List of important Interview question and answers on HR (Human Resource Management)!
150 + HR (Human Resource Management ) Interview Questions and Answers
Interview Question 1. Define HRM.
Ans. In simple words, HRM is a management function that helps managers’ recruit, select, train and develops members for an organisation. Obviously, HRM is concerned with the people dimension in organisation.
According to George T. – “A series of integrated decisions that form the employment relationship; their quality contributes to the ability of the organisation and the employees to achieve their objectives.”
According to David A. – “HRM is concerned with the people dimension of management. Since every organisation is made up of people acquiring their services, developing their skills, motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organisation are essential to achieving organisational objectives.”
According to Edwin B. Flippo – “Human Resource Management is the planning, organising, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the end that industrial, organisational and social objectives are accomplished.”
Interview Question 2. What are the various features of HRM?
Ans. The various features (or nature) of the HRM include:
1. It is a systematic & continuous process.
2. It is concerned with managing people at all levels of the organization.
3. It is applicable to all commercial organization and non-commercial organizations.
4. The principles and practices applied by the HRM are common to all organizations regardless of their nature, size, scope and purpose.
5. It is a multidisciplinary & dynamic process.
6. It places emphasis on the accomplishment of organization’s objectives.
7. It brings long-term benefits to employees, organizations & society as whole.
8. It aims at developing & maintaining team spirit.
9. It also aims at development of employees’ potential to the maximum possible extent.
10. It is challenging to effectively manage human resources.
Interview Question 3. What do you mean by HRD?
Ans. Human Resource Development (HRD) focuses on improving the quality of workforce in the organization. It is a process that develops skills, competencies, knowledge and attitudes of the employees through proper training and development programmes. It ensures that employees are given proper training as per the needs of the organization, changes in technology, and changes in economic and business environment.
Apart from training development function, the HRD focuses on performance appraisal, career advancement, employee welfare, organizational development and maintenance of human resource records. It ensures that there is a team of competent workforce for attaining present and future goals of the organization.
Human Resource Development is a concept first introduced by Leonard Nadler in 1969. According to Nadler, “HRD refers to those learning experiences which are organized, for a specific time, and designed to bring about the possibility of behavioural change”.
According to American Society for Training and Development (ASTD), “HRD is an integrated use of training and development, organizational development, and career development to improve individual, group and organizational effectiveness.”
Interview Question 4. Differentiate between HRM and HRD.
HRM and HRD are two sides of the same coin. The former includes all managerial functions related to HR while the latter is normally understood as the development aspect of HR such as training, employee empowerment, career development and organisation development. We have defined HRD in the beginning of this book as the “development of head, hands and heart of every man and woman working in an organisation.”
Werner and DeSimone have defined HRD “as a set of systematic and planned activities designed by an organisation to provide its members with the opportunities to learn necessary skills to meet current and future job demands.” This definition emphasises the learning aspect at work. In majority organisations, HRM divisions look after HRD functions also.
Interview Question 5. What are the managerial functions of HRM?
i. Planning – Plan and research about wage trends, labor market conditions, union demands and other personnel benefits. Forecasting manpower needs etc.
ii. Organizing – Organizing manpower and material resources by creating authorities and responsibilities for the achievement of organizational goals and objectives.
iii. Staffing – Recruitment & Selection of an employee.
iv. Directing – Issuance of orders and instructions, providing guidance and motivation of employees to follow the path laid-down.
v. Controlling – Regulating personnel activities and policies according to plans. Observations and comparisons of deviations.
Interview Question 6. What are the factors that accelerate HRM in India?
1. Slow growth of HRM in India due to-
a. Late arrival of the Factory System.
b. Low Status of the Industrial Worker.
2. Professionalization of Human Resource Management.
3. Social Responsibilities of Business- Fair wages; adequate benefits; good working conditions; opportunity for growth; recognition of worker’s rights etc.
4. Change of Government attitude.
5. Abundance of cheap labour.
6. Weak labour movement.
7. Highly authoritarian culture.
8. Technological backwardness.
9. Instability in Employment.
10. Unhealthy growth of Trade Unions.
Interview Question 7. Explain the different types of promotion.
Ans. Promotions may be of following types:
1. Horizontal promotion – This type of promotion includes an increase in responsibilities, pay and a change in designation. However, the employee doesn’t shift the job classification. For example, an assistant manager in HR department may be transferred to production department.
2. Vertical promotion – In this type of promotion, an employee is moved to higher level in the hierarchy. This involves increase in pay, status and responsibilities.
Interview Question 8. What do you mean by career development?
Ans. Career development means the process of increasing an employee’s potential for advancement and career change. The interaction of psychological, sociological, economic, physical and chance factors that shape the sequence of jobs, occupations/ professions or careers that a person may engage in throughout a lifetime is called as career development. Career development is a major aspect of human development.
Career development can be defined as a systematic process of guiding the movement of human resources of an enterprise through different hierarchical positions.
Every organisation needs to provide career development opportunities for its employees. Career Development is defined as under:
Pietrolesa and Splete defines career development as “Career development is ongoing process that occurs over the life span; includes home, school and community experiences.”
Gysbers arid Moore states that “Career development is self-development over the life span through the integration of the roles, settings and events of a person’s life.”
Interview Question 9. What do you understand by time wage system?
Ans. Time wage system is generally known as day wage system or daily wages system. This system of wage payment is based on time that a worker devotes to his work at the workplace. The duration or period of time may be an hour, a day, a week, a fortnight or a month. Under this system no account is made for the actual amount of the work done by the workers.
As per this system the formulae are:
Wages = No. of Days Worked x Rate Per Day
Interview Question 10. What is career planning?
Ans. It is a process by which an employee decides his career goals and establishes a plan to achieve those goals. In order to set career goals, one has to identify his interests, knowledge, abilities and life goals. In today’s time, the organizations also assist their employees in the process of career planning. They provide information regarding various growth opportunities within the organization. They also conduct various training & development programmes. The organizations also benefit by assisting the process of employees’ career development.
Interview Question 11. What is e-selection?
Ans. E-selection technique is an online tool used for the purpose of workforce selection. E-selection techniques instantly provide an accurate picture of the candidate’s fitness for a specific position, his strengths, weaknesses and his inherent potential. Such tools assist the HR department by making the selection procedure easier. It also minimizes the errors of selection processes by accurately assessing the personality of applicants.
Interview Question 12. How can we assess the training methods?
1. Organizational requirements or weakness
2. Departmental requirements or weaknesses
3. Job specifications and employee specifications
4. Identifying specific problems
5. Anticipating future problems
6. Managements requests
9. Group conferences
10. Questionnaire surveys
11. Test of examinations
13. Performance Appraisal
Interview Question 13. What are application forms?
Ans. The application blank are the forms which are the forms which provides preliminary information regarding the interview by indicating areas of interest and discussion. It is a good means of making quick collection of verifiable (and therefore fairly accurate) basic historical data from the candidates.
It also serves as a convenient device for circulating information about the applicant to appropriate members of management and as a useful device for storing information for later reference. The information to be furnished in the applicant’s own handwriting is needed to know him properly and to draw tentative inferences about his suitability for employment. Many types of application forms sometimes very long and comprehensive and sometimes brief are used.
Interview Question 14. What are the limitations of performance appraisal?
1. Personal Bias
2. Halo Effect
3. Horn Effect
4. Lack of Uniform Standards
5. Appropriate Appraisal Technique
6. Wrong Appraisal by Superior
7. Stress on Individual and not on Performance
8. Central Tendency
9. Lack of Importance to Self-Development
11. Time-Consuming and Huge Paperwork
Interview Question 15. Explain the Kirkpatrick model of training evaluation.
Ans. He laid out four levels for evaluation of any training. This model is arguably the most widespread for evaluation in use. It is simple, very flexible and complete.
