IGNOU MBA MMPC-002 Previous Year Solved Question Paper-June 2023

15 min readOct 6, 2023

MASTER OF BUSINESS ADMINISTRATION (MBA)/ MASTER OF BUSINESS ADMINISTRATION IN BANKING AND FINANCE (MBF) Term-End Examination June, 2023

MMPC-002 : HUMAN RESOURCE MANAGEMENT

1. Define Human Resource Management. Discuss the roles and responsibilities of HR managers and the challenges faced by them citing examples.

Human Resource Management (HRM) is the strategic approach to managing an organization’s most valuable asset — its people. It involves the planning, organization, coordination, and control of various processes related to the workforce within an organization. HRM plays a crucial role in ensuring that an organization’s human capital is effectively utilized to achieve its goals and objectives.

Roles and Responsibilities of HR Managers:

Recruitment and Staffing: HR managers are responsible for identifying staffing needs, creating job descriptions, and sourcing and hiring qualified candidates. For example, they might conduct interviews and select the most suitable candidates for a job opening.

Training and Development: HR managers are tasked with designing and implementing training programs to enhance employees’ skills and knowledge, helping them grow within the organization. For instance, they might organize workshops or provide online courses to improve employee capabilities.

Performance Management: HR managers establish performance appraisal systems and provide feedback to employees on their performance. They may also develop incentive and reward programs to motivate employees.

Employee Relations: HR managers mediate and resolve conflicts within the workplace, ensuring a harmonious work environment. They handle grievances and work on fostering a positive organizational culture.

Compensation and Benefits: HR managers determine compensation packages, including salary, bonuses, and benefits, to attract and retain top talent. They also ensure compliance with labor laws and regulations regarding employee compensation.

Compliance: Ensuring that the organization complies with labor laws, employment regulations, and industry standards is a crucial responsibility. This includes overseeing matters related to equal employment opportunities, workplace safety, and diversity.

Strategic Planning: HR managers align HR policies and practices with the organization’s strategic goals. They play a pivotal role in workforce planning and talent management, ensuring that the right people are in place to meet the company’s long-term objectives.

Challenges Faced by HR Managers with Examples:

Talent Acquisition: Attracting and retaining skilled employees can be challenging. For example, in the tech industry, there is a high demand for software developers, making it tough for companies to find and keep top talent.

Diversity and Inclusion: Promoting diversity and inclusion in the workplace is a significant challenge. HR managers must ensure fair treatment and opportunities for all employees, regardless of their background. For instance, organizations may face backlash if they mishandle diversity issues, as seen in various high-profile cases in recent years.

Changing Legal Landscape: Labor laws and regulations change frequently, making it challenging for HR managers to keep policies and practices up to date and compliant. For example, the introduction of new data protection regulations like GDPR has necessitated changes in how HR handles employee data.

Workplace Technology: The rapid advancement of technology impacts HR practices, from automation in recruitment to managing remote workforces. HR managers must adapt to these changes to remain effective.

Employee Engagement: Keeping employees motivated and engaged can be difficult, especially in remote or hybrid work settings. HR managers must find creative ways to maintain a positive work culture and employee morale.

In summary, HR managers are instrumental in managing an organization’s human capital, but they face numerous challenges in today’s dynamic business environment, such as talent acquisition, diversity and inclusion, legal compliance, adapting to technology, and employee engagement. Handling these challenges effectively is essential for the success of an organization.

2. Describe the process of human resource planning with illustrations. Briefly discuss the problems in human resource planning.

Human resource planning is a critical function in an organization that involves strategically managing the workforce to ensure that it meets the current and future needs of the organization. It encompasses a systematic process of forecasting, identifying, and addressing human resource requirements. Here is an overview of the process of human resource planning, along with some common problems associated with it:

1. Forecasting Organizational Needs:

The first step in human resource planning involves forecasting the organization’s future staffing requirements. This can be based on various factors such as business growth, new projects, employee turnover, and changes in market conditions.

