Examination Paper: Human Resource Management
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IIBM Institute of Business Management
IIBM Institute of Business Management
Examination Paper MM.100
Human Resource Development & Training
Section A: Objective Type (30 marks)
· This section consists of Multiple Choice and Short answer type questions.
· Answer all the questions.
· Part one questions carry 1 mark each & Part Two questions carry 5 marks each.
Part One:
Multiple choices:
1) Who used the term ‘Intellectual Capital’ for the first time?
a. Alvin Toffler
b. Tseng and Jiao
c. J K Galbraith
d. Rouibah and Ould-al
2) Organizational behavior is a:
a. Micro perspective
b. Macro perspective
c. Neo perspective
d. Latent perspective
3) Ethics in H R Development means:
a. Accepted behavior
b. Rejected behavior
c. Unexpected behavior
d. There is no term like, in HRD
4) What does ‘s’ stands for in COPS for conducting a detail HR analysis?
a. Shell
b. Swap
c. System
d. Site
5) In generic HRD model, training and development lies:
a. At bottom level
b. In middle level
c. A top level
d. Not a part of this model
6) Under the development part, the instructors use to focus on:
a. Skills of the learner
b. Process of the learner
c. Concepts of the learner
Examination Paper: Human Resource Management
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IIBM Institute of Business Management
d. No focus
7) Gap is:
a. The difference between competency model and current state
b. The difference between ideal state and current state
c. The difference between ideal state and competency model
d. None of the above
8) According to Hamblin there are …… levels at which evaluation can be made.
a. 3
b. 4
c. 5
d. 7
9) Norm reference tests are:
a. Tests designed to measure degree of learning
b. To maximize the individual differences an for comparing them with externals.
c. To test the learner has mastered the taught one or not.
d. None of the above
10) David Kolb gave the idea that learning is a:
a. Linear process
b. Slow process
c. Unlimited process
d. Circular process
Part Two:
1. Explain PCMM (People Capability Maturity Model) approach for HRD.
2. Write a short note on ‘HRD Strategy model’.
3. Explain the utility of ‘Training Process Pyramid’.
4. What are ‘on-the-job’ and ‘off-the-job’ techniques of training and development?
END OF SECTION A
Examination Paper: Human Resource Management
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IIBM Institute of Business Management
Section B: Caselets (40 marks)
· This section consists of Caselets.
· Answer all the questions.
· Each Caselet carries 20 marks.
· Detailed information should form the part of your answer (Word limit 150 to 200 words).
Caselet 1
Introduction to the organization:
XYZ Company was established 20 years ago, to manufacture gearbox components for diesel
engines. It employs around 250 people, having a head office, which employs a wide range of
personnel who are generally well educated and enthusiastic about their work, and a factory, which
employs semi-skilled local people who are generally disinterested in the products of the company
and who have an instrumental attitude to work, seeing salary as the only reward.
Brief Description of the Problem:
The performance of the Company has not been good and the records revealed the following facts:
· Wastage within the factory was costing the Company approximately Rs. 100,000 a month.
· There was wide spread differences in individual work standards
· Processes were non-standardized resulting in repeated problems
· Management made all decisions and cascaded the result down to employees
· The top management became concerned about the performance of the factory and they hired Mr.
Tanmoy Deb, an OD consultant to study the problem and suggest specific changes to
relationships and tasks with the following objectives:
· To review and improve communication systems.
· To restructure the organization and to review teamwork and quality practices.
· To review leadership issues across all levels.
Mr. Tanmoy Deb carried out discussions, interviews and surveys and made the following
observations:
· There’ and ‘us’ attitude was widely prevalent between head office and factory personnel
· Production personnel lacked technical skills
· Factory employees felt alienated from sharing the Company’s success
· Production systems were adhoc and defective because of frequent variations in standards set
· Many times raw material was found to be of inferior quality
· Rigidly defined job descriptions
Questions:
1. What in your view are the central human resources issues involved in this case?
2. What strategy should Mr. Tanmoy Deb develop and implement for improving the present
system?