The four levels as described by Kirkpatrick are as follows:
1. Reaction of the Trainee – Thoughts and feelings of the participants about the training.
2. Learning – The increase in knowledge or understanding as a result of the training.
3. Behaviour – Extent of change in behaviour, attitude or capability
4. Results – The effect on the bottom line of the company as a result of the training.
5. The fifth level which is the Return on Investment (ROI) has been recently added which is not but a part of the original model.
Interview Question 16. What are the main components of wages and salaries?
Ans. Various components of wages and salaries are as under:
1. Basic Wage
2. Dearness Allowance
5. Fringe Benefits
6. Provident Fund
7. Overtime Pay
8. Other Components
Interview Question 17. Define work measurement.
Ans. Work measurement is a technique by which the actual time consumed in performing an operation is computed and ultimately serves as suitable time standard. It aims at providing a quantitative assessment of the human work in a specified job and to establish the proper time for the effective performance of that job. Work measurement goes hand in hand with method design.
Interview Question 18. Write note on the techniques of e-selection.
Ans. The various techniques of E-selection include:
1. Key Word Selection:
It is one of the popular and old ways to screen the applicants. It refers to use of the applications which search certain “key words” in the job seekers’ resumes. The application that searches the “key word” is executed on the large pool of received resumes. The recruiter needs to enter the relevant key word which is important to judge the consistency of applicant’s capabilities with the vacant position.
It helps the firm to filter the candidates which are suitable to meet the organizational requirements. The drawback of this method is- applicants who do not have the required keyword in their resumes are left out.
The online tests are conducted so as to short-list the candidates suitable for the particular job & organization. The questions in the test vary according to the nature of the job. Such tests could be structured according to the needs of the organization. This technique helps in reducing a vast pool of candidates to a smaller group having more potential. It also aids to assess the candidate’s ability, critical thinking, and decision making skills and so on. It also helps to understand self- assessment of candidate’s personality to find if the applicant’s traits are consistent with organizational culture or not.
If the candidate is found to be suitable for the job on the basis of online test results, online interviews are conducted. A live interaction with candidates enables to further analyse the suitability of the candidate. Lower costs / absence of any costs (for instance, online interview through Skype video call) have attracted lot of organizations to consider the online interviews as powerful medium for candidate selection. It helps organizations to watch their potential employees, speak to them, listen to their ideas and above all, to observe the way they demonstrate themselves.
Interview Question 19. Point out the demerits of on-the-job training.
Ans. The main disadvantages of on-the-job training method are:
1. Lack of time due to pressure of production.
2. Difficulty of accommodating trainee idiosyncrasies.
3. Cost in departmental budget.
4. Psychological pressures on trainee due to exposure before experienced workers.
5. Part-time instructor may lack skill in training.
Interview Question 20. Explain the term ‘Basic Wages’.
Ans. To evaluate the various wage components such as allowances, bonuses, premiums etc., and basic wage is used as a bench mark. Basic pay is based on two parameters the employee’s age or his years of service and the individual skills that determine his internal promotions and his hierarchical level.
Therefore, there is a strong hierarchy between employees. In this hierarchy each worker has a slightly higher or lower status in comparison to his fellows and that is determined by the relative rank inside the company, the seniority or the prestige of the attended university.
Interview Question 21. What are the benefits of job analysis?
Ans. The various benefits of job analysis are:
1. It helps in clearly defining authority and responsibility of every employee, which reduces duplication of work and increases overall efficiency.
2. It aids the process of human resource planning.
4. It helps in job designing, job evaluation.
5. It helps to organize and design training programmes.
6. It facilitates promotion & transfer.
7. It also aids the candidate for decision-making (i.e. to accept/reject the job) & career planning.
Interview Question 22. What are the bases of promotion?
Ans. To decide the basis of promotion is one of the most controversial issues in human resource management. The reason is each employee wants a basis which suits him the best. There are basically two bases of promotion — merit and seniority. However, in every type of organisation, some employees insist that promotion should be based on merit while others insist it to on seniority basis.
Therefore, the organisation faces a difficulty in selecting a basis of promotion which is able to satisfy its own needs as well as those of employees.
The bases of promotion are as under:
1. Promotion on Merit Basis
2. Promotion on Seniority Basis
3. Promotion on Merit-cum-Seniority Basis
Ans. It is the combination of observable and measurable knowledge, skills, abilities and personal attributes that contribute to enhanced employee performance which ultimately result in organizational success.
In other words, competency can be described as the behavioral attributes, skills, and knowledge required for carrying out the job in efficient manner. Every job has a requirement of specific set of competencies and the individuals who would perform the job need to be laced with those competencies. The concept focuses not only on what a person can do but also on what a person can learn. Such forward looking approach makes it quite popular amongst training providers and recruitment experts.
Interview Question 24. What are learning organizations?
Ans. A learning organization is the one which encourages continuous employee learning, values employee contributions, learns from past experience and disseminate the new knowledge throughout the organization for incorporation into day-to-day activities. In other words, a learning organization is the one that seeks to create its own future; that assumes learning is an ongoing process; and the one that develops, adapts, and transforms itself in accordance with the rapidly changing environment. Such approach enables the organization to survive and remain competitive.
The concept of learning organization is increasingly relevant given the increasing complexity and uncertainty of the organizational environment. Peter Senge has described five disciplines that must be mastered when introducing learning into an organization- Systems Thinking, Personal Mastery, Mental Models, Building Shared Vision, and Team Learning.
Interview Question 25. What do you mean by the term discipline?
Ans. With the point of view of an organisation, the term discipline means when employees follow rules, regulations and procedures of the organisation while discharging their tasks, duties and responsibilities.
To maintain discipline among employees is an integral part of the functions of management. To promote and maintain discipline for higher productivity and industrial growth is become crucial. A disciplined workforce can meet the challenge of competition and can achieve organisational objectives in a better way. Discipline also brings improvement in the morale, labour relations and cooperation among employees.
Interview Question 26. What are the advantages of on the-job training?
Ans. Following are the main advantages of on the-job training:
1. Away from the work and home pressures.
2. No transferability of training required.
3. Trainee can establish work relationships from the start.
4. No ‘off-the-job’ cost involved.
5. No additional staff needed.
6. Productive in terms of department’s work.
7. No special facilities needed.
8. Learning can be controlled.
9. Real life situation; not simulated.
Interview Question 27. What is piece rate/wage system?
Ans. A worker is paid for the amount of output, irrespective of the time taken in the wage system of Price Rate. In this system, there is no guarantee of minimum wage, but a fixed rate is paid for each unit of output. With due course of time such system can naturally be adopted where the worker repeats regularly a definite -operation or produces the same type of unit constantly.
The wages of a worker under this plan can be presented as follows:
Wage = N (Number of units produced) x R (Rate per unit)
Ans. All managers are HR managers as they all get involved in activities like selecting, training, compensating employees. Line managers have the final responsibility for achieving the organization’s goals. They also have the authority to direct the work of subordinates. Staff managers usually help and advice line managers in achieving organizational goals.
HR managers are staff experts. They assist line managers in areas like recruiting, selecting, training and compensating. Managing people, in a broader context, is every manager’s business and successful organizations generally combine the experience of line managers with the experience of HR specialists while utilizing the talents of employees to their greatest potential.
HR managers have to win the hearts of employees working alongside line mangers and deliver results in a cost-effective manner. HR managers are assuming a greater role in top management planning and decision making-a trend that indicates the growing realization among executives that HRM can make significant contributions to the success of an organization.
Interview Question 29. How does the external environment affect HRM?
Ans. The external environment consists of factors that affect an organization’s human resources from outside it.
a. Technological innovation
b. Economic factors
c. Employee’s organizations
d. Labour markets
e. Changing demand of employers
f. Legal factors
g. Human resource in the country
Interview Question 30. Define personnel management.
Ans. Definitions of Personnel management is defined as under:
E.F.L. Breach opines, “Personnel management is that part of management process which is primarily concerned with the human constituents’ organisation.”
R.G. Gokhle opines, “Personnel management is the specialised intelligent handling of the human factor by a separate department which could devote its full time for research along the line of improvement is industrial relations.”
