would under normal
conditions. A ‘go slow’ is often difficult for an employer to detect and equally as difficult for an
employer to counter as theoretically, employees are still doing their job, even if at a slower rate
than usual.
3. Work to rule. A work to rule campaign involves employees taking their work responsibilities
very literally. For example, under a work to rule campaign, an employee who regularly works
additional time for no additional benefit would only work the official set hours of the
organisation. Another example may be a machinist in a factory who under normal
circumstances would help out on other machines however, when working to rule, would only
operate the machine he or she was originally hired to operate.
Such action can have a debilitating effect on a company. This type of action can also highlight
to employers how much they rely on the good faith of their employees to do additional work
and tasks as part of their everyday duties.
Tribunal orders may be sought by employers — as with work bans and ‘go slow’ tactics.
4. Stop work meetings. Stop work meetings may be authorised or unauthorised. Some awards
and agreements make allowance for authorised stop work meetings. These authorised meetings
occur without loss of pay. Authorised meetings may just be by agreement between the employer
and employees or union representative. Such an agreement may limit the number of authorised
meetings allowed and the duration of such meetings. Meetings in excess of those requirements
would be deemed unauthorised.
An unauthorised meeting is effectively a type of strike. It is a temporary withdrawal of labour
and so time spent at an unauthorised stop work meeting is unpaid.
5. Picketing. Picketing often occurs in conjunction with strike action. It involves the physical
presence of striking workers outside a workplace. Picketing may also involve blockading
certain people or things from entering or leaving the workplace.
Picket lines can be very intimidating and are often used as an industrial tactic to add weight
to strike action. Picketing may breach the general law and police may consequently intervene
e.g., breach of the peace or similar offences may be committed.
6. Lockouts by employers. A lockout is a form of industrial action open to employers. As the
name suggests, a lockout occurs when an employer closes a worksite or premises and refuses
Elective I 603
entry to employees to work. An employer will usually stage a lockout in response to industrial
action taken by employees or to compel employees to accept particular terms or conditions of
employment. A lockout does not terminate an employee’s contract of employment and as such
continuity of employment is not affected.
A lockout may be ‘protected action’ for the purposes of the Fair Work Act 2009 if it occurs
during a bargaining period for an enterprise agreement and the other appropriate procedures
and conditions are adhered to.
7. Secondary boycotts. A secondary boycott, when carried out by a union, usually involves a
union putting indirect industrial pressure on an employer. The union arranges with or forces
(by threats of industrial action etc.) a third party, usually a supplier of goods to the employer,
to withhold its supply of goods until the union’s demands are met.
The area of secondary boycotts is a veritable mine field and so if you feel you may be the subject
of secondary boycott action it would be wise to seek expert legal advice.
8. No work as directed, no pay. An employer is entitled, at common law, to refuse payment to
employees if the employees refuse to perform the work they have been contracted or directed to
perform. The concept of ‘no work as directed, no pay’ is generally applicable to award/
agreement employees as well as employees working under common law contracts and other
contracts that may be regulated by legislation.
Employers generally adopt the ‘no work as directed, no pay’ tactic in response to employee
action such as work bans or go-slows.
The Fair Work Act prohibits strike pay, and employers must dock pay for industrial action
regardless of whether the action is protected or unprotected.
For protected action, the amount of pay deducted is the actual period of the action. For
unprotected industrial action, the minimum deduction is four hours’ pay.
9. Orders to stop or prevent industrial action. Orders are orders available under the Fair Work
Act to stop or prevent industrial action. Fair Work Australia may make orders to prevent or
stop industrial action. Orders may be sought by:
m the Commission on its own motion;
m a person who is directly affected or likely to be directly affected by the industrial action;
m a party to the industrial dispute; or
m an organisation of which a person who is directly affected is a member.
m Orders are mostly used by employers wishing to stop or prevent threatened industrial
action however, unions can also seek orders.
Protected industrial action can lose its ‘protected’ status if there is significant and imminent
economic harm to the employees, the employer, or a third party. Also, the action can be called
off by either Fair Work Australia or the Minister if life is being endangered, or significant
damage is being done to the Australian economy or an important part of the economy.
In some circumstances, Fair Work Australia is able to intervene in disputes and make the
agreement for the parties.
Fair Work Australia also has the power to:
m settle disputed terms of a proposed agreement
m issue bargaining orders to enforce good faith bargaining obligations
m settle industrial disputes, and
m make workplace determinations in some instances where negotiating parties cannot reach
agreement and other avenues have been exhausted.
10. Good faith bargaining. The Fair Work Act sets out five good faith bargaining requirements that
all bargaining representatives must follow:
m attending and participating in meetings at reasonable times
m disclosing relevant information (other than confidential or commercially sensitive
information) in a timely manner
m responding to proposals made by other bargaining representatives in a timely manner
m giving genuine consideration to the proposals of other bargaining representatives and
reasons for any responses
m refraining from capricious or unfair conduct that undermines freedom or association or
collective bargaining.
m Where an employer refuses to bargain with the employees, FWA has the power to test the
support among the employees. Where an employer has not started bargaining or refuses
to bargain, employees can apply to FWA for a ‘majority support determination’. FWA may
issue good faith bargaining orders against the employer where a declaration has been
issued and the employer refuses to bargain.
Where a bargaining representative has a concern about the scope of a proposed enterprise
agreement, it can apply to FWA for a scope order setting out which employees the proposed
agreement should cover. This may happen where a bargaining representative wishes to cover
a category of employee not covered by previous agreements. No penalty occurs where a scope
order is breached, although it may be relevant if bargaining orders are subsequently issued by
FWA.
11. Stand-downs. A stand-down is the suspension of employees without pay. This action may be
available to an employer whose employees are engaging in industrial action. Stand-downs
may be sought in relation to employees who are not on strike but who are unable top work
because of strike action by other employees.
Traditionally, however, stand-downs are not used as disciplinary measures against striking
workers. A stand-down can also be utilised by an employer at times when it cannot pay wages
for reasons beyond it’s control, for example, a downturn in business.
BI-PARTISM
The bipartite consultative machinery comprises two important constituents, viz., the works committees
and the joint management councils. These are purely consultative, and not negotiating bodies. This
consultative joint machinery – with equal representation of the employers and the workers – has been
set up exclusively for dealing with disputes affecting the plant or industry.
Bipartism is a system of industrial relations where social and labour issues are discussed
Between trade unions and management, usually at the enterprise level.
Evolution of Such Bodies

The importance of bipartite consultative machinery was first recognised as early as in 1920, when a
few joint committees were set up in the presses controlled by the Government of India. They were also
introduced in Tata Iron and Steel Company at Jamshedpur.
The importance of bipartite consultation was further highlighted by the First-Five-Year Plan which
maintained: There should be the closest collaboration, through the consultative committee at all levels,
between employers and employees for the purpose of increasing production, improving quality,
reducing cost and eliminating waste. The second Plan also stressed the need for joint consultation
and progressively associating the workers and technicians, wherever possible, in management.
Elective I 605
Bipartite Bodies
The two important constituents of bipartite consultative machinery are (A) Works Committee, (B) Joint
Management Councils. A brief review of these bodies is given here.
1. Work Committee. These committees have been regarded as the most effective social institution
of industrial democracy and as a statutory body, established within the industrial units with
representatives of the management and workmen, for preventing, and settling industrial
disputes at the unit level. The works committee can be formed by any enterprise, employing
100 or more workers.
Its objectives are:
(i) To remove the causes of friction in the day-to-day work situation by providing an effective
grievances-resolving machinery;
(ii) To promote measures securing amity and good relationship;
(iii) To serve as a useful adjunct in establishing continuing bargaining relationship; and
(iv) To strengthen the spirit of voluntary settlement, rendering recourse to conciliation,
arbitration and adjudication rather infrequent; for these are achieved by commenting
upon matters of concern or Endeavour to compose any material difference of opinion in
respect of such matters.
Meeting and Submission of Return
The work committee should meet at least once in a three month. As per the requirement of the
meeting can be held more frequently also, meeting are held during the working hours of the
establishment and the representative of workers, attending the meetings are deemed be on
duty. The reports and the return are to be submitted not later then the 20th day of the month
following the half years.
2. Joint Management Council. These committees give labour a greater sense of participation
and infuse a spirit of co-operation between the two parties without encroaching upon each
other‘s sphere of influence, rights and prerogatives. They establish a channel of close mutual
interaction between labour and management which, keeping tension at a low level, generates
a co-operative atmosphere for negotiation and settlement. These committees also aim at making
the will of the employees effective in the management; ensure the operation of the private-
owned concern in conformity with national interests and provide for a popular agency for
supervising the management of nationalised undertakings. In brief, such committees try to
promote industrial goodwill and harmonious relations through better understanding of
employees by management and of management by workers. To accomplish this goal, the
works committees are entrusted with a number of functions which are of benefit to management
as well as employees.
The concept of the JMC is implicit in the industrial relation policy resolution of April 1956 in
the following statement
“in a socialist democracy, labour is a partner in the common task of development and should
participate in it with enthusiasm. There should be joint consultation ;workers and technicians
should, wherever possible, be associated progressively in management. Enterprise in the
public sector have to set an example in this respect.
Bipartism’s Link with Tripartism

Bipartism is complementary to tripartism at national and other levels. Bipartism and tripartism should
be seen as the two sides of the same coin. Both mutually reinforce each other. The prerequisites for the
success of both bipartism and tripartism-notions about equality among partners, freedom of association,
the right to collective bargaining, and democratic decision-making, among others-are similar.
National and centralised tripartite consultations are usually more influenced by political
considerations and state support. Bipartism arrangements, particularly in the context of the current
trend towards decentralised firm/plant-level bargaining, adjustment to structural and other changes,
and economic crisis, are influenced more by economic considerations. The institutional framework for
industrial relations influences substantially, the relative role of tripartism and bipartism in responding
to economic changes/policies at macro level.
Tripartism’s Contribution to Bipartism

Tripartite consultations and agreements can exercise profound influence in directing and shaping
collective bargaining and industrial relations. The three-tier frame work of industrial relations proposed
by Kochan, (1987) suggests a direct and active role for tripartite consultation at macro level, to be
reinforced by bipartite consultations, collective bargaining, communication, information sharing,
and employee participation at industry and firm/plant level. Whether it was the arrangements for the
avoidance/settlement of disputes, procedures for recognition of unions, grievance redressals,
consultations and cooperation at work place, or collective bargaining on a host of matters relating to
industrial relations and human resources, tripartite initiatives played a substantial role in setting up
international labour standards, enactment of national legislations, and conclusion of national
agreements.
In the Indian context, for instance, the following tripartite declaration played a useful role, at least
for a number of years, in influencing bipartite relations and agreements relating to union recognition,
automation, and modernisation.
1. Code of discipline,
2. Code of Conduct,
3. Automation Without Tears.
Bipartism’s Contribution to Tripartism

Bipartism or more importantly, collective bargaining, which is a key instrument of bipartism, may
reduce the need for tripartite interventions. In some cases, tripartism begins where bipartism fails. For
instance, when bipartite dialogue does not result in dispute avoidance or settlement, tripartite
interventions such as conciliation/mediation and arbitration/adjudication become imperative.
Bipartite arrangements can contribute in the following ways to facilitate meaningful and effective
tripartite social dialogue at industry and national level:
1. In countries where the representative character of the social partners is very much limited due
to the predominant characteristics of an economy (large unorganised, in formal-sector
economy), the outcomes of tripartite discussions do not necessarily reflect the wishes of the
large majority of the working population, not to speak of the society at large. In these and
similar other situations it is better to adopt a bottom-up approach through bipartite dialogue
at enterprise level.
2. The interests of employers and workers are affected by government policies in areas other
than industrial relations such as fiscal, monetary, trade, taxation, licensing, etc. The effects of
these aspects is ;more closely and effectively reckoned and evaluated in bipartite consultations,
particularly collective agreements, than in tripartite dialogue.
3. Consensual approaches are best planned and implemented if they are developed by parties at
the grassroots level, that is plant level. The parties/persons directly affected should be involved
in consensus-building social dialogue. Externally imposed consensus through tripartite
declarations often may not work effectively at industry/enterprise level.
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TRIPARTITE
Tripartism is a system of labour relations in which the state, employers, and workers are autonomous
yet interdependent partners, pursuing common interests and participating in decisions affecting
them in a binding spirit of mutuality and reciprocity. This can take place at either or both macro and
micro levels.
Tripartite consultation is an important feature of India‘s industrial relations system. It has a long
history in India as it was set up as early as 1942. The Indian Labour Conference (ILC) and the Standing
Labour Committee (SLC) are two main forums for Tripartite Consultation. The objectives of Tripartite
Consultation could be mentioned as under:
m To promote uniformity in labour legislation.
m To lay down a procedure for settlement of industrial disputes.
m To consider matters of importance to both the managements and labour.
m Tripartite forums evolve norms or standards in the form of guidelines.
There are a number of tripartite bodies which operate at the Central and State levels. The Indian
Labour Conference, Standing Labour Committees, Wage Boards and Industrial Committees operate at
the Central level and State Labour Advisory Boards operate at the state level. All these bodies play an
important role in reaching at voluntary agreements on various labour matters. Though the
recommendations of these bodies are only advisory in nature they carry considerable weight with the
government, workers and employers. Some important measures agreed to by the Indian Labour
conference in past are:
1. Setting up of bipartite works committees, joint consultative and production committees.
2. Adoption by employers and unions of a voluntary code of discipline;
3. Following proper grievance and disciplinary procedures;
4. Deciding norms for fixing need based wages;
5. Rationalising and revising wage structures of important industries through non-statutory
wage boards; and
6. Encouraging voluntary arbitration for the settlement of industrial disputes.
Industrial relations in India have been shaped largely by principles and policies evolved through
tripartite consultative machinery at the industry and national levels. The aim of the consultative
machinery is – to bring the parties together for mutual settlement of differences in a spirit of co-
operation and goodwill. The role of the tripartite machinery has been summarised by the Planning
Commission thus – Labour policy in India has been evolving in response to the specific needs of the
situation in relation to industry and the working class.
Evolution of Tripatite Bodies

The need for consultation on labour matters on the patterns set by the I.L.O. was recommended by the
Whitley Commission in 1931. It envisaged a statutory organisation which should be sufficiently large
to ensure adequate representation of the various interests involved; but it should not be too large to
prevent the members from making individual contributions to the discussion. The representatives of
employers, of labour and of government should meet regularly in conference. The commission also
recommended that labour members should be elected by registered trade unions and employers‘
representatives should be elected by their associations.
But the recommendation was not implemented and nothing could be done in this respect till the
outbreak of the Second World War, which necessitated the need for maintenance of industrial peace.
During the Second World War separate consultations with the representatives of labour and employers
were held in 1941 and 1942 by the Government of India to finalise post-war labour programmes. The
experience of these consultations highlighted the necessity of holding joint meetings of the
representatives of the government, workers and employers, thus, providing a common platform for the
resolution of differences between the employers and workers by means of discussion and mutual
understanding. Accordingly, the Fourth Labour Conference was held in August 1942. It set up
permanent tripartite collaboration machinery and constituted a Preliminary Labour Conference (later
named as the Indian Labour Conference – ILC) and the Standing Labour Advisory Committee (which
subsequently dropped the word Advisory from its title SLC). Initially the ILC consisted of 44 members
whereas the SLC was about half the size of the ILC. The pattern of representation was governed by the
obtaining in the International Labour Conference. It ensured:
i. Equality of representation between the government and the non-government representatives;
ii. Parity between employers and workers;
iii. Nomination of representatives of organised employers and labourers was left to the concerned
organisations; and
iv. Representation of certain interests (unorganised employers and unorganised workers), where
necessary, on an adhoc basis through nomination by government. The delegates are free to
bring one official and one non-official adviser with them.
Tripatite Bodies
Tripartite bodies have been set up by the government to provide a forum of discussion and consultation
on various labour related issues.
Some of the notable bodies are
m The Indian Labour Conference (ILC)
m The Standing Labour Committee (SLC)
m The Committee on Conventions
m The Industrial committee
Other bodies of tripartite nature which deals in various aspects of labour problems
m Steering Committee on Wages
m Central Implementation and Evaluation Machinery
m Central Boards of Workers Education
m National Productivity Council
Tripartism promotes the idea of partnership between the labour and the management. The two
main principles of tripartism are:
m Management and workers should share a relationship of partnership rather than that of
employer and employee. They should work in synergy towards the building up of the national
economy.
m It holds the whole community liable for protecting the interests of workers and ensures that
workers are not deprived of their due share in gains of economic development.
1. Indian Labour Conference (ILC)
The first tripartite labour conference, consisting of the representative of the government, employers
and workers was held at Delhi in august 1942. The conference was held to discuss labour relations
issues, procedure for the settlement of industrial disputes and to promote uniformity in labour
legislation.
This conference is consisted in two organisations namely ILC/SLC.
Both ILC and SLC are two important constituents of tripartite bodies. They play a vital role in
shaping, the I.R. system of the country.
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A brief account of these bodies is discussed here:
The agenda for ILC/SLC meetings was settled by the Labour Ministry after taking into consideration
the suggestions sent to it by member organisations. These two bodies worked with minimum procedural
rules to facilitate free and fuller discussions among the members. The ILC meets once a year whereas
the SLC meets as and when necessary.
i. The rules and procedures, which characterise the Indian tripartite consultative machinery, are
largely in tune with the recommendations of the ILO Committee on consultation and co-operation.
(Recommendation No.113).
The objects of the Indian Labour Conference (ILC) are:
a. To promote uniformity in labour legislation; b. To lay down a procedure for the settlement of
industrial disputes; and c. To discuss all matters of all-India importance as between employers and
employees. The function of the ILC is to – advise the Government of India on any matter referred to it
for advice, taking into account suggestions made by the provincial government, the states and
representatives of the organisations of workers and employers.
A detailed account of various resolutions adopted by the ILC‘s in their last two sessions is presented
here:
A. The 30th Session of the Indian Labour Conference
The 30th Session of the ILC was held on September 7-8, 1993 at New Delhi. After deliberations,
it arrived at the following conclusions.
1. On the impact of New Industrial Policy, the chairman referred to the assurance by the
Prime Minister that it would not lead to any human distress and the legitimate interests of
labour would be protected.
2. In regard to retraining and redeployment, the conference desired identification of labour
for such retraining and redeployment and a scheme for industry-wise and occupation-
wise redeployment. The conference also expressed the view that Government should
identify the agency for retraining and their redeployment. The conference also wanted to
know how labour of one unit would be redeployed in another unit.
3. For absorption of surplus labour, if any, as for maximising capacity utilisation, the
conference suggested diversification and broad-basing by working the units round the
clock and on all days of the week.
4. The conference expressed its serious concern at the low productivity of Indian industry
and expressed its determination to improve wherever necessary its productivity, enhance
its quality and reduce the price of goods to make them internationally competitive. The
conference decided to strive for improvement in discipline and attitude to work at all
levels. It also decided that bipartite efforts to improve productivity and quality should be
institutionalised.
5. The Trade Unions demanded:
i. The removal of ceiling on bonus both for eligibility and for computation by
promulgation of an ordinance;
ii. The immediate implementation of the DA rate of Rs. 2 per point of the Consumer Price
Index (1960 series).
iii. Permission for the managements of the public sector units to commence negotiations
with the unions on their charter of demands immediately.
iv. Clearance by government to the agreement regarding pension and for the pension
scheme for its early introduction.
v. Enhancement of the rate of interest on Employees‘ Provident Fund to at least
13 per cent.
vi. Enhancement of the limits of exemption of income tax substantially.
6. The employers wanted postponement of the decision on removal of ceiling on bonus both
for eligibility and computation of bonus by one year so that a well- thought out scheme
could be evolved. They also wanted productivity linked bonus as prescribed under the
law.
7. The trade unions indicated that the first National Commission on Labour was appointed
about 25 years ago and a time had come to set up another National Commission on
Labour to examine the issues that labour was facing today in view of the many changes
that has occurred in the meantime.
8. The Labour Cell in the Planning Commission may be revived to facilitate consultation
with trade unions while formulating policies concerning labour. The view expressed by
the participants in the conference with regard to employment policy may be conveyed to
the Planning Commission for its consideration and for the consideration of the two Sub-
Committees of the Planning Commission/ NDC which are considering strategies for
implementation of the employment policy.
B. 31st Session of I.L.C.
This session of I.L.C. was held at Delhi on 3rd-4th January 1995. In this session various
problems of industrial relations in the context of changed economic environment were
discussed. The various resolutions adopted at the said conference are as under.
1. The institution of the Indian Labour Conference should be strengthened further
2. The Central and State Governments and the social partners should come together in
making the comprehensive industrial relations law a reality and an instrument of
production, productivity, employment generation and enhancement of living standards.
3. Productivity of economic enterprises as a whole is of paramount importance.
4. The government should give special attention to streamlining the public distribution
system, particularly in centers of concentration of working people.
5. The Government should review the situation arising out of the wage negotiations in
Central Public Sector Undertakings and should facilitate speedy conclusion of wage
negotiations and settlements.
6. The worker‘s representatives demanded that the eligibility and calculation ceilings under
the Payment of Bonus Act should be scrapped, whereas the employers‘ representatives
demanded that a quick decisions should be taken on introduction of DA slabs.
7. The government should introduce the Pension for Provident Fund subscribers on priority
basis and there should be tripartite consultations before its introduction. Management of
Social Security Funds should be professionally handled so as to maximise the returns on
investments.
8. Steps should be taken for speedy and orderly investigation into the rehabilitation of sick
industrial enterprises registered with the BIFR, minimising distress for the workers and
disabilities for the employers.
9. The constitution and the functioning of the National Renewal Fund should be reviewed
such that the Fund truly serves the purpose of industrial renewal and regeneration and
creation of employment opportunities.
10. Implementation of training programmes should be undertaken within the framework of a
well thought-out plan.
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11. The Central and State Governments should give high priority to allocation of resources for
elementary and vocational education. Special attention should be given to the education
of women.
12. The government should enact, on priority basis, laws for covering agricultural and
construction workers.
13. The Labour Ministry should set up an Advisory Body to review, from time to time, the
status of women.
14. The Constitution of the Child Labour Advisory Committee should be reviewed to ensure
that it is fully representative of the social partners.
15. Representatives from workers‘ and employers‘ organisations should be included in the
National delegation to the World Sumit for Social Development.
16. The Vocational Training System in the country should be reorganised.
17. The resolutions of the 32nd Session of the Standing Labour Committee in respect of the
social clause, child labour elimination and bonded labour were fully endorsed. The social
partners should take further follow up action on the resolutions.
18. The new International Economic Order holds out vast opportunities for economic
betterment and upgradation of the living standards of the people. The risks involved in
formulating and implementing economic policies to avail of these opportunities should
be so handled as to minimise human distress.
2. Standing Labour Committee
The second important organisation in the Indian tripartite machinery is standing labour committee
(S.L.C.) & like ILC.
The Standing Labour Committee‘s (SLC) main function is to consider and examine such questions
as may be referred to it by the Plenary Conference or the Central Government, and to render advice
taking into account the suggestions made by various governments, workers and employer.
The representatives of the workers and employers were nominated to these bodies by the Central
Government in consultation with the all-India organisations of workers and employers.
The objects of the SLC is the same as that of ILC
a. To promote uniformity in labour legislation;
b. To lay down a procedure for the settlement of industrial disputes; and
c. To discuss all matters of all-India importance as between employers and employees.
A. The 31st Session of Standing Labour Committee
The 31st session of S.L.C was held in New Delhi on July 25, 1992. The Committee arrived at the
following conclusions:
1. It was resolved that future sessions of the Standing Labour Committee (SLC) should carry
fewer items on the agenda so that these could be discussed in greater detail.
2. It was resolved that Government may bring specific proposals for new Industrial Relations
Law in the ensuring session of Indian Labour Conference which should reflect the needs
of the qualitative change in the industrial/economic scenario in the national/global context.
3. It was resolved to set up a tripartite sub-committee to review the implementation of important
Labour laws.
4. It was resolved to set up an autonomous Bipartite Productivity Councils at the national,
regional, industrial and plant levels.
B. The 32nd Session of Standing Labour Committee
The thirty second session of the Standing Labour Committee was held in New Delhi on
October 27, 1994. It discussed various issues concerning employment, vocational training,
child labour, bonded labour, labour standards and international trade. It adopted three
important resolutions discussed below:
(a) Social Clause. It was agreed that the government along with employers and labour
organisations would resist in I.L.O. and all other for any attempt to introduce – Social
clause, in relation to carrying our marketing at the international level, contingent upon
enforcement of labour standards. Further, it advocated sustained national and international
action for upgrading labour standards without any trade linkage.
(b) Child Labour. With respect to child labour, it remarked that the – Central and State
Governments and Organisations of employers and workers should take co-ordinated
action for the elimination of child labour in hazardous occupations by the year 2000 and
in other employments progressively. It also emphasized that both Central and State
Governments should implement time bound and action plans to take away children from
work and provide them education, primary vocational training, health and nutrition and
concurrently provide to the parents of such children gainful employment.
(c) Bonded Labour. It exhorted that all states should take fresh surveys for the identification
release and rehabilitation of bonded labour. Besides this, measures shall be initiated to
check the relapse of bondage of such labour.
3. Committee on Conventions
This is a three-man tripartite committee set up in 1954. The object was – (i) to examine the ILO conventions
and recommendations which have not so far been ratified by India; and (ii) to make suggestions with
regard to a phased and speedy implementation of ILO standard.
4. Industrial Committees
The eighth session of the ILC (1947) decided to set up Industrial Committees – to discuss various
specific problems special to the industries covered by them and submit their report to the Conference,
which would co-ordinate their activities. These committees are tripartite bodies in which the number
of workers‘ representatives is equal to the number of employers‘ representatives. They do not meet
regularly; meetings are considered afresh each time a session is called.
The committees that were set up immediately after independence related to plantations, cotton
textiles, jute, coal mining, mines other than coal, cement, tanneries, and leather goods manufactures,
iron and steel, building and construction industry, chemical industries, road transport, engineering
industries, metal trades, electricity, gas and power, and banking.
A special tripartite committee was constituted by the Ministry of Labour November in 1992 to
study the impact of the new industrial policy on various labour and other problems and for making
useful recommendations. The committee in its meetings on December 21, 1991 and January 21, 1992
took a note of the analysis of the performance of public sector units made by the department of public
enterprises in its monograph on performance status central public sector enterprises and recognised
that some of the public sector units are chronically sick required radical treatment. The committee
decided setting up of Tripartite Industrial Committees to examine endemically sick units and suggest
preventive measures. As per the recommendations of special tripartite committee six industries
committees viz… (1) cotton textiles, (2) jute, (3) chemicals, (4) engineering, (5) electricity, (generation
and distribution), (6) road transport were revived. On the major conclusion of these tripartite committee
was that there should be case by case discussion on sick unit for their revival and before taking a final
decision on sick PSUs, BIFR should be urged to consider the views of tripartite committees. Another
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important conclusion of the tripartite committees was that at the enterprise level workers and
management should prepare a joint revival plans on the basis data supplied by the concerned
administrative ministry/management. The revival proposal would then be considered by the Sectorial
tripartite committee.
Other Committees
(1) Committee on N.T.C. Turnaround
The Labour Ministry constituted a special committee to consider the turn-around strategy for
NTC on June 26, 1993. On the recommendation of this committee, a sub-committee was
constituted to consider the implementation of turnaround strategy. It had eight rounds of
meetings. This committee led to the final agreement on April 9, 1994 for the modernisation of
N.T.C.
(2) Committee on Plantation
For the effective amendment of the Plantation Labour Act, 1951, a Tripartite Committee on
Plantation was reconstituted. The first meeting of the committee took place on April 27, 1994.
A sub-committee of the tripartite committee also considered the specific issue relating to medical
facilities was held on April 27, 1994. The consensus arrived at meetings called for amendment
in Plantations Labour (Amendment) Bill 1992 (that was earlier introduced by the government
in the Rajya Sabha).
The 41st session of the Labour Ministers conference was held in New Delhi. On August 13,
1992 under the chairmanship of Union Minister of State for Labour. After deliberations on
various issues it arrived at the following conclusion:
(i) The Ramanujan Committee report on trade unions was considered by the conference it was
decided to place the report before the next I.L.C. (ii) It was decided to appoint a committee of
labour ministers to go into the recommendations of National Commission on Rural Labour
(NCRL) pertaining to (1) Social Security, (2) Central legislation for agriculture labour, (3)
Central legislation for construction workers, (4) Appointment of National Commission on
Bonded Labour. (iii) It was decided to convene a labour minister conference to consider the
question of improvement of quality of medical services rendered under the E.S.I.C. (iv) It was
held that restriction on the employment of outsider and the problem of inter state migrant
worker needs serious consideration and therefore be referred to inter state and even to the
national integration council.
For safeguarding the interest of child labour it was emphasized that the Child Labour
(Prohibition and Regulation) Act, 1986 needs more effective implementation. The conference
also called for the amendment of the Act.
(3) Steering Committee on Wages
It was set up in 1956 as a study group on wages and was subsequently reconstituted as the
steering committee on wages. It consists of representatives of state governments, employers
and workers and an economist. The functions of this committee are: (i) to study trends in
wages, production and prices; (ii) to plan collection of material for drawing up a wage map of
India; and (iii) to draw up reports from time to time for laying down principles which will
guide wage fixing authorities.
(4) Central Implementation and Evolution Machinery
The 18th session of the Standing Labour Committee in 1957 recommended the setting up of a
special machinery at the Centre as well as in the states to ensure proper implementation of
labour awards, agreements and Code of Discipline. The implementation machinery at the
Centre consists of an Evaluation and Implementative Division and a tripartite implementation
committee, consisting of 4 representatives each of central employers‘ and workers‘
organisations with the union labour minister as chairman.
(5) Central Boards of Workers’ Education
Was constituted to encourage the growth of strong and well-informed trade union movement
conducted by the workers themselves on responsible and constructive lines. This consists of
representatives of employers and workers, and of central and state governments.
(6) National Productivity Council
Consists of representatives of the government, employers‘ associations, labourers‘ organisations
and certain independent experts. It encourages the productivity in the country.
CODE OF DISCIPLINE
down which applies to both public and private sector enterprises. It specifies various obligations for
the management and the workers with the objective of promoting cooperation between their
representatives.
The Code of discipline is based on the following principles:
m The existing machinery for the settlement of disputes should be utilised.
To ensure better discipline in industry, management and unions agree on not indulging into various
actions. These actions can be summarised as follows:
m that no unilateral action should be taken in connection with any industrial matter and that
should be settled at appropriate level;
m that the existing machinery for settlement of disputes should be utilised with the utmost
efficiency;
m that there should be no strike or lock-out without prior notice;
m that neither party will have recourse to coercion, intimidation, victimisation or go –slow
tactics;
m that they will avoid litigation, sit-down and stay-in strikes and lock-outs;
m that they will promote constructive co-operation between their representatives at all levels
and as between workers themselves;
m that they will establish upon a mutually agreed grievance procedure which will ensure a
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m that they will abide by various stages in the grievance procedure and take no arbitrary action
which would by-pass this procedure.
Management Agrees
m not to increase work-loads unless agreed upon or settled otherwise.
m not to support or encourage any unfair Labour practice such as discrimination and
victimisation of any employee.
m to take prompt action for settlement of grievances and implementation of settlements, awards,
decision and orders.
m to take appropriate disciplinary action against its officers and members in cases where enquiries
reveal that they were responsible for precipitate action by workers leading to indiscipline.
Union Agrees
demonstrations.
during working hours, unless as provide for by law agreement or practice.
n Insubordination.
m To take prompt action to implement awards, agreements, settlements and decisions.
language (s); and
The code symbolises the policy of the Government to build up an industrial democracy on voluntary
basis. It tries to preserve industrial peace with the help of the employers and the employees.
The Code of Discipline is the basis of non-violent relations between the union and the management.
It should be followed in letter and spirit.
INDUSTRIAL RELATIONS IN CHANGING SCENARIO

m The rapid automation and adoption of modern technology in industries have dwindled the
job opportunities at an alarming rate. Industries on their part are also eager to reduce the
manpower and select highly skilled personnel who can perform multifarious functions single-
handedly. This has blocked the entry of personnel who have learnt any one skill or opted for
specialisation in a particular subject. Secondly, modern educational opportunities have helped
a section of upper layer in our society to compete with the less privileged sections and grabbing
the top positions in industries.
m In view of the liberalisation and globalisation initiated and implemented by the Central
Government has given an impetus in foreign investments in our country. This has brought in
a new culture and diluted labour policy as a backroom understanding with the investors by
the Government.
m On the one hand, employers are nowadays concentrating on higher output with less manpower
and on the other hand employees are unable to adjust with the new work ethics and strings
attached to their job, and they are feared about the loss of employment and welfare amenities
which they have been enjoying since long. In fact, the pressure of unemployed people who
knock the doors everyday is seen as a major factor for the managements in industries to opt for
cheap labour which is available easily from outside sources prompt them to adopt harsher
measures on the employees working in industrial organisations with a view to extract more
output from them. Such tendency in industrial circle started creating friction in industries.
m Considering the influx of cheap foreign goods and cut throat competition between various
industrial units manufacturing similar products forced the managements to change their
policy towards the workers in order to survive in the competitive world of today. But, nobody
is having time to ponder over the attitudinal changes of the employees, especially of middle
and lower levels to find remedial measures in the existing work structure. If someone goes to
the roots for the search of its cause, it can be found that the distasteful and monotonous work
has made them insensitive to the needs of the organisation.
m On an experimental basis, at least there can have a rapport between the shop floor employees
and supervisory cadre so as to measure the growing aspirations and frustrations in their
work sphere and report the same to the higher management for corrective measures.
m The other important factor is the suppressed aspiration of an employee to climb the ladder of
success, which reflects in the form of dissatisfaction in the work allotted to him and expressing
his anger and frustration to his immediate boss and co-workers. In order to make attitudinal
changes in the employees, there should have a mechanism to understand the rising aspirations
of the employees and their attraction towards higher grades and the status of the post in the
hierarchy of an organisation. However, the higher echelons of the organisation naturally fail
to judge the mood and reluctant to adopt a pragmatic approach by way of better training and
human resources development for utilising their skills and knowledge for its prosperity.
m The modern management concept calls for maintaining mutual understanding between the
management and employees based on a pre-fixed target of production and marketing so as to
share the profits in a congenial atmosphere. Though the idealism is good, its implementation
sometime backfires whenever the expected output is not given by the employees due to the
unforeseen factors or stagnant market thereby resulting misunderstanding on either part due
to the failure of commitment.
m In the beginning of 21st century, the global recession started raising its ugly heads resulting in
large scale retrenchments and golden shake hands in many large and medium scale industrial
units. The investors became wary about the future due to the incapacity of the buyers on par
with the quantum of production and the tendency on the part of the customers to compare the
value of similar products available in the market. All these cumulative factors forced the
managements in private sector either to close down their enterprises or invest the capital in
profit oriented products to survive under the cut throat competition. The half hearted attitude
of the industrialists to revive the existing sick units and the failure to investigate the drawbacks
in attaining profits after sales demoralised the workforce to a great extent.
m Many of the small scale units which supplied spares and other auxiliaries to medium and
large scale units were forced to close down due to the insufficient orders for their products
thereby throwing the workers to the streets, where they are now struggling to earn their
livelihoods by doing one or other menial jobs.
m There were tremendous pressures from the trade unions against retrenchment of workers and
modernisation. This was because of the fear that in our Indian social condition, modernisation
in comparison with the developed western countries may mar the prospects of employment
opportunities. To some extent, this view of the trade unions is also agreed by the Government
and thus there was a reluctant or forced adoption of modern technology in certain sectors.
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m At this stage, the bargaining capacity or muscle power of the unions was eroded in view of the
insensitiveness to their demands by the managements in private sector. The gradual closure
of many giant industries resulted in loss of production and severe unemployment. But, there
was justification for such actions on the part of their managements though trade unions
blamed mismanagement and misappropriation of working capital. Moreover, the mushroom
growth of professional trade unions and self-styled leaders hampered the interest of the
workmen at the final stage of bargaining.
m There are allegations that illiteracy and unawareness of the majority of employees have been
exploited by some employers, but in some cases, there were high handedness on the part of
employees as they demanded excessive benefits/wages without considering its impact on the
organisation. Such developments and distrust between the employers and employees ultimately
led to the sickness of industries because the managements failed to convince the workmen
about the actual strength on which it stands.
m The other factors were the lack of planning in selection of products, method of manufacturing,
marketing strategy, appointment of trained personnel and professionalism in management.
m The erosion of the bargaining strength of trade unions resulted in the loss of faith on the
leaders. The employees thought that it is because of the collusion between the management
and leaders; they are deprived of their legitimate demands. Moreover, the litigation in industrial
courts for fairness and justice does not provide speedy consolation or award and sometimes,
such process has taken years together for final award/settlement.
m During such legal battles, employers and employees loss their mutual relationship and hard
their attitude towards each other thereby making an adverse impact on the growth and
prosperity of the organisations. However, the visionaries in management, who lead certain
industries always try to understand the mood of the employees and provide them with fair
wages and welfare measures with a string that they must give optimum output as per the
demands of the situation. It is seen as a scientific approach in human relations in industries
where non-productive persons have no place to stick on for long time.
m The other attraction of such mutual understanding and relationship for the prosperity of the
organisation is that each and every employee is responsible for his own work and the guidance
of a humanist supervisor. He knows his sincere work leads the organisation on the forefront
of others and in turn he is going to get the share of its prosperity.
m The liberalisation process initiated by the Central Government, the end of licence raj, investment
of foreign capital and easy import procedures have attached our economy globally, which
until recently was protected by various tariff measures and rules and regulations in a closed
market condition.
EMERGING TREND IN INDUSTRIAL RELATIONS

1. International Trends – Role of ILO & WTO in Industrial Relations. Today most of the
Industries are going global & most of the companies are MNC’s, i.e., Multinational Companies.
Therefore the companies deal in various countries and with various different sets of people
culture & beliefs.
During the global dealing the companies come across various road blocks in trade like unions,
regional barriers to trade in certain countries, different legal system & other practices which
may bring the businesses to a halt & all we would find is conflicts emerging everywhere.
There is a feeling that the people from other states ruin the opportunities of the local people.
Same are the beliefs throughout the world, were outsiders treated as a problem area & considered
as aliens that have arrived to ruin them.
Therefore in above situations the WTO & ILO i.e. World Trade Organisation & International
Labour Organisation play a very important role in maintaining the best trade practices in the
world so that no countries are exploited, the ILO plays an important role in seeing that the
work force in not exploited & have ease of working under different cultures & laws. Also they
help in achieving uniformity in the work & trade environment in the world.
2. Competition on the basis of cheap labour. Globalisation and increased competition has lead
to less strikes, lockouts and less man days lost due to strikes. Also now in the era of knowledge
industry employees are educated and thus don’t believe in violent activities. They are having
responsibilities in cut throat competition and also are aware of their rights well leading to
decline in strikes. Employers also avoid lockouts because decline in production for even
hours results in heavy losses so forget about days or weeks.
3. Disinvestment. It affects IR in following ways :
m It changes ownership, which may bring out changes not only in work organisation and
employment but also in trade union (TU) dynamics.
m It changes the work organisation by necessitating retaining and redeployment.
m It affects the right of workers and Trade unions, including job/union security, income
security, and social security.
m Trade unions, management and government are responding to these challenges through
various types of new, innovative, or model arrangements to deal with different aspects of
disinvestment like Making workers the owners through issue of shares or controlling
interests (latter is still not in India.
m Negotiating higher compensation for voluntary separations, Safeguarding existing benefits
Setting up further employment generating programs, and
m Proposals for setting up new safety nets that not only include unemployment.
m Insurance but also skills provisions for redundant workers.
4. Deregulation
It is tried to ensure that public sector/ government employees receive similar protection as is
provided in public/government employment. The worst affected are the pension provisions.
This means, usually a reduction in pension benefits and an uncertainty concerning future
provision of pension benefit due to:
m The absence of government guarantees.
m Falling interest rates.
Investment of pension funds in stock markets Decentralisation of IR is seen in terms of the
shift in consideration of IR issues from macro to micro and from industry to enterprise level.
When the coordination is at the national or sectoral level then work in the whole industry can
be paralysed because of conflict in IR. But when the dispute is at the bank level, in the absence
of centralised coordination by Trade unions only work in that bank is paralyzed and the other
banks function normally. This weakens the bargaining power of unions.
5. New actors and the emerging dynamics. Earlier IR was mainly concerned with Trade unions,
management and government but now consumers and the community are also a part of it.
When the right s of consumers and community are affected, the rights of workers and unions
and managers/employers take a back seat. Hence there is ban on bandh and restrictions even
on protests and dharnas. Increasingly trade-unions are getting isolated and see a future for
them only by aligning themselves with the interests of the wider society.
Elective I 619
6. Pro-labour-pro-investor policies. This leads to decline in strength and power of Trade unions
if not in numbers. Unions have to make alliances with the society, consumers and community
and various civil society institutions otherwise they will find themselves dwindling.
7. Declining TU density
m In government and public sectors workforce is declining because of non-filling of vacancies
and introduction of voluntary / early separation schemes. New employment opportunities
are shrinking in these sectors.
m In the private sectors particularly in service and software sector, the new, young, and
female workers are generally less eager to join unions.
m Workers militancy replaced by employer militancy.
m Due to industrial conflicts
n In 1980-81 man days lost = 402.1 million.
n In 1990-91 man days lost = 210 million.
m Not because of improved IR but because of the fear of job security, concern about the
futility of strikes, and concern to survive their organisation for their income survival.
Trade unions have become defensive evident from the fact that there is significant shift
from strikes to law suits. Instead of pressing for higher wages and improved benefits,
Trade unions are pressing for maintenance of existing benefits and protection and claims
over non-payment of agreed wages and benefits.
8. Collective Bargaining. Level of collective bargaining is shrinking day by day. Some more
information: In India, while labour is in the Concurrent List, state labour regulations are an
important determinant of industrial performance. The Survey notes evidences that states that
had enacted more pro-worker regulations, had lost out on industrial production in general.
However, on the upside, the Survey said there was a secular decline in the number of strikes
and lockouts during 2000-04. The total number of strikes and lockouts went down 13.6% from
552 in 2003 to 477 in 2004. The decline was sharper in the number strikes than in lockouts, it
noted. While most of the strikes and lockouts were in private sector establishments, overall
industrial relations had improved, especially between 2003 and 2004, when there was a
decline in the number of man days lost by 6.39 million.
The Role of ILO

m A United Nations affiliate.
m Consists of government, industry, and union representatives.
m Works to promote fair labour standards in health, safety, and working conditions, and freedom
of association for workers.
The ILO defines core labour standards:
m The elimination of all forms of forced or compulsory labour.
m The effective abolition of child labour.
m The elimination of discrimination in respect of employment and occupation.
m Declaration on Fundamental Principles & Rights at Work.
The Role of WTO

m A multilateral trade organisation aimed at international trade liberalisation.
m Came into being in 1995, after a 48-year development that started with trade negotiations at
the Geneva Conference in 1947.
m Is a relative of the original International Trade Organisation that was proposed there.
m Successor organisation to GATT to administer international trade and investment accords. In
2002, the Doha Round ended the first stage of implementation. The aim is to further hasten
implementation of liberalisation to help the impoverished and developing nations.
m The WTO seeks to establish trade policy rules that help to expand trade and improve world
living standards. It does this through :
n Administering Trade Agreements.
n Serving as the Forum for Trade Negotiations.
n Settling Trade Disputes.
n Reviewing National Trade Policies.
n Assisting Developing Nations on Trade Policy Issues.
FUTURE IN INDUSTRIAL RELATIONS: THE INDIAN SCENARIO

Today, the Indian economy has opened up to face global competition and there is already a rush of
foreign capital and industry into this country. This change in the economic environment has affected
the entire gamut of structures, styles, and Contents of all those who have a stake in the economic
firmament of this country.
The year 1991 heralded for the entire Indian subcontinent changes that were unprecedented and
unheard of in post-independent India. Too many crucial economic decisions were pushed through
the government by too few and too fast — decisions that had the greatest ever impact on the social,
economic, industrial, political and even on the day-to-day life of the average Indian. From a CRP —
controlled, regulated, and protected —economy, India made a shift to the LPG — liberal, privatised,
and global economy. This paradigm shift had its greatest impact on the Indian industry. All of a
sudden, it had to face four hard realities of this shift. They were:
m First generation competition.
m Second generation systems and procedures.
m Third generation technologies and technical knowhow.
m Fourth generation mindset.
For long, the Indian industry had enjoyed the parental affection of the government under various
pleas of socialism, welfare state, economic and industrial development, etc. Now it had to fight for
itself for its very survival against the global giants on its own.
For long, the Indian industry had enjoyed the parental affection of the government under various
pleas of socialism, welfare state, economic and industrial development, etc. Now it had to fight for
itself for its very survival against the global giants on its own.
INDUSTRIAL RELATIONS IN UK AND USA

Industrial Relation in United Kingdom
The system of industrial relations in the United Kingdom (UK) is traditionally characterised by voluntary
relations between the social partners, with a minimal level of interference from the state. In the context
of very early industrialisation and a liberal political culture in which the state seldom intervened in
the affairs of private actors, trade unions gradually consolidated their membership and power base
throughout the 19th century. Various legislative developments also allowed trade unions the right to
organise workers and engage in industrial action. In 1868, the UK Trades Union Congress (TUC), the
co-federal umbrella body for UK trade unions, was formed.
Elective I 621
The 1871 Trade Union Act recognised trade unions as legal entities as corporations and granted
them the right to strike. Subsequently, the 1875 Conspiracy and Protection of Property Act allowed the
right to peaceful picketing, while the 1906 Trade Disputes Act allowed UK trade unions to engage in
industrial action without the threat of being sued for damages. In addition to this body of legislation,
a minimal level of legal regulation that stipulated basic health and safety conditions in workplaces
was also built up during the 19th century.
Industrial relation in UK was the first country in the world specific institutions for improving
industrial relations. The system rest on voluntary arrangement for negotiations and consultation
agreed by the parties.
Concept of Employer Association in UK
Employer association in UK have been recognised as legal bodies under trade union and labour
relation act 1974. And can obtain registration certificate from the certification officers. The most
important function of the employers association is to negotiate collective agreement with trade union
on an industry wise basis. Their activities include organisation of apprenticeship and training schemes,
distribution of information about wages rates other labour matters.
Trade Union in UK
The trade union and labour relation act 1974 defines a trade union as an organisation which consists
of workers whose principle purpose include of regulations between those workers and employers or
employers’ associations. In UK most of the large and important trade union are affiliated to the trade
union congress (TUC) which has a total membership of over 11 million workers.
The function of trade union in UK is:
(i) To improve the general economic and social conditions of workers. In all parts of the world.
(ii) To do anything to promote the interest of all or any of its affiliated organisation.
(iii) To affiliate other organisation having objective of similar to those of TUC.
Nature of the Trade Union of UK
Trade union of Britain main doing Negotiation through collective bargaining:
(i) Negotiating wages.
(ii) Terms and condition of employment.
(iii) Promotion and implementation of law.
(iv) Providing certain benefits like retirement unemployment and sickness benefits.
The economic context throughout this time was also favorable to the development of trade unionism.
Owing to the pace of industrialisation and the existence of substantial colonial markets for UK industry,
the 19th century and early 20th century were characterised by extensive economic growth.
Working of Collective Bargaining in UK
This economic climate facilitated the development of a system in which some of the fruits of economic
development could be designated for collectively bargained wage increases. In terms of the role of the
law, collective bargaining was far more important than the influence of legal regulation. For employers
and trade unions, the role of statute law was to support and extend collective bargaining rather than
to comprehensively regulate the system. Notably, the law provided trade unions with a series of
‘immunities’ from UK common law. These immunities covered the right of trade unions to engage in
industrial action with employers, which would otherwise have been illegal under UK common law.
The membership of UK trade unions grew markedly in the post-war years. The era also represented
the golden age of British ‘pluralism’, where the role of trade unions in securing industrial peace and
efficiency was emphasized. In the private and public sectors, sectoral level collective agreements were
also typically reached that covered whole industries. By the late 1960s, however, concerns emerged
about the efficacy of a system in which shop floor industrial unrest appeared to be rising.
This led to the Donovan Commission, a government commission that attempted to investigate
the causes of workplace disputes. Industrial conflict grew markedly in the 1970s, partly as a result of
the economic crisis that affected western countries after the 1973 ‘oil shock’. The era was characterised
by trade union militancy and high levels of industrial action, and attempts by successive left-wing
and right-wing governments to regulate the system largely met with failure. The period culminated in
the 1978–1979 ‘winter of discontent’, where public sector trade unions engaged in regular and lengthy
industrial action over the incumbent Labour government’s policy of public sector pay restraint.
A conservative government, led by the then Prime Minister Margaret Thatcher, was elected in
1979 on an anti-trade union, neo-liberal platform. Successive governments of this political stripe
pursued a legislative programme that placed legal restrictions on trade unions’ ability to engage in
industrial action, and that privatised many areas of the public sector, while managing the public
sector in an anti-union fashion.
During this period, trade union membership also declined markedly, and the majority of sectoral
collective agreements in the private sector were dismantled as companies abandoned them. A ‘New
Labour’ government, led by Prime Minister Tony Blair, was elected in 1997, offering a moderately
conciliatory approach to the trade unions. The cornerstone of the Blair government’s approach to
employment relations was the use of legal individual employment rights to protect workers. Most
notably, a national minimum wage was introduced. Many of these legal rights emanated from the
level of European Union, and the post-1997 period saw a marked increase in the influence of legal
regulation in the employment relationship. Nonetheless, trade union membership continued to decline,
and in 2008 trade union density stood at 28%.
As of 2009, the UK system of industrial relations would appear to exhibit a mixture of
characteristics. While the old tradition of the state not intervening in relations between the social
partners is still manifest in the non-legally binding nature of collective agreements and in the fact that
trade unions and employer organisations have little statutory involvement in public policy and little
recourse to bipartite or tripartite forums at the national level, legally established employment rights
would now appear to be a permanent feature of the UK system.
Industrial Relations in United States of America (USA)

The industrials relation system in USA has been governed by the process of collective bargaining
accompanied by the trail of strength between parties, even since the craft union emerged in the
seventeenth century. Among the factor which contributed to the growth of the industrials relation
system based on the collective bargaining and strike and lockout special mention may be made in the
light of the right to organise granted by the American constitutions.
The industrial relation in USA is based on two sectors:
(i) Unionised sectors
(ii) Non-Union Sectors
(i) The unionised sector has been featured by openly relationship between labour and
management. The union reflected the aspirations of their member and adopted goal which
seemed most important to the workers. The union is interested in cooperation with management
and their emphasis continued to be on practical improvement in wages hour and conditions
of work.
(ii) Non-Union Sectors. The main features of the non-union sectors by broad management
discretion and control over there term and condition of employment.
Elective I 623
Trade union Organisation
The American labour movement is organised at three level:
(i) Local union operating at plant or firm level
(ii) Intermediate bodies at regional and industry level
(iii) National union working at national level
(A) Local Trade Union in USA. LTU is the most basic unit of a labour organisation, the other
union are intermediate and national union. These are closely related to federal structure. The
collective contracts are passed or ratified by majority of vote of the local unions. These local
union in industries like building construction, building service a local union call strike and
negotiate agreement without formal approval from national union.
(B) National Trade Union in USA. National union work at nation a level and their size is generally
very large depending upon the number and size of the local affiliates. It is the most important
and powerful unit of labour organisation having a full power of freedom in fixing the dues
formulation of policies, negotiations of agreement and calling strike and organising local and
intermediate level.
At the national two important central organisation of labour union are:
(i) American federation of labour (AFL)
(ii) Congress of industrial Organisation (CIO)
The important law which was passed by American government are:
(i) Narris-LaGuaradia act 1932
(ii) Wagener Act 1936
(iii) Taft–Hartley act in 1947
(iv) Landrum Griffin act 1959
Concept of Employer Association in USA

The concept of employer association come due to the reaction of over growing trade union. During the
depression of 1907-1908 a number of these organisation are sprang up.
Employer of the small units and firm found it more beneficial to negotiate through there the type of
“Employer association”. These association played a very significant role in collective bargaining.
There were three type of employer association like:
(i) Cumulative Employer Association
(ii) Negotiator Employer Association
(iii) Administrative Employer Association
Economic Development in USA
The US economy grew impressively throughout 2003, with GNP expansion averaging 4.7% over the
four quarters. Steady growth continued into 2004, standing at an annual 4.5% in the first quarter and
2.8% in the second. Slower growth in the second quarter has been attributed to a deceleration in
consumer spending, which fell to just 1% from a first-quarter level of 4.1%. Overall, however, the US
economy has performed fairly well since the 2001 recession, averaging 2.4% annual GNP growth over
the last three years.
There are, however, sharp differences among analysts and commentators about the country’s
recent economic performance. Conservatives have hailed it as an economic miracle, while liberals
maintain that the recovery has been purchased by way of wasteful tax cuts and government borrowing
that has converted the Clinton-era budget surplus into a USD 7.5 trillion deficit.
Inflation fell to just 1.2% in 2003, half the 2002 level. However, in the first half of 2004 rising oil
prices threatened to drive up the level of inflation, and both consumer and producer indexes recorded
levels of inflation at around 3.5% for the first half of the year. After subtracting food and energy prices,
inflation rose 2.4%.
Recent US unemployment figures have fluctuated between rates of 6.3% in June 2003, and 5.4% in
September 2004. Job growth picked up noticeably in early 2004, (averaging 295,000 per month for
March-May) but slowed dramatically in the summer months (well under 100,000 for June-August).
Industrial Relations Trends USA
m Collective Bargaining. The process whereby formal Labour agreements are reached by union
and management representatives; it involves the negotiation of wages, hours, and conditions
of employment and the administration of the Labour contract.
m Union. An organisation that represents the workers and in collective bargaining has the legal
authority to negotiate with the employer and administer the Labour contract.
m Efforts are made to solve problems at the lowest level of the hierarchy as quickly as possible.
m First step usually involves a meeting between the union representative (shop steward) at the
operating level and the employee’s supervisor – they attempt to agree on how to solve the
grievance.
m Unresolved grievances may involve union officials and higher-level management
representatives – these conciliatory approaches usually solve the grievance.
m Sometimes the matter ends up in the hands of a mediator or an arbitrator.
m Three of the most common arbitration approaches for resolving wage-related issues include:
n Using an either or approach: one position is fully supported and the other is rejected.
n Determining a fair wage based on market conditions.
n They directly determine Labour costs, productivity, and eventually, even profits.
m Labour costs in the United States are lower in recent years than in most other major industrial
countries.
Elective I 625

1. In USA the labour management relation act 8. Who considered collective bargaining as the
(Taft Hartly act) was enacted in most important concepts for determining the
(A) 1937 (B) 1947 terms and condition of employment
(C) 1957 (D) 1967 (A) Sydney and Beatrice Webb
2. The constitution of India upholds “freedom (B) Robert Hoxie
of association” fundamental right enunci- (C) John T. Dunlop
ated by I.L.O. convention in (D) Samuel Gompers
(A) Article 20 C 9. Sidney and Beatrice Webb first use the term
(B) Article 19 C of the “collective bargaining” in
(C) Article 24 C (A) 1952 (B) 1961
(D) Article 18 C (C) 1958 (D) 1962
3. The International organisation of employ- 10. Who Said “collective bargaining is a model
ers (I.O.E.) with headquarters in Geneva was of fixing the term of employment by means
formulated in of bargaining between an organised body of
(A) 1910 (B) 1920 employers and employees and or associa-
(C) 1930 (D) 1940 tion of employees usually acting through
organised agent.
4. Globalisation is ruthless, rootless, jobless
and fruitless was state by (A) Sydney and Beatrice Webb
(A) U.N.O (B) U.N.D.P (B) Robert Hoxie
(C) I.L.O (D) W.H.O (C) John T. Dunlop
(D) Samuel Gompers
5. "State shall make provision for securing just
& human condition of work & for maternity 11. Who considered collective bargaining take
relief” comes under. place when a number of work people enter
(A) Article 39 into a negotiation as bargaining unit with
an employer or group of employers with the
(B) Article 42
objects of reaching an agreement on the con-
(C) Article 45 dition of employment.
(D) All of these (A) Sydney and Beatrice Webb
6. Equal pay for equal work for both men and (B) Richardson
women is highlighted in (C) John T. Dunlop
(A) Article 41
(D) Samuel Gompers
(B) Article 43A
12. Who has stated that collective bargaining is
(C) Article 45 essentially a process in which employees act
(D) All of these as a group in seeking to shape conditions
7. Plenary labour conferences was initial name and relationship in their employment.
of which of the following organisation (A) Sydney and Beatrice Webb
(A) ILO (B) Richardson
(B) Standing labour committee (C) Dale Yoder
(C) Indian labour conference (D) L.G. Reynolds
(D) International labour conference
13. Who are not the actor according to Dunlop 19. Who propounded the system concepts of the
framework of IR system IR
(A) Manager and their representative (A) Sydney and Beatrice Webb
(B) Workers and their organisation (B) Richardson
(C) Specialised government agencies (C) John T Dunlop
(D) Communities and associations (D) L.G. Reynolds
14. “Industrial relation” describe “relationship 20. Identify the correct definition of Industrial
between management and employees or Relation?
among employees and their organisation (A) Relation between or among human be-
their characteristics and grow out of employing
ment.” (B) Relation between employer and employ-
(A) Sydney and Beatrice Webb ees
(B) Richardson (C) Relation between parties in employment
(C) Dale Yoder context
(D) L.G. Reynolds (D) Collective relationship between man-
15. Who observed that the respect of the rule agement and trade union.
depends on the manner of their formulation? 21. Work Committee is a________ body.
(A) Sydney and Beatrice Webb (A) Bipartite
(B) Flanders A. (B) Tripartite
(C) Durkheim E. (C) Both A & B
(D) Gouldners (D) All of these
16. Benefits (India) of globalisation like sus- 22. In USA, the labour management relation act
tained economic growth free markets, eco- was enacted in
nomic globalisation, privatisation etc were (A) 1937 (B) 1947
summarised in (C) 1957 (D) 1967
(A) First National Commission 23. In USA, the labour management relation act
(B) Second National Commission (Wagner act) was enacted in
(C) National Labour Board (A) 1936 (B) 1947
(D) I.L.O (C) 1957 (D) 1967
17. The process of comparing actual perfor- 24. In USA the Narris –La guaradia act was en-
mance with standards and taking necessary acted in
corrective action is called (A) 1932 (B) 1947
(A) Communicating (C) 1957 (D) 1967
(B) Controlling
25. In USA the Landrum –Griffin act was en-
(C) Co-operating acted in
(D) Co-ordinating (A) 1959 (B) 1969
18. The origin growth and development of em- (C) 1984 (D) 1967
ployment organisation in India can be iden-
26. Productivity bargaining is considered as a
tified in as
classic example of
(A) Before 1933
(A) Oxford school approach
(B) After 1933
(B) Gandhian approach
(C) Before 1947
(C) Industrial sociology approach
(D) After 1947
(D) All of these
Elective I 627
27. Which of the following approaches insists 33. The utility of non-violence as the means of
on investigating the underlying trends and conflict resolution is the core principle of the
pattern in the cause and effects of industrial (A) Gandhian approach
dispute? (B) System approach
(A) Industrial sociology approach (C) Industrial sociology approach
(B) Gandhian approach (D) All of these
(C) Both A & B 34. Which of the following is not a part of the
(D) All of these scheme of workers’ participation in Manage-
28. Which of the following approaches assumes ment in India?
that voluntary negotiations between employ- (A) Shop level councils
ers and employees are a means of settling (B) Industrial level councils
disputes? (C) Joint level councils
(A) Human relation approach (D) Unit level councils
(B) Giri approach
35. In which of the following we notice under-
(C) Industrial sociology approach employment in a large measure?
(D) All of these (A) Coal Industry
29. “Organisations are made up of people and (B) Agriculture
the success of management lies in its deal- (C) Textile Industry
ings with these people.” This is the funda-
(D) Banking
mental of the
(A) Human relation approach 36. That the behaviour, actions and role of the
(B) Giri approach
(C) Both A & B in the
(D) All of these (A) Industrial sociology approach
30. Which of the following is not an industrial (B) System approach
action in India? (C) Human relation approach
(A) Mass casual leave (D) All of these
(B) Strike
37. Which of the following is not a bipartite
(C) Lockout body?
(D) Picketing (A) Standing Labour Committee
31. Which of the following approaches assumes (B) Works Committee
that the understanding of industrial rela- (C) Centeen Committee
tions requires an understanding of the capi-
(D) Safety Committee
talised society?
38. Which one of the following is not a tripartite
body?
(B) Marxist approach
(A) Indian Labour Conference
(C) Both A & B
(B) Joint Management Council
(D) All of these
(C) Standing Labour Committee
32. Which one of the following is not time based
(D) Minimum Wages Advisory Board
incentive plan?
39. Which one of the following is not a subject
(A) Halsey Plan
matter of industrial relations?
(B) Merrick Plan
(A) Trade Union & Collective Bargaining
(C) Rowan Plan
(B) Employee Compensation & Welfare
(D) Emerson Plan
(C) Strikes & Lockouts 46. Parties of industrial relation is concerned
(D) Unfair Labour Practices with
40. The basic role of policy is (A) Employer and their organisation
(A) To provide guidelines for action (B) Employees/Trade union
(B) To set procedures (C) Government
(C) To give direction for motivation (D) All of these
(D) To prescribe methods 47. Modern industrial organisation is based
41. Who has given the ‘Expectancy theory’ of upon two large aggregates that is
motivation? (A) Accumulation and aggregation of large
(A) Abraham Maslow capital
(B) Victor Vroom (B) Aggregation of large number of workers
(C) Frederick Herzberg organised under trade union
(D) Clayton Adler (C) Both A & B
(D) None of these
42. __________involves the critical activity of
negotiation, where each side has some power 48. Dominate aspects of industrial relation are
to apply sanctions over the other. (A) Cooperation
(A) Collective bargaining (B) Conflict
(B) System approach (C) Both A & B
(D) All of these 49. Modern Industrial production is based upon
43. Using employees strategically to meet the _________between labour and capital. Here
shifting demands of the competitive envi- labour stands for the workers who manage
ronment in terms of time, contract and skills the factories, and other establishment. Capi-
(A) Flexible working time tal stands for the owners of business enter-
(B) Free time prise who supply the capital and own the
final products.
(C) Both A & B
(A) Cooperation
(D) All of these
(B) Conflict
44. The public sector modernising agenda of the
(C) Both A & B
New Labour administration involves which
of the following? (D) All of these
(A) A combination of planning and market 50. The frequency of work stoppages resulting
driven strategies which emphasises either from strike and lockouts, and the slow-
public investment ing down the production are the occasion-
(B) performance standards and private sec- ally expression of ever present and latent
tor involvement ____ between workers and the management.
(C) Both A & B (A) Cooperation
(D) All of these (B) Conflict
45. _______refers to all type of relationship be- (C) Both A & B (D) All of these
tween all the parties concerned with indus- 51. Scope of industrial relations is concerned
try. with
(A) Industrial relation (A) Labour relation
(B) Human relation (B) Employees-employee relation
(C) General relation (C) Group Relation
Elective I 629
52. Main aspects of Industrial relations are con- 58. Various issues included are international
cerned with relation, global conflicts, dominant eco-
(A) Promotion and development of healthy nomic political ideologies, global cultural
management and labour relations milieu etc.
(B) Maintenance of industrial peace and (A) Psychological factors
avoidance of industrial strife (B) Political factors
(C) Development of industrial democracy (C) Global factors
53. Which of the following factors is not affect- 59. Which of the following approaches ap-
ing IR ? proach to industrial relation?
(A) Institutional factors (A) Social action model
(B) Economic factors (B) Sociological approach
(C) Social factors (C) Human relation approach
54. Which of the following factors is affecting 60. Approaches to industrial relation are
the IR ? (A) Gandhian approach
(A) Psychological factors (B) System approach
(B) Political factors (C) Oxford approach
(C) Global factors (D) All of these
(D) All of these 61. Which of the following is not the approaches
55. A __________ is where employees delay pro- to Industrial relation?
duction or work flow to put pressure on the (A) Marxist approach
employer. The employees deliberately work (B) Giri approach
slower than they would under normal con- (C) Industrial sociology
ditions.
(D) None of these
(A) Go slow (B) Work bans
62. John Dunlop propounded the
(C) Employer (D) All of these
56. _________ are related items like state policy,
(B) System approach
labour laws, voluntary codes, collective bar-
gaining agreement, labour union employee (C) Oxford approach
organisation. (D) All of these
(A) Institutional factors 63. This approach is quite helpful in studying
(B) Economic factors the IR in the sense that is focuses on partici-
pants in the process, environmental forces
(C) Social factors
and output.
(D) All of these
57. ______ are included economic organisation
(B) System approach
nature and composition of the workforce, the
sources of labour supply, labour market rela- (C) Oxford approach
tive status, disparity of wages between (D) All of these
group, level of unemployment and economic 64. Multi dimensional model of IR was devel-
cycle. oped by
(A) Institutional factors (A) Kenneth Walker
(B) Economic factors (B) Herbert Simon
(C) Social factors (C) Chester Barnard
65. _______presented IR model from manage- (B) Herbert Simon
rial point of view. (C) Chester Barnard
(A) Kenneth Walker (D) All of these
(B) Richard Peterson 73. Social factors like workers attitude, percep-
(C) Chester Barnard tion, value system has got directs impacts
(D) All of these on IR. IR is a part of society and the value
66. The “Industrial relation system” book was system, custom, status symbols and institu-
written by tions of the society affects the IR system.
(A) John Dunlop (A) Marxist approach
(B) Herbert Simon (B) Giri approach
(C) Chester Barnard (C) Industrial Sociology
67. Dunlop system model core elements is/are 74. The social action model has its origin in
(A) The actors in a system (A) Weberian Sociology
(B) The context of a system (B) Herbert Simon
(C) The ideology of an IR (C) Chester Barnard
(D) All of the above (D) All of these
68. Actors of a system models is/are 75. A new industrial cum social pattern emerges
(A) Workers and their organisation a new behaviour patterns and new tech-
niques handling resources is called
(B) Manager and their organisation
(A) Social action model
(C) Government agencies
(B) Sociological approach
(D) All of these
(C) Human relation approach
69. Oxford approach was given by
(D) All of these
(A) Flanders
76. Psychological approach was given by
(B) Herbert Simon
(A) G. Margerison
(C) Chester Barnard
(B) Mason Haire
(D) All of these
(C) Chester Barnard
70. IR system is a study of the institution of job
(D) All of these
regulations. Job regulation categorised as
internal and external, the trade union is con- 77. The psychologist is the view the problem of
siders as a external system. IR are deeply rooted in the perception and
(A) Gandhian approach the attitude of focal participants. These per-
ception may be about the person, the situa-
(B) System approach
tion and the issue of the conflicts
(C) Oxford approach
(A) Marxist approach
(D) All of these
(B) Psychological approach
71. Collective bargaining was considered as
(C) Industrial Sociology
apex of IR system in
(D) All of these
78. Human relation approach is given by
(B) System approach
(A) G. Margerison
(C) Oxford approach
(B) Elton Mayo
(D) All of these
(C) Chester Barnard
72. Industrial Sociology approach was given by
(D) All of these
(A) G. Margerison
Elective I 631
79. ________emphasized that industrial peace 86. American labour movement is organised at
might be secured through collective bargain- three level that name is
ing. There must be mutual settlement of dis- (A) Local union
putes through collective bargaining and (B) Intermediate bodies
voluntary arbitration and not the compul- (C) National union
sory adjudication.
(D) All of these
(A) Marxist approach
87. In USA two important central organisation
(B) Giri approach
are
(C) Industrial Sociology
(A) AFL (B) CIO
(D) All of these
80. ________is based on fundamental principle
88. Concepts in employee association in USA
of truth, non-violence and non- possession.
are
(A) Cumulative employer association
(B) System approach
(B) Negotiators employers association
(C) Oxford approach
(C) Administrative employers association
(D) All of these
(D) All of these
81. Objectives of IR are
89. U.K. governments appointed royal commis-
(A) To safeguard mutual trust sion in
(B) To raise productivity (A) 1965 (B) 1970
(C) To avoid industrial strike (C) Both A & B (D) None of these
(D) All of these
90. U.K. governments appointed royal commis-
82. Objectives of IR are sion chairman
(A) To establish industrial democracy (A) Lord Donovan
(B) To eliminate ID (B) Lord Radon
(C) To Boost discipline (C) Both A & B
83. Evolution of IR in India can be studied into 91. The conflicts and disputes between employ-
periods that are ers and employees on any industrial mat-
(A) Pre independence Era ters are known as a
(B) Post independence Era (A) Industrial disputes
(C) Future of IR (B) Human relation
(D) All of these (C) Conflict relation
84. IR in USA has distinct sectors (D) All of these
(A) Unionised sectors 92. Forms of industrial disputes includes
(B) Non union sectors (A) Strike
(C) Both A & B (B) Lockouts
(D) None of these (C) Gherao
85. IR in ______ has being governed by the pro- (D) All of these
cess of collective bargaining accompanied 93. Which of the following is the forms of in-
by the trail of strength between parties. dustrial disputes?
(A) USA (A) Picketing
(B) UK (B) Boycott
(C) Both A & B (C) Gherao
94. Which of the following is not the forms of (B) Quickie strike
industrial disputes? (C) Sit-down strike
(A) Authorised and non authorised (D) Work-to-rule strike
(B) General and particular 101. _______workers remain in their place of
(C) Quickie work, but they stop work for a brief periods,
(D) All of these that is, for a few minutes of a few hours.
95. _________ is one in which the union has (A) Slow-down strike
given its consent. (B) Quickie strike
(A) Authorised (C) Sit-down strike
(B) General and particular (D) Work-to-rule strike
(C) Quickie 102. In ________ worker remain in their place of
(D) All of these work but they do not work. The duration of
96. _________commonly known as wild cat the stoppage of work in sit down strike is
strike is one which is called without the ap- longer then quickie strike.
proval of the union. (A) Slow-down strike
(A) Non authorised (B) Quickie strike
(B) General and particular (C) Sit-down strike
(C) Quickie (D) Work-to-rule strike
(D) All of these 103. In _____the employee are not formally in
97. _______has a wide coverage, but the degree strike similar to the slow down strike. The
of generality to the nature of coverage varies employees declare that they are perform their
considerably from strike to strike. task strictly accordance with the rule pre-
(A) Authorised scribed.
(B) General strike (A) Slow-down strike
(C) Quickie (B) Quickie strike
(D) All of these (C) Sit-down strike
(D) Work-to-rule strike
98. _________are limited in scope and are usu-
ally confined to a single trade and occupa- 104. Types of the strike based on generic purposes
tion in particular town and city. is/are
(A) Non authorised (A) Sympathetic strike
(B) particular strike (B) Jurisdictional strike
(C) Quickie (C) Political strike
99. The most common of the former category 105. When the member of the union collectively
strike is/are stop work to support or express their sym-
(A) Slow-down strike pathy with the member of their union who
are on strike in other undertaking.
(B) Quickie strike
(A) Sympathetic strike
(C) Sit-down strike
(B) Jurisdictional strike
(D) All of these
(C) Political strike
100. In a strike of this type, workers do not actu-
(D) General strike
ally stop the work, rather than they slow
down the pace of their work. For example in 106. ________are conducted with a view to force
sugar industry. an employer to recognise and bargain with
(A) Slow-down strike a particular trade union instead to another.
Elective I 633
(A) Sympathetic strike (C) Disputes over unfair labour practice
(B) Jurisdictional strike (D) All of these
(C) Political strike 114. Which of the following is the causes of in-
(D) General strike dustrial disputes?
107. Strike of this sort are intended to put pres- (A) Economic
sure in the governments to do something or (B) Managerial
desist for doing something (C) Political
(A) Sympathetic strike (D) All of these
(B) Jurisdictional strike 115. Which of the following is/are economic
(C) Political strike cause of industrial disputes ?
(D) General strike (A) Wages and allowance
108. Which involves the entire working class of (B) Bonus
a country can rarely be caused by industrial (C) Working condition & hour
disputes (D) All of these
(A) Sympathetic strike 116. Which of the following are the managerial
(B) Jurisdictional strike causes of industrials relation ?
(C) Political strike (A) Failure to recognise the trade union
(D) General strike (B) Defective recruitment policies
109. The members of the management are pro- (C) Irregular Lay off and retrenchment
hibited from leaving the business or residen- (D) All of these
tial premises by the workers who block their
117. Prevention of ID in industry are concerned
exit through human barricades
with
(A) Picketing (B) Boycott
(A) Workers participation in management
(B) Collective bargaining
110. The employer closes the place of the work to (C) Tripartite bodies
put pressure on the workers to agree to his
(D) All of these
term and conditions
(A) Picketing (B) Lockout 118. Industrial disputes settlement machinery -1
are
111. Worker are dissuaded from reporting for
work by certain person stationed at the gate
of the factory, it is legal as long no violence (C) Both A& B
involved (D) None of these
(A) Picketing (B) Boycott 119. Various _______ have been formed by the
(C) Gherao (D) All of these union government to provide a forum for
discussion and consultation on various
112. Striking workers prevents others from en-
labour issues.
tering through forcefully appeals and nega-
tive behavioural acts (A) Tripartite bodies
(A) Picketing (B) Boycott (B) Bipartite bodies
(C) Both A & B
(D) None of these
113. Classification of industrial disputes are con-
cerned with 120. In ______ the representative of labour, em-
ployers and government must meet regu-
(A) Interest disputes
larly to discuss and hold consultations on
(B) Grievance and right disputes
important matters relating to IR.
(A) Tripartite bodies (A) Arbitration
(B) Bipartite bodies (B) Compulsory arbitration
121. Which of the following is/are the types of 128. The concepts of JMC was given by
tripartite bodies? (A) Industrial resolution 1956
(A) Indian labour conference (B) 1967
(B) Standing labour committee (C) Both A & B
(C) The industrial committee (D) None of these
(D) All of these 129. More close participation and interaction be-
122. Which of the following are not the types of tween labour and management is estab-
tripartite bodies? lished in order to create a cooperative envi-
(A) National renewal fund ronment for negotiation and settlement
(B) Central implementation and evaluation (A) Work Committee
machinery (B) JMC
(C) Steering committee on wages (C) Both A& B
123. First ILC conference was held in 130. The JMC was set up in
(A) Delhi (B) Bombay (A) 1957 (B) 1967
(C) Both A & B (D) None of these (C) Both A& B (D) None of these
124. They are purely consultive and non nego- 131. Industrial disputes settlement machinery-II
tiable bodies which are set up exclusively to includes
deal with the disputes affecting the plant (A) Conciliation
and industry
(B) Arbitration
(C) Adjudication
(D) All of these
(C) Both A & B
132. ________as the name suggests, involve em-
(D) None of these
ployees refusing to do certain types of work
125. Two types of Bipartite bodies are concerned or refusing to work with particular manage-
with ment, employees or other third parties.
(A) Work Committee (A) Customer
(B) JMC (B) Work bans
(C) Both A & B (C) Employer
126. Every industrial undertaking employing 133. Various methods of conciliation provide un-
100 or more workers is under an obligation der ID act 1947 is/are
to set up a _________ consisting of repre-
(A) Conciliation
sentative of employer and employee.
(B) Conciliation officer
(A) Work Committee
(B) JMC (C) Board of conciliation
(D) None of these 134. Work committee is a
127. Here both parties are willing to go an arbi- (A) Tripartite bodies
trator and submit to his decision (B) Bipartite bodies
Elective I 635
135. The duty of the _______ is to mediate in and 141. Court of Inquiry consist of how many mem-
promotes the settlement of ID. He is inde- bers.
pendent person who investigates the dis- (A) Chairman & two or four member
putes and all matters of affection. (B) One or more person
(A) Conciliation (C) Both A & B
(B) Conciliation officer (D) None of these
(C) Board of conciliation 142. Gandhian technique of resolving ID is
(D) All of the above (A) Conciliation
136. The _________is bound to hold conciliation (B) Voluntary arbitration
in case of public utility services, while he is (C) Adjudication
not bound to do so in case of non-public util-
(D) Collective bargaining
ity services.
(A) Conciliation 143. Lockout refers to a specific form of indus-
trial action associated with employers, in
which the _____________refuses employees
(C) Board of conciliation entry to the workplace.
(D) All of the above (A) Customer
137. Board of conciliation consist of how many (B) Trade union
members. (C) Employer
(A) Chairman & two or four member (D) All of these
(B) One person
144. Which of the following is the types of arbi-
(C) Both A & B trating?
(D) None of these (A) Voluntary arbitration
138. ________is an adhoc body, tripartite body (B) Compulsory arbitration
having the power of civil court created for (C) Both A & B
specific dispute. The board cannot enforce
(D) None of these
any award. It can take action only when dis-
putes have referred to it by the government. 145. __________ is a system of labour relations
(A) Conciliation in which the state, employers, and workers
are autonomous yet interdependent part-
ners, pursuing common interests and par-
(C) Board of conciliation ticipating in decisions affecting them in a
(D) All of the above binding spirit of mutuality and reciprocity.
139. A ________is a fact finding body and is not (A) Tripartism
required to make any recommendation for (B) Bipartite bodies
the settlement of ID. (C) Both A & B
(A) Conciliation (D) None of these
(B) Court of inquiry
146. __________ is an important feature of India‘s
(C) Board of conciliation industrial relations system.
(D) All of the above (A) Tripartite consultation
140. Court of inquiry submit its reports to the (B) Bipartite bodies
government within (C) Both A & B
(A) 6 months (D) None of these
(B) 1 months
147. The Indian Labour Conference (ILC) and the 153. Which of the following is not a machinery
Standing Labour Committee (SLC) are two for settlement of ID in India?
main forums for Tripartite Consultation (A) ILC & SLC
(A) Tripartite consultation (B) Conciliation officers
(B) Bipartite bodies (C) Labour Court
(C) Industrial relation (D) National Tribunal
(D) None of these 154. Which of the following is not machinery for
148. The recommendations of these bodies are settlement of ID in India?
only advisory in nature they carry consid- (A) Board of conciliation
erable weight with the government, workers (B) Labour Court
and employers. (C) Collective bargaining
(A) Bipartite Bodies (D) National Tribunal
(B) Tripartism
155. As per the ID act 1947 the constitution of
(C) Both A& B work committee is mandatory if the num-
(D) None of these bers of workers are
149. The function of the ___________is to advise (A) 200 or more
the Government of India on any matter re- (B) 100 or more
ferred to it for advice, taking into account (C) 300 or more
suggestions made by the provincial govern-
(D) None of these
ment, the states and representatives of the
organisations of workers and employers. 156. The inability of an employer to provide em-
(A) SLC ployment due to shortage of power, raw
material and breakdown of machinery is
(B) ILC
called
(C) Both A & B
(A) Retrenchment
(D) None of these
(B) Lockout
150. The 30th session of the Indian Labour Con- (C) Lay-off
ference was held in
(D) None of these
(A) Nagpur
157. Who said there are three actors of IR?
(B) Delhi
(A) Lester
(C) Both A & B
(B) Dale Yoder
(D) None of these
(C) John T Dunlop
151. Who defined Industrials Relation as a “Rule
( D) Mc Kersie
Making Process”?
158. Temporary closing down the undertaking
(A) Robert Hoxie
with the intention of forcing workers to ac-
(B) Selig Perlman
cepts the demand of the employer is called
(C) John T Dunlop
(A) Lockout
(D) Mc Kersie
(B) Layoff
152. Who said “industrial society necessarily (C) Strike
create IR defined as complex of interrelation
(D) Retrenchment
among, worker, manager and government
159. Which of the following is not a duty of the
(A) Robert Hoxie
conciliation officer?
(B) Selig Perlman
(A) To induces parties to come to fair and
(C) John T Dunlop
amicable decision on the matter in dis-
(D) Mc Kersie putes
Elective I 637
(B) To act as a mediator committees and the joint management coun-
(C) To promote settlement of dispute cils.
(D) To act as a adjudicator (A) Tripartism
160. Which of the following is not adjudication (B) Bipartite consultative
machinery under the ID act? (C) Both A & B
(A) Labour Court (D) None of these
(B) Court of inquiry 167. The _______________can be formed by any
(C) Industrial Tribunal enterprise, employing 100 or more workers.
(D) National Tribunal (A) JMC
161. The scope of IR does not include (B) Works committee
(A) Employer and employee relation (C) Both A& B
(B) Employee and trade union relation (D) None of these
(C) Employee, employer and trade union re- 168. These committees give labour a greater sense
lation of participation and infuse a spirit of co-op-
(D) Employee and customer relation eration between the two parties without en-
croaching upon each other‘s sphere of in-
162. The 31st session of I.L.C was held in _____
fluence, rights and prerogatives.
on July 25, 1992.
(A) Tripartism
(A) Nagpur
(B) Works committee
(B) New Delhi
(C) JMC
(C) Both A & B
(D) None of these
(D) None of these
169. The three-tier frame work of industrial rela-
163. ________ is a three-man tripartite commit-
tions proposed by,________(1987) suggests
tee set up in 1954.
a direct and active role for tripartite consul-
(A) SLC tation at macro level, to be reinforced by bi-
(B) ILC partite consultations, collective bargaining
(C) Committee on conventions (A) John Dunlop
(D) None of these (B) Kochan
164. __________ was set up in 1956 as a study (C) V.V. Giri
group on wages. (D) None of these
(A) Steering Committee on Wages
170. When bipartite dialogue does not result in
(B) ILC dispute avoidance or settlement__________
(C) Committee on Conventions such as conciliation/mediation and arbitra-
(D) None of these tion/adjudication become imperative.
165. Bipartism is a system of industrial relations (A) Bipartite consultative
where social and labour issues are dis- (B) Tripartite interventions
cussed between trade unions and manage- (C) Both A& B
ment, usually at the (D) None of these
(A) Enterprise level 171. ____________define and regulate terms and
(B) Plant conditions of employment and bring about
(C) Both of these uniformity in them.
(D) None of these (A) Bipartite consultative
166. The_______________ machinery comprises (B) Standing orders
two important constituents, viz., the works
(C) Both A & B pointed by the government to make a settle-
(D) None of these ment which is binding on both the parties.
172. The __________are constituted for the (A) Adjudication
whole unit, in every Industrial Unit employ- (B) Compulsory arbitration
ing 500 or more workers, there should be a (C) Voluntary arbitration
Joint Council for the whole unit. (D) None of these
(A) Joint councils 178. The appropriate government may, by notifi-
(B) Standing orders cation in the official gazette constitute one
(C) Both A & B or more labour courts for adjudication of
(D) None of these Industrial disputes relating to any matters
173. The ____________empowers the central & specified in the second schedule of Indus-
state governments to appoint conciliation trial Disputes Act.
officers and a Board of Conciliation as and (A) Adjudication
when the situation demand (B) Compulsory arbitration
(A) Joint councils (C) Voluntary arbitration
(B) Standing orders (D) Labour court
(C) Industrial Disputes Act 179. The objectives of the code are
(D) None of these (A) To secure settlement of disputes by ne-
174. __________is a process in which a neutral gotiation, conciliation and voluntary
third party listens to the disputing parties, arbitration
gathers information about the dispute, and (B) To eliminate all forms of coercion, in-
then takes a decision which is binding on timidation and violence
both the parties. (C) To maintain discipline in the industry
(A) Joint councils (D) All of these
(B) Arbitration 180. It adopted three important resolutions dis-
(C) Industrial Disputes Act cussed below
(D) None of these (A) Social Clause
175. In ___________ the arbitrator is appointed (B) Child Labour
by both the parties through mutual consent (C) Bonded Labour
and the arbitrator acts only when the dis- (D) None of these
pute is referred to him. 181. __________ involves the critical activity of
(A) Joint councils negotiation, where each side has some power
(B) Arbitration to apply sanctions over the other.
(C) Voluntary Arbitration (A) Collective bargaining
(D) None of these (B) System approach
176. __________ implies that the parties are re- (C) Both A & B
quired to refer the dispute to the arbitrator (D) All of these
whether they like him or not. 182. That the behaviour, actions and role of the
(A) Joint councils individuals are primarily shaped by the cul-
(B) Compulsory arbitration tures of the society is the basic assumption
(C) Voluntary arbitration in the
(D) None of these (A) Pluralist approach
177. ______ is the ultimate legal remedy for settle- (B) Giri approach
ment of industrial dispute. Adjudication (C) Both A & B
means intervention of a legal authority ap- (D) All of these
Elective I 639
183. __________ consists of representatives of the 188. ____________refers to action in which em-
government, employer‘s associations, ployees work in a manner different from the
labourers‘ organisations and certain inde- customary manner. It includes restrictions,
pendent experts. It encourages the produc- limitations, or bans upon work.
tivity in the country. (A) Collective Bargaining
(A) Pluralist approach (B) Industrial action
(B) Giri approach (C) Both A & B
(C) National Productivity Council (D) All of these
(D) All of these 189. Match the following
184. ____________ was constituted to encourage (a) System Approach (i) M.Gandhi
the growth of strong and well-informed trade (b) Oxford Approach (ii) John
union movement conducted by the workers T Dunlop
themselves on responsible and constructive
(c) Marxists Approach (iii) Flanders
lines.
(d) Gandhi an Approach (iv) Giri
(A) Pluralist approach
Codes :
(B) Central Boards of Workers’ Education
(a) (b) (c) (d)
(C) National Productivity Council
(A) (iii) (ii) (i) (iv)
(D) All of these
(B) (i) (iii) (iv) (ii)
185. Industrial Tribunals for the adjudication of
(C) (ii) (iii) (iv) (i)
industrial disputes relating to the following
(D) (i) (iv) (iii) (ii)
matters includes
(A) Wages 190. Match the following
(B) Compensatory and other allowances (a) Industrial Sociology (i) M. Gandhi
(C) Hours of work and rest intervals Approach
(D) All of these (b) Psychological (ii) Mason Haire
Approach
186. National Tribunals for the adjudication of
industrial disputes in relating to the follow- (c) MarxistsApproach (iii) G. Margerison
ing matters includes (d) Gandhian (iv) V.V Giri
(A) Matters of national importance Approach
(B) Matters which are of a nature such that Codes :
industries in more than one state (a) (b) (c) (d)
(C) Both of these (A) (iii) (ii) (i) (iv)
(D) None of these (B) (ii) (iii) (iv) (i)
187. Labour court for the adjudication of indus- (C) (iii) (ii) (i) (iv)
trial disputes in relating to the following (D) (i) (iv) (iii) (ii)
matters includes
(A) Dismissal or discharge or grant of relief
(a) Industrial Democracy (i) Sydney&
to workmen wrongfully dismissed
Approach Webb
(B) Illegality or otherwise of a strike or lock-
out (b) Social Psychological
(C) Withdrawal of any customary conces- Approach (ii) Robert Hoxie
sion or privileges (c) Capitalism (iii) Frank
(D) All of these Approach Tannbuan
(d) Capitalism or Revo- (iv) Karl Marx
luntary Approach
Codes : 194. Match the following
(a) (b) (c) (d) Methods Product
(A) (iii) (ii) (i) (iv) (a) Conciliation (i) Report
(B) (ii) (iii) (iv) (i) (b) Collective (ii) Award
(C) (i) (ii) (iii) (iv) Bargaining
(D) (i) (iv) (iii) (ii) (c) Investigation (iii) Settlement
(d) Adjudication (iv) Agreement
Codes :
(a) Gandhi Approach (i) Sydney & Webb
(a) (b) (c) (d)
(b) Sarvodaya (ii) M. Gandhi
Approach (A) (iii) (ii) (iv) (i)
(c) Capitalisms (iii) Frank (B) (iii) (iv) (i) (ii)
Approach Tannbuan (C) (ii) (i) (iii) (iv)
(d) Anti Capitalism (iv) Karl Marx (D) (iv) (ii) (i) (iii)
or Revoluntary 195. Match the following
Codes : (a) Conciliation Machinery (i) ILO
(a) (b) (c) (d) (b) Consultation Machinery (ii) Industrial
(A) (iv) (ii) (i) (iii) Tribunal
(B) (ii) (iii) (iv) (i) (c) Adjudication Machinery(iii) Arbitration
(C) (iii) (ii) (i) (iv) (d) Arbitration Machinery (iv) Board of
(D) (i) (iv) (iii) (ii) conciliation
Codes :
(a) (b) (c) (d)
List-I List-II
(A) (iii) (ii) (i) (iv)
(a) Strike (i) The action of employer
is temporarily closing (B) (ii) (iii) (iv) (i)
down his undertaking (C) (iv) (i) (ii) (iii)
(b) Lockout (ii) Refusal of the employer (D) (i) (iv) (iii) (ii)
to employ the workers 196. Match the following
because of coal, power (a) Two or more (i) Board of
and raw material members conciliation
(c) Layoff (iii) Temporarily cessation (b) Chairman & two (ii) Work Committee
of work by a group of or four member
employees in order to (c) One member (iii) Labour court
express their griev- (d) Number of work- (iv) Court Inquiry
ances. man represen-
(d) Closure (iv) Permanently closing tative not less than
down of the establish- Management
ment by the employer representative
Codes : Codes :
(a) (b) (c) (d) (a) (b) (c) (d)
(A) (iii) (i) (ii) (iv) (A) (iv) (iii) (ii) (i)
(B) (iii) (iv) (i) (ii) (B) (iv) (i) (iii) (ii)
(C) (ii) (i) (iii) (iv) (C) (iii) (i) (iv) (ii)
(D) (iv) (ii) (i) (iii) (D) (ii) (iii) (iv) (i)
Elective I 641
197. Which is the correct chronological order of Codes :
settlement of ID? (A) (d) (e) (f) (g) (a) (b) (c)
(a) Industrial tribunal (B) (c) (g) (f) (e) (d) (a) (b)
(b) National tribunal (C) (a) (d) (c) (b) (f) (g) (e)
(c) Conciliation (D) (c) (b) (d) (a) (g) (e) (f)
(d) Labour court 199. Match the following
Codes : Group A Group B
(A) (c) (a) (b) (d) (a) Code of discipline (i) 20 point
(B) (c) (d) (a) (b) economic
(C) (a) (d) (c) (b) programme
(D) (c) (b) (d) (a) (b) Conventions (ii) Exit policy
198. Arrange the following disputes settlement (c) WPM (iii) Indian Labour
machineries in the order in which they are Conference
given in ID Act (d) Voluntary Retire- (iv) ILO
(a) Industrial tribunal ment Scheme
(b) National tribunal Codes :
(c) Committee (a) (b) (c) (d)
(d) Labour court (A) (iii) (ii) (iv) (i)
(e) Court of inquiry (B) (iv) (iii) (i) (ii)
(f) Board of conciliation (C) (iii) (iv) (i) (ii)
(g) Conciliation (D) (iv) (ii) (i) (iii)
ANSWER KEY
1. (B) 2. (B) 3. (B) 4. (B) 5. (B) 6. (B) 7. (D) 8. (D) 9. (B) 10. (B)
11. (B) 12. (C) 13. (D) 14. (C) 15. (C) 16. (B) 17. (B) 18. (A) 19. (C) 20. (D)
21. (A) 22. (B) 23. (A) 24. (A) 25. (A) 26. (A) 27. (A) 28. (B) 29. (B) 30. (A)
31. (B) 32. (B) 33. (A) 34. (B) 35. (B) 36. (B) 37. (A) 38. (B) 39. (B) 40. (A)
41. (B) 42. (A) 43. (A) 44. (C) 45. (A) 46. (D) 47. (C) 48. (C) 49. (A) 50. (B)
51. (D) 52. (D) 53. (D) 54. (D) 55. (A) 56. (A) 57. (B) 58. (C) 59. (D) 60. (D)
61. (D) 62. (B) 63. (B) 64. (A) 65. (B) 66. (A) 67. (D) 68. (D) 69. (A) 70. (C)
71. (C) 72. (A) 73. (C) 74. (A) 75. (A) 76. (B) 77. (B) 78. (B) 79. (B) 80. (A)
81. (D) 82. (D) 83. (D) 84. (C) 85. (A) 86. (D) 87. (C) 88. (D) 89. (A) 90. (A)
91. (A) 92. (D) 93. (D) 94. (D) 95. (A) 96. (A) 97. (B) 98. (B) 99. (D) 100. (A)
101. (B) 102. (C) 103. (D) 104. (D) 105. (A) 106. (B) 107. (C) 108. (D) 109. (C) 110. (B)
111. (A) 112. (B) 113. (D) 114. (D) 115. (D) 116. (D) 117. (D) 118. (C) 119. (A) 120. (A)
121. (D) 122. (D) 123. (A) 124. (B) 125. (C) 126. (A) 127. (A) 128. (A) 129. (B) 130. (A)
131. (D) 132. (B) 133. (D) 134. (B) 135. (B) 136. (B) 137. (A) 138. (C) 139. (B) 140. (A)
141. (B) 142. (B) 143. (C) 144. (C) 145. (A) 146. (A) 147. (A) 148. (B) 149. (B) 150. (B)
151. (C) 152. (C) 153. (A) 154. (C) 155. (B) 156. (C) 157. (C) 158. (A) 159. (D) 160. (B)
161. (D) 162. (B) 163. (C) 164. (A) 165. (A) 166. (B) 167. (B) 168. (C) 169. (B) 170. (B)
171. (B) 172. (A) 173. (C) 174. (B) 175. (C) 176. (B) 177. (A) 178. (D) 179. (D) 180. (D)
181. (A) 182. (A) 183. (C) 184. (B) 185. (D) 186. (C) 187. (D) 188. (B) 189. (C) 190. (C)
191. (C) 192. (C) 193. (A) 194. (B) 195. (C) 196. (B) 197. (B) 198. (B) 199. (C)
ELECTIVE PERSONNEL MANAGEMENT
MEANING OF PERSONNEL MANAGEMENT

