HRM

1. What are the major HR challenges in VUCA AND SMAC

environment?

2. What are the sources of internal and external recruitment? What

are the factors that need to be considered while deciding whether
to target the internal or external source of recruitment?

There are two main factors a business must consider when deciding whether to
internally or externally recruit candidates; quality and cost. Your company must
decide which process which will be the most cost effective, whilst also
successfully securing quality candidates.
3. What are the various steps in the Training Cycle?
The Training Cycle has six stages:
 Identify Training Needs.
 Design Training.
 Develop Training.
 Deliver Training.
 Apply Learning.
 Evaluate Program.

4. What is C to C? Explain the significant fixed and variable

components of an employee’s C to C.
Cost to Company or CTC is the cost that the company would incur on an
employee. CTC is the cumulative of all allowances and incentives added to the
basic salary. This may include free meals, office space rent, free cabs,
subsidized loans, etc.

CTC = Direct Benefits + Indirect Benefits + Savings Contributions

Fixed pay is what is defined and fixed and you will get the same salary which was
stated in the letter of salary structure. Your package = Fixed Pay(X% of total
package) + Variable pay(100-X% of total package). So Variable pay is the part of
your salary package.

Variable pay is the portion of compensation determined by employee

performance. When employees hit their goals, variable payment is provided as a
type of bonus, otherwise known as incentive, pay or commission. Base salary, on
the other hand, is fixed and paid out regardless of employees meeting their goals.
5. What is a performance management system? How is it different
from performance appraisal?
A performance management system is a mechanism for tracking the
performance of employees consistently and measurably. It allows the company
to ensure that employees and departments across the organization are working
effectively towards achieving the business' strategic goals.
Performance appraisal is the evaluation of the relative worth to the company of a
person’s services on his/her job and the potentials he/she possesses.
6. Explain a model disciplinary procedure.

Procedure for Taking Disciplinary Action

 Preliminary investigation in order to establish a prima facie case
 Issue of a charge sheet
 Suspension of a pending enquiry, if necessary
 Notice of enquiry
 Conduct of enquiry and providing opportunity to the accused to defend
himself/herself, that is, following up of the principle of natural justice
 Recording of findings by the enquiry officer
 Awarding punishment
 Communication of punishment
 Implementation of penalty
 Proper follow-up
Organizational dynamics
7. What is the difference between transactional and
transformational leadership? Give illustrations to support your
views.

Transactional Leadership Transformational Leadership

Leadership is responsive Leadership is proactive
Works within the organizational culture. Works to change the organizational
culture by implementing new ideas.
Employees achieve objectives through rewards Employees achieve objectives through
and punishments set by the leader. higher ideals and moral values.
Motivates followers by appealing to their self- Motivates followers by encouraging
interest. them to put group interests first.
Management-by-exception Individualized consideration
maintain the status quo; stress correct actions to Each behavior is directed to each
improve performance. individual to express consideration and
support.
Intellectual stimulation or motivation is zero. Intellectual stimulation
Promote creative and innovative ideas
to solve problems.

8. What are the different stages of group or team formation?

Explain each stage.
9. What are different methods by which team members can resolve
their conflicts?
Common Approaches to Conflict Resolution
Experts agree that it is better to address conflict sooner rather than later to prevent
escalation that would affect team performance. The five approaches are described
in the following text. An easy way to remember these approaches are as “no way,
my way, halfway, your way, and our way.”

Avoiding (no way)

Rarely, but occasionally, the best approach to conflict is to ignore it. When the
reason for the conflict is trivial (as when someone was inadvertently left off an e-
mail) or when waiting for more information would help resolve the conflict, the
avoidance approach is appropriate.

Dominating (my way)

The dominating style (“my way or the highway”) may actually be an appropriate
response in emergency situations or when quick, decisive action is needed. It may
also be the only effective approach for unpopular decisions or when individual
team members are personally affected.

Compromising (halfway)
Compromising can be an effective approach
 when the arguments on both sides are equally rationale.
 when the participants are fairly equal in status.
 when both sides are willing to give something up.
 when time or expediency is a factor.

Accommodating (your way)

Accommodating a team member may be an effective strategy for resolving
conflict when you agree that the team member is, in fact, right. It can also be a
good approach if you don’t feel strongly about the result, if you want to gain
goodwill from the team member, or if it is more important at that particular time
to keep the whole team functioning and cooperating.