Richard Calhoon opines, “Personnel management involves the task of handling the human problems of an organisation and is devoted to acquiring, developing, utilising and maintaining an efficient workforce.”
Interview Question 31. Explain ‘Dearness Allowance’ as a component of wages and salaries.
Ans. An integral part of the total compensation, a person receives for having performed his or her job is called as Dearness Allowance (DA). To illustrate, workers in India might have a base salary or pension, along with an allowance for housing and the dearness allowance.
Payment of Dearness Allowance Dearness allowance is paid to an employee to compensate him for the loss that is caused to him in the purchasing power of money on account of inflation. It may be paid under the terms of employment of otherwise. In both the cases, it is included in salary. However where this allowance is given under the terms of employment it forms part of the basic salary.
It is deemed under the terms of employment under the following two cases:
1. Provident Fund – In case when it is included in the ‘salary for the purpose of computation of annual contribution in a recognised provident fund.
2. Retirement Benefits – In case when it is included in the ‘salary for the purpose of computation of retirement benefits payable to an employee.
Interview Question 32. Explain the characteristics of career development.
Ans. The main characteristics of career development are as under:
1. An On-going Process – Career development is an ongoing process.
2. Transferability of Skills – By the career development one can develop and share transferability of skills and competencies.
3. Alignment of Two Goals – Career development aligns individual goals with organisational goals for increased satisfaction of employees.
4. Development of Skill and Competencies – By the help of career development, employees can develop skills and competencies required to fulfil present and future leadership roles within an organisation.
5. Work Culture – Career development strengthens professionally work culture in the organisations.
Interview Question 33. What are the main steps involved in training and development programmes?
Ans. Training and development programme generally involves the following main steps:
(1) Determination of T&D needs – This is the initial step in T&D programme. It involves identifying the specific skills and capabilities required for performing the job satisfactorily, and also the persons who need to be trained and developed.
(2) Designing the programme and selecting the methods – This step involves formulating the objectives in specific terms and selecting the appropriate methods and techniques for the purpose.
(3) Implementing the programme – Under this step, actual training is imparted to the trainees with the application of the selected methods.
(4) Evaluation – This step involves making assessment of the effectiveness of the programme and locating the areas of success and failure.
Interview Question 34. What are the methods involved on worker’s participation management?
Ans. The different methods involved on worker’s participation management are:
1. Board Level
3. Complete Control
4. Staff Councils
5. Joint Councils
6. Collective Bargaining
7. Job Enlargement and Enrichment
8. Suggestion Schemes
9. Quality Circles
10. Empowered Teams
11. Total Quality Management
12. Financial Participation
Interview Question 35. What are the general parameters used in QWL?
Ans. The general parameters used for determining the QWL are:
i. Adequate and fair compensation.
ii. Safety and healthy working conditions.
iii. Opportunity for developing skills and competencies.
iv. Career progression opportunities.
v. Chances for social networking.
Interview Question 36. What are the objectives of human resource audit?
Ans. The main objectives of Human Resource Audit are given below:
(i) To review the system of acquiring, developing, allocating and utilising human resources in the organisation.
(ii) To evaluate the extent to which line managers have implemented the policies and programmes initiated by top management.
(iii) To identify shortcomings in the management of human resources.
(iv) To evaluate the human resource staff.
Interview Question 37. Point out the areas in which management development take place?
Ans. Management development must take place in the following crucial areas considered as output variables:
(i) Knowledge change;
(ii) Attitude change;
(iii) Behaviour change;
(iv) Performance change; and
(v) End-operational results.
Interview Question 38. What are the objectives of job analysis?
Ans. The main objectives of job analysis are as follows:
1. Job Redesign- A job is analysed to simplify the process and methods involved in it such work simplification helps to improve productivity.
2. Work Standards- In order to establish job and time standards, a job has to be analysed in detail. A systematic study of job reveals the time that should be taken in performing the total task. Once the time requirements become known, standards relating to daily performance can be established.
3. Miscellaneous- Job analysis provides support to other human resource activities such as recruitment, selection, training, performance appraisal, job evaluation, safety etc.
Ans. It refers to any dissatisfaction or discontent experienced by employees at their job or workplace. It can occur due to various factors such as poor employee-employer relationship, excessive workload, inadequate compensation, HR policies and so on.
Every employee has the right to communicate his complaint to concerned authorities. The concerned authorities must respond and resolve the complaint within stipulated time. Ignoring the needs and grievances adversely affects performance, productivity and loyalty of employees. Hence, the management must give due attention and deal promptly with employees’ complaints.
Interview Question 40. Differentiate between job evaluation and merit rating?
Ans. Job Evaluation:
1. It means rating of each job indicating the relative value of jobs in terms of money.
2. Fixation of fair base rate of wages and salaries.
4. Incentive wage plans evaluate or measure a worker’s value regarding capacity to produce results. So, it is objective in nature.
1. It means evaluation of the performance of each worker pointing out the relative value of employees.
2. The efficiency of the worker performing the job is its concern.
3. Indication of the reward to be given for the performance of the employees above the base rate in the form of pay rise or promotion on the basis of merit or competence is the task of merit rating.
4. It is subjective in nature since it is a measure of worker’s other qualities.
Interview Question 41. How to discover employee grievance?
Ans. Grievances can be uncovered in a number of ways. Gossip and grapevine offer vital clues about employee grievances.
Various methods of discovering grievances are:
(a) Observation- A manager can usually track the behavior of people working under him (any change in behaviour is the indication).
(b) Gripe boxes/complaint boxes- Complaint boxes may be kept at prominent positions in the factory for lodging anonymous complaints pertaining to any aspect relating to work.
(c) Exit interviews.
(d) Open door policy- This is a kind of walk in meeting with the seniors when the employee can express his feelings openly about any work related grievance.
(e) Opinion surveys- Surveys may be conducted periodically to elicit the opinions of employees about the organisation and its policies.
(f) Grievance procedure- A systematic grievance procedure is the best means to highlight employee dissatisfaction at various levels.
Interview Question 42. What are the basic contents of job specification?
Ans. Job specifications, also known as man or employee specifications, is prepared on the basis of job specification. It specifies the qualities required in a job incumbent for the effective performance of the job.
Basic contents of a job specification are as follows:
1. Personal characteristic such as education, job experience, age, sex, and extra co-curricular activities.
2. Physical characteristics such as height, weight, chest, vision, hearing, health, voice poise, and hand and foot coordination (for specific positions only).
3. Mental characteristics such as general intelligence, memory, judgement, foresight, ability to concentrate, etc.
4. Social and psychological characteristics such as emotional ability, flexibility, manners, drive, conversational ability, interpersonal ability, attitude, values creativity etc.
Q43. Explain the purpose of performance appraisal.
Interview Question 43. Explain the purpose of performance appraisal.
Ans. Performance appraisal serves a number of purposes in organisation.
1. Appraisals provide information for such important decisions as promotions, transfer and terminations.
2. Appraisals identify T and D needs. They pinpoint employee skills and competencies that are currently inadequate but can be remedied if appropriate programmes are developed.
3. Performance appraisals can be used as a criterion against which selection and development programmes are validated. (Newly hired employees who perform poorly can be identified through performance appraisal.)
4. Appraisals also fulfil the purpose of providing feedback to employees on how the organisation views their performance.
5. Finally, performance appraisals are used as the basis for reward allocations. Decisions about who gets merit pay increases and other rewards are typically determined by performance appraisals.
Interview Question 44. What do you mean by mentoring?
Ans. Mentoring is the employee training system under which a senior or more experienced person (the mentor) is assigned to act as an advisor, counselor, or guide to a junior or trainee. The mentor is responsible for providing support to, and feedback on, the person in his or her charge. With this technique, the manager/senior gives on the job training to his junior/trainee. It is a process of developing skill and abilities of an employee through coaching, guiding and counseling.