Illustration: If a company plans to expand its operations into a new market, it may forecast the need for additional sales and marketing personnel.

2. Inventory of Current Human Resources:

An organization needs to assess its current workforce. This includes gathering information on the skills, qualifications, and experience of existing employees.

Illustration: The HR department might create an inventory of all current employees, including their job roles, skills, and tenure.

3. Gap Analysis:

A gap analysis involves comparing the forecasted needs with the current workforce. This step identifies any discrepancies between the required and available workforce.

Illustration: If the forecast indicates a need for 10 more software developers, but the current workforce only has five, there is a gap to be addressed.

4. Recruitment and Selection:

Once gaps are identified, the organization can plan to fill these gaps through recruitment and selection processes, which may include hiring new employees or upskilling existing ones.

Illustration: To address the shortage of software developers, the company might initiate a recruitment drive to hire additional developers.

5. Training and Development:

To overcome skill gaps or prepare employees for future roles, training and development programs may be implemented.

Illustration: The organization might provide coding courses to existing employees to bridge the skill gap.

6. Succession Planning:

Identifying and preparing potential successors for key positions within the organization is crucial for ensuring continuity.

Illustration: Designating a junior manager as the potential successor for the current CEO.

Problems in Human Resource Planning:

Inaccurate Forecasting: Forecasting future human resource needs can be challenging, and inaccurate predictions can lead to overstaffing or understaffing.

Economic Uncertainty: Economic fluctuations and unforeseen market changes can disrupt human resource plans, making it difficult to anticipate the organization’s workforce requirements accurately.

Changing Technology: Rapid technological advancements may render certain job roles obsolete, making it essential to continually update human resource plans to address evolving skill requirements.

Legal and Ethical Issues: Adhering to labor laws, regulations, and ethical standards can be complex and may pose challenges when making decisions related to hiring, firing, and employee development.

Resistance to Change: Employees or management may resist changes in their roles or responsibilities, which can hinder the implementation of human resource plans.

Data Quality and Availability: Human resource planning relies on accurate data, and problems may arise if data is incomplete or outdated.

Budget Constraints: Limited budgets can affect an organization’s ability to recruit, train, or hire as needed.

Diversity and Inclusion: Ensuring diversity and inclusion in the workforce can be challenging, and overlooking these aspects can lead to a lack of representation.

Effective human resource planning involves ongoing monitoring and adjustment to adapt to changing circumstances and organizational needs. Addressing these problems through strategic planning and adaptability is essential for a successful human resource planning process.

3. Discuss the salient features of job analysis. Explain any two methods of job analysis with the help of suitable examples.

Job analysis is a systematic process used in human resource management to gather, document, and analyze information about a job and its requirements. It plays a crucial role in various HR functions, including recruitment, selection, performance evaluation, training, compensation, and job design. The salient features of job analysis are as follows:

Systematic Process: Job analysis is a structured and systematic process. It involves a step-by-step approach to collect and analyze data related to a job. This process ensures accuracy and consistency in job information.

Data Collection: The primary objective of job analysis is to collect relevant data about a job. This data may include job duties, responsibilities, skills, qualifications, working conditions, and performance standards.

Objective and Subjective Data: Job analysis combines both objective and subjective data. Objective data includes measurable aspects such as the physical requirements of the job, while subjective data may involve interpersonal skills and communication abilities.

Involvement of Various Methods: Job analysis can be carried out using various methods and techniques, depending on the specific requirements of the organization and the job being analyzed.

Involvement of Multiple Stakeholders: It often requires collaboration between multiple stakeholders, including employees, supervisors, managers, and HR professionals. Input from these parties helps ensure a comprehensive and accurate job analysis.

Ongoing Process: Job analysis is not a one-time activity. Jobs evolve over time, and job analysis needs to be regularly updated to reflect these changes. This makes it an ongoing and dynamic process.

Now, let’s discuss two methods of job analysis with suitable examples:

Observation Method:

Description: This method involves an observer directly watching and documenting an employee’s job activities and behaviors. The observer can be an HR professional, supervisor, or an employee’s peer.