Personnel management can be defined as obtaining, using and maintaining a satisfied workforce. It is
a significant part of management concerned with employees at work and with their relationship
within the organisation.
According to Flippo, “Personnel management is the planning, organising, compensation,
integration and maintenance of people for the purpose of contributing to organisational, individual
and societal goals.”
According to Breech, “Personnel Management is that part which is primarily concerned with
human resource of organisation.”
Nature of Personnel Management

1. Personnel management includes the function of employment, development and compensation-
These functions are performed primarily by the personnel management in consultation with
other departments.
2. Personnel management is an extension to general management. It is concerned with promoting
and stimulating competent work force to make their fullest contribution to the concern.
3. Personnel management exist to advice and assist the line managers in personnel matters.
Therefore, personnel department is a staff department of an organisation.
4. Personnel management lays emphasize on action rather than making lengthy schedules,
plans, work methods. The problems and grievances of people at work can be solved more
effectively through rationale personnel policies.
5. It is based on human orientation. It tries to help the workers to develop their potential fully to
the concern.
6. It also motivates the employees through it’s effective incentive plans so that the employees
provide fullest co-operation.
7. Personnel management deals with human resources of a concern. In context to human resources,
it manages both individual as well as blue- collar workers.
New HR Challenges
Human Resource Management used to be considered as other conventional administrative jobs. But
over a period of time, it has evolved as a strategic function to improve working environment, plan out
human resources needs and strike a balance between the organisation and employers in order to
increase organisational productivity and meet organisational goals. Not to exaggerate but in today’s
highly competitive world it has gradually become one of the most important functions of an organisation.
It is really a huge challenge to understand the psychology of workforce, retain the best talents of the
industry, motivate them to perform better and handle diversity while maintaining unity simultaneously,
especially in countries like India, where it is still evolving. Globalisation has resulted in many positive
(643)
developments but it has left many concerns for HR managers. In today’s tough world and tight job
market, coordinating a multi-cultural or diverse workforce is a real challenge for HR department.
Human resource managers are on their toes to strike a balance between employer and employees
keeping in mind the recent trends in the market. They may find themselves in dire consequences if they
are not able to handle the human resource challenges efficiently.
HR Challenges
1. Increase the size of the workforce-with the increase in the size of the organisation and the
emergence of multinational corporation in the country, the number of people working in the
organisation has also increased.
2. Changing composition of the workforce. The composition of the workforce is also changing
and creating new problems for the human resources manager. In future the minority group
and woman will emerges as a significant component of workforce. Due to easy access to
educational employment opportunities, the scheduled caste, scheduled tribe and other minority
group are last becoming an important sources of manpower in the organisation.
The increased the number of female employees and working mothers bring new problem
before the human resource managers.
3. Increase in educational level. Technological progress and spread educational institutions
have increased the level of education and made the employee more mobile. Educated workers
are more aware of their right especially the higher level need.
4. Workforce Diversity. Dealing with people from different age, gender, race, ethnicity,
educational background, location, income, parental status, religious beliefs, marital status
and ancestry and work experience can be a challenging task for HR managers. With this,
managing people with different set of ideologies, views, life-styles and psychology can be very
risky. Effective communication, adaptability, agility and positive attitude of HR managers
can bind the diverse workforce and retain talents in the organisation.
5. Managing Change. Who wants to change their ideology or way of working? Neither you nor
How can we expect others to change then? Bringing change in organisational processes and
procedures, implementing it and then managing it is one of the biggest concerns of HR
managers. Business environment is so volatile. Technology keeps changing every now and
then. All thanks to globalisation. Upgrading the existing technology and training people for
them is a real headache for HR department. The success rate of technology change depends
how well HRD can handle the change and manage people issues in the process.
6. Retaining the Talents. Globalisation has given freedom to working professionals to work
anywhere in the world. Now that they have endless lucrative opportunities to work, hiring
and retaining the best industry talent is no joke. Maintaining harmonious relations with
them, providing excellent work environment and offering more remuneration and perks than
your competitors can retain and motivate them.
7. Conflict Management. HR managers should know how to handle employee-employer and
employee-employee conflicts without hurting their feelings. Although it is almost impossible
to avoid conflicts among people still handling them tactfully can help HR managers to resolve
the issues. They should be able to listen to each party, decide and communicate to them in a
convincing manner in order to avoid future conflicts.
8 New work ethics. For setting up and in forcing good quality standard the human resources
managers will have to develop a new work ethics. Changing work ethic will require increased
emphasis on individual. As a result job will have to redesigned to provide challenges to the
employees.
Elective II 645
9. Computerised information system. More recently, there has been and in future there will be
impact of the computerised information system on the management .The computer will be
used for collection and processing of data and for direct application in the managerial decision
making.
10. Technological advancement. Automation and computerisation of the organisation are taking
place which are making the job and skill obsolete. In the age of the competition organisation
with old technology cannot think of surviving, but with new techniques, the problem of
unemployment crop up.
11. Global HRM and the Staffing policy. The challenge here is developing tools to promote a
corporate culture that is almost the same everywhere except that the local sensitivities are
taken care of. Also, the deciding upon the top management or key positions gets very tricky.
Whether to choose a local from the host country for a key position or deploy one from the
headquarters assumes importance; and finally whether or not to have a uniform hiring policy
globally remains a big challenge. Nevertheless an organisation can choose to hire according
to any of the staffing policies mentioned below:
(i) Ethnocentric. When a company follows the strategy of choosing only from the citizens
of the parent country to work in host nations, it is called an ethnocentric approach.
Normally, higher-level foreign positions are filled with expatriate employees from the
parent country. The general rationale behind the ethnocentric approach is that the
staff from the parent country would represent the interests of the headquarters effectively
and link well with the parent country. The recruitment process in this method involves
four stages: self-selection, creating a candidate pool, technical skills assessment, and
making a mutual decision. Self-selection involves the decision by the employee about
his future course of action in the international arena. In the next stage, the employee
database is prepared according to the manpower requirement of the company for
international operations. Then the database is analysed for choosing the best and most
suitable persons for global assignments and this process is called technical skills
assessment. Finally, the best candidate is identified for foreign assignment and sent
abroad with his consent.
The ethnocentric approach places natives of the home country of a business in key
positions at home and abroad. In this example, the U.S. parent company places natives
from the United States in key positions in both the United States and Mexico.
Here the Key management positions are filled by the parent country individuals.
(ii) Polycentric. When a company adopts the strategy of limiting recruitment to the nationals
of the host country (local people), it is called a polycentric approach. The purpose of
adopting this approach is to reduce the cost of foreign operations gradually. Even
those organisations which initially adopt the ethnocentric approach may eventually
switch over to the polycentric approach. The primary purpose of handing over the
management to the local people is to ensure that the company understands the local
market conditions, political scenario, cultural and legal requirements better. The
companies that adopt this method normally have a localised HR department, which
manages the human resources of the company in that country. Many international
companies operating their branches in advanced countries like Britain and Japan
predominantly adopt this approach for recruiting executives to manage the branches.
The polycentric approach uses natives of the host country to manage operations in
their country and natives of the parent country to manage in the home office. In this
example, the Australian parent company uses natives of India to manage operations at
the Indian subsidiary. Natives of Australia manage the home office. In polycentric
staffing policy the host country nationals manage subsidiaries whereas the headquarter
positions are held by the parent company nationals.
(iii) Geocentric. When a company adopts the strategy of recruiting the most suitable persons
for the positions available in it, irrespective of their nationalities, it is called a geocentric
approach. Companies that are truly global in nature adopt this approach since it
utilises a globally integrated business strategy. Since the HR operations are constrained
by several factors like political and ethnical factors and government laws, it is difficult
to adopt this approach. However, large international companies generally adopt the
geocentric strategy with considerable success.
For international recruitment, especially on foreign soil, organisations generally use
manpower agencies or consultants with international connections and repute to source
candidates, in addition to the conventional sources. For an effective utilisation of the
internal source of recruitment, global companies need to develop an internal database
of employees and an effective tracking system to identify the most suitable persons for
global postings. The geocentric approach uses the best available managers for a business
without regard for their country of origin. In this example, the UK parent company
uses natives of many countries at company headquarters and at the U.S. subsidiary.
(iv) Regiocentric Approach. Company’s international business is divided into international
geographic regions. The regiocentric approach uses managers from various countries
within the geographic regions of business. Although the managers operate relatively
independently in the region, they are not normally moved to the company headquarters.
The regiocentric approach is adaptable to the company and product strategies. When regional
expertise is needed, natives of the region are hired. If product knowledge is crucial, then
parent-country nationals, who have ready access to corporate sources of information, can be
brought in.
One shortcoming of the regiocentric approach is that managers from the region may not
understand the view of the managers at headquarters. Also, corporate headquarters may not
employ enough managers with international experience. The regiocentric approach places
managers from various countries within geographic regions of a business. In this example,
the U.S. parent company uses natives of the United States at company headquarters. Natives
of European countries are used to manage the Italian subsidiary.
DOWNSIZING
Downsizing is reducing the number of employees on the operating payroll. Some users distinguish
downsizing from a layoff, with downsizing intended to be a permanent downscaling and a layoff
intended to be a temporary downscaling in which employees may later be rehired
Whether it is called downsizing, rightsizing, delaying, reduction in force, redundancy elimination,
or any of a host of other terms, the expectation of lifelong employment with one employer has now
become the exception rather than the rule. Both in the government and the private sector, the loss of
that sense of security—combined with the familiar scenario in which the number of employees is
reduced but the amount of work remains unchanged—can have devastating effects on the remaining
employees, otherwise known as the “survivors.”
Providing improved service with fewer workers is the hallmark of a successful downsizing. The
basic GOAL for a successful downsizing is “work better and cost less”. To help achieve this goal, it is
important to review and learn from the experiences of organisations that have downsized and recognise
that downsizing does not always achieve the intended results.
Elective II 647
Many companies, large and small, have downsized during the last few years in response to the
slumping economy, technological advances, and shifts in corporate priorities. The prime impetus of
most downsizing efforts are the desire for an immediate reduction costs and increased levels of
efficiency, productivity, profitability, and competitiveness (Farrell and Mavondo, 2004).
A single definition of downsizing does not across studies and disciplines. It is clear that it means
a contraction in the size of a firm’s workforce. Cascio (1993) posits that downsizing is the planned
elimination of positions or jobs whose primary purpose is to reduce the workforce, while Gandolfi
adds that a myriad of terms have been used euphemistically in reference to downsizing including
“bright sizing” and “rightsizing”.
Overview Impact of Downsizing

Downsizing—and even the threat of downsizing—has placed considerable stress on work
environments. Most business and organisational researchers believe that cycles of downsizing—also
called resizing, depending on your perspective—are not a short-term phenomenon but a reality that is
here to stay. (Kenneth P. De Meuse and Mitchell Lee Marks, 2003).
They added, employees can be traumatized by layoffs, their own or those of co-workers. The loss
of work can have a devastating impact on people’s lives and can also damage, if not destroy, the
relationship an organisation has with the people who remain. They include that, the management is
in the undesirable position of having to motivate and energise staff members who are as concerned
about their future with the organisation as they are with the work.
Downsizing is a challenging solution to a complex problem and has the potential to affect the
business as well as employee morale and productivity. (Erica Siegel, 2009)
Process Involved in the Implementation of Downsizing

The downsizing literature reveals that a number of distinct implementation strategies have been
identified. Cameron, Freeman, and Mishra (1991, 1993) have conducted one of the most extensive and
systematic studies of corporate workforce downsizing and reported three major findings regarding
downsizing implementation strategies. First and foremost, they identified and differentiated between
three distinct types of downsizing implementation strategies. That is, a workforce reduction strategy,
an organisation redesign strategy, and a systemic strategy. The workforce reduction strategy often referred
to as the layoff strategy.
It encompasses activities, such as layoffs, retrenchments, natural attritions, early retirements,
hiring freezes, golden parachutes, and buyout packages. This strategy is frequently implemented in a
reactive manner as a cost-cutting measure and may serve as a short-term response to declining profits.
While for the organisation redesign strategy focuses predominantly upon the elimination of work,
rather than reducing the number of employees.
It encompasses activities, such as abolishing functions, eliminating hierarchical levels (de-
layering), groups, divisions, products, redesigning tasks, consolidating and merging units, and
reducing overall work hours. Organisation redesign strategies are commonly regarded as being difficult
to implement quickly as this requires some advanced analysis of the areas concerned. The systemic
strategy is fundamentally different from the former two strategies in the sense that it appears to
embrace a more holistic view of organisational change. Thus, downsizing ought to embrace all
dimensions and aspects of the organisation, including suppliers, customer relations, production
methods, design processes, and inventories. Systemic strategy focuses primarily upon changing the
organisation’s intrinsic culture and the attitudes and values of its employees.
m Resource & Technology. During hard time especially when economy downturn, most
organisation will make a decision to keep operation cost at minimum. Normally they will go
for downsizing. The resource that can be applied for downsizing might be outsourcing and
collaboration as an alternative.
m Outsourcing. Normally company will practice outsourcing as alternative to recruit. There are
few advantages of outsourcing which is clearly improved business focus, more productive
use of time and resources, and guidance from experts from across the business spectrum. It
allows company to focus on the core competencies and provides administrative relief from
many employer-related responsibilities, so they can concentrate on developing strategies that
provide you a competitive advantage.
m Collaboration-Collaboration is a process of participation through which people, groups and
organisations work together to achieve desired results. Common factors and characteristics
have been identified by research as influencing the collaborative process, including the skills
of leadership, communication, sustainability, unity, participation, and a history of successful
accomplishments (Hogue, et.al., 1995; Keith et.al., 1993).
Downsizing Model
m Implementation plan. The degree to which downsizing implementation strategies are applied
is driven by the magnitude of the mandated reductions. Modest reductions are almost always
accomplished by pro-rata reductions across the affected agencies and are generally
accommodated through attrition. Large workforce reductions, on the other hand, require
planning involving multiple concurrent activities—including strategic planning, labour-
management relations, communications, and human resources.
m Strategic Planning. The impact of downsizing should be incorporated into the organisation’s
strategic plan to maintain a consistent understanding of the future of the organisation and
how it will get there. The degree to which this has been done among the agencies represented
in our study varies greatly. When numeric goals are established for downsizing—as was
done in the Federal Workforce Restructuring Act of 1994—it appears that downsizing drives
the strategic planning process.
m Labor-management relations. Organisations with unions secure union involvement as early
in the planning process as possible, and that involvement continues throughout the
downsizing process. The union is an important participant in gaining employee acceptance
of the changes that will be necessary as a result of the required cuts.
m Communications. Communication—early and often—among management, employees,
customers, and affected communities is a key ingredient in successful downsizing. The
implementation plan should identify how this will be accomplished.
m Human Resources. The element involving the greatest use of resources in downsizing is the
process for handling human resources. Typical activities in this area include:
n A workforce demographics review, to include retirement and other loss projections and
assessments of the age, diversity, and skills of the workforce;
n Assessment of available options to avoid involuntary separations, such as hiring freeze,
buy outs, early retirement, retraining, and relocations;
n Detailing FTE (Full Time Equivalent) reductions by year, location, program, occupation,
position, and person;
n Providing career transition/job placement assistance;
n Providing assistance for survivors of downsizing; and
n Ensuring that an adequate retraining program is in place.
m Functional reviews and process re-engineering. Although some agencies conducted functional
crosscutting reviews in their efforts to re-engineer processes, we found that, at most agencies,
Elective II 649
this has been done after the fact as a reaction to downsizing instead of employing re-engineering
in the planning process.
m Monitoring. Most agencies include monitoring systems in downsizing plans, either in the
form of pre-existing reviews or reviews designed specifically to assess progress in achieving
downsizing goals. Some agencies produce reports that can then be used as guides for future
downsizing activities. Wherever the workforce reduction allows, human resource options are
reviewed with annual budget preparation. A reassessment is done of the requirement for RIFs,
and FTEs are reallocated among sub organisations.
m Workforce. For workforce, the actions HR can do as part of downsizing to look over the
structure of the organisation are as follow: Try to reduce or terminate the foreign worker. Give
priority to the local workers to remain in the organisation. (Employment Act 1955) If still
exceed organisation capacity, then could proceed to termination of local workers LIFO (Last
in, First Out) If possible try to keep the most long serving employees as their compensation is
higher & costly to company. VSS (Voluntary Separate Scheme which is employee is offered a
package to volunteer to withdraw from the organisation. This is normally practice to avoid
unfair decision to employee especially when they just lost their job. Normally will Multi-
tasking could also be implemented. This require individual to perform several tasks that is
similar or practical to their expertise. Thus it can save costs of hiring new employees. Terminate
unnecessary position or department that doesn’t need more than it requires. Try to minimum
personnel in each area but widen the job scope. This is the best method to face critical situation
especially during bad economy downturn.
m Operational activities. At the operational activities, there are certain things can be applied to
ensure operation cost can be cut to minimum but still maintain optimum production. As
operation involves cost and very expensive these are the things could be done. Firstly try to
reduce overtime as this is an extra cost to company that have to bear. Control over this will
lead to better operation cost control. Next, working hours could be reduced as well as salary.
This is to be fair and equivalent to what they did and receive. Company can also extend to a
level of reduce the working days in a week from 6 days to 5 or 4 days. But ensure the operation
per month must be at least 12 working days. Lastly, for products that are low on demand
should be stop and focus on manufacturing high demand product. This is to avoid unnecessary
surplus stock that will cost the company if it can’t be sold.
Golden Handshake or Voluntary Retirement Schemes (VRS)

It has become inevitable for every government to dispense with the surplus manpower for improving
the health of an organisation. If this is not done, the excess labour would cause industrial sickness.
A popular methods to reduce the manpower is the voluntary retirement schemes (VRS) under the
VRS, employees who have attained a particular age or completed some particular years of service,
would seek voluntary retirement. Additional benefit would be given to the employees who opt for
VRS. These benefits would be in addition to the money that has occurred to the provident fund as per
rules or to the gratuity fund, whoever is applicable.
Some companies offer very attractive package of benefits to the employees who would opt for VRS
.Such schemes are often referred to as Golden Handshake Schemes. While the golden handshake
offered by some companies in the past worked well, the offers made by some companies recently failed
to the required response from the workers. An important reason for this said to be higher expectations
workers began to entertain as the concepts of golden handshake has become popular.
A number of organisations have already reduced the workforce by VRS. These VRS have taken
different forms, in facts, the process of getting rid of the excess labour started in several companies
much before the economic reforms ushered in India.
TOTAL QUALITY MANAGEMENT
Definition of TQM
m “A system of management based on a commitment to the customer’s total satisfaction
understanding and improving the organisations processes, employee involvement and data
based decision making” – MARK D. HANN
m TQM can be defined as “ an organisation wide effort to develop systems, tools, techniques,
skills and the mindset to establish a quality assurance system that is responsive to the emerging
market needs” – B. MAHADEVAN
The Evolution of TQM

In 1920’s statistical theory began to be applied effectively to the quality control concept later in 1924
Shewhart made the first sketch of a modern control chart. His works was later developed by process
control .After the World War II Japan’s industrial system was having a poor image of imitation of
products and having an illiterate workforce. The Japanese recognised these problems and their values
concerned with quality and continuous improvement the total quality management become popular
in 1950’s as it tried to recover Japanese economy from the spoils of World War II .During the 1980’s
Japans’ exports into the USA and Europe increased significantly due to its cheaper, higher quality
products, compared to the western countries.
Formation of TQM in India

In the early 1980’s, confederation of Indian industries (CII) took the initiatives to set up TQM practices
in India in 1982 quality circles were introduced for first time in India. The companies under which the
quality circles were launched are Bharat Electronics Ltd., Bangalore and Bharat Heavy Electricals
Ltd., Trichy. In 1986 CII invited professor Ishikawa to India, to address Indian Industry about quality.
In 1987, a TQM division was set up the CII this division had 21 companies agreed to contribute
resources to it and formed the National committee on quality.
In February 1991 an Indian company with assistance of the CII, obtained the first ISO 9000
certification in India. In 1996, the Govt. of India announced the setting up of quality council of India
and a national agency for quality certification was setup as a part of WTO agreement.
TQM Five Main Advantages

1. Encourages a strategic approach to management at the operational level through involving
multiple departments’ across functional improvement and systematic innovation processes.
2. Provides high return on investment through improved efficiency.
3. Works equally well for service and manufacturing sectors
4. Allows organisations to take advantage of developments that enable managing operations as
cross-functional processes
5. Fits an orientation toward inter-organisational collaboration and strategic alliances through
establishing a culture of collaboration among different departments within organisation.
TRAINING AND DEVELOPMENT

Training and development is a subsystem of an organisation and core function of human resource
management. It ensures continuous skill development of employees working in organisation
and habituates process of learning for developing knowledge to work. Training and Development is
the foundation for obtaining quality output from employees.
Elective II 651
Training and Development is a structured program with different methods will be designed by
professionals in particular job. It has become most common and continuous task in any organisation
for updating skills and knowledge of employees in accordance with changing environment.
Optimisation of cost with available resources has become pressing need for every organisation which
will be possible only by way of improving efficiency and productivity of employees, possible only by
way of providing proper employee training and development conditioned to that it should be provided
by professionals.
Traditional and Modern Approach of Training and Development

Traditional Approach. Most of the organisations before never used to believe in training. They were
holding the traditional view that managers are born and not made. There were also some views that
training is a very costly affair and not worth. Organisations used to believe more in executive pinching.
But now the scenario seems to be changing.
Modern approach of training and development is that Indian Organisations have realised the
importance of corporate training. Training is now considered as more of retention tool than a cost. The
training system in Indian Industry has been changed to create a smarter workforce and yield the best
results.
The HR Training and Development Manager is responsible for the organisation’s staff training
requirements, programs, and career development needs. They supervise training staff, plan and
administer training seminars, and manage conflict resolution, team building, and employee skill
evaluations.
The HR Training and Development Specialist plans, produces and administers staff and
management training programs. They conduct programs to develop employee skills in accordance
with organisation practices and policies. Additionally, they research and evaluate training resources,
as well as suggest new topics and methods.
“The way to activate the seeds of your creation is by making choices about the results you want to
create. When you make a choice, you activate vast human energies and resources, which otherwise go
untapped.” - Robert Fritz.
Training and Development Objectives

The principal objective of training and development division is to make sure the availability of a
skilled and willing workforce to an organisation. In addition to that, there are four other objectives:
Individual, Organisational, Functional, and Societal.
m Individual Objectives – help employees in achieving their personal goals, which in turn,
enhances the individual contribution to an organisation.
m Organisational Objectives – assist the organisation with its primary objective by bringing
individual effectiveness.
m Functional Objectives – maintain the department’s contribution at a level suitable to the
organisation’s needs.
m Societal Objectives – ensure that an organisation is ethically and socially responsible to the
needs and challenges of the society.
In the field of human resource management, training and development is the field concerned
with organisational activity aimed at bettering the performance of individuals and groups in
organisational settings. It has been known by several names, including employee
development, human resource development, and learning and development.
Training and development encompasses three main activities: training, education, and
development. Garavan, Costine, and Heraty, of the Irish Institute of Training and Development, note
that these ideas are often considered to be synonymous. However, to practitioners, they encompass
three separate, although interrelated, activities:
Training. This activity is both focused upon, and evaluated against, the job that an individual currently
holds.
Education. This activity focuses upon the jobs that an individual may potentially hold in the future,
and is evaluated against those jobs.
Development. This activity focuses upon the activities that the organisation employing the individual,
or that the individual is part of, may partake in the future, and is almost impossible to evaluate.
The “stakeholders” in training and development are categorised into several classes. The sponsors
of training and development are senior managers. The clients of training and development are business
planners. Line managers are responsible for coaching, resources, and performance. The participants
are those who actually undergo the processes. The facilitators are Human Resource Management
staff. And the providers are specialists in the field. Each of these groups has its own agenda and
motivations, which sometimes conflict with the agendas and motivations of the others.
Objectives of Training
Training is one of the most useful tools available to management. A manager makes use of training to
help him to manage. Thus, training is given to employees with the following objectives:
(1) To increase productivity.
(2) To make first line Supervisors a more effective tool of management.
(3) To bring out more cordial relations, i.e. employee and employer relations.
(4) To increase morale and team spirit among the workers.
(5) To increase effective co-operation and co-ordination at all levels.
(6) To impart various social and supervisory skills.
(7) To develop the individual to utilise the knowledge and experience and inherent abilities for
higher performance.
(8) To accept more shop floor responsibility.
(9) To increase knowledge (Technical know-how) and economical use of resources.
ORGANISATIONAL DEVELOPMENT
The term Organisational Development (OD) refers to a broad range of behavioural science based
strategies used to diagnose the need for change in organisations and to implement changes when
necessary. OD can be defined as a technique for bringing change in the entire organisation, rather man
focusing attention on individuals to bring change easily in the entire organisation.
Nature of OD. OD is a general strategy or approach to organisational change that is employed to
analyze and diagnose the sources of organisational problems and to develop and implement action
plans for their solution. According to Bennis, OD has the following characteristics :
m Laboratory training methods based on experienced behaviour are primarily used to bring
change.
m It is an educational strategy for bringing planned change.
m The change agents share social philosophy about human value. They are humanists seeking
to get a humanistic philosophy in organisation.
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m There is a close working relationship between change agents and the people who are being
changed. The relationships involve mutual trust, joint goals, means, and mutual influence.
m It relates to real problems of an organisation.
m Change agent applying OD technique for change is external to the forms of consultants.
Organisational Development (OD) Process

The Organisational Development (OD) process is complicated and it takes long time to complete the
process. It takes minimum of one year and sometimes continues indefinitely. There are different
approaches to OD process but the typical process consists of seven steps:
1. Initial Diagnosis. If executives recognise that there are inadequacies within organisation
which can be corrected by OD activities, it is necessary to find out the professional and
competent people within the organisation to plan and execute OD activities. If competent
people are not available within the organisation the services activities are to be taken. The
consultants adopt various methods including interviews, questionnaires, direct observation,
analysis of documents and reports for diagnosing the problem.
2. Data Collection. Survey method is used to collect the data and information for determining
organisational climate and identifying the behavioral problems.
3. Data Feedback and Confrontation. Data collected are analysed and reviewed by various
work groups formed from this purpose in order to mediate in the areas of disagreement or
confrontation of ideas or opinions and to establish priorities.
4. Selection and Design of Interventions. The interventions are the planned activities that are
introduced into the system to accomplish desired changes and improvements. At this stage
the suitable interventions are to be selected and designed.
5. Implementation of Intervention. The selected intervention should be implemented.
Intervention may take the form of workshops, feedback of data to the participants, group
discussions, written exercises, on-the-job activities, redesign of control system etc.
6. Action Planning and problem Solving. Groups prepare recommendations and specific action
planning to solve the specific and identified problems by using data collected.
7. Team Building. The consultants encourage the employees throughout the process to form
into groups and teams by explaining the advantages of the teams in the OD process, by
arranging joint meetings with the managers, subordinates etc.
8. Inter group Development. The consultants encourage the inter group meetings, interaction
etc., after the formation of groups/teams.
EMERGING HR CONCEPTS
Human Resource
Human Resources refers to the individuals and support systems within an organisation responsible
for personnel hiring and firing, applicant tracking, skills development, training, benefits administration,
and compliance with government regulations. HR professionals keep their companies in compliance,
develop viable employment policies and practices, and keep up-to-date with emerging trends.
Meaning of HRM
Human Resource Management is the process of recruitment, selection of employee, providing proper
orientation and induction, providing proper training and the developing skills, assessment of employee
(performance of appraisal), providing proper compensation and benefits, motivating, maintaining
proper relations with labour and with trade unions, maintaining employees safety, welfare and health
by complying with labour laws of concern state or country.
For any organisation to function effectively, it must have resource of men (Human Resource),
money, materials and machinery. The resources by themselves cannot fulfill the objectives of an
organisation, they need to be collected, co-ordinated and utilised through human resources. And, the
effective management of human resources is also vital. Hence, Human Resource Management (HRM)
has emerged as a major function in organisations.
Human Resource Management is the organisational function that deals with issues related to
people such as compensation, hiring, performance management, organisation development, safety,
wellness, benefits, employee motivation, communication, administration, and training. The
administrative discipline of hiring and developing employees so that they become more valuable to
the organisation.
Human Resource management includes:
1. conducting job analyses,
2. planning personnel needs, and recruitment,
3. selecting the right people for the job,
4. orienting and training,
5. determining and managing wages and salaries,
6. providing benefits and incentives,
7. appraising performance,
8. resolving disputes,
9. communicating with all employees at all levels. Formerly called personnel management.
10. maintaining awareness of and compliance with local, state and federal Labour laws.
These are also called as functions of human resource management for the purpose of effect you
utilisation of human resource.
Definition of HRM
Definitions: many great scholars had defined human resource management in different ways and
with different words, but the core meaning of the human resource management deals with how to
manage people or employees in the organisation.
m While Miller (1987) suggests that HRM relates to those decisions and actions which concern
the management of employees at all levels in the business and which are related to the
implementation of strategies directed towards creating and sustaining competitive advantage”
m Torrington and Hall (1987) define personnel management as being: “a series of activities
which first enable working people and their employing organisations to agree about the
objectives and nature of their working relationship and, secondly, ensures that the agreement
is fulfilled”
m Edwin Flippo defines- HRM as “planning, organising, directing, controlling of procurement,
development, compensation, integration, maintenance and separation of human resources to
the end that individual, organisational and social objectives are achieved.”
m The National Institute of Personal Management (NIPM) of India has defined human resources
– personal management as “that part of management which is concerned with people at work
and with their relationship within an enterprise. Its aim is to bring together and develop into
an effective organisation of the men and women who make up enterprise and having regard
for the well – being of the individuals and of working groups, to enable them to make their best
contribution to its success”.
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m According to Decenzo and Robbins, “HRM is concerned with the people dimension” in
management. Since every organisation is made up of people, acquiring their services, developing
their skills, motivating them to higher levels of performance and ensuring that they continue
to maintain their commitment to the organisation is essential to achieve organisational
objectives. This is true, regardless of the type of organisation – government, business, education,
health or social action”.
Objectives of HRM
m Societal objective. To be socially responsible to the needs and challenges of society while
minimising the negative impact of such demands upon the organisation. The failure of
organisations to use their resources for society’s benefit may result in restrictions. For example,
societies may pass laws that limit human resource decisions.
m Organisational objective. To recognise that HRM exists to contribute to organisational
effectiveness. HRM is not an end in itself; it is only a means to assist the organisation with its
primary objectives. Simply stated, the department exists to serve the rest of the organisation.
m Functional objective. To maintain the department’s contribution at a level appropriate to the
organisation’s needs. Resources are wasted when HRM is more or less sophisticated than the
organisation demands. A department’s level of service must be appropriate for the organisation
it serves.
m Personal objective. To assist employees in achieving their personal goals, at least insofar as
these goals enhance the individual’s contribution to the organisation. Personal objectives of
employees must be met if workers are to be maintained, retained and motivated. Otherwise,
employee performance and satisfaction may decline, and employees may leave the organisation.
Scope of Human Resource Management

The scope of HRM is extensive and far-reaching. Therefore, it is very difficult to define it concisely.
However, we may classify the same under following heads:
m Human resources planning. Human resource planning or Human Resource Planning refers
to a process by which the company to identify the number of jobs vacant, whether the company
has excess staff or shortage of staff and to deal with this excess or shortage.
m Job analysis design. Another important area of Human Resource Management is job analysis.
Job analysis gives a detailed explanation about each and every job in the company.
m Recruitment and selection. Based on information collected from job analysis the company
prepares advertisements and publishes them in the newspapers. This is recruitment. A number
of applications are received after the advertisement is published, interviews are conducted
and the right employee is selected thus recruitment and selection are yet another important
area of Human Resource Management.
m Orientation and induction. Once the employees have been selected an induction or orientation
program is conducted. This is another important area of Human Resource Management. The
employees are informed about the background of the company, explain about the organisational
culture and values and work ethics and introduce to the other employees.
m Training and development. Every employee goes under training program which helps him to
put up a better performance on the job. Training program is also conducted for existing staff
that have a lot of experience. This is called refresher training. Training and development is
one area where the company spends a huge amount.
m Performance appraisal. Once the employee has put in around 1 year of service, performance
appraisal is conducted that is the Human Resource department checks the performance of the
employee. Based on these appraisal future promotions, incentives, increments in salary are
decided.
m Compensation planning and remuneration. There are various rules regarding compensation
and other benefits. It is the job of the Human Resource department to look into remuneration
and compensation planning.
m Motivation, welfare, health and safety. Motivation becomes important to sustain the number
of employees in the company. It is the job of the Human Resource department to look into the
different methods of motivation. Apart from this certain health and safety regulations have to
be followed for the benefits of the employees. This is also handled by the HR department.
m Industrial relations. Another important area of Human Resource Management is maintaining
co-ordinal relations with the union members. This will help the organisation to prevent strikes
lockouts and ensure smooth working in the company.
Advantages/Benefits/Significance/Importance/Need of HRM
Human Resource Management becomes significant for business organisation due to the following
reasons.
m Objective. Human Resource Management helps a company to achieve its objective from time
to time by creating a positive attitude among workers. Reducing wastage and making maximum
use of resources etc.
m Facilitates professional growth. Due to proper Human Resource policies employees are trained
well and this makes them ready for future promotions. Their talent can be utilised not only in
the company in which they are currently working but also in other companies which the
employees may join in the future.
m Better relations between union and management. Healthy Human Resource Management
practices can help the organisation to maintain co-ordinal relationship with the unions. Union
members start realising that the company is also interested in the workers and will not go
against them therefore chances of going on strike are greatly reduced.
m Helps an individual to work in a team/group. Effective Human Resource practices teach
individuals team work and adjustment. The individuals are now very comfortable while
working in team thus team work improves.
m Identifies person for the future. Since employees are constantly trained, they are ready to
meet the job requirements. The company is also able to identify potential employees who can
be promoted in the future for the top level jobs. Thus one of the advantages of HRM is preparing
people for the future.
m Allocating the jobs to the right person. If proper recruitment and selection methods are
followed, the company will be able to select the right people for the right job. When this
happens the number of people leaving the job will reduce as the will be satisfied with their job
leading to decrease in labour turnover.
Process in Human Resource Management

Each organisation works towards the realisation of one vision. The same is achieved by formulation
of certain strategies and execution of the same, which is done by the HR department. At the base of this
strategy formulation lie various processes and the effectiveness of the former lies in the meticulous
design of these processes. But what exactly are and entails these processes? Let’s read further and
explore. The following are the various HR processes:
1. Human resource planning (Recruitment, Selecting, Hiring, Training, Induction, Orientation,
Evaluation, Promotion and Layoff).
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2. Employee remuneration and Benefits Administration.
3. Performance Management.
4. Employee Relations.
The efficient designing of these processes apart from other things depends upon the degree of
correspondence of each of these. This means that each process is subservient to other. You start from
Human resource Planning and there is a continual value addition at each step. To exemplify, the PMS
(performance Management System) of an organisation like Infosys would different from an organisation
like Walmart. Lets study each process separately.
Human Resource Planning
Generally, we consider Human Resource Planning as the process of people forecasting. Right but
incomplete, it also involves the processes of Evaluation, Promotion and Layoff.
m Recruitment. It aims at attracting applicants that match a certain Job criteria.
m Selection. The next level of filtration. Aims at short listing candidates who are the nearest
match in terms qualifications, expertise and potential for a certain job.
m Hiring. Deciding upon the final candidate who gets the job.
m Training and Development. Those processes that work on an employee onboard for his skills
and abilities upgradation.
m Employee Remuneration and Benefits Administration. The process involves deciding upon
salaries and wages, Incentives, Fringe Benefits and Perquisites etc. Money is the prime motivator
in any job and therefore the importance of this process. Performing employees seek raises,
better salaries and bonuses.
m Performance Management. It is meant to help the organisation train, motivate and reward
workers. It is also meant to ensure that the organisational goals are met with efficiency. The
process not only includes the employees but can also be for a department, product, service or
customer process; all towards enhancing or adding value to them.
Nowadays there is an automated performance management system (PMS) that carries all the
information to help managers evaluate the performance of the employees and assess them
accordingly on their training and development needs.
m Employee Relations. Employee retention is a nuisance with organisations especially in
industries that are hugely competitive in nature. Though there are myriad factors that motivate
an individual to stick to or leave an organisation, but certainly few are under our control.
m Employee relations also include. Labour Law and Relations, Working Environment, Employee
health and safety, Employee- Employee conflict management, Quality of Work Life, Workers
Compensation, Employee Wellness and assistance programs, Counseling for occupational
stress. All these are critical to employee retention apart from the money which is only a hygiene
factor.
m All processes are integral to the survival and success of HR strategies and no single process
can work in isolation; there has to be a high level of conformity and cohensiveness between
the same.
Benchmarking
Any organisation which aims at grand success in a competitive world can learn a lot from the
management practices of excellent corporations. Such practices serve as the benchmarks. Benchmarking
is a continuous search for an application of significantly better practices that lead to superior competitive
performance. It Ps much more than simply copying. According to Robert C. Camp, “Benchmarking is the
search for industry’s best practices that lead to superior performance.”
It is the practice of measuring and comparing key aspects of an organisation with those in other
organisations, to establish measures of relative performance and discover areas for improvement.
In the words of David Kearns of Xerox Corporation, “Benchmarking is the continuous process of
measuring products, services and practices against the toughest competitors or those companies
recognised as industry leaders.”
It is a systematic way to identifying the superior products, services, processes and practices that
can be adapted to an organisation to reduce costs, improve quality, cut inventory and provide greater
satisfaction to customers.
Benchmarking is the process of comparing one’s business processes and performance matches to
industry bests or best practices from other industries. Dimensions typically measured are quality, time
and cost. In the process of benchmarking, management identifies the best firms in their industry, or in
another industry where similar processes exist, and compare the results and processes of those studied
(the “targets”) to one’s own results and processes. In this way, they learn how well the targets perform
and, more importantly, the business processes that explain why these firms are successful.
Benchmarking is used to measure performance using a specific indicator (cost per unit of measure,
productivity per unit of measure, cycle time of x per unit of measure or defects per unit of measure)
resulting in a metric of performance that is then compared to others.
Also referred to as “best practice benchmarking” or “process benchmarking”, this process is used
in management and particularly strategic management, in which organisations evaluate various
aspects of their processes in relation to best practice companies’ processes, usually within a peer
group defined for the purposes of comparison. This then allows organisations to develop plans on
how to make improvements or adapt specific best practices, usually with the aim of increasing some
aspect of performance. Benchmarking may be a one-off event, but is often treated as a continuous
process in which organisations continually seek to improve their practices.
Types of Benchmarking
m Process benchmarking - the initiating firm focuses its observation and investigation of business
processes with a goal of identifying and observing the best practices from one or more
benchmark firms. Activity analysis will be required where the objective is to benchmark cost
and efficiency; increasingly applied to back-office processes where outsourcing may be a
consideration.
m Financial benchmarking - performing a financial analysis and comparing the results in an
effort to assess your overall competitiveness and productivity.
m Benchmarking from an investor perspective- extending the benchmarking universe to also
compare to peer companies that can be considered alternative investment opportunities from
the perspective of an investor.
m Performance benchmarking - allows the initiator firm to assess their competitive position by
comparing products and services with those of target firms.
m Product benchmarking - the process of designing new products or upgrades to current ones.
This process can sometimes involve reverse engineering which is taking apart competitors
products to find strengths and weaknesses.
m Strategic benchmarking - involves observing how others compete. This type is usually not
industry specific, meaning it is best to look at other industries.
m Functional benchmarking - a company will focus its benchmarking on a single function to
improve the operation of that particular function. Complex functions such as Human
Resources, Finance and Accounting and Information and Communication Technology are
unlikely to be directly comparable in cost and efficiency terms and may need to be disaggregated
into processes to make valid comparison.
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m Best-in-class benchmarking - involves studying the leading competitor or the company that
best carries out a specific function.
m Operational benchmarking - embraces everything from staffing and productivity to office
flow and analysis of procedures performed.
m Energy benchmarking - process of collecting, analysing and relating energy performance
data of comparable activities with the purpose of evaluating and comparing performance
between or within entities. Entities can include processes, buildings or companies.
Benchmarking may be internal between entities within a single organisation, or - subject to
confidentiality restrictions - external between competing entities.
Benchmarking Process Benefits

1. Competitive Advantage the main benefit is to identify where you are at the moment in
comparison to your main competitors and the reasons of why your business is behind others;
by identifying the factors that are holding you back; this will give you an opportunity for
process improvement and the opportunity to be the best in your market.
2. Understanding of the External Environment by analysing other companies within the same
sector; this will let you know if the external problems you are having are the same being faced
by your competitor; example: lack of reliable providers.
3. Process Improvement understanding the external environment will provide some of the tools
needed to achieve competitive advantage; however, without process improvements; this will
not be feasible; improving the areas where you are behind will put you on a different level.
4. Clear and Concise Objectives it will set objectives and clear targets to improve operations,
processes and even performance of people. The importance of clear objectives relies in the
motivational effect that has in the people responsible for providing results.
5. Personnel Retention. More companies nowadays are also performing personnel
benchmarking in terms of salaries, benefits and satisfaction; this will allow to reward the staff
depending on what the average market does; this is especially important for key people in the
organisation.
Pitfalls of Benchmarking
(i) Lack of focus and priority. (ii) Lack of commitment on the part of management
(iii) Incompetent leadership. (iv) Failure to consider customer requirements
(v) Lack of proper planning (vi) Not involving the staff in the programme.
(vii) Lack of adequate resources and facilities.
Requirement of Successful Benchmarking
(i) Select the best companies for benchmarking.
(ii) Focus on the best practices.
(iii) Understand your own company’s processes and practices thoroughly.
(iv) Be willing to change.
(v) Use benchmarking regularly.
Six Sigma
Organisations practicing Six Sigma create special levels for employees within the organisation. Such
levels are called as: “Green belts”, “Black belts” and so on. Individuals certified with any of these belts
are often experts in six sigma process. According to Six Sigma any process which does not lead to
customer satisfaction is referred to as a defect and has to be eliminated from the system to ensure
superior quality of products and services. Every organisation strives hard to maintain excellent
quality of its brand and the process of six sigma ensures the same by removing various defects and
errors which come in the way of customer satisfaction. The process of Six Sigma originated in
manufacturing processes but now it finds its use in other businesses as well. Proper budgets and
resources need to be allocated for the implementation of Six Sigma in organisations.
Following are the two Six Sigma methods:
m DMAIC m DMADV
DMAIC focuses on improving existing business practices. DMADV, on the other hand focuses on
creating new strategies and policies.
DMAIC has Five Phases
D - Define the Problem. In the first phase, various problems which need to be addressed to are clearly
defined. Feedbacks are taken from customers as to what they feel about a particular product or service.
Feedbacks are carefully monitored to understand problem areas and their root causes.
M - Measure and find out the key points of the current process. Once the problem is identified,
employees collect relevant data which would give an insight into current processes.
A - Analyze the data. The information collected in the second stage is thoroughly verified. The root
cause of the defects are carefully studied and investigated as to find out how they are affecting the
entire process.
I - Improve the current processes based on the research and analysis done in the previous stage.
Efforts are made to create new projects which would ensure superior quality.
C - Control the processes so that they do not lead to defects.
DMADV Method
D - Design strategies and processes which ensure hundred percent customer satisfaction.
M - Measure and identify parameters that are important for quality.
A - Analyze and develop high level alternatives to ensure superior quality.
D - Design details and processes.
V - Verify various processes and finally implement the same.
Kaizen
Kaizen process aims at continuous improvement of processes not only in manufacturing sector but
all other departments as well. Implementing Kaizen tools is not the responsibility of a single individual
but involves every member who is directly associated with the organisation. Every individual,
irrespective of his/her designation or level in the hierarchy needs to contribute by incorporating small
improvements and changes in the system. Following are the main elements of Six Sigma:
m Teamwork m Personal Discipline m Improved Morale
m Quality Circles m Suggestions for Improvement
Five S of Kaizen
“Five S” of Kaizen is a systematic approach which leads to foolproof systems, standard policies, rules
and regulations to give rise to a healthy work culture at the organisation. You would hardly find an
individual representing a Japanese company unhappy or dissatisfied. Japanese employees never
speak ill about their organisation. Yes, the process of Kaizen plays an important role in employee
satisfaction and customer satisfaction through small continuous changes and eliminating defects.
Kaizen tools give rise to a well organised workplace which results in better productivity and yield
better results. It also leads to employees who strongly feel attached towards the organisation.
Let us understand the five S in Detail:
1. SEIRI. SEIRI stands for Sort Out. According to Seiri, employees should sort out and organise
things well. Label the items as “Necessary”, “Critical”, “Most Important”, “Not needed now”,
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“Useless and so on. Throw what all is useless. Keep aside what all is not needed at the
moment. Items which are critical and most important should be kept at a safe place.
2. Seition. Seition means to Organise. Research says that employees waste half of their precious
time searching for items and important documents. Every item should have its own space and
must be kept at its place only.
3. SEISO. The word “SEISO” means shine the workplace. The workplace ought to be kept clean.
De-clutter your workstation. Necessary documents should be kept in proper folders and files.
Use cabinets and drawers to store your items.
4. SEIKETSU-SEIKETSU refers to Standardisation. Every organisation needs to have certain
standard rules and set policies to ensure superior quality.
5. SHITSUKE or Self Discipline. Employees need to respect organisation’s policies and adhere
to rules and regulations. Self discipline is essential. Do not attend office in casuals. Follow
work procedures and do not forget to carry your identity cards to work. It gives you a sense of
pride and respect for the organisation.
Quality of Work Life

Quality of work life refers to the favorableness or unfavourableness of the job environment of an
organisation for its employees. It is generic term which covers a person’s feelings about every dimension
of his work e.g. economic incentives and rewards, job security, working conditions, organisational
and interpersonal relationships etc. The term QWL has different meanings for different people. A few
important definitions of QWL are as follows:
m According to Harrison: “Quality of Work Life is the degree to which work in an organisation
contributes to material and psychological well being of its members.”
m According to D.S. Cohan “Quality of Work Life is a process of joint decision making,
collaborations and building mutual respect between management and employees.”
m According to the American Society of Training and Development “Quality of Work Life is a
process of work organisation which enables its members at all levels to participate actively
and effectively in shaping the organisations’ environment, methods and outcomes. It is a
value based process which is aimed towards meeting the twin goals of enhanced effectiveness
of the organisation and improved quality of life at work for the employees”.
Principles of QWL
According to N.Q. Herrick and M. Maccoby there are four basic principles, which will humanise work
and improve the Quality of Work Life:
1. The Principle of Security. Quality of work cannot be improved until employees are relieved of
the anxiety, fear and loss of future employment. The working conditions must be safe and fear
of economic want should be eliminated. Job security and safety against occupational hazards
is an essential precondition of humanisation of work.
2. The Principle of Equity. There should be a direct and positive relation between effort and
reward. All types of discrimination between people doing similar work and with same level of
performance must be eliminated. Equity also requires sharing the profits of the organisation.
3. The Principle of individualism. Employees differ in terms of their attitudes, skills, potentials
etc. Therefore, every individual should be provided the opportunities for development of his
personality and potential. Humanisation of work requires that employees are able to decide
their own pace of activities and design of work operations.
4. The Principle of Democracy. This means greater authority and responsibility to employees.
Meaningful participation in decision making process improves the quality of work life.
The Mckinsey 7s Framework

How do you go about analyzing how well your organisation is positioned to achieve its intended
objective? This is a question that has been asked for many years, and there are many different answers.
Some approaches look at internal factors, others look at external ones, some combine these perspectives,
and others look for congruence between various aspects of the organisation being studied. Ultimately,
the issue comes down to which factors to study. While some models of organisational effectiveness go
in and out of fashion, one that has persisted is the McKinsey 7s framework. Developed in the early
1980s by Tom Peters and Robert Waterman, two consultants working at the McKinsey & Company
consulting firm, the basic premise of the model is that there are seven internal aspects of an organisation
that need to be aligned if it is to be successful.
The 7s model can be used in a wide variety of situations where an alignment perspective is useful,
for example to help you:
m Improve the performance of a company.
m Examine the likely effects of future changes within a company.
m Align departments and processes during a merger or acquisition.
m Determine how best to implement a proposed strategy.
The Seven Elements

The McKinsey 7s model involves seven interdependent factors which are categorised as either “hard”
or “soft” elements:
Hard Elements Soft Elements
Strategy Shared Values
Structure Skills
Systems Style
Staff
“Hard” elements are easier to define or identify and management can directly influence them:
These are strategy statements; organisation charts and reporting lines; and formal processes and IT
systems.
“Soft” elements, on the other hand, can be more difficult to describe, and are less tangible and
more influenced by culture. However, these soft elements are as important as the hard elements if the
organisation is going to be successful. The way the model is presented in Figure below depicts the
interdependency of the elements and indicates how a change in one affects all the others.
Structure
Strategy Systems
Shared
Values
Skills Style
Staff
FIGURE The McKinsey 7s Model.

Let’s look at each of the elements specifically:
m Strategy the plan devised to maintain and build competitive advantage over the competition.
m Structure the way the organisation is structured and who reports to whom.
Elective II 663
m Systems the daily activities and procedures that staff members engage in to get the job done.
m Shared Values called “superordinate goals” when the model was first developed, these are
the core values of the company that are evidenced in the corporate culture and the general
work ethic.
m Style the style of leadership adopted.
m Staff the employees and their general capabilities.
m Skills the actual skills and competencies of the employees working for the company.
7s Checklist Questions
Here are some of the questions that you’ll need to explore to help you understand your situation in
terms of the 7s framework. Use them to analyse your current (Point A) situation first, and then repeat
the exercise for your proposed situation (Point B).
Strategy:
m What is our strategy?
m How do we intend to achieve our objectives?
m How do we deal with competitive pressure?
m How are changes in customer demands dealt with?
m How is strategy adjusted for environmental issues?
Structure:
m How is the company/team divided?
m What is the hierarchy?
m How do the various departments coordinate activities?
m How do the team members organise and align themselves?
m Is decision making and controlling centralised or decentralised? Is this as it should be, given
what we’re doing?
m Where are the lines of communication? Explicit and implicit?
Systems:
m What are the main systems that run the organisation? Consider financial and HR systems as
well as communications and document storage.
m Where are the controls and how are they monitored and evaluated?
m What internal rules and processes does the team use to keep on track?
Shared Values:
m What are the core values?
m What is the corporate/team culture?
m How strong are the values?
m What are the fundamental values that the company/team was built on?
Style:
m How participative is the management/leadership style?
m How effective is that leadership?
m Do employees/team members tend to be competitive or cooperative?
m Are there real teams functioning within the organisation or are they just nominal groups?
Staff:
m What positions or specialisations are represented within the team?
m What positions need to be filled?
m Are there gaps in required competencies?
Skills:
m What are the strongest skills represented within the company/team?
m Are there any skills gaps?
m What is the company/team known for doing well?
m Do the current employees/team members have the ability to do the job?
m How are skills monitored and assessed?
Business Process Re-engineering

Hammer and Champy’s concept of Business Process Re-Engineering depends on harnessing technology
to optimise processes as its main driver. To understand why technology is imperative for BPR, let’s
first review what BPR does. “BPR is the fundamental rethinking and radical redesign of business
processes to achieve dramatic improvements in critical contemporary measures of performance, such
as cost, quality, service, and speed.” Instead of starting with an activity flowchart, corporations are
advised to start with a clean slate. They are then told to look into why they perform the tasks the way
they do. A Process Engineer will look at the activities to be performed and how they can be engineered
to invest minimum resources and get maximum returns. To illustrate the point, let us consider the
example of Apple iPod. Apple rethought the way music ought to be made available to the consumers.
The changes it brought were:
m Radical. While all other music labels were selling music via brick and mortar stores, Apple
developed its iTunes software to sell music digitally. (Napster had made digital music available
through a P2P platform earlier, but was sued by music labels for copyright violation)
m Fundamental. Apple sold single tracks as opposed to whole albums being sold at brick and
mortar shops. Apple just kept in mind the end need of the consumer and reconsidered whether
conventions were required.
Business process re-engineering is required in two cases:
1. The organisation has discovered some breakthrough methodology which will revolutionise
its processes to give it more productivity and efficiency and therefore the entire process needs
to be changes.
2. The organisation has failed to keep up to date with the changing technologies. Since it did not
continuously innovate, it is now faced with a “change or die” situation and business process
re-engineering which helps integrate latest best practices into the processes are the only way
to save the business.
Information Availability. To fundamentally redesign a process, one must know the details involved.
Details from internal and external sources must be captured and provided to the relevant people in the
required time duration. This helps them to identify the bottlenecks and work around better ways of
reaching the desired end.
Information Sharing. A BPR project is usually facilitated by a cross functional team. Most of the times,
teams are spread across different geographic locations. Information needs to be successfully shared
amongst various people to ensure the re-engineering goes as planned and without hiccups.
Technology as the Solution. The new processes that are developed as a result of BPR initiatives
deploy the latest technology to achieve the desired end results. Usually it is e-Commerce, automation
or another technology driven solution that is implemented.
Business Process Re-engineering has become a very important buzzword in the BPM lexicon.
Many corporations who were late in realising the power and importance of BPM have to undergo re-
engineering initiatives to ensure that they are still relevant to the marketplace. Re-engineering initiatives
are however expensive and may require certain downtime. This is the reason they are resented by
many corporations.
Elective II 665

1. _______movement is to make every em- (A) Philip Crosby
ployee and every manager responsible for (B) Joseph M. Juran
making continuous improvement in the (C) Both A & B
quality of the company services and prod- (D) None of these
uct in order to satisfy customer need.
8. Quality is free book was written by
(A) QC
(A) Philip Crosby
(B) TQM
(B) Joseph M. Juran
(C) Both A & B
(C) Both A & B
(D) None of these
(D) None of these
2. Many of the major principle of TQM are
9. _______means the place where products
based on the two ideas of two American
and services are formed, manager at all level
______who are expert in statically process
can cooperate with employee. The work-
control and quality and quality manage-
place where the real action occurs.
ment.
(A) W. Edward Deming (A) QC
(B) Josph M. Juran (B) TQM
(C) Both A & B (C) Gemba Kaizen
(D) None of these
(D) None of these
10. Muri, mura and muda are three ingredients
3. How many number Deming has given to the
is related to the
quality characteristics?
(A) QC
(A) 8 (B) 14
(C) Both A & B (D) None of these (B) TQM
(C) Kaizen
4. Juran has given the ______ quality charac-
teristics. (D) None of these
(A) 8 (B) 14 11. What is the act of taking up part time job or
business or industrial unit simultaneously
with that of the original job?
5. Juran trilogy include
(A) Half moon lighting
(A) Quality planning
(B) Daily lighting
(B) Quality control
(C) Noon lighting
(C) Quality improvement
(D) Moon lighting
(D) All of these
12. Six sigma was introduced in Korea in
6. TQM’s powerful concepts are
(A) 1994 (B) 1998
(A) Focus on customer
(B) Employee involvement
13. Six sigma was introduced in Motorola in
(C) Mastery of processes
(A) 1994 (B) 1998
(D) All of these
7. Zero Defects (ZD) was given by ________ in
1979.
14. Business Process Re-Engineering was given (A) Toyota (B) Motorola
by (C) Both A & B (D) None of these
(A) Champy and Hammer 21. Who introduced the concept of QC in India?
(B) Josph M. Juran (A) Juran
(C) Both A & B (B) Deming
(D) None of these (C) S.R. Udpa
15. _______means the continuous improve- (D) None of these
ment which involves everyone both manager 22. The concept of QC is a brain child given by
and workers and entails relatively little ex-
(A) Taylor
penses.
(B) Ishikawa
(A) QC
(C) Juran
(B) Kaizen
(D) None of these
(C) Both A & B
(D) None of these 23. In which industry QC in India was first in-
troduced
16. The fundamental rethinking and redesign
(A) BEL (B) BHEL
of operating processes and organisational
structure, focus on the organisation core (C) Both A & B (D) None of these
competencies to achieve dramatic improve- 24. Sundaram fasteners and sundaram Clyton,
ment in organisation performance. Kirlosker groups of companies, Wadia,
(A) QC Godrej, BHEL have adopted the
(B) BPR (A) TQM
(C) Both A & B (B) QC
(D) None of these (C) Gemba Kaizen
17. __________integrates a set of management (D) None of these
strategies and employee involvement tech- 25. Highest ___________ awards – the Deming
niques. prize in Japan and the Bald Ridge award in
(A) QC the US – include the most respected and suc-
(B) Twenty key system cessful corporation like Toyota, Canon,
Motorola and federal express.
(C) Both A & B
(A) QC (B) TQM
(D) None of these
(C) Kaizen (D) None of these
18. The process of comparing work and service
methods against the best practices and out- 26. In the early 1980’s, confederation of Indian
comes in industry is known as industries (CII) took the initiatives to set up
TQM practices in India in _______ quality
(A) QC
circles were introduced for first time in In-
(B) Benchmarking dia.
(C) Both A & B (A) 1985 (B) 1982
(D) None of these (C) Both A & B (D) None of these
19. The philosophy of never ending improve- 27. Quality circles were launched are Bharat
ment’ in TQM is called Electronics Ltd., Bangalore and Bharat
(A) Kaizen (B) Benchmarking Heavy Electricals Ltd., Trichy. In ______ CII
(C) Both A & B (D) None of these invited professor Ishikawa to India, to ad-
20. In which company Six Sigma was first ex- dress Indian Industry about quality.
perimented (A) 1985 (B) 1986
Elective II 667
28. In February ______ an Indian company with 34. The right sequence QC process is
assistance of the CII, obtained the first ISO (A) Pareto analysis
9000 certification in India. (B) Stratification
(A) 1985 (B) 1992 (C) Histograms
(C) 1991 (D) None of these (D) All of these
29. In _________, the Govt. of India announced 35. A team of small number of volunteer work-
the setting up of quality council of India and ers from the units of an organisation form a
a national agency for quality certification group called___________. The circle con-
was setup as a part of WTO agreement. duct regular meetings and discusses how to
(A) 1985 (B) 1996 solve the quality related problem that has
(C) Both A & B (D) None of these effected in their operational domain they
30. NIPM Stands for develop possible solution.
(A) National Institute of Personnel manage- (A) QC (B) TQM
ment (C) Gemba Kaizen (D) None of these
(B) National Indian of Personnel manage- 36. Some common types of QC teams are
ment (A) Steering committees
(C) National Indian of Power management (B) Problem solving teams
(D) All of these (C) Natural work teams
31. NILM Stands for. (D) All of these
(A) National Institute of Labour manage- 37. This is an approach developed by Lewin
ment (1951). The essential elements of _________
(B) National Indian of Lower management are data collection, diagnosis, feedback, ac-
(C) National Indian of land management tion planning, action and evaluation.
(D) All of these (A) Reactive (B) Proactive
( C) Action Research (D) All of these
32. TQM, in the form of statistical quality con-
trol, was invented by Walter A. Shewhart. It 38. The techniques of _________include the use
was initially implemented at Western Elec- of attitude surveys and workshops to feed
tric Company, in the form developed by back results and discuss implications.
_________who had worked there with the (A) Reactive
method. (B) Survey Feedback
(A) Walter (B) Joseph Juran (C) Action Research
33. TQM was demonstrated on a grand scale by 39. The term ________ in OD refers to core struc-
Japanese industry through the intervention tured activities involving clients and con-
of ______ who, in consequence, and thanks sultants.
to his missionary labors in the U.S. and (A) Reactive
across the world, has come to be viewed as (B) Intervention
the “father” of quality control, quality cir- (C) Action Research
cles, and the quality movement generally.
(D) All of these
(A) Walter
40. The three primary tasks of the OD practitio-
(B) W. Edwards Deming
ner or interventionist, Argyris (1970)
(C) Both A & B
(A) Generate and help clients to generate
(D) None of these valid information that they can under-
stand about their problems.
(B) Create opportunities for clients to search 46. The key of organisation development in-
effectively for solutions to their prob- cludes
lems, to make free choices. (A) Take a holistic view of the organisation.
(C) Create conditions for internal commit- (B) Secure top management support.
ment to their choices and opportunities (C) Encourage participation by those af-
for the continual monitoring of the ac- fected by the change.
tion taken. (D) All of these
(D) All of these.
47. OD has to work with some operational goals
41. The field of organisation development in- given by Udai Pareek
cludes (A) The person
(A) Organisation development is an im- (B) Interpersonal & organisation
provement strategy
(C) Team and interterm
(B) OD is about people and how organisa-
(D) All of these
tion function and how to get them to func-
tion better 48. _____ has stated four major problem of man-
aging organisation change. These are resis-
(C) OD are long term planned, sustained
tance, power control and task definition.
effort
(D) All of these (A) Taylor
(B) David A Nadler
42. The two major goals of OD program includes
(C) Senge
(A) To improve the functioning of indi-
(D) All of these
vidual, team and the total organisation
(B) To teach organisation member how to 49. Which of the following was interested in
continuously improve their functioning visioning and future search?
(C) Both A& B (A) Ronald Lippitt
(D) All of these (B) Marvin Weisbord
(C) Edward Lindaman
43. The__________ of OD focuses on values, be-
lief, attitude, style and relationship. (D) All of these
(A) Reactive 50. Foundation of the organisation development
(B) Behavioural approach includes
(C) Action Research (A) Models and theories of planned change
(D) All of these (B) System Theory
44. Ciampa, who acknowledge the pioneering (C) Participation and empowerment
contribution of the Joseph Juran, (D) All of these
W. Edwards Deming and Armand 51. Others foundation of the organisation de-
Feigenbauam of the development of velopment includes
(A) Reactive (A) Parallel learning structure
(B) TQM (B) Normative reductive
(C) Action research (C) Applied behavioural Sciences
45. Which of the following is the variable in OD? 52. _______ refers to compensation programmes
(A) Causal variable that allow employees to choose the type and
(B) Intervening variable quantity of reward desired by him during
(C) End result variable the year.
(D) All of these (A) Cafeteria style compensation
Elective II 669
(B) Dearness Allowance tional change and fundamental change in
(C) Develop style compensation the organisational culture.
(D) All of these (A) Burke–Litwin model
53. Ronald lippitt, Jeanne, Waston, Bruce and (B) Kurt
Wesley, they expanded the three stage model (C) Both A & B
into a seven stage model representing the (D) All of these
consulting process. 59. ________first articulated the principle of
(A) Seven stages general system theory in 1950.
(B) Six box (A) Ludwig von Bertalanffy
(C) Both A & B (B) Kurt
54. Burke–Litwin model of____________ per- (D) All of these
formance, developed by Warner Burke and 60. ________were the first to apply the open
George Litwin. system theory to organisation in 1966.
(A) Organisational (A) Ludwig von Bertalanffy
(B) Individual (B) Ketz and Kahn
55. Which model shows how to create the first 61. _____________are input –throughout-out-
order and second order change which the put mechanism.
authors call? (A) Organisation Climate
(A) Transactional change (B) Open System
(B) Transformational change (C) Both A & B
(D) All of these
62. ______of open system are preamble, in that
56. People perception and attitude about the permit exchange of information, resources
organisation-whether it is good or bad place and energy between system and environ-
to work, friendly, hard-working and easy- ment.
going and so worth. (A) Boundaries
(A) Transactional change (B) Open System
(B) Organisation climate (C) Both A & B
(D) All of these 63. Two major variation open system theory are
57. __________ is defined as deep seated as- (A) Socio-technical system theory
sumption, values belief that are enduring, (B) Open system planning
often unconscious and difficult to change.
(C) Both A & B
(A) Organisation climate
(D) All of these
(B) Organisation culture
64. Developed by Eric Trist, Fred Emery and
(C) Both A & B
other in Tavistock Institute in the 1950
(D) All of these
(A) Socio-technical system theory
58. _______purpose that intervention directed
(B) Open system planning
towards the leadership mission strategy, and
(C) Both A & B
organisational culture produce transforma-
(D) All of these
65. _____is the principle conceptual foundation (A) Role Negotiation
for effort in work redesign and organisa- (B) RAT
tional restructuring, to active segment today. (C) Responsibility Charting
(A) Socio-technical system theory (D) All of these
(B) Open system planning 72. Training in organisation can be used as both
(C) Both A & B _______and proactive approach.
(D) All of these (A) Reactive
66. ________creates the learning organisation (B) active
according to peter senge. (C) Both A & B
(A) Socio-technical system theory (D) None of these
(B) Open system Thinking 73. _____is proactive in those instances when
(C) Both A& B organisation foresee some coming change
(D) All of these and train its employee in advance to cope
67. ________is to give someone power, which with the changes.
is done by giving individual authority to (A) Reactive
make decision, to contribute their idea, to (B) Training
exert influence and to responsible. (C) Both A & B
(A) Empowerment (D) None of these
(B) Open system thinking 74. Training is a part of _______which basically
(C) Both A & B comprises of training, education and devel-
(D) All of these opment.
68. Team and teamwork’s are part of the foun- (A) HRD
dation of (B) Training
(A) Empowerment (C) Both A & B
(B) OD (D) None of these
(C) Both A & B 75. The importance of learning was put forward
(D) All of these by Confucius (551-479 BC) in these words
69. Two fundamental belief in OD includes “without learning, the wise become foolish,
(A) Work team is the building block in by learning the foolish become wise”
organisation (A) Indian philosopher
(B) Team must manage their culture, pro- (B) Chinese philosopher
cesses system and relationship if they (C) Both A & B
effective (D) None of these
(C) Both A& B 76. In 1990 __________popularised the “learn-
(D) All of these ing organisation” in the Fifth discipline: The
70. Which OD intervention was designed to im- art and practice of the learning organisation.
prove the team performance for example? (A) Taylor
(A) Team building & intergroup team-build- (B) Peter Senge
ing (C) Both A & B
(B) Process consultation (D) None of these
(C) QC & Grid OD 77. Training is more __________ it emphasizes
(D) All of these informal and predictable response to
71. Which OD techniques was designed to im- standard guidance and instruction
prove the team performance for example reinforced by practice and repetition changes
in the individual.
Elective II 671
(A) Organic 84. The transitional model of training was given
(B) Mechanistic by
(C) Both A & B (A) F.W. Taylor
(D) None of these (B) Harry Taylor
78. Education is more __________ it brings (C) Both A & B
about less predictable changes in the indi- (D) None of these
vidual. 85. __________ as describe the double loop of
(A) Organic corporate strategy and learning. The inner
(B) Mechanistic loop is the systematic training model, the
(C) Both A & B outer loop is described as a crafted strategy
(D) None of these (A) F.W. Taylor
79. Obstacles of the successful training (B) Harry Taylor
programme is/are (C) Both A & B
(A) Social and cultural factors (D) None of these
(B) Political factors 86. The Ashridge model “management for the
(C) Financial & personal factors future”. In this model that training activity
(D) All of these within the organisation can be considered
the three activity that is
80. System model of training steps is/are
(A) A fragmented approach
(A) Analyse & design
(B) A formalised approach
(B) Develop & implement
(C) A focused approach
(C) Evaluate
(D) All of these
(D) All of these
87. The ten role of management and training im-
81. Training system model consist of subparts plication was given by Hanri Mintberg. The
that are interpersonal role include
(A) Input (A) Figurehead (B) Liaison
(B) Transformational process (C) Leader (D) All of these
(C) Output
88. Which of the following is/are informational
(D) All of these roles?
82. _____________is concerned with the iden- (A) Monitor
tification of training requirement based on
(B) Disseminator
the analysis of job performance requirement
(C) Spokesperson
data obtained from the experts in the job to
be performed. (D) All of these
(A) Input 89. Decisional role includes
(B) Instructional system development (A) Entrepreneur
(C) Output (B) Disturbance handler
( D) All of these (C) Resource allocator
(D) All of these
83. The phases of the (ISD) instructional system
development model is/are 90. The Six C’s of change are
(A) Analyse (A) Commitment & Cognizance
(B) Design (B) Competence & Coordination
(C) Development (C) Communication & Cooperation
(D) All of these (D ) All of these
91. The process of change through training was (B) Normative re-educative strategy
given by Kurt Lewin. These stages are (C) Power coercive strategy
(A) Unfreezing (B) Moving (D) All of these
(C) Refreezing (D) All of these 99. _______people are rational being and will
92. Collateral organisation was given by follow their self interest –once it is reveled to
(A) Dale and Zand them. Successful change is based on the
(B) Kurt communication of information and the of-
(C) Both A & B fering of incentives.
(D) All of these (A) Empirical rational
(B) Normative re-educative strategy
93. __________developed what they called the
“Generic parallel learning structure”. (C) Power coercive strategy
(A) Bushe & Sahni (D) All of these
(B) Kurt 100. The people are social being and will adhere
(C) Both A & B to cultural norms and values. Successful
change is based on redefining and reinter-
(D) All of these
preting existing norms and values and de-
94. The best way to initiate change structure in veloping commitments to new ones
large Bureaucratic organisation is
(A) Empirical rational
(A) Parallel learning structure (B) Normative re-educative strategy
(B) Normative reductive (C) Power coercive strategy
(C) Applied behavioural Sciences (D) All of these
(D) Action Research
101. _________based on the assumption that the
95. _______involves three processes: data col- change is compliance of those who have less
lection, feedback of the data to the client power with the desire of those who have less
member and action planning. power of those who have more power. Suc-
(A) Parallel learning structure cessful change is based on the exercise of
(B) Normative reductive authority and imposition of sanction.
(C) Applied behavioural sciences (A) Empirical rational
(D) Action research (B) Normative re-educative strategy
96. ________ of payment recognises that indi- (C) Power coercive strategy
viduals are concerned about the money paid (D) All of these
to them and also the relationship of this 102. The root of the ________go back the manu-
amount to what others are paid. facturing industries of Japan in the late of
(A) Inequity approach 1940 and early 1950.
(B) Equity approach (A) QC (B) JIT
(C) Both A & B (C) Gemba (D) None of these
(D) None of these 103. Types of Benchmarking includes
97. Chin and benne describe the (A) Financial benchmarking
(A) A Normative re-educative strategy (B) Process benchmarking
(B) Parallel learning (C) Performance benchmarking
(C) Applied behavioural sciences (D) All of these
(D) Action research 104. The initiating firm focuses its observation
98. Chin and benne describe three type of strat- and investigation of business processes with
egy that is Chin and a goal of identifying and observing the best
(A) Empirical rational practices from one or more benchmark firms
Elective II 673
(A) Financial benchmarking 110. Process of collecting, analysing and relat-
(B) Process benchmarking ing energy performance data of comparable
(C) Performance benchmarking activities with the purpose of evaluating and
(D) All of these comparing performance between or within
entities
105. In __________ performing a financial analy-
(A) Financial benchmarking
sis and comparing the results in an effort to
assess your overall competitiveness and pro- (B) Energy benchmarking
ductivity. (C) Functional benchmarking
(A) Financial benchmarking (D) Product benchmarking
(B) Process benchmarking 111. ______________embraces everything from
(C) Performance benchmarking staffing and productivity to office flow and
(D) All of these analysis of procedures performed.
106. ___________allows the initiator firm to as-
sess their competitive position by compar- (B) Energy benchmarking
ing products and services with those of tar- (C) Operational benchmarking
get firms. (D) Product benchmarking
(A) Financial benchmarking 112. Benchmarking process benefits includes
(B) Process benchmarking (A) Competitive advantage
(C) Performance benchmarking (B) Process improvement
(D) All of these (C) Personnel retention
107. ___________ is the process of designing (D) All of these
new products or upgrades to current ones. 113. According to _______________ any process
This process can sometimes involve reverse which does not lead to customer satisfac-
engineering which is taking apart competition is referred to as a defect and has to be
tors products to find strengths and weak- eliminated from the system to ensure supe-
nesses. rior quality of products and services.
(A) Financial benchmarking (A) Competitive advantage
(B) Process benchmarking (B) Six sigma
(C) Performance benchmarking (C) Personnel retention
(D) Product benchmarking (D) All of these
108. __________ involves observing how others 114. Following are the two six sigma methods
compete. This type is usually not industry (A) DMAIC
specific, meaning it is best to look at other (B) DMADV
industries.
(C) Both of these
(D) None of these
(B) Strategic benchmarking
115. Cost of time spent on conducting interviews
(C) Performance benchmarking
& selecting a candidate for ________ is
(D) Product benchmarking called Replacement cost.
109. A company will focus its benchmarking on (A) Replacement
a single function to improve the operation (B) Equity approach
of that particular function
(C) Both A & B
(D) None of these
(B) Strategic benchmarking
116. What is the main elements of Six Sigma:
(C) Functional benchmarking
(A) Teamwork
(D) Product benchmarking
(B) Personal Discipline (B) Mark D. Hann
(C) Improved Morale ( C) Harrison
117. ___________means to Organise. Research 122. “Quality of Work Life is a process of joint
says that employees waste half of their pre- decision making, collaborations and build-
cious time searching for items and impor- ing mutual respect between management
tant documents. Every item should have its and employees.” This definition was given
own space and must be kept at its place only. by
(A) SEIRI (Sort) (A) B. Mahadevan
(B) SEITON (Straighten) (B) D.S. Cohan
(C) SEISO (Scrub) (C) Harrison
(D) SEIKETS (Systematise) (D) All of these
118. _________stands for Sort Out. According to 123. According to N.Q. Herrick and M. Maccoby
Seiri, employees should sort out and principles of quality of work life includes
organise things well. Label the items as “Nec- (A) The principle of security
essary”, “Critical”, “Most Important”, “Not (B) The principle of equity
needed now”, “Useless and so on.
(C) The principle of individualism
(A) SEIRI (Sort)
(D) All of these
(B) SEITON (Straighten)
124. The McKinsey 7s model involves seven in-
(C) SEISO (Scrub)
terdependent factors which are categorised
(D) SEIKETS (Systematise)
as either “hard” or “soft” elements
119. Who said,” A system of management based (A) McKinsey 7s (B) TQM
on a commitment to the customer’s total sat-
(C) Both of these (D) None of these
isfaction understanding and improving the
organisations processes, employee involve- 125. _________elements are easier to define or
ment and data based decision making” identify and management can directly in-
(A) Juran fluence them. These are strategy statements;
organisation charts and reporting lines; and
(B) Mark D. Hann
formal processes and IT systems.
(C) Deming
(A) Hard (B) Soft
(D) All of these
120. TQM can be defined as “ an organisation
wide effort to develop systems, tools, tech- 126. ___________ elements, on the other hand,
niques, skills and the mind set to establish a can be more difficult to describe, and are less
quality assurance system that is responsive tangible and more influenced by culture.
to the emerging market needs”. (A) Hard (B) Soft
(A) B. Mahadevan ( C) Both of these (D) None of these
(B) Mark D. Hann 127. The “Hard Elements “of the McKinsey 7s
(C) Deming model involves
(D) All of these (A) Strategy (B) Structure
121. ”Quality of Work Life is the degree to which (C) Systems (D) All of these
work in an organisation contributes to ma- 128. The “Soft Elements “of the McKinsey 7s
terial and psychological well being of its model involves
members.” This definition was given by (A) Shared values (B) Skills
(A) B. Mahadevan (C) Style (D) All of these
Elective II 675
129. ____________called “superordinate goals” (A) National renewal fund
when the model was first developed, these (B) E-HR
are the core values of the company that are (C) Employee relocation assistance program
evidenced in the corporate culture and the (D) All of these
general work ethic.
137. ______ aims at helping employees of an
(A) Shared values (B) Skills organisation relocate to a new branch in an
( C) Style (D) All of these easy convenient manner.
130. In this staffing policy the best and the most (A) National renewal fund
competent individuals hold key positions (B) E-HR
irrespective of the nationalities. (C) Employee relocation assistance program
(A) Ethnocentric (B) Geocentric (D) All of these
(C) Polycentric (D) All of these
138. HRM practice in MNCs are
131. In ___________ key management positions (A) Globalisation
are filled by the parent country individuals.
(B) Changing Demographic of workforce
(A) Ethnocentric (B) Geocentric
(C) Workforce diversity
( C) Polycentric (D) All of these
(D) All of these
132. In _________ staffing policy the host coun-
139. Changing Demographic of workforce factors
try nationals manage subsidiaries whereas
are
the headquarter positions are held by the
parent company nationals. (A) Dual career couple
(B) Younger employees
(A) Ethnocentric (B) Geocentric
(C) Polycentric (D) All of these (C) Increasing working mothers
(D) All of these
133. In _______ staffing policy the best and the
most competent individuals hold key posi- 140. _________means employees of an organisa-
tions irrespective of the nationalities. tion differ from each other’s various catego-
(A) Ethnocentric (B) Geocentric ries of employee bring their own skill, atti-
tudes motives and others personal charac-
(C) Polycentric (D) All of these
teristics.
134. “BPR is the fundamental rethinking and (A) Work force diversity
radical redesign of business processes to
(B) Younger employees
achieve dramatic improvements in critical
contemporary measures of performance, (C) Increasing working mothers
such as cost, quality, service, and speed.” (D) All of these
(A) McKinsey 7s 141. What is meant by the acronym HPWS?
(B) Business Process Re-Engineering (A) High performance work system
(C) Both of these (B) High performance wage system
135. HRM practice in MNCs are (D) None of these
(A) Globalisation 142. Who is not associated with human devel-
(B) Changing Demographic of workforce opment index
(C) Workforce diversity (A) Mahabub-ul-Huq
(D) All of these (B) Manmohan Singh
136. ______will benefit the workers affected by (C) Meghnad Desai
industrial restructuring modernisation and (D) All of these
closure of the unit.
143. Who introduced quality circle in India 150. According to whom there is a much wider
(A) P.V. Rao calibre of people applying for jobs than in
(B) Pareek years gone by?
(C) Dhararani P. Sinha (A) Michael E. Porter
(D) S.R. Udpa (B) Charles Babbage
144. In which public sectors organisation qual- (C) Head hunters
ity circle was first introduced in India (D) All of these
(A) HAL (B) BEML 151. Life and Medical insurance or reimburse-
(C) BHEL (D) HMTL ment of medical bills is considered as a part
of
145. Which is the not characteristics of griev-
ances (A) Perks
(A) Factual (B) Fabricated (B) Compartmentalisation
(C) Disguised (D) Imaginary (C) Managerial competence
(D) All of these
146. Six sigma was first introduced in
(A) Toyota (B) Motorola 152. In profit-sharing plan, the proportion of
profits to be distributed among the employ-
(C) Sony (D) Ford
ees is determined :-
147. Which of the following factors are included (A) Perks
in the calculation of human development
(B) In Advance
index
(C) Managerial competence
(A) Life expectancy
(D) All of these
(B) Adult literacy
(C) Decent standard of living 153. ________ is necessary to calculate Dearness
Allowance in Payroll process.
(D) All of these
(A) Cost of Living Index
148. Who introduced the concepts of MBO
(B) Dearness Allowance
(A) Taylor
(C) Managerial competence
(B) Peter Drucker
(D) All of these
(C) Keith device
154. When the cost of living increases, workmen
(D) All of these
and trade unions demanded to
149. The concepts of quality circle is a brain child (A) Decrease the wage
given by
(B) Increase the wage
(A) Ishikawa Japanese engineer
(C) Both A & B
(B) Peter drucker
(D) None of these
(C) Keith device
(D) All of these
Elective II 677
ANSWER KEY
1. (B) 2. (C) 3. (B) 4. (A) 5. (D) 6. (D) 7. (A) 8. (A) 9. (C) 10. (C)
11. (D) 12. (C) 13. (C) 14. (A) 15. (B) 16. (B) 17. (B) 18. (B) 19. (A) 20. (B)
21. (C) 22. (B) 23. (B) 24. (A) 25. (B) 26. (B) 27. (B) 28. (C) 29. (B) 30. (A)
31. (A) 32. (B) 33. (B) 34. (D) 35. (A) 36. (D) 37. (C) 38. (B) 39. (B) 40. (D)
41. (D) 42. (C) 43. (B) 44. (B) 45. (D) 46. (D) 47. (D) 48. (B) 49. (D) 50. (D)
51. (D) 52. (A) 53. (A) 54. (C) 55. (C) 56. (B) 57. (B) 58. (A) 59. (A) 60. (B)
61. (B) 62. (B) 63. (C) 64. (C) 65. (A) 66. (A) 67. (A) 68. (B) 69. (C) 70. (D)
71. (D) 72. (A) 73. (B) 74. (A) 75. (B) 76. (B) 77. (B) 78. (A) 79. (D) 80. (D)
81. (D) 82. (B) 83. (D) 84. (B) 85. (B) 86. (D) 87. (D) 88. (D) 89. (D) 90. (D)
91. (D) 92. (A) 93. (A) 94. (A) 95. (D) 96. (B) 97. (A) 98. (D) 99. (A) 100. (B)
101. (C) 102. (B) 103. (D) 104. (B) 105. (A) 106. (C) 107. (D) 108. (B) 109. (C) 110. (B)
111. (C) 112. (D) 113. (B) 114. (C) 115. (A) 116. (D) 117. (B) 118. (A) 119. (A) 120. (A)
121. (C) 122. (B) 123. (D) 124. (A) 125. (A) 126. (B) 127. (D) 128. (D) 129. (A) 130. (D)
131. (A) 132. (C) 133. (B) 134. (B) 135. (D) 136. (A) 137. (C) 138. (D) 139. (D) 140. (A)
141. (B) 142. (B) 143. (D) 144. (C) 145. (B) 146. (B) 147. (D) 148. (B) 149. (A) 150. (C)
151. (A) 152. (B) 153. (A) 154. (B)
ELECTIVE LABOUR LEGISLATION
PRINCIPLE OF LABOUR LEGISLATION