Mentoring can be informal or formal. Informal mentoring takes place spontaneously between seniors and trainees. On the other hand, formal mentoring occurs through a program with an established structure. The success of mentorship programme depends on the interest and involvement of manager in training the employee. It also depends on the attitude of the trainee. He must be keen to learn new role and concepts. He must maintain positive attitude and accept feedback from his mentor positively.
Interview Question 45. Discuss the importance of recruitment.
Ans. Following points highlights the importance of recruitment:
1. Evaluation of Effectiveness – Recruitment increases organisational and individual effectiveness in the short as well as long term. It evaluates the effectiveness of various recruiting techniques and sources for all types of job applicants.
2. Reduction in the Probability – Recruitment brings reduction in the probability that job applicants, once recruited and selected, will leave the organisation only after a short period of time.
3. Meeting the Organisation’s Obligations – Recruitment meets the organisation’s legal and social obligations regarding the composition of its workforce.
4. Creation and Increase of the Applicants Pool – Recruitment creates a talent pool of candidates to enable the selection of best candidates for the organisation. It attracts and encourages more and more candidates to apply in the organisation as such, it lends to increase the pool of job candidates with minimum cost.
5. Establishment of Link – In every organisation recruitment links the employers with the employees.
6. Increases the Success Rate of Selection – Recruitment increases the success rate of the selection process. It does so by reducing the number of under qualified or over qualified job applicants.
7. Determination of the Present and Future Requirements – Recruitment determines the present and future requirements of the organisation in conjunction with the personnel planning and job analysis activities. It is also concerned with identifying and preparing potential job applicants who will be appropriate candidates.
Interview Question 46. Discuss the main factors that affect HR Policies.
Ans. The following factors influences the HR policies of an organisation:
1. Laws of the Country – Certain laws and labour legislations govern the different aspects of personnel matters. Policies are to be in conformity with the laws of the country.
2. Social Values and Customs – The codes of behaviour of any community should be taken into consideration before applying the policies.
3. Union Objectives and Practices – Several factors determines the HR policies. Some are how well the employees are organised? What is their bargaining capacity? What are their pressure techniques?
4. Stages of Development – Changes included as size of operations, scale of technology, innovations, fluctuations in the composition of workforce, decentralisation of authority and change in financial structure influence the adoption of HR policies.
5. Financial Position of the Organisation – The HR policies cost money later it will be reflected in the price of the product. As such, prices set an absolute limit to organisation’s HR policies.
6. Management Philosophy and Values – Management cannot work, together for any length of the time until there is clear broad philosophy and set of values which influence their actions on matters concerning the workforce.
7. Type of Workforce – The assessment characteristics of workforce and what is acceptable to them is the responsibility of the effective personnel staff. A policy that is not appropriate is hardly worth implementation.
Interview Question 47. Explain the concept of participation.
1. Participation in Decision Making:
(i) Workers have a say in decision making,
(ii) More persons participate to take decisions.
2. Actual Decision Making:
(i) Actual involvement in decision making.
(ii) Subordinates participate with superiors in decision making process.
(iii) Workers have considerable interest in these decisions.
(iv) Participation of this type is also known as joint decision making.
3. Control over Decision Making:
(i) It refers to “Any process through which one group determines what another group or persons will do.”
(ii) Involvement of members in the exercise of control through decision making in group meeting,
(iii) Subordinates are involved in determining the course of action at all the stages of decision making process.
Interview Question 48. Explain the methods of job evaluation.
i. Job Ranking – Ranking system is a very simple method of job evaluation. Under this system the job raters simply rank one job against various others without assigning point value.
ii. Job Classification and Grading Method – Numbers of predetermined grades or classifications are first established and then various jobs are assigned within each grade or class.
i. Point Rating System – Assumes it is possible to assign points to the different job factors as well as to each degree of each factor involved in jobs and the sum total of these points gives an index of relative value of jobs.
ii. Factor Comparison System – A mixture of point & simple ranking .After locating major common factors, each job is ranked for each compensable factor and then ratings are combined for each job in an overall numerical rating for the job, It is easy now to assign money value to jobs in direct proportion to points assigned.
Interview Question 49. What are the advantages of direct recruitment?
Ans. Advantages of Direct Recruitment:
1. Direct Recruitment provides “equal opportunity” to all employees.
2. It infuses new blood into system by their fresh perspective and new idea.
3. In the direct recruitment change is not resisted and reform comes by easily.
4. Direct Recruitment is suitable for the technical and professional field. As the fresher’s are best known about the up-to-date technology than the older experience employee.
Interview Question 50. What are the benefits of MBO?
Ans. MBO offers the following benefits:
i. Role Clarity- MBO helps to avoid role ambiguity and role conflict. Every individual understands his area of work and the role he is to play in the organisation.
ii. Objective Appraisal- The targets developed in MBO provide an objective criteria for evaluating performance. An employee knows in advance the results expected of him and the basis on which his performance will be judged.
iii. Motivation and Commitment- Active participation of subordinates in goal-Setting and performance review helps to satisfy ego and self- actualisation needs. Job satisfaction and morale of employees tend to be higher.
iv. Management Development- Continuous feedback and opportunities for self-control help to develop the leadership potential of lower level executives.
v. Coordination- Interactions between the subordinates and supervisors help to reduce internal conflicts which arise when managers compete for scarce resources. It becomes easier to initiate and implement organisational change.
Interview Question 51. What is the need for good appraisal system?
Ans. Needs of good appraisal system:
(a) Established with the supports of all line people who administer the system.
(b) Easy to understand and administer.
(c) Built an incentive or reward system.
(d) It provides feedback and goal setting process of employees.
Interview Question 52. Point out the factors influencing wages and salary.
Ans.There are some factors, which influencing wage or salary levels:
1. Demand for and supply of labour
2. Labour unions
3. Job requirements
5. State regulation
6. Ability to pay.
Interview Question 53. What are the causes of industrial disputes?
Ans. Following are the causes of industrial disputes:
(1) Wages and allowances
(2) Leave and hours of work
(4) Indiscipline and violence
(5) Personnel and retrenchment.
(6) Other reasons.
Interview Question 54. What are the measures to be taken to avoid industrial conflict?
Ans. Following are the measures taken to avoid disputes in industrial organisation:
(1) Model Standing Orders
(2) Code of Industrial Discipline
(3) Grievance Bargaining
(4) Collective Bargaining
(5) Works Committees
(6) Joint Management Councils
(7) Suggestion Schemes
(8) Joint Consultative Machinery
(9) Tripartite Bodies
(10) Labour Welfare Officers.
Interview Question 55. What are the objectives of industrial relations?
Ans. Objectives of Industrial Relations:
(1) Harmonious Relations between Employers and Employees
(2) Safeguard the Interest of Labour and Management
(3) Establish and Maintain Industrial Democracy
(4) Rise Productivity
(5) Established Industrial Peace
(6) A Healthy and Balanced Social Order
(7) Government Control
Interview Question 56. What are the objectives of quality circle?
Ans. The main objectives of a quality circle are:
1. It enhance the quality of goods and service produced;
2. It also increase safety and productivity of the organisation;
3. It enriched working life of employee;
4. It provide respect to the humanity and build a happy bright workshop.
5. It give opportunity to employee to use their wisdom and creativity;
6. It promote self and mutual development;
7. It encourages team spirit, cohesive culture, great harmonious human relation etc.
Interview Question 57. What is meant by industrial health?
Ans. Industrial Health is:
1. The promotion and maintenance of physical,’ mental and social well-being of workers and in all occupations.
2. Placing and maintenance of the workers in an occupational environment adopted to his physical and psychological equipment.
3. Prevention among workers of ill-health caused by the working conditions.
4. Protection of workers in their employment from risk resulting from factors adverse to health.
Interview Question 58. Explain the objectives of joint management council.
Ans. Objectives of JMCs are:
1. To create better understanding between workers and management;
2. To improve the efficiency of workers;
3. To suggest measures of reduction in wastage and increasing profits;
4. To educate workers so that they are well prepared to participate in these schemes;
5. To promote a more stable work force and workers safety; and
6. To satisfy the psychological needs of workers.
Interview Question 59. Why is industrial health and safety essential?
