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Master of Business Administration-MBA Semester I

Subject Code MB0043

Subject Name Human Resource Management

Assignment Set- 2 (60 Marks)

Note: Each question carries 10 Marks. Answer all the questions.

Q.1 It is assumed that high morale leads to high productivity. Explain what morale is and

how it is related to productivity?

[10 Marks]

Solution:

Morale is also known as employee engagement in the modern day technology companies.

Morale has been variously defined by different authors. Professor Ralph Ralph C. Davis says,

Good organizational morale is a condition in which individuals and groups voluntarily make a

reasonable subordination of their personal objectives for their organization. According to

Dale Yoder and Paul D. Standohar, Morale means evident commitment that is demonstrated

spirit enthusiasm, and confidence in the organizations policies, programmes and

accomplishments. Morale is revealed by what individuals and groups say and do to show an

interest in, understanding of and personal identification with work-team survival and

success. Good morale is evidenced by employee enthusiasm, voluntary conformance with

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

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

It is assumed that high morale and high productivity high quality and creative work all go handin hand. Since morale manifests itself in the attitudes of employees, it is important to know

about results of high and low morale. One of the most unpredictable effects of the level of

morale is its impact on employee productivity. The productivity of a group is a composite of

many factors, at least one of which is the general state of mind or the commitment of the

group. Formerly it was thought it was thought that high morale resulted in high productivity.

Research is repeatedly proving that this correlation is not as simple. Various studies have

revealed that the group having the highest morale need not always be the highest in

productivity. As morale is made up of so many factors, so is productivity, the result of a series

of complex factors. When a group is convinced that high productivity will result in its getting

the things it wants most, it is reasonable to believe that productivity will be high. It is

likewise reasonable to believe that if the groups satisfactions in the work situation are high

and high productivity will enable it to get the things it wants most, the productivity may be

high.

Though high morale may not be the single cause of the high productivity, a high-producing

group nearly always has a reasonably high morale, in terms of the company successful

operations where the individuals can relate their respective endeavors and objectives to the

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success of the enterprise as a whole. A morale-building organization tends to utilize fully the

skill, initiative, judgment and training of its members and through such utilization succeeds in

building up these and other qualities in everyone, so that the abilities of all constantly expand

and the organization thus is able to succeed and grow.

However, research has shown that the relationship between the two is not so direct andpositive as that. It is possible to find thigh morale related to low productivity and low moraleassociated with high productivity.

High productivity goes with high morale when the workers are motivated and the supervisionis of the right type (i.e., the supervisors treat the men with consideration). In fact, highproductivity may push up productivity. In the absence of proper motivation, both morale andproductivity may be low. High morale and low productivity will go together when the men aredeficient in training and the supervisors and not wholly competent. Low morale and highproductivity will go together when the management uses penalties and punishments andprovides better equipment to the workmen. But it must be remembered that high productivitywith low morale cannot be sustained for long. That shows that workers' attitudes towards the

job, the supervisors and the organization and its policies are an important factors inproductivity and the management must try to ensure favorable attitudes on the part of menwhile taking the other steps for raising productivity.

Q.2 Coxen is a medium size, plastic manufacturing company. In this Company, workers

have developed grievances against management. For past 2 years, in spite of making

profit, company is not paying bonus to workers. It is expected that, if the grievances are

not dealt with, it might lead to severe consequences. Imagine this situation and explain

the grievance handling procedure, list each steps of the procedure. Suggest few measures

to avoid grievances.

[10 Marks]Maintaining quality of work life for its employees is an important concern for the any

organisation. The grievance handling procedure of the organisation can affect the harmonious

environment of the organisation. The grievances of the employees are related to the

contract, work rule or regulation, policy or procedure, health and safety regulation, past

practice, changing the cultural norms unilaterally, individual victimization, wage, bonus, etc.

Here, the attitude on the part of management in their effort to understand the problems of

employees and resolve the issues amicably have better probability to maintain a culture of

high performance. Managers must be educated about the importance of the grievance process

and their role in maintaining favorable relations with the union. Effective grievance handling

is an essential part of cultivating good employee relations and running a fair, successful, and

productive workplace. Positive labor relations are two-way street both sides must give a little

and try to work together. Relationship building is key to successful labor relations.

(i) An arrived employee shall first present his grievance verbally in person to the officer

designated by the management for this purpose. The response shall be given by the officer

within 48 hours of the presentation of the complaint. If the worker is not satisfied wit the

decision of the officer or fails to receive the answer within 48 hours he will, either in person

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or accompanied by is departmental head, present his grievance to the head of the

department.