Collaborating (our way)

The collaborative approach is also known as the win-win approach. It is mostly
used in high-stakes conflicts when getting a resolution is too important for the
issues not to be carefully examined. It requires a great deal of skill to use the
collaborative approach successfully. Negotiation and mediation are types of
collaboration, usually in formal situations such as labor negotiations or creating
employment contracts for senior level management.

10. What are the different types of organizational structures found in

modern organizations?
Simple Structure
 A structure characterized by a low degree of departmentalization, wide spans of
control, authority centralized in a single person, and little formalization
Bureaucracy
A structure of highly routine operating tasks achieved through specialization, very
formalized rules and regulations, tasks that are grouped into functional
departments, centralized authority, narrow spans of control, and decision making
that follows the chain of command
Matrix Structure
A structure that creates dual lines of authority and combines functional and
product departmentalization
Key Elements
– Gains the advantages of functional and product departmentalization while
avoiding their weaknesses
– Facilitates coordination of complex and interdependent activities
– Breaks down unity-of-command concept
Virtual Organisation
A small, core organization that outsources its major business functions
 Highly centralized with little or no departmentalization
 Provides maximum flexibility while concentrating on what the
organization does best
 Reduced control over key parts of the business

11. How does Lewin’s three step model of change management work?
a. Unfreezing
Change efforts to overcome the pressures of both individual resistance and
group conformity by increasing the driving force and decreasing the
restraining force
b. Moving
Moving from the status quo to the desired end state
c. Refreezing
Stabilizing a change intervention by balancing driving and restraining
forces
Understanding People in Organizations (UPO)
12. What are the key roles and responsibilities of managers?
Manager: An individual who achieves through other people
 Decision Making
 Resource Allocation
 Directing the activities
Managers perform 10 interrelated roles Interpersonal Roles, Informational Roles, Decisional Roles
13. What are the personality determinant factors and explain as to
why the knowledge of the Big-Five model & MBTI are useful for
managers?

There are 4 major determinants of personality which include the physical

environment, heredity, experiences and culture.
MBIT
Most widely used personality assessment instrument in the world. A personality
test that taps four characteristics and classifies people into 1 of 16 personality
types.
Extravert (E) Vs Introvert (I)
• Extraverts are outgoing, Sociable & Assertive
• Introverts are quiet and shy
Sensing (S) Vs Intuitive (N)
• Sensing are practical, prefers routine and order. Focus on detail
• Intuitive rely on unconscious processes and look at “Big Picture”
Thinking (T) Vs Feeling (F)
• Thinking types use reason and logic to handle problems
• Feeling types rely on their personal values and emotions
Judging (J) Vs Perceiving (P)
•Judging types want control and prefer their world to be ordered and structured
•Perceiving types are flexible and spontaneous

The Big Five Personality Model

1. Extraversion- A personality dimension describing someone who is
sociable, gregarious, and assertive
2. Agreeableness - A personality dimension that describes someone who is good
natured, cooperative, and trusted.
3. Conscientiousness- A personality dimension that describes someone who is
responsible, dependable, persistent, and organized
4. Emotional stability - A personality dimension that characterizes someone as
calm, self-confident.
5. Openness to experience- A personality dimension that characterizes someone in
terms of imagination, sensitivity and curiosity

 Extraverts feel positive emotions than introverts

 Agreeable people are better liked than disagreeable
 Higher conscientiousness, higher level of job knowledge (academic
performers) leading to higher level of job performance
 Score high on emotional stability are happy employees.
 Score high on openness to experience are more creative in science and art
14. Mention the shortcuts in judging others and narrate the types of
bias in decision making.
Common shortcuts in judging others
 Selective Perception - The tendency to selectively interpret what one sees
based on one’s interests, background, experience and attitudes
 Halo Effect - The tendency to draw a general impression about an
individual based on a single characteristic. E.g. intelligence, Enterprising,
Entrepreneurial, Sociability or appearance
 Contrast Effect - Evaluation of a person’s characteristics that is affected by
comparisons with other people recently encountered E.g., Job Interview •
If preceded by mediocre applicants- more favourable evaluation • If
preceded by strong applicants- less favourable evaluation
Types of bias in decision making
 Overconfidence bias- Tend to be overconfident about our abilities and
of others
 Anchoring bias - A tendency to fixate on initial information, from
which one then fails to adequately adjust for subsequent information. It
occurs because our mind gives a disproportionate amount of emphasis
to the first information it receives.
 Confirmation bias - The tendency to seek out information that
reaffirms past choices and discount information that contradicts past
judgements. Selective perception plays a major role. Less prone to
confirmation bias, more accurate decisions.
 Availability bias - Tendency to base judgment on information readily
available, events that are more recent tend to be more available in our
memory. Fear- Flying vs driving in a cars.