Ans. Following reasons are essential Industrial health and safety:
1. To improve employee’s morale.
2. To motivate employee towards the workplace.
3. To preserve the physical and mental health of employees.
4. To reduce industrial unrest, indiscipline and accidents.
5. For higher productivities.
6. To reduce labour turnover and absenteeism.
7. To reduce spoilage and cost of operations.
Interview Question 60. What are shop councils?
Ans. In the shop councils there is equal number of representatives from employers and workers side. According to this scheme, the Chairman of the council is to be nominated by management side while the vice chairman is elected by workers side. Its membership is not exceeding to twelve.
Function of this council is for a period of two years and meet at least once in a month. The decisions of the council are to be taken on the basis of consensus and implemented within a period of one month.
Interview Question 61. What are the consequences of stress?
Ans. A manager is most important person in the organisation. He takes all types of decision in the organisation. The consequences of stress can be three forms categories-physiological, psychological, and behavioural symptoms.
i. Physiological Symptoms:
According to the early research, stress could create changes in metabolism, increase heart and breathing rates, increase blood pressure, bring on headaches, and induce heart attacks. Therefore, the link between stress and particular physiological symptoms is not clear fully.
ii. Psychological Symptoms:
The term job dissatisfaction is the simplest and also most obvious psychological effect of stress. But stress shows itself in other psychological states. For instance tension, anxiety, irritability, boredom, and pre-crastination.
iii. Behavioural Symptoms:
Behavioural Symptoms include, changes in productivity, absence, and turnover, as well as changes in eating habits, increased smoking or consumption of alcohol, rapid, speech, fidgeting, and sleep disorders.
Interview Question 62. Explain the components of HR Audit Report.
Ans. The most important function of the human resource audit is to evaluate the human resource programmes and policies. While auditing the policies and programmes of the human resource management, it depends upon the records and reports supplied by the human resource department. After auditing the policies, practices and required areas of the human resource management a report has been prepared for consideration of the line or the top management.
This report is called audit report. There is no prescribed format of the report in case of human resource audit. The overall form and style of audit report is received by the human resource auditor. The rep ort is submitted to the top management after the audit work is over.
The following items should be included in the report:
1. Table of contents.
2. Preface giving a brief statement of the objectives.
3. A summary of the conclusions and recommendations of the HR audit.
4. The main report with analysis of data of each section on department concerned.
5. A summary which is general, comprehensive in nature and more in comparison to the brief prepared at the beginning of the HR audit report.
6. An appendix containing supporting data, which might be too voluminous to appear in the body of the audit report.
Interview Question 63. Describe the various forms of indiscipline.
Ans. The scope of misconduct can be extended to all or any of the following cases where it is found that the employee:
(i) Is grossly immoral and dishonest.
(ii) Indulges in such acts as are unsafe for the employer.
(iii) Does not discharge his duties properly, remains absent without leave.
(iv) Is insulting, abusive and disturbs the peace of others.
(v) Is unfaithful, corrupt and disloyal, cheat.
(vii) Disobeys orders.
(vi) Causes wilful damage to property, of the organisation, etc.
(viii) Resorts to illegal strike.
(ix) Indulges in the activities like theft, fraud and bribery.
Interview Question 64. What are the main objectives of career development?
Ans. The main objectives of career development are as under:
1. Providing Information
2. To Increase Self-Awareness among Employees
3. Ensuring Optimal Utilisation of Employees
4. Increasing the Morale of Employees
Interview Question 65. Differentiate between transfer and promotion.
1. Nature – Transfers are regular and frequent in nature.
2. Impact – Transfer often demotivates employees.
3. Concept on Employees – It involves a change in the job without change in position, pay and responsibilities.
4. Purpose – Transfers is made to meet the shortage of employees in some departments.
5. Movement – It involves lateral or horizontal movement.
1. Nature – Promotions are infrequent, if not irregular in nature.
2. Impact – Promotion always motivates employees and boost up their morale.
3. Concept on Employees – It results in improvement in pay, prestige, designation and responsibilities.
4. Purpose – Promotion is made with a view to recognising and rewarding the efficiency of employees.
5. Movement – It involves upward movement.
Interview Question 66. Explain the changing role of HRM?
Ans. The changing role of HRM are:
1. The challenge of HR managers today is to recognize talent and nurture the same carefully and achieve significant productivity gains over a period of time.
2. The role of HR manager is shifting from one of a protector and screener to that of a planner and change agent.
3. HR professionals can help an organization to select and train employees for emerging roles.
4. HRM function can transform its outlook from an internally focused, reactive, activity-driven, and control-oriented to being business-oriented, customer-focused, proactive, effectiveness- driven, and empowerment-oriented.
Interview Question 67. What is competency mapping?
Ans. Competencies are abilities, behaviors, knowledge, and skills that impact the success of employees as well as the organizations. Some common competencies include analytical thinking, communication, flexibility, integrity, and teamwork. Competency mapping is a process of identifying key competencies for the organization or a specific job and incorporating those competencies throughout the various processes (i.e. job evaluation, training, recruitment) of the organization.
Interview Question 68. What are the objectives of HR Policies?
Ans. Policies serve as chief guidelines among at the achievement of objectives of the organisation. The success or failure of an HR policy is determined on the basis of the attainment of the objectives, for which these were initially formulated.
HR policies are formulated for the achievements of objectives, chief whereof are as under:
1. Maximum Use of Human Resources:
Manpower can be ensured only when employees are scientifically selected and placed on a suitable job and that is the best use of it. The process of matching the job with individual is a crucial aspect in business organisation. Profits cannot be maximised so long as the business does not utilise the manpower to the best of its capabilities. HR policies define the job and their responsibilities and thereafter help in their proper handling.
2. Human Resource Development:
HR policies aims to encourage healthy and constructive competition among the entire workers or employees with a view to their growth.
3. Sound Industrial Relations:
Up to a large extent the efficiency of a business enhance depends upon industrial peace. A harmonious relationship must exist between employer and employees. HR policies aim at maintaining sound industrial relations.
4. Other Objectives:
These include the following:
(i) Correct recognition of workforce and protection of their prestige.
(ii) Protecting the workforce and their reputation.
(iii) Protecting the interests of labour and management.
Ans. The following are the prerequisites of successful participation:
1. Clearly defined and complementary Objectives
2. Free flow of information and communication
3. Representatives of workers from workers themselves
4. Outside trade union participation should be avoided
5. Workers’ education and training
6. No threat by participation
7. Association at all levels of decision-making.
Interview Question 70. What do you mean by job rotation?
Ans. An alternative to boredom in work place is job rotation. Job rotation implies moving of employees from one job to another without any fundamental change in the nature of the job. The employee may be performing different jobs that are of similar nature. The advantages of job rotation may be reduced boredom, broadening of employees’ knowledge and skills, and making them competent in several jobs rather than only one.
However, caution needs to be exercised while shifting people frequently from one job to another, as it may cause interruption or the employee may feel alienated in a new job. Another factor is job rotation does not provide the employee any challenge on the job and, hence, those employees who are seeking challenge may feel frustrated.
Interview Question 71. Describe social responsibility versus business.
Ans. The issue of corporate social responsibility remains perplexing to many who continue to be convinced that the goal of a business is only to increase profits. Yet, if we look around, we notice that in countries, such as Germany and Japan, with high trust or consensual practices, a much broader view is adopted and applied. The main question asked in these countries is ‘who is the corporation responsible and accountable to’.
In those countries, employees and customers tend to be equal partners with investors. In addition, the environment is also considered to be an important partner in many companies in Scandinavia. A survey of executive attitudes towards stakeholder capitalism conducted by the Japanese Ministry of Finance revealed an interesting contrast between France, Japan, and the United States.
Interview Question 72. Write a note on the activities of HRP?