Examination Paper: Human Resource Management
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IIBM Institute of Business Management
Caselet 2
Introduction to the organization:
XYZ Company is an existing profit making FMCG Company. The company has 600 personnel
and has branches all other the country. It has a separate training department with a Training
Manager, Mr. A.P. Mohan as its head who is supported by two qualified training officers. Mr.
Mohan has been in the company for the last 8 years and is very efficient.
Brief Description of the Problem:
Mr. Mohan wants to leave the organization. He is fed up with organizational politics. He is
dissatisfied and infact frustrated. There are several reasons attached to it. First and foremost is
that he is not paid adequately despite the fact that he has brought 12% growth in revenue to the
company. Second reason is that he is not consulted and constantly neglected while making
decisions on training aspects. Lastly, he considers himself to be a victim of politics played in the
organization. Production Manager is constantly hurting him and interferes with the work. Dr.
Ashok Sarao, boss of Mr. A.P. Mohan does not want him to leave the organization, as he knows
that the effectively will come down if he leaves. Dr. Ashok tries to convince Mohan that he
should adjust himself with the environment and also talk of how Mohan is constantly neglected.
He talks of how politics is played in the organization and strengths and weaknesses of Mohan but
does nothing to convince Mohan. Rather he says that they have to adjust, as they are part of
family run business. In this setting, personal equation rather than merit works. Mohan is not
convinced, and says he is leaving.
Questions:
1. Why a high performer like Mr. Mohan decided to leave the organization he has been long
part of?
2. Do you think Mr. A.P. Mohan took the right decision to leave the organization? What would
you have done if you were in his shoes?
END OF SECTION B
Section C: Applied Theory (30 marks)
· This section consists of Applied Theory Questions.
· Answer all the questions.
· Each question carries 15 marks.
· Detailed information should form the part of your answer (Word limit 200 to 250 words).
1. Trace out the changing paradigm of growth. Why has human resource development assume
greater importance in present time?
2. Training effectiveness is crucial for the success of the training department. How will you
ensure it?
END OF SECTION C
Examination Paper: Human Resource Management
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IIBM Institute of Business Management
IIBM Institute of Business Management
Examination Paper MM.100
Industrial Relations
Section A: Objective Type (30 marks)
· This section consists of True and False & Short Answer type questions.
· Answer all the questions.
· Part One questions carry 1 mark each & Part Two questions carry 5 marks each.
Part One:
True and False:
1. Central Board of Workers Education (CBWE) was set up in 1986.
2. The joint Departmental Councils are encouraged to hold annual meetings, a scheme which
was initiated in 1970.
3. The lockout of the pilots was lifted from 3rd November, 1974.
4. The Employers federation of India formed in 1936.
5. Indian Jute Mills Association (IJMA) was formed in 1887.
6. All India Trade federation was established in 1921.
7. In India, the foundation of modern industry was laid between 1850 and 1860.
8. HMS stands for Hind Maha Sabha.
9. A feature of Indian trade unionism is not the multiplicity of unions.
10. Standing Orders may provide as to who should enquire.
Part two:
1. Who are ‘Blue Collor’ workers?
2. What are the basic causes of ‘Grievances’?
3. Write a note on ‘Payment of Gratuity Act, 1972’.
4. Explain ‘Walker’s Model’ for worker’s participation in management.
END OF SECTION A
Examination Paper: Human Resource Management
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IIBM Institute of Business Management
Section B: Caselets (40 marks)
· This section consists of Caselets.
· Answer all the questions.
· Each Caselet carries 20 marks.
· Detailed information should form the part of your answer (Word limit 150 to 200 words).
Caselet 1
(A)HISTORY OF THE FIRM:
Bombay Electricals was started in 1940 by Mr. Desai, a refrigeration engineer, as a proprietary company.