(ii) The head of the department shall give his answer within 3 days or if action cannot be

taken within this period, the reason for delay should be recorded. If the worker is dissatisfied

with the decision of the department all head, he may request that his grievance be forwarded

to the Grievance Committee.(iii) The Grievance committee shall make its recommendation to the manager within 7 days if

the workers request. If decision cannot be given within this period, reason should be

recorded. Unanimous decision of the committee shall be implemented by the management. If

there is differences of opinion among the members of the committee, the matter shall be

refereed to the manager along with the views of the members and the relevant papers for

final decision.

(iv) In either case, the final decision of the manger shall be communicated to the employee

within three days from the receipt of the Grievance Committee's recommendations.

(v) If the worker is not satisfied even with the final decision of the manager, he may have the

right to appeal to the manager for revision. In making this appeal he may take a union official

with him to facilitate discussion with the management . The management will communicate

the decision within 7 days of workman's revision petition.

(vi) If worker is still not satisfied, the mater may be referred to voluntary arbitration.

(vii) Where a workers has taken a grievance for readdress under the grievance procedure the

formal conciliation machinery shall not interview till all steps in the procedure have

exhausted. A grievance shall be presumed to assume the form of a dispute only when the final

decision of top management is turned down by the worker.

Precautions and Prescriptions

The management should take care of following aspects to develop a culture of trust and

confidence upon the employees.

1. Always ensure that the managers involved in the grievance handling procedures have aquiet place to meet with the complainant.

2. Always ensure that managers have adequate time to be devoted to the complainant.

3. Explain manager's role, the policy and the procedures clearly in the grievance handling

procedure.

4. Fully explaining the situation to the employee to eliminate any misunderstanding and

promote better acceptance of the situation complained of.

5. Try to let employee present their issues without prejudging or commenting

6. Do use a positive, friendly ways to resolve the crisis than punitive steps, which disturb the

system.

7. Do remain calm, cool, collected during the course of the meeting.

8. Always focus on the subject of the grievance than allied issues.

9. Don't make threats manage the grievances.

10. Never make use of allegations against personalities.

11. Be aware of the staff member's potential concerns to the possible repercussions of raising

a grievance.

12. Don't become angry, belligerent, or hostile during grievance handling procedure.

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13. Do listen for the main point of arguments and any possible avenue to resolve the

grievance.

14. Listen and respond sensitively to any distress exhibited by the employees.

15. Eliminating the source of the irritation or discomfort being complained of.

6. Reassure them that the managers will be acting impartially and that your hope is to resolve

the matter if possible.17. Don't "horse trade" or swap one grievance for another (where the union wins one,

management wins one). Each case should be decided on its merits.

18. Avoid usage of verbosisms like "it will be taken care of."

19. Ensure effective, sensitive and confidential communication between all involved.

20. Take all possible steps to ensure that no victimization occurs as a result of the grievance

being raised.

21. The investigator or decision maker acts impartially, which means they must exclude

themselves if there is any bias or conflict of interest.

22. All parties are heard and those who have had complaints made against others are given an

opportunity to respond.

23. Try to look upon the problem on different angles for appropriate understanding.

24. Ensuring that there is proper investigation of the facts and figures related the problem

under concern.

25. Consider all relevant information in the investigation process.

26. Ask the staff member their preferred resolution option, although it is important to make it

clear that this may not be a possible outcome.

27. Be aware of the limits of authority of the person who involved in the grievance handling

procedures.

28. If the manager feels that he/she is not the appropriate person (senior manager) to deal

with the issue refer the complainant to the appropriate person as soon as possible.

29. Try to get a better idea of whether the alleged discrimination or harassment happened ordidn't happen.

30. Tell them exactly what they are supposed to have done, to whom and explain, why this

may be seen as discrimination/harassment or as inappropriate.

31. Grievances are preferably to be settled informally at the level of the employee's

immediate supervisor.

32. Try the level best to involve team members to resolve the crisis at unit level itself.

33. Avoid as far as possible the union involvement in conflict resolution situation process.

34. Follow documentation the procedures, of all necessary steps taken to resolve the

problem/complaint.

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Q.3 Write a brief note on Succession planning. [10 Marks]

Solution:

Succession planning is a process for identifying and developing internal personnel with the

potential to fill key or critical organizational positions. Succession planning ensures the

availability of experienced and capable employees that are prepared to assume these roles asthey become available.