15. Distinguish between intrinsic and extrinsic motivation. State the

benefits of understanding Theory X and Theory Y for managers?

BASIS FOR INTRINSIC EXTRINSIC

COMPARISON MOTIVATION MOTIVATION

Meaning Intrinsic Motivation A type of motivation

is one that comes which is induced by
from inside the outside forces,
person, depending commonly of financial
on his personal nature is called as
needs and extrinsic motivation.
enjoyment of any
task.

Focus Action Outcome

 BASIS FOR INTRINSIC EXTRINSIC
COMPARISON MOTIVATION MOTIVATION

Locus of Control Internal to the External to the person

person

Aims at Grooming, Earning a reward or

developing and avoiding certain
satisfying oneself consequences.
and also identifying
the potential.

Satisfaction of Yes No
basic
psychological
needs

Concerned with How the activity How the activity

aligns with a effects a person's
person's values? present?

Involves Enjoying working Valuing rewards and

the task. awards for
accomplishing the
work.

Driven by Own desires and Outside sources or

needs. other people.

McGregor proposed two theories by which managers perceive and address employee
motivation. He referred to these opposing motivational methods as Theory X and Theory Y
management. Each assumes that the manager’s role is to organize resources, including
people, to best benefit the company. However, beyond this commonality, the attitudes and
assumptions they embody are quite different.
16. Describe the components of attitude and explain the major job
attitudes.

Major job Attitudes

 Job satisfaction - a pleasurable or positive emotional state resulting from
the appraisal of one’s job or job experience.
 Job Involvement - the degree to which a person identifies with a job,
actively participates in it, and considers performance is important to self-
worth
 Psychological empowerment - Employees belief in the degree to which
they affect
• their work environment,
• their competence,
• the meaningfulness of their job, and
• their perceived autonomy in their work
• Involving employees in decision making
Making them feel their work is important
Giving them discretion to do their own things
 Organization commitment - Degree to which an employee identifies with a
particular organization and its goals and wishes to maintain membership in
the organization
 Perceived organizational support - The degree to which employee believe
an organization values their contribution and cares about their wellbeing
 • Rewards are believed fair
• Voice in decisions
• Supervisors are supportive
 Employee engagement - An individual’s involvement with satisfaction and
enthusiasm for the work he or she does. Disengaged employees are putting
time, but not energy or attention.
17. What is Emotional Intelligence? Explain the components of
Emotional Intelligence
emotional intelligence is the ability to accurately perceive your own and others’
emotions; to understand the signals that emotions send about relationships; and to
manage your own and others’ emotions.