1. Social Justice. Ideal condition in which all members of a company have the same basic rights,
security, opportunities, obligations and social benefits. Social legislation: Laws aimed at
promoting the social functioning of individuals and groups and at protecting their rights.
2. Social Equity. Legislation based on social justice prescribes a definite standard for adoption
in future. Such standard is forced after taking into consideration the past and present
circumstances. Once this standard is fixed by legislation it cannot be changed unless the
circumstances and conditions so warrant.
3. National Economy. While framing the labour law the general economic situation of the country
has to be kept in mind so that object may not be defeated.
4. International Uniformity. International uniformity is another principle on which labour laws
are based. This important role played by international organisation in this connection is
praiseworthy. This organisation aims at securing minimum uniform standard in respect of all
labour matters.
FACTORS & FORCES INFLUENCES THE GROWTH OF LABOUR

LEGISLATION IN INDIA
The factors which are specific to India, in additions to those mentioned above, may be discussed in
three heads.
 Influence of colonial rule.
 Struggle for national emancipation and the adoption of Indian constitution in 1950.
 Old and archaic basis of the Indian social system.
1. Influence of colonial Rule. The conditions of life and labour in the early periods of
industrialisation in India will extremely rigorous – hours of work were excessive and the
industrial labour drawn from the rural areas was severally exploited. The British colonial rule
in this country was primarily interested in protecting the workers.
It is well known that the early factory and labour legislation in India, resulted from the need
for protecting the interests of the foreign industrialist and investors. In the tea plantations of
Assam and Bengal, where life and work became extremely intolerable, workers started deserting
their place of work for their village homes.
2. Struggle for national emancipation and the adoption of Indian constitution in 1950. The
struggle for national emancipation from the colonial rule necessitated the welding together of
the various sections of the Indian populations. In orders that the struggle could take roots and
become a mass movement., the workers, the peasents, the kissan and others downtrodden
section of the Indian populations, including the untouchable and the backward classes had
to be aroused and enthused with the dreams of a better future after independence. The struggle
(678)
Elective III 679
for national independence picked up socialist and communist influence generated by the
Russian revolutions, and become very closely with interest of the workers and peasant,
industrial workers were organised trade unions, and peasant were encouraged to form their
own organisation. The organised industrial workers demanded improvement in their working
condition. The Indian trade union act was enacted in 1926 in response to the demand of the
Indian trade union movement supported by nationalist leaders. The appointment of the royal
commission on labour was in 1929. The resolution elaborated a number of right of labour,
which were incorporated in the Indian constitutions, adopted in 1950.
3. Old and archaic basis of the Indian social system. The old and archaic Indian social structure
and practices have deeply influenced social legislation in India. It is well known that the
belief, custom and social practices, originating in the social need of a particular time, become
outdated their use. The older the society, the more widespread such practices, breeding injustice
and social evils. A modern welfare state which aim at creating a just social order has to act
against such practices. National integration are demands that such beliefs and practices that
cause social conflicts shatter social harmony and lead to moral degradations be banished as
quickly as possible. A few of such customs and tradition which have demanded and continue
to demand immediate attention are the following :
(i) The practice of child marriage (ii) The dowry system (iii) Subordination and suppression of
the right of woman. (iv) caste system resulting in untouchability and social economic
backwardness of many caste and community (v) slavery, indentured, forced and boned and
beggar labour.
These problem have received attention of the state and laws have been enacted against them,
through many of them still continue to fester the body politics of India and demand further
corrective measures.
LABOUR LEGISLATION IN INDIA
The Factories Act, 1948

The Factories Act, 1948 has been enacted to consolidate and amend the law regulating the workers
working in the factories. It extends to whole of India and applies to every factory wherein 20 or more
workers are ordinary employed. Since the aim and object of the Act is to safeguard the interest of
workers and protect them from exploitation, the Act prescribes certain standards with regard to safety,
welfare and working hours of workers, apart from other provisions.
Factory means any premises including the precincts thereof where ten or more persons are working
in any manufacturing process being carried on with aid of power and where twenty or more workers
are working without the aid of power.
Employee State Insurance Act, 1948

The Employees Slate Insurance Act (ESI Act) was enacted with the object of introducing a scheme of
health insurance for industrial workers. The scheme envisaged by it is one of compulsory State Insurance
providing for certain benefits in the event of sickness, maternity and employment injury to workmen
employed in or in connection with the work in factories other than seasonal factories. The ESI Act,
which has replaced the Workmen’s Compensation.
Workman Compensation Act, 1923

The Act applies to any person who is employed otherwise than in a clerical capacity, in railways
factories, mines, plantations, mechanically propelled vehicles, loading and unloading work on a
ship, construction, maintenance and repairs of roads and bridges, electricity generation, cinemas,
catching or trading of wild elephants, circus, and other hazardous occupations and other employment
specified in Schedule II to the Act, Under Section 2(3) of the Act, the State Governments are empowered
to extend the scope of the Act to any class of persons whose occupations are considered hazardous
after giving three months’ notice in the official gazette. The Act, however, does not apply to members
serving in the Armed Forces of Indian Union, and employees covered under the provisions of the
Employees’ State Insurance Act 1988 as disablement and dependents’ benefit is available under this
Act.
Maternity Benefit Act, 1961

Prior to the enactment of the Maternity Benefit Act, of 1961 there were in force several central and State
Maternity Benefit Acts in the country. But there was no uniformity in their provisions for all women
workers in the country. It is true that its object was achieved by the enactment of the Employees’ State
Insurance Act of 1948, which superseded the provisions of several Maternity Benefit Acts. But the
Employees’ State Insurance Act did not cover all women workers in the country. The Maternity Benefit
Act of 1961 was therefore passed to provide uniform maternity benefit for women workers in certain
industries not covered by the Employees’ State Insurance Act.
Introduction
The object of maternity leave and benefit is to protect the dignity of motherhood by providing for the
full and healthy maintenance of women and her child when she is not working. With the advent of
modern age, as the number of women employees is growing, the maternity leave and other maternity
benefits are becoming increasingly common. But there was no beneficial piece of legislation in the
horizon which is intended to achieve the object of doing social justice to women workers employed in
factories, mines and plantation.
An Act is to regulate the employment of women in certain establishment for certain period before
and after child-birth and to provide for maternity benefit and certain other benefits.
Object
To protect the dignity of motherhood and the dignity of a new person’s birth by providing for the full
and healthy maintenance of the woman and her child at this important time when she is not working.
The Trade Union Act, 1926

The law relating to the registration and protection of the Trade Unions is contained in the Trade
Unions Act, 1926 which came into force with effect from 1st June 1927. The Act extends to the whole of
India except the State of Jammu and Kashmir.
In common parlance, Trade Union means an association of workers in one or more occupations.
Its object is the protection and promotion of the interests of the working class. Trade Unions have a
home grown philosophy based on workers’ experience and psychology. It grows out of the workers’
day-to-day experience.
Object
The objective of trade union is, any organisation having minimum number of workers or employees in
accordance with the trade union act 1926, having right to form trade union in their organisation and
also have right to elect members of trade union. Trade union is having Right, to protect workers
against exploitation by employer, to represent the grievance of employees on behalf of them to the
management, to protect rights of the workers provided by the employment or labour laws, to take
participation in management for decision-making in connection to workers and to take disciplinary
action against the worker who commits in-disciplinary action.
Elective III 681
Industrial Employment Standing Order Act, 1946
Introduction of ‘The Industrial Employment (Standing Orders)
Earlier, the economic law of supply and demand in the labor market was existed between employers
and workers as a mutually beneficial deal. The mutual bargain was treated as such grants, as the
terms and conditions of employment for workers are being kept safe. They had an abiding confident in
the unity of this law. But as the law work, their faith has proven incorrect. Workers later found that
they have not adequately processed fair bargaining power to secure terms and conditions of their
service; they organise themselves into trade unions and began to emphasize collective bargaining
with the employer. With the advent of trade unions and collective bargaining, new problems began
create to maintain industrial peace and production for the society. Workers began to put forth their
demands. The recognition that while, such raw a deal been presented to workers by employers, which
was not able to define their terms of service, and was sure to be in a situation of industrial conflict, the
Legislature stepped sought to introduce a Industrial Employment (Standing Orders) Bill, 1946.
Statement of Objects and Reasons
Experience has shown that ‘standing orders’ defining the conditions of recruitment, discharge,
disciplinary action, holidays, leave, etc., go a long way towards minimising friction between the
management and workers in industrial undertakings. Discussion on the subject at the tripartite
Indian Labour Conference revealed a consensus of opinion in favor of legislation. The Bill accordingly
seeks to provide for the framing of ‘standing orders’ in all industrial establishments employing one
hundred or more workers. In the first instance, the Act will apply to the categories of industrial
establishments specified in clause (2}(e), which include, besides factories and railways, mines, quarries
and oil fields, tramway or motor, omnibus services, docks, wharves and jetties, inland steam vessels,
plantations and workshops.
Government will be competent to extend the Act to other classes of industrial establishments or to
grant exemptions where necessary, by notification. Within 6 months from the date on which the Act
becomes applicable to an industrial establishment the employer is required to frame draft ‘standing
orders’ and submit them to the Certifying Officer for certification. The draft should cover all the
matters specified in the Schedule to the Act and any other matter that Government may prescribe by
rules. The Certifying Officer will be empowered to modify or add to the draft standing orders so as to
render them certifiable under the Act. It will not be his function (nor of the Appellate Authority) to
adjudicate upon their fairness or reasonableness. There will be a right to appeal against the decisions
of the Certifying Officers.
The Industrial Disputes Act, 1947

The objective of the Industrial Disputes Act is to secure industrial peace and harmony by providing
machinery and procedure for the investigation and settlement of industrial disputes by negotiations.
This act deals with the retrenchment process of the employees, procedure for layoff, procedure and
rules for strikes and lockouts of the company.
Industrial Disputes have adverse effects on industrial production, efficiency, costs, quality, human
satisfaction, discipline, technological and economic progress and finally on the welfare of the society.
A discontent labour force, nursing in its heart mute grievances and resentments, cannot be efficient
and will not possess a high degree of industrial morale. Hence, the Industrial Dispute Act of 1947, was
passed as a preventive and curative measure.
Scope and Object
The Industrial Dispute Act of 1947, came into force on the first day of April, 1947. Its aim is to protect
the workmen against victimisation by the employers and to ensure social justice to both employers
and employees. The unique object of the Act is to promote collective bargaining and to maintain a
peaceful atmosphere in industries by avoiding illegal strikes and lock outs. The Act also provides for
regulation of lay off and retrenchment. The objective of the Industrial Disputes Act is to secure industrial
peace and harmony by providing machinery and procedure for the investigation and settlement of
industrial disputes by negotiations.
Minimum Wages Act, 1948

In this unit we are going to discuss on “Minimum wages Act 1948”. According to the Act, the Act
enables the Central and State Government to fix minimum rates of wages payable to employees in a
selected number of ‘sweated’ industries. There are certain provisions under the Act. You will get a fair
idea on the important provisions of the Act while going through this unit.
Object and Scope
The main objective of this Act, is fixing a minimum rate of wages in number of industries where the
labours are not organised and sweated labours are most dominant. The Act aims at preventing the
exploitation of workers or labours in some industries, for which, the appropriate Government is
empowered to take steps to prescribe minimum rates of wages in certain employment.
The Minimum Wages Fixing Machinery convention was held at Geneva in the year 1928 by ILO
with reference to remuneration of workers in those industries where the, level of wages was substantially
low and the labour was vulnerable to exploitation, being not well organised and having less effective
bargaining power.
This Act may be called the Minimum Wages Act 1948. The Act enables the Central and State
Government to fix minimum rates of wages payable to employees in selected number of ’sweated’
industries. The Act extends to the whole of India.
The Payment of Wages Act, 1936

Object of the Act
The Payment of Wages Act regulates the payment of wages to certain classes of persons employed in
industry and its importance cannot be under-estimated. The Act guarantees payment of wages on
time and without any deductions except those authorised under the Act. The Act provides for the
responsibility for payment of wages, fixation of wage period, time and mode of payment of wages,
permissible deduction as also casts upon the employer a duty to seek the approval of the Government
for the acts and permission for which fines may be imposed by him and also sealing of the fines, and
also for a machinery to hear and decide complaints regarding the deduction from wages or in delay in
payment of wages, penalty for malicious and vexatious claims. The Act does not apply to persons
whose wage is Rs. 10,000 or more per month. The Act also provides to the effect that a worker cannot
contract out of any right conferred upon him under the Act.
Equal Remuneration Act, 1976

The Equal Remuneration Act, 1976 aims to provide for the payment of equal remuneration to men and
women workers and for the prevention of discrimination, on the ground of sex, against women in the
matter of employment and for matters connected therewith or incidental thereto. According to the Act,
the term ‘remuneration’ means “the basic wage or salary and any additional emoluments whatsoever
payable, either in cash or in kind, to a person employed in respect of employment or work done in such
employment, if the terms of the contract of employment, express or implied, were fulfilled”. Nothing in
this Act shall apply: (i) to cases affecting the terms and conditions of a woman’s employment in
complying with the requirements of any law giving special treatment to women; or (ii) to any special
Elective III 683
treatment accorded to women in connection with the birth or expected birth of a child, or the terms and
conditions relating to retirement, marriage or death or to any provision made in connection with the
retirement, marriage or death.
The Central Industrial Relations Machinery (CIRM) in the Ministry of Labour is responsible for
enforcing this Act. CIRM is an attached office of the Ministry and is also known as the Chief Labour
Commissioner (Central) [CLC(C)] Organisation. The CIRM is headed by the Chief Labour Commissioner
(Central).
The main provisions of the Act are:
m No employer shall pay to any worker, employed by him/ her in an establishment, a
remuneration (whether payable in cash or in kind) at rates less favorable than those at which
remuneration is paid by him/ her to the workers of the opposite sex in such establishment for
performing the same work or work of a similar nature. Also, no employer shall, for the purpose
of complying with the provisions of this Act, reduce the rate of remuneration of any worker.
m No employer shall, while making recruitment for the same work or work of a similar nature, or
in any condition of service subsequent to recruitment such as promotions, training or transfer,
make any discrimination against women except where the employment of women in such
work is prohibited or restricted by or under any law for the time being in force.
m Every employer shall maintain such registers and other documents in relation to the workers
employed by him/ her in the prescribed manner.
m If any employer: (i) makes any recruitment in contravention of the provisions of this Act; or
(ii) makes any payment of remuneration at unequal rates to men and women workers for the
same work or work of a similar nature; or (iii) makes any discrimination between men and
women workers in contravention of the provisions of this Act; or (iv) omits or fails to carry out
any direction made by the appropriate Government, then he/ she shall be punishable with
fine or with imprisonment or with both.
m Where an offence under this Act has been committed by a company, every person who at the
time the offence was committed, was in charge of, and was responsible to the company for the
of the offence and shall be liable to be proceeded against and punished accordingly.
The Payment of Bonus Act, 1965

The Payment of Bonus Act, 1965 is the principal act for the payment of bonus to the employees which
was formed with an objective for rewarding employees for their good work for the organisation. It is a
step forward to share the prosperity of the establishment reflected by the profits earned by the
contributions made by capital, management and labour with the employees.
Object
1. To improve statutory liability to pay bonus [reward for good work] in case of profits or losses.
2. To prescribe formula for calculating bonus
3. To prescribe Minimum & Maximum percentage bonus
4. To provide of set off/set on mechanism
5. To provide redress mechanism
IMPLEMENTATION MACHINERY OF LABOUR LAWS

The Ministry of Labour has the responsibility to protect and safeguard the interests of workers in
general and those constituting the deprived and the marginal classes of society in particular with
regard to the creation of a healthy work environment for higher production and productivity. The
Ministry seeks to achieve this objective through enacting and implementing labour laws regulating
the terms and conditions of service and employment of workers. In 1966, the Ministry appointed the
First National Labour Commission (NLC) to review the changes in the conditions of labour since
independence and also to review and assess the working of the existing legal provisions. The NLC
submitted its report in 1969. The important recommendations of NLC have been implemented through
amendments of various labour laws. In the areas of wage policy, minimum wages, employment service,
vocational training, and worker’s education, the recommendations made by the NLC have been largely
taken into account in modifying policies, processes, and programmes of the government. In order to
ensure consistency between labour laws and changes in economic policy, and to provide greater
welfare for the working class, the Second NLC was constituted in 1999.
All labour laws provide for an inspectorate to supervise implementation and also have penalties
ranging from imprisonment to fines. Cases of non-implementation need to be specifically identified
and complaints filed before magistrates after obtaining permission to file the complaint from one
authority or the other. Very few cases are filed, very rarely is any violator found guilty, and almost
never will an employer be sent to prison. Consequently these powers are used by corrupt officials only
for collecting money from employers.
This does not however mean that no labour laws are implemented. On the contrary experience has
proved that the implementation of such laws is directly proportional to the extent of unionisation.
This generalisation is particularly true of the informal sector.
EVALUATION OF LABOUR LEGISLATION

Labour and Labour Welfare
Labour sector addresses multi-dimensional socio-economic aspects affecting labour welfare,
productivity, living standards of labour force and social security. To raise living standards of the work
force and achieve higher productivity, skill up gradation through suitable training is of utmost
importance. Manpower development to provide adequate labour force of appropriate skills and quality
to different sectors is essential for rapid socioeconomic development. Employment generation in all
the productive sectors is one of the basic objectives. In this context, efforts are being made for providing
the environment for self-employment both in urban and rural areas. During the Ninth Plan period,
elimination of undesirable practices such as child labour, bonded labour, and aspects such as ensuring
workers’ safety and social security, looking after labour welfare and providing of the necessary support
measures for sorting out problems relating to employment of both men and women workers in different
sectors has received priority attention.
The Central Board of Workers Education through its regional offices is striving to educate the
workers to help to avoid wasteful expenditure, adopting cost effectiveness and by enhancing
productivity of qualitative nature. They have been conducting the following programmes:
m Rural Awareness Programme.
m Functional Adult Literacy Classes.
m Short-term programmes for the unorganised sector to educate them on their rights, ethics and
hygiene.
m Participative Management.
m Orientation Courses for Rural Educators.
m Leadership Development Programme for Rural Workers.
V.V. Giri National Labour Institute, a fully funded autonomous body of the Ministry of Labour,
conducts action-oriented research and provides training to grass root level workers in the trade union
movement, both in the urban and rural areas, and also to officers dealing with industrial relations,
Elective III 685
personal management, labour welfare, etc. The Institute completed the following research projects
during 1999-2000:
m Dynamics of Labour Market: Kerala.
m Women and labour Market.
m Labour laws, contractual parameters and conditions of construction workers.
m Adverse sex ratio and female labour force participation.
m Wage determination in rural labour force markets.
m Information on requirements for rural labour.
The following study was however of utmost significance? Study on payment of wages wholly in
kind and perceptions regarding Mode of payment: A study in selected States”. This Study was
undertaken in pursuance of directions of the Committee of Secretaries at a meeting held on 1st April,
1999 for the purpose of amendment to the Minimum Wages Act, 1948. The study was completed in
four states, viz. Tamil Nadu, Maharashtra, Bihar and Punjab.
Labour Welfare Act

“During the pre-independence period, industrial relations policy of the British Government was one
of laissez faire and also of selective intervention. There were hardly any labour welfare schemes. After
independence, labour legislations have formed the basis for industrial relations and social security.
These legislations have also provided machinery for bipartite and tripartite consultations for settlement
of disputes.
Soon after independence, the government at a tripartite conference in December 1947 adopted the
industrial truce resolution. Several legislations, including the following, were enacted to maintain
industrial peace and harmony: Factories Act, 1948, Employees State Insurance Act, 1948 and Minimum
Wages Act, 1948. The payment of bonus act was passed in 1965.
In the early 1990s, the process of economic reforms was set in motion when the government
introduced a series of measures to reduce control on industries, particularly large industries. The
workers have opposed economic liberalisation policy for fear of unemployment while entrepreneurs
have welcomed it in the hope of new opportunities to improve Indian industries. The new economic
policy has directly affected industrial relations in the country, because the government has to play a
dual role, one of protecting the interest of the workers, and second to allow a free interplay of the
market forces. Economic reforms, by removing barriers to entry, have created competitive markets.
Fiscal stabilisation has resulted in drastic reduction in budgetary support to the public sector
commercial enterprises while exposing these enterprises to increased competition from private sector.
Labour and Labour Welfare sub-sector consists of six main programmes viz. Labour Administration,
Rehabilitation of bonded labour, Assistance to Labour Co-operatives, Craftsmen training programme,
Apprenticeship training programme, Employment Services and Sanjay Gandhi Swavalamban Yojana.
Manpower, employment policy and labour welfare in India: post-independence developments:
Many researches has been done in the following themes, such as
1. Manpower: trends and magnitude.
2. Employment policies and programmes.
3. Labour welfare: legal framework and initiatives.
4. Women workers: legislations and empowerment.
5. Industrial relations and labour laws.
6. Restructuring of labour laws: the great debate.
7. Labour laws and welfare: India and ILO.
8. Labour reforms: India and WTO. II. India’s Five Year Plans at a glance. III. Edited extracts from
India’s Five Year Plans on employment and labour related matters (I plan to X plan including
mid-term appraisal of the X Plan).
Industrial Health and Safety

There are different types of industries like heavy and light engineering, heavy and light chemical
industries, petrochemicals, pesticides, fertilizers, textile and Electronic Industries. All these pose their
own potential hazards, which may cause acute and chronic side effects on the health of the workers.
In India, the chemical factories which include heavy chemical complexes or small chemical factories
which may produce acute effects on the health of the workers to such an extent that it may result in
death. Pesticides spilled on the body of the workers are equally dangerous.
Improvement of Communication, Mobility of Factories Inspectors

For the quick transmission of messages relating to factory accidents, gas leaks, fires and disasters in
the area a broad network of office/residential telephones is an essential-requisite for the Factory
Inspector, the concerned Dy. Chief Inspector of Factories, the Chief Inspector and from C.I.F. to higher
authorities. Quick transmission of such messages to the area Factory Inspector and others not only
facilitates a prompt inquiry into the mishap and its causes but also enables the concerned authorities
to bring into action the various control measures in the case of disaster. An outlay for Tenth Five Year
Plan 2002-2007 is Rs. 150.00 lakh. Out of that an outlay Rs. 5.00 lakh is provided for Annual Plan
2002-2003.
Tribal sub-plan area
Conclusion and Main Thrust Areas
(i) Modernisation of Existing Trades.
(ii) Maximum utilisation of Existing Infrastructure.
(iii) Creating facilities for Training of Instructors.
(iv) Creation of Post of Training and Placement Officer to facilitate placement of ITI pass-outs and
to promote better interaction with industries.
(v) Implementation of Government decision to established ITIs at each Taluka and promotes
women’s Participation in C.T.S. training.
(vi) Creation of additional Training facilities in the popular trades under Apprentice ship Act,
1961.
PROPOSED CHANGES IN LABOUR LEGISLATION IN INDIA

The proposed changes in following acts:
m The Industrial Disputes Act (ID Act);
m The Trade Union Act;
m The Contract Labour Act; and
m The Factories Act.
m Indian Labour Laws were enacted by the British colonial government and are still more or less
the same. Industry was of the opinion that a law enacted 100 years ago has no relevance
today. Industry felt that despite economic reform in the country, labour policy is unchanged.
Industry wants the ‘fundamental right to manage’ believing that certain groups of organised
workers who constitute only eight percent of the total workforce are overprotected. Industry
considers that employment generation is more important than employment protection.
Industrial representatives admitted that wages in India are low but the productivity of workers
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is very low and thus the labour costs are high. The trade unions quickly demanded to know
the parameters industry uses to judge productivity, as this is a complicated and debatable
issue.
m Trade unions felt that industry and government were deliberately exaggerating the
‘overprotection of certain organised workers’, to divide organised from unorganised workers.
They argued that organised workers with basic rights should not be regarded as overprotected.
It took decades of struggle for them to achieve those rights.
m The Factories Act restricts women working at night. One of the controversial subjects discussed
was amending this act to allow women to work night shifts.
m Industry would like to implement ‘right sizing’, meaning industrial laws should contain
provisions which allow firms to shed workers i.e. downsizing. The ID Act (1947) stipulates
that establishments employing one hundred or more workers may lay off and retrench workers
only with prior permission from government. To industry this is a stumbling block in running
businesses. They want retrenchment and closure to be simplified so that an unprofitable
company should be able to ‘right size’ or close down. Trade unions oppose this as it would
provide employers unrestricted powers to ‘hire and fire’.
m The Budget has proposed that Chapter VB of the Industrial Disputes Act, which stipulates
that employers in specified industrial establishments must obtain prior approval of the
appropriate authority for effecting lay-off, retrenchment and closure, will now apply to
industries employing not less than 1000 workers instead of 100. Also the separation
compensation has been increased from 15 days to 45 days for every completed year of service.
m The only sop for labour is the announcement of Ashraya Bima Yojana, a group insurance
scheme for workers affected by liberalisation. The policy will provide compensation of up to
30 per cent of the last drawn annual pay for a period of one year to workers who lose their jobs.
It will cover all employees drawing a salary up to Rs 10,000 per month. It will be run on no-
profit, no-loss basis.
m A furious CITU general secretary M.K. Pandhe labelled these provisions as “anti-working
class”. According to him, the provision giving companies with 1000 employees freedom to
retrench without government permission will hit workforces hard. “More than 85 per cent of
organised sector has 1000 or less employees and they are going to benefit out of this provision.
There was no need for such announcement when the National Labour Commission is already
dealing with the issue,” he feared. AITUC president J. Chittaranjan called it “indiscriminate
hire-and-fire policy”.
m The Trade Union Act provides that seven or more members of a trade union are required for its
registration. Industry wants to restrict forming unions. The government has already proposed
some changes in the Trade Union Act. One of the major changes would make it compulsory for
a trade union to have a membership of at least ten percent or one hundred, whichever is less.
The trade unions argued that the right to organise is a fundamental right.
m The Contract Labour Act deals with the abolition of contract labour. Under this law local
governments can abolish some contracted labour by creating permanent jobs. To industry this
is state interference in employing labour. It has already happened in steel sector. Moreover,
Maharashtra has already made changes in their Contract Labour Act and also given freedom
to 1000-strong companies to retrench,’’ says he. Chittaranjan feels that “change in the Contract
Labour Act will increase the exploitation of labour, perpetuate and enlarge the denial of equal
wage for equal work in flagrant violation of the Supreme Court decisions.”
IMPACT OF ILO (INTERNATIONAL LABOUR ORGANISATION)

Introduction International Labour Organisation (ILO)
India is a founder member of the International Labour Organisation, which came into existence in
1919. At present the ILO has 175 Members. A unique feature of the ILO is its tripartite character. The
membership of the ILO ensures the growth of tripartite system in the Member countries. At every level
in the Organisation, Governments are associated with the two other social partners, namely the
workers and employers. All the three groups are represented on almost all the deliberative organs of
the ILO and share responsibility in conducting its work. The three organs of the ILO are:
m International Labour Conferences. General Assembly of the ILO meets every year in the
month of June.
m Governing Body. Executive Council of the ILO meets three times in a year in the months of
March, June and November.
m International Labour Office. A permanent secretariat.
The work of the Conference and the Governing Body is supplemented by Regional Conferences,
Regional Advisory Committees, Industrial and Analogous Committees, Committee of Experts, Panels
of Consultants, Special Conference and meetings, etc.
1. International Labour Conference. Except for the interruption caused by the Second World
War, the international Labour Conference has continued, since its first session in 1919 to meet
at least once a year. The Conference, assisted by the Governing Body, adopts biennial
programme and budget, adopts International Labour Standards in the form of Conventions
and Recommendations and provides a forum for discussing social economic and labour
related issues. India has regularly and actively participated in the Conference through its
tripartite delegations.
The Conference has so far had 4 Indian Presidents viz., Sir. Atul Chatterjee (1927), Shri Jagjivan
Ram, Minister for Labour (1950), Dr. Nagendra Singh, President, International Court of Justice
(1970) and Shri Ravindra Verma, Minister of Labour and Parliamentary Affairs (1979). There
have also been 8 Indian Vice Presidents of the International Labour Conference, 2 from the
Government group, 3 from the Employers and 3 from the Workers’ Group. Indians have
chaired the important Committees of the Conferences like Committee on Application of
Standards, Selection Committee and Resolutions Committee.
2. Governing Body. The Governing Body of the ILO is the executive wing of the Organisation. It
is also tripartite in character. Since 1922 Indian has been holding a non-elective seat on the
Governing Body as one of the 10 countries of chief industrial importance. Indian employers
and workers’ representatives have been elected as Members of the Governing Body from time
to time.
Four Indians have so far been elected Chairman of the Governing Body. They are Sir Atul
Chatterjee (1932-33), Shri Shamal Dharee Lall, Secretary, Ministry of Labour (1948-49), Shri
S.T. Merani, Joint Secretary, Ministry of Labour (1961-62) and Shri B.G. Deshmukh, Secretary,
Ministry of Labour (1984-85).
The Governing Body of ILO functions through its various Committees. India is a member of
all six committees of the Governing Body viz. (i) Programme, Planning & Administrative;
(ii) Freedom of Association; (iii) Legal Issues and International Labour Standards;
(iv) Employment & Social Policy; (v) Technical Cooperation and (vi) Sectoral and Technical
Meetings and Related issues.
3. The International Labour Office. The International Labour Office, Geneva provides the
Secretariat for all Conferences and other meetings and is responsible for the day-to-day
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implementation of decisions taken by the Conference, Governing Body etc. Indians have held
positions of importance in the International Labour Office. Special mention must be made of
Shri S.K. Jain who retired as Deputy Director General of the ILO. Shri Gopinath is currently
the Director International Institute of Labour Studies, Geneva.
ILO Area Office, New Delhi

An ILO Branch Office was set up in New Delhi in 1929. The work of the Branch Office consisted of
collecting and disseminating information and maintaining links with the Government of India and
the Organisations of Employers and Workers and generally to publicise the work of ILO among the
Indian audience. With the planned programme of decentralisation, the Branch Office became an Area
Office of ILO in 1970. The Area Office at New Delhi has been changing in its jurisdiction over the
years. It now coordinates technical assistance activities in diverse focus as such as rural Labour,
women workers, employment generation, occupational safety and health, population control, family
welfare, etc. in India and Bhutan.
Active Partnership Policy & Multi-disciplinary Team

One of the major reforms initiated recently is the launching of the “Active Partnership Policy” whose
aim is to bring ILO closer to its constituents. The main instrument for implementation of the policy –
is the multi-disciplinary team, which will help identify special areas of concern and provide technical
advisory services to member States to translate ILO’s core mandate into action. The multi-disciplinary
team for South-Asia is based in New Delhi. It consists of specialists on employment, industrial
relations, workers and employers’ activity, small-scale enterprises and International Labour Standards.
ILO and Child Labour

ILO’s interest in child labour, young persons and their problems is well known. It has adopted a
number of Conventions and Recommendations in this regard. In India, within a framework of the
Child Labour (Prohibition and Regulations) Act, 1986 and through the National Policy on Child
Labour, ILO has funded the preparation of certain local and industry specific projects. In two Kanor
projects, viz. Child Labour Action and Support Programmes (CLASP) and International Programme
on Elimination of Child Labour (IPEC), the ILO is playing a vital role.
The implementation of IPEC programmes in India has certainly created a very positive impact
towards understanding the problem of child labour and in highlighting the need to elimination child
labour as expeditiously as possible. A major contribution of the IPEC programme in India is that it has
generated a critical consciousness among all the 3 social partners for taking corrective measures to
eliminate child labour.
Decent Work
The concept of Decent Work is being propagated by the ILO. It encompasses four strategic objectives:
I. Promotion of Rights at Work. It calls for renewed attention to ILO’s standards, as well as a
fresh look at complimentary means and instruments for achieving this goal.
II. Employment. Creation of greater employment and income opportunities for women and men
as a means to reduce poverty and inequality.
III. Social Protection. This section emphasizes expansion of social security schemes.
IV. Social Dialogue. This emphasizes examining ways of strengthening the institutional capacity
of ILO constituents as well as their contribution to the process of dialogue.
The concept of Decent Work emphasizes that the quantity of employment should not be divorced
from quality of work and stresses that a social and economic system should be evolved to ensure basic
security and employment without compromising workers’ rights and social standards in a highly
competitive world.
Although India agrees that the four strategic objectives are necessary for decent work, this has no
meaning unless we can provide an opportunity to work. Therefore, employment generation should be
the focus of the all ILO programmes and activities. The basic requirement of Decent Work should be to
first ensure work to any potential worker and then all other elements of the decent work concept will
automatically follow. This stand of India was appreciated by other nations as well. India also made
it clear in the meetings of the ILO that the concept of decent work has to be fixed keeping in mind the
conditions of work in the social, economic and cultural context of each country. It cannot be made
applicable uniformly to every country.
Impact of ILO
The ILO (International Labor Organisation) was set up in the year 1919, with an aim to improve the
conditions of labors around the world. India was the founding member of ILO, which has now
expanded its membership to 145 nations. ILO through its conventions and recommendations helps
nations to draw their own set of labor laws for the better treatment of the working class, and the
preservation of their rights. The principal means of action in the ILO is the setting up the International
Labor Standards in the form of Conventions and Recommendations. Conventions are international
treaties and are instruments, which create legally binding obligations on the countries that ratify
them. Recommendations are non-binding and set out guidelines orienting national policies and actions.
Labor Law regulates matters, such as, labor employment, remunerations, and conditions of work,
trade unions, and labor management relations. They also include social laws regulating such aspects
as compensation for accident caused to a worker at work, fixation of minimum wages, maternity
benefits, sharing of the company’s profit by the workers, and so on. Most of these legal instruments
regulate rights and responsibilities of the working people.
The approach of India with regard to International Labor Standards has always been positive.
and administrative measures for the protection and advancement of the interest of labor. To that extent
the influence of ILO Conventions as a standard for reference for labor legislation and practices in
India, rather than as a legally binding norm, has been significant. Ratification of a Convention imposes
legally binding obligations on the country concerned and, therefore, India has been careful in ratifying
Conventions. It has always been the practice in India that we ratify a Convention when we are fully
satisfied that our laws and practices are in conformity with the relevant ILO Convention. It is now
considered that a better course of action is to proceed with progressive implementation of the standards,
leave the formal ratification for consideration at a later stage when it becomes practicable. We have so
far rat.
International Labour Standards – ILO Conventions

The principal means of action in the ILO is the setting up the International Labour Standards in the
form of Conventions and Recommendations. Conventions are international treaties and are
instruments, which create legally binding obligations on the countries that ratify them.
Recommendations are non-binding and set out guidelines orienting national policies and actions.
Pakistan (34), Japan (45), Australia (57), China (20), Malaysia (14), Sri Lanka (39) and USA (14).
The approach of India with regard to International Labour Standards has always been positive.
and administrative measures for the protection and advancement of the interest of labour. To that
extent the influence of ILO Conventions as a standard for reference for labour legislation and practices
in India, rather than as a legally binding norm, has been significant. Ratification of a Convention
Elective III 691
imposes legally binding obligations on the country concerned and, therefore, India has been careful in
ratifying Conventions. It has always been the practice in India that we ratify a Convention when we
are fully satisfied that our laws and practices are in conformity with the relevant ILO Convention. It
is now considered that a better course of action is to proceed with progressive implementation of the
standards, leave the formal ratification for consideration at a later stage when it becomes practicable.
We have so far ratified 39 Conventions of the ILO, which is much better than the position obtaining in
many other countries. Even where for special reasons, India may not be in a position to ratify a
Convention, India has generally voted in favour of the Conventions reserving its position as far as its
future ratification is concerned.
Core Conventions of the ILO
The eight Core Conventions of the ILO (also called fundamental/human rights conventions) are:
m Forced Labour Convention (No. 29)
m Abolition of Forced Labour Convention (No. 105)
m Equal Remuneration Convention (No. 100)
m Discrimination (Employment Occupation) Convention (No. 111)
(The above four have been ratified by India).
m Freedom of Association and Protection of Right to Organised Convention (No. 87)
m Right to Organise and Collective Bargaining Convention (No. 98)
m Minimum Age Convention (No. 138)
m Worst forms of Child Labour Convention (No. 182)
(These four are yet to be ratified by India)
Consequent to the World Sumit for Social Development in 1995, the above-mentioned Conventions
(Sl. No. 1 to 7) were categorised as the Fundamental Human Rights Conventions or Core Conventions
by the ILO. Later on, Convention No.182 (Sl.No.8) was added to the list.
As per the Declaration on Fundamental Principles and Rights at Work and its Follow-up, each
Member State of the ILO is expected to give effect to the principles contained in the Core Conventions
of the ILO, irrespective of whether or not the Core Conventions have been ratified by them.
Under the reporting procedure of the ILO, detailed reports are due from the member States that
have ratified the priority Conventions and the Core Conventions every two years. Under the Follow-
up to the ILO Declaration on Fundamental Principles and Rights at Work, a report is to be made by
each Member State every year on those Core Conventions that it has not yet ratified.
Active Partnership Policy & Multi-disciplinary Team

One of the major reforms initiated recently is the launching of the “Active Partnership Policy” whose
aim is to bring ILO closer to its constituents. The main instrument for implementation of the policy – is
the multi-disciplinary team, which will help to identify special areas of concern and provide technical
advisory services to member States to translate ILO’s core mandate into action. The multi-disciplinary
team for South-Asia is based in New Delhi. It consists of specialists on employment, industrial relations,
workers and employers’ activity, small-scale enterprises and International Labor Standards.
The Effect of ILO on Labour legislation in India
With the growth and expansion of factories and industries in the subcontinent beginning in the mid-
nineteenth century, new avenues for employment were created, resulting in a gradual migration of the
labor force from rural areas to mills and factories located primarily in urban areas. At that time, in the
absence of any state control or organisation of the workers, the employers were less concerned about
the needs of their employees; the work hours were too long, wages much below the subsistence level,
and the workers’ employment conditions were unsatisfactory. The situation led to the enactment of a
number of legislations beginning from the year 1881. These include, inter alia, the Factories Act (1881),
Workmen’s Compensation Act (1923), Trade Unions Act (1926), Trade Disputes Act (1929), Payment
of Wages Act (1936), Maternity Benefit Act (1939), and the Employment of Children Act.
The Factories Act 1881 is the basis of all labor and industrial laws of the country. It contained
provisions even for hours of work of women and workers including that of minimum age for employment
of children. After the International Labor Organisation (ILO) was formed in 1919, this Act was amended
and thereafter repealed, resulting in the promulgation of the Factories Act 1934. It makes provision for
safety, health and hygiene of the workers and special provision for women and juvenile workers. It
also prohibits child labor. It limits work of a child in factories, including the seasonal ones.
Under the Mines Act 1923 which applies to workers employed in mines, the hours of work for
persons employed on surface are limited to ten per day and fifty four per week. The periods of work
including rest interval shall not spread over more than 12 hours in any day. For workers employed
underground, the daily limit is nine hours per day. The Act does not contain provisions as to overtime
work. No worker is to work in a mine for more than six days a week. The Act does not provide for
wages for the weekly rest day.
The government of India set up an enquiry committee in 1926 to ascertain the loophole for
irregularity of payment of wages to industrial workers. The Royal Commission on Labor appointed in
1929 considered the reports and suggestions of the aforesaid enquiry committee and recommended
for enactment for prevention of maladies relating to payment of wages resulting in the promulgation
of the Payment of Wages Act in 1936. It aimed, firstly, at disbursement of actual distributable wages to
workers within the prescribed period and, secondly, to ensure that the employees get their full wages
without any deduction. The Act was passed to regulate the payment of wages to certain classes of
persons employed in industry. The object of the Act obviously was to provide a cheap and speedy
remedy for employees to whom the Act applied inter alia, to recover wages due to them, and for that
purpose, a special tribunal was subsequently created, but due to some inherent defects in the statute
the recovery of decree able wages remained difficult.
m The Weekly Holidays Act of 1942 prescribes one paid holiday a week for persons employed in
any shop, restaurant or theatre (excepting those employed in a confidential capacity or in a
position of management). The government is empowered to grant additional half-day holiday
with pay in a week.
m The Industrial Disputes Act, 1947 came into being on the 1st day of April 1947. The Act
provided for establishment of industrial tribunals by the appropriate government in British
India. It established a full-fledged industrial tribunal for adjudication of industrial disputes
for the first time.
m The Industrial Employment (Standing Orders) Act, 1946 came into operation for the first time
requiring employers in industrial establishments employing 100 or more workmen to define
the terms of employment of workmen in the form of standing orders which should be in
general conformity with the model standing orders incorporated in the Act. The Merchant
Shipping Act, 1923 provided for an agreement between a seaman and the master of the ship
regarding terms of service.
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1. The concept_________ is being propagated (A) Convention No. 98
by the ILO to development of childhood. (B) Convention No. 87
(A) Decent Work (B) Child Labour (C) Convention No. 138
2. __________ encompasses four strategic ob- 7. The major activities of ILO relate to
jectives. (A) Improvement of conditions of work and
(A) Promotion of Rights at Work life
(B) Employment & Social Dialogue (B) Development of human resource and
(C) Social Protection social institutions
(D) All of these (C) Research & Planning
3. _________ emphasizes to examine the ways (D) All of these
of strengthening the institutional capacity 8. The Conventions and recommendation cov-
of ILO constituents as well as their contri- ered a wide variety of areas such as
bution to the process of dialogue. (A) Human rights
(A) Promotion of Rights at Work (B) Employment conditions of work
(B) Employment (C) Industrial relations
(C) Social Dialogue (D) All of these
(D) All of these 9. Which of the following article of the Funda-
4. The concept of ___________ emphasizes mental Right includes Equality of opportu-
that the quantity of employment should not nity for all citizen in matters relating to em-
be divorced from quality of work and stresses ployment or appointment to any office un-
that a social and economic system should der the state?
be evolved to ensure basic security and em- (A) Article 16(1) (B) Article 17(1)
ployment without compromising workers’ (C) Article 19(1) (D) All of these
rights and social standards in a highly com-
petitive world. 10. Which of the following article of the Funda-
mental Right includes Untouchability is
(A) Decent Work (B) Child Labour
abolished and its practices in any form is
(C) Both A & B (D) All of these forbidden the enforcement of any disability
5. ___________provides for the right of work- arising out of untouchability shall be an of-
ers and employers, without any distinction fence punishable in accordance with law.
to establish and join organisations of their (A) Article 16(1) (B) Article 17(1)
own choosing without previous authorisa- (C) Article 19(1) (D) All of these
tion.
11. The__________ labour legislation to protect
(A) Convention No. 98
those workers who are not able to protect
(B) Convention No. 87 their interest on their own and also workers,
(C) Convention No. 138 in particular industries against the hazard-
(D) All of these ous of industrial process
6. ____________ aims to protect the exercise (A) Protection (B) Social justice
of the right to organise and to promote vol- (C) Regulation (D) Welfare
untary collective bargaining.
12. The disabilities and discrimination suffered (C) Laws on wages
by slaves, indentured and migrant labour. It (D) All of these
aims at removing discrimination suffered by 20. Which of the following is a working condi-
particular groups of labour tion legislation?
(A) Protection (B) Social justice (A) Factories act, 1948
(C) Regulation (D) Welfare (B) Shop and Establishment
13. ____________generally seeks to regulate the (C) Mines act
relationship between the employers and (D) All of the above
employees, on the hand workers and their
21. Which of the following is a industrial rela-
associations, on the others.
tion legislation?
(A) Protection (B) Social justice
(A) Industrial Disputes act, 1947
(C) Regulation (D) Welfare
(B) Indian Trade Union act, 1926
14. Social security plan five giants in the path
(C) Industrial employment standing order
of the social progress namely, want, “sick-
act, 1946
ness, “ignorance, “squalor” and “idleness
was given by (D) All of the above
(A) R.K. Das 22. Which of the following is not wages legisla-
(B) Gandhiji tion?
(A) Minimum wages act, 1948
(C) Lord William Beveridge
(D) All of these (B) Payment of wages act, 1936
(C) Payment of Bonus act, 1965
15. Which of the following is not the principle
of social justice? (D) None of the above
(A) Abolitions of servitude 23. Laws on Social Security includes
(B) Freedom of association (A) Worker compensation act, 1923
(C) Collective bargaining (B) Maternity benefit act, 1961
(D) None of these (C) Employee state insurance act, 1948
16. Principle of Social welfare includes
(A) Development of childhood 24. __________refers to that body of laws which
(B) Opportunity of education are enacted to protect & promote the interest
of the working class in society.
(C) Both A & B
(A) Company Law
(D) None of these
(B) Labour Law
17. The term of office of the Canteen Committee
(C) International Law
is _________ years
(A) one (B) two
(C) three (D) four 25. ______covers those laws which intends to
provide to the workman social security ben-
18. Principle of National Economy includes efits during certain contingencies of life
(A) Development of industry (A) Protective labour legislation
(B) Social insurance (B) Regulative labour legislation
(C) Regulation wage payment (C) Social Security legislation
(D) All of these (D) welfare legislation
19. Labour legislation in India includes 26. _________is promoting the general welfare
(A) Laws on working conditions of the workers and improve their living con-
(B) Laws on industrial relations dition.
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(A) Protective labour legislation 34. Which of the following is not the provision
(B) Regulative labour legislation relating to health under factories act 1948?
(C) Social Security legislation (A) Cleanliness
(D) Welfare legislation (B) Disposal of wastage and effluents
27. Who has given four principle of labour leg- (C) Ventilation and temperature
islation ? (D) All of these
(A) R.K. Das (B) J.T. Dunlop 35. Which of the following is the provision re-
(C) Dale Yoder (D) All of these lating to health under factories act 1948?
28. Equal pay for equal work for both men and (A) Dust and fumes
women is highlighted in (B) Artificial humidification
(A) Article 41 (B) Article 43A (C) Lighting and drinking water
(C) Article 45 (D) All of these (D) All of these
29. Which of the following is the principle of 36. Safety provision under factories act is/are
labour legislation? (A) Fencing of machinery
(A) Social justice (B) Self acting machines
(B) Social welfare (C) Casing in new machinery
(C) National economy (D) All of these
(D) All of the above 37. The constitutions of India upholds “Right
30. Which of the following is not included in against exploitation” as a fundamental right
new principle of modern labour legislation? enunciated by the ILO convention in
(A) Protection (A) Article 20 (B) Article 23 (1)
(B) Social justice (C) Article 24 (D) Article 18 (c)
(C) Regulation & welfare 38. The welfare provision under factories act
(D) All of the above 1948 was
31. Which of the following is a new principle of (A) Washing facilities
modern labour legislation? (B) Facilities for storing & drying clothes
(A) International obligation (C) Facilities for sitting
(B) Economic development (D) All of these
(C) Social security & welfare 39. Welfare provision under factories act 1948
(D) All of the above was
32. Young person means a person who is either (A) First aid appliances
a (B) Canteen
(A) Child or Adolescent. (C) Shelter rest room and lunch room
(B) Adolescent (D) All of these
(C) Adult 40. Which one of the following is not a welfare
(D) None of these provision under factories act,1948
33. The state government may also appoint (A) First aid appliances
qualified ___________ as certifying sur- (B) Canteen
geons. (C) Drinking
(A) Child (D) Crèche
(B) Medical practitioners 41. ___________ are to be appointed if organisa-
(C) Adult tion is engaging 500 or more employees.
(D) None of these (A) Welfare officers (B) Safety Officer
42. __________ is to be provided if 30 or more 50. Time allotted for the purpose of washing is
lady employees are engaged. ________ minutes before the end of days
(A) Crèche (B) Canteen work.
(C) First aid (D) None of these (A) 10 (B) 5
43. An adult worker can work upto ______ hrs. (C) 15 (D) All of these
in a day as per factories act, 1948. 51. The first factories act was enacted
(A) 8 (B) 9 (A) 1881 (B) 1895
(C) 10 (D) None of these (C) 1835 (D) 1889
44. __________ is to be provided if engaging 52. _______means a person who has not com-
employees are more than 250 persons. pleted his 15 years of age.
(A) Crèche (A) Child (B) Adolescent
(B) Canteen (C) Adult (D) None of these
(C) First aid 53. One ambulance room in a factory shall be
(D) None of these provided employing more than __________
45. If the factory employs more then 1000 work- workers.
ers, they should appoint qualified_______ (A) 500 (B) 100
to carry out the prescribed duties. (C) 600 (D) None of these
(A) Safety officer (B) Welfare officer 54. There should be provision for shelters, rest
(C) Security officer (D) None of these rooms and lunch room in factories employ-
46. ___________ is allowed for employees if ing more than ______workers.
they work for 20 days in a month. (A) 150 (B) 250
(A) Leave without pay (C) 100 (D) None of these
(B) Sickness Benefit 55. One first aid box in a factory shall be pro-
(C) Leave with wages vided for every _______ workers.
47. The factories employing more than 1000 (C) 100 (D) None of these
workers are required to submit their plan 56. For more than _________workers in a fac-
for approval to a tory, provision of cooling of drinking water
(A) Chief inspector of factory shall be made.
(B) Additional Chief Inspector of Factories (A) 150 (B) 250
(C) Deputy Chief Inspector of Factories (C) 100 (D) None of these
(D) None of these 57. The maximum permissible working hour in
48. Which ILO Convention is concerned with a week for the adult workers are
equal remuneration for equal work (A) 15 (B) 25
(A) Convention No. 100 (C) 48 (D) None of these
(B) Convention No. 87 58. The first factory commission was appointed
(C) Convention No. 138 in
(D) All of these (A) 1875 (B) 1881
49. The workers shall be provided with mini- (C) 1885 (D) 1895
mum ___________ liters of water for every- 59. Working hours for children in factory are
day under the Factories Act. limited to _____hours.
(A) 2 (B) 3.5 (A) 6 (B) 5
(C) 5 (D) 4.5 (C) 4 ½ (D) None of these
Elective III 697
60. For overtime work a workers is entitled a directs its policy, among other things,
wage at the rate of______ his ordinary rate towards securing that there is equal pay for
of wages. both men and woman
(A) Twice (B) Half (A) Article 16(1) (B) Article 39
(C) Thrice (D) None of these (C) Article 19(1) (D) None of these
61. To avoid overcrowding in factories ___ m3 69. Under the Section 41 A of the Factories Act,
of space per workers is required. the Site Appraisal Committee shall be con-
(A) 14.2 (B) 14.3 stituted ________ under the chairmanship
(C) 14.1 (D) None of these of Chief Inspector of Factories.
62. While drafting factories act, 1948 the services (A) Once in 5 Year
of _______were utilised. (B) Once in 2 Year
(A) Sir Wildfrid Garsett (C) Once in 3 Year
(B) Sir William (D) Once in a Year
(C) Taylor 70. To _______ the occupier has to give 60 days
(D) None of these notice to the authorities.
63. The first act was passed on the recommen- (A) Open a factory
dation of the (B) Close down a factory
(A) Factory commission (C) Both of these
(B) Pay commission (D) None of these
(C) Royal commission 71. What is the qualifying service to claim gra-
(D) None of these tuity?
64. A child who is not completed his _____ year (A) 15 years (B) 5 years
is prohibited to work in factory. (C) 10 years
(A) 15 (B) 25 (D) No such prescription
(C) 14 (D) None of these 72. “State shall take step, by suitable legislation
65. Every workers who has worked for a period or in any other ways, to all workers –agri-
of 240 or more in factory during a calendar cultural, industrial otherwise, work, a liv-
years qualified for ing wage, condition of work securing a de-
(A) 3 Years leave (B) Monthly leave cent standard of life and full enjoyment of
leisure and social and culture opportunities“
(C) Annual leave (D) None of these
comes under.
66. __________is required to appoints inspec- (A) Article 39 (B) Article 43
tors for the enforcement of the act by notifi-
(C) Article 45 (D) All of these
cation in the official gazette.
(A) State Government 73. Where males are employed, there shall be at
least one latrine seat for every _____ male
(B) Central Government
workers shall be provided
(C) Both A & B
(A) 20 (B) 50
(D) None of these
(C) 30 (D) 100
67. If the factory employs more than 1000 work-
74. The constitutions of India upholds “The
ers, they should appoint a qualified ______
state shall make provision for securing just
to carry out the prescribed duties.
and humane conditions of work and for ma-
(A) Safety officer (B) Welfare officer ternity relief” the Directive principle of state
(C) Security officer (D) None of these policy enunciated by the ILO convention in
68. Which of the following Articles of the Indian (A) Article 20 (B) Article 42
Constitutions envisages that the state shall (C) Article 24 (D) Article 18
75. The examination of eye sight of certain work- (A) Industrial disputes act, 1947
ers under the factories Act shall be done at (B) Trade union act, 1926
least once in every ________ months. (C) ESI act, 1948
(A) 6 (B) 12 (D) All of these
(C) 18 (D) 24
83. Which of the following benefits provide un-
76. Who is an adult as per factories act der ESI act?
(A) Who has completed 18 years of age (A) Sickness benefit & Medical Benefit
(B) Who has not completed 18 years of age (B) Maternity benefit & Disablement
(C) Both A & B (C) Dependents Benefits Funeral Expense
(D) None of these
(D) All of these
77. A person who has ultimate control over the
84. In which of the following legislation, there
affairs of the factory under factories act,1948
is mention of “Principle employer” and “
is called as
immediate employer”?
(A) Director (B) Manager
(A) Industrial disputes act, 1947
(C) Occupier (D) None of these
78. Employee state insurances act was enacted
(C) ESI act, 1948
in
(D) All of these
(A) 1984 (B) 1948
(C) 2004 (D) 1981 85. Which act requires employees in industrial
establishments to define the conditions of
79. In ESI act, the rate of contribution as on
employment?
31th March 2002 was _______ percent of the
wages payable by the employees. (A) The Factories Act, 1948
(A) 1.74 (B) 1.50 (B) The Industrial Disputes Act, 1947
(C) 2.25 (D) All of these (C) The Industrial Employment (standing
orders) Act, 1946
80. The constitutions of India upholds “The
state shall endeavour to provide, within a (D) The Trade Union Act, 1926
period of ten years from the commencement 86. Which part of the definition of ‘worker’ un-
of this constitutions, for free and compulsory der the Factories Act is incomplete?
education for all children until they complete (A) A person employed directly or by or
the age of fourteen years” the Directive through any agency.
principle of state policy enunciated by the (B) For remuneration.
ILO convention in
(C) With or without the knowledge of the
(A) Article 20 principal employer.
(B) Article 45
(D) In the manufacturing process.
(C) Article 24
87. It is such disablement of permanent nature
(D) Article 18
as reduces the earning capacities an em-
81. ESI scheme is being administrated by the ployee for all work which he was capable of
(A) ESI administration performing at the time accidents resulting
(B) ESI corporation in such disablement
(C) Medical Officer (A) Permanent total disablement
(D) All of these (B) Permanent partial disablement
82. The ___________was enacted due to the (C) Temporary Disablement
suggestion of which of the Adarkar Com- (D) All of these
mittee
Elective III 699
88. __________means a condition resulting 96. The origin growth and development of em-
from an employment injury which requires ployment organisation in India can be iden-
medical treatment and renders an employee, tified in as
as a result of such injury, temporarily inca- (A) Before 1933 (B) After 1933
pable of doing the work which he was do- (C) Before 1947 (D) After 1947
ing prior to or at the time of injury
97. For the enforcement of compensation act
(A) Permanent total disablement _________are appointed.
(B) Permanent partial disablement (A) Chief inspectors
(C) Temporary Disablement (B) Certifying surgeons
(D) All of these (C) Commissioners
89. As on 31st March 2002, contribution in re- (D) All of these
spects of employees getting wages upto
98. Industrial employment standing order act
Rs ______ per day were not payable
was came into force.
(A) 40 (B) 30
(A) 1829 (B) 1946
(C) 20
(D) All of these
99. More close participation and interaction be-
90. Qualifying condition of the insured em- tween labour and management is estab-
ployee of the sickness benefits were payable lished in order to create a cooperative envi-
not less than ronment for negotiation and settlement
(A) 78 days (B) 60 days (A) Work Committee
(C) 50 days (D) None of these (B) JMC
91. Every employee shall be eligible for bonus (C) Both A & B
provided he has worked for not less than (D) None of these
______ working days in that years.
100. Court of Inquiry consist of how many mem-
(A) 30 (B) 50
bers
(A) Chairman & two or four members
92. ________ is the workers share. (B) One or more person
(A) Available surplus (C) Both A & B
(B) Allocable surplus (D) None of these
(C) Both of these
101. Payment of wages act was came into force
(D) None of these in
93. Maximum bonus is _______ per cent of em- (A) 1829 (B) 1936
ployees salary. (C) 1947 (D) None of these
(A) 10 (B) 15
102. Minimum wages act was came into force in
(A) 1978 (B) 1948
94. Workman compensation act applies to work- (C) 1947 (D) None of these
man employed in
103. Payment of Bonus act was enacted in
(A) Factories (B) Circuses
(A) 1988 (B) 1965
(C) Railways (D) All of these
95. __________ means loss of capacity to work
or to move. 104. Rege Committee appointed by the govern-
ment of India in
(A) Displacement (B) Dependent
(A) 1944 (B) 1936
(C) Disablement (D) None of these
105. The constitution of India upholds to secure 112. Trade union movement in India emerged be-
and protect a social order which stands for tween
the welfare of the people, as a Directive prin- (A) 1920-1930 (B) 1850-1870
ciple of state policy enunciated by the ILO (C) 1870-1880 (D) 1930-1947
convention in
113. The payment of bonus act,1965 is applicable
(A) Article 20 (c) (B) Article 38 to an employee who draws wage and salary
(C) Article 24 (c) (D) Article 18 (c) of
106. Equal remuneration act was came into force (A) Rs 3500 in case of apprentice
in (B) Rs 5000 in case of apprentice and em-
(A) 1967 (B) 1976 ployee
(C) 1947 (D) None of these (C) Rs 7500 in case of employee only
107. Which of the following are the types of the (D) Rs 10000 in case of employee only
tripartite bodies ? 114. The Minimum wages act,1948 has
(A) National renewal fund (1991) (A) One schedule covering different types
(B) Central implementation and evaluation industries
machinery (1957) (B) One schedule covering different types
(C) Steering committee on wages (1956) of industries, shop and establishment
(D) All of these (C) One schedule covering shop and estab-
108. Which schedule of the ID act,1947 gives the lishment
list of unfair labour practices? (D) Two scheduled covering industrial es-
(A) First schedule (B) Fifth schedule tablishment and agriculture
(C) Both A & B (D) None of these 115. Unfair labour practices are listed in
109. The conflicts and disputes between employ- (A) Trade union act,1926
ers and employees on any industrial mat- (B) Factories act,1948
ters is/are known as (C) Equal Remuneration act
(A) Industrial disputes (D) All of these
(B) Human relation 116. Public utility services are listed in
(C) Conflict relation (A) Trade union act, 1926
(D) All of these (B) Factories act, 1948
110. Forms of industrial disputes are (C) Equal Remuneration act
(A) Strike (D) All of these
(B) Lockouts 117. ILO was formed in the year
(C) Gherao (A) 1948 (B) 1919
(D) All of these (C) 1931 (D) None of these
111. Under the payment of wages act 1936 the 118. National productivity council was set up in
maximum limit of the deduction should not (A) 1958 (B) 1958
ordinarily cross
(A) 50 % generally and 65% in case of pay-
119 Wage board was established in
(B) 60 % generally and 75% in case of pay- (A) 1957 (B) 1958
ment due to cooperatives (C) 1931 (D) None of these
(C) 50 % generally and 75% in case of pay- 120. Benefits (India) of globalisation like sus-
ment due to cooperatives tained economic growth free markets, eco-
(D) 30 % generally and 75% in case of pay- nomic globalisation, privatisation etc. were
ment due to cooperatives summarised in
Elective III 701
(A) First national commission 130. The Board level participation was set up in
(B) Second national commission (A) 1947 (B) 1970
(C) National labour board (C) 1967 (D) None of these
(D) ILO 131. The constitutions of India upholds “The
121. First National commission of labour was set state shall promote with special care the edu-
up in cational and economic interest the weaker
(A) 1948 (B) 1969 section of the people, and, in particular, of
(C) 1931 (D) None of these the schedule caste, and schedule tribes, and
shall protect them from social injustice and
122. Second national commission was set up in
all forms of exploitation” ‘in Directive prin-
(A) 2002 (B) 1957 ciple of state policy enunciated by the ILO
(C) 1967 (D) None of these convention.
123. Which of teh following factors are included (A) Article 20
in the calculation of human development (B) Article 46
index? (C) Article 24
(A) Decent standard of living (D) Article 18 (c)
(B) Membership 132. Globalisation is ruthless, rootless, jobless
(C) Both A & B (D) None of these and fruitless was state by
124. Labour investigation committee known as (A) U.N.O (B) U.N.D.P
Rege committee appointed by the govern- (C) I.L.O (D) W.H.O
ment in India in
133. Institutional of employees’ participation in
(A) 1944 (B) 1936 management for public sectors undertaking
(A) 1947 (B) 1957
125. The concepts of JMC was given in (C) 1983 (D) None of these
(A) Industrial resolution 1956 134. Varma Committee (1977) was set up under
(B) 1967 the chairmanship of
(C) Both A & B (A) Ravindra Verma
(D) None of the above (B) J.T Dunlop
126. First National Commission on labour was (C) Dale Yoder
governed in (D) All of the above
(A) 1969 (B) 1956
135. First factory commission on worker partici-
(C) 1968 (D) None of these pation was set up in
127. The Code of Discipline ______ reiterated the (A) 1984 (B) 1977
faith of the parties in voluntary arbitration. (C) 2004 (D) 1875
(A) 1984 (B) 1958 136. Which of the following statements about
(C) 2004 (D) 1981 I.L.O is not true?
128. Work committee was set up in (A) I.L.O passes only recommendations.
(A) 1947 (B) 1957 (B) I.L.O is a tripartite body.
(C) 1967 (D) None of the above (C) I.L.O was establish in 191.
129. The international organisation of employ- (D) I.L.O conversions are mandatory for
ers (I.O.E) with headquarters in Geneva was those countries which ratify them.
formulated in 137. First industrial committee was set up in
(A) 1910 (B) 1920 (A) 1947 (B) 1957
(C) 1930 (D) 1967 (C) 1967 (D) All of these
138. Who observed that the respect of the rule 143. Defence of India rules was set up in
depends on the manner of their formulation? (A) 1915 (B) 1978
(A) Sydney and Beatrice Webb (C) 2004 (D) 1981
(B) Flander A. 144. First Time the May Day was celebrated in
(C) Durkheim E. India in
(D) Gouldners (A) 1927 (B) 1978
139. In which year, the International Institute of (C) 2004 (D) 1981
Labour Studies was established? 145. Which of the fundamental right is called soul
(A) 1960 (B) 1926 and heart of the constitution by B.R.
(C) 1919 (D) 1950 Ambedkar
140. In USA the labour management relation act (A) Right to Constitutional Remedies
(Taft Hartly act) was enacted in (B) Right to Equality
(A) 1937 (B) 1947 (C) Right to Freedom
(C) 1957 (D) 1967 (D) All of these
141. The constitutions of India upholds “Un- 146. First trade union in India was set up in
touchability” as a fundamental right enun- (A) 1984 (B) 1890
ciated by the ILO convention in (C) 2004 (D) 1981
(A) Article 20 (c) 147. Sachar Committee on worker’s participation
(B) Article 17 was set up in
(C) Article 24 (c) (A) 1984 (B) 1977
(D) Article 18 (c) (C) 2004 (D) 1981
142. The constitutions of India upholds “freedom 148. The constitutions of India upholds “Right
of association” as a fundamental right enun- to freedom and speech” as a fundamental
ciated by the ILO convention in right enunciated by the ILO convention in
(A) Article 20 (c) (A) Article 20 (c)
(B) Article 19 (c) (B) Article 19 (1)
(C) Article 24 (c) (C) Article 24 (c)
(D) Article 18 (c) (D) Article 18 (c)
Elective III 703
ANSWER KEY
1. (A) 2. (D) 3. (C) 4. (A) 5. (B) 6. (A) 7. (D) 8. (D) 9. (A) 10. (B)
11. (A) 12. (B) 13. (C) 14. (C) 15. (D) 16. (C) 17. (B) 18. (C) 19. (D) 20. (D)
21. (D) 22. (D) 23. (D) 24. (D) 25. (C) 26. (D) 27. (A) 28. (B) 29. (D) 30. (D)
31. (D) 32. (A) 33. (B) 34. (D) 35. (D) 36. (D) 37. (B) 38. (D) 39. (D) 40. (C)
41. (A) 42. (A) 43. (B) 44. (B) 45. (A) 46. (C) 47. (A) 48. (A) 49. (D) 50. (A)
51. (A) 52. (A) 53. (A) 54. (A) 55. (A) 56. (B) 57. (C) 58. (A) 59. (C) 60. (A)
61. (A) 62. (A) 63. (A) 64. (C) 65. (C) 66. (A) 67. (A) 68. (B) 69. (A) 70. (B)
71. (B) 72. (B) 73. (A) 74. (B) 75. (D) 76. (A) 77. (C) 78. (B) 79. (A) 80. (B)
81. (D) 82. (C) 83. (D) 84. (C) 85. (C) 86. (B) 87. (B) 88. (C) 89. (A) 90. (A)
91. (A) 92. (B) 93. (C) 94. (D) 95. (C) 96. (A) 97. (C) 98. (B) 99. (B) 100. (B)
101. (B) 102. (B) 103. (B) 104. (A) 105. (B) 106. (B) 107. (D) 108. (B) 109. (A) 110. (D)
111. (C) 112. (A) 113. (D) 114. (D) 115. (A) 116. (A) 117. (B) 118. (A) 119. (A) 120. (B)
121. (B) 122. (A) 123. (A) 124. (A) 125. (A) 126. (A) 127. (B) 128. (A) 129. (B) 130. (B)
131. (B) 132. (B) 133. (C) 134. (A) 135. (D) 136. (A) 137. (A) 138. (C) 139. (A) 140. (B)
141. (B) 142. (B) 143. (A) 144. (A) 145. (A) 146. (B) 147. (B) 148. (B)
(REVISED PATTERN)
MODEL PAPER
Note : This paper contains hundred (100) Objective type questions, each question carrying two (2)
marks. Attempt all of them.
1. Which of the following principles of man- (B) It is the result of social forces at work
agement was not given by Fayol ? place.
(A) Unity of direction (C) It is more common in times of high
(B) Subordination of individual interest to organisational excitement.
common interest (D) All the above.
(C) Stability of tenure 6. The following concept is developed on
(D) Standardisation unitarism, individualism, high commitment
2. Arrange different phases of Hawthorne ex- and strategic alignment.
periments in their right sequence (A) Personnel Management
a. Relay assembly test room experiments (B) Human Resource Management
b Bank wiring observation test (C) Industrial Relations
c. Illumination experiment (D) Personnel Administration
d. Personal counselling 7. Human Resource Planning include
e. Mass interviewing programme (A) Scenario planning
(A) a, b, c, d, e (B) Action planning
(B) c, a, e, b, d (C) Demand and Supply forecasts
(C) c, b, e, a, d (D) All the above
(D) e, d, c, b, a 8. Which one is not a part of recruitment pro-
3. Delphi technique is used in cess ?
(A) Organising (A) Determining requirements
(B) Operating (B) Planning recruitment campaign
(C) Staffing (C) Attracting candidates
(D) Forecasting (D) Selecting candidates
4. Narrow span of control results into 9. Which one is not a non-quantitative job
(A) Tall structure evaluation method ?
(B) Flat structure (A) Ranking method
(C) Mechanistic structure (B) Grading method
(D) All the above (C) Point rating method
5. Which of the following is correct about (D) Job-classification method
‘Grapevine’ ? 10. Consider the following punishments in dis-
(A) It tends to exist when members of for- ciplinary actions
mal group know one- another well. (i) Warning (ii) Demotion
(iii) Censure (iv) Dismissal
(705)
Which of the above fall under minor pun- (D) Reaction, learning, results and
ishment ? behaviour
(A) (i) and (ii) 16. Which of the following is the outcome of job
(B) (i), (ii) and (iii) satisfaction ?
(C) (i) and (iii) (A) High employee turnover
(D) (i), (ii) and (iv) (B) High productivity
11. Which of the following factors are included (C) Absenteeism
in the calculation of human development (D) All the above
index ? 17. Under Alderfer’s ERG theory, the three core
(A) Life expectancy needs are
(B) Adult literacy (A) Emotional, Relational, and Growth
(C) Decent standard of living (B) Emotional, Rational and Growth
(D) All the above (C) Existence, Reliability and Gain
12. Who is not associated with development of (D) Existence, Relatedness and Growth
human development index ? 18. The group to which a person would like to
(A) Mahabub-ul-Haq belong is known as
(B) Manmohan Singh (A) Primary Group
(C) Meghnad Desai (B) Membership Group
(D) Sudhir Anand (C) Reference Group
13. The sequence of human resource develop- (D) None of the above
ment activities according to Leonard Nadler 19. The Managerial Grid was given by
are (A) Rensis Likert
(A) Education, training and development (B) Kurt Lewin
(B) Development, training and education (C) Hersey Blanchard
(C) Training, education and development (D) Blake and Mouton
(D) Training, development and education
20. Arrange the following stages of group dy-
14. Who introduced the concept of quality namics in right sequence
circles in India ? a. Norming
(A) P. V. Rao b. Performing
(B) Udai Pareek c. Storming
(C) Dharani P. Sinha d. Forming
(D) S. R. Udpa (A) d, c, a, b
15. Which of the following is the correct se- (B) a, b, c, d
quence of training evaluation ? (C) d, c, b, a
(A) Reaction, learning, behaviour and re- (D) c, d, b, a
sults
21. Identify the correct definition of industrial
(B) Learning, reaction, behaviour and re-
relations
sults
(A) Relations between or among human
(C) Learning, behaviour, reaction and re-
beings
sults
Model Paper 707
(B) Relations between employer and em- (C) Is an association of workers who are en-
ployees as individuals gaged in not securing economic benefits
(C) Relations between parties in an employ- for their members.
ment context (D) Is influenced by a member of ideologies.
(D) Collective relationship between man- 27. Recognition of trade union is made by the
agement and trade unions provision of
22. Who has propounded the system concept (A) Trade Unions Act of 1926
of industrial relations ? Find out from the (B) Industrial Dispute Act 1947
following (C) Code of Discipline
(A) L. N. Allen Flander (D) Factories Act of 1948
(B) L. N. Flax 28. Which is not a structure of Trade Union of
(C) John T. Dunlop Industrial Organisation ?
(D) Neil N. Chamberlein (A) Craft union
23. Which is the correct order of settlement of (B) General union
industrial disputes ? (C) Industrial union
a. Industrial Tribunal (D) Consumers’ union
b. National Tribunal 29. A Trade Union should be registered as per
c. Conciliation the law must have
d. Labour Court (A) 20% of the workers
(A) c, a, d, b (B) 150 workmen
(B) c, d, a, b (C) Minimum 17 persons
(C) a, d, c, b (D) None of the above
(D) c, b, d, a 30. The founder of Ahmedabad Textile Labour
24. Which of the following is not a Tripartite Association was
body ? (A) V. V. Giri
(A) Works Committee (B) M. K. Gandhi
(B) I. L. O (C) B. P. Wadia
(C) Indian Labour Conference (D) N. M. Lokhande
(D) Wage Boards 31. If there is wilful removal or disregard by the
25. The code of discipline was ratified by the workman of any safety guard or other de-
Indian Labour Conference to ensure disci- vice which he knew to have been provided
pline in industry. Identify the year of ratifi- for the purpose of securing safety of work-
cation out of the following man,
(A) 1957 (B) 1958 (A) Employer is liable to pay compensation
(C) 1942 (D) 1962 (B) Employer is not liable to pay compen-
26. Which of the following is not a characteris- sation
tics of Trade Union ? (C) Appropriate government is liable to pay
(A) Is an association of employers or the em- compensation
ployees or of the independent workers? (D) The Trade Union is liable to pay com-
(B) Is relatively a permanent combination pensation
but not temporary or casual.
32. In case of fatal accident if the commissioner 35. The goal of I LO is
serves notice to the employer based on his (A) creation of jobs for men and women
source (B) not just creation of jobs but the creation
(A) the employer can neglect the notice. of jobs of acceptable quality
(B) if the employer thinks liable, he shall (C) not overcoming under employment
make the deposit within sixty days of (D) not to provide freedom of choice in em-
the service of notice. ployment
(C) if the employer thinks liable, he shall 36. The Payment of Bonus Act, 1965 is appli-
make the deposit within thirty days of cable to an employee who draws wage or
the service of notice. salary of
(D) if the employer is not liable, he shall in (A) 3500 in case of apprentice
his statement indicate the grounds on
(B) 5000 in case of apprentice and employee
which he disclaims liability.
(C) 7500 in case of employee only
(A) All statements are correct.
(D) 10,000 in case of employee only
(B) All statements are incorrect.
37. Unfair Labour Practices are listed in
(C) Only (A) and (D) are correct.
(A) the Factories Act, 1948.
(D) Only (C) and (D) are correct.
(B) the Industrial Employment (Standing
33. The maternity leave period with full wage
Orders) Act, 1946.
is
(C) the Industrial Disputes Act, 1947.
(A) six months
(D) the Trade Unions Act, 1926.
(B) twelve weeks
38. The Minimum Wages Act, 1948 has
(C) four months
(A) one schedule covering different types of
(D) sixteen weeks
industries.
(B) one schedule covering different types of
(a) Royal Commission (i) 1937
industries, shops and establishments.
on Labour
(C) one schedule covering shops and estab-
(b) Bombay Textile Labour
lishments.
Enquiry committee (ii) 1946
(D) two schedules covering industrial es-
(c) Second Labour (iii) 1929
tablishments and agriculture.
Ministers’ Conference
39. If deduction is made contrary to the provi-
(d) Labour Investigation (iv) 2002
sions of the Payment of Wages Act, 1936 the
Committee
aggrieved employee can write to the inspec-
(e) Second National (v) 1941
tor appointed under the Act within the time
Commission on Labour
period given below from the date on which
Code : the deduction from wages was made or the
(a) (b) (c) (d) (e) date on which the payment of wages is due
(A) (ii) (i) (iii) (iv) (v) (A) two years
(B) (iii) (ii) (i) (v) (iv) (B) one year
(C) (iii) (v) (iv) (i) (ii) (C) twelve weeks
(D) (iii) (i) (v) (ii) (iv) (D) six weeks
Model Paper 709
40. The maximum daily hours of work in a day (A) (ii) (i) (iii) (iv)
with normal wage allowed in factories is (B) (ii) (iii) (iv) (i)
(A) 11 hours (B) 10 hours (C) (i) (ii) (iv) (iii)
(C) 9 hours (D) 8 hours (D) (iv) (ii) (iii) (i)
41. Assertion (A): Intra-mural and extra- mural 45. Which of the following statements relating
welfare are mutually complimentary. to Welfare Officer is not true
Reason (R): The work-life balances need to (A) The provision of Welfare Officer is given
be ensured in order to get the best output in both the Factories Act, 1948 and the
from an employee. Mines Act, 1952.
(A) Assertion is wrong but Reason is logi- (B) Welfare Officer’s duties and responsi-
cal. bilities are defined and prescribed in the
(B) Both Assertion and Reason are wrong. legislation.
(C) Assertion and Reason are right. (C) Welfare Officer’s appointment is tagged
(D) The Assertion is right but Reason is to the provision of minimum workforce
wrong. employed in an organisation
42. Which of the following statements is not true (D) The Welfare Officer’s role was designed
in explaining the concept and scope of as a ‘Third force’.
labour welfare ? 46. Which of the following statements about
(A) Labour welfare has no roots in social characteristics of labour is not true ?
work. (A) Labour is a perishable commodity.
(B) Long Arm of the job and social inva- (B) Labour cannot be separated from the
sion of workplace’ concepts, explain the person.
mutuality between intramural and (C) Workers have no reserve price.
extra-mural labour welfare (D) Labour is as flexible and mobile as capi-
(C) Labour welfare is a social concept. tal.
(D) Corporate social responsibility is an ex- 47. Which of the following statements about
tended concept of welfare. labour market is not true ?
43. Who is the champion of the ‘Welfare move- (A) Labour market like commodity market
ment’ propagated in mid 19th century ? is analyzed by supply, demand and
(A) Frederick Winslow Taylor price equilibrium.
(B) Andrew Ure (B) Labour Market is relatively more local
(C) Sheebhom Rownlvee than commodity market.
(D) Robert Owners (C) Unlike a commodity market, the rela-
44. Sequence the following developments by tionship between a buyer and seller in
their period of occurrence from earliest to a labour market is not temporary.
the latest : (D) Monopoly in the labour market is high.
(i) The Labour Investigation Committee 48. Money Wage is otherwise called as
(ii) The Whitley Commission (A) Real wage
(iii) The Enactment of Factories Act (B) Living wage
(iv) The 1st National Commission on (C) Nominal wage
Labour (D) Fair wage
49. Wage Boards set right (c) Factories Act (iii) 1947
(A) Inter-regional differentials (d) Trade Unions Act (iv) 1946
(B) Inter-sectoral differentials (a) (b) (c) (d)
(C) Intra-industry differentials (A) (iii) (ii) (iv) (i)
(D) Inter-industry differentials (B) (iv) (ii) (i) (iii)
50. Which of the following is not a determinant (C) (ii) (i) (iv) (iii)
of wages ? (D) (iv) (iii) (i) (ii)
(A) Prevailing wages 54. List of unfair labour practices on the part of
(B) Bargaining strength of Unions the trade unions and employers was in-
(C) Job Evaluation cluded in
(D) Performance Appraisal (A) Factories Act
51. Match the following (B) Industrial Dispute Act
List-I List-II (C) Trade union Act
(a) F. J. Roethlisberger (i) New Patterns (D) None of the above
& Dickson of Management 55. Not more than 50% of members of the office
(b) Elton Mayo (ii) The Human bears of Trade union can be outsiders, as
side of enter- per provisions of legislations.
prise (A) Industrial Dispute Act
(c) Douglas (iii) The Manage- (B) Trade Union Act
Mc Gregor ment and (C) Mines Act
Worker (D) ESI Act
(d) Rensis Likert (iv) The hum an
56. Who coined the term Scientific Manage-
problems of in-
ment?
dustrial civili-
(A) Louis D. Brandies
zation
(B) F. W. Taylor
Codes :
(C) Douglas Mc Gregor
(a) (b) (c) (d)
(A) (ii) (iv) (i) (iii)
57. Who propagated the quality of work life as
(B) (iii) (iv) (ii) (i)
a descending participation mechanism ?
(C) (iv) (iii) (i) (ii)
(A) Frederick Herzberg
(D) (ii) (iii) (iv) (i)
(B) Eric Tryst
52. Who is associated with the ‘illumination ex-
(C) A. K. Rice
periment’ of the Hawthorne experiment
(D) John T. Dunlop
(A) Elton Mayo
58. Statutory Minimum wage is fixed under
(B) George A. Pennock
(A) Payment of Wages Act, 1936
(C) F. J. Roethlisberger
(B) Equal Remuneration Act, 1976
(C) Workmen’s Compensation Act, 1923
(D) Minimum Wages Act, 1948
(a) Industrial employment (i) 1948
Standing orders Act 59. The employee State Insurance Act was en-
acted the basis of which committee’s report?
(b) Industrial Dispute Act (ii) 1926
Model Paper 711
(A) B. R. Ambedkar Committee (C) Specialized government agencies
(B) B. P. Adarkar Committee (D) Communities and their associations
(C) Royal Commission on Labour 65. According to whom ‘Conflict is necessary
(D) Labour Investigation Committee but it can be and needs to be managed and
60. Who is the author of the book “Fifth Disci- resolved’.
pline the Art and Practice of the Learning (A) Unitarists
Organization” ? (B) Pluralists
(A) Peter Clark (C) Classicalists
(B) Peter Segne (D) Modernists
(C) Peter F. Drucker 66. Who observed that the respect for rules de-
(D) Tom Peters pends on the manner of their formulation ?
61. Who has started that “Collective bargain- (A) Web, S. and Web, B.
ing is essentially a process in which em- (B) Flanders, A.
ployees act as a group in seeking to shape (C) Durkheim, E.
conditions and relationships in their em- (D) Gouldner, A.
ployment.
67. Globalization is ruthless, rootless, jobless,
(A) R. F. Hoxie fruitless was stated by
(B) L. G. Reynolds (A) U. N. O
(C) Dale Yoder (B) U. N. D. P
(D) J. F. Richardson (C) I. L. O
62. In which year the formation of the National (D) W. H. O
Renewal Fund to protect the interest of the
68. The Origin, growth and development of
workers was announced
employment’s organizations in India can be
(A) 1956 identified as
(B) 1991 (A) Before 1933
(C) 1969 (B) After 1933
(D) 1992 (C) Before 1947
63. Identify the factors which do not help (D) After 1947
organisation in dealing with knowledge
69. The International Organization of
management
Employer’s (I.O.E) with headquarters in
(A) Improve the returns Geneva was formulated in
(B) Improve competency (A) 1910 (B) 1920
(C) Do not exploit opportunity (C) 1930 (D) 1940
(D) Great value for core business
70. Trade Union movement in India emerged be-
64. Who are not the actors according to tween
Dunlop’s framework of industrial relations (A) 1920-1930
system ?
(B) 1850-1870
(A) Managers and their representatives
(C) 1870-1880
(B) Workers and their organisations
(D) 1930-1947
71. The code of discipline in industry was (d) Programmed (iv) The subject matter
adopted by the Indian labour conference (tri- Instructionto be
partite) in learned is pre-
(A) 1948 (B) 1958 sented in a Ser-
(C) 1968 (D) 1950 vices of carefully
planned sequen-
72. The constitution of India upholds the prin-
tial units
ciple ‘Freedom of Association’ as a funda-
mental right enunciated by I. L. O. conven- (a) (b) (c) (d)
tion in (A) (iv) (iii) (ii) (i)
(A) Article 20(C) (B) (ii) (i) (iii) (iv)
(B) Article 19(C) (C) (iii) (iv) (ii) (i)
(C) Article 24(C) (D) (i) (ii) (iii) (iv)
(D) Article 18(C) 75. Arrange the following steps of training pro-
73. Training refers to cedure in proper sequence
(A) An act of increasing the knowledge and a. Preparing the trainee
skill of an employee for doing a particu- b. Preparing the instructor
lar job c. Presenting the operation
(B) A short term educational process and d. Getting ready to teach
utilising systematic and organised pro- e. Tryout the trainee’s performance
cedure by which employees learn tech- f. Follow up
nical knowledge and skills for a defi- (A) a, b, c, d, e, f
nite purpose. (B) b, a, d, c, e, f
(C) It bridges the differences between job re- (C) f, e, d, c, a, b
quirements and employee’s present
(D) a, d, c, e, b, f
specifications
76. Which of the following is not correct about
Organisation Development ?
74. Match the following with List-A to List-B
(A) It is not a top management led and sup-
List-A List-B ported process.
(a) Job Rotation (i) The trainer ap- (B) It is a process of planned change.
praises the perfor-
(C) It is an ongoing collaborative manage-
mance of the
ment of organisation culture
trainee, provides
(D) It is a problem solving process.
feedback informa-
tion and Corrects 77. The process of comparing work and service
the trainee methods against the best practices and out-
(b) Job Instruction (ii) The movement of comes in industry is known as
the trainee from (A) Benchmarking
one job to another (B) Kaizens
(c) Vestibule (iii) Simulation of (C) Quality Circles
training actual work con- (D) None of the above
ditions in a class 78. In a learning organisation
room (A) Vision is provided by top management
Model Paper 713
(B) Conflicts are resolved through power (C) Organizational restructuring
and hierarchical influence (D) Feedback
(C) Formulation and implementation of 85. Which one is a part of performance mea-
ideas takes place at all levels of surement ?
organisation (A) Trait
(D) All the above (B) Behaviour
79. When an organization outsources the re- (C) Outcome
sponsibilities for the end-to-end delivery of (D) All the above
the
86. Which of the following is a single use plan ?
(A) Recruitment process and screening
(A) Budget (B) Rule
(B) Business process and screening
(C) Procedure (D) Policy
(C) Knowledge process and screening
87. Grievance Handing Machinery is given in
(D) All the above
(A) Industrial Disputes Act
80. Lean production aims at
(B) Factories Act
(A) Continuous improvement
(C) Both (A) and (B)
(B) Aim at zero defects
(C) Just-in-time inventory system
88. Who has given the ‘Expectancy theory’ of
Motivation ?
81. Which one of the following is not a decision
(A) Abraham Maslow
role identified by Henry Mintzberg
(B) Victor Vroom
(A) The spokesperson role
(C) Frederick Herzberg
(B) The Entrepreneurial role
(D) Clayton Adler
(C) The Disturbance handler role
89. The categories of human process, techno-
(D) The Resource allocator role
structural, human resources management
82. Which one is not of Michael Porters five and strategic applications are related to
force model of industry analysis
(A) Change management
(A) Threat of new entrants
(B) O. D. application
(B) Substitutes
(C) Training
(C) Intensity of rivalry among existing play-
(D) Action research
ers
90. The constitution of site appraisal commit-
(D) Cost leadership
tees is under the
83. Which one is not a part of Mc Kinsy’s 7s
(A) Factories Act, 1948
framework ?
(B) Contract labour (Regulation and Aboli-
(A) Systems
tion) Act, 1970
(B) Strategy
(C) Maternity Benefit Act, 1965
(C) Standards (D) Style
(D) Employees State Insurance Act, 1948
84. The change in specialization and integra-
91. Under the Payment of Wages Act, 1936 the
tion in organization context is called
maximum limit on deductions should not
(A) Co-ordination ordinarily cross
(B) Co-operation
(A) 50 percent generally and 65 percent in (C) Minor employee who is not liable un-
case of payments due to the coopera- der the Act to pay the employee’s con-
tives tribution
(B) 60 percent generally and 75 percent in (D) None of the above
case of payments due to the coopera- 95. ‘Unemployment allowance’ payable is
tives
stated in
(C) 50 percent generally and 75 percent in
(A) Employee State Insurance Act, 1948
case of payments due to the coopera-
(B) Unorganised Sector Workers Social Se-
tives
curity Act, 2005
(D) 40 percent generally and 75 percent in
(C) Factories Act, 1948
case of payments due to the coopera-
tives
96. Match the following schedules under the I.
92. Draft standing orders are to be submitted
D. Act, 1947
within
(a) I schedule (i) conditions of ser-
(A) Two years from the date on which the
vice for change of
Act is applicable in five copies.
which notice is to
(B) One year from the date on which the
be given
Act is applicable in five copies
(b) II and III (ii) Labour courts and
(C) Six months from the date on which the
schedules Industrial Tribu-
Act is applicable in five copies
nals
(D) Six months from the date on which the
(c) IV schedule (iii) Industries which
act is applicable in ten copies
may be declared
93. To avoid over crowding the space provided as public utility
for each worker under the Factories Act, services
1948 is (d) V schedule (iv) Unfair labour
(A) 12 cubic metres for factories built before practices
1948 and 14.2 cubic meters for those (a) (b) (c) (d)
built after 1948
(A) (iv) (iii) (ii) (i)
(B) 10 cubic metres for factories built before
(B) (ii) (iii) (i) (iv)
1948 and 14.2 cubic meters for those
(C) (iii) (ii) (i) (iv)
built after 1948
(D) (iv) (ii) (iii) (i)
(C) 9.9 cubic metres for factories built be-
fore 1948 and 14.2 cubic meters for those 97. In USA, the Labour Management Relations
built after 1948 Act (Taft Hartley Act) was enacted in
(D) 9.9 cubic meters for factories built be- (A) 1937 (B) 1947
fore 1948 and 14.4 cubic meters for those (C) 1957 (D) 1967
built after 1948. 98. Recognition of the trade union in industry
94. Who is an ‘exempted employee’ under the under the code of discipline was developed
Employee’s state Insurance Act, 1948 ? in the year
(A) Employee who is minor (A) 1952 (B) 1957
(B) Employee who is not liable under the (C) 1958 (D) 1962
Act to pay the employee’s contribution
Model Paper 715
99. Who considered collective bargaining as the 100. Where the recruitment happens through the
most important concept for determining the compulsory intervention of trade unions, the
terms and conditions of employment system is called
(A) Sidney and Beatrice Webb (A) Closed shop
(B) Robert Hoxie (B) Union shop
(C) John T. Dunlop (C) Open shop
(D) Samuel Gompers (D) None of the above
ANSWERS
1. (D) 2 . (B) 3. (D) 4. (A) 5. (D) 6. (B) 7. (D) 8. (D) 9. (C) 10. (C)
11. (D) 12. (B) 13. (C) 14. (D) 15. (A) 16. (B) 17. (D) 18. (C) 19. (D) 20. (A)
21. (D) 22. (C) 23. (B) 24. (A) 25. (B) 26. (C) 27. (C) 28. (D) 29. (D) 30. (B)
31. (B) 32. (D) 33. (A) 34. (D) 35. (B) 36. (D) 37. (C) 38. (D) 39. (B) 40. (C)
41. (C) 42. (A) 43. (D) 44. (A) 45. (B) 46. (D) 47. (D) 48. (C) 49. (C) 50. (D)
51. (B) 52. (B) 53. (D) 54. (B) 55. (B) 56. (B) 57. (B) 58. (D) 59. (B) 60. (B)
23. (C) 24. (B) 25. (C) 26. (D) 27. (A) 28. (C) 31. (B) 32. (A) 33. (B) 34. (A)
35. (B) 36. (B) 37. (D) 39. (B) 41. (B) 42. (A) 46. (A) 47. (C) 48. (D) 49. (D)
50. (A) 51. (D) 52. (C) 53. (C) 54. (D) 55. (A) 57. (A) 58. (B) 59. (B) 60. (A)
63. (C) 64. (C) 66. (C) 67. (B) 68. (A) 71. (C) 72. (B) 73. (B) 74. (D) 75. (A)
PREVIOUS YEARS’ PAPERS
(716)
UGC Net Specific Human Resource Management (Previous Years’ Papers) 717
December, 2012
LABOUR WELFARE & INDUSTRIAL RELATIONS,
LABOUR & SOCIAL WELFARE, HUMAN RESOURCE MANAGEMENT
PAPER-II
Note : This paper contains fifty (50) objective type questions, each question carrying two (2) marks. Attempt
all the questions.
1. Match the following (C) Feedback Control