Ans. The useful activities of HRP are as described under following head:
1. To Meet Manpower Requirements:
This activity can be attained through planning, recruitment and selection, training and development, introduction and placement, promotion and transfer, motivation and compensation to ensure that future manpower requirement are correctly met.
2. To Forecast Future Manpower Requirements:
Forecasting future is based on judgmental estimations. Mathematical projections are done, extrapolating factors like economic environment, development trends in industry, etc. On the other hand judgemental estimations are done depending on the specific future plans of a company by managerial discretion which is based on the past experience.
3. To Anticipate Problems of Manpower:
This activity can be carried by projecting present resources into the future and comparing the same with the forecast of manpower requirements. This helps in determining the quantitative and qualitative adequacy of manpower.
4. To Prepare an Inventory of Present Manpower:
Inventory like these contains data about each employee’s skills, abilities, work preferences, and other items of information.
Interview Question 73. Explain the procedure of job enrichment.
Ans. Certain aspects may be kept in mind while following the job enrichment procedure:
i. Increasing the responsibilities of the employees by adding a variety of tasks.
ii. Allowing employees to set their own standards of performance.
iii. Providing autonomy for the employee to execute the job.
iv. Encouraging the employees to innovate new techniques and review result.
v. Empowering the individual to make critical decisions in problem situations while on the job.
Interview Question 74. What is the principle objectives of career management?
Ans. The principal objective of career management is to develop and utilise the talents of employees during a period of time. Some of the major management’s initiatives in the area include the following – (i) provision of financial assistance and facilities to employees for meeting their career development needs, (ii) counselling by competent managers, (iii) providing opportunities for diverse job experiences, (iv) setting career paths, (v) distribution of relevant literature, (vi) provision of training and development programme both within the organisation and outside, (vii) conducting performance appraisal at suitable intervals, (viii) meeting special needs of employees, (ix) maintaining talent pools in the organisation and (x) giving regular feedback.
Many companies have included career aspect in their HR activities. Major responsibilities of HR departments are as follows – (i) discovering employees’ interests in career advancements and their potentials, (ii) determining organisation’s requirements and opportunities, (iii) matching employees’ needs with those of the organisation and (iv) adopting effective measures for career development.
Interview Question 75. What are the essential requirement of good grievance procedure?
Ans. Essentials of a good grievance procedure are:
1. A grievance should be dealt with in the first instance at the lowest level, i.e., with the immediate superior.
2. It must be made clear to the employee what line of appeal is, so that if he cannot get satisfaction from his immediate superior, he may know the next higher authority to whom he can go.
3. Grievances should be dealt speedily because delay causes frustration and tempers may rise and rumors may spread around the work.
4. The grievance procedure should be set up with the participation of the employees and it should be applicable to all in the organisation.
Interview Question 76. What are the obligations of employers towards employees?
Ans. Obligations of Employers toward Employees are:
i. Provide measures which would ensure conditions of safety for the employee as well as good and healthy working conditions for him;
ii. Provide the worker with work, raw materials, tools and equipment, and give him effective means for the realisation of his goals and aspirations;
iii. Pay a reasonable wage to the employee for the work he does, which should be in terms of his contract of service;
iv. Ensure that their business is conducted strictly in accordance with the laws of the country; and
v. Indemnify the employee for all the liabilities or losses or expenses he has incurred in consequence of his obedience of his employer’s orders or in the effective performance of his duties.
Interview Question 77. How can human resource utilization improved?
Ans. The following actions are required to improve the use of human resources:
(a) Conduct a productivity drive;
(b) Improve manpower budgeting and control techniques;
(c) Introduce work measurement;
(d) Use appropriate payment method by results; bonus and profit-sharing schemes;
(e) Improve motivation;
(f) Involve employees in improvement programmes;
(g) Introduce new technology;
(h) Negotiate appropriate productivity agreement; and
(i) Introduce training programmes based on an analysis of productivity needs
Interview Question 78. Differentiate between training and education.
Ans. Education refers to the process of imparting knowledge and building the character of individuals in a formal setting. It is a process aimed at overall development and enabling the individuals for developing right perspectives and channels of thinking. The term educated implies a certain level of transformation, which has already taken place as a result of the learning process. It is more experienced in the approach and attitude towards things.
Training is specific-content based job oriented, context based, and vocation oriented. Education is imparted in formal institutions like schools and colleges, whereas training is usually company specific and practice based. Education aims at identifying the potentials; training improves upon them. However, we may perceive them as complementary and mutually supportive.
Interview Question 79. What are the factors affecting recruitment?
The factors affecting recruitment may be divided into two categories:
1. Internal Factors:
(i) Organization’s growth and expansion plans.
(ii) Organization’s human resource planning strategy.
(iii) Recruitment policy of the organization.
(iv) Cost involved in recruiting employees.
(v) Organization’s size.
(vi) Role of trade unions.
(vii) Organizational culture.
(viii) Company’s image.
(ix) Company’s operations.
(x) Pay package of company.
(xi) Quality of work life.
(xii) Geographical spread of operations.
2. External Factors:
(i) Socio-economic factors.
(ii) Political and legal considerations like reservations of jobs for minorities.
(iii) Supply and demand of specific skill in labour market.
(iv) Employment rate.
(v) Technological factors.
(vi) Employment exchanges.
Interview Question 80. What is the need for learning in an organisation?
Ans. Every organisation need qualified and excellence personnel in their work environment. Thus, learning and development concept are used for properly provide knowledge to their personnel. It make personnel more effective and proactive. For this process, employees are able to cope with the existing challenges. It also makes plan for future strategy and implement it appropriately.
It teaches an employee how to think, what to think, when to think, why to think and under which circumstances think. It also gives knowledge to the employee how to develop an organisation in which path, help, cooperation and support of the management are acquired and make organisation a truly, “learning organisation”. For an organisation to be committed to learning and development the concepts of quality and flexibility occupy the place of prime significance.
Interview Question 81. Discuss the significance of employee-capacity building strategies.
Ans. The significance of employee-capacity building has been discussed in the following points:
1. It provides training and guidance to the individual for their career development
2. It helps in evaluating and measuring the current working capacity of the organisation.
3. It facilitated long-term decisions in the organisation.
4. It helps the organisation to acquire competitive advantage in identified fields.
5. It helps in utilisation of resources through consistent application of R and D.
Interview Question 82. What are the main features of TQM?
Ans. The main features are:
i. Customer Satisfaction:
Customer satisfaction is the primary goal of TQM. So it deeply study and understanding of changing customer needs and taking steps to satisfy these needs in a better way.
ii. Internal Customers:
Service to external customers depend on the speed and efficiency of internal customers (employees). Therefore, employees should be made to understand what to do, and how to do.
iii. Continuous Process:
Total quality management is not short-term process. It requires continuous improvement
iv. Management by Fact:
Management decisions and actions are based on facts about present quality levels and this is used as benchmark to improve farther.
v. Team Work:
Total quality management is people based management it requires team work.
Interview Question 83. How is HRM important for recent decades?
Ans. Human Resource Management has become very significant in recent decades due to the following factors:
(1) Growth of information technology.
(2) Rise of knowledgeable and professional workers.
(3) Rapid technological developments like automation, computerization, etc.
(4) Increasing proportion of women in the workforce.
(5) Increase in the size of organization.
(6) Growth of powerful nationwide trade unions.
(7) Rapidly changing on job and skills process.
(8) Growing expectations of society from employers.
Interview Question 84. What are the purpose of redeployment policy?
Ans. The purpose of Redeployment Policy has been discussed in the following:
i. To follow a consistent and a biased mechanism in administration of Redeployment.
ii. Proper skills to be inculcated and knowledge to be imparted to the redeployed staff in the interest of work efficiency.
iii. To make sure that the redeployed staff owe allegiance to the organisation.
iv. To motivate the redeployed staff and recognize their contribution.
Interview Question 85. Explain the special features of Voluntary Retirement Scheme (VRS).