Components of EI
 Self-awareness - Always know how you feel you know how your emotions
affect people around you Keep a journal Slow down SWOT
 Self-regulation - Leaders who regulate themselves effectively rarely
verbally attack others, rarely make rushed or emotional decisions, Self-
regulation is all about staying in control So, how can you improve your
ability to self-regulate? Know your values, Hold yourself accountable,
Practice being calm
 Motivation - Defined as “a passion for work that goes beyond money and
status” Re-examine why you're doing your job Know where you stand Be
hopeful and find something good.
 Empathy - Put yourself in someone else's position Pay attention to body
language Respond to feelings.
 Social skills - Such as proficiency in managing relationships and building
networks Learn conflict resolution Improve your communication skills
Learn how to praise others.
Business Ethics, Governance and Social Responsibility
18. What is the stakeholder perspective in business ethics and how do
we execute the same?
 The stakeholder approach is a response to the growth and complexity of
understanding and study of the modern corporation and its influence on the
environment.
 The ethical dimension of this approach is based on the view that:
Profit maximization is constrained by justice
Regard for individual rights should be extended to all constituencies that
have a stake in the affairs of a business
Organizations are not simply or only economic in nature but can and do
act in socially responsible ways, not only because it is the right thing to do,
but also to ensure their legitimacy
 The stakeholder approach provides a framework that enables users to map
and ideally, manage the corporation’s relationships, both present and
potential, with groups to reach win-win collaborative outcomes.
 Trust , trustworthiness, cooperativeness- ethical principles
 It does not have to result from a crisis or controversial situation.
 It can be used as a planning method to anticipate and facilitate business
decisions, events, and policy outcomes.
 Business units, teams, and groups can use this approach.
Stakeholder Management Approach Defined
 Stakeholder: any individual or group who can affect or is affected by the
actions, decisions, policies, practices, or goals of the organization.
 Primary stakeholders of a firm: owners, customers, employees, and
suppliers.
 Secondary stakeholders: all other interested groups such as the media,
consumers, lobbyists, courts, governments, competitors, the public, and
society.
 Stakes: any interest, share, or claim that a group or individual has in the
outcome of a corporation’s policies, procedures, or action toward others.
How To Execute A Stakeholder Analysis
The stakeholder approach is a pragmatic way of identifying and understanding
multiple, often competing, political, social, legal, economic, and moral claims of
many constituencies.
The stakeholder analysis is a series of steps aimed at the following tasks:
Mapping stakeholder relationships
Mapping stakeholder coalitions
Assessing the nature of each stakeholder’s interest
Assessing the nature of each stakeholder’s power
Constructing a matrix of stakeholder moral responsibilities
Developing specific strategies and tactics
Monitoring shifting coalitions
 19. What are the various crisis management models available in
managing the aftermath of an unethical even in an organization?
First Approach: Pre-crisis Through Resolution
According to this model, a crisis consists of four stages:
1. Prodromal (pre-crisis) stage
Warning symptom
2. Acute stage (crisis occurs)
Point of no return
3. Chronic stage (lingering)
Self-doubt and self-analysis phase
4. Resolved stage (health restored)
Return to normalcy

Suggestions that corporations can follow to respond more effectively to crises

include:
 Face the problem
 Take your lumps
 Recognize that there is no such thing as a secret or private crisis
 Stage war games
 Use the firm’s philosophy, motto, or mission statement
 Use the firm’s closeness to customers and end users for early feedback

20. How must organizations handle cases of whistleblowing from

employees who are grievance in organizations?
DeGeorge has identified five conditions when whistle-blowing is morally
justified:
 When product or policy of firm will serious and considerable harm to the
stakeholders
 When employee identifies a serous threat of harm statig his/ her moral
concern
 When immediate supervisor does not act it should reported to the higher
authority
 Employee must have adequate documented evidence
 Employee must have valid reasons to believe that such reporting and
resultant action would ensure policy change beneficial to all and is worth
taking the risk as a whistle-blower
Four managerial steps to prevent external whistleblowing have been suggested:
 Develop effective internal grievance procedures and processes that employees can use
to report wrongdoings
 Reward people for using these channels
 Appoint senior executives to address such concerns
 Assess large fines or illegal actions; include all wrong doers who knowingly play on /
break the rules

21. What is the significance of Clause 49 of the Listing Agreement and

Companies Act 2013, in the context of Corporate Governance in
India.
22. Explain the concept of triple bottom line, for sustainable business.
Triple Bottom Line refers to a company’s success, not only being measured by the
traditional financial bottom line, the ability to be “profitable”, but also by its
environmental (“planet”) and societal and ethical (“people”) performance.

The Sociological Approach – HRM aims at continuity, whereby the interests of

the employer, the employee and society are explicitly connected (E.g.;
engagement policies, health policies, diversity policies).

The Psychological Approach - People are the centre of a sustainable competitive

advantage (E.g; work-life balance, autonomy, self-development, employability
and dialogue).
 The Strategic Approach – It focuses on how Sustainable HRM impacts on typical
HR domains (E.g.; employee retention, and employability-aspects of an
organization).

The “Green HRM” Approach - The ways in which employees and management
relate to the triple bottom line (E.g.; competence and trainings in sustainability
awareness, stimulating environmentally-conscious behavior and green employer
branding).
Measures towards organizational sustainability
1. Vision and mission
2. Conducive culture
3. Leadership
4. Employment value proposition
5. Performance evaluation
6. Training
7. Employer branding