Thinker Management (D) All the above
Principle 5. Which of the following is not a semantic
(a) F.W.Taylor (i) Authority & Re- barrier of communication?
sponsibility (A) Faulty translation
(b) Henri Fayol (ii) Hierarchy (B) Ambiguous words
(c) Weber (iii) Separation of (C) Specialist’s Language
planning from do- (D) Inattention
ing
6. People should be regarded as assets rather
(d) Elton Mayo (iv) Human relation than variable costs was emphasised in
approach
(A) Personnel Management
Codes : (B) Human Resource Management
(a) (b) (c) (d) (C) Personnel Administration
(A) (iii) (i) (iv) (ii) (D) Public Administration
(B) (iii) (iv) (i) (ii)
7. The classical theorists favoured organiza-
(C) (iii) (i) (ii) (iv) tion based
(D) (iii) (ii) (i) (iv) (A) Civilian model
2. Which of the following is the major element (B) Strategic Model
of planning process (C) Military Model
(A) Developing leadership abilities (D) None of the above
(B) Selecting right people
8. Job analysis Includes
(C) Perception of opportunities
(A) Job description and job enlargement
(D) Motivating people
(B) Job enlargement and job enrichment
3. Which principle of management is violated (C) Job description and job Specification
by matrix organisation structure?
(D) All the above
(A) Division of labour
9 A test which measures, what it is intended
(B) Unity of direction
to measures is
(C) Unity of Command
(A) Reliable test (B) Standardised test
(C) Objective test (D) Valid test
4. Which of the following involves careful
10. An enquiry that is conducted afresh because
analysis of inputs and corrective actions
of the objections raised by alleged employee
before operations is completed?
is called
(A) Feed forward control
(A) Domestic Enquiry
(B) Concurrent control
718 UGC Net Specific Human Resource Management (Previous Years’ Papers)
(B) De-novo enquiry Codes :

(C) Ex-parte enquiry (a) (b) (c) (d)
(D) None of the above (A) (ii) (i) (iv) (iii)
11. The concept of HRD score-card was intro- (B) (i) (iii) (iv) (ii)
duced in India by (C) (iv) (ii) (iii) (i)
(A) Udai Pareek (D) (iii) (i) (ii) (iv)
(B) Rao and Pareek 16. Which of the following decreases group co-
(C) T.V. Rao hesiveness?
(D) Arun Honappa (A) Agreement on group goals
12. Performance appraisal by all the following (B) Frequency of interaction
parties is called 360 performance appraisal (C) Large group size
(A) Supervisors and peers (D) All the above
(B) Subordinate and employees themselves 17. Mangers subscribing to ______assumption
(C) Users of services and consultant attempts to structure, control and closely
(D) All of the above supervise their employees.
13. The following is the process of training (A) Theory “X”
(A) Instructional design, validation, needs (B) Theory “Y”
analysis, implementation and evalua- (C) Both theory “x” and theory “Y”
tion (D) Neither Theory “X” nor theory “Y”
(B) Need analysis, Instructional design, 18. According to fielder contingency model of
validation, implementation and evalu- leadership ,which one of the following is a
ation situational variable?
(C) Needs analysis, validation, , Instruc- (A) Leader-member relationship
tional design, implementation and (B) Organisational system
evaluation
(C) Degree of task structure
(D) Instructional design, Needs analysis,
(D) Leader position power
implementation, validation, and evalu-
ation 19. The right sequences of steps in Kurt lewin
change procedure is
14. Fish bone analysis as a tool of quality circle
was advanced by (A) Unfreezing-Moving -Freezing
(B) Moving, Unfreezing - Freezing
(A) Edward Deming
(B) Joseph Juran (C) Unfreezing- Freezing- Moving
(C) Kouru Ishikawa (D) Freezing, Moving, Unfreezing
(D) Phillip Crosby 20. Which of the following is not a traditional
methods of organisational development?
(A) Survey feed back
Book and concept Authors
(B) Sensitivity training
(a) Games people play (i) Eric Bernie
(C) Process consultation
(b) I am ok you are ok (ii) Kurt Lewin
(D) Managerial grid
(c) Johri Window (iii) Thomas A Har-
ris 21. Characteristics of industrial relations do not
(d) Force analysis (iv) Joseph Lufth & include
Harry Inghams (A) Industrial Relations are outcome of em-
ployment relationship in an industrial
enterprise.
(B) Industrial relation promote the skill and (C) No shift from contract of service to con-
methods of adjustment and cooperation tact of service
(C) IR create complex rules and regulation (D) Declining Mutual Commitment.
to maintain Industrial relation 26. A trade union, “A trade union means an
(D) IR system creates environment of dis- association of workers in one or more pro-
trust and conflict. fession carried on mainly for the purpose of
22. Who are not the actors of Industrial relation protecting and advancing the members’ eco-
(A) Workers and their organisation nomic interest with connection with their
daily work”
(B) Employer and their organisation
(A) Sideney and Beatrice
(C) Community and cultural association
(B) J. Cunnison
(D) Government
(C) G.D.H. Cole (D) Clyde. E. Dankert
23. Which of the following is a machinery for
settlement of ID? 27. A union may claim recognition for an indus-
try in a local area, if it has membership of
(A) Indian labour conference
(A) 10% of the worker in that industry
(B) Joint management Council
(B) 15% of the worker in that industry
(C) Industrial Tribunal
(C) 25% worker in that industry
(D) Government & the role of the state
(D) 30% of the worker in similar industry
28. Who among the following advocated the
List-I List-II
trusteeship theory of trade union?
(a) JMC consisting of (i) 1958
(A) N.M. Lokhande (B) B.P. Wadia
representative of workers
(C) G.L. Nanda (D) M.K. Gandhi
and Management was
29. Inter and Intra union Rivalry in trade union
considered by the ILC in
are reduced by
its 15th session in the year
(A) The provision of the Industrial Disputes
(b) Work committee were (ii) 1947 act, 1947
set up under ID act in (B) By Voluntary tripartite code of inter
the year. union revelry
(c) ILO was established (iii) 1919 (C) By Bipartite mutual agreement at indus-
(d) First commission on (iv) 1969 try level
labour submitted its (D) All of the above
report 30. Match the following
Codes : List-I List-II
(a) (b) (c) (d) (a) AITUC (i) 1947
(A) (i) (ii) (iii) (iv) (b) CITU (ii) 1948
(B) (iv) (i) (iii) (ii) (c) INTUC (iii) 1920
(C) (iii) (i) (ii) (iv) (d) HMS (iv) 1970
(D) (ii) (iv) (i) (ii) Codes :
25. Which of the following trends in the em- (a) (b) (c) (d)
ployment relation in the new economic era (A) (iii) (iv) (i) (ii)
is not correct? (B) (ii) (iii) (iv) (i)
(A) Declining stability and security (C) (iii) (i) (ii) (iv)
(B) Declining labour stability (D) (i) (ii) (iii) (iv)
31. “Employment Injury’ means personal injury 35. What is the content of the schedule I of the
to an employee caused by accident or occu- ESI act, 1948
pational disease arising out of and in the (A) List of injuries deemed to be result in
course of employment being an insurable permanent total disablement
employment if the accident occur or occu- (B) List of injuries deemed to be result in
pational disease is contracted only within permanent partial disablement
territorial limits of India and not outside (C) List of occupational diseases
India.
The above statement is correct
36. A person qualified to be chosen as a mem-
(A) Correct
ber of the executive or any other office bearer
(B) Incorrect of the registered trade union if he attained
(C) True only in case of occupational Injury the age of.
(D) True in case of accident (A) Fifteen years
32. Under ESI act, 1948 a member of the corpo- (B) Eighteen years
ration ,standing committee or the medical (C) Twenty one years
council shall cease to be a member of the (D) Twenty five years
body if he fails to attend.
37. The registered trade union can collect po-
(A) Two consecutive meeting
litical fund from its member as a
(B) Three consecutive intermittently
(A) General fund
(C) Two consecutive meeting
(B) Cannot collect political fund
(D) Two consecutive meeting
(C) Separate fund from the interested mem-
33. Under workman compensation act,1923 bers
(A) individual manager subordinate to an (D) Only from political parties
employer cannot act as managing agent.
38. ‘Award Under the Industrial Disputes act’
(B) managing agent includes an individual 1947 is
manager subordinate to an employer.
(a) Not interim determination of labour
(C) only employer can act as managing court
agent.
(b) Not arbitration award under section 10
(D) The appropriate government shall ap- A
point managing agent.
(c) Not final determination of labour court
34. The workman compensation act 1923, the (d) Not final determination of arbitration
maternity benefit act, 1965, and the em- award under section 10A
ployee state insurance act,1948
(A) All statements are true
(A) Together can be applicable
(B) (a) and (b) are true
(B) The maternity benefit act and the em-
(C) (b) are true
ployee state insurance act can be appli-
cable at a time (D) All statements are wrong
(C) If the workman compensation act and 39. The disputes of individual workman is
the maternity benefit act are applicable, deemed to be industrial disputes if the dis-
employee state insurance act can be putes or differences is connected with aris-
applicable at a time ing out of the following where no other work-
man is a party to the disputes
(D) and the employee state insurance act
can be applicable at a time (A) Grievances of an individual workman
(B) Discharges of an individual workman
(C) Dismissal of an individual workman philosophy
(D) Discharge, dismissal, retrenchment or is meant
otherwise termination of services of an For the guarding
individual workman the interest of labour
40. The ceiling on wage or salary under the pay- against the
ment of bonus act 1965 is exploitations of
employer
(A) Rs 2,500 (B) Rs 3, 500
(b) The labour (ii) Placating Theory
(C) Rs 4,500 (D) Rs 6,500
Welfare
41. “A desirable state of existence comprehend- philosophy
ing physical, mental, moral and emotional Exposes
health as well being” is the theme of which The cause of
concept of labour welfare? the emphatic
(A) Social Concept consideration by
(B) Total Concept the employer of
(C) Relative concept employee well
(D) Positive concept being
42. Assertion (A) : Labour welfare is relative to (c) The employer (iii) Policing theory
time and space. has to set out a
Reason (R): It shall be universal and per- portion of the
ceptual. Profits for the
benefits of the
(A) Assertion and Reason are right
employees
(B) Assertion is wrong but Reason is Right
(d) Labour welfare (iv) Philanthropic
(C) Both Assertion and Reason are wrong is provided for theory
(D) The Assertion is right but Reason is pacifying
wrong the agitating
43. Minimum condition of welfare is explained working class
by Codes :
(A) Dr Akykriod formula (a) (b) (c) (d)
(B) Subsistence theory (A) (ii) (iv) (iii) (i)
(C) Both (A) & (B) (B) (iii) (iv) (i) (ii)
(D) None of the above (C) (iii) (i) (ii) (iv)
44. Which of the following is not a principle of (D) (iv) (ii) (iii) (i)
labour welfare 46. Labour is not a commodity”- is the asser-
(A) The principle of uniformity tion made by
(B) The principle of coordination (A) The declaration of Philadelphia
(C) The principle of coordination and inte- adopted by 26th session of ILO
gration (B) The Magna Carta
(D) The principle of timeliness (C) The Constitution of India
45. Match the following (D) The International Labour Conference.
List-I List-II 47. Match the following
(Theme) (Theory) Concept Propagators
(a) The labour (i) Trusteeship (a) Industrial (i) Karl MARX
welfare theory Democracy
(b) Industrial (ii) Robert Owen 49. Match the following

Citizenship Theory of wages Propagators
(c) Class Conflict (iii) Peter. F. Drucker (a) Wage fund (i) John Bates Clark
(d) Welfare (iv) Sydney and theory
Movement Beatrice Webb (b) Marginal (ii) John Davidson
Codes : productivity
(a) (b) (c) (d) theory
(A) (iii) (i) (ii) (iv) (c) Bargaining (iii) John Stuart Mill
theory
(B) (iv) (iii) (i) (ii)
(d) Investment (iv) Gilelmen
(C) (ii) (i) (iv) (iii)
theory
(D) (ii) (iv) (i) (iii)
Codes :
48. Assertion (A): Industrial Labour in India has
(a) (b) (c) (d)
been Migratory
(A) (ii) (iv) (i) (iii)
Reason (R): Driving forces in migration
comes almost entirely from one end of the (B) (iii) (i) (ii) (iv)
channel, that is village end (C) (iv) (ii) (iii) (i)
(A) Both Assertion and Reason are wrong. (D) (i) (iii) (ii) (iv)
(B) Assertion is wrong but Reason is Right 50. The “marginal discounted product of labour
(C) The Assertion is right and Reason is “as a modified version of marginal produc-
also right tivity theory was advanced by
(D) The Assertion is right but Reason is (A) Tausig (B) Kalecki
wrong (C) Ricardo (D) Adam Smith
ANSWERS
1. (C) 2. (C) 3. (C) 4. (A) 5. (D) 6. (B) 7. (C) 8. (C) 9. (D) 10. (B)
11. (C) 12. (D) 13. (B) 14. (C) 15. (B) 16. (C) 17. (A) 18. (B) 19. (A) 20. (C)
21. (D) 22. (C) 23. (C) 24. (A) 25. (C) 26. (C) 27. (C) 28. (D) 29. (B) 30. (A)
31. (B) 32. (C) 33. (D) 34. (D) 35. (D) 36. (B) 37. (C) 38. (D) 39. (D) 40. (B)
41. (B) 42. (D) 43. (C) 44. (A) 45. (B) 46. (A) 47. (B) 48. (C) 49. (B) 50. (A)
December, 2012
PAPER-III
Note : This paper contains seventy five (75) objective type questions, each question carrying two (2)
marks. Attempt all the questions.
1. Match the following employees and organizations and provides

List – I List – II input for other processes through these
(Propagators) (Contributions) means
a. Ivan Pavlov Theory i. Social Learning (A) Identification, measurement, manage-
b. B.F. Skinner Model ii. S-O-B-C. ment.
c. Albert iii. Classical (B) Assessment, direction, development.
Bandura Conditioning (C) Recruitment, Selection, Onboarding.
d. Freud Luthans iv. Operant (D) Skill, effort, responsibility.
Conditioning 5. The amount sufficient to enable a worker to
Codes : live in reasonable comfort, having regard to
a b c d all obligations to which an average worker
(A) i iii iv ii would ordinarily be subject to
(B) ii iv iii i (A) Minimum Wage
(C) iii iv i ii (B) Fair Wage
(D) iv ii iii i (C) Living Wage
2. ‘Case of Schimdt’ is associated with which (D) Nominal Wage
School of Management thought ? 6. Technique of drawing conclusions from a
(A) Human Relations School candidate’s hand writing about future per-
(B) Behavioural School formance in a role is
(C) Systems Approach (A) Graphology
(D) Scientific Management (B) Physiognomy
(C) Phrenology
3. Arrange the following systems in the right
order on the managerial style continuum (D) Astronomy
suggested by Rensis Likert 7. Which of the following is method of Union
(a) Consultative recognition ?
(b) Benevolent Authoritative (A) Secret Ballot
(c) Exploitative Authoritative (B) Membership Verification
(d) Joint decision-making (C) Check-off System
(A) c, b, a, d (B) c, a, b, d (D) All the above
(C) b, a, c, d (D) c, d, b, a 8. Find out the approach which does not in-
4. Performance Appraisal is a primary human clude industrial relations
resource management process that links (A) Psychological approach
(B) Sociological approach
(C) Human relations approach 13. Which of the following is not a method of
(D) Physiological approach social security ?
9. Workers do join Trade Unions : Find out the (A) Social Assistance (B) Social Action
incorrect reason out of the following (C) Social Insurance
(A) To attain economic security (D) Mutual Assistance
(B) To improve bargaining power 14. Which of the following statements about
(C) To ventilate their grievances workers’ participation in Management in
(D) To satisfy their family needs India is not true ?
10. Match the following (A) It is a part of the 20 point Economic
programme.
List – I List – II
(Unions) (Functions) (B) It is provided in the Directive Principles
of State Policy.
a. Craft i. Associations of
Union workers or different (C) It is made a Constitutional provision
categories under the 42nd Amendment Act.
(D) It is a justiciable right of the workers.
b. General ii. Based on craft
Union non-managerial 15. Who has given the concept of ‘Core compe-
personnel tence’ ?
c. Industrial iii. Either unionization (A) Sumantra Ghosal & C.A. Bartlett
Union of the same industry (B) T. Deal and A. Kennedy
or different industry. (C) C.K. Prahalad and G. Hamel
d. Federation iv. Unionisation of (D) C.A. Forehand and B. Von Gilnev
workers any 16. Who has advanced the Goal setting theory
region or any job of Performance Management ?
occupation (A) E.A. Locke & Gary Lutham
Codes : (B) F. Trompenaavs and Charles Hamp
a b c d (C) R. Tung and Arthur Anderson
(A) ii iv i iii (D) J.C. Usunier and P.N. Gharvi
(B) ii i iii iv 17. Match the following :
(C) iv i ii iii List – I List – II
(D) i ii iii iv (Authors) (Books)
11. Who coined the term ‘informal sector’? a. Tom Peters i. The Future
(A) Keith Davis & Waterman Shock
(B) Amartya Sen b. Thomas ii. The Revolutionary
(C) Mahabub Ul Haq Friedman Wealth
(D) Keith Hart c. Alvin Tofler iii. The World is flat
12. Reducing the number of employees at opera- d. Heidi & iv. In search of
tional level and reorganizing the work sys- Alvin Tofler Excellence
tem in order to attain greater productivity. Codes :
(A) Downsizing a b c d
(B) Manpower inventory (A) iv ii iii i
(C) Manpower forecasting (B) i iv ii iii
(D) All the above (C) iv iii i ii
(D) iii iv ii i
18. Who has advance the PDCA cycle of Qual- (C) Regiocentric
ity Management ? (D) Ethnocentric
(A) Joseph M. Juran 23. Find out the characteristics of collective bar-
(B) W. Edwards Deming gaining which is not applicable;
(C) Kaoru Ishikawa (A) It is a collective process.
(D) Phillip Crosby (B) It is a flexible process.
19. Which of the following statements about (C) It is not a bipartile process.
I.L.O. is not true ? (D) It is interdisciplinary system.
(A) I.L.O is a tripartite body. 24. Find out the one which is not an element of
(B) I.L.O was established in 1919. employee empowerment
(C) I.L.O passes only recommendations. (A) Belief system and trust
(D) I.L.O conventions are mandatory for (B) Purposefulness
those countries which ratify them. (C) Arbitrariness
20. Match the following contributions to TQM (D) Self sufficiency or Competency
with the contributors 25. Which of the following is not a factor of
List – I List – II emotional intelligence ?
(Contributors) (Contributions) (A) Ability
a. Walter A. i. Concept of Internal (B) Reason
Shewart Customer
(C) Emotion
b. Joseph M. ii. Product Design
(D) Thinking without feeling
Juran Quality
26. Find out the origin of the statement in a so-
c. Kaoru iii. Statistical
cialist democracy labour is a partner in the
Ishikawa control charts
common task of development, should par-
d. Genichi iv. Quality as
ticipate in it with enthusiasm.
Taguchi ‘fitness for use’
(A) Constitution of India
Codes :
(B) Directive principles of State Policy
a b c d
(C) Industrial Policy Resolution 1956
(A) ii i iii iv
(D) Royal Commission on Labour
(B) iv iii i ii
(C) ii iii i iv 27. The First Indian Trade Union led by women
was
(D) iii iv i ii
(A) A.I.T.U.C. (B) I.N.T.U.C.
21. Power distance, uncertainty avoidance, in-
(C) H.M.S. (D) C.I.T.U.
dividualism and masculinity as dimensions
of cross-cultural comparative model is given 28. The first commission to recommend
by tripartism consultation in India was
(A) Kluckhohn & Strodthbeck (A) The First National Commission on
(B) Geert Hofstede Labour
(C) Andres Lauvent (B) The Second National Commission on
Labour
(D) Hall and Trompenaar
(C) The Royal Commission on Labour
22. Which of the following organizations are
(D) The Indian Labour Conference
world oriented ?
29. India ratified I.L.O. Convention No. 144 on
(A) Geocentric
tripartite consultation among government,
(B) Polycentric
employer’s and worker’s representatives in
(A) 1968 (B) 1958 36. Who proposed that industrial relations ac-
(C) 1978 (D) 1988 tivities take place among three principal
30. A Joint Consultative Board (J.C.B.) of indus- social partners at three levels ?
try and labour was set up in 1951 with the (A) John T. Dunlop
initiative of (B) Richardson, J.H.
(A) V.V. Giri (C) Kochan, T.A. et.al
(B) G.L. Nanda (D) Clark Kerr
(C) Morarji Desai 37. Arrange the following steps involved in es-
(D) Jagjivan Ram tablishing a career development system in
31. Three tier framework of industrial relations proper sequence
was proposed by (a) Vision (b) Needs
(A) Kochan, T.A., et. al (c) Action plan (d) Results
(B) Richardson J.H. (A) d, c, b, a (B) b, a, c, d
(C) Clark Kerr (C) b, d, a, c (D) c, a, b, d
(D) John T. Dunlop 38. Human values in regard to Management
32. A system of industrial relations where so- Development do not include
cial and labour issues are discussed between (A) Dignity and forgiveness
trade unions and management at enterprise (B) Arrogance and anger
level is (C) Gratitude and gentleness
(A) Bipartism (D) Humility and Honesty
(B) Tripartism 39. Management development is concerned
(C) Social dialogue with learning of
(D) None of the above (A) Mechanical skills
33. The relations between government and (B) Specific job skills
transnational corporations are divided into (C) Conceptual and creative skills
liberal, neo-mercantilist and neo-imperial- (D) All the above
ist categories by 40. According to Robert L. Katz, the right se-
(A) Richardson, J.H. quence of relative importance of various
(B) Clark Kerr managerial skills from top to bottom is
(C) Kochan, T.A., et.al (a) technical (b) human
(D) John T. Dunlop (c) conceptual
34. Which act requires employers in industrial (A) c, b, a (B) a, b, c
establishments to define the conditions of (C) c, a, b (D) b, c, a
employment ? 41. The concept of management by objectives
(A) The Factories Act, 1948 was given by
(B) The Industrial Disputes Act,1947 (A) Peter F. Drucker
(C) The Industrial Employment (standing (B) Luther Gulick
orders) Act, 1946 (C) Rensis Likert
(D) The Trade Union Act, 1926 (D) Blake and Mouton
35. Who identified the types of unions as busi- 42. OCTAPACE culture means
ness, predatory, dependent and friendly ?
(A) Openness-cooperation-Truth-Authen-
(A) Roberts, B.C. (B) Robert F. Hoxie ticity-Proaction-Autonomy-Collabora-
(C) Kirkaldy, H.S. (D) Perlman Selig tion-Experimentation
(B) Openness-Confrontation-Trust-Au- (A) Cost leadership strategy
tonomy-Proaction-Authority-Collabo- (B) Focus strategy
ration-Experimentation (C) Differentiation strategy
(C) Openness-Confrontation-Trust-Au- (D) All the above
thority-Proaction-Autonomy coopera-
49. Which one is not a part of M.C. Kinsy’s 7’s
tion-Experimentation
frame work ?
(D) Openness-Confrontation-Trust-Au-
(A) Standards (B) Structure
thenticity-Proaction-Autonomy-Col-
laboration-Experimentation (C) Skills (D) Strategy
43. Empowerment means authority to make de- 50. A corporate wide pay plan that uses a struc-
cisions in ones area of operation tured formula to allocate a portion of annu-
al company profits to employees is known
(A) by taking approval from the senior
as
(B) without having to get approval from
(A) Gain sharing (B) Profit sharing
anyone else
(C) ESOPS sharing (D) All of the above
(C) without caring for the consequences
51. Who has called the POSDCORB a ‘folklore’?
(D) All the above
(A) Michael Armstrong
44. Self perceived talents, motives and values
(B) Michael Poole
that influence career of an individual are
known as (C) Rosemary Stewart
(A) Career anchors (D) Henry Mirzberg
(B) Career plans 52. Who has called the scientific management
(C) Career aims a ‘rabble hypothesis’?
(D) None of the above (A) Peter F. Drucker
(B) Elton Mayo
45. Who has advanced the Bottom of the Pyra-
mid concept ? (C) Douglas McGregor
(A) Garry Dessler (D) None of these
(B) Peter Drucker 53. ‘Red hot stove’ rule of disciplinary action
(C) C.K. Prahlad was suggested by
(D) Michael Porter (A) Douglas Mc Gregor
46. Which one is not a general concept of T.Q.M. (B) Dale Yader
? (C) Richard P. Calhoon
(A) Continuous Improvement (D) Fred Luthans
(B) Team Work 54. ‘Model Grievance Procedure’ is given in the
(C) Strategy (A) Industrial Disputes Act
(D) Quality Education (B) Employee State Insurance Act
47. Which one of the following is not an interper- (C) Industrial Employment (standing or-
sonal role identified by Henry Mintz-berg ? ders) Act
(A) The Figure head role (D) Code of Discipline
(B) The Leader role 55. Which of the following is a reason for sup-
(C) The Liason role porting a wider span of control ?
(D) The Resource – allocator role (A) To reduce opportunities for delegations
(B) To have tighter control within the
48. Which one is part of Michael Porter’s ge-
neric strategies ? organisation
(C) To increase contact between managers b. Principle of ii. Robert Owen

and employees Social Justice
(D) To reduce a process of delaying c. Principle of iii. Payment of
56. A manager may delegate any of the follow- Regulation Gratuity Act
ing except d. Principle of iv. The Philadelphia
(A) Authority (B) Work load Social Security Charter
(C) Responsibility (D) None of the above Codes :
57. Which of the following is Herzberg’s hy- a b c d
giene factors ? (A) ii iv i iii
(A) Recognition at work place (B) ii iv iii i
(B) Reasonable salary (C) iv ii iv i
(C) Responsibility for work (D) iv iii i ii
(D) Sense of achievement 62. The basic postulates on which the ILO stan-
58. During whose prime ministership the New dards lie are
Economic Policy was introduced in India ? (A) Labour is not a commodity
(A) Indira Gandhi (B) Freedom of expression and of
(B) Rajiv Gandhi association are essential to sustained
progress
(C) P.V. Narasimha Rao
(C) Poverty anywhere constitutes danger to
(D) A.B. Vajpayee
prosperity everywhere
59. Arrange the needs in the order given by (D) All the above
Abraham Maslow in his need hierarchy
theory of motivation. 63. Which of the following statements is / are
true ?
(a) Esteem need
(a) Labour Legislation is part of Social leg-
(b) Self-actualization need
islation.
(c) Physiological need
(b) Social Legislation is part of Labour Leg-
(d) Safety needs islation.
(e) Social needs (c) Government is the regulatory authority
(A) d, a, c, b, e in case of Social Legislation and Labour
(B) c, d, e, a, b Legislation.
(C) a, d, c, b, e (d) Civil Law judgement is based on earlier
(D) c, e, d, a, b judgements and labour law judgement
60. What is the limit of the salary of the supervi- is based on workers welfare.
sor to be covered under the I.D. Act, 1947 ? (A) All the statements are true.
(A) Rs. 1200 per month (B) (b) is true.
(B) Rs. 1600 per month (C) (d) is true.
(C) Rs. 2500 per month (D) (a), (c) and (d) are true.
(D) Rs. 3500 per month 64. The article in Indian Constitution that im-
61. Match the following poses prohibition on traffic in human be-
List – I List – II ings, beggar and other similar forms of
forced labour is
a. Principle of i. The Trade (A) Article 19 (B) Article 23
Protection Union Act, 1926
(C) Article 32 (D) Article 45
and Welfare
65. The Industrial Employment (standing or- (B) Creche is provided under the Factories
ders) Act, 1946 applies to every establish- Act, 1948.
ment employing (C) 500 workers are employed in the fac-
(A) 100 workmen tory under the Factories Act, 1948.
(B) 150 workmen (D) The Workmen’ Compensation Act, 1923
(C) 150 workmen on any day preceding 12 is applicable to the factory.
months 70. The first factory commission was appointed
(D) 150 workmen on any day preceding 12 in
months and the government can order (A) 1875 (B) 1881
by application to establishments em- (C) 1885 (D) 1895
ploying less than 100.
71. Under the payment of Bonus Act, 1965, the
66. The following persons are constructed as gross profits derived by an employer from
insider of a registered trade union. an establishment in respect of any account-
(A) Honorary member from the other orga- ing year shall be computed
nization. (A) In case of Banking Company according
(B) Honorary member from other profes- to schedule II and in any other case
sion. schedule I.
(C) Politician who guides the registered (B) In case of Banking Company according
trade union. to schedule I and in any other case
(D) Retired and retrenched members of the schedule II.
trade union. (C) In case of Banking Company and in any
67. Workers’ facilitation centres shall be set up other case schedule I.
by the facilitating agency under the (D) In case of Banking Company and in any
(A) Payment of Bonus Act, 1965 other case schedule II.
(B) Equal Remuneration Act, 1976 72. Which Act provides for the appointment of
(C) Factories Act, 1948 conciliation officers and adjudication au-
(D) The unorganized sector workers’ Social thorities ?
Security Act, 2005 (A) The Factories Act, 1948
68. If the money is due from the employer under (B) The Industrial Disputes Act, 1947
the settlement or award, the workman or his (C) The Trade Unions Act, 1926
assignee can make an application to the (D) None of the above
appropriate government for the recovery 73. The first to introduce the term collective bar-
within the period given below. gaining
(A) One year. (A) Sidney and Beatrice webb
(B) One year and also after the said period (B) Samuel Gompers
of the appropriate government is satis- (C) Clark Kerr
fied that the applicant has sufficient
(D) Robert Hoxie
cause for not making the application
within one year. 74. Find the machinery which is not method of
(C) Two years. settlement of industrial dispute
(D) Three years. (A) consultation
(B) works committee
69. Ambulance room shall be provided if
(C) conciliation
(A) 30 women workers are employed un-
der Maternity Benefit Act, 1965. (D) adjudication
75. Match the following d. World Human iv. World Bank

List – I List – II Development
a. Human Capital i. David Approach
Approach McClelland Codes :
a b c d
b. Socio-Psycholo- ii. UNDP (A) ii iv i iii
gical Approach (B) iii iv ii i
c. Poverty iii. T.W. Scultz (C) iii i iv ii
Alleviation (D) iv ii i iii
Approach
ANSWERS
1. (C) 2. (D) 3. (A) 4. (A) 5. (C) 6. (A) 7. (D) 8. (D) 9. (D) 10. (A)
11. (D) 12. (A) 13. (B) 14. (D) 15. (C) 16. (A) 17. (C) 18. (B) 19. (C) 20. (D)
21. (B) 22. (A) 23. (C) 24. (C) 25. (D) 26. (C) 27. (C) 28. (C) 29. (C) 30. (B)
31. (A) 32. (A) 33. (C) 34. (C) 35. (B) 36. (C) 37. (B) 38. (B) 39. (C) 40. (A)
41. (A) 42. (D) 43. (B) 44. (A) 45. (C) 46. (C) 47. (D) 48. (D) 49. (A) 50. (B)
51. (D) 52. (B) 53. (A) 54. (D) 55. (C) 56. (C) 57. (B) 58. (C) 59. (B) 60. (D)
61. (A) 62. (D) 63. (D) 64. (B) 65. (D) 66. (D) 67. (D) 68. (B) 69. (C) 70. (A)
71. (B) 72. (B) 73. (A) 74. (A) 75. (C)
June, 2013
PAPER-II
all the questions.
1. Who is regarded as the father of Scientific 8. Arrange the following steps of Job analysis
Management ? in proper sequence :
(A) Albert Bandura (a) Prepare the job description report.
(B) Louis D. Brandies (b) Select the job.
(C) Frederick Winslow Taylor (c) Find out the requirements for each part
(D) Elton Mayo of the job.
2. The Principle of Equifinality operates (d) Break the job into various parts.
(A) within the internal environment Codes :
(B) within the external environment (A) (b), (a), (d), (c) (B) (b), (c), (d), (a)
(C) without environment (C) (b), (d), (c), (a) (D) (d), (c), (b), (a)
(D) hostile environment 9. Which of the following is not a factor for
3. Max Weber developed a theory of wage determination ?
(A) Autocratic Management (A) Cost of living (B) Prevailing wages
(B) Democratic Management (C) Purchasing power of people
(C) Bureaucratic Management (D) Productivity
(D) Free Style Management 10. Which of the following is not a part of disci-
plinary action ?
4. Grapevine is a type of
(A) Warning (B) Suspension
(A) Formal Communication
(C) Transfer (D) Discharge
(B) Written Communication
(C) Lateral Communication 11. The goal of HRD system is to develop
(D) Informal Communication (A) the capabilities of each employee as an
individual.
5. Decision-making process is guided by
(B) the capabilities of each individual in
(A) Policy (B) Procedure relation to his or her present role.
(C) Programme (D) Strategy (C) the capabilities of each employee in re-
6. Ten ‘C’ model of HRM architect was ad- lation to his or her expected future roles.
vanced by (D) all the above
(A) Katz and Kahn (B) Alan Price 12. Which one is not a part of HRD system ?
(C) Chester I. Bernard (D) Max Weber (A) Career Planning
7. Recruitment means (B) Manpower Planning
(A) Total number of inquiries made (C) Training
(B) Total number of applications received (D) Organizational Development
(C) Total number of persons short listed 13. The other name of Sensitivity Training is
(D) Total number of selections made (A) T-Group Training
(B) Brainstorming (A) Individualism Vs Collectivism

(C) In-basket Exercise (B) Power Distance
(D) Managerial Grid Training (C) Uncertainty Avoidance
14. A small voluntary group of employees do- (D) Quality Vs Quantity of Life
ing similar or related work who meet regu- 19. Arrange the following phases of group for-
larly to identify, analyse and solve product mation in their right sequence :
quality problems and to improve general (a) forming (b) norming
operations is known as (c) performing (d) storming
(A) Task Group (B) Kaizen Groups (e) adjourning
(C) Quality Circles (D) Informal Groups Codes :
15. Which of the following is not an OD tech- (A) (a), (d), (c), (b), (e)
nique ? (B) (a), (d), (b), (c), (e)
(A) Sensitivity Training (C) (a), (b), (d), (c), (e)
(B) Delphi Technique (D) (a), (c), (d), (b), (e)
(C) Survey Feedback
20. Assertion (A) : Psychological contract is an
(D) Grid Training unwritten agreement that exists between
16. Which of the following statements about employees and employers setting out mu-
Organizational Behaviour is wrong ? tual expectations.
(A) It is an inter-disciplinary subject. Reason (R) : Role expectations are influenced
(B) It believes that individual, group and by role perception of one’s own self and oth-
organization are subsystems of OB. ers and cannot always be formally defined
(C) Its explanation find roots in systems as excepting in setting out role identity.
well as contingency theories. Codes :
(D) It deals only with prediction of human (A) (A) is right and (R) logically explains
behaviour at work. the (A).
17. Match the following concepts of OB with (B) (A) is wrong and (R) does not explain
their proponents : the (A).
Concept of OB Proponents (C) (A) is right and (R) attributed is wrong.
a. Classical i. Albert Bandura (D) Both the (A) and (R) are wrong.
Conditioning 21. Which of the following is not a field of in-
b. Operant ii. Ivan Pavlov dustrial relations ?
Conditioning (A) Study of workers and their trade unions
c. Social Learning iii. Sigmund Freud (B) Study of consumers and their associa-
Theory tions
d. Psycho iv. B.F. Skinner (C) Management and their associations
Analytical Theory (D) State and their institutions
Codes : 22. Which of the following is not a determinant
a b c d factor of industrial relations ?
(A) ii i iii ii (A) Institutional factors
(B) iii iv ii i (B) Economic factors
(C) ii iv i iii (C) Technological factors
(D) ii iii i ii (D) Social stratification factors
18. Cultural Diversity explained by Greet 23. Which of the following cannot be said to be
Hofstede has four components. Which of the an effect of industrial disputes ?
following is not a part of it ? (A) High Productivity, Peace and Profit
(B) High Labour Turnover 30. Match the following :
(C) Higher rate of Absenteeism National Labour Year of
(D) Higher rate of Man-days lost Federations Formation
24. Which of the following has not been pro- (a) All India Trade Union i. 1948
vided under the Code of Discipline ? Congress
(A) Unfair Labour Practices (b) Indian National Trade ii. 1970
(B) Recognition of Trade Unions Union Congress
(C) Grievance Procedure (c) Hind Mazdoor Sabha iii. 1920
(D) Multinational Companies (d) Centre of Indian iv. 1947
Trade Unions
25. Who among the following propounded the
Codes :
theory of industrial democracy ?
a b c d
(A) Allan Flanders
(A) iii ii iv i
(B) Neil W. Chamberlain
(B) iii i iv ii
(C) Sydney & Beatrice Webbs
(C) iii iv i ii
(D) John T. Dunlop
(D) ii i iii iv
26. Which of the following was the first trade
union organised in India ? 31. Which of the following is not a type of
Labour Legislation ?
(A) Madras Labour Union
(A) Regulative Legislation
(B) Textile Labour Association
(B) Protective Legislation
(C) Bombay Millhands Association
(C) Uniformity Legislation
(D) Kamgar Hitvardhak Sabha
(D) Social Security Legislation
27. Functional types of trade unions were ad-
vocated by 32. The first Factory Legislation in India was
enacted in
(A) Selig Perlman (B) Robert F. Hoxie
(A) 1860 (B) 1881
(C) G.D.H. Cole (D) S.H. Slitcher
(C) 1882 (D) 1891
28. The Inter-Union Code of Conduct was
evolved in the year 33. Which of the following benefits have not
been provided under the Employee’s State
(A) 1956 (B) 1957 (C) 1958 (D) 1959
Insurance Act, 1948 ?
29. Match the following : (A) Sickness Benefit
Type of the Union Characteristics (B) Unemployment Allowance
a. Craft Union i. Union of Unions (C) Childrens’ Allowance
b. General Union ii. Wage earners in a (D) Disablement Benefit
particular enter-
prise 34. Before the enactment of Employees’ Com-
pensation Act, 1923, workers suffering a
c. Industrial Union iii. Any wage earner
personal injury in course of employment
d. Federation iv. Workers engaged claimed damages under
in similar nature
(A) Economic Law (B) Social Law
of work
(C) Common Law (D) None of the above
Codes :
a b c d 35. The Royal Commission on Labour exam-
ined which of the two States’ Maternity Ben-
(A) iv iii ii i
efit Acts and recommended enactment of
(B) iv ii iii i similar laws all over the country ?
(C) iii iv ii i (A) Bombay and Madhya Pradesh
(D) ii iii i iv (B) Madras and Mysore
(C) Bihar and Bengal (D) Certifying Officers and appellate au-
(D) Punjab and Assam thorities shall have powers of Civil
36. What will be the minimum number of work- Courts.
ers required for organizing a trade union 41. Which of the following statements with re-
for registration according to the latest gard to labour welfare is not correct ?
amendment under the Trade Unions’ (A) Welfare is a social concept.
Act,1926 ? (B) Welfare is a relative concept.
(A) 7 workers (B) 10 % (C) Welfare is a positive concept.
(C) 100 (D) 10% or 100 or 7 (D) Welfare is an absolute concept.
37. The minimum subscription rate for members 42. Which of the following is not an intramural
of trade unions of rural workers shall not be welfare facility ?
less than (A) Canteen
(A) Rs. 12 per annum (B) Workmen safety measures
(B) Rs. 3 per annum (C) Housing facility
(C) Rs. 1 per annum (D) Drinking water facility
(D) No such provision 43. Match the following :
38. Which of the following statements about the Principles of Theme
definition of industry as given in the Indus- Welfare Work
trial Disputes Act, 1947 is not right ?
a. Principle of i. When welfare is
(A) It means any business, trade, undertak- Coordination given for a felt
ing, manufacture or calling of employ- or Integration need at the oppor-
ers. tune moment.
(B) It includes any calling, service, employ- b. Principle of ii. When welfare is
ment, handicraft or industrial occupa- Association treated as a total
tion or avocation of workmen. concept and not a
(C) This definition has been revised in 1982 piece-meal
in a leading case of 1978. programme.
(D) The revised definition has been imple- c. Principle of iii. Work with
mented after due notification. Accountability individual is motto
39. ‘First come last go and last come first go’ is of this principle.
the principle of d. Principle of iv. Welfare is to be
(A) Lay-off (B) Closure Timeliness satisfactorily uti-
(C) Retrenchment (D) Dismissal lized is the motto of
40. Which of the following statements is not true this principle.
regarding Industrial Employment (Stand- Codes :
ing Orders) Act, 1946 ? a b c d
(A) Within 6 months from the date of appli- (A) ii iv iii i
cation of the Act, the employer shall (B) ii iii iv i
submit to the Certifying Officer 5 copies (C) iii iv ii i
of the draft standing orders. (D) iv ii i iii
(B) There is a schedule which sets out the 44. “The factory and industrial workplaces pro-
matters to be incorporated in the stand- vide ample opportunities for owners and
ing orders. managers of capital to exploit workers in
(C) There is no provision to refer the draft an unfair manner. This cannot be allowed
standing orders to the Unions/Work- to continue” is the philosophy of which
men by the Certifying Officer.
theory of Labour Welfare ? (B) Low degree of unionization rate
(A) Placating Theory (C) Lack of mobility
(B) Functional Theory (D) Homogeneous in nature
(C) Policing Theory 48. Which of the following is not a type of wage
(D) Religious Theory differentials ?
45. “A place for everything and everything in (A) Occupational
its place” is the principle that governs (B) Geographical
(A) Placement (C) Industrial
(B) Housekeeping (D) Social
(C) Officekeeping 49. The Concepts of Wages like Minimum
(D) Floor Management Wage, Fair Wage and Living Wages were
46. Which of the following is not a peculiarity given by
of labour market ? (A) Royal Commission on Labour
(A) Labour market is normally local in na- (B) First National Commission on Labour
ture. (C) Committee on Fair Wages
(B) The number of buyers is less than the (D) Adarkar Committee
number of sellers. 50. Which of the following theories of wages
(C) Labour is less mobile. was propounded by Karl Marx ?
(D) Worker can sell not only his own labour (A) Subsistence Theory
but also the labour of his fellow work- (B) Surplus Value Theory
ers. (C) Wage Fund Theory
47. Which one of the following is not a charac- (D) Residual Claimant Theory
teristic feature of Indian labour force ?
(A) High rate of absenteeism and labour
turnover
ANSWERS
1. (C) 2. (B) 3. (C) 4. (D) 5. (A) 6. (B) 7. (B) 8. (C) 9. (C) 10. (C)
11. (D) 12. (B) 13. (A) 14. (C) 15. (B) 16. (D) 17. (C) 18. (D) 19. (B) 20. (A)
21. (B) 22. (D) 23. (A) 24. (D) 25. (C) 26. (A) 27. (B) 28. (C) 29. (A) 30. (C)
31. (C) 32. (B) 33. (C) 34. (C) 35. (A) 36. (D) 37. (C) 38. (D) 39. (C) 40. (C)
41. (D) 42. (C) 43. (B) 44. (C) 45. (B) 46. (D) 47. (D) 48. (D) 49. (C) 50. (B)
June, 2013
PAPER-III
1. The process of comparing actual perfor- (A) Shop Level Councils

mance with standards and taking necessary (B) Joint Level Councils
corrective action is called (C) Unit Level Councils
(A) Controlling (B) Communicating (D) Industrial Level Councils
(C) Co-operating (D) Co-ordinating 8. Who has described initiation and imple-
2. An aggregate of several related action plans mentation as the two stages of organiza-
that have been designed to accomplish a tional innovation ?
mission within a specified time period is (A) John Child (B) Zaltman et. al
known as (C) Manz et. al (D) N.R. Anderson
(A) Project (B) Policy
9. Which of the following cannot be said to be
(C) Process (D) Programme a trade union in true sense ?
3. Principle of direct contact, reciprocal rela- (A) Craft Union (B) Industrial Union
tionships and principle of continuity as (C) Company Union (D) Federation
principles of coordination are advanced by
10. The name of which of the following legisla-
(A) Luther Gullick (B) Henry Fayol
tions has been recently changed ?
(C) Mary Parker Follette
(A) Workmens’ Compensation Act
(D) Havold Koontz
(B) Employees’ State Insurance Act
4. Which one of the following is not a function (C) Maternity Benefit Act
of the Personnel Department ?
(D) Payment of Gratuity Act
(A) Employment Activities
11. Which of the following organizations coor-
(B) Manpower Adjustment
dinates and controls the working of volun-
(C) Grievance Handling tary welfare agencies in India ?
(D) Quality Management (A) ESI Corporation
5. Which one of the following is not time based (B) EPF Organisation
incentive plan ? (C) Central Social Welfare Board
(A) Halsey Plan (B) Merrick Plan (D) Chief Labour Commissioner (Central)
(C) Rowan Plan (D) Emerson Plan
12. What is the name of the experiment which
6. The concept of “End spurt” is associated marked the beginning of Labour Welfare ?
with which of the following ? (A) Hawthorne Experiment
(A) Job satisfaction (B) Morale (B) New Lamark Experiment
(C) Monotony (D) Fatigue (C) Philadelphia Experiment
7. Which of the following is not a part of the (D) Mule Spinning Department Experiment
Scheme of Workers’ Participation in Man-
13. In which of the following we notice under-
agement in India ?
employment in a large measure ?
(A) Coal Industry (B) Textile Industry 20. Which of the following practices lead to de-
(C) Banking (D) Agriculture mocracy in trade unions ?
14. Which of the following components is not (A) Regular meeting
true as a part of unemployment definition ? (B) Fair and timely elections
(A) Physically fit to work (C) Audit of accounts of union
(B) Mentally fit to work (D) All the above
(C) Ability to discharge the work most effi- 21. Which of the following is not a mode of
ciently Workers’ Participation in Management ?
(D) But, unable to find work (A) Works Committee
15. The special provisions relating to Lay-off, (B) Employee Stock Option Plan
retrenchment and closure as given under the (C) Joint Management Council
Industrial Disputes Act, 1947 apply to those (D) Joint Committee for Policy Formulation
establishments where at least 22. Which of the following is not a bipartite
(A) 100 workers are employed. body ?
(B) 50 workers are employed. (A) Works Committee
(C) 200 workers are employed. (B) Canteen Committee
(D) 500 workers are employed. (C) Safety Committee
16. Which of the following is not an industrial (D) Standing Labour Committee
action in India ? 23. Which one of the following is not a tripar-
(A) Strike (B) Lockout tite body ?
(C) Picketing (D) Mass casual leave (A) Indian Labour Conference
17. The Industrial Disputes Act, 1947 requires (B) Standing Labour Committee
advance notice to be given for going on strike (C) Joint Management Council
and lockout in public utility services only. (D) Minimum Wages Advisory Board
Which of the following specifies serving of 24. Under whose regime as Union Labour Min-
notices for strike and lockout in nonpublic ister, majority of codes were evolved by the
utility services also ? Central Government ?
(A) Inter-Union Code of Conduct (A) V.V. Giri (B) Guljarilal Nanda
(B) Code of Discipline in Industry (C) Khandubhai Desai
(C) Code of Efficiency and Welfare (D) Bindheswari Dubey
25. Which of the following statements about
18. Which of the following bargaining is based Joint Management Councils is wrong ?
on workers’ contribution to productivity ? (A) The scheme of Joint Management Coun-
(A) Coalition Bargaining cils (JMCs) was formulated by the Cen-
(B) Concession Bargaining tral Government.
(C) Productivity Bargaining (B) It was implemented in all industrial es-
(D) None of the above tablishments in the country.
19. Which of the following labour legislations (C) It was not implemented through any
in USA made unions more powerful than statute.
management ? (D) It consisted of representatives of labour
(A) Wagner Act and management.
(B) Taft-Hartley Act 26. Which of the following can be said to be an
(C) Narris-LeGuaradia Act Industrial Relations body/machinery in
(D) Landrum-Griffin Act USA ?
(A) Ministry of Labour
(B) National Labour Relations Board 31. Which of the following is an outcome of col-
(NLRB) lective bargaining ?
(C) National Productivity Council (A) Award of Labour Court
(D) AF of L & CIO. (B) Award of Tribunal
27. The Advisory Conciliation and Arbitration (C) Arbitration Award
Services (ACAS) which was provided un- (D) Consent Award
der the Industrial Relations Act of 1975 of 32. Assertion (A) : The policy of tripartitism on
Great Britain provides for which the Indian Industrial Relations Sys-
(A) Conciliation and Arbitration of dis- tem rested, has failed to yield the desired
putes results.
(B) Disposal of dispute by collective bar- Reason (R) : The parties to the tripartite bod-
gaining ies have resorted to conflict measures and
(C) Matter to be taken to adjudication adjudication.
(D) None of the above Codes :
28. ‘Closed shop’ means which of the following? (A) (A) is right and (R) is wrong.
(A) Joining union first and then employ- (B) (A) is wrong and (R) is right.
ment. (C) (A) is right and (R) is the right explana-
(B) Employment first and joining union tion of (A).
later. (D) Both (A) and (R) are wrong.
(C) Not joining any union after employ- 33. Majority of industrial disputes are settled
ment. by which of the following machinery in
(D) A shop which is closed. India ?
29. Under which labour legislation in India the (A) Conciliation Machinery
provision of check-off has been accepted ? (B) Arbitration Machinery
(A) Industrial Disputes Act, 1947 (C) Adjudication Machinery
(B) Trade Unions Act, 1926 (D) None of the above
(C) Payment of Wages Act, 1936 34. Which of the following is the meaning of
(D) Industrial Employment (Standing Or- ‘Cooling off’ period in industrial relations ?
ders) Act (A) Workers to have bath after long hours
30. Match the following : of work with cold water.
List – I List – II (B) Not to be annoyed at the place of work.
a. Royal i. P.B. Gajendra (C) To have a proper spirit of implement-
Commission Gadkar on Labour ing agreements.
b. Labour Investi- ii. Rege (D) The period from serving the notice of
gation Committee strike and the date of resorting to a strike
c. First National iii. Ravindra Verma in order to think coolly whether the
Labour Commission workers should go on a strike or not.
d. Second National iv. J.H. Whitley 35. Which one of the following is not a subject
Labour Commission matter of industrial relations ?
Codes : (A) Trade Union and Collective Bargaining
a b c d (B) Strikes and Lockouts
(A) iv iii ii i (C) Unfair Labour Practices
(B) iv ii i iii (D) Employee Compensation and Welfare
(C) iv iii i ii 36. Safety net provision is a part of which of the
(D) ii iv iii i following ?
(A) Accidents prevention and safety policy b. Business Process ii. C.K. Prahlad &
(B) New economic policy Engineering Gary Hamel
(C) Corporate social responsibility policy c. Balanced iii. Michael Porter
(D) Employee adjustment policy Scorecard
37. Assertion (A): In the post economic reforms d. Core Compet- iv. Michael Hammer
era Indian business houses initially had to ency Model and James
take strong decisions in terms of cost cut- Champy
ting measures and human resource ratio- Codes :
nalization. a b c d
Reason (R) : Economic reforms opened up (A) ii iv iii i
markets and allowed foreign direct invest- (B) iii ii i iv
ment causing the domestic industry to com-
(C) iv ii iii i
pete on uneven level playing ground.
(D) iii iv i ii
Codes :
(A) (A) is right, but (R) attributed is wrong. 42. Which of the following is a force that acts as
stimulant for organizational change ?
(B) (A) is wrong, but (R) is right.
(A) Nature of the workforce
(C) Both (A) and (R) are wrong.
(B) Technology
(D) (A) is right and (R) is attributed is logi-
cal. (C) Economic Shock
(D) All the above
38. During whose tenure as Prime Minister, the
Economic Reforms in India were initiated ? 43. The Japanese 5 ‘S’ model deals with
(A) Smt. Indira Gandhi (B) Rajiv Gandhi (A) Housekeeping
(C) Dr. Manmohan Singh (B) Assembly line production
(D) Dr. P.V. Narasimha Rao (C) Quality assurance
39. Which of the following is not a contributory (D) Cost effective measures
factor for HR outsourcing ? 44. Match the following :
(A) Strategic Reasons List – I List – II
(B) Financial Reasons a. POSDCORB i. Mary Parker
(C) Trade Union Hassels Follette
(D) Competitive Factor b. 14 Principles of ii. Luther Gullick
Management
40. Which of the following statements about
downsizing is not correct ? c. Integration iii. Peter F. Drucker
Theory of
(A) Mergers and Acquisitions are respon-
Management
sible for downsizing.
d. Management by iv. Henry Fayol
(B) Technical upgradation cannot be attrib-
Objectives
uted as a reason for downsizing.
Codes :
(C) Downsizing helps in getting rid of dead-
wood. a b c d
(D) Cost-cutting measure is a reason for (A) ii iii iv i
downsizing. (B) ii i iv iii
41. Match the following : (C) ii iv i iii
Management Propounders (D) iii i iv iii
Strategies 45. Which of the following training
a. ‘5’ forces i. Robert S. Kaplan programmes is meant for a new employee ?
analysis & David P. Norton (A) Sensitivity training
(B) Apprenticeship training 52. The ‘Managerial Grid’ model was devel-
(C) Induction training oped by
(D) In-basket exercise (A) Robert Blake and Jane S. Mouton
46. Which of the following statements is not true (B) Lawler and Porter
about benchmarking strategy of TQM ? (C) Fiedler and Garcia
(A) It is related to the efforts of Kaizen. (D) Hersey and Blanchard
(B) It is related to the raising of criteria for 53. Assertion (A): Structural inertia is an
selection. organisational resistance process to change
(C) It is raising the performance standards because organisations have built in mecha-
of the organization. nism to produce stability.
(D) It is a people driven activity. Reason (R) : People with a high need for
47. Which of the following is not a type of HRM security are likely to resist change because
strategy ? it threatens their feeling of safety.
(A) Task focused strategy Codes :
(B) Development oriented strategy (A) (A) is right and (R) is a correct explana-
tion of (A).
(C) Turnaround HRM strategy
(B) Both (A) and (R) are right, but the (R)
(D) Placating HRM strategy
does not explain the (A).
48. Which of the following is not a ‘lab’ in the (C) Both (A) and (R) are wrong.
sensitivity training, also known as Labora-
(D) (A) is wrong and (R) is right.
tory training ?
(A) Stranger lab (B) Cousin lab 54. Match the following :
(C) Organisational lab List – I List – II
(D) Family lab (a) Ethnocentric i. These organizations
adopt synergistic
49. Which of the following statements about the strategies to function
recent trends in HRM is not correct ? across geographies.
(A) Employer branding is attempted to be (b) Polycentric ii. These organizations
achieved through HRM practices. create an integrated
(B) Competency mapping is a recent trend system with a world
in HRM. wide approach.
(C) Measurement of HR through balanced (c) Regiocentric iii. These are home
scorecard has taken shape. country oriented
(D) Performance and Knowledge Manage- organisations.
ment are not related to strategic HRM. (d) Geocentric iv. Outward oriented
50. Which of the following is not a method of culture where indi-
dealing with resistance to change ? viduals follow the
(A) Education and Communication saying that “When
(B) Participation in Rome, do as Ro-
(C) Facilitation and Support mans”.
(D) Coercion and Punishment Codes :
a b c d
51. Which one of the following statements is
wrong about OD ? (A) ii iv i iii
(A) It is a diagnostic process. (B) iv i iii ii
(B) It is an intervention mechanism. (C) iii iv i ii
(C) It is a punitive mechanism. (D) i iii iv ii
(D) It is a value driven mechanism.
55. The case study method of OD was devel- order to rectify the problems relating to pay-
oped by ment of wages of industrial workers ?
(A) Christopher C. Longdell (A) National Commission on Labour
(B) Eric Berne (B) Royal Commission on Labour
(C) Udai Pareek (D) S.R. Udpa (C) Labour Investigation Committee
56. Which one of the following is not a prin- (D) Adarkar Committee
ciple of labour legislation ? 62. Which one of the following is not a type of
(A) Principle of Protection labour administration machinery in India ?
(B) Principle of Social Justice (A) Central Implementation Machinery
(C) Principle of Social Security and Welfare (B) Industrial Implementation Machinery
(D) Principle of Reasonable Standard of (C) State Implementation Machinery
Living (D) Regional Implementation Machinery
57. Which one of the following is not based on 63. Which one of the following Labour Legisla-
the principle of welfare ? tions provides comprehensive benefits to
(A) Mica Mines Labour Welfare Funds Act industrial workers in India ?
(B) Iron Ore Mines Labour Welfare Funds (A) Employee Provident Funds Act
Act (B) Employees’ Compensation Act
(C) Minimum Wages Act (C) Employees’ State Insurance Act
(D) Dock Workers (Safety, Health, Welfare) (D) Maternity Benefit Act
Act 64. Which of the following statements is not
58. Which part of the Indian Constitution di- correct ?
vides jurisdiction for enactment of Labour (A) India has ratified more than eighty Con-
Legislations ? ventions of I.L.O.
(A) Distribution of Legislative Power (B) Trade Unions Act of 1926 is based on
(B) Directive Principles of State Policy I.L.O. Convention number 87 called Free-
(C) Fundamental Rights dom of Association.
(D) None of the above (C) I.L.O. is a tripartite body.
59. Which Labour Legislation has been enacted (D) Governing Body is an organ of I.L.O.
on the basis of Right to Association as given 65. Under which of the following categories the
under the Fundamental Rights of the Indian Shops and Commercial Establishment Leg-
Constitution ? islations can be included ?
(A) Minimum Wages Act (A) Wage Legislations
(B) Payment of Wages Act (B) Social Security Legislations
(C) Trade Unions Act (C) Working Conditions Legislations
(D) Industrial Disputes Act (D) Welfare Legislations
60. Which of the following cannot be said to be 66. Bonded Labour System (Abolition) Act is the
a factor influencing the growth of Labour result of the ratification by India of which of
Legislations in India ? the following Conventions of I.L.O ?
(A) Rise of Trade Unions (A) Unemployment Convention, 1919
(B) International Labour Organization (B) Forced Labour Convention, 1930
(C) Growth of Humanitarianism (C) Weekly Rest (Industry Convention)
(D) Caste System in India 1921
61. Which one of the following recommended (D) Right of Association (Agriculture) Con-
enactment of a wage legislation in India in vention, 1921
67. The age of dependent for obtaining 72. Which of the following statements is cor-
dependent’s benefit under the Employees rect?
State Insurance Act has now been enhanced (A) There is a statutory provision for recog-
from 18 years to nition of Trade Unions in India at the
(A) 20 years (B) 22 years Central level.
(C) 24 years (D) 25 years (B) There is no statutory provision for rec-
68. Which of the following has not been imple- ognition of Trade Unions in India at the
mented through any legislation at the Na- Central level.
tional level ? (C) Code of discipline provides both for
(A) Joint Management Council Registration and Recognition.
(B) Workers’ Participation in Management (D) There is provision for recognition un-
(C) Recognition of Trade Unions der the Inter- Union Code of Conduct.
(D) None of the above 73. Under which of the following legislations
women avail maternity benefit upto six
69. The Bhopal Gas Tragedy led to an amend-
months ?
ment under which of the following legisla-
tions ? (A) Maternity Benefit Act
(A) Factories Act (B) Employees’ State Insurance Act
(B) Mines Act (C) Both under (A) & (B)
(C) Plantation Labour Act (D) None of the above
(D) None of the above 74. Which of the following legislations apply
to unorganized sector workers in India ?
70. The provision relating to suspension has
been made under which of the following (A) Minimum Wages Act
legislations ? (B) Child Labour (Prohibition and Regula-
(A) Industrial Disputes Act tion) Act, 1986
(B) Trade Union Act (C) Contract Labour (Regulation and Abo-
lition) Act 1970
(C) Industrial Employment (Standing Or-
ders) Act (D) All of the above
(D) None of the above 75. The Factories Act, 1948 requires the appoint-
ment of the ‘Safety Officer’ in factories em-
71. What is the wage limit to be eligible to be
ploying at least
covered under the Employees’ Provident
Funds and Miscellaneous Provisions Act, (A) 250 workers
1952 ? (B) 500 workers
(A) Rs. 6,000 (B) Rs. 6,500 (C) 1000 workers
(C) Rs. 7,000 (D) Rs. 7,500 (D) None of the above
ANSWERS
1. (A) 2. (D) 3. (C) 4. (D) 5. (B) 6. (C) 7. (D) 8. (B) 9. (C) 10. (A)
11. (C) 12. (B) 13. (D) 14. (C) 15. (A) 16. (D) 17. (B) 18. (C) 19. (A) 20. (D)
21. (B) 22. (D) 23. (C) 24. (B) 25. (B) 26. (B) 27. (A) 28. (A) 29. (C) 30. (B)
31. (D) 32. (C) 33. (A) 34. (D) 35. (D) 36. (B) 37. (D) 38. (D) 39. (C) 40. (B)
41. (D) 42. (D) 43. (A) 44. (C) 45. (C) 46. (B) 47. (D) 48. (C) 49. (D) 50. (D)
51. (C) 52. (A) 53. (B) 54. (C) 55. (A) 56. (D) 57. (C) 58. (A) 59. (C) 60. (D)
61. (B) 62. (B) 63. (C) 64. (A) 65. (C) 66. (B) 67. (D) 68. (D) 69. (A) 70. (C)
71. (B) 72. (B) 73. (C) 74. (D) 75. (C)
December, 2013
PAPER-II
all the questions.
1. Match the following : (C) It is not necessary for a system to have a

Thinker Principles boundary
a. Mary Parker i. Co-ordination (D) System transforms inputs into outputs
Follett 5. Which of the following organisations is a
b. Henry Fayol ii. Elements of two-dimensional structure ?
Management (A) Functional structure
c. F.W. Taylor iii. Scientific (B) Matrix structure
methods (C) Line structure
d. Gilbreth and iv. Quantitative (D) Divisional structure
Taylor measurement 6. Job description includes information about
Codes : (A) Job responsibilities, duties and working
a b c d conditions.
(A) i ii iii iv (B) Job responsibilities, duties and worth
(B) iv iii ii i in terms of wage and salary.
(C) iv ii i iii (C) Job responsibilities and qualifications
(D) ii iv iii i for performance.
2. Which one of the following is not the char- (D) Job responsibilities, duties and qualifi-
acteristic of planning ? cations for performance.
(A) It deals with future 7. Differentiation between line and staff func-
(B) It involves selection of particular course tions is necessary because it helps in
of action (A) providing specialized services.
(C) It is pervasive (B) maintaining adequate checks and bal-
(D) It is not strategic ances.
3. Premature evaluation is a type of (C) maintaining accountability.
(A) semantic barrier (D) All the above.
(B) psychological barrier 8. Which of the following refers to analysis of
(C) organisational barrier handwriting to determine writer’s basic
personality traits ?
(D) personal barrier
(A) Kinesics
4. Which of the following is not a feature of
(B) Graphology
systems approach ?
(C) Polygraphy
(A) A system is a combination of parts
(D) Both (B) and (C)
(B) Parts and sub-parts are related to one
another
9. The five basic features of Scanlon plan of (A) Assertion (A) is right, Reason (R) is
incentive payment are wrong.
(A) control, individuality, competence, in- (B) Assertion (A) is wrong, Reason (R) is
volvement and sharing of benefits. right.
(B) cooperation, identity, competence, in- (C) Reason (R) does not subscribe to the
volvement and sharing of benefits. Assertion (A).
(C) control, individuality, commitment, in- (D) Both Assertion (A) and Reason (R) are
volvement , and sharing of benefits. right, and Reason (R) validate Assertion
(D) cooperation, identity, control, involve- (A).
ment and sharing of profits. 14. Match the following theories of career plan-
10. Which of the following is a process of sys- ning with their propagators :
tematically identifying, assessing and de- Theories of Career Propagators
veloping organisational leadership to en- Planning
hance performance ? a. Career Anchor i. John Holland
(A) Manpower planning Model
(B) Career planning b. Career Path ii. D.T. Hall
(C) Succession planning Model
(D) Human Resource planning c. Career Choice iii. Edgar Schien
11. Who is the profounder of the socio-psy- Model
chological approach to Human Resource d. A Career Stages iv. Mondy, Noe
Development ? Model and Premeanx
(A) T.W. Schultz Codes :
(B) Lorraine Corner a b c d
(C) Lim Teck Ghee (A) ii iii i iv
(D) David McClelland (B) iii ii iv i
12. Read the following statements on HRD need (C) iii iv i ii
analysis. Identify the one which is not true : (D) ii iv iii i
(A) HRD needs can be identified at strate- 15. When Human Relations training is given to
gic, organisational, operational, task managers the method adopted is :
and person levels (A) In-Basket Exercise
(B) HRD needs can be diagnostic, analytic, (B) Role-play method
compliance oriented and proactive (C) Managerial Grid Training
(C) competency mapping, performance ap- (D) Sensitivity Training
praisal and clarity of career paths iden- 16. When team-building can be attempted by
tify HRD needs at task level only creating artificial teams in which people get
(D) Task related KSA analysis and training opportunity to experiment and learn from
need analysis are integral part of HRD their behaviour in a less threatening con-
need analysis text, it is based on :
13. Assertion (A) : Performance Appraisal can- (A) Behaviour Modification Approach
not be error free and unbiased. (B) Action Research Approach
Reason (R) : The Appraisal Methods are co- (C) Simulation Approach
vertly influenced by human judgement (D) Team Role Approach
which may be vitiated by inter-personal dis-
17. Match the Themes with the respective ap-
criminatory impulses.
proaches :
Approaches Themes 20. Match the following :

a. Socio- i. Appropriate mana- Needs Refers to
technical gerial behaviour a. Intrinsic i. Recognition by boss
system depends on elements b. Extrinsic ii. Regular salary
approach of the situation c. Expressed iii. Self initiative
b. Democratic ii. employees’ attitudes d. Wanted iv. Expecting others
approach influence their to initiate
perception of work Codes :
and their work
a b c d
experiences shape
(A) iv iii i ii
their attitudes
(B) i iv iii ii
c. Contingency iii. Technology greatly
(C) ii i iv iii
approach influences organi-
(D) iii ii iv i
sational culture and
structure which 21. The trusteeship approach to industrial re-
influence the attitude lations was advocated by
towards work. (A) Karl Marx (B) Max Weber
d. Interactional iv. Involvement and (C) Allan Flanders
approach empowerment of (D) Mahatma Gandhi
workers improve 22. Which of the following is a machinery for
productivity the settlement of Industrial Disputes in In-
Codes : dia ?
a b c d (A) National Commission on Labour
(A) i iii iv ii (B) Wage Board
(B) iii iv ii i (C) Industrial Tribunal
(C) iii iv i ii (D) Standing Labour Committee
(D) iii ii iv i 23. In which year, the International Institute of
18. Who has extended the Vroom’s Expectancy Labour studies was established ?
Theory of Motivation by suggesting that (A) 1919 (B) 1926
motivation is not equal to satisfaction and (C) 1950 (D) 1960
performance and by depicting what hap- 24. Match the following Acts/Code with the
pens after performance ? provisions
(A) Harold Kelly Acts/Code Provision
(B) Edward Tolman a. The Trade Unions i. Retrenched
(C) Alderfer Act and protected
(D) Porter and Lawler workmen
19. Which of the following is an invisible part b. The code of ii. Collection of
but a powerful template that shapes, what Discipline political forms
happens at the workplace ? c. The Industrial iii. Recognition of
(A) Organisational culture Disputes Act Unions
(B) Organisational climate d. The Model standing iv. Disciplinary
orders under the action for
(C) Organisational dynamics
Central Industrial misconduct
(D) Organisational structure Employment (Stand-
ing orders) Rules.
Codes : 29. Which one is not a right of a recognized
a b c d union ?
(A) ii iii i iv (A) A right of ‘Check-off’
(B) i iii iv ii (B) To use notice board on the premises of
(C) ii i iv iii the undertaking
(D) ii iv i iii (C) To appear on behalf of the union on
domestic inquiry
25. Who advanced the concept of ‘Three tier in-
stitutional structure’ of Industrial Rela- (D) inspecting the undertaking
tions ? 30. The criteria for recognition of trade union
(A) John T. Dunlop under the code of discipline are
(B) Allan Flanders (a) union claiming recognition should
(C) Kochan, Katz & Mckersie have been functioning for atleast one
year after registration.
(D) Roy Adam
(b) the membership of a union should cover
26. Which of the following is not a correct state-
atleast 5% of the workers in that estab-
ment pertaining to the meaning of trade
lishment.
union ?
(c) A union can claim recognition as rep-
(A) It is a continuous association of wage
resentative union for an industry in a
earners for maintaining or improving
local area if it has 25% workers as mem-
the conditions of their working lives.
bers in that industry in that area.
(B) It is a society of individuals in one or
(d) When a union is recognised there shall
more professions for the purpose of pro-
be no change in the position for 5 years.
tecting and advancing, members’ eco-
Codes :
nomic interest.
(A) All the provisions are correct
(C) It is a combination with anobjective of
regulating the relation between work- (B) All the provisions are incorrect
men and workmen, workmen and em- (C) Only (a) and (c) are correct
ployer, employer and employer (D) Only (d) and (b) are correct
(D) It is any combination, whether tempo- 31. Which of the following subjects is not enu-
rary or permanent formed primarily for merated in the ‘concurrent list’ of the Indian
regulating relations between the two constitution ?
parties. (A) Oil fields (B) Trade Unions
27. Who formed the Bombay Millhands Asso- (C) Factories
ciation ? (D) Vocational and technical training of
(A) Sorabjee Shaprujee Bengali labou
(B) Bal Gangadhar Tilak 32. Which of the following statements relating
(C) N.M. Lokhande to the Employees’ Compensation Act is not
(D) V.V. Giri correct ?
28. In which country the trade union movement (A) This Act has a link with the Workmen’s
began with industrial unions ? Compensation Act
(A) Great Britain (B) This act is the outcome of the amend-
(B) U.S.A. ment that was made to the Workmen’s
Compensation Act
(C) India
(C) This act does not have any provision
(D) Canada
relating to temporary disablement of
workmen
(D) This act has a provision relating to perma- 38. Match the following according to the objec-
nent partial disablement tives of legislations :
33. Under the Maternity Benefit Act, a woman a. Minimum i. to ensure that wages
employee would get a medical bonus of : Wages Act payable are disbur-
(A) Rs. 3000 (B) Rs. 3500 sed within prescri-
(C) Rs. 4000 (D) Rs. 4500 bed time limit
b. Payment of ii. to extend social just-
34. Which section of the Factories Act deals with
Wages Act ice by statutorily pro-
appointment of Welfare Officers ?
viding the remunera-
(A) Section 45 tion legally due to an
(B) Section 49 employed person
(C) Section 51 c. Equal iii. to allow employyees
(D) Section 55 Remuneration to legally share in the
35. The Maternity Benefit (Amendment) Act, Act prosperity of the es-
1988 provides for extension of the benefits tablishment contrib-
to shops and commercial establishments uted by capital, man-
employing a minimum of : agement and labour
(A) 7 persons d. Payment of iv. to prevent discrimi-
(B) 8 persons Bonus Act nation in the matter
(C) 10 persons of employment and
(D) 20 persons remuneration
36. Which of the following is not considered to Codes :
be a legal status for a registered union ? a b c d
(A) No power to acquire and hold both (A) iv iii ii i
movable and immovable property (B) ii i iv iii
(B) Power to contract with other entities (C) iii ii iv i
(C) Perpetual succession and common seal (D) i ii iii iv
(D) A body corporate by the name under 39. Which of the following is ‘true’ as per the
which it is registered provisions of the Industrial Disputes Act ?
An employer need not issue any “Notice of
37. Under the Minimum Wages Act, which of
Change” in respect of 4th Schedule of the
the following can not be appointed by the
Act.
appropriate government by notification
under the official gazette for deciding (A) Where the change is affected in pursu-
claims arising out of payment of less than ance of any settlement.
the minimum rates of wages ? (B) In respect of any matter specified in the
(A) Any commissioner for Workmen’s com- schedule affecting workmen.
pensation (C) In respect of conditions of service ap-
plicable to any workman.
(B) Any officers of the Central Government
exercising functions as a Labour Com- (D) None of the above.
missioner for any region 40. Which of the following amendments of In-
(C) Any officer of the State Government not dustrial Employment (standing order) Act
below the rank of Labour Commis- provided for payment of subsistence allow-
sioner ance by the employer to a suspended em-
(D) Any officer not less than the rank of ployee pending enquiry against him ?
District Magistrate (A) Industrial Employment (standing order)
Amendment Act, 1956
(B) Industrial Employment (standing order) Codes :
Amendment Act, 1963 a b c d
(C) Industrial Employment (standing order) (A) ii iv iii i
Amendment Act, 1982 (B) iii ii i iv
(D) Industrial Employment (standing order) (C) iv i ii iii
Amendment Act, 1961 (D) iv iii i ii
41. The ‘New Lanark’ experiment is associated 44. In which of the following approaches ‘good
with : will’ is considered as an important goal of
(A) Human Relations at workplace labour welfare work ?
(B) Networking Organisations (A) Placating Theory
(C) Welfare Movement in Industries (B) Public Relations Theory
(D) Behavioural Theory (C) Fundamental Theory
42. Social security provided by a ‘means test’ is (D) Philanthropic Theory
called : 45. For which of the following categories of
(A) Social Insurance workers, there is no provision for welfare
(B) Mutual Insurance fund ?
(C) Social Assurance (A) The Beedi workers
(D) Social Assistance (B) Workers working in Mica Mines
(C) Cine Workers
43. Match the following Themes with the con-
cepts of Labour Welfare : (D) Workers working in the Printing Indus-
try
Themes Concepts of
Labour Welfare 46. Under which segment of the Indian Consti-
tution, the Labour Policy is designed ?
a. Labour Welfare i. Relative
is a desirable state concept a. Preamble
of existence compre- b. Fundamental Rights
hending physical, c. Directive Principles of State Policy
mental, moral and d. Fundamental Duties
emotional health or Codes :
well-being.
(A) Only c
b. In planning for ii. Positive (B) a, b and c
welfare, the individual concept (C) a and c
alone should not be
(D) a, b, c and d
taken into
consideration. 47. The conversion of the ‘nominal wages’ into
‘Real Wages’ is done by which of the fol-
c. Welfare work differs iii. Social
lowing indices ?
over time and Place. concept
(A) Human Development Index
d. Welfare connotes iv. Total
(B) Poverty Index
atleast minimum concept
(C) Wholesale Price Index
desirable conditions
of existence biologi- (D) Consumer Price Index
cally and socially 48. Match the following Themes of Theories of
determined. Wages with their propagators :
Themes of Wages Propagator Codes :

