HRM PPT Quiz SEM 1

• Human Resource Planning (HRP) is the process that ensures a firm has the right number and type of people, in the right place, at the right time, doing tasks they are most suited for
• Factors affecting Human Resource Planning include:

  • Organizational growth cycles and planning
  • Environmental uncertainties
  • Time horizons
  • Nature of jobs being filled
• Demand Forecasting Techniques:

  • Managerial Judgement
  • Trend Analysis
  • Ratio Analysis
  • Delphi Technique
  • Regression Analysis
  • Work study method
• Trend Analysis Method forecasts employment requirements based on organizational indices like:

  • Business Factor Annual Volume of Sales
  • Total Number of Employees
  • Productivity Ratio
  • Calculate Human Resources demand
  • Forecasted Human Resource Requirement
• HR Supply Forecasting measures the number of people likely to be available within and outside the organization, covering:

  • Existing human resources
  • Internal sources of supply
  • External sources of supply
• Present Employees can be assessed through:

  • Skills Inventories
  • Management Inventories
• Internal Sources of Supply include inflows and outflows
• Turnover Rate is a factor to consider
• Absenteeism refers to unauthorized absence from work when an employee is scheduled to work but fails to report for duty
• External Supply involves looking for prospective employees from external sources, bringing in new blood and experience, which can vary from industry to industry
• HR Programming involves balancing forecasted demand and supply to achieve the right number of employees at the right time, while HR Implementation requires converting the HR plan into action
• Benefits of Proper Compensation Administration:

  • Attracts talent
  • Motivates Employees
  • Rewards Performance
  • Reduces Turnover
  • Manages Compensation Budget
• Cost-to-Company (CTC):

  • Total amount spent by a company on an employee, including basic pay, allowances, provident fund, and others
  • Not the same as the amount taken home monthly
  • Compensation Components:
  • Basic pay (60% of CTC)
  • DA
  • HRA (of Basic pay)
  • Special allowance
  • Conveyance allowance
  • Provident Fund
  • Professional Tax
• Basic salary:

  • Acts as the base income
  • Fixed part of compensation package excluding benefits and bonuses
  • Usually set at 40-60% of CTC
• Allowances:

  • Monetary benefits provided by the employer to meet service-related expenditures
  • Common forms include DA, HRA, LTA, and conveyance or transport allowance
• Net Salary calculation:

  • Basic Salary + Allowances - Income Tax/TDS - Employer’s Provident Fund - Professional Tax
  • Gross Salary calculation: Basic Salary + Other Allowances
• Different methods of wage payment:

  • Time Rate System
  • Piece Rate System
  • Combination of Time and Piece rate system
• Different Methods of Incentive Plans:

  • Halsey Plan formula: W=TR+(S-T)R% 50%
  • Rowan Plan
• Gratuity:

  • Part of the salary received from the employer in gratitude for the work done
  • Payment ensured by The Payment of Gratuity Act, 1972
  • Eligibility: Minimum 5 years of service
• Gratuity calculation formula:

  • Based on 15 days of last drawn salary for each completed year of service or part thereof in excess of six months
  • Formula: (15 X last drawn salary X tenure of working) divided by 26
• The Second Schedule of the Industrial Disputes Act, 1947 includes:

  • The propriety or legality of an order passed by an employer under the standing orders
  • The application and interpretation of standing orders
  • Discharge or dismissal of workmen including reinstatement of, or grant of relief to, workmen wrongfully dismissed
  • Withdrawal of any customary concession or privilege
  • Illegality or otherwise of a strike or lock-out
  • All matters other than those specified in the Third Schedule
• The Third Schedule of the Industrial Disputes Act, 1947 includes:

  • Wages, including the period and mode of payment
  • Compensatory and other allowances
  • Hours of work and rest intervals
  • Leave with wages and holidays
  • Bonus, profit sharing, provident fund and gratuity
  • Shift working otherwise than in accordance with standing orders
  • Classification by grades
  • Rules of discipline
  • Retrenchment of workmen and closure of establishment
  • Any other matter that may be prescribed
• Definition of Industrial Dispute:

  • Any dispute or difference between employers and employers, or between employers and workmen, or between workmen and workmen connected with employment, non-employment, terms of employment, or conditions of labor of any person
• Objectives of the Industrial Disputes Act, 1947:

  • Promotion of measures for securing and preserving amity and good relations between employers and workers
  • Investigation and settlement of industrial disputes
  • Prevention of illegal strikes and lock-outs
  • Relief to workmen in the matter of lay-off and retrenchment
  • Promotion of collective bargaining
• Features of the Industrial Disputes Act, 1947:

  • Applicable to the whole of India, including Jammu and Kashmir
  • Encourages arbitration over disputes between employers and employees
  • Provides for setting up works committees for mutual consultation
  • Establishes permanent conciliation machinery with time limits
  • Emphasizes compulsory adjudication, conciliation, and voluntary arbitration of industrial disputes
  • Empowers the Government to refer disputes to appropriate authorities like Labour court, Industrial tribunal, and National tribunal
• • Restricts the right to strike and lock-out under certain conditions
• • Public Utility Service can be declared by the Government for specified periods
• Terms under the Industrial Disputes Act, 1947:

  • Appropriate Government refers to Central Government/State Government
  • Arbitrator is a person appointed to determine differences between two parties
  • Wages include all remuneration payable to a workman in terms of money
  • Industry means systematic activity for the production, supply, or distribution of goods or services for profit
  • Workmen include any person employed in an industry for manual, skilled, or supervisory work
  • Industrial Establishment refers to an establishment where industry is carried out
• Authorities under the Industrial Dispute Act, 1947:

  • Works Committee
  • Conciliation Officers
  • Board of Conciliation
  • Court of Inquiry
  • Labour Court
  • Industrial Tribunal
  • National Tribunal
• Works Committee (Sec-3):

  • Constituted based on appropriate Government order
  • Applicable to industrial establishments with 100 or more workmen
  • Consists of representatives of employees and workmen
  • Duties include promoting good relations and commenting on common interests
• Conciliation Officers (Sec 4):

  • Appointed by the appropriate Government for holding conciliation proceedings
  • Duties include facilitating settlements and submitting reports within specified timeframes
• Board of Conciliation (Sec 5):

  • Constituted by the Government for promoting settlement of industrial disputes
  • Consists of a Chairman and members representing parties to the dispute
  • Duties include investigating disputes and submitting reports within two months
• Court of Inquiry (Sec 6):

  • Constituted by the Government to inquire into matters relevant to industrial disputes
  • Consists of independent persons and has judicial powers
  • Duties include reporting to the Government within 6 months
• Labour Court (Sec 7):

  • Consists of a single person appointed by the appropriate Government
  • Duties include adjudicating on industrial disputes and submitting awards within specified periods
• Industrial Tribunal (Sec 7-A):

  • Constituted by the Government for adjudicating industrial disputes
  • Consists of a single person appointed by the Government
  • Duties include submitting awards within specified periods
• National Tribunal (Sec 7-B):

  • Constituted by the Central Government for adjudicating disputes of national importance
  • Consists of a single person appointed by the Central Government
  • Duties include submitting awards within specified periods