Example: In a manufacturing plant, a supervisor observes a machine operator’s job. The observer notes the operator’s tasks, the sequence of operations, and the equipment used. This information is then used to create a detailed job description and specification.

Interview Method:

Description: The interview method involves structured or unstructured interviews with employees, supervisors, or subject matter experts to gather information about the job, its requirements, and the employee’s perspective.

Example: In a software development company, an HR manager conducts interviews with software engineers to understand their roles. They ask questions about the specific programming languages they use, the project management tools they are familiar with, and their communication with other team members. This information helps in creating job descriptions and determining training needs.

In summary, job analysis is a fundamental process in human resource management that helps organizations understand the requirements of different jobs within the company. The choice of method for job analysis depends on the nature of the job, the available resources, and the organization’s specific needs.

4. What are the basic principles of compensation administration ? Briefly explain the major components of industrial wage structure of India and highlight the recent developments.

The basic principles of compensation administration involve designing and managing a compensation system to attract, retain, and motivate employees while ensuring fairness, competitiveness, and cost-effectiveness. Here are some key principles:

Equity: Compensation should be fair and equitable, both internally (within the organization) and externally (compared to industry standards). Employees in similar roles should receive similar pay.

Competitiveness: Compensation should be competitive in the job market to attract and retain talented employees. This involves regularly benchmarking salaries against industry peers.

Performance-Based: Linking pay to performance is crucial. Employees who perform well should be rewarded with higher pay or bonuses, motivating them to excel.

Legal Compliance: Compliance with labor laws and regulations is essential to ensure that compensation practices align with legal requirements, including minimum wage laws and equal pay regulations.

Transparency: Open communication about the compensation structure helps employees understand how their pay is determined, reducing the potential for misunderstandings and disputes.

Flexibility: Compensation plans should be flexible to adapt to changing market conditions, business goals, and individual employee needs.

Regarding the industrial wage structure of India and recent developments:

Major Components of Industrial Wage Structure in India:

Basic Salary: This is the fixed component of an employee’s salary and is usually a significant portion of their total compensation.

House Rent Allowance (HRA): Many companies in India provide HRA to employees to help with their housing expenses. The amount can vary based on the city of residence.

Special Allowances: These allowances can include conveyance allowances, medical allowances, and other specific allowances to cover particular expenses.

Bonus and Incentives: Bonuses and incentives are typically linked to individual or company performance. Examples include annual bonuses, performance bonuses, and sales incentives.

Provident Fund (PF) and Gratuity: Employers in India contribute to employees’ PF, and gratuity is a lump-sum payment made to employees upon retirement or completion of a certain period of service.

Employee Provident Fund (EPF): This is a mandatory savings scheme, with both the employee and employer contributing to the fund.

Social Security Benefits: Some employers provide social security benefits like medical insurance, life insurance, and pension schemes.

Recent Developments:

Recent developments in India’s industrial wage structure include:

Changes in Labor Laws: The Indian government has introduced significant labor law reforms to simplify and modernize labor regulations, making it easier for businesses to operate while safeguarding workers’ rights.

Minimum Wage Revisions: Some states in India have revised their minimum wage rates to ensure that workers receive fair compensation for their labor.

Performance-Linked Pay: Companies are increasingly adopting performance-linked pay to align employee compensation with individual and organizational performance.

Variable Pay Components: Organizations are moving toward more variable pay components to incentivize and reward high performers.

Greater Focus on Employee Benefits: In response to the COVID-19 pandemic, many companies are enhancing their employee benefits packages, including health insurance and mental health support.

Increasing Gender Pay Equity: Companies are paying more attention to closing the gender pay gap and ensuring equal pay for equal work.

These recent developments reflect the ongoing evolution of India’s industrial wage structure to adapt to changing economic and social conditions.