Theory a b c d
a. “Labour is the real i. David (A) ii i iii iv
measure of the exchan- Ricardo (B) iii ii iv i
geable value of all (C) iii i iv ii
commodities.” (D) iv ii iii i
b. “The natural price of ii. Michel
labour is that price Kalecki 49. Which of the following statements about
which is necessary to wage differentials is not true ?
enable the labourers to (A) Wage differentials can be attributed to
subsist and perpetuate imperfections in employment market.
their race without (B) Social prejudices do not influence the
either increase or wage differentials.
diminution.” (C) Inter-industry wage differentials are
c. “Wages cannot rise iii. Adam bound to occur.
unless either the wage Smith (D) Geographical wage differentials are a
fund increases or the common phenomenon.
number of workers 50. Which of the following formulae isused for
decreases.” determining Minimum wages ?
d. “Wages are a residual, iv. J.S.Mill (A) Adarkar’s Formula
the level of real wages
(B) Rege Committee’s Formula
depending on what was
left of the total product (C) Dr. Aykroid’s Formula
after capitalistic class (D) Royal Commission on Labour’s For-
had its cut.” mula
ANSWERS
1. (A) 2. (D) 3. (B) 4. (C) 5. (B) 6. (A) 7. (D) 8. (B) 9. (B) 10. (C)
11. (D) 12. (C) 13. (D) 14. (C) 15. (D) 16. (C) 17. (C) 18. (D) 19. (A) 20. (D)
21. (D) 22. (C) 23. (D) 24. (A) 25. (C) 26. (B) 27. (C) 28. (C) 29. (A) 30. (C)
31. (A) 32. (C) 33. (B) 34. (B) 35. (D) 36. (A) 37. (D) 38. (B) 39. (A) 40. (C)
41. (C) 42. (D) 43. (D) 44. (B) 45. (D) 46. (B) 47. (D) 48. (C) 49. (B) 50. (C)
December, 2013
PAPER-III
1. Which of the following types of control in- (A) Need Hierarchy Theory
volves evaluation of inputs and taking cor- (B) Two Factor Theory
rective actions before the operation is com- (C) ERG Theory
pleted ? (D) Contingency Theory
(A) Feed Forward Control
6. Which of the following is/are part(s) of
(B) Concurrent Control transformation process, is/are considered
(C) Feedback Control as a part of organizational development ?
(D) Forward Control a. Implementing Strategic Planning and
2. Which of the following is the process of sys- Alignment
tematically identifying, assessing and de- b. Assessing the competitors strengths
veloping organizational leadership to en- and weaknesses
hance performance ? c. Assessing the environment and chang-
(A) Manpower Planning ing organisational structure, systems
(B) Career Planning and culture
(C) Succession Planning d. Developing the work climate toenhance
(D) Strategic Human Resource Planning teamwork, trust and cooperation
3. Which of the following is not a principle (A) a, b and c (B) a, b, c and d
under the “Hot Stove Rule” of Douglas Mc (C) a, c and d (D) a, b and d
Gregor ? 7. The International Institute of Labour Stud-
(A) Advance Warning ies was established in the year :
(B) Impersonality and Impartiality (A) 1919 (B) 1960
(C) Consistency (C) 1926 (D) 1978
(D) Opportunity to defend 8. Which of the following is an illegal indus-
4. “Quality Circles in India”, the first book in- trial action as per law ?
corporating the process to be adopted in (A) Mutual Insurance
developing, implementing and sustaining (B) Collective Bargaining
quality circles, was authored by (C) Lock out (D) Gherao
(A) T.V. Rao (B) D.M. Pestonzee 9. Compulsory collective bargaining was ad-
(C) Udai Pareek (D) S.R. Udpa vocated by :
5. The theory that categorized needs being con- (A) G.L. Nanda
cerned with survival, relationships and de- (B) Khandubhai Desai
sire for personal development is popularly (C) V.V. Giri (D) Jagjivan Ram
known as
10. The Journal Dinabandhu was being pub- 15. Under which of the following incentive
lished by : plans “a worker is quaranteed a minimum
(A) Ahmedabad Textile Labour Association wage on the time basis. Then a standard
(B) Bombay Mill Hands Association time is fixed for the completion of every work
(C) All India Trade Union Congress and if the worker completes the work in less
time, he is given bonus of the time actually
(D) Madras Labour Union
saved in proportion to the total time” ?
11. Which of the following is the appropriate (A) Halsey Premium System
Government in relation to employment of
(B) Rowan Premium System
workmen by a contractor for construction
of Railway Staff Quarters in a State head- (C) Barth System
quarters and fixation of minimum wages ? (D) Emerson Efficiency System
(A) The Central Government 16. AFL-CIO in United States of America is a :
(B) The concerned State Government (A) Craft Union (B) Industrial Union
(C) Both (A) and (B) (C) General Union (D) National Union
(D) Either (A) or (B), but depends on the situ- 17. Which of the following factor(s) is/are re-
ation and appeal by the contractor sponsible for weakening the trade unions
12. Under the Industrial Disputes Act, which of in India ?
the following cannot be considered as an a. absence of rank and file leadership
industrial despute ? b. absence of one union in one industry
(A) When employer fails to keep his verbal c. politicization of unions
promises d. proactive management
(B) When closure is a pretence (A) a, b and c (B) a, b, c and d
(C) When demand made for alteration of (C) a and b (D) a only
conditions of service of employees in a 18. During the National Emergency Period, how
cooperative society many schemes of workers’ participation in
(D) When the lock-out is in disguise of clo- management were introduced by the Gov-
sure ernment of India ?
13. Who had advanced the concepts of “Long (A) One (B) Two
Arm of Job” and “Social Invasion of Work- (C) Three (D) Four
place” explaining the intricate relationship
19. An association of crane operators in an in-
between intramural and extra-mural wel-
dustrial establishment is an example of :
fare ?
(A) General Union (B) Craft Union
(A) Emile Durkheim
(C) Industrial Union
(B) Herbert Spenser
(D) Industrial Federation
(C) Amitai Etzioni
(D) Charles Spaulding 20. The factor, which does not include the sub-
stance of sound industrial relations policy
14. Which of the following is/are determi- at the macro-level is
nant(s) of supply of labour ?
(A) Business proposition, project develop-
a. other wage rate ment
b. non-wage income (B) Structure of economy and labour mar-
c. preferences for work versus leisure ket
d. number of qualified suppliers (C) Structure of union and employers’
(A) a and b (B) a, b and d organisations
(C) a, b, c and d (D) b, c and d (D) Policies of the Government
21. Which is not an association of employers ? 24. Due to pursuit of Laissez-Faire policy in eco-
(A) CIE (B) AIOE nomic affairs in the past and faith in pro-
(C) CITU (D) IOE moting autonomy in industrial relations, the
government in United Kingdom has fol-
22. Which of the following ‘Codes’ incorporates
lowed a policy of non-intervention in the
all the given statements ?
sphere of industry. In this context, find out
(i) Every employee in an industry or unit which of the following is not correct ?
shall have the freedom and right to join
(A) The principle of collective bargaining
the union of his/her choice
be practised
(ii) There shall be no dual membership of
(B) The principle of developing procedures
unions
for free and expeditious settlement
(iii) Uninhibited acceptance and respect for
(C) The principle of protecting and saving
democratic functioning
workers from unfair labour practices
(iv) Regular and democratic elections of ex-
(D) The principle of association of workers
ecutive bodies
in independent trade unions and em-
(A) Inter-union code of conduct ployers’ association for development of
(B) Code of Discipline industrial democracy
(C) Code of Practice 25. Which of the following is the main function
(D) Industrial Truce Resolution of Labour Relations Act of United King-
23. Match the following measures suggested dom ?
with the committees/ Commissions/ Acts. (A) Regulating working conditons
Committees/ Measured (B) Licencing the industries
Commission/Act Suggested (C) Registration of unions
a. The Trade i. Improvement of (D) Recognition of unions
Unions Act productions, unions 26. Which of the following statements relating
to discourage to the Factories Act is not true ?
absenteeism, and
(A) There is a provision in the Act relating to
interruption of work
the constitution of a Managing Commit-
b. Royal ii. Growth of collective tee for the management of the canteen.
Commission bargaining recog-
(B) There is a provision in the Act regarding
on Labour nition of union, prohi-
the setting up of a safety committee.
bition of strikes &
lockouts (C) The Act does not have a provision relat-
c. Industrial iii. Registration of ing to the setting up of welfare commit-
Policy Trade Unions tee.
Resolution (D) The Act has a provision relating to the
d. First Nati- iv. Appointment of establishment of a Grievance Committee.
onal Commi- Labour Officer 27. What is the role of the Arbitration Board in
ssion on United Kingdom ?
Labour (A) Agreement (B) Settlement
Codes : (C) Award
a b c d (D) Collective Agreements Non-legal
(A) ii i iv iii 28. Which of the following are tripartite bod-
(B) iii iv i ii ies ?
(C) iii i ii iv a. Indian Labour Conference
(D) iv ii iii i b. Wage Board
c. Standing Labour Committee (A) 33 percent of workers as members

d. Works Committee (B) 60 percent of workers as members
(A) a and b (B) b and c (C) 66 percent of workers as members
(C) a, b and c (D) a, b, c and d (D) 75 percent of workers as workers
29. During whose tenure as a union labour min- 34. The British Trades Union Congress was es-
ister, the code of Discipline was adopted ? tablished in the year :
(A) V.V. Giri (B) G.L. Nanda (A) 1862 (B) 1868
(C) Khandubhai Desai (C) 1892 (D) 1900
(D) P.A. Sangma 35. The National Apex Body was established
30. Which four of the Central Trade Union Or- in 1975 comprising of
ganizations were signatories to the inter- (A) Representatives of employers belonging
union code of conduct ? only to AIOE, and trade unions belong-
(A) INTUC, AITUC, BMS and UTUC ing only to INTUC
(B) AITUC, BMS, CITU and HMS (B) Representatives of employers belonging
(C) AITUC, HMS, INTUC and UTUC to AIOE, EFI and AIMO and trade
(D) BMS, CITU, HMS and INTUC unions belonging to INTUC and HMS
(C) Representatives of employers belonging
31. Which of the following organizations re-
to AIOE and AIMO and trade unions
ceived a bad publicity in the print and elec-
belonging to INTUC and AITUC
tronic media in 2005 for adopting unfair
labour practices and causing police brutal- (D) Representatives of employers belonging
ity on its workers ? to AIOE, EFI and AIMO and trade
unions belonging to INTUC and AITUC
(A) Maruti Udyog Limited
(B) Tata Motors 36. Which of the following is false :
(C) Honda Motorcycles and Scooters India (A) A Multinational Corporation (MNC) is
Limited registered in more than one country or
has operations in more than one coun-
(D) Durgapur Steel Plant
try.
32. The shifts that have been taking place in the (B) A Multinational Corporation produces
collective bargaining front in India in the and sells goods or services in various
post-liberalisation period include countries.
a. collective to individual contracts. (C) A Multinational Corporation can also
b. increased wages/incomes and benefits be referred to as an international corpo-
accompanied by erosion of job control. ration.
c. concession bargaining. (D) None of the above.
d. Attendance, skill or performance-linked 37. Fish bone diagram is also known as
rather than age-weighted and seniority
(A) Kaizen Diagram
based wages and benefits.
(B) Ishikawa Diagram
(A) only a (B) a and b
(C) Taguchi Diagram
(C) a, b and c (D) a, b, c and d
(D) Pareto Diagram
33. The Second National Commission on
Labour recommended that a registered 38. Which of the following features character-
union should be given recognition as a ize the Balance Score Card Method ?
single negotiating agent in an establishment a. The score cards are cascading in nature
through check-off system, if it is having a and as such are all pervasive in an or-
minimum of : ganization
b. It is supported by effective communica- Codes :
tion system a b c d
c. Standardization of goals is not rigid (A) iii ii i iv
d. Customer focus is an integral part of (B) i ii iii iv
Balanced Score cards (C) iv iii ii i
(A) a, b and c (B) b, c and d (D) iii iv i ii
(C) a, b, and d (D) a, c and d 42. What composes the ‘SMART’ goals ?
39. Affective competence, Intellectual compe- (A) Simple, Monetary, Achieved, Reliable,
tence and Action-oriented competence as Total
components of key competencies of manag- (B) Specific, Measurable, Attainable, Real-
ers was proposed by istic, Time Bound
(A) Rabi Kanungo and Sashi B. Mishra (C) Strategic, Measurable, Analytical, Re-
(B) Robert Katz portable, Technical
(C) Henry Mintzberg (D) Strategic, Market oriented, Analytical,
(D) Thomas Durand Reportable, Technical
40. Which of the following statements about 43. Which of the following is correct about sus-
performance management are true ? tainable development ?
a. It is a moving up process and there will (A) It aims at continuous development
be upheavals and odds (B) It deals with regular growth of social
b. To integrate strategy and operation of interest
performance management it would re- (C) It meets the needs of present without
quire planning, information and qual- hurting future generations
ity management system (D) It develops employees for growth of
c. The entire performance management business
system is based on reporting and mea-
44. Based on his 14 principles, Edward Deming
surement
is a strong proponent of
d. Score carding is not central to the per-
(A) increase in quotas to enhance produc-
formance management system
tivity.
(A) a and b (B) b and c
(B) inspection at the end of production pro-
(C) a, b and c (D) b, c and d cess.
41. Match the explanation relating to the sources (C) training and development of employees.
of power mentioned below : (D) creating quality slogans to motivate
a. Reward i. the power legitimately workforce.
Power does not belong to the
45. Action learning is a training technique in
person but gained
which
by access to powerful
sources (A) trainee is allowed to work full time ana-
lyzing and solving problems in other
b. Legitimate ii. influencing by
departments.
Power specialised skill
gained by the person (B) trainee moves from department to de-
partment to broaden experience.
c. Referrent iii. the authority to impose
(C) trainee is presented with written de-
Power punishment
scription of organizational problem.
d. Expert iv. the power enjoyed
Power due to hierarchical (D) trainee is sent for formal training out-
position side the organisation
46. Glass ceiling refers to a. Six Sigma

(A) Moderate difficulties in training of b. Kaizen
women workforce c. Just-in-time Management
(B) Artificial barriers based on attitudinal d. Business Process Reengineering
and organizational bias preventing ca- (A) only a (B) a and b
reer growth of women (C) a, b and c (D) a, b, c and d
(C) Personality weaknesses hindering ca-
53. Which one of the following contains the
reer growth of women
phases of organizational development ar-
(D) Transperency at higher levels in ranged in sequential order ?
organisation
(A) Entry into the organization, diagnosis,
47. A person who is citizen of the country where culture building and interventions
MNC is headquartered, but working in an- (B) Entry into the organization, diagnosis,
other country with the same company is interventions and culture building
called
(C) Entry into the organization, culture
(A) Host Country Nationals building, diagnosis and interventions
(B) Trans Country Nationals (D) Entry into the organization, interven-
(C) Third Country Nationals tions, diagnosis and culture building
(D) Parent Country Nationals 54. ‘OCTAPACE’ – the concept for study of
48. Which of the following is not a reason for organisational climate was developed by
increasing workforce diversity ? (A) Peter F. Drucker (B) Peter Segne
(A) Changing demographies (C) Udai Pareek (D) Dharni P. Sinha
(B) Product Quality Consciousness 55. Which of the following is/are the root
(C) Political and Legal Systems cause(s) of downsizing ?
(D) Globalisation of Business a. mechanisation and modernisation
49. Career in Human Resource Management b. cost cutting methods and effective com-
means munication
(A) A status job c. technological advancement and im-
(B) A respectable consistent occupation provement in organisational perfor-
(C) A job where a person can earn liveli- mance
hood d. impact of globalisation
(D) The progression of a person in his oc- (A) only a (B) a and b
cupation over the years (C) a, b and c (D) a, b, c and d
50. Which of the following is not an action of 56. Arrange in a sequence the following Acts in
classical change programme ? the order of years in which they were en-
(A) Refreezing (B) Removing acted from latest to earliest
(C) Moving (D) Unfreezing a. The Mines Act
51. Which one of the following is an example of b. The Plantation Labour Act
Golden-Handshake Scheme ? c. The Factories Act
(A) Superannuation Retirement d. The Beedi and Cigar Workers (Condi-
(B) Voluntary Retirement tions of Employment) Act
(C) Compulsory Retirement (A) a, b, c, d
(D) Retirement on account of disablement (B) b, a, c, d
52. Which of the following is/are technique(s) (C) d, b, a, c
of Total Quality Management ? (D) d, a, b, c
57. Which of the following statements is not (B) It prescribes for making suitable wel-
true, when it is the issue of referring a dis- fare schemes for unorganized workers
pute to a labour court under the Industrial relating to life and disability cover,
Disputes Act ? health and maternity benefits, and old
(A) If the matter is related to matters speci- age protection by the Central Govern-
fied in the second schedule, the appro- ment.
priate government may refer it to the (C) The Act gives separate definitions of
labour court. ‘unorganized worker’ and ‘wage
(B) If the matter is related to the matters worker’.
specified in the third schedule, the ap- (D) It prescribes for making suitable welfare
propriate government may refer it to the schemes for unorganized workers relat-
labour court, provided the issue does ing to provident fund, employee injury
not affect more than one hundred work- benefit, housing, educational schemes
men. for children, skill upgradation of work-
(C) If the dispute in relation to which the cen- ers only by the State Government.
tral government is the appropriate gov- 61. Which State in India was the first to enact a
ernment, it can refer it to the labour court legislation governing migrant workers,
constituted by the state government. which was later repealed by the central In-
(D) If the matter is related to issue of national ter-State Migrant Workmen Act in 1979 ?
importance, the same can be referred to (A) Maharashtra (B) Odisha
the labour court by the appropriate gov- (C) Himachal Pradesh
ernment. (D) Uttar Pradesh
58. What is/are common to the Factories Act, the 62. Which part of the definition of ‘worker’ un-
Mines Act, and the Plantation Labour Act ? der the Factories Act is incomplete ?
a. They are protective legislations (A) A person employed directly or by or
b. They are social security legislations through any agency.
c. They are welfare legislations (B) With or without the knowledge of the
d. They are wage legislations principal employer.
(A) only a (B) only c (C) For remuneration
(C) a and c (D) b, c and d (D) In the manufacturing process
59. Which of the following authorities has the 63. Assertion (A) : Provisions of Employees’
power to prescribe the form of certificate of compensation Act and Maternity Benefit
fitness to work in a factory under the Facto- Act do not apply to all industries.
ries Act ? Reason (R) : Employees’ Compensation Act
(A) The certifying surgeon is a comprehensive social security legisla-
(B) The owner or occupier of the factory tion.
(C) The Chief Inspector of Factories of the (A) (A) is wrong, but (R) is right.
State (B) (A) is right, but (R) does not related to
(D) The State Government the (A).
60. Which of the following statements about the (C) (A) and (R) are right, and (R) validates
Unorganised Sector Social Security Act, 2008 the (A).
is not true ? (D) (A) and (R) are wrong.
(A) The Act gives a definition of ‘home-based 64. Which of the following statements about The
worker’, and it is same as self-employed Employees’ Provident Funds and (Miscel-
worker. laneous Provisions) Act are true ?
a.The Act is not applicable to cooperative Conventions Laws/Source of Laws

societies employing less than 50 per- a. Holidays with i. Indian
sons working with the aid of power. pay convention Constitution
b. It makes provision for pension scheme, (No. 52)
including family pension. b. Tripartite consti- ii. Factories Act
c. There is no wage limit to be covered tution (Inter-
under the Act. national Stand-
d. The Act has a provision relating to Em- ards) Convention
ployees’ Deposit-linked Insurance (No. 144)
Scheme. c. Forced Labour iii. International
(A) a, b and d (B) a and c Convention Migrant Work-
(No. 29) men (Regula-
(C) b, c and d (D) a, c and d
tion of Employ-
65. Which of the following statements about ment & conditi-
the Grievance Redressal Machinery given ons of service)
under the Industrial Disputes (Amend- Act
ment) Act, 2010 is not true ? d. Inspection of iv. Minimum
(A) Every industrial establishment employ- Emigrant Wages Act
ing 20 or more workmen shall have convention
one or more Grievance Redressal Com- (No. 21)
mittee. Codes :
(B) Grievance Redressal Committee can re- a b c d
solve any dispute arising in the indus- (A) ii iv i iii
trial establishment. (B) ii i iv iii
(C) It is a bipartite committee with equal (C) iii i iv ii
number of members representing the
(D) iii iv i ii
employer and workmen.
68. The Trade Unions Act empowers a trade
(D) There is a 45 days time limit from the
union to create a General Fund for its ad-
date of written application to complete
ministration and maintenance. A trade
the proceedings.
union purchased shares in the Unit Trust
66. Identify the false statement on ILO. of India to enhance its General Fund Ac-
(A) ILO is a tripartite body. count. Which of the following is not correct
(B) India was not a founding member of as per law ?
the ILO as it did not get its Indepen- (A) The trade union can raise its fund by
dence. such type of investments.
(C) ILO has three organs, namely, the In- (B) The trade union can raise its funds by
ternational Conference, the governing such investments with the permission
body, and the International Labour Of- of appropriate government.
fice. (C) The trade union can raise its fund by
(D) ILO passes conventions and recom- such investments with the consent of
mendations prescribing International its general body.
Labour Standards. (D) The trade union cannot do so as it is an
67. Match the following Conventions of the attempt towards profitmaking.
ILO according to their incorporation in the 69. While working at the construction of a
concerned laws/source of laws in India. multistoreyed building of a company, a
worker employed by a ‘contractor’, supplied
by a ‘sirdar’, faced an accident and became (B) Vocational and Technical Training of
temporarily disabled. For paying compen- Workers
sation to the worker, who shall be held re- (C) Participation in International Associa-
sponsible as per law ? tions
(A) The contractor who employed the (D) Social Security and Social Assistance
worker 73. Which of the following is not the objective
(B) The sirdar who supplied the worker of the Child Labour (Prohibition and Regu-
(C) Both (A) and (B) lation) Bill proposed by the second National
(D) None of the above Commission on Labour ?
70. The basic principle underlying the enact- (A) To ensure that no child would be de-
ment of the Trade Unions Act is : prived of a future being deprived of edu-
(A) To protect interests of workers against cation.
disregard of human elements in indus- (B) to ensure children not to work in situa-
tries. tions where they are exploited.
(B) To regulate the relationship of workers (C) to prohibit child labour in all employ-
and their organization by regulating the ments irrespective of their coverage un-
balance of power. der the existing Act.
(C) To provide strength to workers to settle (D) To tackle the problem of child labour by
the industrial disputes. ensuring universal education.
(D) To provide security to workers against 74. Which of the following is/are factor(s) for
the occupational hazards. enactment of a legislation regulating pay-
71. Which of the following contribute(s) as a ment of remuneration due to workers ?
principle of labour legislation ? a. Payment in kind
a. Principle of International Obligation b. Payment in illegal tender
b. Principle of Economic Development c. Irregular payments
c. Principle of Protection and Regulation d. Authorised deductions
d. Principle of Social Justice (A) a, b and c (B) a, b and d
(A) c and d (C) a, b, c and d (D) b, c and d
(B) b, c and d 75. What is the qualifying service to claim gra-
(C) a, b, c and d tuity ?
(D) a, b, and d (A) 15 years
72. For which of the following, the State Legis- (B) 10 years
lature has exclusive power to make laws ? (C) 5 years
(A) Shops and Commercial Establishments (D) No such prescription
ANSWERS
1. (A) 2. (C) 3. (D) 4. (D) 5. (C) 6. (C) 7. (B) 8. (D) 9. (C) 10. (B)
11. (A) 12. (*) 13. (D) 14. (C) 15. (B) 16. (D) 17. (B) 18. (B) 19. (B) 20. (A)
21. (C) 22. (A) 23. (B) 24. (C) 25. (C) 26. (D) 27. (D) 28. (C) 29. (B) 30. (C)
31. (C) 32. (D) 33. (C) 34. (B) 35. (B) 36. (D) 37. (B) 38. (C) 39. (A) 40. (C)
41. (D) 42. (B) 43. (C) 44. (C) 45. (A) 46. (B) 47. (D) 48. (B) 49. (D) 50. (B)
51. (B) 52. (D) 53. (B) 54. (C) 55. (D) 56. (D) 57. (D) 58. (C) 59. (D) 60. (A)
61. (B) 62. (C) 63. (B) 64. (A) 65. (B) 66. (B) 67. (A) 68. (D) 69. (A) 70. (B)
71. (C) 72. (A) 73. (C) 74. (*) 75. (C)
* Denotes marks given to all candidates.

June, 2014
PAPER-II
all the questions.
1. Which of the following is/are not a part of (B) the number of subordinates increases
classical approach to management ? in geometric progression and number
(A) Scientific Management of relations increases in arithmetic pro-
(B) Administrative Management gression.
(C) Decision Theory (C) The number of subordinates and rela-
(D) Bureaucratic Organization tions both increase in geometric progres-
sion.
(D) the number of subordinates increases
Thinker Principle
in arithmetic progression while the
(a) Henry Fayol i. Careful design of number of relations increase in geomet-
jobs with ten effi- ric progression.
cient work meth-
5. The first step in control process is to
ods.
(A) measure actual performance.
(b) Elton Mayo ii. Unity of direction.
(B) establish objectives and standards.
(c) F.W. Taylor iii. Or ganizat ional
equilibrium (C) compare results with objectives.
(d) Chester I. iv. Social factors and (D) take corrective action.
Barnard group norms 6. The procedure for determining duties, re-
Codes : sponsibilities, working conditions and re-
porting relationships is known as
(a) (b) (c) (d)
(A) Job design
(A) ii iv i iii
(B) Job description
(B) ii iv iii i
(C) Job specification
(C) i ii iii iv
(D) Job evaluation
(D) i iii ii iv
7. In which of the following systems, minimum
3. Which of the following is not a barrier to
wage is guaranteed but beyond a certain ef-
effective planning ?
ficiency level, bonus is given in addition to
(A) Difficulty of accurate premising. minimum day wages ?
(B) Environmental changes. (A) Straight piece rate system
(C) Flexibilities in management.
(B) Differential piece rate system
(D) Time and Cost factors.
(C) Gantt task and Bonus system
4. Graicuna’s formula suggests that (D) Emerson’s Efficiency system
(A) the number of subordinates and rela- 8. In line and staff organization
tions both increase in arithmetic pro- (A) lines of authority and instructions are
gression. vertical.
(B) unity of command is maintained. (C) Elaboration Theory

(C) staff specialists advise line managers to (D) KSA Theory
perform their duties. 15. Assertion (A) : Quality circles in India was
(D) Staff decides without consulting line an imported idea from Japan without proper
authority. cultural changes in the organizations.
9. TAT stands for Reason (R) : The corporate culture assimi-
(A) Thematic Application Test lating learning, empowerment and partici-
(B) Thematic Apperception Test pation as equals could not be developed due
(C) Training Aptitude Test to absolete mindset of both employers and
employees.
(D) Thematic Attitude Test
Codes :
10. Which of the following is not a method of
(A) Assertion is wrong and Reason does not
Job Evaluation ?
validate the assertion.
(A) Ranking Method
(B) Both Assertion and Reason are wrong.
(B) Grading Method
(C) Assertion is right but Reason does not
(C) Paired Comparison Method
validate the Assertion.
(D) Point Method (D) Both Assertion and Reason are right
11. Who is the propagator of Human Capital and the Reason validates the Assertion.
Approach to Human Resource Develop-
16. The aspect of management that is concerned
ment?
with the individuals, their roles, the dyads,
(A) Lim Teck Ghee the teams and the entire organization is
(B) Lorraine Corner (A) Human Resource Management
(C) T.W. Schultz (B) Human Resource Development
(D) F.D. Lawrence (C) Organizational Behaviour
12. Which of the following statements about (D) Organizational Culture
Human Resource Development is not true ?
17. Potential effectiveness of a person in both
(A) It is an enabling process. personal and interpersonal situations while
(B) It is a competence building exercise. in performance in a position is known as
(C) It shall be implemented in an incremen- (A) Role effectiveness
tal way with geographical, vertical, (B) Role efficacy
functional and sophisticating phasing. (C) Role making
(D) It does not cover the global and country (D) Role linking
level Human Resource Development
practices. 18. The essence of Exchange theory regarding
formation of a group is
13. Which of the following is not a method of
(A) People are attracted to one another on
performance appraisal ?
the basis of exchange of similar atti-
(A) Forced Distribution Method tudes towards common objects and
(B) Factor Comparison Method goals.
(C) Forced Choice Method (B) People are attracted to one another in-
(D) Critical Incident Method teracting with one another and cooper-
14. Gagne-Briggs Theory of Training is other- ating to achieve the goals.
wise called as (C) People are attracted to one another by
(A) Instructional Design Theory having propinquity to each other.
(B) Component Display Theory
(D) People are attracted to one another by (C) Regulations and policies of the manage-
interacting through reward-cost out- ment hierarchy.
comes. (D) All the above.
19. Being a Manager in an organization, if you 23. The institutional causes of industrial dis-
are asked to enrich the job of your subordi- putes do not include
nate, you will not consider which of the fol- (A) Technology and Machinery
lowing ? (B) Recognition of Unions
(A) Remove some controls while retaining (C) Membership of Unions
accountability.
(D) Bargaining Unit
(B) Increase the accountability of individu-
als to their work. 24. Arrange the following in a sequence accord-
ing to the years of their establishment from
(C) Introduce new and more difficult tasks
the earliest to latest
compared to those handled previously.
a. Indian Labour Conference
(D) Assign general tasks to people to make
them experts in those tasks. b. Central Board of Worker’s Education
c. Standing Conference on Public Enter-
prises
Theory of Propagator
d. Indian National Trade Union Congress
Leadership
(A) a, b, c, d (B) a, d, b, c
(a) Contingency i. Martin Evans
(C) d, c, b, a (D) b, d, a, c
Theory and Robert House
(b) Path-goal ii. Fred Fiedler 25. Assertion (A) : The scope of Industrial Rela-
Theory tions is relative to business environment.
(c) Situational iii. Paul Hersey and Reason (R) : It shall be Universal and Per-
Leadership Ken Blanchard petual.
Theory Codes :
(d) Greatman iv. Gordon Alport (A) (A) and (R) are right.
Theory (B) (A) is right and (R) is wrong.
(a) (b) (c) (d) (C) (A) is wrong and (R) is right.
(A) ii i iii iv (D) (A) is right, but its explanation given in
(B) i iii iv ii (R) is wrong.
(C) iii ii i iv 26. Match the following approaches to trade
(D) iv i iii ii unionism with the propounders.
Approach Propounder
21. Who is associated with the radical approach
to industrial relations ? (A) Socio- i. Frank
(A) Mahatma Gandhi Psychological Tannenbaum
(B) John T. Dunlop approach
(C) Karl Marx (B) Industrial ii. Selig Perlmaw
(D) Allan Flandevs Democracy
approach
22. According to John T. Dunlop, the outputs of
an Industrial Relations System include (C) Scarcity iii. Sidney and
(A) Agreements, customs and traditions of Consciousness Bealrize Webbs
the work place and work community. approach
(B) Awards and orders of Government agen- (D) Sociological iv. Robert F. Hoxie
cies. approach
Codes : (D) The members of two registered unions

(a) (b) (c) (d) getting engaged in a blame game while
(A) iii i iv ii performing a job that calls for team work.
(B) ii iii i iv 31. Which Article of the Indian Constitution
(C) iv iii ii i deals with Right to Freedom of Association?
(D) i ii iii iv (A) Article 15
27. The Jamshedpur Labour Union is (B) Article 17
(A) a general union. (C) Article 19
(B) an industrial union. (D) Article 23
(C) a craft union. 32. Which of the following conventions of the
(D) an industrial federation. ILO has not been ratified by India ?
28. Arrange the following in a sequence accord- (A) Convention relating to Forced Labour.
ing to the years of their establishment from (B) Convention relating to Freedom of As-
the earliest to the latest : sociation and Right to Organise.
a. Madras Labour Union (C) Convention relating to Equal Remu-
b. Bombay Mill Hands Association neration.
(D) Convention relating to Discrimination
c. AITUC
(Employment/Occupation)
d. Indian Federation of Labour
Codes : 33. Under the Factories Act, it is compulsory for
an employer to appoint a safety officer in
(A) c, d, b, a (B) a, c, d, b
his factory, if the number of workers em-
(C) d, b, c, a (D) b, a, c, d ployed in factory is
29. The provision of Unfair Labour Practices is (A) 400 (B) 600
incorporated under which labour legisla- (C) 800 (D) 1000
tion?
34. Which of the following factors is not respon-
(A) The Trade Unions Act
sible for growth of social and labour legis-
(B) The Industrial Employment (Standing lation ?
Orders) Act
(A) Early industrialisation
(C) The Industrial Disputes Act
(B) Rise of Unionism
(D) The Factories Act
(C) Establishment of ILO
30. Which one of the following is not a manifes- (D) Ethnic association
tation of inter-union rivalry ?
35. The amount of funeral benefit under the
(A) A registered union pressurizing the
Employees’ State Insurance Act is
employer to call it for negotiation on is-
sues which are already agreed upon (A) Rs. 2,500
with the recognized union. (B) Rs. 3,500
(B) A registered union claiming itself to be (C) Rs. 5,000
the majority union and as such (D) Rs. 10,000
pressurising the employer to accord the 36. Which of the following is not affected by the
recognition status to it. Trade Unions Act ?
(C) Two rival groups of members emerging (A) Any agreement between partners as to
within a union expressing their support their own business.
to two separate office bearers of the (B) Any agreement between an employer
union. and those employed by him as to such
employment.
(C) Any agreement in consideration on the (b) Biannual payment ii. Profitbased
sale of the goodwill of business or of of a Month’s salary Bonus
instruction in any profession, trade or for a long time which
handicraft. has become an
(D) All of these. implied condition
37. Chronologically arrange the years of enact- of service.
ments from earliest to latest of labour legis- (c) Payment of a lump iii. Customary
lations relating to wages and remunerations sum amount during Bonus
given below : Pooja time.
a. Minimum Wages Act (d) An amount paid iv. Contractual
b. Payment of Wages Act being linked Bonus
c. Equal Remuneration Act with dividend
d. Payment of Bonus Act Codes :
Codes : (a) (b) (c) (d)
(A) a, b, c, d (B) a, c, d, b (A) i iii iv ii
(C) b, a, d, c (D) b, a, c, d (B) iii iv i ii
38. Which of the following is not considered as (C) iii ii i iv
“Wage” under the provisions of Payment of (D) ii iii i iv
Wages Act ? 41. Who spearheaded the Welfare Movement
(A) Any sum paid to the employed person during the early industrialisation period ?
to defray special expenses entailed by (A) Robert Owen (B) Robert Katz
him by the nature of his employment. (C) Andrew Ure
(B) Any remuneration to which the person (D) Sheebhom Rowntree
is entitled in respect of overtime work.
42. Baveridge Plan is associated with
(C) Any sum to which the person employed
under any scheme framed under any a. Unemployment
law in force. b. Disability
(D) All of these. c. Loss of livelihood
39. In the landmark judgement by Supreme d. Retirement benefits
Court in case of “Bangalore Water supply Codes :
and Sewerage Board Vs. A. Rajappa” which (A) b, c and d (B) b and d
of the following is not considered as essen- (C) c and d (D) a, b, c and d
tial requisite for defining “Industry” ? 43. Which of the following statements about
(A) Systematic Activity CSR provision in the new Companies Bill
(B) Profit-motive and capital investment passed in parliament is not true ?
(C) Co-operation between employer and (A) It is compulsory for a company to spend
employees on CSR if its net worth is at least Rs. 500
(D) Production and/or distribution of goods crore.
and services scheduled to satisfy hu- (B) There is provision for minimum turn-
man wants and wishes. over of Rs. 800 crore.
40. Match the following according to the types (C) The net profit of at least Rs. 5 crore in a
of bonus : year is a condition for compulsory
(a) Attendance bonus i. Pooja Bonus spending on CSR.
paid over an unbroken (D) The companies have to spend 2% of its
series of years. average profits of three years on corpo-
rate social responsibility.
44. ‘A place for everything and everything in (C) (A) and (R) are wrong.
its place’ is the basic underlying principle (D) (A) right, but (R) does not validate the
of (A).
(A) Safety 48. Which of the following trends are currently
(B) House-keeping seen in the employment front in India ?
(C) Workplace governance a. Increased women labour force partici-
(D) None of the above pation.
45. Under which legislation, housing is a statu- b. Underemployment.
tory provision ? c. Growing employment in informal sec-
(A) The Factories Act tor.
(B) The Mines Act d. Increasing demand for unskilled man-
(C) The Plantation Labour Act power.
(D) All the above Codes :
46. Which of the following statements about (A) a, b and d (B) a, b and c
‘labour’ is false ? (C) b, c and d (D) a, c and d
(A) Labour is not a commodity. 49. Which of the following have been devoted
(B) Labour is perishable and does not last. to reduce inter-firm and inter-area wage dif-
(C) Labour is inseparable from labourer ferentials in India ?
himself. (A) Joint Negotiation Committees
(D) Rapid adjustment of supply of labour (B) Wage Boards
to its demand is possible. (C) Works committee
47. Assertion (A) : The ‘hard boiled’ business (D) Joint Councils
man’s approach is that ‘labour’ is an inevi- 50. Under which of the following incentive
table nuisance constancy asking for more. plans “a worker is guaranteed a minimum
Reason (R) : Unlike west, in India it was wage on the time basis. Then a standard
hardly realised that labour is important for time is fixed for the completion of every work
the social and economic processes of an and if the worker completes the work in less
egalitarian society. time, he is given a bonus of the time actually
Codes : saved in proportion to the total time” ?
(A) The (A) is wrong if considered by its (A) Halsey Premium System
basic philosophy and (R) validates the (B) Rowan Premium System
(A). (C) Barth System
(B) (A) is right and (R) is wrong. (D) The Emersion Efficiency System
ANSWERS
1. (C) 2. (A) 3. (C) 4. (D) 5. (B) 6. (B) 7. (D) 8. (C) 9. (B) 10. (C)
11. (C) 12. (D) 13. (B) 14. (A) 15. (D) 16. (C) 17. (B) 18. (D) 19. (D) 20. (A)
21. (C) 22. (D) 23. (A) 24. (B) 25. (A) 26. (C) 27. (A) 28. (D) 29. (C) 30. (C)
31. (C) 32. (B) 33. (D) 34. (D) 35. (D) 36. (D) 37. (C) 38. (A) 39. (B) 40. (B)
41. (A) 42. (D) 43. (B) 44. (B) 45. (C) 46. (D) 47. (A) 48. (B) 49. (B) 50. (B)
June, 2014
PAPER-III
1. According to Henry Fayol, which of the fol- Codes :

lowing statements is correct ? (a) (b) (c) (d)
(A) Management is a part of Administra- (A) iv iii i ii
tion. (B) i iii iv ii
(B) Administration is a part of Manage- (C) iii i iv ii
ment. (D) iii i ii iv
(C) There is no difference between Manage-
ment and Administration.
(a) Business i. C.K. Prahallad
(D) There is great difference between Man-
Process and Gary Hamel
agement and Administration.
Reengineering
2. Which of the following is a long term plan (b) Core ii. Chris Argyris
regarding enterprise objectives, course of Competence
action and allocation of resources ?
(c) Balanced iii. Michael Hammer
(A) Mission
Score Card and James
(B) Strategy Champy
(C) Policy (d) Learning iv. Robert S.
(D) Programme Organization Kaplan and David
3. The tests to assess a person’s ability to un- P. Norton
dertake a particular type of work or to learn Codes :
particular skills are called (a) (b) (c) (d)
(A) Aptitude tests (A) i ii iii iv
(B) Knowledge tests (B) iv iii ii i
(C) Intelligence tests (C) ii i iii iv
(D) Attitude tests (D) iii i iv ii
4. Match the following styles related to mana- 6. Which of the following is not the character-
gerial grid : istic of a transformational leader ?
(a) 1, 9 i. Impoverished (A) Inspiring by communicating high ex-
Management pectations.
(b) 1, 1 ii. Team Manage- (B) Promoting intelligence and rationality.
ment
(C) Treating employees individually.
(c) 9, 1 iii. Country Club
(D) Avoiding making decisions.
Management
(d) 9, 9 iv. Task Management 7. Which of the following is a machinery for
settlement of industrial disputes ?
(A) National Commission on Labour 13. Assertion (A) : Labour migration has been
(B) Wage Board accentuated by globalization.
(C) Industrial Tribunal Reason (R) : Low unionization is both a
(D) Standing Labour Committee cause and an outcome of migration.
8. The New Economic Policy led to : Codes :
(A) Weak bargaining power of workers’ (A) Both (A) and (R) wrong.
unions. (B) (A) is right and (R) validates (A).
(B) Strong union leadership. (C) (A) is wrong, but (R) is right.
(C) Decreased managerial militancy. (D) (A) is right, but (R) does not validate (A).
(D) Increased union membership. 14. According to Robert F. Hoxie, the ‘Business
9. Who was the first President of the Indian Unionism’ is also known as
Federation of Labour ? (A) Friendly Unionism
(A) M.N. Roy (B) Uplift Unionism
(B) Jamna Das Mehta (C) Predatory Unionism
(C) R.S. Ruirkar (D) Bread and butter Unionism
(D) V.V. Giri 15. Which of the following designations was
10. Which Article of the Indian Constitution suggested by the Royal Commission on
guarantees ‘just and humane conditions of Labour in its report ?
work and maternity relief’ ? (A) Welfare Officer
(A) Article 41 (B) Labour Officer
(B) Article 42 (C) Personnel Officer
(C) Article 43 (D) All the above
(D) Article 45 16. Which of the following statements about the
11. A Certifying Officer under the Industrial role of Government in Industrial Relations
Employment (Standing Orders) Act enjoys in India is not true ?
all powers of a Civil Court under the sec- (A) The Government Continues to play a
tion 345 of Cr. P.C., 1973 for purposes of controller’s role.
(A) receiving evidence, administering oaths (B) The Government moved away from the
but not for enforcing the discovery or controller’s role to enabler’s role.
production of documents. (C) The Government is generally reticent, if
(B) receiving evidence, administering not reluctant, to dole out administrative
oaths, enforcing attendance of wit- clearances for lay offs, closures, or re-
nesses and/or compelling discovery/ trenchment.
production of documents. (D) The Government has hardly made any
(C) receiving evidence, enforcing atten- efforts to shift its emphasis from con-
dance of witnesses compelling discov- flict resolution to conflict avoidance.
ery/production of documents, but not 17. Which of the following states pioneered the
enforcing attendance of witnesses. practice of setting up of ‘Labour Lokadalats’
(D) None of the above. for the speedy disposal of industrial dis-
12. 5 ‘S’ Japanese Model is associated with putes ?
(A) Quality Management (A) Haryana
(B) Cost effective activities (B) Gujarat
(C) Housekeeping (C) Maharashtra
(D) All the above (D) Punjab
18. Which of the following principles were 21. Which of the following statements about
taken into account while formulating the tripartism in India is not true ?
Model Grievance Procedure ? (A) It began in India before independence.
a. Conformity with the existing legislation. (B) It is relatively more widespread in the
b. Make the grievance handling machin- Central Government than in State Gov-
ery simple. ernment.
c. Make the grievance handling machin- (C) It became virtually defunct for a while
ery expeditious. and did not receive any impetus from
d. Designating the authorities to be con- the economic reforms initiated in 1991.
tacted at various levels of grievance pro- (D) As carried out presently, it has weak-
cedure. nesses both in terms of structure and
(A) Only a process.
(B) a and b 22. Arrange the following in a chronological
(C) a, b and c sequence sharing from the latest to the ear-
(D) a, b, c and d liest.
19. Which of the following have emerged as new a. 20-point Economic Programme.
‘actors’ in the changing industrial relations b. Appointment of the First National Com-
scenario ? mission on Labour.
a. Consumers c. Appointment of the Whitley Commis-
b. Community sion on Labour.
c. Journalists d. Enactment of the Inter-State Migrant
Workmen (Regulation of Employment
d. Environmental activists
and Conditions of Service) Act.
Codes :
Codes :
(A) Only a
(A) a, b, c and d
(B) a and b
(B) d, a, b and c
(C) a, b, c and d
(C) b, c, d and a
(D) a, b and c
(D) c, b, a and d
20. Which of the following statements is/are
23. What is the full form of AFL – CIO ?
considered as the portents for future of In-
dustrial Relations in India ? (A) Asian Federation of Labour and Con-
federation of International Organiza-
a. The plurality of Industrial Relations
tions.
will be seen not merely in terms of the
organized and the unorganized, but (B) Asian Federation of Labour and Con-
also union and non-union firms. gress of Industrial Organizations.
b. Industrial Relations will increasingly be (C) American Federation of Labour and
driven by contextual factors. Confederation of Industrial Organiza-
tions.
c. Trade unions have to search for a new
form and structure for maintaining (D) American Federation of Labour and
voice and representation. Congress of Industrial Organizations.
d. Increasingly the young, new and di- 24. Match the following :
verse workforce will resist joining Name of the Country in
unions. Legislation which enacted
(A) only a (B) a and b (a) Labour i. Great Britain
(C) a, b and c (D) a, b, c and d Management
Relations Act
(b) Trade Unions ii. USA (C) To mediate between labour and man-
and Labour agement to resolve conflict.
Relations Act (D) To discuss all matters of all India im-
(c) Unorganised iii. India portance between employers and em-
Sector Social ployees.
Security Act 28. Match the themes with approaches to in-
Codes : dustrial relations :
(a) (b) (c) Approach Theme
(A) i iii ii (a) Trusteeship i. Employers are
(B) i ii iii low unto them-
(C) ii i iii selves, providers
of job, income and
(D) ii iii i
social security.
25. Match the following Japanese words relat- (b) Radical ii. Conflict between
ing to the ‘5S’ concept and their meanings. employees is ra-
Japanese Words Meanings tional and inevi-
(a) Shitseke i. Clearing table.
(b) Seiton ii. Cleanliness (c) Pluralist iii. Production system
(c) Seiketsu iii. Discipline is privately owned
(d) Seiri iv. Orderliness and is profit ori-
(e) Seiso v. Sweeping/Wash- ented.
ing (d) Unitary iv. Holds property on
Codes : trust for others.
(a) (b) (c) (d) (e) (a) (b) (c) (d)
(A) i ii iii iv v (A) i ii iii iv
(B) iii iv ii i v (B) iv ii i iii
(C) v iii ii iv i (C) iv iii ii i
(D) ii i iv v iii (D) iv ii iii i
26. Which of the following characteristics of an 29. Which is not a feature of lockout ?
economy is a barrier to globalization of busi- (A) Temporarily closing the establishment.
ness ? (B) Suspending work.
(A) Shift of labour intensive industry to low (C) Workers refraining from work.
cost technology and advanced pro- (D) Employer refusing to provide work to
cesses. employees.
(B) Surplus labour. 30. Which of the following Acts was passed in
(C) Flexible production chains. USA to balance the power of employers and
(D) Global production chains and inte- unions ?
grated supply chain. (A) Clayton Antitrust Act
27. Which one of the following is not an object (B) Narris – Laguaradia Act
of the Indian Labour Conference ? (C) Wagner Act
(A) To promote uniformity in labour legis- (D) Taft – Hartley Act
lation. 31. Who used the term ‘collective bargaining’
(B) To lay down procedure for settlement first ?
of industrial disputes.
(A) J.H. Richardson
(B) John T. Dunlop 36. Globalization refers to
(C) Sidney and Beatrice Webbs a. the process of growing interdependence
(D) Neil W. Chamberlain among elements of global economy.
32. Which organization has made a declaration b. worldwide interdependence of resource
on Fundamental principles and Human flows, product markets and business
Rights at the work place as one of the com- competition.
ponents of ‘Decent Work’ ? c. interdependence of product markets
(A) First National Commission on Labour. only.
(B) Indian Labour Conference. d. interdependence for resources only
(C) International Labour Organization. (A) All the above statements are correct.
(D) Sachar Committee on Worker’s partici- (B) a and b are correct.
pation. (C) only c is correct.
33. Which of the following states that “a social- (D) only d is correct.
ist society is built not solely on monetary 37. Quality circle members are
incentives, but on ideas of service to society (A) paid by management for participation
and willingness on the part of the latter to in quality circles.
recognize such service ?” (B) formally trained for participation in
(A) First Five Year Plan quality circles.
(B) Second Five Year Plan (C) external consultants who improve qual-
(C) Fifth Five Year Plan ity.
(D) Eleventh Five Year Plan (D) led by active trade union leaders.
34. Name the legislation which empowers gov- 38. Which of the following models is popular
ernment of United Kingdom to bring settle- for its comparison of personnel manage-
ment in an industrial dispute in the event of ment and human resource management on
the parties not reaching an agreement. the basis of ‘Hard’ and ‘Soft’ approach ?
(A) Trade Unions and Labour Relations Act (A) David Guest’s Model
(B) Employment Protection Act (B) John M. Story’s Model
(C) Conciliation Act (C) C.J. Fomburn’s Model
(D) Voluntary Arbitration Act (D) Karen Legge’s Model.
35. Match the following outcomes with the pro- 39. Burnout is
cesses of Industrial Relations. (A) Depletion of Physical and Mental Re-
Process Outcomes sources due to excessive striving to
(a) Conciliation i. Agreement reach unrealistic work goals.
(b) Collective ii. Award (B) Lowest level of productivity due to ex-
bargaining cessive strikes or lockouts.
(c) Adjudication iii. Consent (C) Depreciation of human resource due to
Award changes in technology.
(d) Adjudication by iv. Settlement (D) Boredom due to repetitive work.
mutual consensus 40. Performance management is a system that :
(a) (b) (c) (d) a. ensures that employee’s performance is
(A) ii iv i iii supporting company’s aims.
(B) iv i ii iii b. Starts with fixing performance stan-
(C) iii i iv ii dards and ends with comparing results
with those standards.
(D) i iii ii iv
c. Includes daily or weekly interactions to (B) is committed to eradicate social oppres-

ensure continuous improvement in sion in all forms within the organiza-
employee’s performance. tion.
d. ensures that employee has requisite (C) includes members of diverse cultural
training to perform the job. and social groups in decision making.
(A) a only (D) All of the above.
(B) a and d only 47. Who popularized Quality of work life as a
(C) a, c and d global phenomena ?
(D) a, b, c and d (A) T.V. Rao, Biju Varkkey and Hasmukh
41. A business firm may opt for Voluntary Re- Adhia.
tirement Scheme (VRS) under the following (B) James Austin, Peter Villanova and
circumstances Hugh Hindwar.
(A) recession in business. (C) Einar Thorsrud, Fred Emery and Eric
(B) intense competition and thus firm be- Tryst.
comes unviable. (D) Richard Reilly, James Smithy and
(C) joint ventures with foreign collabora- Nicholas Vasilopolous.
tions. 48. Match the following :
(D) All of the above. Books Authors
42. How many defects per million products or (a) Competitive i. Peter Senge
services are permitted under Six Sigma Tech- Advantage
nique ? (b) Competing ii. Douglas
(A) 3.4 (B) 4.3 for Future Murray
(C) 2.3 (D) 3.2 McGregor
43. Greet Hofstede’s cultural dimensions do not (c) The Fifth iii. Michael E.
include Discipline Porter
(A) Individualism/Collectivism (d) The Human iv. C.K. Prahallad
Side of Enterprise and Gary
(B) Power distance
Hamel
(C) Uncertainty avoidance
(a) (b) (c) (d)
(D) Political dominance
(A) iii iv i ii
44. Which of the following does not help in (B) i ii iii iv
meeting the needs of dual-career couples ?
(C) iv iii ii i
(A) Flexitime
(D) iii iv ii i
(B) Compressed work week
49. What is the full form of SQCDM which char-
(C) Job sharing
acterizes Toyota Perfection ?
(D) Life-cycle accounts
(A) Systematic, Questioning, Comparing,
45. A polycentric organization has Discussing, Measurement.
(A) Parent country oriented approach. (B) Statistical, Qualitative, Comprehensive,
(B) Host country oriented approach Directive, Measurement.
(C) Global approach. (C) Systematic, Qualitative, Collaborative,
(D) Third country oriented approach. Diversifying, Monitoring.
46. A multicultural organization (D) Safety, Quality, Cost, Delivery, Morale.
(A) reflects interests of diverse socio – cul- 50. Who gave the concept of ‘Life- Positions’ in
tural groups in its mission and opera- the context of Transactional Analysis ?
tions.
(A) Eric Berne 56. Employee compensation was denied by the
(B) Thomas A. Harris employer on the pretext of certain traditional
(C) Joseph Lufth and Harry Inghams doctrines. Which of the following is/are
(D) Jay Galbraith part of those doctrines ?
a. Doctrine of Assumed Risk.
51. Who developed the ‘Managerial Grid’ on
the basis of Ohio State Study ? b. Doctrine of Contributory negligence.
(A) Rensis Likert. c. Doctrine of Common employment and
fellow servants’ responsibility.
(B) Lewin, Lippitt and White.
d. Doctrine of Employer’s Right.
(C) Robert Blake and Jane S. Mouton.
(A) a, b, d (B) a, b, c
(D) Victor Vroom and Phillip Yetton.
(C) b, c, d (D) c
52. In India, the scheme of workers’ education
operates at which levels ? 57. Which out of the following is/are reasons
for the low efficacy of ILO ?
(A) National
a. The recommendations made by ILO are
(B) Regional
just advisory notes.
(C) Unit/Village
b. The conventions are not binding unless
the member countries ratify them.
53. A virtual organization has which of the fol- c. There is no power with ILO to instruct
lowing elements ? the member countries to adopt its rec-
a. E-mail integration and office systems ommendations and conventions.
integration. d. The local conditions of the member
b. Information technology. countries are a constraint.
c. Mobile data. (A) a, b (B) b
d. Voice mail alert. (C) a, b, c (D) a, b, c, d
(A) only a (B) a and b 58. As per latest amendment of Industrial Dis-
(C) a, b and c (D) a, b, c and d putes Act, in 2010 what is the wage limit of
54. Dejobbing means a ‘workman’ to be covered under the Act
a. broadening responsibilities of jobs. and what was the earlier limit ?
b. another form of retrenchment. (A) Rs. 10,000 per mensem enhanced from
c. limiting the chances of lay offs. Rs. 1,600 per mensem.
d. downsizing the organization. (B) Rs. 10,000 per mensem enhanced from
(A) only a (B) b and c Rs. 3,600 per mensem.
(C) only d (D) b, c and d (C) Rs. 5,000 per mensem enhanced from
Rs. 1,600 per mensem.
55. Total Quality Management is a
(D) Rs. 7,500 per mensem enhanced from
(A) responsibility of quality management Rs. 3,600 per mensem.
staff to identify and solve quality related
problems. 59. Which of the following historical reasons
were responsible for the enactment of the
(B) commitment to quality that goes beyond
Trade Unions Act ?
internal company issues to suppliers
and customers. a. Formation of ILO.
(C) system where top management takes b. Emergence of Provincial Governments.
decisions. c. The strike spearheaded by the Madras
(D) procedure which involves quantitative Labour Union in Buckingham &
tools exclusively for quality improve- Carnatic Mills.
ments.
d. The ascendance of Labour Party to the 63. Which of the following statements about
British Government as the ruling party. implementation machinery of Labour legis-
(A) a, c (B) b, c lation is/are not true ?
(C) a, c, d (D) b, c, d a. The State Government is the appropri-
60. Match the following Committee/Commis- ate authority to implement Labour Leg-
sions with the chairpersons. islations in the jurisdiction of the State.
Committee/ Chairpersons b. The State Government is the appropri-
Commissions ate implementing authority of Labour
Legislation even for Central Govern-
(a) Royal Commission i. P.B. Gajendra
ment Organizations located in the State.
on Labour gadkar
c. The State Government has no authority
(b) Labour ii. J.H. Whitley
to implement Labour Legislations in the
Investigation
Central Government Organisations
Committee
even though they are located in the state.
(c) First National iii. Ravindra d. The Central Government can over rule
Commission on Verma the State Government in implementing
Labour Labour Legislations in any organiza-
(d) Second National iv. W.A. Rege tion irrespective of their location.
Commission on (A) b, d (B) a, d
Labour
(C) b, c, d (D) a, b, d
(a) (b) (c) (d)
64. Assertion (A) : National Renewal Fund
(A) ii i iv iii
(NRF) to train the worker’s rendered unem-
(B) iv ii iii i
ployed and displaced due to restructuring
(C) ii iv i iii was created as a sequel to new economic
(D) iii i iv ii policy, was neither adequate nor used prop-
61. In which year the first Factories Act was erly.
enacted ? Reason (R) : Voluntary Retirement Schemes
(A) 1881 (B) 1891 introduced by Public Sector Undertakings
(C) 1911 (D) 1948 diverted much of the NRF.
62. The principle of social justice regulating Codes :
labour legislations which envisages the (A) Both (A) and (R) are wrong.
policy that “All human beings irrespective (B) (A) is right, (R) is wrong.
of race, creed or sex have the right to pursue (C) (A) is wrong, (R) is right.
both their material well-being, and their (D) (A) is right and (R) validates (A).
spiritual development in conditions of free- 65. Which of the following statements about
dom and dignity, of economic security and labour legislation in India is true ?
equal opportunity” was propagated by
(A) Labour Legislation is not a part of So-
a. The Philadelphia chapter
cial legislation.
b. The Magna Carta (B) Labour Legislation is influenced by the
c. The Constitution of India Philosophy of Laissez faire.
d. The League of Nations (C) Majority of Legislations are influenced
(A) Only a by ILO conventions and recommenda-
(B) Both a and c tions.
(C) a, b, c (D) Labour Legislation in India are largely
(D) a, c, d result of trade union initiatives.
66. Which of the following is the Executive 70. Who is an ‘inspector’ under the Payment of
Council of ILO ? Wages Act for the purposes of factories in
(A) International Labour Conference. the local limit ?
(B) International Labour Office (A) The Inspector appointed by the State
(C) International Labour Institute Government in respect of such estab-
(D) The Governing Body lishments.
(B) The Inspector of factories appointed
67. Which of the following has the power to
under the Factories Act.
apply all or any of the provisions of the Fac-
tories Act to certain premises ? (C) The Inspector appointed by the Central
Government for the said purpose.
(A) The Chief Inspector of Factories of a
(D) The Inspector appointed by the appro-
State.
priate Government for the said purpose.
(B) The Central Government.
71. Assertion (A) : Conciliation machinery in
(C) The State Government.
India has been playing a positive role, but
(D) Both Central and State Governments. often it is not recognized and is considered
68. According to recommendations of Second as avoidable hurdle.
National Commission on Labour, which of Reason (R) : Due to the lack of professional-
the following must be regarded as ‘miscon- ism and objectivity, and susceptibility to
duct’ and not as ‘Industrial dispute’ ? political pressures, conciliation becomes
a. Go-slow ineffective.
b. Work-to-rule Codes :
c. Strike (A) (A) is right, but (R) does not validate (A).
d. Lockout (B) (A) is correct, but (R) is wrong.
(A) only d (B) a, b, c (C) (A) is right and (R) validates (A).
(C) a and b (D) only a (D) Both (A) and (R) are wrong.
69. Which of the following statements are not 72. Which of the following is not a principle of
true in relation to employment of contract Labour Legislation ?
labour in any establishment ? (A) Social Justice
a. Supreme Court can abolish contract (B) Social Welfare
labour system in any establishment. (C) National Economy
b. High Court can abolish contract labour (D) Control of Environment
and prohibit the principal employer 73. Which of the following had not been respon-
from engaging contract labour where sible for initiating enactment of labour leg-
the Government has not abolished the islations in India ?
same. a. Colonial Rule
c. An appropriate Government and not b. Adoption of Indian Constitution
the court can prohibit the employment
c. Indian tradition/social system
of contract labour as per the provisions
d. Nationalist Movement for freedom
of law.
(A) a, b (B) a, b, c
d. Neither the court nor the appropriate
Government can abolish the contract (C) a, b, c, d (D) a, b, d
labour in any establishment. 74. Which of the following is not a modifica-
(A) a, b (B) a, b, d tion of any existing legislation, but a pro-
(C) a, b, c (D) a, b, c, d posed new legislation by the Second Na-
tional Commission on Labour?
(A) Child Labour (Prohibition and Regula- 75. The Minimum Wages Act in India is the
tion) Bill. outcome of recommendations of which of
(B) Labour Management Relations Bill. the following ?
(C) Small Enterprises (Employment Rela- a. Rege Committee
tions) Act. b. Indian Labour Conference
(D) Unorganized Sector Social Security c. Labour Investigation Committee
Act. d. Royal Commission on Labour
(A) a, b (B) a, b, d
(C) a, b, c, d (D) a, b, c
ANSWERS
1. (C) 2. (B) 3. (A) 4. (C) 5. (D) 6. (D) 7. (C) 8. (A) 9. (B) 10. (B)
11. (B) 12. (C) 13. (D) 14. (D) 15. (B) 16. (B) 17. (D) 18. (D) 19. (C) 20. (D)
21. (C) 22. (B) 23. (D) 24. (C) 25. (B) 26. (B) 27. (C) 28. (C) 29. (C) 30. (D)
31. (C) 32. (C) 33. (B) 34. (C) 35. (B) 36. (B) 37. (B) 38. (B) 39. (A) 40. (C)
41. (D) 42. (A) 43. (D) 44. (D) 45. (B) 46. (D) 47. (C) 48. (A) 49. (D) 50. (B)
51. (C) 52. (D) 53. (D) 54. (A) 55. (B) 56. (B) 57. (D) 58. (A) 59. (C) 60. (C)
61. (A) 62. (B) 63. (A) 64. (D) 65. (C) 66. (D) 67. (C) 68. (C) 69. (B) 70. (B)
71. (C) 72. (D) 73. (B) 74. (C) 75. (B)
December, 2014
PAPER-II
all the questions.
1. Who identified the basic elements of work 5. The tendency of people to expend less effort
known as ‘therbligs’ ? when working collectively than when
(A) Henry L. Gantt working individually is called
(B) Frank B. Gilbreth (A) Social loafing (B) Socialising
(C) F.W. Taylor (C) Adjourning (D) Social action
(D) All of the above 6. Personnel Management is essentially a
2. Who among the following concluded that (A) Matrix function
the factory was a social system and informal (B) Line function
groups at work place play a vital role in (C) Staff function
industrial affairs ? (D) Line & staff function
(A) Elton Mayo 7. Which of the following comes under the
(B) Henry Fayol scope of line and staff relationship ?
(C) Blake and Mouton (A) The relationship between works
(D) Herzberg manager and maintenance engineer
3. Arrange the steps of decision making (B) The relationship between works
process in the correct sequence : manager and personnel manager
a. analysis of alternatives (C) The relationship between personnel
b. identification of decision criteria manager and development engineer
c. implementation of alternative (D) The relationship between the public
d. identification of problem relation officer and the public
e. selection of alternative 8. The broad statement of the duties and
(A) d, b, a, e, c (B) d, a, b, e, c responsibilities of a Job or position is called
(C) d, a, b, c, e (D) d, a, e, b, c (A) Job description (B) Job specification
4. Departmentation is (C) Job analysis (D) Job evaluation
a. structuring work to accomplish 9. The function of attracting, acquiring
organisational goals and inducting Human Resources in an
b. visual display of organisation structure organisation is called
c. grouping of jobs on some basis (A) Selection (B) Recruitment
d. arranging jobs in a hierarchy (C) Staffing
(A) a and b only (D) Training and Placement
(B) b and c only 10. Wage Boards Fix wages for employees at
(C) a only (A) Regional level (B) Plant level
(D) c only (C) National level (D) Industry level
11. Which of the following is not a Simulation 16. Match the following theories and the
Technique of development ? scientists who propounded them :
(A) In-basket List – A List – B
(B) Case study (Theories) (Scientists)
(C) Sensitivity Training I. Two Factor a. Adolf Alderfer
(D) Management Games Theory
12. Match the following Expression with the II. Achievement
Ego states mentioned against them : Motivation b. Murray
Expression Ego States Theory
a. Rationality i. Parent III. Manifest Need c. Frederic
b. Fantasizing ii. Child Theory Hertzberg
c. Demonstrating iii. Adult IV. ERG Theory d. David
Codes : McClelland
a b c Codes :
I II II IV
(A) i ii iii
(B) ii i iii (A) d c b a
(C) iii ii i (B) a b c d
(D) i iii ii (C) c d b a
(D) a d c b
13. Selectivity in responding to information that
is in conformity with one’s own feeling, is 17. Which of the following sequence of group
because of development process is correct ?
(A) Cognitive Dissonance I. Performing II. Norming
(B) Perceptual Defence III. Forming IV. Storming
(C) Filtering V. Adjourning
(D) Mis-perception Codes :
(A) V I II IV III
14. When one group’s performance depends on
another group’s performance, it may result (B) III IV III V
into inter-group conflict. Such dependence (C) III I II V IV
is described as : (D) I V III II IV
(A) Pooled interdependence 18. Assertion (A) : The content Theories of
(B) Classical interdependence Motivation assume a direct relationship
(C) Reciprocal interdependence between Job Satisfaction and improved
(D) Sequential interdependence performance.
15. The act of an organization which ‘re- Reason (R) : Job satisfaction does not
examines its organisational structures, necessarily lead to work performance.
systems and procedures from time to time, (A) (A) is true, (R) is false.
even when the organisation is successful (B) (A) is false, (R) is true.
and has no problems necessitating such (C) Both (A) and (R) are true. (R) is not the
examination’ is known as : correct explanation of (A).
(A) Performance Appraisal System (D) Both (A) and (R) are false. (R) is the
(B) Counteracting system correct explanation of (A).
(C) Self-renewal system 19. When people give ‘Cause and Effect
(D) Development system explanation’ to their behaviour, it is called
(A) Closure (B) Stereotyping (B) Section 23
(C) Attribution (D) Inference (C) Section 24
20. The term “Blind Spot” in the Johari Window (D) All the above sections.
refers to 25. Which of the following statements about a
(A) The ‘Public self’ which is known to conciliation officer is not correct ?
others as well as to oneself. (A) He/she has no authority to pass a final
(B) The ‘self’ which is known to others but order directing the parties to a dispute
not to oneself. to act in a particular manner.
(C) The ‘self’ which is neither known to (B) He/she shall be deemed to be a public
others nor to oneself. servant within the meaning of Section
(D) The motives, feelings, etc. which are 21 of the Indian Penal Code.
known to oneself. (C) The appropriate government cannot
21. Which approach to industrial relations aims appoint a conciliation officer for
to combine social stability with adaptability specified industries in a specified area.
and freedom ? (D) It is mandatory for the conciliation
(A) Classical approach officer to hold conciliation proceedings
if a dispute relates to a public utility
(B) Neo-classical approach
service and a notice has been given.
(C) Pluralistic approach
(D) Social action approach 26. Who emphasised that the trade union
movement had emerged as labour’s reaction
22. Which of the following statements about the to the dominance of the machine in modern
Marxist approach to industrial relations is society ?
not correct ?
(A) G.D.H. Cole
(A) It sees industrial conflict as synony-
(B) Selig Perlman
mous with political and social conflicts.
(C) Karl Marx
(B) It considers pluralism as a mere
(D) Frank Tannenbaum
illusion.
(C) It believes that capitalism cannot 27. Any Union that caters to all employees work-
continue to maintain itself only by ing in a variety of industries under one
lowering the standard of living of the owner located at the same place is
working class. categorised as
(D) It favours transformation of (A) Primary union of industrial type
trade unions into revolutionary (B) Primary union of general type
organisations. (C) Primary union of craft type
23. Disputes that arise out of deadlocks in (D) Region-cum-industrial level union
negotiations for a collective agreement are 28. Arrange the following trade union
popularly known as federations on the basis of their year of
(A) Grievance Disputes emergene from the earliest to the latest :
(B) Interest Disputes (a) CITU (b) UTUC
(C) Recognition Disputes (c) AITUC (d) INTUC
(D) Unfair Labour Practice Disputes (e) BMS
24. In India, strikes in contravention of the Codes :
provisions of which section(s) of the (A) c, d, b, e, a (B) a, e, b, d, c
Industrial Disputes Act, are illegal ? (C) d, c, b, e, a (D) c, b, d, a, e
(A) Section 22
29. Which of the following statements is/are (D) When the industrial dispute is referred
true about trade unionism in India ? to the Labour Court/Industrial
a. It had moorings in the freedom struggle. Tribunal.
b. It had received patronage from 34. Which of the following statements relating
employers. to Labour legislation is not true ?
c. It originated due to workers’ demands. (A) It seeks to regulate the balance of power
d. It originated due to imperatives of in the relationship between the
tripartite representation in the ILO. employers and the Government.
Codes : (B) It aims to improve living conditions of
(A) Only a (B) a and b the workers and their family members.
(C) a, c, d (D) a, b, d (C) It has implications for promoting labour
efficiency.
30. The ‘Socialist Manifesto’ for converting
capitalist economy into a mixed economy (D) It protects minimum labour standards
was developed by and improves working conditions.
(A) Karl Marx 35. Under the provisions of the Payment of
(B) G.D.H. Cole Gratuity Act, 1972, employees working in a
seasonal establishment and who have not
(C) William Baveridge
been employed throughout the year, the
(D) Sidney and Beatrice Webbs
employers shall be paid gratuity at the rate
31. The enactment of the Equal Remuneration of
Act, 1976 is associated with which of the (A) 10 days of wages for every year
following conventions of the ILO ?
(B) 10 days of wags for every season
(A) Convention No. 111, 1958 (C) 15 days of wages for every year
(B) Convention No. 100, 1951 (D) 7 days of wages for every season
(C) Convention No. 123, 1975
36. Under the Factories Act, 1948, the spread
(D) Convention No. 118, 1964
over period including rest interval in a day
32. The valuation of the assets and liabilities of for an adult worker should not normally
the ESI corporation shall have to be made at exceed
an interval of (A) 10 ½ hours (B) 11 hours
(A) Two years (B) Five years (C) 12 hours (D) 11 ½ hours
(C) Four years (D) Three years 37. Which of the following conditions relating
33. When a conciliation proceeding relating to to claims under the Minimum Wages Act,
an industrial dispute ends without reaching 1948 is not true ?
a settlement, then under which of the (A) The authority to hear and decide for all
following conditions it is deemed that claim cases shall be appointed by the
conciliation proceeding has been appropriate Government.
concluded? (B) Any legal practitioner with a written
(A) When the conciliation officer concludes authorisation from the concerned
the proceedings. employee can make a claim application
(B) When the conciliation officer submits on behalf of the employer.
the report to the appropriate Govern- (C) Any claim application shall have to be
ment. presented within one year from the date
(C) When the report of the conciliation on which minimum wages became
officer is received by the appropriate payable.
Government.
(D) The Inspector with permission of the d. It talks about the infrastructural
Authority appointed under the Act, can facilities provided by the organisation.
make a claim application for an Codes :
employee. (A) a, c (B) a, b
38. What is the minimum amount of bonus (C) a, b, c (D) a, b, c, d
payable to an adult employee during an 43. Examines the following statements about
accounting year ? industrial accidents and safety manage-
(A) Rs. 1000 (B) Rs. 100 ment. Indicate the one which is not relevant.
(C) Rs. 833 (D) Rs. 750 (A) Accident Proneness is a behavioural
39. What is the maximum amount of fine that and attitudinal problem that some
can be imposed on an employee in a wage employees suffer from.
period under the Payment of Wags Act, (B) Safety consciousness is not a trainable
1936? trait.
(A) Three percent of wage (C) Safety in industry can improve if the
(B) Five percent of wage provisions laid down in the Factories
(C) Ten percent of wage Act, 1948 or any such relevant law are
(D) Eight percent of wage strictly followed.
40. Who among the following ‘relatives’ of a (D) “Accidents do not just happen but are
deceased employee are dependants under caused” is only partly true.
the Employees’ Compensation Act, 1923 ? 44. Match the following principles of labour
i. Widowed mother welfare with the relevant themes :
ii. a widower Principle Theme
iii. a minor child of a predeceased daughter a. Principle of i. Delegation of
iv. a paternal grandparent coordination authority to the
committees
(A) Both i and iv (B) i, ii and iii
b. Principle of ii. Avoiding
(C) Both ii and iv (D) Both i and ii
association procrastination in
41. Assertion (A) : Labour Welfare is not social welfare work.
work being its result but an area of social c. Principle of iii. Avoiding
work. responsibility piecemeal
Reason (R) : As labour too needs the approach to
enabling help of social work professional, labour welfare
social work is no trespasses in the realms of and adopting a
labour welfare. total perspective.
(A) (A) is right, (R) is wrong. d. Principle of iv. Eliciting the
(B) (A) is wrong, (R) is right. timeliness participation and
(C) (A) and (R) are wrong. collaboration of
(D) (A) is right and (R) explains the (A). workers and their
42. Which of the following statements about representatives.
‘housekeeping’ is/are true ? Codes :
a. It believes in “a place for everything and a b c d
everything in its place” principle. (A) iii iv i ii
b. It is a culture of maintaining cleanliness. (B) ii iv i iii
c. It is a system of arranging materials in (C) iii ii iv i
order of their importance and frequency (D) iv ii i iii
of use.
45. Which of the following is an example of Codes :

‘extra-mural’ labour welfare ? a b c d
a. Co-operative credit society (A) iii i iv ii
b. Recreation facility (B) ii iv iii i
c. Library and Reading Rooms (C) iv iii i ii
d. Shelters and Rest Rooms (D) i iii ii iv
Codes : 47. Which of the following is not a feature of
(A) b and c (B) a, b and c labour market ?
(C) b, c and d (D) c and d (A) It is essentially local in character.
46. Match the following concepts of labour with (B) It is not monopolistic.
the relevant theme : (C) It is less mobile compared to commodity
Concept of Labour Theme and capital markets.
a. Commodity i. Labour regarded (D) Monospony in the labour market is less
concept of by the employer common than monopoly.
Labour largely as operat- 48. Which of the following theories of wages is
ing organizations called as the ‘Iron Law of Wages’ ?
in industry. (A) Subsistence Theory
b. Machinery ii. Labour has right (B) The Standard of Living Theory
concept of to be consulted in
(C) The Wage Fund Theory
Labour regard to the terms
(D) The Residual Claimant Theory
and conditions
under which they 49. Which of the following is not a factor that
are supposed to creates wage differentials ?
work. (A) Differences due to existence of non-
c. Goodwill iii. Labour is affected competing groups.
concept of by the law of (B) Non-equalizing differences
Labour supply and (C) Differences in Labour Quality
demand. (D) Labour Market Perfections
d. Citizenship iv. Paternalistic 50. On what basis the money wage can be
concept of approach converted into real wages ?
Labour towards labour by (A) Consumer Price Index
the employers.
(B) Wholesale Price Index
(C) Retail Price Index
(D) Money Exchange Rate
ANSWERS
1. (B) 2. (A) 3. (A) 4. (D) 5. (A) 6. (D) 7. (B) 8. (A) 9. (C) 10. (D)
11. (C) 12. (C) 13. (A) 14. (D) 15. (C) 16. (C) 17. (B) 18. (C) 19. (C) 20. (B)
21. (C) 22. (C) 23. (B) 24. (D) 25. (C) 26. (D) 27. (B) 28. (A) 29. (D) 30. (D)
31. (B) 32. (D) 33. (C) 34. (A) 35. (D) 36. (A) 37. (C) 38. (B) 39. (A) 40. (D)
41. (D) 42. (C) 43. (B) 44. (A) 45. (B) 46. (A) 47. (D) 48. (A) 49. (D) 50. (A)
December, 2014
PAPER-III
1. The overlapping area of the range of two (D) To enable trade unions themselves to
Negotiating parties which indicates the take over ultimately the functions of
existence of the possibility of settlement, is workers’ education.
known as : 5. Which of the following statements about
(A) Ideals wage differentials is true ?
(B) Negotiating Continuum a. There are differentials that can be attrib-
(C) Compromising Continuum uted to the imperfections of the employ-
(D) Arena ment market.
2. Pareto chart represents – b. There are wage differentials which
a. most common sources of defects originate in social values and preju-
dices.
b. highest occurring type of defect
c. There will be occupational wage differ-
c. most frequent reason for customer
entials even if employment markets
complaints
were perfect and social prejudices were
(A) a and c (B) a and b
absent.
(C) b and c (D) a, b and c Codes :
3. In making fish bone diagram, causes of (A) Only a (B) a and b
problems are identified through (C) b and a (D) a, b and c
(A) Synetics
6. The government policy with regard to post-
(B) Brainstorming
liberalisation industrial relations has wit-
(C) Nominal Grouping nessed a change. Which of the following
(D) Creative thinking indicates that ‘focussed change’ as evident
4. Which of the following is not an objective of from the reference made to the Industrial
workers’ education in India ? Commission on Labour ?
(A) To strengthen among all sections of the a. The thrust was on improving the con-
working class including rural workers, ditions of labour.
a sense of patriotism, national integrity, b. The thrust was on labour law reforms
unity, communal harmony, secularism to align labour policies with the require-
and pride in being an Indian. ments of the product market.
(B) To equip all sections of workers includ- c. The thrust was on an umbrella legisla-
ing rural workers for their intelligent tion for the unorganized sector.
participation in asserting their right d. The thrust was on strengthening trade
through strike. unions.
(C) To develop leadership among the rank (A) a, b (B) a, c
and file of workers themselves. (C) b, c (D) b, c, d
7. Match the following definitions of trade 9. Which of the following economic ideologies
union with the author : is dominant under the current scenario of
Definition of trade union Author globalisation ?
a. A trade union is a i. G.D.H. Cole (A) Promoting socialism
continuous (B) Promoting radical communism
association of wage (C) Promoting capitalism with democratic
earners for the ideals
purpose of (D) Promoting mixed economy
maintaining or 10. Assertion (A) : Collective bargaining is a
improving the mutual process of give and take between
conditions of their employer and employee.
working lives.
Reason (R) : Concession bargaining arises
b. A trade union ii. Clyde
when employee plays the role of giver and
is a continuing E. Dankert employer becomes the taker.
organisation of
(A) Both (A) and (R) are right and (R) ex-
employees for the
plains the mutuality part in (A).
purpose of protecting
or improving, through (B) Both (A) and (R) are wrong.
collective action, (C) (A) is right, but (R) is wrong.
the economic and (D) (A) is wrong, but (R) explains a new
social status of trend in collective bargaining.
its members. 11. Which of the following statements relating
c. A trade union is an iii. Sydney and to the Advisory Committee under the Equal
association of Beatrice Remuneration Act, 1976 is true ?
workers in one or Webbs (A) The Central Government is only com-
more professions petent to constitute an Advisory Com-
carried on mainly mittee.
for the purpose of (B) The Advisory Committee shall have at
protecting and least one third representation from
advancing the women as members.
members’ economic (C) The Advisory Committee shall regulate
interest in connection its own procedure.
with their daily work.
(D) The Advisory Committee shall consists
Codes : of not less than twelve members.
a b c
12. Match the facilities to be provided depend-
(A) ii i iii ing upon the number of workers employed
(B) iii i ii under the Factories Act, 1948.
(C) i ii iii Facilities Required number
(D) iii ii i of workers
8. Which of the following was meant to im- a. Shelter and rest i. More than 500
pair the emergence of trade unions in Great rooms workers
Britain ? b. Cool drinking ii. More than 250
(A) Trade Union (Prohibition) Act water during hot workers
(B) Combination Acts weather
(C) Union Busting Act c. Ambulance iii. More than 150
(D) Employers’ Right to Free Business Act room workers
d. Welfare officer iv. 500 or more d. Morale differs from job satisfaction on
workers the strength of it being a group
Codes : behaviour.
a b c d (A) a, b (B) a, b, c, d
(A) i iv iii ii (C) a, b, d (D) b, c, d
(B) iii ii i iv 17. Under which of the following circum-
(C) iv i ii iii stances, Voluntary Retirement Scheme can
(D) ii iii iv i be proposed by a firm ?
13. As per the Factories Act, 1948 what is the a. Recession in business
minimum number of days of leave allowed b. Joint venture with foreign collaborators
to a child worker which makes him eligible c. Takeover and merger
to get wages in advance for the period of d. Obsolescence of product or technology
leave allowed ? Codes :
(A) Three days (B) Four days (A) Both a and b (B) a, c and d
(C) Five days (D) Six days (C) a, b and d (D) a, b, c and d
14. Which of the following statements about 18. The ‘golden handshake’ means
workers’ participation in management in (A) Voluntary retirement
India is/are true ? (B) Suspension of employee
a. It has constitutional sanction. (C) Shaking hand with newly appointed
b. Information sharing, problem solving, employee
joint consultation and joint decision (D) The act of bribing
making are different levels of participa-
tion. 19. Under the provisions of the Factories Act,
1948, the total number of hours of work in a
c. It has not completely succeeded in solv-
week including overtime shall not exceed
ing the problems of mutual interest be-
tween employer and employee. (A) Sixty hours
(B) Fifty four hours
d. There is no statutory provision for
institutionalising workers’ participa- (C) Seventy two hours
tion in management excepting the works (D) Sixty four hours
committee. 20. As per the provisions of the Factories Act,
Codes : 1948, when a worker is super annuated or
(A) b and c (B) c and d dies while in-service, within how many
(C) b, c and d (D) a, b and c months the wages in lieu of the leave to
which he was entitled to, has to be paid from
15. Discharging or dismissing workmen by way
the date of such superannuation or death ?
of victimisation is prohibited under which
of the Schedules of the Industrial Disputes (A) One month
Act, 1947 ? (B) Three months
(A) Schedule – II (B) Schedule – IV (C) Four months
(C) Schedule – V (D) Schedule – III (D) Two months
16. Which of the following statements are cor- 21. Which of the following interventions is re-
rect ? lated to intergroup relations ?
a. Monotony arises out of repetitive work. (A) Life and Career Planning
b. Fatigue arises out of continuous work. (B) Process Consultation
c. Positive stress is called eustress and (C) Work redesign
negative stress is called as distress. (D) Behaviour Modelling
22. Which of the following types of control is a. All India Organisation of Employers
applied when the work is in progress ? b. Associated Chambers of Commerce
(A) Feed forward control c. Federation of Indian Chambers of Com-
(B) Feedback control merce and Industry
(C) Concurrent control d. Employer’s Federation of India
(D) Regular control Codes :
23. The country, where the headquarter of a (A) b, c, d, a (B) c, b, a, d
multinational company is located, is known (C) a, d, c, b (D) c, a, d, b
as 29. What is a ‘closed shop’ system ?
(A) Host country (B) Home country (A) A shop closed due to non-availability
(C) Third country (D) None of these of labour.
24. Which of the following pairs is correctly (B) An impasse situation in industrial re-
matched ? lations.
(A) Job analysis method : Observation (C) A situation where trade union stalls the
method operations of industry.
(B) Job description : Necessary qualifica- (D) A business enterprise which has an
tions required for the job agreement with the union that a worker
(C) Job specification : Relationship of a job must be a member of the union at the
with other jobs in the organisation time of his employment and continue to
(D) Transfer : Lateral shifting of employees do so in order to retain his job.
25. In which of the following pay plans, em- 30. Which of the following are union security
ployer divides the value added for the pe- measures ?
riod by the total payroll expenses ? a. Closed shop system
(A) Scanlon Plan b. Union shop system
(B) Rucker Plan c. Maintenance Membership Shop
(C) Improshare Plan d. Open Shop System
(D) All of the above Codes :
26. During whose tenure as Minister of Labour, (A) Only a (B) a and b
Government of India, the Indian industrial (C) a and d (D) a, b, c
relations policy decisively shifted towards 31. Ordinarily which of the following principles
Government intervention ? is to be followed while retrenching work-
(A) V.V. Giri men of one category, under the provisions
(B) Gulzari Lal Nanda of the Industrial Disputes Act, 1947 ?
(C) Jagjivan Ram (A) Last come first go
(D) Khandubhai Desai (B) Last come last go
27. Which of the following countries pioneered (C) First come first go
the establishment of an independent Labour (D) Deadwoods first go
Party by a Trade Union Congress ? 32. Which one of the following authorities has
(A) USA (B) Canada the administrative responsibility for imple-
(C) UK (D) Australia mentation of the Maternity Benefit Act, 1961
28. Sequence the following employer for the circus industry?
organisations, in the order from the earliest (A) Director General of Mines Safety
to the latest, in terms of their year of estab- (B) Chief Labour Commissioner (Central)
lishment. (C) Director General, Factory Advice Service
(D) Respective Labour Commissioners of the 37. The trade union leader who wrote the book
States ‘Amidst Dust and Fume’ depicting his fail-
33. The British Industrial Relations Act, 1971 ure as the CEO of Durgapur Steel Plant is
provided for which of the following clauses (A) G. Ramanujam
for compulsory membership of workers in (B) Michael John
unions ? (C) Bagaram Tulpule
a. Closed shop (D) Ravindra Verma
b. Agency shop 38. Which of the following are statutory con-
c. Approved closed shop sultation machineries at the central level ?
d. Union shop a. Dock Workers’ Advisory Committee
Codes : b. Central Minimum Wages Advisory
(A) a, b (B) a, c Board
(C) b, d (D) b, c c. Employees State Insurance Corporation
34. Which of the following veteran leaders of d. Labour Welfare Advisory Committees
the National Movement was also the first under different Labour Fund Acts
president of AITUC ? Codes :
(A) Bal Gangadhar Tilak (A) a, b, d (B) a, b, c, d
(B) Lala Lajpat Rai (C) a, c, d (D) a, b, c
(C) Mahatma Gandhi 39. Which of the following welfare facilities are
(D) Subhash Chadnra Bose provided under the Plantation Labour Act,
35. Match the following : 1951 ?
List – I List – II a. Recreational facilities
a. The Plantation i. Welfare b. Educational facilities
Labour Act, 1951 Legislation c. Housing facilities
b. The Trade Unions ii. Social Security d. Transport facilities
Act, 1926 Legislation Codes :
c. The Payment of iii. Protective (A) c only (B) a, b and c
Gratuity Act, 197 legislation (C) b and d (D) b, c and d
d. Beedi Workers iv. Regulative 40. Which of the following statements about the
Welfare Fund legislation governance of trade unions in India are
Act, 1976 wrong ?
Codes : a. Trade unions are primarily member
driven.
a b c d
b. Trade unions are financially self-suffi-
(A) i iii iv ii
cient.
(B) ii i iii iv
c. Trade unions are allowed to collect po-
(C) iv ii i iii litical fund.
(D) iii iv ii i d. Trade unions have inter-union rivalry.
36. Who was the first president of the Indian Codes :
Federation of Labour established in 1941 ? (A) b, c (B) b, d
(A) M.N. Roy (C) a, b (D) c, d
(B) Jaman Das Mehta
41. Which of the following forms of industrial
(C) R.S. Ruikar conflict are not legally approved ?
(D) Dr. Rajendra Prasad
a. Strike b. Gherao (A) Horizontal clique

c. Lockout d. Go slow (B) Vertical clique
Codes : (C) In-group
(A) Only a (B) a and b (D) Out-group
(C) b and c (D) b and d 47. Which of the following is/are true about
42. Who has conceptualised industrial rela- employee empowerment ?
tions as a rule making process governing a. It involves increasing decision making
both the employers and employees ? discretion of workers.
(A) Neil J. Smelser b. It helps in decision making by employ-
(B) Arthur D. Butler ees who are often at lower levels.
(C) Neil W. Chamberlain c. It helps senior managers to cope with
(D) John T. Dunlop increased work demands.
43. Which of the following are the trends of in- Codes :
dustrial relations in the aftermath of the (A) a only (B) Both a and b
New Economic Policy ? (C) b only (D) a, b and c
a. Union militancy has decreased. 48. The change related phenomenon resisted by
b. Managerial activism has increased. the organisation in order to maintain an
c. Government intervention has reduced. equilibrium, is known as
d. Free collective bargaining has substi- (A) Conformity to Norms
tuted the third party intervention. (B) Homoeostasis
Codes : (C) Self-distrust
(A) a and b (B) b and d (D) Insecurity and regression
(C) a, b and c (D) a, b and d 49. The tendency of some people to work harder
44. Which of the following statements is/are or perform better when they know that they
true with regard to Joint wage Negotiation are being observed is
Committee ? (A) Hawthorne Effect
a. It is a bipartite committee. (B) Perceptual Bias
b. It is industry specific committee. (C) Attitude
c. It was constituted for the first time in (D) Halo Effect
steel industry. 50. The psycho-physical disposition of an in-
d. It is tripartite in nature. dividual is referred to as
Codes : (A) Attitude (B) Aptitude
(A) Only a (B) a and b (C) Personality (D) Perception
(C) a, b and c (D) b, c and d 51. In which of the following approaches, a
45. Which one of the following authorities is multinational company treats each subsid-
not covered under the ESI Act, 1948 ? iary as a distinct national entity with some
(A) Central Board decision making autonomy?
(B) Standing Committee (A) Ethnocentric approach
(C) Medical Council (B) Geocentric approach
(D) ESI Corporation (C) Polycentric approach
46. An informal group encompassing individu- (D) Regiocentric approach
als from different levels within a given area 52. Which of the following is not a critical area
or department, is known as of Six-Box model of organisational diagno-
sis ?
(A) Structure 57. Which of the following factors is not related
(B) Mechanisms directly to the success of expatriation ?
(C) Relationships a. The nature of product produced by the
(D) Learning company.
53. Which of the following is the correct se- b. The personality of expatriate employ-
quence of career development stages in ees.
Evan’s model of stages in career develop- c. The intensions of expatriate employees.
ment ? d. The incapability of the spouse of expa-
I. Establishment II. Mid Career triate employees to adjust to the new
III. Exploration IV. Late Career situation.
V. Decline Codes :
Codes : (A) a only (B) b only
(A) I II IV III V (C) c only (D) Both a and d
(B) III I II IV V 58. Match the following :
(C) I II III IV V List – I List – II
(D) II III IV I V V a. Cognitive bias in which i. Jargon
one trait of a person
54. Which of the following is the correct se-
influences overall
quence of the stages of emergence of TQM
judgement about him.
process beginning from 1910 ?
b. Meaningless talk or ii. Halo Effect
I. Creativity and Innovation
writing familiar only
II. Product Design Improvement to a group or a profession
III. Detection and Rectification of Defects c. Converting the iii. Encoding
IV. Prevention of Defects message into
Codes : symbols by sender
(A) III IV II I d. Manipulating iv. Filtering
(B) I II III IV information to
(C) IV III II I make it appear
(D) I IV III II favourable to receiver
55. The BARS constructed by Charles L. Hulin Codes :
and Milton R. Blood, for appraising the per- a b c d
formance of a clerk in a grocery store, had (A) ii i iv iii
how many anchors of job performance ? (B) ii iv iii i
(A) 6 (B) 8 (C) ii i iii iv
(C) 10 (D) 12 (D) ii iii i iv
56. Which of the following are the syndromes 59. Test Reliability is
of organisational maladjustment ? a. ability of the test to measure the vari-
a. Rigore Martis b. Young Turk able under study.
c. Anarchy d. Smoothing b. consistency of scores obtained by the
e. Rat race same person when retested with the
Codes : same test.
(A) a, b and c (B) a, c and e c. ability of the test to measure large num-
(C) b, d and e (D) a, d and e ber of variables.
Codes : 65. Which of the following stages form part of