Ans. The Features of Special VRS:
1. All permanent employees rendered surplus irrespective of age and service can opt for VRS.
2. Ex-gratia payment to VRS employee, equal to basic pay plus DA on the basis of length of service at the rate of 35 days for each completed year and 25 day for each remaining year.
3. Ex-gratia will be to a minimum of Rs.25,000/- or 250 days of emoluments.
4. The ex-gratia will be paid in lump-sum
5. The ex-gratia amount upto Rs.5.00 lakhs will be exempted from Income Tax.
6. The post held by the retiring incumbents should be abolished.
7. The VRS will be made applicable as per the order of Government issued in April 1989, steps for identification of surplus staff.
Interview Question 86. Why is human resource planning required?
Ans. Human Resource Planning is required to:
(a) Attract and retain the best employees,
(b) Increased employee commitment and satisfaction.
(c) Improve communication, team-building, productivity and integration.
(d) Lower employee turnover.
(e) Establish short and long-term HR policies and organisational structure to match your growth, and
(f) Maintain competitive, industry standard compensation and benefits.
Interview Question 87. Discuss the steps involved in MBO.
Ans. The main steps involved in performance appraisal through MBO are as follows:
(1) Set Organizational Goals:
First of all, goals of the organisation in key areas of performance are laid down. These goals are defined in clear, precise and measurable terms. Internal environment (strengths and weakness) and external environment (opportunities and threats) of the organisation is made to set these goals.
On the basis of organisational goals, performance standard for each employee are defined. Every subordinate writes down his own performance goals, which are work-related and career-oriented. His manager also writes down the goals he thinks the subordinate should strive for. Thus, employees at all levels are actively involved in goal setting.
(3) Performance Reviews:
Generally, performance review meetings held between the manager and the subordinate. In the review meetings, progress is assessed.
After every performance review, feedback on performance is communicated to the employee, so that he can regulate and improve upon his own performance. On the basis of performance review rewards are decided.
Interview Question 88. What is indiscipline or misconduct?
Ans. Transgression of definite rules where discrimination is left to the employee is termed as indiscipline or misconduct. In simple words, indiscipline or Misconduct is violation of rules. Any breach of these rules and discipline may amount to misconduct.
Misconduct is an act or conduct which is prejudicial to the interest of the employer or is likely to impair the reputation of the employer or create unrest and can be performed even outside the premises of the establishment and beyond duty hours. It is for the management to determine in its standing orders as to what shall constitute acts of misconduct as well as the quantum of punishment for them.
Indiscipline may be identified from its symptoms like change in the normal behaviour, absenteeism, apathy, go-slow at work, increase in number and severity of grievances, persistent and continuous demand for overtime allowance, lack of concern for performance, etc.
Interview Question 89. What are the advantages of 360 degree appraisal?
Ans. The advantages are:
1. Greater self-awareness of the top managers. It reveals strengths and weaknesses in their managing systems.
2. The gap between self-assessment and the views of one’s colleagues is reduced.
3. When peer group assessment is included teamwork thrives.
4. Facts about organisational culture and ambiance are brought to light.
5. Empowerment is facilitated.
6. Inflexible managers are forced to initiate self- change.
Interview Question 90. Point out the disadvantages of profit sharing.
Ans. Disadvantages of profit sharing are:
1. Workers become frustrated, when the company is going on depression, as they do not get so much share, which they were got regularly during the periods of prosperity.
2. It is difficult to establish and operate a successful profit-sharing plan.
3. Profit-sharing does not ensure a regular income to employees. They get profit only when the profits exceed a specified limit
4. It doesn’t encourages efficient workers as there is no distinction between efficient and inefficient workers, all workers get the same amount.
5. A share in profit is payable at long intervals after the final accounts of the company are prepared.
Interview Question 91. Explain the main features of fringe benefits.
Ans. The main features of Fringe Benefits are as follows:
1. Fringe benefits add to the worker’s standard of living or welfare.
2. It involves a labour cost for the employer and are not meant directly to improve efficiency.
3. These benefits may be statutory or voluntary.
4. These benefits are supplement to regular wages or salaries.
5. These benefits are paid to workers not for any specific job or performance, but stimulate their interest in the work.
Interview Question 92. Describe about the disadvantages of direct recruitment.
Ans. The following are the disadvantages of direct recruitment:
1. Direct Recruitment places young people over old, inexperienced over experienced, which hamper the organisation’s solidarity.
2. It kills the initiative of internal candidates.
3. It ignores the experience and practical candidate.
4. Older people cannot compete successfully with young entrants as they get out of touch with studies.
Interview Question 93. What are some of the criticism of India’s promotion system?
Ans. Some of the criticisms of Indian promotion system are discussed below:
(1) In the absence of systematic machinery like promotion boards, promotion is haphazard and arbitrary.
(2) Employees are unknown about the vacancies of post
(3) Seniority is given too much importance instead of merit
(4) Personal records of the employees were not satisfactorily kept.
Interview Question 94. Define bonus.
Ans. According to the Bonus Commission (1961), “Bonus is sharing by the workers in the prosperity of the concern in which they are employed. In the case of low paid workers such sharing in the prosperity arguments their earnings and helps to bridge the gap between the actual wage and the need based wage.”
It is a share of the workers in the prosperity of an enterprise. Bonus also regarded as an incentive to higher productivity. It is provided to all workers at the same rate, irrespective of their individual efficiency.
Interview Question 95. What are the benefits of employee welfare programme?
Ans. The benefits of welfare programmes are:
1. Happy families
2. Harmonious relationship at the work place
3. Efficiency in administration
4. Promote the productivity, and
5. Commitment among employees.
Interview Question 96. What are the fringe benefits provided to employees?
Ans. All these benefits are provided to the employees:
1. To protect employees against certain hazards, e.g. life insurance, old age pension etc.
2. To motivate employee towards the work places.
3. To recruit and retain the best employees.
4. To develop a sense of belongingness and loyalty among workers.
5. To improve work environment and industrial relations.
Interview Question 97. Explain the types of employee stock option plans.
Ans. Employee stock options plans are two types:
1. Incentive Stock Option:
Incentive stock option is that in which the employee is able to defer taxation until the share bought with the option are sold. The company does not receive a tax deduction for this type of option.
2. Non-Qualified Stock Option:
Non-qualified stock option is that in which the employee must pay income tax on the spread between the value of the stock and the amount paid for the option. The company may receive a tax deduction on the ‘spread’.
Interview Question 98. What are the causes of workplace accidents?
Ans. Basically, there are three causes of workplace accidents:
(a) Change occurrences
(b) Unsafe conditions or working conditions
(c) Unsafe acts on the part or employees.
Due to change occurrences, accidents are happened, but it is more or less depend upon the management’s control. Therefore, we will stress on unsafe conditions and unsafe acts.
Interview Question 99. What do you understand by grievance?
Ans. The International Labour Organisation (ILO) defines grievance as “a complaint of one or more workers in respect of wages, allowances, conditions of work and interpretation of service stipulation, covering such areas as overtime, leave, transfer, promotion, seniority, job assignment and termination of service.”
In the opinion of National Commission of Labour, “complaints affecting one or more individual workers in respect of wage payment, overtime, leave, transfer, promotions, seniority, work assignment and discharges constitute grievance.”
According to Michael J. Jucius, “the term ‘grievance’ implies “any discontent or dissatisfaction, whether expressed or not, whether valid or not, arising out of anything connected with the company that an employee thinks, believes or even feels, is unfair, unjust or inequitable.” thus, grievance is an imaginary feeling of dissatisfaction and injustice.
Interview Question 100. Define strikes.
Ans. According to the Industrial Disputes Act a strike means “a cessation of work by a body of persons employed in any industry, acting in combination or a concerted refusal under a common understanding of a number of persons who are or have been so employed to continue to work or to accept employment”.
Strike is the way through which employees arise their voice against the employer for fulfillment of their demand. It is the legal right of the employee. Strikes are of several types e.g., sit down strike, stay in strike, hunger strike, cat call/lighting strike, go slow, boycott, picketing etc.