5. Narrate the growth of trade unions and employers’ associations in India.

The growth of trade unions and employers’ associations in India has been a significant aspect of the country’s labor and industrial history. The development of these organizations can be traced through various stages:

Early Beginnings (19th Century):

Trade unions in India have their roots in the late 19th century when the country was under British colonial rule. The first recorded trade union was the Bombay Mill Hands Association, formed in 1890. These early unions primarily focused on wage-related issues and working conditions. Employers’ associations, on the other hand, started forming in response to the growing influence of trade unions.

The Amalgamated Association of Railway Servants (AARS) (1897):

One of the earliest and most prominent trade unions, the AARS, was formed in 1897. It played a crucial role in representing the interests of Indian railway workers.

Formation of the All India Trade Union Congress (AITUC) (1920):

The AITUC was founded in 1920 and became the first nationally recognized trade union federation in India. It was closely associated with the Indian National Congress and played a significant role in the labor movement during the struggle for independence.

Growth During Independence Movement:

The labor movement saw significant growth during India’s struggle for independence. Trade unions were instrumental in pushing for workers’ rights and social justice, which were closely tied to the broader freedom struggle.

Post-Independence Period (1947 onwards):

After India gained independence in 1947, trade unions continued to expand and diversify. Various unions emerged across different sectors, representing the interests of workers in industries, services, and agriculture.

Legal Framework:

The Trade Unions Act of 1926 and subsequent amendments laid the legal foundation for trade unions in India, ensuring recognition and protection of their rights. Employers’ associations also organized themselves within a legal framework.

Split in Trade Union Movements:

The trade union movement in India witnessed a split in the 1940s between those aligned with communist ideologies and those associated with other political parties. This division contributed to the proliferation of trade unions with different affiliations.

Employers’ Associations:

Employers’ associations also grew in response to the labor movement. Organizations such as the Federation of Indian Chambers of Commerce and Industry (FICCI) and the Confederation of Indian Industry (CII) were established to protect the interests of employers and foster dialogue between management and labor.

Challenges and Conflicts:

Over the years, trade unions and employers’ associations have often found themselves in conflicts over issues such as wages, working conditions, and labor laws. These conflicts have sometimes led to strikes, lockouts, and negotiations.

Ongoing Evolution:

The landscape of trade unions and employers’ associations in India continues to evolve. With economic liberalization and globalization, new challenges and opportunities have arisen, and these organizations have adapted to changing labor and market dynamics.

In conclusion, the growth of trade unions and employers’ associations in India has been a complex and dynamic process. These organizations have played a crucial role in safeguarding the rights and interests of workers and employers and have been key players in shaping India’s labor policies and industrial relations.

Section–B

6. Read the following case and answer the questions given at the end :

Vishal Industries Ltd., is a medium-sized engineering factory employing 250 employees. The Factory Manager advised the Personne Manager of the company to select a right man to fill up the vacancy of a “Time-Keeper”. The Personnel Manager inserted an advertisement for this post in prominent local newspapers and received a large number of applications although specific job description and job requirements were embodied in the advertisement. After preliminary screening of applications, the Personnel Manager selected only 6 applications out of 197 and sent them “Application Blank” for collecting their detailed information. On receipt of Applications and on further scrutiny, it was observed that two candidates were age-barred, although they had a good experience at their credit and one the candidate had a suspicious personal life. The Personnel Manager therefore selected only 3 candidates and sent them call-letters for a personal interview on a stipulated date. Only two candidates out of three appeared for the interview before the Interview Panel consisting of three interviewers. The panel had therefore to take a decision on selection, either of Mr. Tukaram Patil or Mr. Girish Mahajan. The personal traits and merits of these two candidates are as follows : Mr. Tukaram Patil, a young man of 30 years, has worked for a year in the Time Office of a reputed company. He is an exceptionally sociable amicable individual who enjoys mixing with employees. His verbal skills are average, but he has a good degree of hardness. He can sit late in office and prepare payrolls of employees and complete the checking of paysheets a day before the actual date of payment. He does not demand extra remuneration or over-time for sitting late hours in office, He is a good sportsman also and has worked as a secretary of a sports club. A glaring weakness as revealed during the interview is that Mr. Patil’s memory is not strong and he may forget a task assigned to him. But he is straight-forward and frankly accepts his limitations. Mr. Girish Mahajan, is also a youth, aged 25, and has a good personality, above average communication skills, but at times is “rough” in dealing with people. His clerical and computational skills are excellent. He does not on his own mix with people or take part in extra curricular activities. He joined a textile mill as a clerk in the Time Office and was plomoted to the post of Assistant Time Keeper within a period of 5 years. He is against the principle of sitting late in the office. His sense of time keeping, punctuality is good and regular. He feels that attendance of employees must be posted in the regular register on the same day and paysheets must be kept ready on 1st of every month and sent to A/c Department, for checking before the 3rd instalment. Similarly, he prepares PF/ESI statements and returns in time and submits the same to respective Government authorities in time. However, Mr. Girish Mahajan is short tempered and at times he also had heated arguments with managerial executives. He limits his existence to his working table and if anybody unconnected with the time-office work comes near his table, he loses his temper.