(A) a only (B) b only General Adaptation Syndrome propounded
(C) c only (D) Both a and b by Hans Selye ?
60. Read the statement and choose the correct (i) Alarm Reaction
answer : (ii) Dissociative Identity Disorder
Statement : (iii) Stage of Exhaustion
I. Time wage system is suitable when (iv) Stage of Resistance
workers are new and learning the jobs. Codes :
II. Piece wage system is suitable where (A) (i), (ii) and (iii)
quality and workmanship are not very (B) (i), (ii) and (iv)
important. (C) (i), (iii) and (iv)
Codes : (D) (ii), (iii) and (iv)
(A) Both Statements I and II are correct. 66. The term ‘wages’, under the Contract
(B) Both statements I and II are incorrect. Labour (Regulation and Abolition) Act,
(C) Statement I is correct but statement II is 1970, has the same meaning assigned to it
incorrect. under which of the following legislations ?
(D) Statement II is correct but statement I is (A) Payment of Wages Act, 1936
incorrect. (B) Minimum Wages Act, 1948
61. Formulation of policies , programmes and (C) Industrial Disputes Act, 1947
procedures is the primary concern of (D) Industrial Employment (Standing
(A) Top management Orders) Act, 1946
(B) Middle management 67. Which of the following provinces took the
(C) Operating management lead to enact the Maternity Benefit Act prior
(D) Both operating and middle manage- to the Independence of India ?
ment (A) Bombay
62. In which industry first wage Board was con- (B) Mysore
stituted ? (C) Bengal
(A) Cotton textile (B) Sugar (D) Madras
(C) Jute (D) Cementü 68. Which of the following is the first to recom-
63. Living wage, fair wage and minimum wage mend tripartite consultation at the national
concepts were adopted by level in India ?
(A) Committee on fair wages (A) National Commission on Labour, 1969
(B) 15th Indian Labour Conference (B) Industrial Policy Resolution, 1948
(C) Wage Board (C) Labour Investigation Committee, 1944
(D) Standing Labour Committee (D) Royal Commission on Labour, 1931
64. Which of the following is not correct ? 69. Which of the following care conventions of
(A) Recruitment is first and selection is sec- the ILO has not been ratified by India ?
ond step. (A) Forced Labour Convention No. 29
(B) Selection is first and recruitment is sec- (B) Abolition of Forced Labour Convention
ond step. No. 105
(C) Recruitment is positive process. (C) Minimum Age Convention No. 138
(D) Selection is negative process. (D) Discrimination (Employment/Occupa-
tion) No. 111
70. What is the minimum amount of compensa- (B) One rupee per month
tion payable in case of permanent total dis- (C) One rupee per annum
ability resulting from injury, under the Em- (D) Ten rupees per annum
ployees Compensation Act, 1923 ? 73. What would be the maximum representa-
(A) Rs. 1,50,000 (B) Rs. 1,40,000 tion of the independent members in the Cen-
(C) Rs. 1,00,000 (D) Rs. 1,80,000 tral Advisory Board constituted under the
71. Match the schedules with their respective Minimum Wages Act, 1948 ?
area of coverage under the Employers Provi- (A) One-third
dent Fund and Misc. Provisions Act, 1952 : (B) One-half
Areas of Coverage Schedules (C) Two-third
a. Matters for which i. Schedule – IV (D) One-fourth
provisions may be 74. Questions relating to the application or
made in the implementation of certified standing orders
pension scheme
can be referred to which of the following
b. Matters for which ii. Schedule – II authorities under the Industrial Employ-
provisions may be ment (Standing Orders) Act, 1946 ?
made in a scheme (A) Industrial Tribunals constituted under
c. Industries covered iii. Schedule – III the Industrial Disputes Act, 1947.
under the provisions (B) Labour courts constituted under the In-
of the Act dustrial Disputes Act, 1947.
d. Matters to be covered iv. Schedule – I (C) Chief Labour Commissioner (Central)
under the Deposit (D) Labour Commissioners of the States
linked insurance
75. Industrial disputes relating to which of the
scheme
following are within the jurisdiction of the
Codes :
Industrial Tribunal ?
a b c d
a. Hours of work and rest interval.
(A) iii ii iv i b. Withdrawal of any customary conces-
(B) iv iii ii i sion or privilege.
(C) ii iv iii i c. Rules of discipline
(D) i ii iv iii d. Leave with wages and holidays
72. Under the provisions of the Trade Unions Codes :
Act, 1926 what is the minimum subscrip- (A) a and d
tion to be paid by the members of a trade
(B) b, c and d
union for rural workers ?
(C) a, b and c
(A) Five rupees per annum
(D) a, c and d
ANSWERS
1. (D) 2. (D) 3. (B) 4. (B) 5. (C) 6. (C) 7. (D) 8. (B) 9. (C) 10. (A)
11. (C) 12. (B) 13. (C) 14. (D) 15. (C) 16. (B) 17. (D) 18. (A) 19. (A) 20. (D)
21. (B) 22. (C) 23. (B) 24. (D) 25. (B) 26. (D) 27. (C) 28. (B) 29. (D) 30. (D)
31. (A) 32. (B) 33. (D) 34. (B) 35. (D) 36. (B) 37. (C) 38. (B) 39. (B) 40. (C)
41. (D) 42. (D) 43. (A) 44. (D) 45. (A) 46. (B) 47. (D) 48. (B) 49. (A) 50. (C)
51. (C) 52. (D) 53. (B) 54. (A) 55. (B) 56. (B) 57. (A) 58. (C) 59. (C) 60. (B)
61. (A) 62. (A) 63. (A) 64. (B) 65. (C) 66. (A) 67. (A) 68. (D) 69. (C) 70. (B)
71. (A) 72. (C) 73. (A) 74. (B) 75. (C)
June, 2015
PAPER-II
all the questions.
1. Match the List-1 with List - II. (3) to ensure the supply of right number
List-I List-II and right type of manpower at the right
(a) Henry L. Gnatt (i) Theory of bureau- time.
cracy (4) to ensure the increased productivity of
(b) Max Weber (ii) Father of modern/ manpower.
administrative man- 5. Which one of the following is an immediate
agement theory Product of Job analysis ?
(c) Alex F. (iii) Graphic methods (1) Job description (2) Job rotation
Osborm of describing plans (3) Job enrichment (4) Job enlargement
and harmonious co- 6. The Scalar Principle of organisation implies:
operation (1) all authority must vest in one single
(d) Henri Fayol (iv) Father of brain person
storming (2) manager should directly supervise only
Codes : a limited number of subordinates
(a) (b) (c) (d) (3) line of authority must be clearly defined
(1) (iv) (iii) (ii) (i) (4) a subordinate should have only one su-
(2) (iii) (i) (iv) (ii) perior
(3) (iv) (i) (iii) (ii) 7. Which of the following approaches to man-
(4) (i) (ii) (iv) (iii) agement is a reactive approach instead of
2. In which year the book entitled ‘Principles being proactive ?
of Scientific Management’ was Published ? (1) Systems approach
(1) 1901 (2) 1903 (3) Decision theory approach
(3) 1911 (4) 1912 (2) Quantitative approach
3. Which method of training utilises equip- (4) Contingency approach
ments that closely resemble the actual ones 8. Which of the following is/are not feature(s)
used on the job ? of Bureaucracy as advocated by Weber ?
(1) Role Playing (a) Administrative class is responsible for
(2) Vestibule Training maintaining coordinative activities in
(3) Sensitivity Training the organisation.
(4) Programmed Instruction (b) Division of labour is based on
4. The basic objective of Manpower Planning specialisation.
in organisation is : (c) Organisation structure is adhoc and
(1) to ensure the skilled manpower. represents unstable relations.
(2) to ensure the supply of manpower for (d) Decisions and activities are formally
future requirement. recorded.
(1) (a) and (b) only (2) (c) and (d) only 12. Which perspective on industrial relations
(3) (c) only (4) (d) only is based on the notion that the production
9. If the number of subordinates is ‘n’, the total system is privately owned and is motivated
number of relationships, according to by profit ?
Graicunas formula, would be : (1) Unitary Perspective
(2) Pluralist Perspective
æ n2 ö æ 2n ö
(1) n ç + n - 1 ÷ (2) n ç + n - 1÷ (3) Radical Perspective
è 2 ø è 2 ø (4) Trusteeship Perspective
æn ö æ 2 ö 13. Competition based on cheap labour results
(3) 2 ç + n - 1 ÷ (4) 2 ç n + n - 1 ÷
è 2 ø into :
è 2 ø
(a) Falling employment intensity and job-
10. Herzberg proposed two-factor theory. Ac- less growth
cording to him the distinction between the
(b) Contracting out and out-sourcing
Hygiene factors and motivators is :
(c) Informalization of work and deteriora-
(1) Hygiene factors lead to dissatisfaction
tion in conditions of employment
while motivators lead to satisfaction.
Codes :
(2) Hygiene factors prevent satisfaction
while motivators prevent dissatisfac- (1) (a) and (b) (2) (a) and (c)
tion. (3) (b) and (c) (4) (a), (b) and (c)
(3) Hygiene factors prevent dissatisfaction 14. Who drafted the Socialist Manifesto for con-
while motivators provide satisfaction. verting capitalist Britain into a mixed
(4) Hygiene factors provide satisfaction economy ?
while motivators enhance satisfaction. (1) Karl Marx (2) Friedrich Engels
11. Transactional managerial styles refer to four (3) Sydney and Beatrice Webb
life positions. These life positions can be (4) Robert Hoxie
used to understand one’s style of working 15. The big Indian trading houses and indus-
with others. Match Four Life Positions trial interests supporting the Swadeshi
(List - A) with Parent (Regulating/Nurtur- movement played a major role in setting up:
ing) Ego States (List - B). (1) Associated Chamber of Commerce
List - A List - B (2) Federation of Indian Chamber of Com-
Life Positions Parent Ego State merce and Industry
(a) I am not ok, (i) Prescriptive/ (3) All India Manufacturer’s Organisation
you are not ok Patronising (4) International Organization of Employ-
(b) I am ok, you (ii) Normative/ ers
are not ok Supportive 16. A strike that is suddenly called, generally
(c) I am ok, you (iii) Indifferent/ without notice is known as :
are ok Ingratiating (1) Sit-in Strike (2) Protest Strike
(d) I am not ok, (iv) Traditional/ (3) Tools-down Strike (4) Wild-cat Strike
you are ok Overindulgent
17. The Participation of Workers in Manage-
Codes :
ment Bill, 1990 has provision(s) relating to :
(a) (b) (c) (d)
(a) Constitution of a Shop-floor Council in
(1) (iv) (i) (ii) (iii) every establishment.
(2) (i) (iii) (ii) (iv) (b) Setting up of an Establishment Council
(3) (iii) (ii) (i) (iv) in every industrial undertaking at the
(4) (ii) (i) (iii) (iv) establishment level.
(c) Representation of workmen and other 22. Which of the following methods of forecast-
workers on the Board of Management ing assumes that group decision making is
of every corporate body owning an in- more valid than individual judgements ?
dustrial establishment. (1) Trend analysis
Codes : (2) Sales force composite method
(1) only (a) is correct. (3) Delphi technique
(2) only (a) and (b) are correct. (4) Opinion poll method
(3) only (b) and (c) are correct. 23. Which of the following represents the gen-
(4) (a), (b) and (c) are correct. eral statements that guide or channel think-
18. Who played an instrumental role in the for- ing in decision making ?
mulation of code of Discipline ? (1) Strategies (2) Policies
(1) V.V. Giri (2) G.L. Nanda (3) Procedures (4) Programmes
(3) Khandubhai Desai 24. Which of the following is/are organisation
(4) Ravindra Verma wide incentive plan(s) ?
19. Which of the following Conventions of the (a) Commission Plan
ILO relates to Freedom of Association ? (b) Employee Stock Option Plan
(1) Convention No. 87 (c) Gain sharing Plan
(2) Convention No. 100 Codes :
(3) Convention No. 29 (1) (a), (b) and (c) (2) (a) and (b)
(4) Convention No. 105 (3) (b) and (c) (4) (a) only
20. Match the following : 25. Match the following :
Type of Union Example List - A List - B
(a) Craft Union (i) Colliery Mazdoor Training Techniques Descriptions
Sangh (a) Ice Breakers (i) Isolation, selec-
(b) Industrial (ii) Indian Pilot’s tion and evalua-
Union Guild tion of a problem
(c) General Union (iii) The Jamshedpur (b) Monodrama (ii) Role play with
Labour Union pre-determined
Codes : objectives
(a) (b) (c) (c) Structured (iii) Games to get team
(1) (iii) (i) (ii) Role Playing members know
(2) (i) (ii) (iii) each other
(3) (ii) (i) (iii) (d) Attribute (iv) Insight into a
listening given interaction
(4) (i) (iii) (ii)
Codes :
21. Which one of the following had stated that
(a) (b) (c) (d)
“Secret ballot even on a restricted basis is
logistically and financially a difficult pro- (1) (i) (ii) (iii) (iv)
cess in industries like railways, banks, post (2) (iii) (iv) (ii) (i)
offices, coal mines and other undertakings (3) (iv) (iii) (ii) (i)
operating in a number of states” ? (4) (i) (iii) (ii) (iv)
(1) Royal Commission on Labour 26. The Primary and recency effects, perceptual
(2) First National Commission on Labour set, spill over effect and status effect refer to:
(3) Second National Commission on (1) Common Recruitment Errors
Labour (2) Common Selection Errors
(4) Labour Investigation Committee
(3) Common Rating Errors (1) Labour Court (2) Court of Inquiry
(4) Common Planning Errors (3) High Court (4) Civil Court
27. Which of the following statements is not the 33. Under the provisions of the Employee’s
correct distinction between role, and office/ State Insurance Act, 1948, an “exempted
position ? employee” means an employee :
(1) Role is based on mutuality, while office (1) Who is not liable to pay his own contri-
is based on power relations. butions.
(2) Office is non hierarchical, while Role is (2) For whom the employer need not pay
hierarchical in nature. any contribution.
(3) Role is an obligational concept, while (3) Who is not insured under the provisions
office is a relational concept. of the Act.
(4) Role is descriptive, while office is evalu- (4) Who is employed by or through an im-
ative. mediate employer, on the premises of
28. Horizontal Clique, Vertical Clique and Ran- the principal employer.
dom Clique are the examples of 34. Under the maternity Benefit Act, 1961, a
(1) Formal group (2) Informal group woman employee would get a medical bo-
(3) Out-group (4) In-group nus amounting to :
29. O.D. Cube (Sehmuck and Miles), Consulcube (1) ` 3,000 (2) ` 3,500
(Blake and Mouton), and Four Quadrants (3) ` 4,000 (4) ` 5,000
(French and Bell) are the examples of : 35. Before the enactment of the Workmen’s
(1) Phases of Organisation Developments (Employee’s) Compensation Act, 1923,
proposed by respective scientists. workers suffering a personal injury in
(2) Conditions for the success of O.D. course of employment claimed damages
(3) O.D. Interventions under :
(4) Operational goals of O.D. (1) Economic Law (2) Social Law
(3) Common Law (4) Industrial Law
30. Provision relating to ‘Subsistence Allow-
ance’ is covered under which of the follow- 36. As per the provisions of the Factories Act,
ing legislations ? 1948 ‘Week’ is a period of 7 (seven) days
(1) Minimum Wages Act, 1948 beginning at midnight of :
(2) Employee’s Compensation Act, 1923 (1) Sunday (2) Saturday
(3) Industrial Employment (Standing Or- (3) Monday (4) Friday
ders) Act, 1946 37. What is the minimum number of persons to
(4) Employee’s State Insurance Act, 1948 be appointed in the Advisory Committee
31. The maximum permissible limits of expo- under the provisions of the Equal Remu-
neration Act, 1976 ?
sure to chemical and toxic substance in a
factory involving hazardous process are (1) Five (2) Fifteen
provided in which Schedule of the Facto- (3) Ten (4) Twelve
ries Act, 1948 ? 38. Under the provisions of the Maternity Ben-
(1) The First Schedule efit Act, 1961, every woman employee after
(2) The Second Schedule delivery of a child who returns to duty is to
(3) The Third Schedule be provided with nursing breaks till the
child attains the age of :
(4) The Fourth Schedule
(1) Fifteen months (2) Twelve months
32. The term “Court” under the Industrial Dis-
putes Act, 1947 refers to which of the fol- (3) Eighteen months
lowing ? (4) Ten months
39. Under the provisions of the Payment of Bo- (b) Placating (ii) Welfare work is used
nus Act, 1965, the gross profits derived by theory as a means to secure,
an employer from an establishment in re- preserve and de-
spect of any accounting year in case of a velop the efficiency
banking company shall be calculated in the and productivity of
manner as specified under : labour.
(1) First Schedule (2) Second Schedule (c) Religious (iii) Labour groups are
(3) Third Schedule (4) Fourth Schedule theory becoming demand-
40. What is common to Robert Owen, Titus Salt, ing and militant, and
Bournville and Port Sunlight ? are conscious of
their rights and
(1) They were British Law Makers who ad-
privileges than even
vocated for labour welfare Legislations.
before. They need to
(2) They were British Trade Union Leaders be appeased.
who demanded for improved working
(d) Functional (iv) Without compul-
conditions for industrial labour.
theory sion, periodical su-
(3) They were British employers who pio- pervision and fear of
neered Labour Welfare. punishment, em-
(4) They were British political thinkers who ployers will not pro-
conceived labour welfare as an instru- vide even the mini-
ment of ameliorating the evil effects of mum welfare facili-
industrialization. ties to workers.
41. Which of the following statements on Codes :
Labour Welfare is/are not true ? (a) (b) (c) (d)
(a) Labour welfare work extended to (1) (iii) (iv) (i) (ii)
worker’s and their families does not (2) (iv) (i) (iii) (ii)
come under the areas of Corporate So-
(3) (iv) (iii) (i) (ii)
cial Responsibility (CSR).
(4) (ii) (iv) (i) (iii)
(b) Labour welfare measures cannot be a
substitute for wages. 43. Which of the following committees/commis-
(c) It is only employers who are responsible sions has observed that “Labour Welfare,
to extend labour welfare. by its very nature must necessarily be elas-
tic; bearing a some what different interpre-
(d) Self-help and empowerment are not
tation in one country from another, accord-
goals of labour welfare.
ing to the different social customs, the de-
Codes : gree of industrialisation, and the educa-
(1) Only (c) and (d) (2) Only (c) tional development of the worker.”
(3) Only (b) and (c) (4) Only (a) and (d) (1) Malaviya Committee Report on Labour
42. Match the following themes with the rel- Welfare
evant theories of Labour Welfare : (2) The Royal Commission on Labour
Theories of Labour Themes (3) The Labour Investigation Committee
Welfare (4) The First National Commission on
(a) Police theory (i) Any good work is Labour
considered ‘an in- 44. Assertion : Labour welfare positively deals
vestment’ : both the with the provision of opportunities which
benefactor and the enable to worker and his family to lead a
beneficiary are re- good life, socially and personally, as well
warded. as help him adjust to social transition in his
work life, family and social life. 47. Which of the following statements about the
Reason : The transition and the resultant Labour Market is/are true ?
undesirable social consequences are caused (a) Like a commodity market, the relation-
by large scale industrialisation ship between a buyer and a seller in a
Codes : labour market is temporary.
(1) Both Assertion and Reason are wrong. (b) There is a diversity of wage rates in a
(2) Assertion is right but Reason does not labour market even for similar nature
explain the Assertion. of work.
(3) Both Assertion and Reason are right (c) Monopoly in the labour market is ex-
and Reason explains the Assertion. tremely rare.
(4) Assertion is wrong but Reason is right. (d) Monospony referring to the buyer’s con-
trol is more in the labour market.
45. “As increasing quantities of a variable fac-
tor are applied to a fixed factor of produc- Codes :
tion, the resulting additions to output will (1) (b), (c), (d) (2) (a),(b), (d)
eventually decrease.” This contention ex- (3) (a), (c), (d) (4) (a), (b), (c)
plains which of the following laws ? 48. In which approach, it is considered that
(1) Law of Diminishing Returns Labour is an inevitable nuisance constantly
(2) Law of Diminishing Marginal Produc- asking for more ?
tivity (1) Philanthropic Approach
(3) Law of Diminishing Marginal Utility (2) Citizenship Approach
(4) Law of Diminishing Labour Prices (3) Hard-boiled businessman’s approach
46. Match the following : (4) Commodity approach
Propagators Theory of Wages 49. Who is the author of the book “Full Employ-
(a) David Ricardo (i) Residual Claim- ment in Free Society” ?
ant Theory (1) A.C. Pigon
(b) Francis (ii) Marginal Produc- (2) Alfred Marshall
W. Walker tivity Theory (3) J.M. Keynes
(c) Karl Marx (iii) Subsistence (4) William H. Beveridge
Theory 50. In the first stage of the model grievance pro-
(d) J.B. Clark (iv) Surplus Value cedure an aggrieved employee may present
Theory his grievance :
Codes : (1) by engaging a legal counsel
(a) (b) (c) (d) (2) through trade union
(1) (iii) (iv) (ii) (i) (3) through arbitrator
(2) (iii) (i) (iv) (ii) (4) verbally in person
(3) (iii) (ii) (i) (iv)
(4) (iv) (iii) (i) (ii)
ANSWERS
1. (2) 2. (3) 3. (2) 4. (3) 5. (1) 6. (3) 7. (4) 8. (3) 9. (2) 10. (1)
11. (1) 12. (3) 13. (4) 14. (3) 15. (2) 16. (4) 17. (4) 18. (2) 19. (1) 20. (3)
21. (3) 22. (3) 23. (2) 24. (3) 25. (2) 26. (3) 27. (2) 28. (2) 29. (3) 30. (3)
31. (2) 32. (2) 33. (1) 34. (2) 35. (3) 36. (2) 37. (3) 38. (1) 39. (1) 40. (*)
41. (4) 42. (3) 43. (2) 44. (3) 45. (2) 46. (2) 47. (1) 48. (3) 49. (4) 50. (4)
June, 2015
PAPER-III
1. Which of the following statements are cor- 5. Match the following participative manage-
rect ? ment bodies with the years in which they
(a) Coordination means synchronisation of came into being :
efforts with respect to time and direc- List - I List - II
tion. (a) Works Committee (i) 1983
(b) The basic principles of coordination (b) Joint Management Councils (ii) 1958
are direct contact and continuity of ef- (c) Board Level Participation (iii) 1947
forts. (d) Scheme of Employees’ (iv) 1970
(c) In a given situation, cooperation may participation in Public
exist without coordination. Sector Undertakings
Codes : Codes :
(1) only (a) (2) (b) only (a) (b) (c) (d)
(3) (a) and (b) (4) (a), (b) and (c) (1) (iii) (ii) (i) (iv)
2. Which of the following can be labelled as (2) (iii) (ii) (iv) (i)
‘Suicide pacts’ aimed at bearing short-term (3) (iii) (iv) (ii) (i)
pains for anticipated long-term gains ? (4) (ii) (iv) (iii) (i)
(1) Productivity Bargaining Agreements
6. Relating to lay-off, which of the following
(2) Automation Without Tears Agreements statements is not correct as per the Indus-
(3) Enterprise Level Wage Agreements trial Disputes Act, 1947 ?
(4) Concession Bargaining Agreements (1) There is provision for payment of com-
3. After receipt of an application for establish- pensation for the laid off eligible work-
ment of a factory as required under the Fac- men
tories Act, 1948, in how many days the Site (2) Compensation for laid-off employees
Appraisal Committee is required to submit shall be limited to only forty five days
its report to the State Government ? in a period of twelve months
(1) Thirty days (3) There is no provision for providing al-
(2) Sixty days ternative employment to the laid-off
(3) Ninety days workmen
(4) One hundred and twenty days (4) A workmen has to present himself for
4. The early formed attitudes consisting of val- work-at the establishment at the ap-
ues, needs and talents of a person which pointed time at least once in a day
make a person hold to a particular type of 7. ‘Ergograph’ used by Angelo Mosso was
career are called : meant for measuring :
(1) Career anchors (2) Career drives (1) Boredom (2) Monotony
(3) Career needs (4) Career aspirations (3) Fatigue (4) Morale
8. Under which amendment Act of the Indian enacted due to the consensus reached
Constitution, the Worker’s participation in on these issues in the ILC.
Management was incorporated into the Di- (c) The ILC defined the basis for calcula-
rective Principles of State Policy ? tion of Need-based Minimum Wage.
(1) 39th Amendment Act Codes :
(2) 40th Amendment Act (1) Only (a) is true
(3) 41st Amendment Act (2) Only (b) is true
(4) 42nd Amendment Act (3) Only (c) is true
9. In connection with an industry and its ap- (4) (a), (b) and (c) are true
propriate government, which of the follow- 12. What is the time period within which the
ing pairs is correct under the Industrial Dis- Grievance Redressal Committee Consti-
putes Act, 1947 ? tuted under the Industrial Disputes Act,
Name of the Industry Appropriate 1947, has to complete its proceedings on
Government receipt of a written application by or on be-
(1) Rourkela Steel – Government of half of the aggrieved workmen ?
Plant Odisha (1) Fifteen days (2) Twenty-one days
(2) Durgapur Steel – Government of (3) Thirty days (4) Forty-five days
Plant West Bengal 13. Assertion (A) : Globalization has opened
(3) Salem Steel – Government of up opportunities like open markets, free
Plant Tamil Nadu flow of goods, services and people as well
(4) Tata Steel – Government of as has posed threats like jobless economic
Jharkhand growth, and cultural erosion and environ-
10. ‘X’ organisation has a Personnel/HR De- mental degradation.
partment, whose head reports to the Gen- Reason (R): There has been an uneven com-
eral Administrative Manager, under whom petition between the developed and devel-
there are other departments like public rela- oping countries resulting in issues like
tions, security, estate etc. Under the head of dumping; privatisation of primary services
Personnel/HR Department, there is one like health and education thereby remain-
Personnel Manager looking after Personnel ing beyond the reach of millions of poor and
functions and an Industrial Relations Man- unemployed.
ager to deal with unions. Such a Person- Codes :
nel/HR Department is called : (1) Both (A) and (R) are not correct
(1) Independent Split-function Department (2) (A) is correct but (R) is not correct
(2) Independent Integrated Department (3) (A) is not correct but (R) is correct
(3) Staff-Coordinated Integrated Depart- (4) (A) is correct, (R) is also correct but does
ment not fully explain the (A)
(4) Staff-Coordinated Split-function De- 14. Which of the following statements is not true
partment regarding the certification of the standing
11. Which of the following statement(s) about orders under the Industrial Employment
the Indian Labour Conference is/are true ? (standing orders) Act, 1946 ?
(a) The code of Discipline was introduced (1) Within Six months from the date of ap-
by the ILC. plication of the Act, the employer shall
(b) The Minimum Wages Act, the submit five copies of the draft standing
Employee’s State Insurance Act, and the orders to the certifying officer
Employees’ Provident Fund Act were
(2) There is a schedule which sets out the information by
matters to be incorporated in the stand- professional and
ing orders scientific groups
(3) It is not mandatory to refer the draft Codes :
standing orders to the Unions/work- (a) (b) (c) (d)
men by the certifying officer (1) (iii) (i) (ii) (iv)
(4) Any employer, workmen, trade union (2) (i) (iv) (iii) (ii)
aggrieved by the order of certification (3) (iv) (ii) (iii) (i)
issued by the certifying officer can make
(4) (ii) (iii) (i) (iv)
an appeal to the Appellate Authority
within thirty days from the date on 17. What is not true about industrial relations
which copies of certification are being policy in India ?
sent (1) Industrial relations in India is highly
regulated by State Intervention.
15. Under the provisions of the Industrial Dis-
putes Act, 1947, what is the time period (2) Industrial Relations policy in India tried
within which if no communication is re- to shift from courts to codes.
ceived by an employer in response to his (3) Tripartism has been a discernible policy
application to the appropriate Government shift in Industrial Relations.
for closing down the undertaking, then it (4) Free and compulsory collective bargain-
will be deemed that permission has been ing has been encouraged by the relevant
granted ? legislations in India.
(1) Thirty days (2) Forty-five days 18. If any money is due to a workman from an
(3) Sixty days (4) Ninety days employer under a settlement or award, then
16. Match the following : for recovery of the same the concerned work-
man or any authorised person on his behalf
List - I List - II
may apply to which of the following au-
(a) Outsourcing (i) Specialists are in-
thorities under the Industrial Disputes Act,
vited at client loca-
1947 ?
tion to perform
(1) The Industrial Tribunal
specific tasks for
which there is no (3) The Appropriate Government
internal resource (2) The Labour Court
(b) Insourcing (ii) Disciplined provi- (4) The Collector and District Magistrate
sioning and 19. Assertion (A) : Culture refers to a set of val-
blending of busi- ues, rules, and standards among genera-
ness and IT ser- tions and are aimed at modelling
vices from both in- behaviours so that they fall within accept-
ternal and exter- able limits.
nal providers Reason (R) : Cultural norms play important
(c) Multi sourcing (iii) Regular use of ex- role in determining values because indi-
ternal agency for viduals anchor their conduct in the culture
non-core func- of the group to which they belong.
tions Codes :
(d) Open sourcing (iv) Act of releasing (1) Both (A) and (R) are not correct
free software li- (2) Both (A) and (R) are correct, (R) does
cense containing not explain (A)
knowledge and
(3) Both (A) and (R) are correct, (R) explains (2) Regulated Protective
(A) (3) Constrained Competitive
(4) (A) is wrong and (R) is correct (4) Protective Competitive
20. Match the following : 24. The provisions of the Building and other
List -I List - II construction workers (Regulation of Em-
(a) Karl Marx (i) Founder of Ameri- ployment and Conditions of Services) Act,
can Federation of 1996 shall become applicable to an estab-
Labour lishment which employs or has employed
(b) Sydney and (ii) Antagonist of on any day of the preceeding twelve months
Beatrice Webbs trade unionism a minimum of :
(c) Samuel (iii) Radical trade (1) Ten construction workers
Gompers unionism (2) Twenty construction workers
(d) Walter (iv) Industrial (3) Thirty construction workers
Gordon Merrit Democracy (4) Fifty construction workers
Codes : 25. Assertion : Wage differentials can be attrib-
(a) (b) (c) (d) uted to the imperfections of the employment
(1) (iii) (ii) (i) (iv) markets.
(2) (iii) (iv) (i) (ii) Reason : Inter-industry wage differentials
(3) (iii) (ii) (iv) (i) have been narrowing in developed coun-
(4) (ii) (iv) (iii) (i) tries than that in developing countries.
Codes :
21. With the approval of which of the following
authorities, an apprentice undergoing train- (1) Both Assertion and Reason are wrong
ing in a factory may be allowed to work over- (2) Assertion is right and Reason is wrong
time under the Apprenticeship Act, 1961 ? and so does not explain the Assertion
(1) Apprenticeship Advisor (3) Assertion is wrong and Reason is right
(2) Labour Commissioner and so does not explain the Assertion
(3) Chief Inspector of Factories (4) Both Assertion and Reason are right,
but Reason does not explain the Asser-
(4) Apprenticeship Inspector
tion
22. Which of the following strategic initiatives
26. Which of the following trends is not true
will help employee retention effort of an
about the Industrial Relations scenario in
organisation ?
India ?
(a) The perception of equity in rewards
(1) Reduced Government regulation
(b) Work-life balance initiatives
(2) Declining trade union density
(c) Exit Interviews
(3) Increasing Employer militancy
(d) Non-poaching agreements
(4) Demand for labour reforms
Codes :
27. The appropriate government, under the pro-
(1) (a) and (b) only
visions of the Contract Labour (Regulation
(2) (a), (b) and (c) only and Abolition) Act 1970 may make rules re-
(3) (a), (b) and (d) only lating to canteens in which of the following
(4) (b), (c) and (d) only areas ?
23. Government’s policy relating to employment (a) The date by which the canteens shall be
relations is mostly : provided
(1) Deregulated Competitive (b) The number of canteens that shall be
provided
(c) The foodstuffs which may be served 31. In the ‘Kirkpatrick’ model, which level of
(d) The charges for the foodstuffs to be training evaluation helps in knowing that
served trainees have applied their gained learning
(e) The number of persons to be employed to the Job ?
in the canteen (1) Learning
(1) (a), (b), (c) and (e) only (2) Re-action
(2) (a), (c), (d) and (e) only (3) Job behaviour
(3) (a), (b), (c) and (d) only (4) Ultimate value/results
(4) (a), (b) and (c) only 32. Which of the following statements is not true
28. Human Capital refers to : about the origin of trade unions ?
(1) total salaries of the employees in an (1) Laissez faire policy was not conducive
organisation. for trade union emergence
(2) collective expenses incurred by employ- (2) Legal pronouncements did not favour
ees in an organisation. the emergence of trade unions in initial
(3) capital consumed in recruiting man- stages
power in an organisation. (3) Lack of bargaining power among the in-
(4) collective skills and knowledge of the dividual workers was responsible for
total workforce of an organisation. the emergence of trade unions
(4) Governments and Employers were sup-
29. The four patterns of unionism such as Busi-
portive of the trade union emergence
ness unionism, Friendly or uplift unionism,
Revolutionary unionism and predatory 33. Which of the following formulae is taken
unionism are given by : for calculating the gratuity for an employ-
(1) Alan Fox ees under the Payment of Gratuity Act,
1972?
(2) Robert Hoxie
(1) Monthly rate of wages last drawn × 15
(3) Allan Flanders
× number of years worked + 26
(4) Michael Poole
30. Under the provisions of the Inter-State Mi- × number of years worked + 15
grant workmen (Regulation of Employment (3) Monthly rate of wages last drawn × 30
and Conditions of Service) Act, 1979, every × number of years worked + 26
Inter-State migrant workman is to be paid
displacement allowance at the time of re-
× number of years worked + 15
cruitment by the contractor an amount of :
(1) Seventy-five percent of the monthly 34. When an International Company followed
wages payable to him or one hundred a strategy of choosing employees only from
rupees, whichever is higher the nationals of the parent country, it is
called :
(2) Fifty percent of the monthly wages pay-
able to him or Seventy-five rupees, (1) Geocentric approach
whichever is higher (2) Ethnocentric approach
(3) Fifty percent of the monthly wages pay- (3) Polycentric approach
able to him or one hundred rupees, (4) (1) and (2) both
whichever is lower 35. Who viewed trade unions as ‘moral institu-
(4) Seventy-five percent of the monthly tions’ aiming at making the workers better
wages payable to him or two hundred individuals and responsible citizens ?
and fifty rupees, whichever is lower (1) Pt. Madan Mohan Malaviya
(2) Gopal Krishna Gokhale Codes :

(3) Bal Gangadhar Tilak (1) (a) only (2) (b) only
(4) Mohandas Karamchand Gandhi (3) both (a) and (b) (4) (a), (b) and (c)
36. The period of limitation for an appeal to the 41. When certain common needs of workers,
High Court against the decision of the such as provision of consumer items, credit/
Employee’s Insurance Court under the pro- loan facilities are provided by the trade
visions of the Employee’s State Insurance unions to their members through co-opera-
Act, 1948 is : tives, the method is called :
(1) Thirty days (2) Sixty days (1) Method of Direct action
(3) Forty-five days (4) Ninety days (2) Method of Legal enactment
37. Which of the following is not a cultural di- (3) Method of Mutual Insurance
mension of Hofstede’s model ? (4) Method of Collective bargaining
(1) Power distance 42. As a part of the employment contract, any
(2) Uncertainty avoidance employee accepting employment has to ac-
(3) Time orientation cept the dangers associated with the job in-
(4) Individualism - collectivism cluding possible injuries. This plea was
taken by the Employers to avoid payment of
38. Which of the following declared that, “there
compensation under which of the follow-
shall be unreserved acceptance of, and re-
ing doctrines ?
spect for, democratic functioning of trade
unions, and there shall be regular and demo- (1) Doctrine of Contributory negligence
cratic elections of executive bodies and of- (2) Doctrine of Assumed Risk
fice - bearers of the trade unions” ? (3) Doctrine of Common Employment and
(1) The Code of Conduct fallow servant’s responsibility
(2) The First National Commission on (4) Doctrine of Unknown person’s respon-
Labour sibility
(3) The Second National Commission on 43. The ongoing process of identifying, assess-
Labour ing and developing organisational leader-
(4) The Code of Discipline ship to enhance performance is called :
39. The report of which of the following com- (1) Strategic planning
mittees in India was instrumental in the (2) Succession planning
enactment of the Employee’s State Insur- (3) Organisational planning
ance Act, 1948 ? (4) Career planning
(1) Shiv Rao Committee 44. Assertion (A) : The focus in industrial rela-
(2) B.P. Adarkar Committee tions is shifting from collective to individual
(3) Bhave Committee rights, from union to worker participation,
(4) Rege Committee and from union to employee communica-
tion.
40. Which of the following statement(s) is/are
true about Hardship allowances ? Reasons (R) : The new generation of work-
ers (knowledge workers) expect an empow-
(a) They compensate expatriates for excep-
ered relationship with the employer rather
tionally hard living and working con-
than protected relationship.
ditions at certain locations
Codes :
(b) They compensate employees for meet-
ing difficult targets (1) (A) is wrong, so (R) does not explain
the (A).
(c) They compensate employees for work-
ing under hazardous conditions (2) (A) is right, but (R) is wrong.
(3) Both (A) and (R) are right, and (R) ex- (f) decline
plains the (A). (1) (a), (b), (d), (c), (f), (e)
(4) (A) is wrong, but (R) is right. (2) (a), (b), (c), (d), (e), (f)
45. What is the minimum number of days a (3) (a), (c), (b), (e), (d), (f)
woman employee must have actually (4) (f), (e), (d), (c), (b), (a)
worked under an employer in the twelve 50. Wage Negotiating Committees in India de-
months immediately preceding the date of termine wages at :
expected delivery for becoming eligible for
(1) Plant Level (2) Industry Level
maternity benefit under the Maternity Ben-
(3) Sector Level (4) Regional Level
efit Act, 1961 ?
(1) Eighty days (2) Ninety days 51. Under which part of the Indian Constitu-
(3) One hundred and twenty days tion, the basic foundation of Labour Legis-
lations is found ?
(4) One hundred and fifty days
(a) The Preamble
46. Which of the following approaches aims at
(b) The Fundamental Rights
payments so as to maintain home-country
(c) The Directive Principles of State Policy
living standard plus some financial
incentive ? (1) Only (c) (2) Only (a)
(1) Balance Sheet Approach (3) Both (a) and (c) (4) (a), (b) and (c)
(2) Going Rate Approach 52. ‘Glass Ceiling’ is a phenomenon related to :
(3) Host-Based Approach (1) Solar energy Conservation system
(4) Global Market Approach (2) Office Autonomy system through trans-
parency
47. ‘Social Dialogue’ includes “all types of ne-
gotiations and consultations or simple ex- (3) Gender Bias in Career progression
changes of information between/among (4) Corporate Governance System
representatives of the government, employ- 53. Who among the following explained the
ers, and workers on issues of common interpre-reguisite conditions of viable collective
est relating to economic and social policies”. bargaining such as ?
This meaning of social dialogue was ad- (a) The parties must attain a sufficient de-
vanced by : gree of organisation;
(1) Indian Labour Conference (b) The parties must be ready to enter into
(2) United Nations Organisation agreements with each other;
(3) Standing Labour Committee (c) The agreements must generally be ob-
(4) International Labour Organisation served and implemented by those to
48. What is the Current maximum ceiling of whom they apply ?
wages for calculation of bonus under the (1) Allan Flanders
Payment of Bonus Act, 1965 ? (2) Neil W. Chamberlain
(1) ` 5,000 (2) ` 7,500 (3) Robert Hoxie (4) Alan Fox
(3) ` 10,000 (4) ` 12,000 54. What is the time period within which any
49. Arrange the following phases of Quality fine imposed on any employee shall be re-
Circles in the correct sequence : covered from the day on which it was im-
(a) start up posed ?
(b) approval of initial suggestions (1) One hundred fifty days
(c) initial problem solving (2) Ninety days
(d) expansion of problem solving (3) One hundred days
(e) implementation (4) One hundred twenty days
55. The use of PCN for control to ensure com- rily providing the
pliance in the subsidiary to enable achieve- remuneration due
ment of local operations shows : to an employed
(1) Ethnocentric predisposition person
(2) Geocentric predisposition (c) Equal (iii) to allow employ
(3) Polycentric predisposition Remuneration ees to legally
(4) Regiocentric predisposition Act, 1976 share in the profit
of the establish-
56. The amount of gratuity payable to an em-
ment on the basis
ployee retiring from services after complet-
of production and
ing eighteen years of continuous service
productivity
drawing his last wages of ` 39,000 per
(d) Payment of (iv) to prevent dis-
month, will be :
Bonus Act, 1965 crimination in the
(1) ` 4,05,000 (2) ` 3,51,000
matter of employ-
(3) ` 10,00,000 (4) ` 7,50,000 ment and remu-
57. Which segment of wages is determined by neration
the ‘escalatory clause’ in collective bargain- Codes :
ing ? (a) (b) (c) (d)
(1) Basic Wages (2) Incentives (1) (iv) (iii) (ii) (i)
(3) Dearness Allowance (2) (ii) (i) (iv) (iii)
(4) Bonus (3) (i) (ii) (iii) (iv)
58. Read the statements and choose the correct (4) (iii) (iv) (i) (ii)
answer :
60. Which of the following statements relating
Statement : to the Central Board of Worker’s Education
(a) Sigmund Freud proposed the concept is not true ?
of the structure of psyche in terms of Id, (1) It was established in 1958.
Ego, and Superego. (2) Its headquarters is located at Nagpur.
(b) The ‘Id’ does not care about reality, (3) It is a tripartite body.
about the needs of anyone else, only its
(4) It is not registered under any Act.
own satisfaction.
Codes : 61. In which year the General Assembly of the
UNO adopted the “International Conven-
(1) Both the statements are True
tion on the Rights of Child” ?
(2) Both the statements are False
(1) 1995 (2) 1987
(3) Statement (a) is True and (b) is False
(3) 1999 (4) 1989
(4) Statement (b) is True and (a) is False
59. Match the following legislations with their
List -A List - B
respective objectives :
Components of Description
List of Legislations Objectives Emotional
(a) Minimum (i) to ensure that Intelligence
Wages Act, 1948 wages payable are (a) Achievement (i) Urge to control
disbursed within motive and impact
prescribed time
(b) Extension (ii) Management of
limit
motive others emotions
(b) Payment of (ii) to extend social (c) Social (iii) Urge to excel and
Wages Act, 1936 justice by statuto- Competence compete
(d) Power motive (iv) Urge to help and as part of collective bargaining agreements,
care such bargaining is called :
Codes : (1) Enterprise Bargaining
(a) (b) (c) (d) (2) Composite Bargaining
(1) (i) (ii) (iv) (iii) (3) Concession Bargaining
(2) (ii) (i) (iii) (iv) (4) Non-wage Bargaining
(3) (i) (ii) (iii) (iv) 67. Which of the following features relating to
(4) (iii) (iv) (ii) (i) delegation of a Member State to the Interna-
63. In general, what would be the maximum tional Labour Conference is not true ?
number of outsiders as office bearers of a (1) Four delegates are nominated by each
registered trade union functioning in the Member State
organised sector ? (2) Non-government delegates are nomi-
(1) Seven (2) Ten nated in agreement with the most rep-
(3) Five (4) Eight resentative organisations of employers
and work-people as the case may be
64. Which of the following statements about the
definition of ‘trade union’ as given under (3) Each delegate may be accompanied by
the Trade Unions Act, 1926 is not true ? only one adviser for each item on the
agenda of the meeting
(1) It is any combination whether perma-
nent or temporary (4) A delegate may authorise an adviser to
act as his deputy and in this case, the
(2) It regulates relations between employ-
adviser is allowed to speak and vote
ers and employers
(3) It regulates relations between workmen 68. OD is based on certain values that are im-
and employers portant for the development of organisations
as open and proactive systems. OD fosters
(4) It does not regulate relations between
a set of specific values “OCTAPACE”.
workmen and workmen
“OCTAPACE” refers to :
65. Organisational change is a complex phe-
(a) Openness (b) Communication
nomenon. In the process organisations have
to deal with resistance from different stake (c) Trust (d) Authority
holders. Consider the following : (e) Experimentation (f) Evaluation
(a) Perception of imposition (g) Autonomy (h) Productivity
(b) Role redefinition and re-orientation (i) Proactivity (j) Collaboration
(c) Participation in Diagnosis (k) Commitment (l) Confrontation
(d) Vested interests (m) Authenticity
Codes : Codes :
(1) (a) and (b) are sources of resistance and (1) (a), (b), (c), (d), (i), (m), (k), (f)
(c) and (d) are coping mechanisms (2) (a), (l), (c), (m), (i), (d), (k), (f)
(2) (b) and (c) are sources of resistance and (3) (a), (l), (c), (m), (i), (g), (j), (e)
(a) and (d) are coping mechanisms (4) (a), (b), (c), (d), (h), (g), (k), (f)
(3) (a) and (b) are coping mechanisms and 69. Assertion (A) : The trade unions in India
(c) and (d) are sources of resistance are trying to strengthen themselves by
(4) (b) and (c) are coping mechanisms and mobilising membership among the
(a) and (d) are sources of resistance unorganised workers
66. When unions come forward for wage cuts, Reason (R) : The trade unions in the post-
restriction on overtime, temporary job losses economic reforms period could not oppose
down-sizing and outsourcing resulting con-
version of many areas of formal employment 73. Which of the following statements is true
into informal employment relating to the purpose of Constituting the
Codes : Site Appraisal Committee under the Facto-
(1) Both (A) and (R) are right but (R) does ries Act, 1948 ?
not explain the (A) (1) Consider applications for grant of per-
(2) (A) is right and (R) is wrong mission for initial location of a factory
(3) Both (A) and (R) are wrong involving Heavy Machinery in a mov-
(4) Both (A) and (R) are right, and (R) ex- ing state.
plains the (A) (2) Consider applications for grant of per-
70. Under the provisions of the Factories Act, mission for initial location of a factory
1948, a safety committee is to be constituted involving hazardous process.
in a factory where : (3) Consider applications for grant of per-
(1) More than one thousand workers are mission for the initial location of a fac-
employed tory in an urban area.
(2) Heavy machineries are utilised (4) Consider applications for grant of per-
(3) Hazardous substances are used mission for initial location of a factory
involving complex technology process.
(4) Complex technology is used
71. Which of the following types of conflicts is 74. Which of the following is not a characteris-
not individual level conflict ? tic of Labour ?
(1) Approach - Approach conflict (1) Labour is a factor of production
(2) Role conflict (2) Labour is a perishable commodity
(3) Approach - Avoidance conflict (3) Labour can be separated from Labourers
(4) Vertical conflict as ‘person’
(4) Labour sells his services, not himself
72. The ‘Protected Workman’ clause is con-
cerned with : 75. Which of the following is/are the examples
(1) Safety provisions under the Factories of ‘Cognitive Biases’ ?
Act, 1948 (a) Cognitive Dissonance
(2) Compensation provisions under the (b) Escalation of Commitment
Employee’s Compensation Act, 1923 (c) Ego-defence
(3) Sickness benefit under the Employee’s (d) Projection
State Insurance Act, 1948 (1) (b) and (c) only (2) (a) and (d) only
(4) Protection to union office bearers from (3) (a), (b), and (c) only
employer’s punitive action under the (4) (a), (b), (c) and (d)
Industrial Disputes Act, 1947
ANSWERS
1. (4) 2. (4) 3. (3) 4. (1) 5. (2) 6. (4) 7. (3) 8. (4) 9. (*) 10. (4)
11. (4) 12. (3) 13. (4) 14. (3) 15. (3) 16. (1) 17. (4) 18. (3) 19. (3) 20. (2)
21. (1) 22. (4) 23. (2) 24. (1) 25. (4) 26. (1) 27. (3) 28. (4) 29. (2) 30. (2)
31. (4) 32. (4) 33. (1) 34. (2) 35. (4) 36. (2) 37. (3) 38. (1) 39. (2) 40. (1)
41. (4) 42. (2) 43. (2) 44. (3) 45. (1) 46. (1) 47. (4) 48. (3) 49. (3) 50. (2)
51. (4) 52. (3) 53. (1) 54. (2) 55. (1) 56. (1) 57. (3) 58. (1) 59. (2) 60. (4)
61. (4) 62. (4) 63. (3) 64. (4) 65. (4) 66. (4) 67. (3) 68. (3) 69. (4) 70. (3)
71. (4) 72. (4) 73. (2) 74. (3) 75. (4)
December, 2015
PAPER-II
all the questions.
1. Match the following : (d) Principle of dynamism

Statement Approach (e) Principle of continuity
(a) Organisation has (i) Decision theory (f) Principle of co-ordination at early
interconnected approach stages
and interrelated Code :
elements. (1) (a), (c), (e) and (f)
(b) Organisations (ii) Systems (2) (a), (b), (c) and (d)
work through approach (3) (a), (c), (d) and (e)
motivation, (4) (a), (d), (e) and (f)
leadership,
communication 3. Which of the following methods of forecast-
and participative ing is based on the principle that decisions
management. from a structured group of individuals are
more accurate than those from unstructured
(c) Management is (iii) Human
groups ?
essentially Behaviour
(1) Opinion Poll
decision making. approach
(2) Delphi Technique
(d) Appropriate (iv) Contingency
managerial approach (3) Extrapolation
action depends (4) Input - Output analysis
on external 4. Which of the following is not an element of
environment, planning ?
internal states (1) Establishing leadership qualities
and needs. (2) Finalising objectives
Code : (3) Evaluating alternatives
(a) (b) (c) (d) (4) Establishing sequence of action
(1) (ii) (iii) (iv) (i) 5. Which of the following is/are not the
(2) (ii) (iii) (i) (iv) method(s) of financial control ?
(3) (i) (ii) (iii) (iv) (a) Break - even analysis
(4) (ii) (iv) (i) (iii) (b) ABC analysis
2. Which of the following are the principles of (c) Internal audit
co-ordination according to Mary Parker (d) Quality circles
Follett ? Code :
(a) Principle of direct contact (1) (d) only (2) Both (b) and (d)
(b) Principle of reciprocal relationship (3) (a), (b) and (c) (4) (a), (b) and (d)
(c) Principle of timing
6. Which of the following statements is/are centre and the various roles at varying
correct ? distances from the self.
(a) Job enrichment does not need a motive (3) As the concept of the role is central to
to perform. the organisation, so the concept of the
(b) Job enlargement is the expansion of self is central to the several roles of a
number of different tasks performed by person.
an employee in a single job. (4) The Role Set is a pattern of inter - rela-
(c) Moving employee from one job to other tionship through the distance between
adds variety and reduces boredom. a role and the self which indicates the
(d) Participation cannot affect the enrich- extent to which the role is integrated
ment process. with the self.
Code : 10. Match the approach dimensions of six mo-
(1) Both (a) and (c) tives :
(2) Both (b) and (c) List - A List - B
(3) Only (c) Motives Approach
Dimensions
(4) All (a), (b), (c) and (d)
(a) Achievement (i) Growth
7. Five phases constitute the strategic HRM
(b) Affiliation (ii) Relevance
process, they are :
(c) Extension (iii) Inclusion
(a) Identify Sources of Competitive Advan-
tage (d) Influence (iv) Success
(b) Implementing HR Strategies (e) Control (v) Impacting
(c) Environmental Scanning (f) Dependency (vi) Order
(d) Monitoring and Evaluating HR Strate- Code :
gies (a) (b) (c) (d) (e) (f)
(e) HR strategy formulation (1) (i) (ii) (iv) (v) (vi) (iii)
Identify the correct sequence : (2) (iii) (ii) (iv) (vi) (v) (i)
(1) (c), (a), (d), (b), (e) (3) (iv) (iii) (ii) (v) (vi) (i)
(2) (a), (c), (d), (b), (e) (4) (i) (vi) (v) (ii) (iii) (iv)
(3) (c), (a), (e), (b), (d) 11. Which of the following describes “Com-
(4) (c), (b), (d), (e), (a) mand Groups” ?
8. Which of the following is not an HR De- (1) A group established to solve a particu-
mand Forecasting Technique ? lar problem.
(1) Managerial Judgement (2) A unit established by the organisation
to accomplish specific tasks.
(2) Ratio - Trend Analysis
(3) Group characterised by intimate, face-
(3) Merrick Differential Plan
to-face association and cooperation.
(4) Work Study Technique
(4) Formal groups that consist of manag-
9. Which of the following statements relating ers and their direct subordinates.
to ‘Role Systems’ is not correct ?
12. ‘BARS’, a scale constructed to measure the
(1) In a Role Set map, the occupant’s role effectiveness of Organisational Process with
will be in the centre and all other roles particular reference to behaviours exhibited,
in the system can be located at various stands for :
points of the map.
(1) Behaviour Analysis Rating Scale.
(2) The role space map of an individual can
(2) Behaviourally Anchored Ranking Scale.
be drawn by locating the self in the
(3) Behaviourally Anchored Rating Scale. (3) Central Tendency
(4) Behaviour Analysis Ranking Scale. (4) Halo Effect
13. In Lewin’s three step model of successful 17. The deliberate process through which some-
change in organisation, the stage which re- one becomes aware of personal skills, inter-
fers to “for making any change same thing ests, knowledge, motivations and other char-
has to be done in a planned way to disturb acteristics, and establishes action plans to
the status quo”, is known as : attain career specific goals is called :
(1) Moving (1) Career Management
(2) Unfreezing (2) Career Development
(3) Refreezing (3) Career Counselling
(4) Intervening (4) Career Planning
14. Match the Leadership Theories and their 18. When a new employee’s high expectations
proponents given in Lists - I and II below and enthusiasm confront the reality of a
List -1 List - II boring and unchallenging job, it is called :
Leadership Theories Proponents (1) Expectancy shock
(a) Managerial Grid (i) Hollandder and (2) Future shock
Theory Julian (1969) (3) Reality shock
(b) Iowa Leadership (ii) Albert Bandura (4) Cultural shock
Studies (1977) 19. What is the correct sequence of following
(c) Group and (iii) Lippitt and White stages in manpower acquisition process ?
Exchange (1939) (a) HR need forecast
Theories of (b) Assessing existing manpower
Leadership (c) Net manpower needed
(d) Social Learning (iv) Blake and Mouton (d) Organisational objectives and policies
Theories (1978) (e) Recruitment process
Code : Code:
(a) (b) (c) (d) (1) (b), (a), (d), (c), (e)
(1) (ii) (iii) (iv) (i) (2) (d), (a), (b), (c), (e)
(2) (i) (ii) (iv) (iii) (3) (d), (a), (c), (b), (e)
(3) (iii) (ii) (i) (iv) (4) (a), (b), (e), (d), (c)
(4) (iv) (iii) (i) (ii) 20. Match the following with the correct inter-
15. Which of the following methods of perfor- pretations :
mance appraisal places predetermined per- List - I List - II
centages of ratees into several performance (a) Reference (i) to predict success
categories ? checking and failure through
(1) Alternation Ranking Method one’s handwriting
(2) Paired Comparison Method (b) Graphology (ii) to determine how
(3) Graphic Rating Scale test well an individual
(4) Forced Distribution Method can perform tasks
16. Which of the following represents the influ- related to job
ence of a rater’s general impression on rat- (c) Aptitude test (iii) to ensure accuracy
ings of specific ratee qualities ? of the information
(1) Liniency or strictness given in the applica-
tion
(2) Horn Effect
(d) Ability test (iv) to determine a (c) First National (iii) 1958
person’s potential to Commission on Labour
learn in a given area (d) All India Railway (iv) 1932
Code : men’s Federation
(a) (b) (c) (d) Code :
(1) (iii) (i) (iv) (ii) (a) (b) (c) (d)
(2) (iv) (ii) (i) (iii) (1) (i) (ii) (iii) (iv)
(3) (ii) (iii) (iv) (i) (2) (iv) (iii) (ii) (i)
(4) (iii) (iv) (i) (ii) (3) (ii) (iii) (i) (iv)
21. In which of the theoretical perspectives of (4) (iii) (ii) (iv) (i)
industrial relations it is believed that con- 26. Who was associated with the establishment
flict is necessary, but it can be and needs to of the National Organisation of Labour ?
be managed and resolved ? (1) Morarji Desai (2) S. A. Dange
(1) Unitarist Perspective (3) R. R. Gokhale (4) N. M. Joshi
(2) Pluralist Perspective 27. Robert Hoxie’s theory of trade union move-
(3) Radical Perspective ment is based on :
(4) Trusteeship Perspective (1) Communist Perspective
22. Who described that “industrial relations is (2) Socialist Perspective
an art, the art of living together for purposes (3) Capitalist Perspective
of production (and/or services)” ? (4) Concept of Trusteeship
(1) John T. Dunlop 28. The Rohtas Workers’ union is an example
(2) John H. Richardson of :
(3) M. Salamon (4) A. Flanders (1) Industrial union
23. In which country the Labour Court is bifur- (2) General union
cated into a bureau of judgement and a bu- (3) Craft union
reau of conciliation ? (4) Industrial federation
(1) Germany (2) France
29. Arrange the following central trade union
(3) Great Britain organisations basing on the years of their
(4) United States of America formation starting from the oldest one :
24. Which of the following statements relating AITUC, BMS, HMS and INTUC.
to labour - management cooperation is not (1) HMS, BMS, AITUC and INTUC
correct ? (2) AITUC, INTUC, HMS and BMS
(1) It does not include information - shar- (3) INTUC, HMS, AITUC and BMS
ing. (4) BMS, INTUC, HMS and AITUC
(2) It includes problem sharing. 30. In which of the following states there does
(3) It includes joint consultation. not exist an enacted law for recognition of
(4) It includes workers’ participation in trade unions ?
management. (1) Gujarat (2) Rajasthan
25. Match the following : (3) Odisha (4) Maharashtra
Name Year of establishment 31. The appropriate government either on its
(a) Indian Labour (i) 1966 own motion or an application made by the
Conference employer or any workman reviews its order
(b) Central Board for (ii) 1942 granting or refusing to grant permission for
Workers’ Education
retrenchment of workman or refer the mat- (4) The provision of First - Aid appliances
ter to a Tribunal for adjudication. When is a welfare measure.
such reference has been made, the Tribunal 35. Which of the following bodies is provided
has to pass an award within how many under the Minimum Wages Act, 1948 ?
days from the date of such reference ? (1) Standing Labour Committee
(1) Ninety days (2) Sixty days (2) Central Council
(3) Thirty days (4) Forty five days (3) Advisory Board
32. Under the Payment of Bonus Act, 1965, what (4) Executive Authority
is the minimum number of days an employee 36. Which of the following provisions is not
should have served in a year in the covered under the Contract Labour (Regu-
organisation to be entitled for getting bonus? lation and Abolition) Act, 1970 ?
(1) Two hundred and forty days
(1) Registration of the principal employers
(2) Thirty days (2) Licensing of the contractors
(3) One hundred and ninetyfive days (3) Abolition of contract labour
(4) One hundred and twenty days (4) Regularisation of employment of the
33. The penalty prescribed under the Industrial contract labour by the principal em-
Disputes Act, 1947 for disclosing confiden- ployer
tial information is : 37. Match the authorities provided under List -
(1) Imprisonment for a term which may A with the respective legislations under
extend to one year with a fine which which they are covered as provided under
may extend to two thousand rupees or List - B.
both. List - A List - B
(2) Imprisonment for a term which may
(a) Commissioner (i) The Payment of
extend to one year with a fine which
Gratuity Act, 1972
may extend to two thousand and five
(b) The Controlling (ii) The Contract
hundred rupees or both.
Authority Labour
(Regulation and
extend to six months or with a fine
Abolition) Act,
which may extend to one thousand ru-
1970
pees or both.
(c) The Licensing (iii) The Employees’
Officer Compensation
extend to six months or with a fine
Act, 1923
which may extend to two thousand ru-
pees or both. (d) The Certifying (iv) The Mines Act,
Surgeon 1952
34. Which of the following statements is not cor-
Code :
rect under the provisions of the Factories
Act, 1948 ? (a) (b) (c) (d)
(1) Cleanliness and over crowding are cov- (1) (i) (iii) (iv) (ii)
ered under Chapter - III. (2) (iii) (i) (ii) (iv)
(2) Adolescent means a person who has (3) (ii) (iii) (i) (iv)
completed fourteenth year of age but not (4) (iv) (ii) (iii) (i)
completed eighteenth year. 38. The term ‘Designated Trade’ is defined un-
(3) The occupier of the factory means the der which of the following Acts ?
person who has ultimate control over (1) Trade Unions Act, 1926
the affairs of the factory. (2) Equal Remuneration Act, 1976
(3) Apprentices Act, 1961 Code :

(4) Employment Exchanges (Compulsory (1) (a) and (c) (2) (b) only
Notification of Vacancies) Act, 1959 (3) (b) and (d) (4) (d) only
39. A woman employee is entitled to which of 42. Match the following :
the following benefits under the Maternity Philosophy Theory of
Benefit Act, 1961 ? Labour Welfare
(a) Medical bonus (a) Laws are made to (i) Religious
(b) Leave with wages for tubectomy opera- prescribe minimum Theory
tions welfare for workers,
(c) Leave for miscarriage implementation of
(d) Nursing breaks which is periodically
Code : supervised and
(1) (a) and (c) only punishment for
(2) (b) and (d) only defaulting employers is
levied.
(3) (a), (b) and (c) only
(b) Labour welfare work (ii) Placating
(4) (a), (b), (c) and (d)
is taken up in a Theory
40. What is the maximum number of members spirit of atonement.
to be appointed by the Central Government (c) Labour welfare is (iii) Public
in addition to the chairman in constituting extended in order to Relations
the Child Labour Technical Advisory Com- satisfy and appease theory
mittee under the Child Labour (Prohibitions the increasing
and Regulation) Act, 1986 ? demands of employees.
(1) Ten members
(d) Labour welfare is (iv) Policing
(2) Seven members extended to build and Theory
(3) Twelve members improve ‘employer
(4) Eight members branding’.
41. Examine the following statements about Code :
labour welfare. Identify the one(s) that does (a) (b) (c) (d)
not fit into the logical set. (1) (ii) (iii) (i) (iv)
(a) Labour welfare has both positive and (2) (iv) (ii) (iii) (i)
negative sides. On the positive side, it (3) (iv) (iii) (i) (ii)
deals with the provision of opportuni- (4) (iv) (i) (ii) (iii)
ties which enable the worker and his
family to lead a good life socially and 43. Which of the following concepts explains
personally. that welfare implies the welfare of man, his
family, and his community ?
(b) On the negative side, it functions in or-
der to neutralise the baneful effects of (1) The total concept of welfare
large-scale industrialisation. (2) The social concept of welfare
(c) Labour welfare is flexible, elastic and (3) The positive concept of welfare
differs from time to time, region to re- (4) The relative concept of welfare
gion, industry to industry and country 44. Arrange the following developments in
to country. Labour Welfare movement in the correct or-
(d) It needs not be related to the socio-cul- der from earliest to the latest.
tural background, economic status and (a) Voluntary organisations engaged in
education level of the workers.
Labour Welfare expanded in number (1) Economic factors only
and influences. (2) Social and Political factors only
(b) Trade Unions fought to bring about an (3) Institutional factors only
improvement in the working conditions (4) All the factors combined together
of labour and to raise their status so-
48. Who said “Jobs, rather than men, should
cially and economically.
wait” ?
(c) Some enlightened employers took the
(1) Karl Marx (2) Higgins
initiative to improve the living and
working conditions of labour. (3) Sir William Beveridge
(d) The state tried through legislation to (4) D. R. Gadgil
regulate and improve the lot of labour. 49. Assertion: There exists surplus of available
Code : workers over available jobs but there exists
(1) (d), (c), (b), (a) (2) (c), (b), (d), (a) shortage of skilled work force.
(3) (c), (d), (b), (a) (4) (a), (d), (c), (b) Reason: Skill development received impe-
tus recently.
45. Assertion (A): Both pro active and reactive
Code :
methods can address to the problem of acci-
dents in companies. (1) Both Assertion and Reason are wrong.
Reason (R): Labour Welfare provisions like (2) Assertion is right but the Reason does
good house - keeping, safety campaigns can not explain the Assertion.
go a long way in controlling accidents. (3) Both Assertion and Reason are right
Code : and Reason explains the Assertion.
(1) (A) is right and (R) explains the (A). (4) Assertion is wrong but the Reason is
right.
(2) (A) is not right and (R) is right.
(3) Both (A) and (R) are wrong. 50. Under the provisions of the Minimum
Wages Act, 1948, in matters of fixation and
(4) (A) is wrong and (R) tries to explain
revision of minimum wages, the Central Ad-
wrong (A).
visory Board is to advise to which of the
46. The nature of demand for Labour is : following authority ?
(1) Direct demand (1) The Central Government only.
(2) Indirect or derived demand (2) Various Committees Constituted Under
(3) Both direct demand and indirect de- the Act.
mand (3) The Central Government and State Gov-
(4) None of the above ernments.
47. The supply of Labour for the entire economy (4) The State Governments only.
depends upon :
ANSWERS
1. (2) 2. (4) 3. (2) 4. (1) 5. (1) 6. (2) 7. (3) 8. (3) 9. (1) 10. (3)
11. (1) 12. (3) 13. (2) 14. (4) 15. (4) 16. (4) 17. (4) 18. (3) 19. (2) 20. (1)
21. (2) 22. (2) 23. (2) 24. (1) 25. (3) 26. (4) 27. (2) 28. (2) 29. (2) 30. (3)
31. (3) 32. (2) 33. (3) 34. (4) 35. (3) 36. (4) 37. (2) 38. (3) 39. (4) 40. (1)
41. (4) 42. (4) 43. (2) 44. (2) 45. (1) 46. (3) 47. (4) 48. (3) 49. (2) 50. (3)
December, 2015
PAPER-III
1. Match the following : (3) Identity, structures, scalar chain and

List - I List - II span of control.
(a) Outsourcing (i) Achieving large (4) Structures, scalar chain, span of control
cost savings by and specialisation.
eliminating un- 3. Who was the first Indian to become the Presi-
needed activities dent of International Labour Conference ?
and consolidating (1) Babu Jagjiwan Ram
work.
(2) Mr. Atul Chatterjee
(b) Open-book (ii) Broad based
(3) Dr. Nagendra Singh
management approach for
achieving high (4) Mr. Ravindra Verma
levels of perfor- 4. Which of the following regional groups in
mance. the internationalisation scenario is having
(c) Total Quality (iii) Sharing financial regional associations of employers and em-
management and performance ployees as well as institutions governing
information with their relationships ?
employees. (1) South Asian Association of Regional
(d) Reengineering (iv) Contracting out of Co-operation (SAARC).
activities that were (2) Brazil, Russia, India, China, South
previously per- Africa (BRICS).
formed in-house. (3) European Union (EU).
Code : (4) Organisation of the Petroleum Export-
(a) (b) (c) (d) ing Countries (OPEC).
(1) (iii) (iv) (ii) (i) 5. Sensitivity training is usually provided to :
(2) (iv) (i) (ii) (iii) (a) Individual employee.
(3) (iv) (iii) (ii) (i)
(b) Small group of 10-12 people.
(4) (i) (ii) (iii) (iv)
(c) Large group at organisational level.
2. According to classical theorists, the four pil-
(d) The employees for increased awareness
lars of organising are : of their own behaviour and how others
(1) Division of labour, scalar and functional perceive them.
processes, structures and span of con-
Which of the following is correct ?
trol.
(1) (a), (b) and (d) are correct.
(2) Division of labour, identity, structures
and cooperation. (2) (b) and (c) are correct.
(3) (b) and (d) are correct. (4) (A) and (R) both are correct and (R) does
(4) All (a), (b), (c) and (d) are correct. not explain (A).
6. Assertion (A) : Total Quality Management 10. Which of the following is a general state-
aims at delighting customers, both external ment that guides or channels thinking in
and internal, on a continuous basis. decision-making ?
Reason (R) : Quality process involves the (1) Strategy
understanding of who the customers are, (2) Policy
what are their needs and how these needs (3) Rule
can be satisfied. (4) Procedure
(1) Both (A) and (R) are wrong.
11. “Labour legislation regards the individual
(2) (A) is wrong and (R) is correct. as a worker, whereas social legislation con-
(3) Both (A) and (R) are correct, but (R) does siders him primarily as a citizen.” Who
not explain (A). among the following made this distinction?
(4) Both (A) and (R) are correct and (R) (1) Edwill E. Witle
rightly explains (A). (2) John D. Hogan
7. Which among the following can become a (3) Jeremy Bentham
member of I.L.O.? (4) Francis A.J. Ianni
(1) Largest Political Party of a Country
12. Which of the following is not a publication
(2) A Country of I.L.O.?
(3) A Trade Union (1) International Labour Review
(4) Employer’s Federation (2) Shram Ki Duniya
8. The Chartist Movement was started in Great (3) International Labour Statistics
Britain during : (4) Indian Labour Journal
(1) 1820s (2) 1830s
13. Which of the following explanations refers
(3) 1840s (4) 1850s to “Problem Clinic” method of Training ?
9. Assertion (A): Resistance to change is the (1) To analyse performance in simulated
ability to avoid what one does not want from exercise to reveal individual and/or
the environment/is a behaviour designed group training needs.
to discredit, delay or prevent the implemen- (2) To self evaluate and know what addi-
tation of a change. tional knowledge, skill or insight is
Reason (R): According to Newton’s third needed.
law of motion “to every action there is an (3) To meet and talk informally with people
equal and opposite reaction”. Resistance to for finding clues to training needs.
change, is therefore, bound to be there.
(4) To arrange meetings of a homogeneous
Real change will be effective only when Driv- group to discuss a common problem
ing Forces > Restraining Forces. and develop a solution.
Codes :
14. In a way Alderfer’s ERG Theory is an exten-
(1) (A) and (R) both are not correct. sion of Maslow’s Theory. Alderfer suggested
(2) (A) is right and (R) is wrong. three categories of needs rather than five.
(3) (A) and (R) both are correct and (R) ex- The needs suggested by Alderfer are :
plains (A). (1) Emotion, Rationality, Growth
(2) Efficacy, Reasoning, Giving (2) (a) and (c)

(3) Existence, Relatedness, Growth (3) (a), (b) and (d)
(4) Exclusion, Relevance, Giving (4) (b) and (d)
15. An organisation receives 23 lakh applica- 18. Assertion (A) : Organisation Development
tions for 200 posts. Which of the following (OD) is a planned effort and therefore re-
interpretation(s) is/are most likely ? quires a great deal of thinking and plan-
(1) The unemployment is high. ning on the part of the OD expert. Knowl-
(2) The candidates are much aware about edge and skills of the applied behavioural
the employment opportunities. sciences are used in OD.
(3) The selection process becomes complex. Reason (R): OD cannot succeed unless the
people at the top are committed to what is
(4) All of the above.
being done. By definition, OD has to begin
16. Assertion: Prior to the formation of interna- from the top.
tional labour organisation, most of the leg- Codes :
islations governing the working class in In-
(1) (A) is correct (R) is not correct.
dia were regressive in nature and aimed at
serving the interest of Britishers. (2) (R) is correct (A) is not correct.
Reason: India was a British colony. (3) (A) and (R) both are correct, (R) explains
(A).
Codes :
(4) (A) and (R) both are correct, (R) does not
(1) Assertion is right but reason fails to
explain (A).
fully justify assertion.
(2) Assertion is wrong and reason is right. 19. Which of the following studies/approaches
does not come under the In-plant Theories
(3) Assertion is right and reason is wrong.
of industrial relations ?
(4) Both assertion and reason are wrong.
(1) The ‘systems’ approach developed by
17. Which of the following statements about John T. Dunlop.
shop councils in India is/are true accord- (2) The Human Relations approach of
ing to the 1975 scheme of Workers’ Partici- Elton Mayo.
pation in Industry at Shop-floor and Plant
(3) The behaviouristic approach of Rensis
Levels ?
Likert.
(a) The employer of every industrial unit
(4) The Group Dynamics approach of Kurt
employing 500 or more workmen is re-
Lewin, Chris Argyris and others.
quired to constitute a shop council for
each department or shop. 20. The objects and reasons of the Industrial
(b) A shop council is to consist of an equal Disputes Bill, 1947 stated that industrial
number of representatives of employers peace will be most enduring where it is
and workers. founded on voluntary settlement of indus-
trial disputes. Which of the following ma-
(c) Shop councils have no role to play in
chineries was created for this purpose un-
production and productivity matters.
der the Industrial Disputes Act, 1947 ?
(d) The management in consultation with
(1) Works Committees
the workers is to evolve the most suit-
able pattern of representation on the (2) Conciliation
shop council. (3) Voluntary arbitration
Codes : (4) Adjudication
(1) (a) and (b)
21. The Noble Order of the Knights of Labour (b) Right to work, to (ii) Article (39 d)
was founded in Philadelphia in the year : education and to
(1) 1866 (2) 1869 public assistance in
(3) 1872 (4) 1879 certain case.
22. The Leadership Theories based on the as- (c) Provision for just (iii) Article (43 A)
sumption that ‘the leader’s ability to lead is and humane
contingent upon various situational factors conditions of work
such as the leader’s preferred style, the ca- and maternity relief.
pabilities and behaviours of the followers (d) Participation of (iv) Article (42)
etc’ is known as : workers in
(1) Situational Leadership Theory management
(2) Behavioural Theories of industries.
(3) Contingency Theories Codes :
(4) Trait Theories (a) (b) (c) (d)
23. The Joint Consultative Board of Industry (1) (ii) (i) (iii) (iv)
and Labour was set up in the year : (2) (ii) (i) (iv) (iii)
(1) 1950 (2) 1951 (3) (i) (ii) (iii) (iv)
(3) 1952 (4) 1953 (4) (iv) (iii) (ii) (i)
24. What is a ‘wild-cat strike’ ? 26. Examine following statements about Brit-
(1) Strike perpetrated by workers with the ish and American Industrial Relations and
support of the relevant union without identify those which are wrong :
giving notice to the employer. (a) The core feature of British industrial re-
(2) Strike called by a group of workers on lations is the central role played by
the spur of the moment without any for- workplace union activities .
mal notice to the employer or any con- (b) The workplace union activities pro-
sent from the relevant union. moted through ‘shop stewards’ has cur-
(3) Strike called by the union after resort- tailed the union strength as bargaining
ing to a strike ballot. agents at the plant level in U.K.
(4) Strike called by a union with a formal (c) American industrial relations have
notice to the employer just a few min- been described as adversarial and a re-
utes before the commencement of the lationship of confrontation.
strike. (d) While unions in America mainly were
25. Directive principles of state policy, as con- preoccupied with gaining recognition
tained in Indian constitution, contain vari- as a bargaining partner, the manage-
ous Articles which have influenced the en- ment used informal participation
actment of social and labour legislations. schemes as a weapon to break the
Match the subject matters of Directive Prin- unions.
ciples with Article Numbers as given in Codes :
List - I and List - II respectively. (1) (a) and (c) are wrong
List - I List - II (2) (b) and (c) are wrong
(a) Equal pay for equal (i) Article (41) (3) (a) and (d) are wrong
work for both men (4) None of the statements are wrong
and women.
27. The person whose nationality is the same (2) Dismiss/Discharge

as that of the country in which the corpo- (3) Promotion
rate office of the MNC is located, but differs (4) Retrenchment
from the country in which he is working, is
called :
(1) Parent Country National. Name of the Act Also called
(2) Host Country National. (a) The National (i) The Wagner
Labour Relations Act
(3) Third Country National.
Act, 1935
(4) Home Country National.
(b) The Labour (ii) Taft-Hartley
28. Which of the following statements is not true Management Act
about Dunlop’s Industrial Relations Sys- Relations Act, 1947
tem?
(c) The Labour (iii) Landrum-
(1) It consists of four basic components Management Griffin Act
namely actors, ideology, rules and an
Reporting and
environmental context.
Disclosure Act, 1959
(2) In respect of rules, they can be both sub-
Codes :
stantive and procedural.
(a) (b) (c)
(3) In respect of context, it incorporates tech-
nological, economic and political con- (1) (i) (ii) (iii)
texts. (2) (ii) (i) (iii)
(4) In respect of ideology, there is no need (3) (iii) (i) (ii)
to have consensus between the ideol- (4) (ii) (iii) (i)
ogy of actors. 32. Match stress related terms (List - I) with their
29. Assertion (A): Labour Welfare will give rise description (List - II) given below :
to social inequities. List-I List - II
Reason (R): Workers of large undertakings (a) Coping (i) The resultant feeling
having capacity of offering better welfare Behaviour caused by a sense of
amenities will be better placed then those of privation, depriva-
small and medium undertakings which are tion or conflict in re-
not in a position to run welfare services. lation to the goal di-
Codes : rected activities.
(1) Both (A) and (R) are wrong. (b) Deprivation (ii) Dealing with situa-
(2) (A) is right, but (R) does not explain (A). tions of privation,
(3) (A) is wrong and (R) attempts to justify deprivation, frustra-
a wrong assertion. tion and stress.
(4) (A) is right and (R) explains the logic of (c) Frustration (iii) Blocking of or inter-
(A). fering with goal di-
rected activities.
30. A dispute involving an individual workman
(d) Glow-up (iv) Feeling of challenge,
relating to which of the following issues
high job satisfaction,
shall not be an industrial dispute without
creativity, effective-
the support of a trade union or an appre-
ness and better ad-
ciable number of workmen ?
justment to work and
(1) Termination life.
Codes : 36. Match the following :
(a) (b) (c) (d) List - I List - II
(1) (ii) (iii) (i) (iv) (a) Hot - stove Rule (i) Grievance
(2) (iii) (ii) (iv) (i) handling
(3) (i) (ii) (iii) (iv) (b) Common Law (ii) Disciplinary action
(4) (iv) (iii) (ii) (i) (c) Step-ladder (iii) Union security
33. The provision of prohibiting strikes and system measure
lock-outs without fourteen days notice in (d) Protected (iv) Principles of
the public utility services provided under workman natural justice
the Industrial Disputes Act, 1947 has been Codes :
borrowed from which of the following ? (a) (b) (c) (d)
(1) Report of the National Commission on (1) (i) (iii) (ii) (iv)
Labour (first), 1969.
(2) (ii) (iv) (i) (iii)
(2) Recommendations of the Indian Labour
(3) (iii) (ii) (iv) (i)
Conference.
(4) (iv) (iii) (ii) (i)
(3) Defence of India Rules, 1942.
37. Hofstede’s cultural variable of ‘Power Dis-
(4) Report of the Labour Investigation Com-
tance’ means :
mittee, 1944.
(a) the extent to which less powerful
34. Which of the following statements about col-
members of organisation accept and
lective bargaining in India are true ?
expect that power is distributed
(a) Collective bargaining is a legally sanc- unequally.
tioned method in India.
(b) that the society’s level of inequity of
(b) Collective bargaining is not a legally power is endorsed by followers as much
sanctioned method in India. as by leaders.
(c) Collective bargaining is partly volun- (c) that power and inequity are fundamen-
tary and partly compulsory. tal facts of any society.
(d) Collective agreement is binding on the Codes :
parties that have signed the agreement.
(1) (a) only (2) (b) only
Codes :
(3) (a) and (b)
(1) (a) and (b) are true
(4) (a), (b) and (c)
(2) (b) and (c) are true
38. In which of the following situations maxi-
(3) (b) and (d) are true
mum compensation is paid under the Em-
(4) (a) and (c) are true ployees’ Compensation Act, 1923 ?
35. The General Conference of ILO, at its 26th (1) Death resulting from injury
session held in 1944, re-affirmed the prin- (2) Permanent partial disablement
ciples and adapted a declaration which is
(3) Partial or total temporary disablement
popularly known as :
(4) Permanent total disablement
(1) Geneva Charter
(2) Washington Charter 39. Which one of the following Articles of the
Indian Constitution has been made effec-
(3) Philadelphia Charter
tive with the enactment of the Equal Remu-
(4) Berne Charter neration Act, 1976 ?
(1) Article 41 (2) Article 43 Codes :