Succession planning accelerates the transition of qualified employees from individual

contributors to managers and leaders. Succession planning:

Prepares current employees to undertake key roles

Develops talent and long-term growth

Improves workforce capabilities and overall performance

Improves employee commitment and therefore retention

Meets the career development requirements of existing employees

Improves support to employees throughout their employment

Counters the increasing difficulty of recruiting employees externally

Focuses on leadership continuity and improved knowledge sharing

Provides more effective monitoring and tracking of employee proficiency levels and skill gaps.

Succession planning is a necessary part of an organisation's ability to reduce risk, create a

proven leadership model, smooth business continuity and improve staff morale.

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Q.4 Think of a situation in which an employee is to be dismissed from the organization,

what will be the fair steps of dismissal followed by the organization? [10 Marks]

Solution:

According to Article 311 of the Indian Constitution, which states that no person shall bedismissed or removed from service until he has been given a reasonable opportunity to show

cause as to why the proposed action should not be taken against him?

The Model Standing Orders, similarly states that, before an employee is dismissed, he should

be given an opportunity to explain the circumstances against him.

The following steps are followed for dismissal of an employee:

i. Charge Sheet is Framed and Issued:

ii. Explanation Receipt

iii. Issue of Notice of Enquiry

iv. Conducting the Enquiry

v. Sharing Findings

a) Charge Sheet is Framed and Issued: The first step in the procedure is to have in-place

a written complaint against the employee in question and which contains details of the

offence with which he is charged, policy breach and the allegation of misconduct made

against him and indicating the time limit within which a reply to the charge sheet

should be submitted to the due authorities. The employee is called to put forth his

case why a disciplinary action should not be taken against him.

The contents and implications of the complaint/charge sheet may be explained to him in hisown language and in the presence of some reputable witness, before a copy of it is handed

over to him. If he refuses to accept it, it should be sent to his residential address registered

post with acknowledgement due. If the employee refuses to take delivery of the registered

letter, or when it has been returned undelivered, it should be published in a local paper to

ensure its wide publicity.

b) Explanation Receipt: The employee provides his explanation within the scheduled

time allotted. He can also ask for an extension of time for its submission, all in good

faith.

c) Issue of Notice of Enquiry: Upon receipt of the explanation from the employee it is

reviewed. If found unsatisfactory, a notice of enquiry, mentioning the time, date and

place, has to be given to him in which the name of the person or officer conducting the

enquiry would also be mentioned. The employee is required to be present at the

appointed time and place, together with his witness, if he has any.

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d) Conducting the Enquiry: On the appointed day and at the appointed place and time,

the enquiry is held by the Enquiry Officer in the presence of the employee. The

contents of the charge sheet and an explanation of the procedure to be followed at the

enquiry proceeds communicated to the worker. If he pleads his innocence, the enquiry

proceeds but if he pleads guilty, unconditionally and in writing the enquiry is dropped.

e) Sharing Findings: Once the enquiry is over, the Enquiry Officer has to give his findings,

which should invariably contain the procedure which was followed, the employees

statements, all of the documents produced and examined, the charges made and the

explanations given and the evidence produced. The officer should then record his own

findings on each of the charges and the grounds on which he has come to a particular

conclusion. He should specifically mention which charges have been proved and which

have not been proved. He then submits his findings to the authorities empowered to

take the disciplinary action against the employee. He however, is not required to make

any recommendations.

i. On receiving the report, the executive authorized to take a decision thereon passes

an order of action.

ii. Communication of the decision.

A copy if the order is then handed over to the employee.

Q.5 Describe the process of wage fixation and the machinery available for it. [10 Marks]

Solution:

The Tribunals and Wage Boards have generally followed the principles laid down in the Fair

Wages Committees Report on fixing wages. The Committee, in its report, has focused on

wage differentials and has identified the following factors for consideration for fixation of

wages:

1. The degree of skill

2. The Strain of work

3. The experience involved4. The training involved

5. The responsibility undertaken

6. The mental and physical requirements

7. The disagreeableness of the task

8. The hazard attended on the work

9. The fatigue involved

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Classification of wages: The International Labour Organization (ILO) in one of its

publications, classified wages as under:

1. The amount necessary for mere subsistence

2. The amount necessary for health and decency and

3. The amount necessary to provide a standard of comport.

In India, wages are classified as below:

a. Minimum Wage

b. Fair wage and

c. Living wage

Minimum Wage: A minimum wage has been defined by the Committee as the wage which

must provide not only for the bare sustenance of life, but for the preservation of the

efficiency of the worker. For this purpose, the minimum wage must provide for same measure

of education, medical requirements and amenities. In other words, a minimum wage should

provide for the sustenance of the workers family, for his efficiency, for some amenities. It is

very difficult to determine the minimum wage because conditions vary from place to place,

industry to industry and from worker to worker. However, the principles for determining

minimum wages were evolved by the Government and have been incorporated in the Minimum

Wages Act, 1948, the important principle being that minimum wages should provide not only

for the bare sustenance of life but also for the preservation of the efficiency of the workers by

way of education, medical care and other amenities.