Questions :

(a) In terms or overall capabilities and job requirements, whom will you recommend out of the two candidates, in your capacity as a Personnel Manager ?

(b) In case the other two members of the Interview Panel differ from your decision, How will you convince them ?

(a) In terms of overall capabilities and job requirements, I would recommend Mr. Tukaram Patil for the position of “Time-Keeper.” Here are the reasons for my recommendation:

Sociability and Employee Relations: Mr. Patil is described as exceptionally sociable and amicable, and he enjoys mixing with employees. This is a crucial trait for a Time-Keeper who needs to interact with employees to record their attendance accurately.

Flexibility and Willingness to Work Late: Mr. Patil is willing to sit late in the office to prepare payrolls and complete other time-related tasks, even without demanding extra remuneration. This shows dedication and commitment to the job.

Good Sportsmanship: Mr. Patil’s experience as the secretary of a sports club indicates his ability to work in a team and manage social activities. This can be beneficial for fostering a positive work environment.

Self-Awareness: Mr. Patil’s willingness to acknowledge his memory limitations demonstrates self-awareness and honesty.

(b) If the other two members of the Interview Panel differ from my decision, I would try to convince them by highlighting the following points:

Employee Relations: Mr. Patil’s sociability and willingness to interact with employees can lead to better rapport with the workforce, which is essential for a Time-Keeper’s role.

Dedication and Commitment: Mr. Patil’s readiness to work late without extra remuneration indicates his commitment to fulfilling his responsibilities efficiently.

Teamwork and Social Skills: His experience as the secretary of a sports club demonstrates his ability to work effectively in a team and manage social interactions.

Acknowledging Limitations: Mr. Patil’s straightforwardness in acknowledging his memory limitations is a valuable quality, as it can lead to better communication and problem-solving.

Training and Development: Implement training programs that focus on improving communication and interpersonal skills for all employees, not just those in leadership roles.

Conflict Resolution Workshops: Organize workshops on conflict resolution to equip employees with the skills to handle disagreements and differences of opinion professionally.

Employee Engagement Initiatives: Develop and promote initiatives that encourage employee engagement, such as team-building activities, social events, and recognition programs.

Open Communication Channels: Create open channels for employees to express concerns, grievances, or suggestions, and ensure that these are addressed promptly and transparently.

Leadership Training: Provide leadership training to managers and supervisors to help them become more effective in managing their teams and resolving conflicts.

Regular Feedback Mechanisms: Establish regular feedback mechanisms, including performance reviews and anonymous suggestion boxes, to gather input from employees on their working relationships and overall job satisfaction.

Diversity and Inclusion: Promote diversity and inclusion in the workplace to ensure that all employees feel valued and included, regardless of their background or characteristics.

By implementing these measures, the organization can foster a more positive and harmonious work environment, leading to better interpersonal relations among employees.