(3) Article 39 (4) Article 42 (1) (a), (b) are right; (c), (d) and (e) are wrong.
40. Match the provisions given in (List - I) of the (2) (a), (b), (c) are right; (d) and (e) are wrong.
Factories Act, 1948 with the conditions re- (3) (a), (b), (c), (d) are right; (e) is wrong.
lating to employment of workers given in (4) (a), (b), (d) are right; (c) and (d) are
(List - II). wrong.
List - I List - II 42. In case an employee suffering from partial
(a) Cool drinking (i) Five hundred or disability, applies for voluntary retirement
water more workers then under the persons with disabilities
(b) Ambulance (ii) More than one (Equal Opportunities, Protection of Rights
room hundred and fifty and Full Participation) Act, 1995, it is the
workers duty of employer :
(c) Shelter, rest (iii) More than two (a) to let the employee go under the volun-
rooms and hundred and fifty tary retirement scheme immediately.
lunch rooms workers (b) to advise the employee that despite his
(d) Welfare Officer (iv) More than five partial disability, he has the option to
hundred workers continue service with the same condi-
tions of employment.
Codes :
(c) to process the application for voluntary
(a) (b) (c) (d)
retirement, as per the applicable rules,
(1) (ii) (iii) (ii) (i) if inspite of being advised to continue
(2) (iv) (i) (iv) (ii) service, the employee wishes to take
(3) (iii) (ii) (i) (iv) voluntary retirement.
(4) (i) (iii) (i) (ii) (d) A disabled employee cannot opt for vol-
41. The following statement has five sub-parts. untary retirement.
Identify the ones which are right and those Codes :
which are wrong. (1) (a) only (2) (d) only
(a) The Foreign Direct Investment (FDI) is (3) (b) only
an alluring target for both developed (4) Both (b) and (c)
and developing economies.
43. An employee retires from a factory after put-
(b) Ease of doing business and reduction ting in 28 (twenty eight) years of service. The
in bureaucratic hassles are becoming
last wages drawn by him per month before
preconditions for attracting FDI. retirement was Rs. 39,000. What is the
(c) Labour reforms in order to reduce the amount of gratuity to be paid by his em-
controls of ‘protective’ legislations is ployer under the payment of Gratuity Act,
demanded by Foreign Direct Investors. 1972 ?
(d) Harmonious Industrial Relations (1) Rs. 5,46,000
climate with low union density and (2) Rs. 6,16,000
strong participative culture is expected
(3) Rs. 5,89,000
by the Foreign Direct Investors.
(4) Rs. 6,30,000
(e) Political stability and economic funda-
mentals, however, are precluded from 44. Which of the following comes under the
the preconditions of FDI. ‘State List’ as provided under the Seventh
Schedule of the Constitution of India ?
(1) Relief of the disabled and unemploy- (d) Scheme of (iv) 1970
able. Employees’
(2) Vocational and technical training of participation in Public
labour. Sector Undertakings
(3) Social security and social insurance. Codes :
(4) Welfare of labour including conditions (a) (b) (c) (d)
of work. (1) (iii) (ii) (iv) (i)
45. Who has given the meaning of “Conjunc- (2) (iii) (iv) (i) (ii)
tion” in industrial relations as “a state of (3) (iii) (i) (iv) (ii)
relationship under which the parties, in- (4) (ii) (iv) (iii) (i)
stead of offering their best, offer the least in
49. Match the descriptions with the respective
the absence of which the relationship will
break” ? terms as given under the Industrial Disputes
Act, 1947.
(1) Selig Perlman
(a) Permanent closing (i) Lock-out
(2) Neil W. Chamberlain
down of place of
(3) Frencis Walker employment
(4) Ian Clegg (b) Failure or inability (ii) Retrenchment
46. Knowledge Management refers to : of an employer to
(1) Providing the best skills to employees give employment to
through planned training programmes. a workman whose
(2) Capturing, developing, sharing and name is borne on the
using organisational knowledge. muster - rolls due to
(3) Creating data bank of information about shortage of coal, power,
employees and customers. raw materials or
(4) Gathering information from employees accumulation of stock
for bringing planned change. (c) Temporary closing (iii) Closure
47. Under the payment of Bonus Act, 1965, for a of a place of
Banking Company, what percentage of the employment or the
available surplus shall be taken as the allo- suspension of work
cable surplus ? by the employer
(1) Seventy five percent (d) Termination by the (iv) Lay-off for any
(2) Sixty seven percent employer the reason other
(3) Fifty percent service of a workman wise than as
punishment
(4) Sixty percent
Codes :
(a) (b) (c) (d)
List - I List - II
(1) (i) (ii) (iii) (iv)
(a) Works Committee (i) 1983
(2) (iii) (iv) (i) (ii)
(b) Joint Management (ii) 1958
(3) (iv) (iii) (ii) (i)
Councils
(4) (ii) (i) (iv) (iii)
(c) Board-level (iii) 1947
participation 50. Quality of work life as a socio - technical
concept was advanced by :
(1) Fred Luthans (c) Geocentric (iii) requires parent-

(2) Eric Trist Approach country nationals on
(3) A.K. Rice all the key positions.
Codes :
(4) Peter F.Drucker
(a) (b) (c)
to ‘Lay-off under the Industrial Disputes Act, (1) (iii) (i) (ii)
1947 is not correct ? (2) (i) (ii) (iii)
(1) Lay-off compensation shall be equal to (3) (ii) (iii) (i)
fifty percent of the total wages and dear- (4) (iii) (ii) (i)
ness allowance. 54. What is the ceiling of monthly wages for
(2) Lay-off compensation can be paid maxi- covering an employee under the Employees’
mum for a period of forty-five days dur- State Insurance Act, 1948 ?
ing a period of twelve months. (1) Rs. 10,000 (2) Rs. 15,000
(3) No lay-off compensation can be paid if (3) Rs. 18,000 (4) Rs. 12,000
a workman laid - off refuses to accept
55. Which of the following interpretations is
any alternative employment in the same
true based on the statements (A) and (B) ?
establishment.
Statement (A): staff can make an advise to a
(4) A laid-off workman need not present
line manager.
himself daily for work at the establish-
ment during the period of lay-off. Statement (B): A line manager may or may
not accept the advice.
52. What is the full form of AFL-CIO ?
Codes :
(1) Asian Federation of Labour-Committee
(1) Both (A) and (B) are correct.
of Industrial Organizations.
(2) (A) is correct but (B) is incorrect.
(2) African Federation of Labour - Confed-
eration of Industrial Organizations. (3) (A) is incorrect but (B) is correct.
(3) American Federation of Labour - Con- (4) Both (A) and (B) are incorrect.
gress of Industrial Organizations. 56. Institutions of workers participation in man-
(4) American Federation of Labour - Con- agement is/are provided under which of
federation of Industrial Organizations. the following legislations in India ?
53. Match the followings in relation to staffing (a) Industrial Disputes Act, 1947.
approaches adapted by the MNCs : (b) Industrial Employment (standing or-
(a) Ethno centric (i) requires host country ders) Act, 1946.
Approach nationals to be hired (c) Factories Act, 1948.
to manage subsidiar- (d) Plantation Labour Act, 1951.
ies whereas parent - Codes :
country nationals oc- (1) (a), (b) and (d) only
cupy key positions at
(2) (a), (b) and (c) only
corporate headquar-
(3) (b) and (d) only
ters.
(b) Polycentric (ii) seeks the best people (4) (a) and (c) only
Approach for key jobs regard- 57. Which of the following is considered as a
less of nationality. precursor of Indian Labour Movement ?
(1) The Bombay Mill Hands Association
(2) The Ahmedabad Textile Labour Asso- (1) S.R. Udpa
ciation (2) B. Muthuraman
(3) The Kamgar Hitwardhak Sabha (3) Madhurendra Verma
(4) The Madras Labour Union (4) Ram S. Tarneja
58. Alpha, Beta, Gamma A and Gamma B 62. Which amongst the following is not an At-
changes are related to which change ? tached Office of Central Government’s
(a) Structural change Labour Administration ?
(b) System change (1) Office of the Chief Labour Commis-
(c) Process change sioner (Central).
(d) Cognitive change (2) Directorate General of Employment and
Codes : Training.
(1) (a) and (b) (2) (b) only (3) Labour Bureau
(3) (d) only (4) (c) and (d) (4) Central Board of Worker’s Education.
59. Under the existing provisions of the Pay- 63. Which of the following is a job grading struc-
ment of Bonus Act, 1965 a ceiling has been ture that falls between using spot salaries
imposed that for the purpose of computa- versus many job grades to determine what
tion of Bonus, the wages be considered to be to pay to particular positions and incum-
rupees ten thousand only. There exists a pro- bents within those positions ?
posal to amend this ceiling and raise the (1) Broadbanding
upper wage ceiling for the purpose of cal- (2) Variable compensation
culation to : (3) Executive compensation
(1) Rupees Eleven thousand (4) Team based pay
(2) Rupees Nineteen thousand 64. Which of the following statements about dis-
(3) Rupees Fifteen thousand ciplinary procedure is/are true ?
(4) Rupees Twenty five thousand (a) A charge-sheet enumerating the alleged
60. Which of the following statements about discharges shall be given to the alleged of-
ciplinary action is wrong ? fender with a scope to give explanation
(1) Enquiry can be conducted in the absence within reasonable time.
of the alleged employee after giving (b) The notice of enquiry need to contain
enough notice. date, time and venue.
(2) If the alleged employee is not satisfied (c) If the alleged offender is not satisfied
with an enquiry process, he/she can- with the enquiry process; he/she can
not request for fresh enquiry. not seek another enquiry, because it is a
(3) Suspension pending enquiry has to management prorogative to hold en-
be supported with subsistence allow- quiry.
ance. (d) Under any circumstances, the enquiry
(4) Fine as a punishment levied can be de- cannot be held in the absence of the al-
ducted from the wage of an employee. leged offender.
61. Under whose stewardship quality circles Codes :
were first introduced in India in the (1) All statements are true
Ramachandrapuram unit of Bharat Heavy (2) Only (a) and (b) are true
Electricals Ltd ? (3) (a) and (c) are only true
(4) (a), (b) and (d) are true
65. ‘Glass ceiling’ is a phenomena related to : work, education and

(1) Solar energy conservation system public assistance in
(2) Inter - personal openness case of unemployment,
old age sickness
(3) Gender bias in career progression
and disablement
(4) Transparency in information sharing
Codes :
66. Which of the following is not part of the rec- (a) (b) (c) (d)
ommendations of Indian Labour Conference
(1) (i) (ii) (iii) (iv)
on ‘rationalisation’ ?
(2) (iv) (iii) (ii) (i)
(1) There should be a cap on recruitment.
(3) (iii) (ii) (i) (iv)
(2) There should be no retrenchment or loss
(4) (iii) (iv) (i) (ii)
of earnings of the existing employees.
(3) Workers could be provided with suit- 68. Social dialogue includes ‘all types of nego-
able alternative jobs in the same employ- tiations and consultations or simple ex-
ment or under the same employer, sub- changes of information between/among
representatives of the government, employ-
ject to agreement between employer and
ers and workers on issues of common inter-
the workers.
est relating to economic and social policies’.
(4) There should be a proper workload as-
This meaning was advanced by :
sessment by an expert.
(1) The Indian Labour Conference.
67. The Directive Principles of State Policy, as (2) The Standing Labour Committee.
contained in Indian Constitution, contains
(3) The United Nations Organisation.
various Articles which has influenced the
enactment of social and labour legislations. (4) The International Labour Organisation.
Match the subject matters of the Directive 69. Which of the following statements about fa-
Principles with the Article Numbers as given tigue is/are right ?
in List - I and List - II respectively : (a) Fatigue is caused by the length of the
List - I List - II work period.
(a) Promotion of Welfare (i) Article 43 (b) The speed of work contributes to fa-
of people by securing tigue.
and protecting effectively (c) The extent of muscles involved and the
a social order in which tension accompanying the task also are
justice shall inform all factors responsible for causing fatigue.
institutions of (d) Individual differences in terms of the
national life. strength, stamina and preparation of
(b) Securing just and (ii) Article 41 the individual has no bearing on the in-
humane conditions cidence of fatigue.
of work and for Codes :
maternity relief. (1) (a) and (b) are true.
(c) Securing living (iii) Article 38(1) (2) (a), (b) and (d) are true.
wage ensuring (3) (a), (b), (c) and (d) are true.
decent standard (4) (a), (b) and (c) are true.
of life.
70. A proposal is pending pertaining to amend-
(d) Within the limits of (iv) Article 42 ing the Present Factories Act, 1948.
economic capacity, Which amongst the following has not been
securing right to included in the proposed amendment ?
(1) Changes in the present definition of fac- (b) There is a provision in the Act relating
tory by increasing the number of work- to decent work.
ers from ten with the aid of power and (c) There is a provision in the Act relating
twenty without the aid of power to to the unfair labour practices.
twenty and forty respectively. (d) There is a provision in the Act relating
(2) Incorporation of new clause under Sec- to political fund.
tion 35 A pertaining to provisions of Codes :
personal protective equipment for work-
(1) (b) and (c) (2) (a) and (b)
ers.
(3) (c) and (d) (4) (a) and (d)
(3) Provision for preparation of Emergency
plan and Disaster control measures. 74. Which of the following statements about the
(4) Changes in the provisions of the Act post economic reforms in 1991, relating to
relating to appointment of Welfare Of- creation of a ‘safety net’ is/are true ?
ficer. (a) A National Renewal Fund (NRF) was
created.
71. Match the following ‘Expressions’ and the
‘Ego states’ given in List -1 and List - II re- (b) The NRF was meant to provide finan-
spectively. cial support to the sick industries.
List - I List - II (c) The NRF was primarily used to meet
Expressions Ego states the expenditure on voluntary retirement
schemes implemented in the public sec-
(a) Rationality (i) Parent
tor undertakings.
(b) Fantasizing (ii) Adult
(d) The NRF was created primarily for re-
(c) Demonstrating (iii) Child habilitation of workers through train-
Codes : ing and retraining.
(a) (b) (c) Codes :
(1) (ii) (iii) (i) (1) (b) and (d) only
(2) (iii) (i) (ii) (2) (c) and (d) only
(3) (i) (ii) (iii) (3) (a), (c) and (d) only
(4) (iii) (ii) (i) (4) (a), (b) and (c) only
72. Which of the following are the errors, an 75. Which of the following are the worst forms
appraiser is likely to commit during perfor- of child labour, according to the ILO ?
mance appraisal process ? (a) All forms of slavery or practices similar
(a) Rigor Martis Syndrome to slavery.
(b) Central Tendency (b) Procuring or offering a child for prosti-
(c) Recency Vs. Primacy effect tution or pornography.
(d) Halo effect (c) Using, procuring or offering of a child
Codes : for illicit activities such as trafficking.
(1) (a), (b) and (c) (2) (b), (c) and (d) (d) Work likely to harm the health, safety
(3) (a), (c) and (d) (4) (a), (b) and (d) or morals of children.
Codes :
to the Trade Unions Act, 1926 are correct ? (1) Only (a) and (b)
(a) The Act gives the definition of a trade (2) Only (a) and (c)
union. (3) Only (b), (c) and (d)
(4) (a), (b), (c) and (d)
ANSWERS
1. (3) 2. (1) 3. (2) 4. (3) 5. (3) 6. (4) 7. (2) 8. (2) 9. (3) 10. (2)
11. (1) 12. (4) 13. (4) 14. (3) 15. (4) 16. (1) 17. (3) 18. (4) 19. (1) 20. (1)
21. (2) 22. (3) 23. (2) 24. (2) 25. (2) 26. (4) 27. (1) 28. (4) 29. (3) 30. (3)
31. (1) 32. (1) 33. (3) 34. (3) 35. (3) 36. (2) 37. (4) 38. (4) 39. (3) 40. (3)
41. (3) 42. (4) 43. (4) 44. (1) 45. (2) 46. (2) 47. (2) 48. (1) 49. (2) 50. (2)
51. (4) 52. (3) 53. (1) 54. (2) 55. (1) 56. (4) 57. (1) 58. (3) 59. (*) 60. (2)
61. (1) 62. (4) 63. (1) 64. (2) 65. (3) 66. (1) 67. (4) 68. (4) 69. (4) 70. (4)
71. (1) 72. (3) 73. (4) 74. (3) 75. (4)
* All options are wrong.

July, 2016
PAPER-II
all the questions.
1. Which of the following statements are true æ 2n ö

about Herbert A. Simon’s decision making (1) r = n ç + (n - 1) ÷
è 2 ø
process ?
a. Decision-making process involves intel- æ 2n ö
(2) r = n ç - (n + 1) ÷
ligence, design and choice activities. è 2 ø
b. Decision-making involves choice be- æ 2n ö
tween alternative plans of action. (3) r = n ç - 1÷
è 2 ø
c. Bounded rationality has no signifi-
æ n ö
cance in decision-making process. (4) r = n ç 2 + 1÷
d. Satisficing model brings about a balance è 2 ø
between individual and organisational 4. Match List ‘A’ with List ‘B’ and choose the
value judgement in decision making right answer by using the codes given :
process.
List–A List–B
(1) a and b are only true.
i. Staffing a. Motivation
(2) a and d are only true.
ii. Planning b. Training
(3) a, b and c are true.
iii. Directing c. Forecasting
(4) a, b and d are true.
iv. Controlling d. Comparison of
2. Which of the following statements about Performance
communication is/are either true or false ? Codes :
a. Gang plank theory of Henry Fayol is an i ii iii iv
example of vertical communication.
(1) a b c d
b. Encoded messages are not always de-
(2) b c a d
coded effectively because of different
fields of organism. (3) c b d a
(4) d b c a
c. ‘Filtering’ is not an intervention which
vitiates communication. 5. Which of the following pair is correctly
d. ‘Grapevine’ communication moves matched ?
faster than formal communication. (1) F.W. Taylor – Human Relations Ap-
(1) a and c are true; b and d are false. proach
(2) a and d are true; b and c are false. (2) Henry Fayol – Universality of Manage-
(3) b and d are true; a and c are false. ment
(4) a, b and c are true; and d is false. (3) Elton Mayo – Psychological Approach
(4) M. Parker Follet – Scientific Manage-
3. Which of the following is the correct formula
ment
for calculating the direct group relations of
‘span of control’ as given by V.A. Garicuna?
6. Read the following and mark your answer (1) Both (A) and (R) are wrong.
according to the answer code given below : (2) (A) is right and (R) is wrong.
Wage incentive plans have the following (3) Both (A) and (R) are right and (R) ex-
objects : plains the (A).
(a) Increasing workers morale (4) Both (A) and (R) are right, but (R) does
(b) Lowering unit cost not explain the (A).
(c) Lowering capital cost 9. Arrange the following steps in disciplinary
(d) Lowering depreciation charges procedure in their right order :
(a) Framing and issue of charge sheet
Code :
(1) a & d are correct. (b) Domestic enquiry
(c) Preliminary enquiry
(2) a & c are correct.
(3) a & b are correct. (d) Reporting of misconduct to disciplin-
ary authority
(4) c & d are correct.
(e) Notice of enquiry
7. Match the following selection errors (List –
(f) Findings of enquiry officer
I) with their descriptions (List – II)
(g) Examination of evidences
List – I List – II (h) Closure
a. True negative i. Selection score is (1) d, e, a, c, b, g, h, f
high; performance (2) d, c, a, e, b, g, h, f
score is low.
(3) d, e, a, c, b, g, f, h
b. True positive ii. Both selection and
(4) d, a, c, e, b, g, f, h
performance scores
are low. 10. Who among the following is associated
with the types of personnel department such
c. False negative iii. Selection score is
as independent, integrated; staff-coordi-
low; performance
nated and split function categories ?
score is high.
d. False positive iv. Both selection and (1) Dale Yoder
performance scores (2) Dale S. Beach
are high. (3) Richard P. Calhoon
Codes : (4) Dalton E. McFarland
i ii iii iv 11. Assertion (A) : Chronological age is rather
(1) ii iii iv i crude measure of time since birth which can
(2) ii iv iii i hide a multitude of individual differences
(3) iv i ii iii in vigour, energy, enthusiasm, fitness, and
so on. However, cognitive age could be a
(4) iii ii iv i
facet of personality related to openness to
8. Assertion (A) : Competency based job analy- experience.
sis describing jobs in terms of measurable,
Reason (R) : Consumer psychology provides
observable, and behavioural competencies
evidence that cognitive age is a much better
is currently gaining importance.
guide to people’s buying habits, leisure pur-
Reason (R) : Re-engineering redesigns the suits, and so on than chronological age.
business process in such a manner that
Codes :
vsmall multi-disciplinary self-managing
teams get the task done together through (1) (A) is true, (R) is not true.
multi-skilled competencies. (2) (A) and (R) both are true. (R) explains
(A).
(3) (A) and (R) both are true. (R) does not c. All are rating errors.
explain (A). d. None are recruitment errors.
(4) (A) is not true, (R) is true. Codes :
12. Assertion (A) : Each role must have enough (1) b is true, d is false.
stressers which may help the role occupant (2) a is false, c is true.
to stretch himself/herself to meet the chal- (3) c is true, a is false.
lenge. In the role where the scope is limited
(4) c and d are true, a and b are false.
to routine work, the role occupants do not
perceive any challenge. 15. Which of the following methods of training
is also known as ‘socio-drama’ or ‘psycho-
Reason (R) : While every role has some rou-
drama’?
tine elements, challenge can also be incorpo-
(1) Strategic planner
rated into every role. However, the challenge
should not exceed an optimal limit, other- (2) Mirroring
wise it may produce dysfunctional stress, (3) Apprenticeship
resulting in poor performance or damage to (4) Role-playing
the health of the employee in the long run. 16. Consider the following :
Codes : a. Structural Analysis
(1) (A) and (R) both are true, (R) does not b. Interaction Analysis
explain (A). c. Life position Analysis
(2) (A) and (R) both are true, (R) explains d. Environmental Analysis
(A). e. Dispositional Analysis
(3) (A) is true, (R) does not explain (A). f. Coping Behaviour Analysis
(4) (A) is not true, (R) explains (A). Which among the above are the components
13. A situation which refers to the consequences of Dr. Eric Berne’s Transactional Analysis
that different conflict handling strategies Theory ?
may have antecedent conditions. It may ei- (1) c, d and e (2) a, c and e
ther resolve the conflict or make for future (3) a, b and c (4) b, c and e
conflict. 17. FIRO-B was developed by William Schutz
This may be termed as : in late 1950s, and is based on the theory of
(1) Behavioural view of conflict interpersonal relations.
(2) Conflict containment strategy FIRO-B stands for :
(3) Conflict Aftermath (1) Fundamental Interpersonal Response
(4) Conflict Manifestation in organisations – Behaviour
14. Following are the probable errors commit- (2) Feelings in Interpersonal Relations
ted during organizational processes : Openness – Behaviour
(i) leniency or severity error (3) Fellow Interpersonal Response in
(ii) primacy and recency effects Organisation – Behaviour
(iii) Halo effect (iv) Spill over effect (4) Fundamental Interpersonal Relations
(v) Status effect (vi) Perceptual set Orientation – Behaviour
18. Blake and Mouton proposed famous mana-
Which of the following statements is/are
gerial Grid with ‘task orientation’ and
true/false ?
‘people orientation’ as two independent
a. (i), (ii), (iii) are recruitment errors. dimensions.
b. (i), (ii), (iii) are recruitment errors and
Identify the correct numerical denotions of
(iv), (v) and (vi) are rating errors.
the managerial styles given below :
a. Team management Codes :

b. Impoverished management a b c
c. Country club management (1) iii ii i
d. Middle of the road management (2) i ii iii
e. Authority compliance (3) iii i ii
Codes : (4) i iii ii
a b c d e 21. According to Sidney and Beatrice Webb,
(1) 9, 9 1,1 1, 9 5, 5 9, 1 which of the following methods is/are em-
(2) 9, 1 1, 1 1, 9 9, 9 5, 5 ployed by the trade unions to achieve their
(3) 1, 1 5, 5 9, 9 1, 9 9, 1 objectives ?
(4) 9, 9 1, 1 5, 5 1, 9 9, 1 a. Mutual Insurance
b. Protective Labour Legislation
19. Assertion (A) : From its inception, the study
of organisational change has noted the fact c. Collective Bargaining
that many participants respond with (1) Only a (2) a and b
dogged resistance to altering the status quo. (3) a, b and c (4) Only b
Since the industrial revolution began, work- 22. The first of May in 1927 was for the first
ers have at times sought, occasionally in time celebrated as ‘Labour Day’ at
extremely violent fashion, to block the in- (1) Calcutta (2) Bombay
troduction of new technology.
(3) Madras (4) Ahmedabad
Reason (R) : Such behaviour may be either
23. Who started the publication of the Bengali
overt or covert. Overt resistance may take
Weekly, titled ‘Janawani’ in Calcutta ?
the form of employees deliberately failing to
do the things necessary for successful (1) Shapurji Bengalee
change or simply being unenthusiastic (2) M.N. Roy
about the change. (3) Muzaffar Ahmad
Covert resistance can be more detrimental (4) Diwan Chamanlal
to change than open resistance because it is 24. According to the Second National Commis-
harder to identify and eliminate. sion on Labour, ‘check-off system’ must be
Codes : made compulsory for members of all regis-
(1) (A) is true, (R) is false. tered trade unions in establishments em-
(2) (A) is true, (R) explains (A). ploying :
(3) (A) and (R) both are false. (1) 150 workers
(4) (A) is true, (R) does not explain (A). (2) 200 workers
20. The conceptual foundation of OB are an- (3) 250 workers
chored in the Behavioural Sciences of Psy- (4) 300 workers
chology, Anthropology, and Political Sci- 25. Under which type of Union Security, an em-
ence. Match the Behavioural Science Source ployee in the bargaining unit is obliged to
(List – B) of the OB Topics (List – A). pay dues to the union in return for the col-
List – A List – B lective bargaining service which it is ren-
OB Topics Relevant Behavioural dering to him, although he does not join the
Science Source union ?
a. Interpersonal i. Political (1) Preferential union shop
styles Science (2) Closed shop
b. Societal Culture ii. Anthropology (3) Agency shop
c. Power & Politics iii. Psychology (4) Union shop
26. The Ahmedabad Textile Labour Association Codes :
is an example of (1) a and b (2) c and d
(1) Craft Union (3) e and f (4) c and e
(2) Staff Union 30. Which of the following statements relating
(3) Industrial Union to the participation of workers in Manage-
(4) General Union ment Bill, 1990 is not correct ?
27. Which of the following is a non-statutory (1) The Bill was introduced in the Lok
adhoc body ? Sabha on the 30th May, 1990.
(1) Central Implementation and Evaluation (2) The introduction of this Bill was the first
Committee comprehensive legislative effort to-
(2) Central Committee on Labour Research wards the promotion of workers’ par-
(3) Committee on Conventions ticipation in management in India.
(4) Wage Board (3) The Bill envisaged a three-tier system
of workers’ participation in manage-
28. Which of the following statements relating ment.
to the First National Commission on Labour
(4) The Bill provided for the appointment
is correct ?
of Inspectors and specified penalties for
(1) The Commission submitted its report in
violating the provisions of the Act when
1968.
enacted.
(2) The Commission recommended that it
31. Which of the following is the prescribed
would not be desirable to make union
qualification for appointment of a judge of
recognition compulsory under a Cen-
an Employees’ Insurance Court under the
tral Law.
Employees’ State Insurance Act, 1948 ?
(3) The Commission recommended that it
(1) A judge of the High Court.
would be desirable to make union rec-
ognition compulsory under a Central (2) Any presiding officer of a labour court
Law. with five years of experience.
(4) The Commission recommended that a (3) Any presiding officer of an Industrial
trade union seeking recognition should Tribunal with three years of experience.
have at least 20 percent membership of (4) Any person who is or has been a judi-
the workers of an establishment. cial officer or is a legal practitioner of
five years standing.
29. There exists hurdles on the way of healthy
growth of collective bargaining in India. 32. Which of the following is true relating to
Which among the following are not the appointment of Site Appraisal Committee
hurdles of collective bargaining ? under the Factories Act, 1948 ?
a. Conditions of workers (1) State Government may appoint it.
b. Promotion of lasting industrial peace (2) Both State Governments and Central
c. Voluntariness in recognition of Union Government can appoint it.
d. Ineffective procedure for determination (3) State Governments may appoint it in
of representative union. consultation with the Central Govern-
ment.
e. Provision for elaborate Adjudication
machineries. (4) Central Government may appoint a
Committee for each State in consulta-
f. Comprehensive coverage of labour
tion with the respective State Govern-
laws.
ments.
33. Social security provided by a ‘means test’ is 36. An employee working in an organisation
called draws a salary of Rs. 20,000/- per month.
(1) Need based assistance What is the amount of bonus that he shall
(2) Social assistance be paid at the minimum rate of 8.33% under
(3) Social assurance the payment of Bonus Act, 1965 ?
(4) Mutual assistance (1) Rs. 20,000 (2) Rs. 8,333
(3) Rs. 7,000 (4) Rs. 3,500
34. Which of the following statements are true
relating to payment of equal pay for equal 37. Under the provisions of the Payment of
work both for men and women ? Wages Act, 1936, for which of the following
a. ILO adopted equal remuneration con- organizations, the Central Government is
vention No 100 in 1951 the appropriate Government ?
b. India ratified ILO’s Equal Remunera- a. Railways and Air Transport
tion Convention 100 in the year 1956 b. Port and Docks
c. Provisions relating to equal pay for c. Mines and Oilfields
equal work for both men and women d. Public Sector banks
are provided under Article 42 of the In- Codes :
dian Constitution (1) a and c only (2) b and d only
d. The Equal Remuneration Ordinance (3) a, b and c only (4) a, b, c and d
was promulgated on 26th September, 38. With regard to the reference of industrial dis-
1975 putes, where State Government is the ap-
(1) a and d are correct. propriate Government to different authori-
(2) b and c are correct. ties, which of the following statements is
(3) a, c and d are correct. false ?
(4) a, b and d are correct (1) Refer the dispute to a Board for promot-
35. Match the provisions provided under Col- ing settlement thereof.
umn-A with the respective legislations un- (2) Refer the dispute relating to any matter
der which they are covered under Column – specified under second schedule to a
B: labour court for adjudication.
Column–A Column–B (3) Refer the dispute relating to any matter
a. Compulsory i. The Payment of specified in the Second Schedule or
Insurance Gratuity Act, 1972 Third Schedule to a Tribunal for adju-
dication.
b. Scheduled ii. The Industrial
(4) Refer the dispute relating to any matter
Employment Disputes Act, 1947
specified either in Second Schedule or
c. Protected iii. The Maternity
Third Schedule to the National Tribu-
workman Benefit Act, 1961 nal for adjudication.
d. Medical Bonus iv. The Minimum
39. Which of the following are ad-hoc bodies
Wages Act, 1948
under the Industrial Disputes Act, 1947 ?
Codes : a. National Tribunal
a b c d b. Labour Court
(1) i ii iii iv c. Industrial Tribunal
(2) iv iii ii i
d. Court of Inquiry
(3) ii i iv iii e. Grievance Redressal Committee
(4) i iv ii iii
(1) a, c and d (2) a, d and e
(3) d and e (4) a and d
40. What is the current wage ceiling per month (4) Market of highly skilled workers exhibit
for a person employed on a wage or salary systematic periods of booms and busts.
to be considered as an employee under the 44. Who among the following viewed unem-
Payment of Bonus Act, 1965 ? ployment as outcome of the disorganization
(1) Not exceeding ten thousand rupees of economic system ?
(2) Not exceeding twenty-one thousand ru- (1) Keynes (2) Lioneal Edie
pees (3) Karls Pribram (4) Fairchild
(3) Not exceeding eight thousand rupees 45. Which among the following conditions will
(4) Not exceeding eighteen thousand ru- not lead to decrease in supply of labour :
pees (1) An increase in the wages paid in other
41. Assertion (A) : Competitive labour markets occupations for which the worker in a
can be efficient. particular market are qualified.
Reason (R) : labour market participants in (2) An increase in the income other than
search of their own selfish goals attain such employment.
conditions. (3) An increase in the people’s preferences
Codes : for work in relation to leisure.
(1) (A) is right and (R) explains (A). (4) A worsening of non-wage aspects of job.
(2) (A) is right but (R) does not explain (A). 46. The conceptual framework of Labour Wel-
(3) (A) is wrong and (R) is right. fare is contained in various theories of
(4) Both (A) and (R) are wrong. Labour Welfare. In the names of the theories
given below, pick the wrong ones :
42. Match the following situations with effects :
a. The Trusteeship Theory
List – A List – B
b. The Placating Theory
(Situations) (Effects)
c. The Need Theory
a. Isoquant is linear. i. Smaller the size of
substitution d. The Friendship Theory
b. Isoquant is right ii. Perfect e. The Public Relations Theory
angled. substitutes f. The Functional Theory
c. Isoquant is iii. Perfect Codes :
more curved. complements (1) a and b (2) c and d
Codes : (3) e and f (4) b and e
a b c 47. Match the following :
(1) i ii iii Content Principles of
(2) iii ii i Labour Welfer
(3) ii iii i a. Labour Welfare i. Principle of
(4) iii i ii measures cannot efficiency
be a substitute for
43. Which of the following statements is not cor- wages.
rect ?
b. Industries have an ii. Principle of
(1) Labour market equilibrium assumes
obligation towards Re-persona-
that markets adjust instantaneously.
employees to look lisation
(2) Equilibrium always prevails in labour after their welfare.
market. c. There exists rela- iii. Principle of
(3) Wages and employment change swiftly tionship between Adequacy of
from old equilibrium level to new equi- welfare and wages
librium level. efficiency.
d. The development iv. Principle of ing Articles does not contain provisions for
of human persona- social responsi- Labour Welfare :
lity has to be a goal bility of industry (1) Article 38 (2) Article 39
of industrial welfare. (3) Article 40 (4) Article 41
Codes : 50. There exist provisions of statutory welfare
a b c d facilities under various labour legislations.
(1) i ii iii iv Match them :
(2) iv iii ii i Provisions Act
(3) iii iv i ii a. Crèche, if emplo- i. The Mines Act,
(4) ii i iv iii ying more than 1952
30 women workers
48. Assertion (A) : The social concept of welfare
implies the welfare of man, his family and b. Crèche, if employ- ii. The Factories
his community. ing 50 or more Act, 1948
women workers
Reason (R) : All the three work together, or
c. Canteens, if emplo- iii. The Motor
individually supplement one another, in a
ying 150 or more Transport
three-dimensional approach, each serving
workers Workers Act,
as ends and means.
1961
Codes : d. Canteens, if em- iv. The Plantations
(1) (A) is wrong and (R) is correct. ploying 100 or Labour Act,
(2) (R) does explain (A) properly. more workers 1951
(3) (R) does not provide proper explanation Codes :
of (A). a b c d
(4) Both (A) and (R) are wrong. (1) ii i iv iii
49. The Directive Principles of state policy, as (2) i ii iii iv
Contained in the Constitution of India, con- (3) iv iii ii i
tains Articles incorporating provisions for
(4) iii i ii iv
Labour Welfare. Which among the follow-
ANSWERS
1. (4) 2. (3) 3. ( 1) 4. (2) 5. (2) 6. (3) 7. (2) 8. (3) 9. (2) 10. (4)
11. (3) 12. (2) 13. (3) 14. (4) 15. (4) 16. (3) 17. (4) 18. (1) 19. (2) 20. (1)
21. (3) 22. (2) 23. (3) 24. (4) 25. (3) 26. (3) 27. (4) 28. (3) 29. (1) 30. (1)
31. (4) 32. (1) 33. (2) 34. (1) 35. (4) 36. (3) 37. (1) 38. (4) 39. (4) 40. (2)
41. (1) 42. (3) 43. (2) 44. (2) 45. (3) 46. (2) 47. (3) 48. (2) 49. (3) 50. (1)
July, 2016
PAPER-III
1. Assertion (A) : A decline in the role of the (2) Seventy-five percent of the number of
state in economic activity need not neces- days on which the establishment was
sarily lead to decline in its regulatory/su- in operation.
pervisory role in labour and industrial rela- (3) One hundred days during the period
tions. the establishment was in operation.
Reason (R) : When private sector becomes (4) Sixty-seven percent of the number of
engine of growth, the state may need to play days on which the establishment was
a much stronger role in ensuring a balance in operation.
between the rights of both labour and man-
4. Assertion (A) : The organisational effective-
agement.
ness should be measured in terms of the
Codes : entire cycle of the input-process-output sys-
(1) Both (A) and (R) are wrong. tem.
(2) Both (A) and (R) are right and (R) ex- Reason (R) : Organisation shall depend on
plains (A). its capacity to adjust with the environment
(3) (A) is right and (R) is wrong. while holding together its internal sub-sys-
(4) (A) is wrong and (R) is right. tems.
2. A company wants to determine the staffing Codes :
level required to sustain and improve its (1) (A) is right and (R) is wrong.
sales volume. Out of the following methods (2) Both (A) and (R) are right, but, (R) does
which will be used for forecasting the per- not explain the (A).
sonnel required for the purpose ? (3) (A) is wrong and in attempting to prove
a. Trend analysis a wrong assertion, the (R) also is wrong.
b. Ratio analysis (4) Both (A) and (R) are right; and (R) ex-
c. Scatter plot plains the (A).
Codes : 5. Which of the following statements relating
(1) Only b (2) Only c to the court of inquiry is not correct ?
(3) Only b and c (4) a, b and c (1) The court may consist of one or more
3. As per the provisions of the Payment of Gra- persons.
tuity Act, 1972, an employee working in a (2) The court is required to submit its re-
seasonal establishment shall be deemed to port within a period of three months
be in continuous service if he has served for from the commencement of inquiry.
not less than : (3) The court of inquiry is an ad-hoc body.
(1) One hundred twenty days during the (4) The court of inquiry is primarily a fact-
period the establishment was in opera- finding machinery.
tion.
6. Which of the following statements is/are List – I List – II

not correct as per the provisions of the In- a. Composite express- i. Job
dustrial Disputes Act, 1947 ? ion of the attitudes satisfaction
a. A Labour Court cannot adjudicate on of various indivi-
disputes relating to discharge and dis- duals employed by
missal. an organisation.
b. An Industrial Tribunal can adjudicate b. Result of various atti- ii. Morale
on disputes relating to discharge and tudes, the individual
dismissal. holds towards his job
c. An Industrial Tribunal can adjudicate related factors and life.
on disputes relating to hours of work c. Group phenomena. iii. Morale
and rest intervals. d. Never an average of iv. Morale
d. A Labour Court cannot adjudicate on the individual attitude.
disputes relating to leave with wages Codes :
and holidays.
a b c d
(1) Only a (2) a and c
(1) ii i iii iv
(3) a, b and c (4) Only d
(2) i ii iii iv
7. Who corrected the difficulties of Taylor’s dif- (3) iii iv ii i
ferential Piece Rate system of wages ?
(4) iv iii i ii
(1) Henry Towne (2) H.L. Gantt
10. Which of the following is not true relating
(3) Frank and Lillian Gilberhts
to the Employees Provident Fund Appellate
(4) Newmann and Sumner Tribunal under the Employees’ Provident
8. Which of the following statements relating Fund and Miscellaneous Provisions Act,
to the trade unions under the Trade Unions 1952 ?
Act, 1926 are not true ? (1) A Tribunal shall consist of one person
a. Every registered trade union has to sub- only.
mit a half yearly return to the Registrar (2) A person so appointed is designated as
of Trade Unions. presiding officer.
b. Any person who has attained the age of (3) A District Judge can be appointed as the
eighteen can become an office bearer of Presiding officer.
the trade union. (4) The term of office of the Presiding Of-
c. Retired or retrenched employees of an ficer shall be for a term of four years from
organisation holding an office in a trade the date he assumes office or attains the
union shall not be construed as an out- age of sixty five, whichever is earlier.
sider.
11. The provisions relating to Voluntary Arbi-
d. The number of outsiders working as of- tration was included in the Industrial Dis-
fice bearers in registered trade union putes Act, 1947 through an amendment in
functioning other than in an unorgan- the year :
ised section shall be limited to eight.
(1) 1948 (2) 1956
(1) a and b (2) a and d
(3) 1962 (4) 1971
(3) b and c (4) a and c
12. Match the following experiments (List – I)
9. Industrial Morale, it is viewed, is related with the pioneers who are associated
to job satisfaction but both cannot be (List – II) with them :
used interchangeably. Match List–I with List
– II :
List – I List - II high quality and task flexibility; then supe-
a. Case of Schimdt i. George A. rior individual performance will result;
Pennock which would lead to superior organisational
b. Ahmedabad ii. F.J. Roethlisberger performance” ?
Experiment (1) Harvard model
c. Illumination iii. A.K. Rice (2) Warwick model
Experiment (3) David Guest model
d. Bank wiring iv. F.W. Taylor (4) John M. Storey model
observation test 16. If there is any dispute regarding the subsis-
room experiment tence allowance payable to a workman, then
Codes : to which of the following it can be referred
a b c d for a decision under the Industrial Employ-
(1) iv iii ii i ment (Standing Orders) Act, 1946 ?
(2) iv i iii ii (1) Labour Court constituted under the In-
dustrial Disputes Act, 1947.
(3) iii i iv ii
(2) Industrial Tribunal constituted under
(4) iv iii i ii
the Industrial Disputes Act, 1947.
13. Which of the following is not the prescribed (3) Certifying officer appointed under the
hours and periods of work for a child under Industrial Employment (Standing Or-
the Child Labour (Prohibition and Regula- ders) Act, 1946.
tion) Act, 1986 ?
(4) The enquiry officer conducting enquiry
a. No child shall work for more than three against the concerned workman.
hours before he has had an interval for
rest for half an hour in any day. 17. As per the Provisions of the Minimum Wages
Act, 1948, while revising or fixing minimum
b. The period of work should be so ar-
rate of wages for which of the following cat-
ranged that, inclusive of his rest inter-
egories, different rates of wages may not be
val, it shall not spread over more than
fixed ?
six hours in any day.
a. different scheduled employments
c. No child shall be permitted to work be-
b. adults and adolescents
tween 8 p.m. and 7 a.m.
d. No child shall be required or permitted c. children and apprentices
to work overtime. d. different localities
(1) a and b (2) a and c e. men and women
(3) b and c (4) c and d (1) b and c (2) e only
14. Who among the following is the first Indian (3) c and e (4) c only
to become the President of the International 18. Who among the following advocated the
Labour Conference ? Philosophy of “Courts to Codes’ in India ?
(1) Shri Jagjivan Ram (1) G.L. Nanda (2) Jagjivan Ram
(2) Sir Atul Chatterjee (3) V.V. Giri (4) J.L. Nehru
(3) Dr. Nagendra Singh 19. Assertion (A) : Increase in the number of
(4) Shri Ravindra Verma wage earners led to emergence of two sets of
15. Which model of H.R.M. propagates that, “if people in the society, the wage earners and
integrated set of HRM practices is applied wage providers. Karl Marx termed these two
in a coherent fashion, with a view to achiev- classes, opposed to each other, as proletariat
ing the normative goals of high commitment, and bourgeoisie and causative factor for the
emergence of trade unions.
Reason (R) : After the industrial revolution, c. On his resignation

concentration of free labourers under one d. On his disablement due to accident or
roof took place on a large scale. In order to disease
resist the exploitation of employers, the (1) c and a (2) a and b
labourers had no other alternative but to (3) b and d (4) c and d
make a common stand.
23. The book “The Machine that changed the
Codes : world” which brought the Lean Production
(1) Both (A) and (R) are wrong. and Lean Thinking concept to limelight was
(2) (A) is right and (R) is wrong. authored by :
(3) (A) is wrong but (R) is right. (1) James P. Womack, Daniel T. Jones and
(4) Both (A) and (R) are correct and (R) ex- Daniel Roos
plains (A). (2) Christopher A. Barlett and Sumantra
20. Arrange the following phases of Hawthorne Ghosal
experiments in the right order : (3) R.M. Kanter, B.A. Stein, T.D. Jick
(a) Mica Splitting Test Room (4) K.J. Euske and Steven R. Player
(b) Bank Wiring Observation Test Room 24. Which of the following is true relating to
(c) Experiments on Illumination payment of subsistence allowance to an
(d) Relay Assembly Test Room employee suspended pending enquiry for
(e) Personnel Counselling the first ninety days under the provisions of
(f) Mass Interviewing Programme the Industrial Employment (Standing Or-
ders) Act, 1946 ?
Codes :
(1) Sixty percent of the wages the workman
(1) (c), (d), (a), (f), (b), (e)
was entitled to immediately preceding
(2) (c), (b), (a), (f), (d), (e) the date of suspension.
(3) (c), (a), (b), (f), (e), (d) (2) Seventy-five percent of the wages the
(4) (c), (d), (f), (b), (a), (e) workman was entitled to immediately
21. Which of the following statements about preceding the date of suspension.
quality is not true ? (3) Fifty percent of the wages the workman
(1) Quality is all about meeting or exceed- was entitled to immediately preceeding
ing customer expectation. the date of suspension.
(2) Performance, durability, services avail- (4) Thirty-three percent of the wages the
able and ease of repair are attributes of workman was entitled to immediately
quality. preceeding the date of suspension.
(3) W. Edwards Deming and Joseph M. 25. What is the current amount of medical bonus
Juran are quality gurus who taught the paid to a women employee under the Ma-
Japanese on quality issues. ternity Benefit Act, 1961 ?
(4) Statistical analyses has no place in To- (1) Rs. 5,000 (2) Rs. 3,500
tal Quality Management. (3) Rs. 4,000 (4) Rs. 2,500
22. As per the provisions of the Payment of Gra- 26. Which set of strategies do not come under
tuity Act, 1972, under which of the condi- the TQM ?
tions an employee shall be entitled for pay- (1) Customer Orientation and Strategic
ment of gratuity even if he/she has not ren- Leadership
dered five years of continuous service ?
(2) Business Process Re-engineering and
a. On his retirement Lean Thinking
b. On his death
(3) Corporate Governance and Corporate (1) 1948 (2) 1956
Social Responsibility (3) 1962 (4) 1991
(4) Learning, Experimentation and Con- 31. Which of the following is not a part of Peter
tinuous Improvement M. Senge’s Five Disciplines ?
27. Arrange the following developments in In- (1) Systems Thinking
dustrial relations philosophy in the order (2) Personal Mastery
in which it occurred from the latest to the (3) Trust
earliest.
(4) Shared Vision
(a) Socialistic orientation
32. Match the following doctrines (List – I) with
(b) Kochan, Katz and McKersie’s strategic
the defences used by the employer to reject
choice orientation
the claims of compensation in case of em-
(c) Marxian orientation ployment injury (List – II) :
(d) Capitalistic orientation
List – I List - II
(e) Dunlop’s system orientation
a. Doctrine of i. Compensation
(1) (d), (a), (e), (c), (b)
Assumed Risk will be paid only if
(2) (b), (e), (a), (c), (d) accident is caused
(3) (d), (c), (a), (e), (b) by personal negli-
(4) (b), (a), (c), (e), (d) gence of employer.
28. As per the provisions of the Industrial Em- b. Doctrine of ii. Accidents are to be
ployment (Standing Orders) Act, 1946, for Contributory expected as a
which of the following organisations the Negligence possibility at the
Central Government is not the appropriate workplace.
Government ? c. Doctrine of iii. Accidents
(1) Railways (2) Major Ports common do happen
(3) Banks (4) Mine and Oilfields employment because of the
29. Examine the formula of dynamics of change and fellow fault of the
given below; where ‘C’ stands for change; servant’s workman.
‘A’ represents the level of dissatisfaction responsibility
with the Status Quo; ‘B’ indicates the clear d. Doctrine of iv. Accidents
desired goal; D refers to the practical first Unknown may happen due
step; and ‘X’ stands for cost of change. Person’s to the workers’
responsibility colleagues.
Formula C = (ABD) > X
Considering the formula, if A and B have Codes :
high values but D is zero, what would be a b c d
the result ? (1) ii i iii iv
(1) Change will occur slowly. (2) ii iii iv i
(2) Change will not occur as the product of (3) ii iii i iv
ABD would be zero. (4) iii i iv ii
(3) Change will occur as the cost of change 33. The Constitution of India deals with distri-
will be less. bution of legislative powers between Cen-
(4) Change will not occur as the cost of tral and State legislatures. The provision is
change will be more. contained under which Article of the Con-
stitution of India ?
30. The Second Industrial Truce Resolution was
passed in the year _____. (1) Article 244 (2) Article 245
(3) Article 246 (4) Article 247
34. Each labour legislation, which has been en- (1) a and c (2) b and c
acted, is based on certain underlying prin- (3) c and d (4) only c
ciples.
37. Assertion (A) : Trade Union has the poten-
Match the legislations with underlying prin- tial to increase inflation.
ciple :
Reason (R) : Unions persistently demand
upward revision of wages and thereby en-
(Name of the (Underlying
hance purchasing power of labour.
Legislation) Principle)
a. Factories Act, i. Principle of Codes :
1948 Regulation (1) Both (A) and (R) are right; (R) does not
b. Equal Remune- ii. Principle of Social explain (A).
ration Act, 1976 Security (2) Both (A) and (R) are wrong.
c. Industrial Em- iii. Principle (3) (A) is right; and (R) explains (A).
ployment of Protection (4) (A) is wrong and (R) is right.
(Standing Orders) 38. As per the force field analysis, change will
Act, 1946 take place when
d. Employees iv. Principle of (1) Driving force equals the restraining
Compensation Social Justice force
Act, 1923 (2) Driving force and the restraining force
Codes : correlate with one another
a b c d (3) Driving force is stronger than restrain-
(1) iii iv i ii ing force
(2) i ii iii iv
(4) Restraining force is stronger than driv-
(3) iv iii ii i ing force
(4) i iii ii iv
39. Match the authors (List – I) with the semi-
35. The first craft union was organized by shoe- nal works they have published (List – II) :
makers in Philadelphia, USA in the year :
(1) 1786 (2) 1788
a. Eric Berne i. The Fifth
(3) 1792 (4) 1806
Discipline
36. Read the following statements :
b. Thomas A. Harris ii. The Games
Unions demand high wages to counter in-
flationary pressures on the economic con- People Play
ditions of the working class. Higher wages c. Peter Senge iii. The Future Shock
enhance the purchasing power of the work- d. Alwin Toffler iv. I am OK; you are
ers, thereby raising inflation. OK
Which of the following inferences are Codes :
wrong? a b c d
a. Unions have the sole purpose of improv- (1) ii iv i iii
ing the economic conditions of work- (2) ii i iii iv
ers.
(3) ii i iv iii
b. Enhanced wages increase the purchas-
(4) iv ii i iii
ing power of workers.
c. Inflation and purchasing power are 40. The I.L.O. set forth few fundamental prin-
negatively correlated. ciples at the time of its inception. These
d. Inflation drives unions to go for de- principles are embodied in the form of
manding higher wages.
Charter of Freedom of Labour. These prin- Reason (R) : Social legislation embraces ac-
ciples were again reaffirmed at its General tion by government authority to eliminate
Conference along with other Charter and objectionable elements of the socio-eco-
are popularly known as Philadelphia nomic system and provide elements for
Charter. This was done in the year : which the system does not make provision.
(1) 1926 (2) 1942 Codes :
(3) 1944 (4) 1946 (1) (A) is wrong and (R) is correct.
41. Which of the following statements about In- (2) Both (A) and (R) are correct and (R) ex-
dustrial Relations Systems in Multina- plains (A).
tional Corporations is true ? (3) Both (A) and (R) are wrong.
a. North American MNCs attempt to (4) (A) is correct but (R) is wrong.
make their foreign subsidiaries union 44. Which of the following theories of motiva-
free. tion classifies persons as ‘Intrinsically mo-
b. Following their tradition, Japanese tivated’ and ‘extrinsically motivated’ ?
MNCs set up enterprise unions at for- (1) Reinforcement Theory
eign subsidiaries. (2) Alderfer’s ERG Theory
c. West European MNCs believe in (3) Adam’s Equity Theory
organised independent trade unions. (4) Cognitive Evaluation Theory
d. In general MNCs show gradations in
45. What is common to Sir William Garrow’s
the degree of policy of centralisation/
Judgement (1816) in Great Britain; the
decentralisation in the areas of indus-
Philadelphia Cordwainers’ case (1806) in
trial relations.
U.S.A.; and Madras Labour Union case
(1) a, b and c (1921) in India ?
(2) b, c and d (1) Declared the combination of workers
(3) a and b only legal.
(4) a, b, c and d (2) Declared the combination of workers il-
42. Examine the following statements relating legal.
to Induction and identify those which are (3) Declared the combination of workers
either true or false : quasi-legal.
a. Induction today is renamed as Em- (4) Declared the combination of workers
ployee Orientation Programme. ethical but not legal.
b. It is also known by the term ‘On board- 46. Which of the following is not true relating
ing’. to prohibition of strikes in public utility ser-
c. It is for the purpose of socializing the vices under the Industrial Disputes Act,
new employees. 1947 ?
d. Informal induction is better than formal (1) Without giving to the employer notice
induction. of strike within six weeks before strik-
(1) a, b are true; c, d are false. ing.
(2) b, c are true; a, d are false. (2) Before the expiry of the date specified
(3) a, b, c are true; d is false in the notice of strike.
(4) a, b, d are true, c is false (3) Within fourteen days of giving a notice
43. Assertion (A) : All labour legislations are of strike.
social in character. (4) During the pendency of any concilia-
tion proceedings and ten days after
conclusion of such proceedings.
47. Match the following : f. Analyse and interpret the data.

(Title of the Act) (Year of g. Prepare a comprehensive report based
enactment) on the data analysis and interpretation.
a. Clayton Anti Trust Act i. 1914 Codes :
b. Narris-LaGuaradia Act ii. 1932 (1) a, c, e, b, g, d, f (2) d, e, f, c, a, b, g
c. Stewan Anti Trust Act iii. 1890 (3) a, c, b, e, f, g, d (4) d, c, a, b, e, f, g
d. Landrum-Griffin Act iv. 1959 51. In UK, the voluntary arbitration procedure
Codes : was first introduced under the :
a b c d (1) Conciliation Act of 1896
(1) i ii iii iv (2) Industrial Courts Act of 1919
(2) ii iii i iv (3) Employment Protection Act of 1975
(3) iii ii iv i (4) Trade Union and Labour Relations Act
(4) iv i iii ii of 1974
48. The method by which internal wage differ- 52. Which of the following is correct relating to
entials are determined is called payment towards sickness benefit under the
(1) Wage survey Employees’ State Insurance Act, 1948 to an
(2) Wage bargaining eligible employee ?
(3) Job evaluation (1) Fifty percent of wages for a maximum
(4) Wage regulation of ninety five days in a year.
49. When an undertaking is closed down on (2) Seventy percent of wages for a maximum
account of unavoidable circumstances be- of one hundred days in a year.
yond the control of the employer, the com- (3) Seventy percent of wages for a maximum
pensation to be paid to the workmen under of ninety-one days in a year.
the Industrial Disputes Act, 1947 shall not (4) Sixty percent of wages for a maximum
exceed his of seventy eight days in a year.
(1) Average pay for three months 53. Examine the following statements on the line
(2) Average pay for four months and staff and identify the ones which are
(3) Average pay for six months true.
(4) Average pay for five months a. Line and staff concept originated from
50. Benchmarking involves employees learning Military.
and adopting so called “best practices” by b. Line decides and staff assists.
comparing their HRM practices with those c. Personnel role is performed both by line
of other (more successful) organisations. and staff.
Identify the correct sequential steps of Bench- d. The Personnel Department’s role is a
marking. staff function.
a. Indentify HR practices for benchmark- (1) b and d are true.
ing. (2) a, b and d are true.
b. Identify benchmarking partners. (3) b, c and d are true.
c. Constitute a core or a project team to (4) a, b, c and d are true.
handle the benchmarking process. 54. The American Federation of Labour and the
d. Develop action plans to improve HR Congress of Industrial Organisations
strategy and practices. merged in the year :
e. Collect data from each of the bench- (1) 1936 (2) 1948
marking partners. (3) 1955 (4) 1958
55. The lists of injuries deemed to result in Per- 58. Which of the following is true relating to the
manent Total Disablement and Permanent appointment of the Chairman of the State
Partial Disablement are provided in which Advisory Board constituted under the Con-
Schedule of the Employees’ Compensation tract Labour (Regulation and Abolition) Act,
Act, 1923 ? 1970 ?
(1) Schedule – I (2) Schedule – II (1) Labour Commissioner of the State is the
(3) Schedule – III (4) Schedule – IV ex-officio Chairman
56. Assertion (A) : One of the important duties (2) Labour Minister of the State is the ex-
of the modern HR manager is to get things officio Chairman
done through people. He has to bring em- (3) Chairman is appointed by the State Gov-
ployees into contact with the organisation ernment
in such a way that the objectives of both the (4) Chairman is appointed by the State Gov-
groups are achieved.
ernment in consultation with the Cen-
Reason (R) : The cross-cultural, cross-bor- tral Government
der mingling has resulted in the creation of
a new class of people-global citizens with 59. Which of the following statements about the
global attitudes, tastes, and networks. Since awareness positions described below in re-
it unleashes multiple variables, the border- spect of Johari Window Model of Interper-
less world precludes immense complexity- sonal process are correct.
complexity in the environment, in interor- a. Shared and mutually held, public in-
ganisational relationships, in modes of con- formation, feelings, motives etc.
ducting business and in socio-cultural di- b. Hidden information, motives, feelings
versity. etc. known only to the self.
Codes : c. Unsuspected information, feelings, re-
(1) (A) is true, (R) is false. actions, etc. known only to other par-
(2) (A) and (R) both are true, (R) explains ties.
(A). d. Undiscovered potentials and creative
(3) (A) and (R) both are false. reservoir known neither to the self nor
(4) (A) and (R) both are true, (R) does not to others.
explain (A). Codes :
57. Match the following : (1) a, b, c, d refers to Blindspot, Dark, Closed
Machinery/Scheme Year in which and Arena respectively.
es tab lished/ (2) a, b, c, d refers to Arena, Closed,
introduced Blindspot and Dark respectively.
a. Joint Consultative Board of i. 1958 (3) a, b, c, d refers to Arena, Blindspot, Dark
Industry and Labour and Closed respectively.
b. Central Board for Workers’ ii. 1951 (4) a, b, c, d refers to Blindspot, Arena, Dark
Education and Closed respectively.
c. Shop Councils and Joint iii. 1977
60. The nature of employment relations in gen-
Councils eral in India is
d. Unit Councils iv. 1975
(1) Deregulated Competitive
Codes :
(2) Constrained Competitive
a b c d
(1) ii i iv iii (3) Regulated Protective
(2) i ii iii iv (4) Protective Competitive
(3) iv iii ii i 61. The Fish Bone analysis is associated with
(4) iii i iv ii which of the following ?
(1) Quality circles among the following statements is not cor-

(2) Conflict Management rect about monotony curve ?
(3) Performance Appraisal a. The production will fall only in the
(4) Incentive Plan last hours of production.
62. Which of the following are not included un- b. Production will be constant in the ini-
der ‘Wages’ as per the Employees’ Com- tial hours.
pensation Act, 1923 ? c. Fluctuations are noticed after long
a. Travelling allowance hours of work.
b. Any privilege or benefit which is ca- d. Fluctuations occur from beginning un-
pable of being estimated in money der impact of monotony.
c. Value of any travelling concession e. Production falls significantly during
d. Contribution paid by the employer of middle hours of work.
an employee towards any pension or Codes :
provident fund (1) a and b (2) d and e
Codes : (3) b and c (4) c and d
(1) a, b and c (2) b, c and d 67. Under the Provisions of the Contract
(3) a, c and d (4) a, b and d Labour (Regulation and Abolition) Act,
63. Weisbord M.R. (1976) proposed an 1970 if any difficulty arises in giving effect
Organisational Diagnosis Model, which is to the Provisions of the Act, then which of
one of the most popular, straight forward the following is competent to remove the
and easy to use system models. difficulty ?
This model is known as (1) State Government
(1) Out of Box model (2) Central Government
(2) In Box model (3) Labour Courts established under the
(3) Eight Box model Industrial Disputes Act, 1947
(4) Six Box model (4) Central Advisory Board
64. Under the provisions of the Factories Act, 68. Who among the following is not a depen-
1948 the total number of hours of overtime dant under the Employees’ Compensation
in a quarter of a year shall not exceed : Act, 1923 ?
(1) Fifty hours (1) A widower
(2) Fifty-six hours (2) A minor illegitimate son
(3) Sixty hours (3) A daughter-in-law
(4) Forty-eight hours (4) A minor widowed sister
65. Who suggested for setting up of Joint Work- 69. Read the following statement and indicate
ers’ Councils ? where the same was incorporated :
(1) Bombay Committee, 1920 “In a socialist democracy, labour is a part-
(2) Bengal Committee, 1920 ner in the common task of development and
(3) Royal Commission on Labour, 1931 should participate in it with enthusiasm.
There should be joint consultation, work-
(4) Government of India Act, 1935
ers and technicians should, wherever pos-
66. Monotony refers to the undesirable effects sible, be associated progressively in man-
of repetitive work. The monotony curve dis- agement.
tinctly justifies this statement. Which
Enterprises in the public sector have to set Codes :
an example in this respect.” a b c
(1) Industrial Policy Resolution, 1948 (1) i ii iii
(2) Industrial Policy Resolution, 1956 (2) iii ii i
(3) National Commission on Labour Re- (3) iii i ii
(4) ii i iii
port, 1969
(4) Industrial Relations Bill, 1978 73. The foundation stone for union-manage-
ment cooperation is said to have been laid
70. The latest amendment that was made to the in India in :
Industrial Disputes Act, 1947 was in the
(1) Oil Industry in 1977
year :
(2) Textile Industry in 1982
(1) 2008 (2) 2009
(3) Jute Industry in 1957
(3) 2010 (4) 2015
(4) TISCO in 1938
71. Any disagreement or dispute between an
74. Which of the following is not true regarding
employer and an apprentice arising out of
the eligibility conditions for claiming the
the contract of Apprenticeship shall be re-
“Unemployment Allowance” under the Em-
ferred to which of the following under the
ployees State Insurance Scheme ?
Apprenticeship Act, 1961 ?
(1) Should have been an insured person
(1) Apprenticeship Advisor
under the ESI Act, 1948 on the date of
(2) Apprenticeship Board
loss of employment.
(3) Director, Technical Education (2) Should have contributed to the scheme
(4) Regional Board for at least four years prior to the loss of
72. Adler and Ghadar’s Model (1990) is based employment.
on Vernon’s Life Cycle Theory, Vernon dis- (3) Should have become unemployed invol-
tinguished three phases in the international untarily because of permanent invalid-
product life cycle. ity due to non-employment injury.
Match the phases (List-A) with their descrip- (4) Should have become unemployed invol-
tions given in List – B : untarily due to closure of a factory or
List – A List – B establishment.
Phases Descriptions 75. Perlmutter (1969) has proposed and distin-
a. The First Phase i. Concentrates on guished three attitudes of Top management
(High-tech) developing and with respect to internationalisation, which
penetrating influence the organisational structure, lines
markets, not only of communication and information, and
at home but also approach to HRM activities etc.
abroad. Match the attitude (List-A) with their de-
b. The Second ii. Intense efforts scriptions given in (List-B) :
Phase (growth & are made to lower List – A List – B
internationa- prices by imple- a. Ethnocentric i. Personnel Manage-
lisation) menting cost con- ment is based largely
trol measures. on the view that val-
c. The third phase iii. Focuses on the ues, norms, and cus-
(maturity) product, R & D toms differ from
playing an impor- country to country,
tant role as a func- and local markets
tional Area.
can therefore best be c. Geocentric iii. Approach is to uti-

reached by local lize the best manag-
managers (host ers throughout the
country nationals). world, regardless of
b. Polycentric ii. Personnel manage- their nationality.
ment focuses to a Codes :
great extent on re- a b c
cruiting and training (1) i ii iii
parent country na- (2) iii i ii
tionals for key posi-
(3) i iii ii
tions, regardless of
(4) ii i iii
location.
ANSWERS
1. (2) 2. (3) 3. (2) 4. (4) 5. (2) 6. (1) 7. (2) 8. (2) 9. (1) 10. (4)
11. (2) 12. (4) 13. (2) 14. (2) 15. (3) 16. (1) 17. (2) 18. (1) 19. (4) 20. (1)
21. (4) 22. (3) 23. (1) 24. (3) 25. (2) 26. (3) 27. (2) 28. (3) 29. (2) 30. (3)
31. (3) 32. (2) 33. (3) 34. (1) 35. (3) 36. (4) 37. (3) 38. (3) 39. (1) 40. (3)
41. (4) 42. (3) 43. (2) 44. (4) 45. (2) 46. (4) 47. (1) 48. (3) 49. (1) 50. (3)
51. (1) 52. (3) 53. (4) 54. (3) 55. (1) 56. (4) 57. (1) 58. (3) 59. (2) 60. (3)
61. (1) 62. (3) 63. (4) 64. (1) 65. (2) 66. (3) 67. (2) 68. (3) 69. (2) 70. (3)
71. (1) 72. (3) 73. (4) 74. (2) 75. (4)
January, 2017
PAPER-II
all the questions.
1. Examine the following statements about Sci- 3. Match the following :

entific Management and identify those List – I List – II
which are true and false. (Themes) (Propagators)
a. The term ‘Scientific Management’ was a. POSDCORB i. Henry Fayol
not coined by Frederick Winslow Tay- b. Espirit De Corps ii. George A. Pennock
lor. c. Integration theoryiii. Mary Parker
b. Henry R. Towne’s ‘Engineer as a econo- Follette
mist’ influenced Taylor’s ideas.
d. The illumination iv. Luther Gullick
c. ‘Shop Management’ embodies
experiment
‘Therbligs’.
Codes :
d. Louis D. Brandies heard the case filed
against Taylor’s Scientific Management a b c d
by Trade Unions. (1) iv i ii iii
(2) iv i iii ii
Codes :
(3) iii i ii iv
(1) a, b, c are true and d is false. (4) iv ii iii i
(2) a, b, d are true and c is false. 4. Match the following activities (List-I) with
(3) a, b are true and c, d are false. the degree of delegation (List-II).
(4) a, c are true and b, d are false. List – I List – II
2. Which of the following statements about (Activities) (Degree of
open systems as given by Daniel Katz and Delegation)
Robert Khan are true ? a. Critical Activity i. Moderate
a. The exportation of energic inputs into b. Needed Activity ii. High
the environment. c. Peripheral Activity iii. Low
b. Transformation of available energy as Codes :
throughput, so that work is done. a b c
c. The importation of the output from the (1) ii i iii
environment. (2) ii iii i
d. A cycle of events in which the product (3) iii ii i
exported to the environment provides (4) iii i ii
the energy for repetition of the cycle.
5. The steps in planning process are jumbled
Codes : up. Arrange them in correct sequence.
(1) a, b (2) b, c a. Specifying alternatives
(3) b, d (4) a, d b. Analyzing alternatives
c. Goal setting
d. Elaborating plans and specifying de- organization can

tails develop social and
e. Establishing standards for measure- intellectual capital
ment within the bound-
aries of the firm.
f. Maintaining communication
g. Maintaining a time perspective Codes :
h. Planning for unpredictable contingen- a b c d
cies (1) iii i iv ii
i. Organising (2) iii iv i ii
j. Implementing (3) ii iv i iii
k. Ensuring Participation (4) iii ii iv i
l. Follow-up, providing for flexibility 7. Which of the following statement/s is/are
Codes : true ?
(1) c, e, g, a, b, d, k, f, i, j, l, h a. Configurational or bundle theorists pro-
pose that there are ideal types of con-
(2) c, a, g, b, d, k, f, j, i, h, l, e
figurations of HR practices that promote
(3) d, c, a, f, g, i, b, e, l, h, j synergies.
(4) c, g, e, b, a, k, d, i, f, j, l, h b. High performance work systems com-
6. Match the following HRM models (List-I) bining information sharing, decentral-
with their themes (List-II) : ized decision making via teams; partici-
List – I List – II pative management at operational, tac-
(HRM Models) (Themes) tical and strategic levels are, however
a. Long-term i. Seeks to minimize not part of the configurational frame-
Purchase Model Labour wage and work.
benefit costs; and Codes :
Employment levels (1) only a (2) only b
within organiza- (3) both a and b (4) neither a and b
tional boundaries. 8. Read the following statements about ‘staff-
Outsourcing and ing’ as a strategy formation. Identify the
externalization of ones which are true.
employment are en- a. Organisations need to hire ‘best’ people
couraged. emphasizing person-organisation fit
b. Work-force ii. Different employ- over person-job fit.
Commitment ment models for b. Organisations need to hire people with
Model core and noncore unique as well as complementary KSAs
work are adopted. in order to have the capability to imple-
c. Labour Tran- iii. Firms would ment flexible and focused business strat-
sactional Model employ workers, for egies in a fast changing environment.
as long as they per- c. Organisation need to hire people with
formed well and the talent and creativity to contribute to
company has the business strategies in a manner that will
capacity to pay. take any possible course of action in any
d. Mixed Model iv. Employers provide direction.
job security in order Codes :
to elicit long term (1) only a (2) a, b
commitment and (3) b, c (4) a, b, c
9. Which of the following is not a best practice c. Mc. Greger iii. Michigan Study on
in High Commitment Pay ? Leadership Style
(1) High wage policies to attract, retain and d. Mayo E and iv. Managerial
motivate the best talent, that is based on Rothlisberger Grid Theory
the belief that, ‘You get what you pay F.J.
for’. Codes :
(2) Employment security is essential to be a b c d
the ‘employer of choice’ and it is the bed
(1) iv i ii iii
rock for high quality work and a will-
ingness to be flexible and innovative. (2) iii ii iv i
(3) Encourage employee ownership of the (3) iv iii ii i
enterprise. (4) iv ii iii i
(4) Non-egalitarian symbols and perqui- 13. Which of the following is not a Simulation
sites. technique of development ?
10. Which of the following may be a possible (1) Management Games
consequence of inter-group conflict within (2) Case Study
the involved groups ? (3) In-basket
a. Group cohesiveness increases. (4) Sensitivity Training
b. Group becomes task oriented.
14. Which of the following statements is/are
c. Organisation structure becomes more true and false ?
rigid.
a. If motivation is low, monotony (mental
d. Leadership becomes more rigid.
fatigue) grips very early.
Codes :
b. If motivation is high, the will and de-
(1) a, b and d (2) b, c and d sire to work increases and both fatigue
(3) a, b, c and d (4) a and b only and monotony decreases.
11. Assertion (A) : Master-Servant doctrine be- c. Highly intelligent people are more sus-
lieved in the inalienable prerogative of ceptible to monotony if subjected to re-
Master’s will with regard to servant’s con- petitive work, because their level of ex-
tinuance in employment. pectations from job towards meaning-
Reason (R) : This prerogative has been fulness is low.
granted by the sanction of law made by the d. The anticipation of the end of the work
State Power. period tends to abolish signs of mo-
Codes : notony.
(1) (A) and (R) are wrong. Codes :
(2) (A) is wrong and (R) is right. (1) a and d are true; b and c are false.
(3) (A) and (R) are right, but (R) does not (2) a and c are true; b and d are false.
justify the Assertion (A).
(3) a, b and d are true; and c is false.
(4) (A) is right, but (R) is wrong and does
(4) b, c and d are true; and a is false.
not justify the (A).
15. Consider the following statements :
12. Match the contributors (Behavioural Scien-
tists) List-I with their contributions given in a. Conflict that supports the goals of the
List-II. group and improves its performance.
List – I List – II b. Conflict that hinders group performance.
a. Blake R.R. & i. Hawthorne Effect c. Emotional involvement in a conflict cre-
Mouton J.S. ating anxiety, tenseness, frustration, or
b. Likert R. ii. Theory X and Y hostility.
d. Withdrawal from or suppressing Codes :

conflict. (1) a and d are true, c and b are false.
The above statements, in correct sequence (2) a, b and d are true, c is false.
(a, b, c, d) refer to : (3) a, b, c and d are true.
Codes : (4) a and c are true, b and d are false.
(1) Dysfunctional, functional, inter-group, 19. The following three types of tests namely
and approach-approach conflict respec- objective tests, projective tests, and situation
tively. tests are basically used as tools of
(2) Functional, Dys functional, Felt conflict (1) Intelligence tests
and avoidance respectively. (2) Personality tests
(3) Functional conflict, confrontation strat- (3) Cognitive ability test
egy, Perceived and manifest conflict re- (4) Competency mapping
spectively. 20. ‘Alarm Reaction’, ‘Stage of Resistance’ and
(4) Inter-group conflict, dysfunctional con- ‘Stage of Exhaustion’ are the stages of
flict, Goal Diversity and Containment which of the following syndromes :
Strategy. (1) Buggy-whip Syndrome
16. In Transactional Analysis, if the response is (2) Dissociative Identity Disorder Syn-
by the same ego state as through which the drome
message was received, the transaction is (3) General Adaptation Syndrome
called (4) Amoeba Syndrome
(1) Crossed Transaction 21. Who is/are the author (s) of the books titled,
(2) Complementary Transaction ‘A History of Trade Unionism’ (1897) and
(3) Ulterior Transaction ‘Industrial Democracy’ (1902), the two early
(4) Feed-forward Transaction writings on Industrial Relations ?
17. “Healthy people show the behaviour of ma- (1) Sidney and Beatrice Webb
turity, while unhealthy people tend to dem- (2) Alan Fox and Allan Flanders
onstrate child like immature behaviour.” (3) Karl Marx (4) H.A. Clegg
Who among the following behavioural Sci- 22. The Descending Participation i.e., Workers’
entists said this ? participation in work was propounded by
(1) John Berry (2) Blake and Mouton (1) The Fabians
(3) F.W. Taylor (4) Chris Argyris (2) The Harvard Group
(3) The Oxford Group
18. Which of the following statements are true/
false ? (4) The Tavistock Group
a. Maslow’s need theory considers needs 23. Match the themes of the three approaches of
to explain human behaviour. industrial relations under contradictions
perspective :
b. Mc Gregor’s theory considers opposite
perceptions based on managerial as- Approach Theme
sumption of employee behaviour. a. The Marxian i. Power struggle to
approach control work
c. Vroom’s theory considers force, valence,
organizations.
expectancy, and instrumentality to ex-
b. The Socialistic ii. Power struggle to
plain motivation.
approach gain political power.
d. Cognitive evaluation theory classifies c. The Social iii. Power struggle to
persons as intrinsically and extrinsi- Action improve the lot of
cally motivated. approach the working class.
Codes : (1) B.T. Ranadive and S.V. Deshpande
a b c (2) Diwan Chamanlal and N.M. Joshi
(1) i ii iii (3) M.N. Roy and Maniben Kara
(2) ii iii i (4) H.K. Mehtab and Dattopant Thengadi
(3) iii ii i 29. When a strike is conducted with a view to
(4) ii i iii force an employer to recognise or bargain
24. Which of the following is not an industrial with a particular trade union instead of an-
union ? other, such strike is called as
(1) The Engineering Mazdoor Sabha (1) Political strike (2) Ordinary strike
(2) The Rohtas Workers’ Union (3) Protest strike
(3) The Girni Kamgar Union (4) Jurisdictional strike
(4) The Rashtriya Mill Mazdoor Sangh 30. Which of the following pairs is not correctly
25. Who has viewed collective bargaining as a matched ?
process of social change ? (Name of the (Year of Establishment
(1) Neil W. Chamberlain Association/ /Formation)
(2) J.H. Richardson Organisation)
(3) Arthur D. Butler (1) Confederation – 1895
(4) H.W. Davey of Indian
Industry
26. Which of the following is not included in
the ‘illustrative list of items’ approved by (2) International – 1864
the Indian Labour Conference pertaining to Workingmen’s
the items which the Works Committees will Association
normally deal with ? (3) Central Board for – 1957
(1) Amenities such as drinking water, can- Workers’
teens, creches,medical, and health ser- Education
vices. (4) Joint Consultative – 1951
(2) Quantum of leave and national and fes- Board of Industry
tival holidays. and Labour
(3) Adjustment of festivals and national 31. According to William Beveridge which of
holidays. the following are not part of a comprehen-
(4) Safety and accident prevention, occu- sive social security scheme ?
pational diseases and protective equip- a. Social assistance
ment. b. Compulsory insurance
27. Which of the following was formed in the c. Social insurance
year 1945 ? d. Voluntary insurance
(1) International Federation Chemical, En- e. Voluntary assistance
ergy, Mining and General Workers. Codes :
(2) International Confederation of Free (1) b and e only (2) d and e only
Trade Unions. (3) b, d and e only (4) a, b and d only
(3) World Federation of Trade Unions. 32. A trade Union has been formed in an estab-
(4) International Federation of Christian lishment employing five hundred employ-
Unions. ees.
28. Who among the following were moderates What is the minimum number of members it
in the context of trade union movement in should have to apply for registering it un-
India ? der the Trade Unions Act, 1926 ?
(1) Seven members (1) Certifying Officer appointed under the