Fair Wage: According to the Committee on Fair Wages, it is the wage which is above the

minimum wage but below the living wage. The lower limit of the fair wage is obviously the

minimum wage; the upper limit is set by the capacity of the industry to pay. Between these

two limits, the actual wages should depend on considerations of such factors as:

I) The productivity of labour

II) The prevailing rates of wages in the same or neighboring localities

III) The level of the national income and its distribution and

IV) The place of industry in the economy.

Living Wage: The wage was recommended by the Committee as a fair wage and as ultimate

goal in a wage policy. It defined a Living Wage as one which should enable the earner to

provide for himself and his family not only the bare essential of food, clothing and shelter but

a measure of frugal comfort, including education for his children, protection against ill-

health, requirements of essential social needs and a measure of insurance against the more

important misfortunes including old age. In other words, a living wage was to provide for a

standard of living that would ensure good health for the worker and his family as well as a

measure of decency, comfort, education for his children and protection against misfortunes.

Generally, ascertaining wages and deciding who to pay what is a activity undertaken in the

beginning when a organization is set up. Thereon it is annual reviews to make corrections per

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the countrys economic and market/industry trends. The management considers the state of

the value of the worker to him. The workers willingness for employment at the rate offered

implies that they agree to work at that rate, though they have had no part in fixing it.

1. Collective Bargaining

2. Voluntary Arbitration

3. Wage Legislation4. Conciliation

5. Adjudication

6. Wage Boards

Q.6 Write short notes on: [10 Marks]

Solution:

Charismatic Leadership: This points out that charisma is a personal trait. Often it is confusedand interpreted as the highest form of transformational leadership, but increasing researchsupports a different thought. Charismatic or heroic leaders easily build allegiance infollowers but do not necessarily change the organization.

Charismatic leadership is leadership based on the leader's ability to communicate and behavein ways that reach followers on a basic, emotional way, to inspire and motivate. We oftenspeak of some sports and political leaders as charismatic (or not) -- an example being John F.Kennedy.

It's difficult to identify the characteristics that make a leader "charismatic", but they certainly

include the ability to communicate on a very powerful emotional level, and probably includesome personality traits.

Developing "charisma" is difficult, if not impossible for many people, but luckily charismaticleadership is not essential to be an effective leader. Many other characteristics are involved inleading effectively, and there is significant evidence to indicate that it simply is not necessaryto have this elusive charisma to lead others well.

Relying on charisma to lead also can be problematic. For example, there have been manycharismatic leaders who lack other leadership characteristics and skills (e.g. integrity) andlead their followers into situations that turn out horribly -- think political leaders such asStalin, Hitler, and even business leaders (Enron).

Finally, in organizations lead by charismatic leaders, there is a major problem regardingsuccession. What happens when a leader who relies on charisma leaves? Often theorganization founders because the ability to lead rested with one person's charisma.

Participative Leadership: Lewins study found that participative (democratic) leadership isgenerally the most effective leadership style. Democratic leaders offer guidance to groupmembers, but they also participate in the group and allow input from other group members.

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While it is possible that this style productivity is lower than that in the authoritarian group,but the contributions were of much higher quality. This could also be more time taking.Participative leaders encourage group members to participate, but retain the final say overthe decision-making process. Group members feel engaged in the process and are moremotivated and creative.

Lewins study found that participative (democratic) leadership is generally the most effectiveleadership style. Democratic leaders offer guidance to group members, but they alsoparticipate in the group and allow input from other group members. In Lewins study, childrenin this group were less productive than the members of the authoritarian group, but theircontributions were of a much higher quality.

Participative leaders encourage group members to participate, but retain the final say overthe decision-making process. Group members feel engaged in the process and are moremotivated and creative.

Delegative Leadership: Delegative leaders offer little or no guidance to group members and

leave decision-making entirely to group members. While this style can be effective insituations where group members are highly qualified in an area of expertise, it often leads topoorly defined roles and a lack of motivation.

Delegative (Laissez-Faire) - Researchers found that children under delegative (laissez-fair)leadership were the least productive of all three groups. The children in this group also mademore demands on the leader, showed little cooperation, and were unable to workindependently.

Delegative leaders offer little or no guidance to group members and leave decision-making upto group members. While this style can be effective in situations where group members arehighly qualified in an area of expertise, it often leads to poorly defined roles and a lack ofmotivation.

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