In 1941 he ran short of money and approached Mr. Khanna, Chairman of a large group of companies, for
help. Mr. Khanna decided to invest capital in the company and thereby obtained 75% control. The
company was later registered in 1945 as a Public Limited company but management was left all this time
in the hands of Mr. Desai. Until 1947 the company showed substantial losses because Mr. Desai started a
number of new product lines but did not stick to any long enough to establish either the production or the
markets. Nor did he make any study of the existing markets or production in the country before
introducing any of the products. This was a period in which the company launched and finally gave up a
number of products all of which resulted in severe losses. In 1947 two senior offices from the group were
brought into Bombay Electricals Company. Mr. Jain, an engineer by qualification, had served the Group
for twenty years and was appointed Works Manager. Mr. Sharma who had also been with the Group for
18 years was made Finance and Sales Manager. Within six months after Jain and Sharma joined the
company, Mr. Desai decided to retire. Mr. Jain was made General Manager (Works) and Mr. Sharma,
General Manager (Finance and Sales). At this stage management of the company rested with a part-time
Chairman, Mr. Khanna, who was also the Chairman of the parent Group, and with the two General
Managers. There were six superintendents for each of the manufacturing departments plus a sales
manager and an accountant. In 1949 the company took two decisions: (1) to suspend manufacturing all
products except those which could be manufactured by mass production methods, and (2) not to compete
with the small scale or cottage industry in any of its production lines. They agreed to concentrate only on
the manufacture of refrigerators and air conditioners. In the decade between1950-60, the company made
impressive progress and sustained a steady growth in production and in domestic and export sales. The
following figures show the employment and net income.
Year ending March Employment Net income in Lakhs
1947
1950
1960
500
750
3500
150.00
250.50
925.00
(B)FINANCIAL STATUS:
The company’s financial and cost position had deteriorated markedly between1958-1960. The rate of
equity divided declared was calculated by the company as 20% in 1956, 1957 and 1958; to 0.5 lakh in
1960. In 1960 if it had not been for 10 lakhs on profit on import entitlement and 18.50 lakhs on ‘other
income’, the balance available for equity dividends would have been a negative figure. The short-term
financial position of the company in March 1960 was tight and it faced a stringent cash position. The
costs on inventories too were high, imposing strain on the financial position. The finished stock levels in
March 1960 were equipment to a little over eight weeks production; in process stocks were equivalent to
about ten weeks production; and raw materials stocks were sufficient for about 15 weeks production. The
table below gives the expenditure on labour between 1958-1960:
Examination Paper: Human Resource Management
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IIBM Institute of Business Management
Year ended
March
Salary and
wages per
employee
Profits bonus per
employee
Other
expenditure per
employee
Total per
employee
1958
1959
1960
5344
5131
5434
400
346
286
217
317
576
6021
5793
6296
Separating these figures for workers from clerical staff, the cost per worker was Rs. 6,000 per year. The
comparable figures of earnings in other industries averaged Rs. 1,400 in 1960. Thus workers’ earnings in
Bombay Electricals were nearly four times the industry average. Furthermore, the earnings of the
employees in the company increased at an average of 13% between 1958 and 1960.
During the same period the figure below compares the physical output and average real earnings
(the figure of the real earnings is reached by allowing for the shift in consumer price index for the period).
Year Index of physical output per
employee earnings
Index of average real earnings
per employee
1958
1959
1960
100
133
123
100
120
108
(C) TECHNOLOGICAL STATUS:
When, in 1948, Bombay Electricals Limited decided that the company would not compete with the small
scale or cottage industry and would manufacture only those products which could be manufactured
economically by mass production techniques, it suspended the manufacture of small tools, at that time a
profitable product. The exclusive products on which the company concentrated were refrigerators and air
conditioners. Consequent upon the technical decisions to manufacture on mass production lines, highspeed
and special purpose machinery was gradually installed in the plant. The decision resulted also in
the setting up of an industrial engineering (work study) department and a vast development department.
withdrawing the charge sheet.
(b) A peon was found asleep on his job and was charge sheeted. Repeated agitation led to withdrawal of
the charge sheet after top level discussions.
(c) At bonus time every year there were demonstrations. Workers left their departments, surrounded the
senior officers and indulged in drum beating until a settlement was reached.
(d) At the same time the company carried out a programme of expansion with all the attendant changes in
the departments. No serious difficulty was faced by the company in introducing technology change or in
increasing productivity per worker.
(F) THE STRIKE
In 1960 when the bonus was declared, the employees agitated in the same as they did in previous years.