(2) One hundred members Industrial Employment (Standing Or-
(3) Fifty members (4) Seventy members ders) Act, 1946.
33. Under the Industrial Disputes Act, 1947, to (2) Enquiry Officer appointed to enquire
which of the following industrial undertak- the allegations framed against the work-
ings the provisions relating to lay-off, re- man.
trenchment and closure provided under (3) Chief executive of the industrial estab-
chapter V-B shall be made applicable ? lishment in which the workman is em-
(1) Industrial establishment in which not ployed.
less than one hundred workmen were (4) Labour court constituted under the In-
employed on an average per working dustrial Disputes Act, 1947
day for the preceding twelve months. 37. What is the minimum period an employee
(2) Industrial establishment in which not should have worked in an accounting year
less than one hundred workmen were in an establishment to become eligible for
employed on an average per working bonus under the payment of Bonus Act,
day in the preceding calendar month. 1965?
(3) Industrial establishment in which not (1) Forty five days (2) Thirty days
less than one hundred workmen were (3) Sixty days (4) Ninety days
employed on an average per working 38. Which of the following statements relating
day during the preceding calendar year. to the Constitution of the Advisory Commit-
(4) Industrial establishment in which not tee under the Equal Remuneration Act, 1976
less than one hundred workmen were is true ?
employed on an average for the preced- (1) It shall consist of not less than twelve
ing three months. persons of which one-third shall be
34. As per the Government of India notification women.
the wage limit for employees to be covered (2) It shall consist of eight persons of which
under the Employees’ State Insurance Act, one-half shall be women.
1948 is proposed to be increased to (3) It shall consist of not less than ten per-
(1) Rupees Eighteen thousand sons nominated by the appropriate Gov-
(2) Rupees Twenty-five thousand ernment, of which one-half shall be
(3) Rupees Twenty thousand women.
(4) Rupees Twenty-one thousand (4) It shall consist of twelve persons nomi-
35. Under the Minimum Wages Act, 1948 what nated by the Central Government of
is the extent of representation of Indepen- which one-third shall be women.
dent persons in the Advisory Committee ? 39. Match the propounders mentioned in List-I
(1) one-half of its total members. with the theories of wages mentioned in List-
(2) one-third of its total members. II.
(3) one-fourth of its total members. List – I List – II
(4) one-half of its total members subject to a. J.S. Mill i. Marginal Produc-
a maximum of light. tivity Theory
b. Walker ii. Wage Fund Theory
36. If any dispute arises regarding the payment
of subsistence allowance to a workman un- c. J.B. Clark iii. Residual Claimant
der the provisions of the Industrial Employ- Theory
ment (Standing Orders) Act, 1946, then the d. Ricardo iv. The Subsistence
dispute may be referred to ! Theory
Codes : 42. Which among the following statements is
a b c d not true is relation to Labour Welfare ?
(1) iii iv i ii (1) Labour Welfare is an essential part of
(2) ii iii iv i Social Welfare.
(3) i ii iii iv (2) Labour Welfare Work not only covers
(4) ii iii i iv the work life of workers in the factory
but also extends beyond into his life
40. Under which of the following legislations
with his family and community.
the provision for payment to any trade union
(3) Labour Welfare is not concerned with
fee on a written authorisation from an em-
desirable conditions of existence, bio-
ployee has been provided ?
logically and Socially determined.
(1) Industrial Disputes Act, 1947
(4) Labour Welfare is a relative concept, rela-
(2) Trade Unions Act, 1926 tive in time and place.
(3) Payment of Wages Act, 1936
43. Which one of the following does not consti-
(4) Industrial Employment (Standing Or- tute to be a direct source of Industrial Juris-
ders) Act, 1946 prudence in India ?
41. Match the Principles of Labour Welfare men- (1) The Constitution of India
tioned in List-I with the contents given in (2) Legislative enactments
List-II. (3) International obligations
List – I List – II (4) Judicial decisions
a. Principle of i. Concept of
44. Who was the first person to advocate an
Social Respon- Labour Welfare eight hours working day for workers ?
sibility of must spread
(1) Robert Owen
Industry throughout the
hierarchy of an (2) John Stuart Mill
organization. (3) George Elliot
b. Principle of ii. Industry has an (4) August Comte
Responsibility obligation towards 45. Assertion (A) : Welfare is a relative concept,
its employees to relative in time and place.
lookafter their Reason (R) : Ideas of Welfare differ with pas-
welfare. sage of time. Man accepted comparatively
c. Principle of iii. Both employers and less convenient and less sumptuous condi-
Totality of workers are tions of existence; for Science and Technol-
Welfare responsible for ogy had not made possible better amenities.
Labour Welfare. Then again, meaning and content of Wel-
d. Principle of iv. Development of fare differs from country to country or re-
Repersona- the human perso- gion to region.
lisation nality must be Codes :
goal of Welfare. (1) (A) is correct, but (R) partially explains
Codes : (A).
a b c d (2) (A) is partially correct and therefore, (R)
(1) iv ii iii i only partially explains (A).
(2) ii iii i iv (3) (A) is correct and (R) explains (A).
(3) iii ii iv i (4) (A) is wrong and (R) is partially correct.
(4) i iii ii iv
46. Labour Welfare Services were divided into (4) It is necessary because of the gap exist-
two groups by the committee of experts on ing between the marginal productivity
Welfare facilities for Industrial Workers con- of labour and the actual level of wages
vened by ILO in 1963. These are (a) Those on the average.
within the precincts of the establishment 48. Twelfth Plan has identified certain sectors
and (b) Those outside the precincts of the that will create large employment. Which
establishment. The content of Welfare activi- among the following sectors has not been
ties remained the same as recommended by identified ?
1959 study team. (1) Textiles and Garments
As per the ILO classification, which one (2) Leather and Footwear
among the following is not Welfare and (3) Gems and Jewellery
Amenities outside the precincts of the es-
(4) Health Care
tablishment.
49. “Marginal productivity, wages and stan-
(1) Social insurance measures including
dard of living tend to adjust to one another.”
gratuity, pension and provident fund.
(2) Housing facilities. What is true in relation to the statement ?
(3) Recreation facility. (1) The condition is achieved for short-run
(4) Arrangement for prevention of fatigue. only.
(2) The condition never arrives.
47. Which is not true in relation to State Regu-
(3) The condition is achieved in the long-
lation of Wages ?
run.
(1) Internal Wage differentials are regu-
(4) The condition arrives when high wages
lated by the State.
are paid.
(2) The ideals of Welfare State necessitate
State Regulation of Wages. 50. Which among the following is not a factor
(3) It is necessary to raise the efficiency of which will determine the level of demand
the workers by ensuring improvements for any commodity ?
in health, productivity and distribution (1) Price
of income. (2) Prices of other commodities
(3) Taste
(4) Social values
ANSWERS
1. (2) 2. (3) 3. (2) 4. (4) 5. (1) 6. (2) 7. (1) 8. (4) 9. (4) 10. (3)
11. (4) 12. (3) 13. (4) 14. (3) 15. (2) 16. (2) 17. (4) 18. (3) 19. (2) 20. (3)
21. (1) 22. (4) 23. (2) 24. (2) 25. (3) 26. (2) 27. (3) 28. (2) 29. (4) 30. (3)
31. (1) 32. (3) 33. (1) 34. (4) 35. (2) 36. (4) 37. (2) 38. (3) 39. (4) 40. (3)
41. (2) 42. (3) 43. (3) 44. (1) 45. (3) 46. (4) 47. (1) 48. (4) 49. (3) 50. (4)
January, 2017
PAPER-III
Read the passage and answer the questions In the Indian context there are atleast two
raised below : (For Questions Nos. 1 – 7) further factors which reinforce the above propo-
sitions.
PASSAGE
The first is population growth. Given the
The past decade has upset many preconcep- pace of expansion of the population and the work
tions about development and this, more than force, human resource development acquires an
anything else, makes it difficult to be overly defi- added urgency. Population growth is also one,
nite about what the next decade has in store. But but not necessarily the most important factor,
there are a few things that one can assert with which underlines environmental stress in rural
some confidence. First, education, health and and urban areas. The second factor is that as a
productive employment are crucial both for large country we cannot carve out an indepen-
growth and for equity. We have tended to assume dent position in the global system without build-
that all of these are the consequences of rapid ing up a substantial capacity for self-reliant
economic growth and that only growth can gen- growth. The acquisition of technical competence
erate the resources required for these purposes. is crucial for this purpose.
But, increasingly, it appears that these are better
Until now we have tended to treat human
seen as the causes rather than as consequences
resource development, technology and environ-
of development. Virtually every case of success-
ment as subsidiary to the main task of planning.
ful development involves a prior improvement
The thrust has been on-quantitative expansion
in literacy, technical skills, health status and ac-
of infrastructure and production with a focus on
cess to productive work.
targets like tonnes of steel, kWh of electricity etc,
Second, technological competence is the capacity targets like road length, rail kilometres;
most important resource endowment and it ex- and coverage targets like number of schools and
plains a far large proportion of growth in output students, number of villages electrified etc, catch-
and trade than more conventional factors like ing up with known technologies-fuller use of
natural resources or capital accumulation. The natural resources – maximum mobilization of fi-
competence required is not just in research. In nancial resources.
fact technological dynamism in the factory and
1. What seems to be the purpose of the author
the farm is more important than the presence of
in writing this passage ?
large research establishment.
(1) To appreciate the steps taken by our
Third, the environmental imperative can no
Government in the past and doubts
longer be ignored. Today, as an international is-
about the future.
sue, it is second only to disarmament. Nation-
ally, the developmental consequences of environ- (2) To show how the policy makers have
mental neglect are increasingly obvious. failed.
(3) A review of world affairs with special (2) Technological competence has to be
emphasis on developed countries. given due priority over more conven-
(4) To prove how his predictions have tional factors.
turned out to be correct. (3) We cannot afford to ignore the impor-
2. According to the author, at the national level, tance of environment.
with passage of time, the effects of which of (4) We will have bright future by only catch-
the following are being felt ? ing up with known technologies.
(1) Lack of attention and action for protect- 7. According to the passage, which is not
ing environmental wealth. viewed as cause of development ?
(2) Reduction in growth rate of population. (1) Betterment in health services
(3) Progressive degradation of technologi- (2) Increase in underdevelopment
cal competence in urban areas. (3) Enhancement in technical skills
(4) Emphasis on slow rate of disarmament (4) Improvement in literacy
as compared to other nations. 8. In his book “The Time Bind : When Home
3. What seems to be the approach of the au- becomes work and work becomes Home”,
thor regarding present status of research ? Arlie Hochschild highlights the danger of
A. He desires that more research establish- total integration between work and home
ments should come up. leading to either ‘workholics’ or ‘work bust-
B. Application of new technologies in fac- ers’. The first neglecting the family and re-
tories and field is more vital than set- alizing it too late. The second ‘soldering’ on
ting up of research laboratories. work compromising with efficiency. From
(1) Only A (2) Only B the above observation, which of the follow-
(3) Neither A nor B (4) Both A and B ing inferences can be drawn ?
(a) Home becoming work and work becom-
4. According to the author, which of the fol-
ing home is an ideal condition.
lowing is a less important factor resulting
in environmental stress in rural and urban (b) Home becoming work and work becom-
areas ? ing home may create ‘workholics’ who
are good employees and bad home-
(1) Rapid economic growth
makers resulting into family break-
(2) Availability of productive employment down.
(3) Rate of growth of population (c) Employee ‘soldering’ means taking the
(4) Continued environmental neglect job easy leading to inadequate perfor-
5. According to the passage, we have so far mance.
placed more emphasis on which of the fol- (d) The passage advocates for work-life bal-
lowing ? ance.
(1) More use of available natural resources (1) (b), (c), (d) (2) (a), (b), (c)
(2) Increased number of basic facilities and (3) (a), (c), (d) (4) (a), (b), (c), (d)
meeting number targets 9. The National Association of manufacturers
(3) Maximum utilisation of available fi- in America is a
nances
(1) Purely Advisory Body
(4) Following known technologies (2) Purely Administrative Body
6. Which of the following statements is not true (3) Purely Negotiating Body
in the context of the passage ? (4) Purely Legislative Body
(1) We have to now emphasize on aspects
10. The Constitution of India gives its citizens
of human resource development.
certain fundamental rights. Some of these
fundamental rights concerns working class Codes :
directly. Match the subject matter included (1) (A) is wrong and, therefore, (R) becomes
in List – 1 with the Articles of the Constitu- irrelevant in the context.
tion of India mentioned in List – 2. (2) (A) is correct and (R) explains (A).
List – 1 List – 2 (3) (A) is correct and (R) does not explain
a. The state shall not discri- i. Art. 19(1) (A).
minate against any citizen (4) (A) is correct and (R) is wrong.
on grounds only of religion,
race, caste, sex, place of
to the Wagner Act is/are not wrong ?
birth or any of them.
a. It recognizes an employee’s right to en-
b. There shall be equality of ii. Art. 16(1)
gage in union activities.
opportunity for all citizens
in matters relating to employ- b. It recognizes employees’ right to orga-
ment or appointment to any nize and bargain collectively.
office under the state. c. It has a provision regarding the estab-
c. All citizens shall have the iii. Art. 15 lishment of a National Labour Rela-
right to freedom of speech tions Board.
and expression and to form d. It has a provision relating to unfair
associations or Unions and labour practices by employers.
to practice any profession (1) only a (2) only a, and b
or to carry on any occupation, (3) a, b and c (4) a, b, c and d
trade or business. 14. From among the following, who focused on
d. Traffic in human beings iv. Art. 23(1) the ‘soft side of organisation’ as a sequel to
and beggar and other forms globalization comprising adhocracy, simple
of forced labour are structure, the divisionalized form, thema-
prohibited. chine and professional bureaucracy?
Codes : (1) Henry Mintzberg
a b c d (2) Barlett and Ghosal
(1) iii i iv ii (3) Galbraith and Kazanjaam
(2) iii ii i iv (4) Burns and Stalker
(3) iv iii ii i
15. “Marx states that the mass of surplus value
(4) iv ii iii i is a definite quantum and exists across the
11. The voluntary arbitration in Britain was first system as a whole. It is a product of capitalist
introduced under the mode of production and capitalists compete
(1) Conciliation Act, 1896 for a share of this surplus. This surplus can
(2) Trade Union Act, 1913 be increased either through a longer work-
(3) The Trade Disputes and Trade Union ing day or by raising productivity of labour.
Act, 1927 The ‘rate of surplus value’ is a function of
(4) The Employment and Protection Act, direct labour employed. Constant capital in
1975 the form of machinery and raw materials
transmits its own value to products but does
12. Assertion (A) : The cause of labour was just
not create additional value.”
but it needed the support of humanitarians
and social reformers. Read the passage carefully and answer the
question :
Reason (R) : The need was to preach and
(1) Additional Surplus value is created by
persuade people against the powerful so-
constant capital.
cial prejudices and barriers.
(2) Additional Surplus value is created by social work. Social work lead to states of
modern technology welfare both of individuals and groups.
(3) Additional Surplus value can only be And, therefore, it can be derived that labour
created by labour. welfare is an area of social work.
(4) Labour has no role in creation of Addi- There exists four methods of undertaking
tional Surplus Value social work. Match the subject matter given
16. Which of the following types of Trade in List – 1 with the method of social work
Unions groups the workers’ unions horizon- given in List – 2 :
tally, vertically or on the basis of political List – 1 List – 2
ideology with a view to coordinating them ? a. Situations of lay-off i. Social Action
(1) Territorial Unions and retrenchment
(2) Occupational Unions b. Collective bargai- ii. Community
(3) Industrial Unions ning contexts Organisation
and Develop-
(4) General Unions
ment
17. Read the two statements given below : c. Housing iii. Social group
Statement – I : Marxian Political Economy work
(MPE) championed the cause of employ- d. Peaceful strike iv. Social case work
ment, income and social security and kept Codes :
them within the bargaining power of the a b c d
working class. (1) i ii iii iv
Statement – II : With the onset of globaliza- (2) iv iii ii i
tion, New Institutional Economics (NIE), (3) ii i iv iii
being driven by market forces, championed
(4) iv ii iii i
the cause of competitiveness, efficiency and
cost-effectiveness. It supported the contrac- 19. In which year India became a member of the
tual freedom for both the employer and em- ILO ?
ployee to transact on employment and em- (1) 1919 (2) 1921
ployee cost fundamentals. (3) 1926 (4) 1934
Which of the following logics can be in- 20. A situation, which is very serious, has arised
ferred ? and it warrants that the member of the Trade
(a) The statements take opposing stands. Union be financially assisted. As per the
(b) The statements are explainable in terms Trade Unions Act, 1926, what is the maxi-
of assertion-reasoning compatibility. mum quantum of benefit which a Trade
(c) The first statement explains the union Union can offer to its member out of the to-
control on employment and other secu- tal gross income in the year and the balance
rities. of the credit of the preceeding year :
(d) The second statement advocates for the (1) One tenth (2) One sixth
imperatives of limited employment se- (3) One fourth (4) Half
curity by giving greater freedom to both 21. Who said that a trade union is a “continu-
employers and employees the choice of ous association of wage-earners for the pur-
employment contract severance. pose of maintaining or improving the con-
(1) (a) and (b) (2) (b) and (c) ditions of their working lives.” ?
(3) (a), (b) and (c) (4) (a), (c) and (d) (1) G.D.H. Cole (2) Clyde E. Dankert
18. Labour welfare, though, is not exactly so- (3) J. Cunnison
cial work but any welfare is the result of (4) Sydney and Beatrice Webb
22. Which of the following are the four key HR 26. The term ‘Social Security’ was officially first
challenges, identified by Deloitte, in its used in
‘Compensation trends Survey Report’ for (1) ILO
2012-2013 ? (2) The United States of America
(a) Reducing operating cost (3) The U.S.S.R.
(b) Retaining critical talent (4) Germany
(c) Reducing capital investment 27. Which of the following conventions of ILO
(d) Hiring of skilled talent relates to the ‘Right of Association’ ?
(e) Increasing productivity (1) Convention No. 87
(f) Engaging the employees (2) Convention No. 90
(g) Restructuring (3) Convention No. 121
(h) Training and Developing potential lead- (4) Convention No. 147
ers
28. Examine the following statements about
(1) (a), (c), (e) and (g) span of control and identify the ones which
(2) (b), (d), (f) and (h) are true ?
(3) (c), (e), (a) and (g) a. More task complexity requires narrower
(4) (d), (f), (g) and (h) span of control.
23. Which of the following statements relating b. Routine tasks can have greater span of
to the V.V. Giri National Labour Institute is control than Exceptional tasks.
wrong ? c. When tasks are dissimilar, then span of
(1) The institute was set up in the year 1976. control can be larger.
(2) The institute was set up as a registered d. Spans of control are generally narrower
society. at the top and broader at the bottom of
(3) The institute’s affairs are governed by the hierarchy.
the General Council. (1) a and b (2) a, c and d
(4) Research occupies a primary place in (3) b and d (4) a, b and d
the activities of the Institute. 29. As per an amendment of the Employees’
24. Members of the Trade Union are required to State Insurance Act, 1948 in 2010 who
pay a subscription per annum as per the among the following have been included for
provisions of the Trade Unions Act, 1926. getting medical benefits subject to payment
For workers working in other unorganized of contribution and such other conditions
sectors, excepting rural workers, the annual as may be prescribed by the Central govern-
rate of subscription should not be less than ment ?
(1) Rs. 1 per annum a. An insured person who has attained the
(2) Rs. 3 per annum age of superannuation.
(3) Rs. 12 per annum b. An insured person who retires under a
(4) Rs. 24 per annum Voluntary Retirement Scheme.
25. Which of the following is not a characteris- c. An insured person who takes prema-
tic of ‘Spaghetti organization structure’ ture retirement
adopted by MNCs ? d. The spouse of the insured person.
(1) Paperless organisation (1) c and d only (2) a, b and d only
(2) Smart office design (3) b, c and d only (4) a, b and c only
(3) ‘Meat Balls’ or knowledge centres 30. Examine the following statements and iden-
(4) Formal communication between people tify the ones which are right and wrong :
a. Industrial relations as an activity is of b. Managers tend to be more participative

recent origin. when subordinate acceptance of the
b. Industrial relations as a field of study decision is critical for its effective imple-
is of recent origin. mentation.
c. The early writings on industrial rela- c. Managers tend to be less participative
tions were mostly reflective of prevail- when they have all the necessary infor-
ing practices rather than theories and mation to make a high quality decision.
explanations. d. Managers tend to be less participative
d. Initially industrial relations subsumed when time is limited and immediate
all aspects of work, including problems action is required.
and issues affecting both employers’ Codes :
and workers’ organizations, and cov- (1) a, b, c and d (2) a, c and d
ered only unionized employment rela- (3) a, b and c (4) a, b and d
tions.
34. Which of the following for the first time made
(1) b and d are right, a and c are wrong. provisions for compulsory rest interval of
(2) only b is right, a, c and d are wrong. half an hour each day ?
(3) b, c and d are right and a is wrong. (1) Factories Act, 1911
(4) b and c are right a and d are wrong. (2) Factories Act, 1891
31. The Central Board for Workers’ Education (3) Factories Act, 1934
was renamed in 2016 as (4) Factories Act, 1948
(1) Sardar Vallabhbhai Patel National 35. Which of the following Central Labour
Board for Workers’ Education and De- Organisations voluntarily adopted the ‘In-
velopment ter-union code of conduct’ in 1958 ?
(2) Sardar Vallabhbhai Patel Central Board (1) INTUC, AITUC, NFITU
for Workers’ Education
(2) AITUC, NFL, BMS, NLO
(3) Dattopant Thengadi National Board for
(3) INTUC, AITUC, HMS, UTUC
Workers’ Education and Development
(4) BMS, HMS, CITU, TUCC
(4) Dattopant Thengadi Central Board for
Workers’ Education 36. MBTI is the most widely used instrument
for personality analysis. Which of the fol-
32. The maximum permissible threshold limits
lowing statements about MBTI is/are true/
of exposure of chemical and toxic sub-
false ?
stances in manufacturing processes are pro-
a. MBTI has 108 items
vided under which, Schedule of the Facto-
b. Sixteen personality types are generated
ries Act, 1948 ?
by the instrument
(1) The First Schedule
c. MBTI has 100 items
(2) The Second Schedule d. Sixteen personality types are based on
(3) The Third Schedule a combination of four basic elements of
(4) The Fourth Schedule psyche.
33. Based on a series of studies on managerial e. MBTI was developed by a father-daugh-
decision making behaviour. Vroom and ter team.
Yetton (1973) found evidence in support of f. MBTI was developed by a mother-
which of the following propositions ? daughter team.
a. Managers tend to be more participative Codes :
when the quality of the decision is im- (1) a, d and e are true
portant. (2) b, c, d and f are true
(3) c, d and e are true b. To protect the rights of labour unions
(4) a, b, e and f are true c. To protect employers
37. An employee is employed in an industry on d. To protect the public from possible ex-
a wage of Rupees Eight Thousand and Five cess on the part of organized labour
Hundred per month, which is fixed as the Codes :
minimum wage as a scheduled employment (1) a and b only
by the appropriate Government. What is the (2) a, b and c only
amount of bonus he shall be entitled to, if it (3) a and c only
is to be paid at the minimum rate of 8.33%
(4) a, b, c and d
by the employer under the payment of Bo-
nus Act, 1965 ? 41. In Britain if the Advisory Conciliation and
(1) Rupees seven thousand only Arbitration Services (ACAS) fails to settle
the claims at its level, it must refer the same
(2) Rupees nine thousand only
to
(3) Rupees eight thousand and five hun-
(1) Independent Arbitrator
dred only
(2) Board of Arbitration
(4) Rupees three thousand and five hun-
dred only (3) Central Arbitration Committee
(4) Industrial Tribunal
38. The inter-union code of conduct aims to
42. Match the sources of resistance (List – A)
(1) Check Unfair Labour Practices
and the steps that can be taken to deal with
(2) Control Trade Union Rivalries
such resistance (List – B) :
(3) Promote Labour Management Coopera-
List – A List – B
tion
(Sources of (Coping
(4) Promote collective bargaining in India Resistance) Mechanisms)
39. Which of the following are known as ‘Big a. Complacency i. Development of
Five’ dimensions of personality ? and Inertia skills
Dimensions : b. Fear of large- ii. Participation and
a. Extraversion scale disturbance Involvement
b. Dominance c. Perception of iii. Phasing of change
c. Sensitivity Imposition
d. Agreeableness d. Fear of Obso- iv. Fait accompli
lescence
e. Conscientiousness
e. Fear of loss of v. Role re-definition
f. Rule-consciousness power and re-orientation
g. Self-reliance Codes :
h. Emotional Stability a b c d e
i. Openness to experience (1) v iv iii ii i
j. Perfectionism (2) i iii ii iv v
Codes : (3) ii iv v iii i
(1) a, d, e, h and i
(4) iv iii ii i v
(2) a, e, h, b and j
43. Which of the following Articles of the In-
(3) d, e, f, g and h dian Constitution deals with “Securing just
(4) a, d, g, i and j and humane conditions of work and mater-
40. Which of the following statements charac- nity relief” ?
terize the objectives of labour legislation ? (1) Article 42 (2) Article 41
a. Improve the conditions of labour (3) Article 46 (4) Article 38
44. Which of the following statements relating (3) G.D. Birla and Purushottam Takkar
to ILO Declaration on Fundamental Prin- (4) Mahatma Gandhi and Vallabhbhai
ciples is not correct ? Patel
(1) The Declaration was adopted at the 86th 48. Process consultation, Confrontation Meet-
Session of the International Labour Con- ings, Organisational Mirroring and Team
ference. Building are commonly used as tools for
(2) The Declaration reiterates the binding (1) Human Resource Accounting
nature of the ILO’s Philadelphia Decla- (2) Human Resource Audit
ration.
(3) Recruitment Techniques
(3) The Declaration requires compliance of
(4) OD Intervention
Convention Nos. 88 and 89 even by
those countries that have not ratified the 49. Under the Employee’s Compensation Act,
same. 1923, the minimum amount of compensa-
(4) The Declaration requires compliance of tion payable to an employee suffering from
convention No. 138 even by those coun- permanent total disablement from the injury
tries that have not ratified the same. is
(1) Rupees one lakh and twenty thousand
45. Match the ‘Style of Leadership’ with the
‘numbers’, as they are denoted by, in Mana- (2) Rupees one lakh and ten thousand
gerial Grid : (3) Rupees one lakh and forty thousand
List – A List – B (4) Rupees one lakh and seventy thousand
a. Task Management i. 1, 1 50. An employee working in an organization
b. Impoverished ii. 1, 9 dies resulting from injury by an accident
arising out of and in course of his employ-
c. Team iii. 5, 5
ment. What is the amount of compensation
d. Country Club iv. 9, 1
his dependants are entitled to if his monthly
e. Middle of the road v. 9, 9 wages was rupees eighteen thousand per
Codes : month and the relevant factor is 186.90 un-
a b c d e der the Employees’ Compensation Act,
(1) ii i iv v iii 1923 ?
(2) ii i v iv iii (1) Rs. 7,47,600 (2) Rs. 8,97,120
(3) iv i ii v iii (3) Rs. 16,82,100 (4) Rs. 7,76,300
(4) iv i v ii iii 51. Match the following tests (List – A) with the
46. Under the provisions of the Maternity Ben- tools used (List – B) for carrying out these
efit Act, 1961, nursing breaks are to be protests :
vided to every women who returns to duty List – A List – B
after delivery of a child, until the child at- a. Thematic Apperce- i. Ten cards having
tains the age of ption Test (TAT) prints of Ink blots
(1) Eighteen months b. Rosenzweig Test ii. 45 inkblot cards
(2) Fifteen months c. Rorschach Test iii. 25 plates, each con-
(3) Twelve months sisting 3 sketches
(4) Twenty four months d. Holtzman Ink iv. Pictures
47. The Federation of Indian Chambers of Com- Block Test
merce and Industry was founded by e. Tomkins-Horn v. Cartoons with
(1) G.D. Birla and Vallabhbhai Patel Picture arrange- balloons above
(2) Purushottam Takkar and Mahatma ment test
Gandhi
Codes : c. The employees shall be content with
a b c d e their experiences in the organization;
(1) iv ii i iii v failing which job satisfaction will result.
(2) v iii ii i iv d. Job satisfaction will be less if a person
(3) iv v i ii iii becomes an ‘isolate’ from the group.
(4) iv iii i ii v (1) a and b (2) a, b and c
52. Which of the following statements relating (3) c and d (4) only d
to Industrial Truce Resolution, 1962 is not 55. Below given are four figures (List–I). Match
correct ? them with the communication pattern (List–
(1) The resolution was passed on Decem- II).
ber 12, 1962 List – I List – II
(2) The Resolution was passed in a joint
meeting of employers’ and workers’ rep-
resentatives. a. i. Linear vertical
(3) Part IV of the Resolution referred to the
price stability.
(4) Part V of the Resolution referred to the
imperative need for increasing savings,
particularly through contribution to the b. ii. Linear Horizontal
National Defence Fund and / or to in-
vestments in Defence Bonds.
53. The bipartite consultative machinery com-
prises c. iii. Wheel
(1) Works committees and steering commit-
tee on wages
(2) Works committees and standing labour
committee d. iv. All Channel
(3) Joint management councils and works Codes :
committees a b c d
(4) Joint management councils and stand- (1) iii iv ii i
ing labour committee (2) iv iii ii i
(3) iv iii i ii
54. Blum and Naylor defined job satisfaction
as “the result of various attitudes that the (4) iii iv i ii
employee holds towards his/her job and or- 56. The term ‘Blackleg’ refers to
ganization on account of his/her experience (1) A worker who forcibly joins those who
(good or bad) in the organization and a feel- are on strike.
ing of contentment derived out of these atti- (2) A worker who continues to work when
tudes. Lack of it is job dissatisfaction.” his/her co-workers in the establishment
Which of the following inferences cannot are on strike.
be considered as logical from the above defi- (3) A worker who wears black shoes while
nition ? on duty.
a. The job satisfaction comes out of vari- (4) A supervisor who breathes on the necks
ous attitudes of employees towards of his/her subordinates.
their jobs and organisations.
b. The attitudes are formed by the employ- 57. As per the proceedings of the 46th Indian
ees’ good or bad experience in the orga- Labour Conference, 2015, the Government
nization.
of India has proposed to enhance the over- ploying less than 40 workers. The proposed
time hours from the present limit of fifty ame of the Bill is
hours, under the Factories Act, 1948 to (1) Small Factories (Facilitation and Regu-
(1) Seventy five hours lation of Employment and Conditions
(2) One hundred ten hours of Services) Bill, 2015
(3) One hundred hours (2) Small and Medium Factories Bill, 2015
(4) Ninety hours (3) Small Factories (Conditions of services)
58. Match the following effects List – I with their Bill, 2015
meanings given in List – II : (4) Medium and Small Factories (Regula-
List – I List – II tion of Employment and Conditions of
Services) Bill, 2015
a. Placebo effect i. Self fulfilled
prophecy 61. According to the provisions of the Unorga-
b. Hawthorne effect ii. Rating error due nized Worker’s Social Security Act, 2008,
to attribution to which of the following schemes are deemed
single trait to be the welfare schemes under the Act ?
c. Pygmallion effect iii. Belief system a. Janani Suraksha Yojana
d. Halo effect iv. Controlled b. National Family Benefit Scheme
behaviour under c. Pradhan Mantri Jan Dhan Yojana
observation d. Indira Gandhi National Old Age Pen-
Codes : sion Scheme
a b c d e. Grameen Seekho and Kamao Scheme
(1) iii iv i ii (1) a, b, c and d (2) a, b and d
(2) i ii iii iv (3) c, d and e (4) a, b, d and e
(3) iv iii ii i 62. Which of the following is/are not a com-
(4) iii iv ii i monly used method of training ?
59. Richard P. Calhoon observed that “Griev- a. Buzzing b. Regression
ance procedure is a control necessary for c. Role playing d. Rationalisation
protecting the standards of the employee as e. Brain Storming f. Persuasion
discipline is the control necessary for pre- Codes :
serving standards of the company”. (1) b, d, f (2) a, c, e
Which of the following inferences cannot (3) d, e, f (4) a, c, f
be derived from the above statement ? 63. Assertion (A) : The MNCs had deeply en-
(1) Grievance procedure is a control on trenched themselves by the time unions
employer’s HR decisions. realised the role of MNCs in spreading capi-
(2) Disciplinary actions are control on talism.
employee’s work related conduct. Reason (R) : For a pretty long time the inter-
(3) Grievance redressal and disciplinary national trade unions did not consider the
actions are inimical to one another. MNCs as their natural opponents.
(4) Grievance redressal and disciplinary Codes :
actions as control mechanisms shall be (1) Both (A) and (R) are wrong.
handled through a due, just and judi- (2) Both (A) and (R) are right and (R) ex-
cious process. plains (A).
60. Recently the Ministry of Labour and Employ- (3) (A) is right and (R) is wrong.
ment, Government of India has drafted a bill (4) Both (A) and (R) are right, but (R) does
for regulating manufacturing factories em- not explain (A).
64. Match the provisions given in List – I with d. Analytical iv. Research and
the legislations they are covered given in Decisions development and
List – II : long-term
List – I List – II corporate planning
a. Exempted i. Payment of Bonus Codes :
employee Act, 1965 a b c d
b. Compulsory ii. Factories Act, (1) iii i iv ii
Insurance 1948 (2) ii iv i iii
c. Right of Workers iii. Payment of Gratu-
(3) iii iv i ii
ity Act, 1972
d. Development iv. Employees’ State (4) i ii iii iv
Rebate Insurance Act, 68. A workman working in an industry was de-
1948 moted to a lower grade as a punishment
Codes : inflicted by way of disciplinary action. If the
a b c d concerned workman intends to raise an in-
(1) iv iii ii i dustrial dispute on it, under which of the
(2) i ii iii iv following conditions it shall be deemed to
(3) ii i iv iii be an industrial dispute ?
(4) iii iv i ii a. If it is supported by a union in the es-
tablishment of which he is a member.
65. Assertion (A) : The unilateral HR decision
b. If it is supported by a minority union of
making process partly gave way to negoti-
ated decision making. the workmen in the establishment.
Reason (R) : Government norms and mar- c. If it is supported by substantial number
ket forces imposed HR decisions. of workmen of the establishment in the
absence of a union.
(1) Both (A) and (R) are wrong.
(2) Both (A) and (R) are right, but (R) does (1) Either a or b only
not explain (A). (2) Either a or c only
(3) Assertion (A) is right but (R) is wrong. (3) Either b or c only
(4) Both (A) and (R) are right ; and (R) ex- (4) a or b or c
plains (A). 69. Which of the following are the characteris-
66. In which year the ‘Change to Win Federa- tic features of ‘social assistance’ ?
tion’ was formed in U.S.A. ? a. It is fully financed by the State.
(1) 2002 (2) 2003 b. Benefits provided under the scheme is
(3) 2004 (4) 2005 for a short duration.
67. Match the type of Managerial Decisions c. The Financial resources of social assis-
List – I with the examples given in List – II : tance scheme is for a short duration of
List – I List – II time.
a. Judgemental i. Daily routines d. Social assistance is substitutive rather
Decisions and scheduled than supplemental to social insurance.
activities (1) a, b and d only (2) b, c and d only
b. Adaptive ii. Complex produc- (3) a, b and c only (4) a, b, c and d
Decisions tion and engineering
problems 70. Match the following inventions / processes
c. Mechanistic iii. Marketing, in the field of industrial psychology
Decisions investment, and (List – I) with their description (List – II) :
personnel problems
List – I List – II (4) United Brotherhood of construction

a. Ergograph i. Fatigue related pro- workers
duction curve 73. The Deming Prize for Company Wide Qual-
b. Dynamometer ii. Sociometry relations ity Control (CWQC) is instituted by the
c. Sociogram iii. Human engineering (1) International Organisation for Stan-
d. End-spurt iv. Single finger muscle dardization (ISO)
activity (2) The Union of Japanese Scientists and
Codes : Engineers (JUSE)
a b c d (3) CHEA International Quality Group.
(1) iv iii ii i (4) Institute of Quality and Control, Israel.
(2) i iii ii iv 74. What is TQM ‘Kitemarks’ ?
(3) iii i ii iv (1) It is a set of TQM techniques.
(4) iv i ii iii (2) It is a set of TQM objectives.
71. Indian Industrial Relations System can be (3) It is a set of TQM philosophies.
considered as a mix of which of the follow- (4) It is a set of TQM awards.
ing ? 75. Who among the following is/are workman
a. North American MNCs’ strategic choice under the provisions of the Industrial Dis-
for union-free Industrial Relations Sys- putes Act, 1947 ?
tem. a. A person employed in a technical job
b. West European MNCs’ tradition of en- draws wages of fifteen thousand rupees
couraging organized trade unions rep- per month.
resenting the employees’ interests. b. A person employed in a supervisory ca-
c. Japanese MNCs’ preference for com- pacity draws wages of sixteen thousand
pany promoted enterprise unions. rupees per month.
(1) only a (2) a and b c. A person employed in a managerial or
(3) a, b and c (4) a and c administrative capacity draws a salary
72. What is the full form of ‘UBC’ in the context of ten thousand rupees per month.
of trade union movement in U.S.A. ? d. A person employed in a supervisory ca-
(1) United Brotherhood of Carpenters pacity draws wages of nine thousand
(2) Union of Building and Construction rupees per month.
workers (1) a, b and d only (2) a and d only
(3) Union of Buffalo Construction Inc. (3) a and b only (4) a, c and d only
ANSWERS
1. (2) 2. (1) 3. (2) 4. (3) 5. (2) 6. (4) 7. (2) 8. (1) 9. (1) 10. (2)
11. (1) 12. (2) 13. (4) 14. (1) 15. (3) 16. (1) 17. (4) 18. (2) 19. (1) 20. (3)
21. (4) 22. (2) 23. (1) 24. (2) 25. (4) 26. (2) 27. (1) 28. (4) 29. (3) 30. (3)
31. (3) 32. (2) 33. (1) 34. (2) 35. (3) 36. (2) 37. (3) 38. (2) 39. (1) 40. (4)
41. (3) 42. (4) 43. (1) 44. (3) 45. (4) 46. (2) 47. (3) 48. (4) 49. (3) 50. (1)
51. (3) 52. (1) 53. (3) 54. (3) 55. (3) 56. (2) 57. (3) 58. (1) 59. (3) 60. (1)
61. (2) 62. (1) 63. (2) 64. (1) 65. (2) 66. (4) 67. (3) 68. (4) 69. (3) 70. (1)
71. (3) 72. (2) 73. (2) 74. (4) 75. (2)
November, 2017
PAPER-II
all the questions.
1. Who among the following are known for 4. Which of the following has specialists from
study of work arrangements to eliminate different functional departments working
wasteful hand and body motions ? on one or more projects that are led by a
(1) Henry Gantt and C.I. Barnard project manager ?
(2) Frank and Lillian Gilbreth (1) Functional Organisation
(3) Elton Mayo and H. Emerson (2) Cross - Functional Team
(4) F.W.Taylor and Henry Gantt (3) Matrix Organisation
2. Which of the following represents the rights (4) Product Organisation
inherent in a managerial position to give 5. Which one of the following is related to clan
orders and expect them to be obeyed ? control ?
(1) Power (2) Authority (1) Relies on administrative rules and regu-
(3) Influence (4) Responsibility lations
3. Match the following : (2) Employee’s behaviours are regulated by
List-I List-II the shared values, norms, traditions,
(a) Robert Owen (i) Organisations rituals and beliefs of the organisation
based on group (3) Emphasizes organisational authority
ethics rather than (4) Depends on standardisation activities
individualism
6. Which one of the following Acts, deals with
(b) Hugo (ii) Social norms and the issue of complaints ?
Munsterberg standards of group
(1) Factories Act, 1948
(c) Mary Parker (iii) Employers treat
(2) Payment of wages Act, 1948
Follett their machines bet-
ter than workers (3) Employees’ compensation Act, 1923
(d) Elton Mayo (iv) Scientific study of (4) Industrial Employment (Standing Or-
human behaviour ders) Act, 1946
to identify general 7. Job Description implies :
patterns and indi- (1) Identification of the qualities required
vidual differences in the job holder
Codes : (2) Performance of job in a methodical way
(a) (b) (c) (d) (3) Laying down systematically the duties
(1) (i) (ii) (iii) (iv) and responsibilities of the job
(2) (iii) (iv) (i) (ii) (4) Determination of the performance stan-
(3) (iv) (iii) (i) (ii) dards of the job
(4) (iv) (iii) (ii) (i)
8. The Human Resource Planning is a : (3) (a), (b), (c) are true, (d) is false
(1) Positive process (2) Negative process (4) All the statements are true
(3) Reactive process(4) Pro- active process 12. Match the following concepts of career plan-
9. The degree to which a particular selection ning List - I with their propagators List - II :
device accurately predicts the level of per- List - I List - II
formance is known as : (a) Career Anchor (i) Mondy et al
(1) Construct Validity (b) Career Stage Model (ii) John Holland
(2) Criterion - related validity (c) Career Path Model (iii) Edgar Schein
(3) Logical validity (d) Career Choice Model (iv) D. T. Hall
Codes :
(4) Concurrent validity
(a) (b) (c) (d)
10. Progressive Discipline is : (1) (iii) (ii) (iv) (i)
(1) For the growth of skills. (2) (iii) (i) (ii) (iv)
(2) A system of warnings and punishments (3) (iii) (ii) (i) (iv)
that gradually become more severe. (4) (iii) (iv) (i) (ii)
(3) Discipline to meet future needs. 13. Quality of work Life is a combination of
(4) A system of severe punishments right employee’s welfare, working conditions and
from the beginning. workplace democracy. Who highlighted the
11. Read this small passage on HRD and an- concept of workplace democracy ?
swer questions at the end by chosing ap- (a) Eric Tryst (b) Udai Pareek
propriate answer from the given alterna- (c) Einar Thorsrud (d) Fred Emery.
tives. Code :
HRD is a competence building exercise (1) (a) and (b) (2) (a), (c) and (d)
through which people everywhere (of the (3) (a) and (d) (4) (a), (b), (c) and (d)
world, of the nation, and of the organiza- 14. ‘Bell curve’ is represented by which of the
tion) are enabled to recognize their poten- traditional methods of performance Ap-
tial so as to utilize their capabilities and praisal ?
available resources and opportunities eq- (1) Forced Choice Method
uitably for not only their own development (2) Free from Essay Method
but also development of their organisations, (3) Critical Incidence Method
Nations and the world on a sustainable (4) Forced Distribution Method
basis.
15. Match the following approaches of HRD List
Which of the following statements picked - I with the person or institution who or
up from the passage is/are true or false ? which advanced the approach List - II :
(a) It talks about Macro and Micro level List - I List - II
HRD. (a) Human Capital (i) Human Develop
(b) At macro level it encompasses world Approach ment Report
and national development. (b) Socio/Psycho- (ii) T.U. Schultz
(c) It highlights the contents of HRD viv- logical Approach
idly. (c) Poverty Alle- (iii) David Mc
(d) At all levels, HRD aims at sustainable viation Clelland
development. Approach
Code : (d) World Human (iv) Mahbub Ul Haq.
(1) (a), (b) are true, (c), (d) are false Development
(2) (a), (b), (d) are true, (c) is false Approach
Codes : (a) The system of various roles that the in-
(a) (b) (c) (d) dividual carries and performs is ‘role
(1) (ii) (iii) (iv) (i) set’.
(2) (ii) (i) (iv) (iii) (b) The system of various roles of which an
(3) (ii) (iii) (i) (iv) individuals role is a part is ‘role space’.
(4) (ii) (iv) (i) (iii) (c) Self role integration, proactivity, creativ-
ity and confrontation are ingredients of
16. Which of the following statements about the the Role making ‘ dimension of Role ef-
Organisational Behaviour (OB) system is/ ficacy.
are true and false ?
(d) Role stress is caused by both Role space
(a) OB believes in open system. conflict and Role set conflict.
(b) It has three sub-systems namely formal Code :
Organisation System, Individual Sys-
(1) (a), (c) are true, (b), (d) are false
tem and Social System.
(2) (a), (b) are true, (c), (d) are false
(c) There are no intervening mechanisms
to lead Organisational Behaviour to- (3) (a), (b) are false, (c), (d) are true
wards organisational effectiveness. (4) (a), (d) are true, (b), (c) are false
(d) OB Mod and reinforcement are outside 20. The characteristics of ‘Morale’ are depicted
the purview of OB system. as (i) The absence of conflict (ii) feeling of
Code : happiness (iii) good inter - personal adjust-
(1) (a), (b), (c) are true, (d) is false. ment (iv) involvement in one’s job (v) group
cohesiveness (vi) Positive job related atti-
(2) (a), (c), (d) are true, (b) is false.
tudes (vii) individual’s acceptance of the
(3) (a), (c) are true, (b) and (d) are false. group goals. Who is associated with this
(4) (a) and (b) are true, (c) and (d) are false. explanation ?
17. What is ’Neotony’ as a leadership trait ad- (1) Blum and Naylor
vanced by Bennis and Thomas ? (2) Hugo Munsterberg
(1) Calm, confident and predictable under (3) R.M. Guien (4) J.L. Moreno
stressful condition
21. Who regarded trade unions as “institutions
(2) Youthful, curious, playful, fearless, for overcoming managerial dictatorship, to
warm and energetic strengthen individual labourers and to give
(3) Encouraging dissent, empathy and ob- them some voice in the determination of the
sessive communication conditions under which they have to
(4) Ambitious, morally strong and compe- work” ?
tence (1) Karl Marx (2) Mahatma Gandhi
18. In which year, in which factory and by (3) Sidney and Beatrice Webb
whom the first quality circle in India was (4) Selig Perlman
introduced ?
22. ‘Feather Bedding’ refers to :
(1) 1982 ; Bharat Electronics Ltd, S.R. Udpa
(1) The prevalence of the work rules which
(2) 1981 ; Hindusthan Aeronautics Ltd, S.R. permit employees to be paid for work
Udpa they do not perform.
(3) 1982 ; Hindusthan Machine Tools, R.S. (2) The practice of hiring local people as a
Tarneja ‘sons-of-the soil’ policy.
(4) 1982 ; Bharat Heavy Electricals Ltd, S.R. (3) The practice of providing mattresses as
Udpa a welfare measure to the employees in
19. Which of the following statements relating the winter season for taking rest at the
to ‘role’ is/are true and false ? workplace during the rest intervals.
(4) The practice of hiring people belonging (1) The Convention relates to Worst Forms
to rural areas only. of Child Labour.
23. Which of the following statements relating (2) It is one of the eight Fundamental Con-
to the Board for Industrial and Financial ventions of the ILO.
Reconstruction is correct ? (3) It was adopted in 1999 by the ILO.
(1) It was established in 1986. (4) This Convention has not been ratified
(2) It was a non - Statutory body. by India.
(3) It was located in Mumbai. 31. What is the minimum number of days a
(4) It was dissolved from December 1, 2016. woman employee must have actually
24. Who declared that a strike is an “inherent worked under an employer in the twelve
right of the working men for the purpose of months immediately preceeding the date of
securing justice” ? expected delivery for becoming eligible for
maternity benefit under the Maternity Ben-
(1) Mahatma Gandhi
efit Act, 1961 ?
(2) Karl Marx
(1) Eighty days (2) Ninety days
(3) Sidney and Beatrice Webb
(3) One hundred twenty days
(4) John T. Dunlop
(4) One hundred days
25. In which year, the Calcutta High Court held
32. What is the maximum limit of monthly
that a ‘gherao’ that involved wrongful re-
wages to be taken into account for calcula-
straint of a person belonging to the man-
tion of the compensation under the
agement was a cognizable offence ?
Employee’s Compensation Act, 1923 ?
(1) 1964 (2) 1965
(1) ` 10,000 (2) ` 18,000
(3) 1966 (4) 1967
(3) ` 8,000 (4) ` 15,000
26. In which year the International Federation
33. Under which of the following legislation
of Chemical, Energy, Mining and General
provisions for Rehabilitation and Re-em-
Workers formed ?
ployment are Provided ?
(1) 1985 (2) 1995
(1) Employees State Insurance Act, 1948
(3) 2005 (4) 2016
(2) Employees Compensation Act, 1923
27. Who took the initiative of setting up the Joint (3) Inter - State Migrant Workmen (Regula-
Consultative Board of Industry and Labour tion of Employment and Conditions of
in 1951 ? Services) Act, 1979
(1) V.V. Giri (2) G.L. Nanda (4) Contract Labour (Regulation and Abo-
(3) Khandubhai Desai lition) Act, 1970
(4) Babu Jagjiwan Ram 34. Which one of the following is not covered
28. In which year, India ratified the ILO Con- under Article 39 of the Indian Constitution?
vention concerning the Right of Association (1) Equal pay for equal work for both men
for Agricultural Workers ? and women
(1) 1923 (2) 1924 (2) Protection of Childhood and youth
(3) 1925 (4) 2017 against exploitation
29. The headquarter of Trade Union Interna- (3) Citizens, men and women equally have
tional of Workers in Building, Wood and the right to adequate means of liveli-
Building Materials Industries is located at : hood
(1) New Delhi (2) Paris (4) Securing just and human conditions of
(3) Kolkata (4) Helsinki work
30. Which of the following statements relating 35. The Factories Act, 1948 came into force with
to ILO Convention No. 182 is wrong ? effect from ?
(1) 1st April, 1948 (2) 1st January, 1948 (a) Draft standing orders are to be submit-
(3) 1st August, 1948 (4) 1st October, 1948 ted by the employer to the certifying of-
36. Which of the following labour legislations ficer within six months from the date
are covered under the category of Protective on which the Act becomes applicable
Labour Legislation ? (b) Six copies of such draft standing orders
(a) Minimum wages Act, 1948 are to be submitted to the certifying of-
ficer
(b) Motor Transport workers Act, 1961
(c) Draft standing orders are to be prepared
(c) Factories Act, 1948
in consultation of the workmen em-
(d) Trade Unions Act, 1926 ployed in the industrial establishment
(e) Employees compensation Act, 1923 along with the trade unions if any
Code : (d) A statement with particulars of the
(1) (a) and (e) only workmen employed in this industrial
(2) (a), (c) and (e) only establishment including the name of the
(3) (a), (b) and (c) only trade unions, if any to be submitted
(4) (b), (c) and (d) only along with the draft standing order
37. Which one of the following statements is Code :
true relating to the composition of the Inter- (1) (a), (b) and (d) (2) (a), (c) and (d)
national Labour Conference ? (3) (a) and (d) (4) (b) and (c)
(1) It consists of four delegates nominated 40. A commercial establishment has employed
by each member state. two hundred workmen. Then which of the
(2) It consists of eight delegates nominated following provisions shall be applicable
by each state. under the provisions of the Industrial Dis-
(3) It consists of six delegates nominated putes Act 1947.
by each state. (a) Setting up of Grievance Redressal Ma-
(4) It consists of three delegates nominated chinery
by each member state. (b) Constituting Works Committee
38. Which one of the statements is true relating (c) Provisions of chapter V - B
to the representation of outsiders as office (d) Compulsory reference of disputes to ar-
bearers of any registered Trade Union un- bitration
der the Trade Unions Act, 1926 functioning Code :
other than in an unorganised sector ? (1) (a), (b) and (c) only (2) (a) and (b) only
(1) Not more than one - third of the total (3) (b), (c) and (d) only (4) (a), (b), (c) & (d)
number of office bearers or five which 41. Assertion (A) : Labour Welfare is a relative
ever is more
concept as it is related to time and space.
(2) Not more than one - third of the total
Reason (R) : Welfare is growing and dy-
number of office bearers or five which
namic. The welfare potential changes as a
ever is less
result of which its content keeps on varying
(3) Not more than one - half of the total num- and has to keep pace with the changing
ber of office bearers or six which ever is times.
less
Code :
(4) Not more than one - half of the total num-
(1) Assertion (A) is wrong and Reason (R)
ber of office bearers.
fails to explain (A).
39. Which of the following are true as per the (2) Assertion (A) is correct and Reason (R)
provisions of the Industrial Employment fully explains (A).
(Standing Orders) Act, 1946 ?
(3) Assertion (A) is wrong and Reason (R), 44. Work stress is a chronic ailment caused by
therefore, cannot explain (A). conditions that negatively affect one’s per-
(4) Both Assertion (A) and Reason (R) are formance and/or overall well being of the
wrong. body and mind. Employers, these days, are
42. Assertion (A) : The aims and objectives of concerned about managing stress.
Labour Welfare have progressively changed Which of the following are not the typical
during the last few decades. symptoms of job related stress ?
Reason (R) : It has gradually moved to the (a) Insomnia
era of paternalism with philanthropic ob- (b) Lack of Concentration
jectives from the primitive policing and pla- (c) Anxiety, depression
cating philosophy of Labour welfare. (d) Job insecurity
Code : (e) Extreme anger and mood swings
(1) Assertion (A) is correct but Reason (R) (f) Family conflicts
fails to explain (A).
(g) Strict deadlines
(2) Assertion (A) is correct and Reason (R)
explains (A). (h) Frustration
(3) Assertion (A) is wrong and Reason (R) Code :
is correct. (1) (b) and (h) (2) (d) and (f)
(4) Both Assertion (A) and Reason (R) are (3) (d) and (g) (4) (g) and (h)
wrong. 45. Theories of Labour Welfare have been pro-
43. Labour Welfare Services were divided into pounded after careful study and observa-
two groups by the Committee of Experts on tion of the state of affairs prevalent during
Welfare facilities for industrial workers con- that particular period of time.
vened by the I.L.O. in 1963. They are within Which theory of labour welfare was pro-
the precincts and outside the establishment. pounded after observing “ The factories and
Match the facilities given in List - I with the other industrial workplaces provide ample
type provided in List - II : opportunities for owners and manager of
List - I List - II capital to exploit workers in an unfair man-
(a) Shift allowance (i) Outside establish- ner”,
ment (1) Placating Theory
(b) Administrative (ii) Within precincts (2) Religions Theory
arrangements (3) Policing Theory
within a plant for
(4) Philanthropic Theory
welfare
(c) Programme for (iii) Outside establish- 46. Supply - demand framework predicts that
the welfare of ment termination of any ambitious project de-
women, youth presses a particular segment of Labour mar-
and children ket. This type of prediction is an example
(d) Vocational train- (iv)Within precincts of :
ing for depen- (1) Positive Economics
dants of workers (2) Equillibrium
Codes : (3) Normative Economics
(a) (b) (c) (d) (4) State of Saturation
(1) (ii) (i) (iv) (iii)
47. Let us presume that an individual consumes
(2) (iii) (ii) (iv) (i)
` 500 of consumption of goods and 100
(3) (ii) (iv) (i) (iii)
hours of Leisure per week. The utility index
(4) (iii) (ii) (i) (iv)
would equal 50,000 ‘utils’. Suppose further But the concept of efficiency of labour is it-
that the individual consumes ‘ 400 worth of self vague such as amount of physical out-
goods and 125 hours of Leisure, the utility put, output per man - hour or output per
index would still equal 50,000 ‘utils’. man shift. But output is not the function of
Suppose then that we hold utility constant man alone. There are other factors which
at 50,000 utils, many combinations of util- affect the output. Which among the follow-
ity and Leisure will generate this particular ing is/are not the factor(s) that would affect
level of utility. The locus of such points is the output directly :
called an indifference curve. (a) Physical condition of work
Which among the following is an incorrect (b) Nature of machinery
property of Indifference curve ? (c) Technical process
(1) Indifference curves are downward slop- (d) Quality of raw material
ing. (e) System of management
(2) Higher indifference curves indicate (f) Role of fellow workers
higher levels of utility. (g) Competitors in the market
(3) Indifference curves do not intersect. Code :
(4) Indifference curves are concave to the (1) (a) and (e) (2) (e) and (f)
origin. (3) (f) and (g) (4) (d) and (f)
48. Labour is remunerated through payment of 50. Match the following theories of wages List -
wages. There are different methods of wage I with their propagators List - II :
payment prevalent in different industries in List - I List - II
different countries. But the ideal wage sys-
(a) Standard of Living (i) J.S. Mill
tem should fulfil certain characteristics.
theory
Which among the following is not a charac-
(b) Wage Fund theory (ii) J.B. Clark
teristic :
(1) It should be conducive to the interest of (c) Residual Claimant (iii) Karl Marx
Labour only. theory
(d) Marginal Producti- (iv) Francis A.
(2) It should be devised as to avoid indus-
vity theory Walker
trial conflict.
Codes :
(3) It should be conducive to the interest of
both parties - employer and employee. (a) (b) (c) (d)
(4) It should be fairly simple as well as flex- (1) (iii) (i) (iv) (ii)
ible. (2) (iii) (iv) (ii) (i)
49. Wages of the workers are Normally, the pro- (3) (iii) (ii) (iv) (i)
portionality derived from their efficiency. (4) (iii) (i) (ii) (iv)
ANSWERS
1. (2) 2. (2) 3. (2) 4. (3) 5. (2) 6. (4) 7. (3) 8. (4) 9. (2) 10. (2)
11. (2) 12. (4) 13. (2) 14. (4) 15. (3) 16. (4) 17. (2) 18. (4) 19. (3) 20. (3)
21. (3) 22. (1) 23. (4) 24. (1) 25. (4) 26. (2) 27. (2) 28. (1) 29. (4) 30. (4)
31. (1) 32. (3) 33. (1) 34. (4) 35. (*) 36. (3) 37. (1) 38. (2) 39. (3) 40. (2)
41. (2) 42. (2) 43. (3) 44. (3) 45. (3) 46. (1) 47. (4) 48. (1) 49. (3) 50. (1)
* All
November, 2017
PAPER-III
Read the following passage and answer the bers may then decide that any misgivings they
questions given at the end by picking up the feel are not worth pursuing- that the benefit of
appropriate answer from the given alternatives. any doubt should be given to the group consen-
In principle, a cohesive group-one whose sus. In this way, they may fall victim to a syn-
members generally agree with one another and drome known as ‘groupthink’. Collective deci-
support one another’s judgements-can do a sion making has been defined as “a deteriora-
much better job at decision-making than it could tion of mental efficiency, reality testing and moral
if it were non-cohesive. When cohesiveness is low judgement that results from in-group pressures”.
or lacking entirely, compliance out of fear of re- Based on analyses of major fiascos of inter-
crimination is likely to be strongest. To overcome national diplomacy and military decision mak-
this fear, participants in the group’s deliberations ing, researchers have identified groupthink
need to be confident that they are members in behaviour as a recurring pattern that involves
good standing and that the others will continue several factors; overestimation of the groups
to value their role in the group, whether or not power and morality, manifested, for example, in
they agree about a particular issue under discus- an illusion of invulnerability, which creates ex-
sion. As a member of a group feel more accepted cessive optimism; close- mindedness to warnings
by the others, they acquire greater freedom to say of problems and to alternative view points; and
what they really think, becoming less likely to unwarranted pressures toward uniformity, in-
use deceitful arguments or to play it safe by danc- cluding self-censorship with respect to doubts
ing around issues with conventional comments. about the group’s reasoning and a concomitant
Typically, then, the more cohesive a group be- shared illusion of unanimity concerning group
comes, the less its members will deliberately cen- decisions. Cohesiveness of the decision making
sor what they say out of fear of being punished group is an essential antecedent condition of this
socially for antagonizing their fellow members. syndrome but not a sufficient one. So it is impor-
But group cohesiveness can have pitfalls as tant to work toward identifying the additional
well. While the members of a highly cohesive factors that determine whether group cohesive-
group can feel much free to deviate from the ma- ness will deteriorate into groupthink or allow for
jority, their desire for genuine concurrence on effective decision making.
every important issue often inclines them not to 1. Why the author does think that the cohesive
use this freedom. In a highly cohesive group of
group can do a much better job at decision
decision makers, the danger is not that individu-
making than it could if it were non-cohe-
als will conceal objections they harbour regard-
sive ?
ing a proposal favoured by the majority, but that
they think the proposal is a good one without (a) The members of a highly cohesive
attempting to carry out a critical scrutiny that group can feel much free to deviate from
could reveal grounds for strong objections. Mem- the majority
(b) Individuals will not conceal objection not demonstrate an ‘Illusion of Unanim-
they harbour regarding a proposal ity’ .
favoured by the majority. 4. The passage mentions which one of the fol-
(c) Participants in the group’s delibera- lowing as a component of groupthink ?
tions are confident that they are mem- (1) Unjustified suspicions among group
bers in good standing and that the oth- members regarding an adversary’s in-
ers will continue to value their role in tentions
the group, whether or not they agree (2) Group members working under unusu-
about a particular issue under discus- ally high stress, leading to illusions of
sion. invulnerability.
Code : (3) strong belief that the group’s decision
(1) only (a) (2) only (b) are right.
(3) both (a) and (c) (4) (a), (b) and (c) (4) The deliberate use of conventional com-
2. Which one of the following most accurately ments.
expresses the main point of the passage ? 5. What the author of the passage ultimately
(1) Despite its value in encouraging frank concludes ?
discussions, high cohesion can lead to (1) Group cohesiveness is always good
a debilitating type of group decision (2) It is important to work towards identi-
making called groupthink. fying the additional factors that deter-
(2) Group members can guard against mine whether group cohesiveness will
group thinking if they have a good un- deteriorate into groupthink or allow for
derstanding of the critical role played effective decision-making.
by cohesion. (3) Groupthink is solely responsible for in-
(3) Only diplomacy and military affairs effective decision-making.
would suffer if there is tendency of (4) The causal factors that transform group
groupthink cohesion into groupthink are unique to
(4) Low cohesion is better than high cohe- each case.
sion resulting in groupthink. 6. When driven by group cohesion, a decision
3. A group of closely associated colleagues has is taken only to be lamented for later is
made a disastrous diplomatic decision af- called :
ter a series of meetings marked by disagree- (1) Abilene effect
ment over conflicting alternatives. It can be (2) Placebo effect
inferred from the passage that the author (3) Hawthorne effect
would most likely to say that this Scenario. (4) Halo effect
(1) Provides evidence of chronic indecision, 7. In which year the Amalgamated Society of
thus indicating a weak level of cohesion Engineers was established in Great Britain ?
in general. (1) 1837 (2) 1850
(2) Indicates that the group’s cohesiveness (3) 1854 (4) 1859
was coupled with some other factor to
8. Assertion (A) : Workforce diversity requires
produce a groupthink fiasco. employers to be more sensitive to the differ-
(3) Provides no evidence that groupthink ences that each group brings to the work
played an effective role in group deci- setting.
sion making.
Reason (R) : Employees need to be respon-
(4) Provides evidence that groupthink can sive to the values, needs, interests and ex-
develop even in some groups that do pectations of fellow employees.
Code : (3) creating quality consciousness

(1) (A) is right but (R) is wrong. (4) Creating good public image
(2) (A) is wrong but (R) is right. 12. A worker retires from a factory after putting
(3) Both (A) and (R) are right but (R) does in twenty years of continuous service. His
not explain (A). last monthly wages drawn was ` 45,500.
(4) Both (A) and (R) are right and (R) ex- What is the amount of gratuity the worker
plains (A). is entitled to under the payment of Gratuity
9. A Commercial establishment has engaged Act, 1972.
one hundred and fifty workmen. If it wants (1) ` 5,75,000 (2) ` 5,25,000
to retrench any workman who has com- (3) ` 7,50,000 (4) ` 4,55,000
pleted one year of continuous service in the 13. Who had given the pluralist approach to
establishment, then which of the conditions industrial relations indicating ‘job regula-
are to be followed under the Industrial Dis- tion’ drawing from the theories of anomie,
putes Act, 1947 ? collective bargaining and industrial democ-
(a) It has to serve one month notice in writ- racy ?
ing in advance or pay in lieu of such (1) H.A. Clegg (2) Alan Fox
notice, wages for the notice period. (3) R. Commons (4) Allan Flanders
(b) It has to serve three months notice in 14. Buzz-Sessions help in :
writing in advance or pay in lieu of such (a) making workers versatile
notice, wages for the notice period. (b) making labour become more skilled and
(c) Pay retrenchment compensation at the hard working
rate of fifteen days average pay for ev- (c) eliminating those employees who sit
ery completed year of continuous ser- through the conference session but do
vice or any part thereof in excess of six not participate
months.
(d) stimulating discussion and participa-
(d) Notice in the prescribed manner is tion from each member of group
served on the appropriate Government. Code :
(e) Prior permission of the appropriate (1) (a) and (b) (2) (a), (b) and (c)
Government has been obtained on an
(3) (c), and (d) (4) (b), (c) and (d)
application made in this behalf.
15. An employee engaged in an industrial es-
Code :
tablishment draws wages of ` 20,000 per
(1) (a), (c) and (d) month. What is the amount of bonus he shall
(2) (b), (c) and (e) be entitled to, if it is to be paid at the rate of
(3) (b), (d) and (e) 9% by the employer for an accounting year
(4) (a), (c), (d) and (e) under the provisions of the payment of Bo-
10. The National Association of Letter Carriers nus Act, 1965 ?
was started in USA in the year : (1) Rupees Seven thousand five hundred
(1) 1887 (2) 1888 sixty only
(3) 1889 (4) 1890 (2) Rupees Eighteen thousand only
(3) Rupees Eight thousand one hundred
11. Which one of the following is not a benefit
thirty only
of Total Quality management ?
(4) Rupees Ten thousand six hundred forty
(1) Maximising cost
only
(2) Providing greater satisfaction to all con-
cerned 16. Assertion (A) : Collective bargaining pro-
vides for procedural and substantial rules.
Reason (R) : It incorporates mechanism for seventy five rupees per month for every
dealing with interpretations and implemen- non-functional establishment having
tation of agreements as well as resolving no contributory member and one thou-
conflicts and substantial rules concerning sand rupees per month for other estab-
the substance of the agreements in both lishments.
markets and managerial relationships. 18. Assertion (A) : Both Weber’s Bureaucracy
Code : and Taylor’s scientific management
(1) Assertion (A) is wrong and, thus, Rea- emphasise on rationality, predictability,
son (R) fails to explain (A). impersonality, technical competence and
(2) Assertion (A) is only partially true and, authoritarianism.
therefore, the Reason (R) only partially Reason (R) : Though Weber’s writings were
explains (A). less operational than Taylor’s, yet ‘ideal
(3) Assertion (A) is correct and Reason (R) bureaucracy ‘ describes many contempo-
explains (A). rary organisations.
(4) Assertion (A) is correct and Reason (R) Code :
is wrong. (1) (A) is right and (R) is wrong.
17. In March 2017, the Government of India in (2) (A) is wrong and (R) is right.
the Ministry of labour and Employment has (3) Both (A) and (R) are right.
revised the administrative charges payable (4) Both (A) and (R) are wrong.
by the employers under the Employees 19. Which of the following are the trends in In-
Provident Fund Scheme, 1952. Which one ternational Industrial Relations System ?
of the following statements given is correct ? (a) MNCs try to cultivate centralised eth-
(1) 0.65 percent (Zero point six five per- nocentric approach to the extent of
cent) of the pay subject to a minimum of pressurising the national Governments
seventy five rupees per month for every to bring out unprecedented economic
non-functional establishments having and labour reforms.
no contributory member and five hun- (b) MNCs aspire for hassle free business
dred rupees per month for other estab- climate and for this, adopt the practice
lishments of replacing expensive labour with
(2) 0.67 percent (Zero point six seven per- cheap labour through outsourcing.
cent) of the pay subject to a minimum of (c) MNCs promote individual centric Hu-
one hundred rupees per month for ev- man Resource policies to keep trade
ery non-functional establishment hav- unions at bay.
ing no contributory member and five
(d) MNCs act like ‘octopus’ . Nations, trade
hundred rupees per month for other es-
unions and other actors of Industrial
tablishments
Relations only grapple with the unfath-
(3) 0.75 percent (Zero point seven five per- omable strength of MNCs.
cent) of the pay subject to a minimum of
Code :
one hundred rupees per month for ev-
ery non-functional establishment hav- (1) (a) and (c)
ing no contributory member and one (2) (b), (c) and (d)
thousand rupees per month for other (3) (a), (c) and (d)
establishments (4) (a), (b), (c) and (d)
(4) 0.50 percent (Zero point five zero per- 20. Match List - A with List - B and select correct
cent) of the pay subject to a minimum of answer by using the code given below :
List - A List - B (b) It regulates the relations between work-

(a) Application of psycho-(i) Henry L. men and employer.
logy to industry and Gantt (c) It does not regulate the relations between
managament workmen and workmen.
(b) Program Evaluation (ii) Walter Dill (d) It regulates relations between employ-
and Review Scott ers and employers.
Technique Code :
(c) Widely acclaimed (iii) Lillian (1) only (a) (2) (a) and (b)
first lady of manage- Gilbreth (3) only (c) (4) (b), (c) and (d)
ment 24. Calculate the amount of compensation to be
(d) Application of (iv) Hugo paid to the dependants of a deceased em-
psychology to Munsterberg ployee, where death results from the injury,
advertising, under the provisions of Employees, Com-
marketing and pensation Act, 1923. (Monthly wages
personnel. drawn was ‘ 15,000 and Relevant factor is
Codes : 139.13)
(a) (b) (c) (d) (1) ` 1,20,000 (2) ` 4,52,400
(1) (ii) (i) (iv) (iii) (3) ` 6,50,210 (4) ` 5,56,520
(2) (iv) (i) (iii) (ii) 25. Which one of the following is not a barrier
(3) (iii) (iv) (i) (ii) to communication ?
(4) (iii) (i) (ii) (iv) (1) feedback (2) ambiguity
21. Recently the Government of India has en- (3) lack of trust
forced ‘the Ease of compliance to Maintain (4) distortions in communication
Registers under various Labour Laws Rules, 26. Which of the following statements relating
2017’ for maintenance of combined regis- to the industrial relations policy in India
ters provided under various labour legisla- is/are not true ?
tions. Which of the following legislations is (a) Industrial relations in India is highly
not covered under the above Rules ? regulated by state intervention.
(1) Equal Remuneration Act, 1976 (b) Industrial relations policy in India tried
(2) Mines Act, 1952 to shift from Courts to Codes.
(3) Factories Act, 1948 (c) Tripartism was a strong policy shift in
(4) Minimum Wages Act, 1948 industrial relations in India.
22. According to which one of the following ap- (d) Free and compulsory collective bargain-
proaches, management is the function of ing was the chief characteristic feature
planning, organising, leading and control- of industrial relations policy in India.
ling ? Code :
(1) Process approach (1) only (a) (2) only (b)
(2) Systems approach (3) (a), (b), (c) (4) only (d)
(3) Quantitative approach 27. For the first time in India, medical benefit as
(4) Human behaviour approach a non-cash benefit was provided under :
23. Which of the following statements about the (1) Maternity Benefit Act, 1961
definition of ‘Trade Union‘ as given in the (2) Employees State Insurance Act, 1948
Trade Unions Act, 1926 is not true ?
(3) Factories Act, 1948
(a) A trade union is any combination,
(4) Mines Act, 1952
whether temporary or permanent.
28. Who has propagated the bipartite, tripartite (1) These unions fall only under the cat-
and multi-partite aspects of industrial rela- egory of industrial unions
tions with human relations as the invisible (2) These unions fall only under the cat-
energy binding them ? egory of general unions
(1) Sidney and Beatrice Webb (3) These unions fall only under the cat-
(2) H.A. Clegg egory of craft unions
(3) John H. Richardson (4) These unions fall under all the three cat-
(4) Alan Fox egories i.e., industrial unions, general
29. In a conflict situation, which of the follow- unions and craft unions
ing errors makes the bargainers assume that 34. In which year the National Renewal Fund
their gain must come at the expense of the was abolished by the Government ?
other party ? (1) 1992 (2) 1996
(1) Mythical Fixed Pie (3) 2000 (4) 2004
(2) Conflict Dilemma 35. Match the following :
(3) Winner’s Curse List-I List-II
(4) Escalation of Commitment (a) Ethnocentric (i) Primary positions
30. Under the Minimum Wages Act, 1948, Approach held by nationals
which one of the following is not a pre- from host country
scribed wagesperiod for fixation of mini- (b) Polycentric (ii) Qualified people are
mum rate of wages ? Approach hired at home and
(1) by the hour (2) by the day from abroad irrespec-
(3) by the week (4) by the month tive of nationality
31. Allocable surplus for a banking company (c) Regiocentric (iii) Primary positions are
under the provisions of the payment of Bo- Approach held by citizens of
nus Act, 1965 means : home country
(1) Sixty seven percent of the available sur- (d) Geocentric (iv) Primary positions are
plus in an accounting year Approach held by people from
same region with
(2) Sixty percent of the available surplus
similar cultures, expe-
in an accounting year
riences and manage-
(3) Sixty six percent of the available sur- ment practices
plus in an accounting year
Codes :
(4) Sixty six percent of the available sur-
(a) (b) (c) (d)
plus in the financial year
(1) (iv) (i) (iii) (ii)
32. Arrange the steps of designing Management
(2) (ii) (iv) (i) (iii)
Information System in correct sequence :
(3) (iii) (ii) (i) (iv)
(a) Analyse information requirements
(4) (iii) (i) (iv) (ii)
(b) Aggregate the decisions
(c) Design information processing 36. An industrial establishment employing one
thousand employees has to pay the wages
(d) Analyse the decision system
to the employees within which period after
Code : the last day of the wage period in respect of
(1) (a), (c), (b), (d) (2) (a), (b), (c), (d) which the wages are payable under the pro-
(3) (d), (a), (b), (c) (4) (a), (d), (b), (c) visions of the payment of Wages Act, 1936 ?
33. Which of the following statements relating (1) Before the expiry of the seventh day
to primary unions in India is correct ? (2) Before the expiry of the fifth day
(3) Before the expiry of the tenth day dred fifty workers covered under the Facto-
(4) Before the expiry of the eighth day ries Act, 1948 ?
37. Two distinct schools of thought have (1) Ambulance Room
emerged in industrial relations. The first (2) Canteen
one, known as ‘Personnel Management (3) Shelter and rest rooms
School’, emphasised the “employers’ solu- (4) Cooling drinking water
tion” to labour problems. 40. Which of the following statements relating
The second school of thought, known as ‘In- to the source of industrial disputes in the
stitutional Labour Economics School’ em- Indian context is/are correct ?
phasized the workers’ solution of trade (a) Disputes relating to the implementation
unionism and the communities’ solution of of labour laws and regulations fall un-
protective labour legislation and social in- der the category of ‘disputes concern-
surance to labour problems. ing rights’.
Which of the following inferences are right (b) Disputes relating to standing orders fall
relating to the broad themes of the above under the category of ‘disputes concern-
two schools ? ing rights.’
(a) The first school takes an “internal” or (c) Disputes concerning collective agree-
inside-the-firm perspective on the solu- ments and settlements fall under the
tion of labour problems. category of ‘disputes concerning
(b) The second school favoured institu- rights.’
tional forms of power balancing and Code :
joint governance in the employment re- (1) only (a) is correct.
lationship.
(2) only (a) and (b) are correct.
(c) The first school takes an “external” or
(3) only (b) and (c) are correct.
outside-the-firm perspective on the so-
(4) (a), (b) and (c) are correct.
lution of labour problems.
(d) The second school emphasized upon 41. Which of the following are the three dimen-
building a community of interest be- sions of Mendenhall and Oddou Training
tween labour and management for Model for expatriates ?
which the employer has to take the ini- (a) Training Methods
tiative. (b) Effectiveness Measurement
Code : (c) Levels of Training
(1) only (a) and (b) (d) Duration of Training
(2) only (b) and (c) (e) Selection of Trainer
(3) only (b) and (d) Code :
(4) (b), (c) and (d) (1) (a), (b), (c) (2) (a), (c), (d)
38. Which of the following is not a characteris- (3) (a), (c), (e) (4) (b), (d), (e)
tic of culture according to Hofstede ? 42. A woman who legally adopts a child below
(1) Power distance the age of three months shall be entitled to
(2) Person’s relationship with natural maternity benefit from the date the child is
world handed over to the adopting mother for a
period of how many weeks under the provi-
(3) Masculinity and Femininity
sions of the Maternity Benefit (Amend-
(4) Individualism Vs Collectivism ment ) Act, 2017 ?
39. Which of the following facilities is to be pro- (1) Twelve weeks
vided by an employer employing two hun- (2) Twenty six weeks
(3) Eighteen weeks 46. Who has advanced ‘coping styles’ for role
(4) Eight weeks stress combining avoidance and approach
43. Which of the following laydown Universal to role stress with laws of control of inter-
nality and externality ?
Ethical principles for multinationals ?
(1) Lorsch and Lawrence
(a) The United Nations Declaration of Hu-
man Rights (2) Litwin and Stringer
(b) The OECD Guidelines for Multina- (3) Udai Pareek
tional Enterprises (4) T.V. Rao
(c) The Caux Roundtable Principles of 47. Selig Perlman, whose views are known as
Business ‘Job-Consciousness Theory’ of trade Union-
Code : ism, observed that the trade Union is the
(1) (a) and (b) only outcome of pessimistic outlook of a
‘manualist’ worker.
(2) (b) and (c) only
(3) (a) and (c) only Which statement is not true in the context of
Perlman’s theory :
(4) (a), (b) and (c)
(1) In order to protect one’s limited job op-
44. Various schemes of workers participation portunity, a worker starts uniting with
in management were launched in different his/her fellow ‘manualists’.
years and with varied objectives. Match the
(2) Emergence of trade unions mainly from
schemes (List-I) with year of their introduc-
‘Job-Consciousness’ is not tenable in all
tion (List - II) :
situations.
List - I List - II (3) Genuine Trade Unions are inherently
(a) Employees Director in (i) 1958 ‘bread and butter’ trade unions.
Nationalised banks (4) After studying the American situation,
(b) Workers’ share in (ii) 1970 Perlman observed that during periods
equity of expansion of economy, the American
(c) Workers participation in (iii) 1985 worker had the consciousness of abun-
industry at the levels of dance, but this phenomenon existed
plant and shop floor only for a few years. The optimism of
the period of plenty was superseded by
(d) Joint Management Council (iv) 1975
pessimism of scarcity. The moment such
Codes : a situation emerged, trade unions also
(a) (b) (c) (d) emerged.
(1) (ii) (iii) (iv) (i) 48. Which of the following statements about dis-
(2) (iv) (ii) (iii) (i) ciplinary process are true ?
(3) (ii) (i) (iii) (iv) (a) Under Master-Servant doctrine, servant
(4) (iv) (iii) (ii) (i) worked at the will of the master, with
45. In which of the following employments the no subsisting right to continue in em-
Equal Remuneration Act, 1976 was first ployment under laissez fair policy.
enforced ? (b) Now no workman can be charge
(1) Employments under Central and State sheeted and punished unless one has
Governments committed a misconduct as per the rel-
(2) Plantations to which the Plantations evant standing orders.
Labour Act, 1951 applies. (c) Misconduct is not defined in any Act
(3) Mines as defined under the Mines Act, but given under the model standing or-
1952 ders which can be adopted in certified
standing orders.
(4) Local Authorities
Code : Code :
(1) (b) and (c) (2) (a) and (b) (1) (a) only (2) (a) and (b)
(3) (a) and (c) (4) (a), (b) and (c) (3) (b) and (c) (4) (a), (b) and (c)
49. Under the power to make exempting orders 52. Which of the following is a statutory work-
of the Factories Act, 1948, the State Govern- ers’ participation in management forum ?
ment can fix the maximum time of overtime (1) Joint Management Council
work for any quarter is : (2) Shop Council
(1) Fifty hours (2) Seventy five hours (3) Joint Council (4) Works Committee
(3) Sixty hours (4) Ninety hours 53. ‘Pygmalion effect’ is associated with :
50. Which one of the following statements re- (1) Self-aggredisement
lating to payment of subsistence allowance (2) Self-defence
under the Industrial Employment (standing (3) Self fulfilling prophecy
orders) Act, 1946 is not correct ? (4) Self denial
(1) Subsistence allowance shall be at the 54. An adolescent who has been given a certifi-
rate of fifty percent of the wages which cate of fitness to work, has worked for 232
the workman was entitled to immedi- days during the calendar year 2016 in a fac-
ately preceding the date of such suspen- tory. He has been on leave with wages for
sion, for the first ninety days ten days during the year. How many days
(2) Subsistence allowance shall be at the of leave with wages he shall be entitled to
rate of Seventy-five percent of such during the year 2017 ?
wages for the remaining period of sus- (1) Ten days (2) Twelve days
pension if the delay in the completion (3) Fifteen days (4) Nil
of disciplinary proceedings against
55. When a union signs an agreement with
such workman is not directly attribut-
management for wage revision and other
able to the conduct of such workman
benefits, in most of the cases non-members
(3) If any dispute arises regarding the sub- also get the benefit without either paying
sistence allowance payable to a work- subscription or participating in union
man, the workman or the employer con- meetings and other struggles. Such non
cerned may refer the dispute to the members are called :
Labour Court Constituted under the In- (1) Parasites (2) Fence sitters
dustrial Disputes Act, 1947
(3) Free riders (4) Opportunists
(4) If any dispute arises regarding the sub-
56. Match the following theories of leadership
sistence allowance payable to a work-
(List-I) with their propagator (List-II) :
man, the appropriate Government may
refer the dispute to the Industrial Tribu- List-I List-II
nal constituted under the Industrial (a) Leader Member (i) Robert House
Disputes Act, 1947 Exchange Theory
51. ‘Knowledge workers’ are : (b) Path Goal Theory (ii) Ken Blanchard
(a) the workers whose main capital is (c) Situational Theory (iii) Fred Fiedler
knowledge (d) Contingency Theory(iv) George Graen
(b) the workers whose jobs are designed Codes :
around the acquisition and application (a) (b) (c) (d)
of information (1) (iv) (i) (ii) (iii)
(c) the workers whose jobs concentrate on (2) (iv) (ii) (i) (iii)
routine problems (3) (ii) (i) (iii) (iv)
(4) (iii) (ii) (i) (iv)
57. Which of the following is the correct set of (1) Chief Labour Commissioner (Central)
contingencies identified by William (2) Director General (Labour Welfare)
Beveridge in his comprehensive social se- (3) Chief Commissioner (Labour Welfare)
curity scheme ? (4) Union Minister for Labour and Employ-
(1) Want, sickness, disability, squalor and ment
idleness
61. Who defined grievance as, “any discontent
(2) Want, disease, old age, squalor and un- or dissatisfaction, whether expressed or not
employment and whether valid or not, arising out of any-
(3) Want, disease, ignorance, squalor and thing connected with the company that an
idleness employee thinks, believes or even feels is
(4) Disease, invalidity, old age, unemploy- unfair, unjust, or inequitable” ?
ment and ignorance (1) Dale Yoder
58. Who is associated with the approaches to (2) Paul Pigors
Disciplinary action such as judicial ap- (3) Michael J. Jucius
proach, human relations approach, human (4) Charles A. Myers
resource approach, group discipline ap-
proach and leadership approach ? 62. Who has developed the ‘Learning and Per-
formance Wheel’ ?
(1) N.N. Chatterjee
(1) Paul Brenthal et. al
(2) Mirza S. Saiddain
(2) F.J. Roethlisberger et. al
(3) Arun Monappa
(3) Leonard and Zeace Nadlar
(4) C.B. Mamoria
(4) Udai Pareek et. al
59. Match phases of change process (List - I)
with their propagators (List - II) : 63. Match the following List - I with List - II :
List-I List-II List - I List - II
(a) Unfreezing, Changing, (i) Nadler kand (a) Malaviya (i) Minimum wages
Freezing Tushman Committee
(b) Awakening, Mobili- (ii) Beckhard & (b) B. P. Adarkar (ii) Social security for
sing, Reinforcing Renbern Report unorganised
Harris labour
(c) D. Aykroid’s (iii) Labour welfare
(c) Energizing, Envisio- (iii) Kurt Lewin
formula
ning, and Enabling
(d) Dissatisfaction with (iv) Neol Tirchy (d) Arjun Sengupta (iv) Employees’ State
the status quo, clear & Devanna Committee Insurance
goal, awareness of Codes :
practical first steps (a) (b) (c) (d)
Codes : (1) (iii) (ii) (iv) (i)
(a) (b) (c) (d) (2) (iii) (i) (iv) (ii)
(1) (iii) (ii) (i) (iv) (3) (iii) (iv) (i) (ii)
(2) (iii) (iv) (i) (ii) (4) (iv) (iii) (i) (ii)
(3) (iii) (i) (iv) (ii) 64. A dispute has arisen regarding admission
(4) (iii) (ii) (iv) (i) of membership of a union which is a regis-
tered and recognised Trade Union. Few
60. Who among the following shall be the chair-
workers had filed a joint application for
person of the National Security Board con-
membership of that union. The application
stituted under the Unorganised Workers’
was not considered because the application
Social Security Act, 2008 ?
was not in accordance with the procedure (b) Rise of Trade (ii) Political
laid down by the union. Aggrieved by this, Unionism Liberalism
the workers filed a complaint before the Reg- (c) Rise of socialist and (iii) Early Industri-
istrar of Trade Unions under Section 28 (1- Revolutionary ideas alism
A). Which one among the following is com- (d) Rise of Labour (iv) Marxism
petent authority to settle the issue ? Parties
(1) Registrar of Trade Unions Codes :
(2) Industrial Tribunal (a) (b) (c) (d)
(3) High Court (1) (iii) (i) (iv) (ii)
(4) Civil Court of the competent jurisdic- (2) (iii) (ii) (iv) (i)
tion
(3) (iii) (iv) (i) (ii)
65. The HRD matrix linking HRD subsystems (4) (iv) (ii) (iii) (i)
to development dimensions has been ad-
vanced by : 69. Which of the following statements about HR
(1) Dharani P. Sinha score-card are true ?
(2) D.M. Pestonjee (a) Measurement is central to HR score-
card
(3) Udai Pareek
(b) HR architecture inclusive of sum of HR
(4) T.V. Rao
function; the broader HR system and the
66. Before the enactment of the Inter-State Mi- resulting employee behaviour is crucial
grant Workmen (Regulation of Employment to HR scorecard
and Conditions of Service) Act, 1979 by the
(c) Measurements generally include total
Union Government which of the following
compensation, cost per hire, employee
States had an exclusive law relating to the
turnover, job satisfaction levels, ap-
migrant labour ?
praisal categories etc.
(1) Odisha (2) Assam
(d) Capability, commitment, competencies,
(3) Bihar (4) Tamilnadu
learning outcomes are difficult to be
67. The Industrial Disputes Act, 1947 empow- measured resulting into a difference
ers the appropriate Government to consti- between ‘ What is measured ‘ and what
tute a court of inquiry to inquire into any is important in HR
matter appearing to be connected with or Code :
relevant to an industrial dispute. It is the
(1) (a), (d) (2) (a), (c), (d)
duty of the court of inquiry to inquire into
matters referred to it and submit its report to (3) (a), (b), (d) (4) (a), (b), (c), (d)
the appropriate Government, ordinarily 70. Which one of the following Acts, explains
within which period from the commence- the meaning of “Badli workman” ?
ment of its inquiry : (1) Factories Act, 1948
(1) One month (2) Two months (2) Industrial Disputes Act, 1947
(3) Four months (4) Six months (3) Industrial Employment (Standing Or-
68. Associate the following conditions (List-I) ders) Act, 1946
with the period in which they prevailed (4) Trade Unions Act, 1926
(List-II) : 71. Which one of the following is not correct
List-I List-II relating to working hours for children un-
(a) Unbridled individua- (i) Welfarism and der the Factories Act, 1948 ?
lism, freedom of Post Welfarism (1) Maximum hours of work is four and
contract and laissez- half hours in any day
faire
(2) No child shall be employed during night (c) Complementors can help both buyers
(3) The hours of work including rest should and suppliers to increase their pie by
be limited to a maximum spread over add-on values.
period of five and half hours (d) If Complimentors are too Powerful ; then
(4) No female child shall be allowed to both buyers and suppliers can form coa-
work in any factory between 7 pm. to 8 litions.
am. Code :
72. Assertion (A) : Between ‘hire and fire’ policy (1) (a), (c), (d) only (2) (a), (b), (d) only
and VRS, the later is considered as a strat- (3) (b), (c), (d) only (4) (a), (b), (c) and (d)
egy of less severe severance. 74. Arrange the following Acts in a sequence
Reason (R) : VRS is conceived as a win-win according to their years of their enactment
situation because organisations gain by rein USA starting from the earliest to the lat-
ducing the surplus and in right sizing the est :
employee structure. Employees, on the other (a) Wagner Act
hand may lose jobs, but gain sizeable sever- (b) Landrum-Griffin Act
ance benefits to face post-VRS problems. (c) Narris-LaGuaradia Act
Code : (d) Taft-Hartley Act
(1) (A) is wrong and (R) is right. Code :
(2) (A) and (R) are right and (R) explains (1) (a), (b), (c), (d) (2) (c), (a), (d), (b)
the (A).
(3) (a), (c), (b), (d) (4) (b), (c), (a), (d)
(3) (A) and (R) are right but (R) doesn’t ex-
75. Which one of the following does not find
plain the (A).
place under the Factories (Amendment) Bill
(4) (A) is right and (R) is wrong.
2016 initiated by the Government ?
73. Michael Porter has given the ‘Five Forces’ (1) Enhance the limit of overtime hours to
model of strategic management. The sixth a maximum of one hundred hours per
force is given by G. Ghemawat and D. Collis quarter under section 64.
called ‘ COMPLEMENTORS’. Which of the
(2) Enhance the limit of overtime hours to
following statements about the 6th force are
a maximum of one hundred twenty five
true ?
hours per quarter in public interest un-
(a) Complementors are groups from which der section 65.
buyers purchase complementary ser-
(3) Empower the Central Government in
vices and groups to whom suppliers
addition to the State Governments to
sell complementary products.
make exempting rules and exempting
(b) These are different competitive forces orders in respect of hours of work on
from the rest of the 5 forces given by overtime in a quarter.
Michael Porter.
(4) Enhance the limit of total number of
hours of work in a week including over-
time to a maximum of seventy five hours.
ANSWERS
1. (4) 2. (1) 3. (2) 4. (3) 5. (2) 6. (1) 7. (2) 8. (3) 9. (1) 10. (3)
11. (1) 12. (2) 13. (4) 14. (3) 15. (1) 16. (3) 17. (1) 18. (3) 19. (4) 20. (2)
21. (3) 22. (1) 23. (3) 24. (4) 25. (1) 26. (4) 27. (2) 28. (3) 29. (1) 30. (3)
31. (2) 32. (3) 33. (4) 34. (3) 35. (4) 36. (3) 37. (1) 38. (2) 39. (3) 40. (4)
41. (2) 42. (1) 43. (4) 44. (1) 45. (2) 46. (3) 47. (2) 48. (4) 49. (2) 50. (4)
51. (2) 52. (4) 53. (3) 54. (2) 55. (3) 56. (1) 57. (3) 58. (1) 59. (2) 60. (4)
61. (3) 62. (1) 63. (3) 64. (2) 65. (4) 66. (1) 67. (4) 68. (1) 69. (4) 70. (3)
71. (3) 72. (2) 73. (4) 74. (2) 75. (4)
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Some other Definitions

Marketing Production Finance Intermediate

Branch Plant Chief Middle

Sales Foremen or Accounts of Operating

Salesmen Workers Clerks Rank and File

Difference Between Top, Middle and Lower Level of Management

A brief discussion of each of these functions can be explained as follow:

organisation. Directing is an important function of management which involves communicating and

SCHOOL OF MANAGEMENT THOUGHT

Classical Scientific Management

Meaning of Scientific Management

Definition of Scientific Management

Principles of Scientific Management

Techniques of Scientific Management

Advantages of Scientific Management

Disadvantages of Scientific Management

Classical Administrative School

Human Relations School

Differences between Fayol and Taylor Contribution

Basis Henry Fayol F.W Taylor

(Maslow’s Motivation Model)

Theory X : authoritarion, Theory Y : Liberating and

Concepts of System Approach to Management

Contributions of Systems Approach to Management

Contingency School of Management

Management Information System

Quality School of Management

Roles Performed by Managers

Managerial Skills at Various Levels

Where it is to Planning How It is to

Criteria for Effective Goals

Steps in Planning Process

4. Planning involves choice & decision making.

5. False sense of security

External Limitations of Planning

Formal Organisation Structure Depicted by Organisational Chart

FIGURE 1 The organisational process.

Formal and Informal Organisation

Disadvantages of Informal Organisation

m Functional authority is authority delegated to an individual or department over specific

Centralisation & Decentralisation

Importance of Directing Function

The Control Process

Types of Organisational Control

Inputs Conversion Outputs

Feedforward Concurrent Feedback

m Feedback controls involve reviewing information to determine whether performance meets

Organisational Control Techniques

Following are the Principles of Coordination

Sender Messages Transmission Recipient Receiver

Types of Business Communication

Pros & Cons of Grapevine Communication

Disadvantages of Grapevine Communication

Communication Barriers – Reason for Communication Breakdown

Overcoming Communication Barriers

Seven C’s of Effective Communication

MULTIPLE CHOICE QUESTIONS

MEANING AND DEFINITION OF PERSONNEL MANAGEMENT