The difference between the offer made to workers and the quantum demanded by them was about Rs. 30/-
(thirty) per employee. Unlike other years, the negotiations failed and the employees gave 15 days notice
to go on strike. The matter was taken up for conciliation by the State Labour Commissioner but the
dispute could not be settled. On the appointed day, the strike began and six anxious months went by
before a settlement was reached.
This case raises some highly interesting and significant questions:
Examination Paper: Human Resource Management
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IIBM Institute of Business Management
Questions:
1. Similar problems which caused this strike in 1960 were satisfactorily resolved in the past in Bombay
Electricals. Why could not the differences be settled in 1960?
2. Inspite of high earnings by employees, why did they choose to go on strike for a relatively small
difference of Rs 30/- in their demand preceding the strike?
Caselet 2
THE ORGANIZATION
Thomson and Richards, two technocrats from Holland, both in the age group of late 30s came as
consultants to Calcutta with French Company on a project assignment in 1940. They were quite
impressed with Indian culture and decided to settle down in India. Upon completion of their project, they
started their own company under the name Thomrich Pvt. Ltd. which manufactured agricultural
equipments. Encouraged by the performance of the company, they ventured into the manufacturing of
fertilizer manufacturing equipments in 1944 under the same banner. Their entrepreneurial skills and
success promoted them to diversify their business into manufacturing of lubricants in 1951, and
subsequently to electrical gadgets for industrial use in the year 1970. In the same year, they pioneered the
manufacturing of hovers at Chennai. In 1992, Thomrich Pvt. Ltd. entered the tractor segment and
established its plant at Gwalior, M.P. It entered into the tractor segment when another company KCP had
already established its reputation as a sole reliable brand. Unaffected by the competition, they started their
brand of tractors and soon, after three years they started manufacturing cultivators too. So far Thomrich
had a smooth sailing. With the coming of liberalization and globalization in the 1990s, Thomrich did not
remain untouched by the surmounting pressures of MNCs venturing into the Indian market. This made
them sell one of their profit-making divisions, i.e., the fertilizer manufacturing to a leading Indian
business house, to concentrate on their core competency areas. To add to the woes, the rumours of
Elegators, the world’s No. 1 tractor manufacturer foraying into Indian market gave sleepless nights. Being
protective, the company decided to enter in a collaborative venture with Wooge of France, the world’s
No. 2 tracror manufacturer, and rechristened itself to Thomrich-Wooge Pvt. Ltd. In the year 2002, they
improvised the then existing model in terms of efficiency by reducing its cycle-time, thereby becoming
No. 1 in the country. The company considered this product as flagship product, although it had not been
takes the place of KCP Tractors, despite improvisation in its efficiency. The company was purely
technocrat in nature with an annual turnover of Rs. 10,000 crores. With
Thomrich-Wooge Pvt. Ltd. contributing Rs. 125 crores to it. The Gwalior unit had a total strength of 308
MNCs had 15-18 hours of working, but the changing orientation of employee made them feel that they
were handsomely compensated. S. Abraham apprehended further deterioration due to the influence of
Dollar Packages, which was unaffordable for Thomrich-Wooge Pvt. Ltd. The market conditions were
already tight with too many competitors, prices being down, customers becoming more demanding and
choosy, making the inputs scarce for the unit. Abhraham was considering the options of overcoming the
exodus of executives by increasing the efficiency with lesser input for which the company would have to
minimize its task force. This would tarnish its employee friendly image. The other was to increase the
profits by exploring new markets. The Indian market by now was already flooded with many players,
leaving the international market as the only option, which was equally a hard nut to crack. Abraham felt
trapped in a highly volatile situation, where he fumbled for a speedy and pragmatic remedy.
Questions:
1. Was the company’s decision to enter the tractor segment right, when KCP had already captured
the market?
2. Had you been Abraham, how would you tackle the present situation?
END OF SECTION B
Section C: Applied Theory (30 marks)
· This section consists of Applied Theory Questions.
· Answer all the questions.
· Each question carries 15 marks.
· Detailed information should form the part of your answer (Word limit 200 to 250 words).
1. What is inflation? Compare its role with money and the real earning of the Industrial workers.
Use appropriate data to justify your answer.
2. How can the bargaining affect the workers as well as the firm? “It is a method of wage fixation.”
Evaluate.
END OF SECTION B
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