Interview Question 101. What are the six important elements of quality circle?
Ans. Success of any organisation depends upon its structure and good functioning. Likewise a successful operation of the quality circle need a well-structured approaching.
A well-structured quality circle has the following six elements:
5. Steering committee
6. Top management
Interview Question 102. Define job analysis.
Ans. According to Edwin Flippo, “Job analysis is a process of studying and collecting information relating to the qualities and responsibilities of a specific job.” According to Decenzo and Robbins, “Job analysis is a systematic exploration of the activities within a job. It is a basic technical procedure, one that is used to define the duties, responsibilities and accountabilities of a job.”
Interview Question 103. How is workers’ participation in management is beneficiary?
Workers’ participation in management provides the following benefits:
(1) Higher Productivity
(2) Industrial Harmony
(3) Mutual Understanding
(4) Creativity and Innovation
(5) Industrial Democracy
(6) Less Resistance to Change
Interview Question 104. How is time wage system suitable?
Ans. The time wage system is suitable in the situations where:
1. The production unit is small and direct supervision is possible.
2. The output of the individual workers cannot be accurately measured.
3. Work delays are frequent and beyond the control of employees.
4. The standard performance cannot be measured.
5. The job relates to office or clerical work or some other.
6. The given quality of work is of utmost significance such as tool making, testing, and inspection, etc.
Interview Question 105. What are the five levels in which one can evaluate training programme?
Ans.“Any attempt to obtain information on the effect of training performance and to assess the value of training in the light of that information”. Evaluation leads to controlling and correcting the training programme.
Hamblin suggested five levels at which evaluation of training can takes place:
iii. Job behavior
v. Ultimate value
Interview Question 106. How to Prevent Accidents?
Ans. Generally, accidents happened in the plants and it is due to unsafe conditions or unsafe activities done by the employees himself. So to prevent accidents in the plants it is better to apply these two methods.
1. By reducing unsafe conditions
2. By reducing unsafe acts.
Interview Question 107. What are the essential functions of joint management councils?
Ans. The following are the essential functions of JMCs:
1. They have consulted by the management regarding administration of standing orders, retrenchment, and introduction of new methods of production and closure, reduction of operations;
2. To receive information, discuss and give suggestions on the general economic situations of the unit; and
3. To share administrative responsibilities on matters of welfare, safety and training, schemes, working hours, breaks, holidays and payment of rewards.
Interview Question 108. What are the types of changes in HRS?
Ans. In the opinion of Klatt, Murdick and Schuster (1978), that each manager must be concerned with introducing four types of changes in the human resource system-
(1) Innovations by subordinates,
(2) Changes which the manager originates,
(3) Changes imposed by higher management, and
(4) Changes imposed by the environment.
Interview Question 109. Explain the main reasons for unsuccessful work committees?
Ans. The main reasons for unsuccessful of works committees have been:
i. Lack of demarcation between the functions of works committees and trade unions.
ii. Absence of legal sanction behind such decision.
iii. Illiteracy among workers, who cannot follow proceedings of works committee.
iv. Inter-union rivalry, rendering joint operation difficult.
v. Indifference on the part of the employers while discussing important issues with workers or their representative.
Interview Question 110. Critically examine the concepts of development.
Ans. Development is holistic in nature. It is an ongoing process. Unless dissuaded by certain prevailing circumstances, the individuals crave for development. Development is significant for both the employees and employers. For development of individual, learning is essential. Learning and development are related with each other. Without learning development is impossible. Moreover, learning is process of development.
There is no end to the process of development and like learning, it goes on all through the life of an individual. Development of an employee is reflected on the task performed by the employee in the organisation. A developed employee can perform work in better way than the undeveloped one.
A developed employee possess more knowledge and skill, and utilized it while performing the work of an organisation. Development of employee is spread from lower level to top level of management. It is necessary to keep the pace of development going on for accomplishing the prefixed targets and for drawing agenda for the time to come. Lack of such efforts will stand in the way of organisation to compete with others in the contemporary global economy.
Interview Question 111. What is stress?
i. According to Tim Newton, “Stress as an epidemic plaguing modernity.”
ii. According to Robbins, stress is a “dynamic condition in which an individual is confronted with an opportunity, constraint or demand related to what he or she desires and for which the outcome is perceived to be both uncertain and important.”
iii. Beehr and Newman define stress “as a condition arising from the interaction of people and their jobs and characterised by changes within people that force them to deviate from their normal functioning.”
Interview Question 112. Explain the main purposes/objectives of selection.
Ans. Main purposes of selection are as given under:
1. Selection of Suitable Candidate
2. Saving Cost
3. To Place Right Candidate at Right Job
4. Generating Information about Candidate
5. Determination of Applicant’s Capabilities
Interview Question 113. Write the advantages of job evaluation?
The main advantages of job evaluation are stated under:
1. Reduces Grievances
2. Better Recruitment and Selection
3. Harmonious between Labour-Management Relations
4. Helpful in Determining Wage and Salary
5. Ensures Fair Distribution of Rewards
6. Helps in Analysis
7. Assist in Wage and Salary Negotiations
Interview Question 114. What are the disadvantages of job evaluation?
Ans. Main disadvantages are as under:
1. Causing Disappointment to Some Employees:
Some employees who are not promoted get disappointed when they find that their colleagues with similar qualifications and experience are promoted on account of two favouritism or due to lack of systematic promotion policy.
2. Inconvenience to the Extent of Eliciting Refusal:
Although employees accept promotion yet several incidents employees are seen refusing promotions. These incidents include promotion together with transfer to an unwanted place, promotion to that level where the employee feels that he will be quite incompetent to carry out the job, delegation of unwanted responsibilities and trade union leaders feel that promotion causes damage to their position in trade union.
Interview Question 115. Explain the advantages of off-the-job training.
Ans. Following are the main advantages of Off-the-Job-Training:
1. Able to test hypothesis and ideas in low risk environment (exchange of knowledge and experience).
2. Trainees’ specific difficulties are easier to explore.
3. Easier to obtain full attention of trainees (distractions reduced to minimum).
4. More time available.
5. Improves morale and motivation for self-development.
6. Relaxed atmosphere more conducive to learning.
Interview Question 116. How can we train personnel?
Ans. Training is to educate mainly by instruction, drill and discipline with a view to increasing the knowledge of the employee, so that he can develop further the abilities and potentials that are already in him. Training, today, involves both training and development.
The need for training arises to show the new employees how to do their jobs, how to make-up their deficiencies and how to develop the potentialities in them.
To make a training programme effective, certain principles should be adhered to. Every individual differs from another in his abilities and powers of assimilation. So, specific needs of individuals should be assessed. The principles of practical training and motivation should be incorporated in the training programme.
Trainees given opportunity for implementing their theoretical training in practice become more efficient. Motivation as a principle of training is needed to make the trainees more effective in their performance. For the better learning of trainees, their correct responses should be reinforced by promotions, pay increases and formal appreciation.
Reinforcement, as a matter of principle is, therefore, accepted in training programme. It is expected that an employee should have proper mental and intellectual upliftment which is not possible without education. So, education is also combined with all other principles of training. Practical demonstration in training is generally preceded by theoretical briefing.
Interview Question 117. What do you mean by human resource information system?
Ans.It is basically an information system used by organizations to collect, process, store and retrieve data regarding human resources. Employee information such as address, contact no, medical records, attendance record, salary information, monetary benefits, performance management, job evaluation and so on are stored in a computerized form. The main purpose is to provide HRM with the most updated, accurate and timely information regarding the human resources at one place.
Interview Question 118. Why is performance appraisal needed?
Ans. It is needed because:
1. Identify employees who are eligible for salary increase.
2. Generate data to take personnel decisions such as promotion, transfer and lay-off or termination decision.
3. Determine the training and development needs of the employees.
4. Validate the selection process.
5. To measure whether standards laid down has been achieved by the employees or not.
Interview Question 119. What do you mean by ethics?
Ans. Ethics refers to the moral principles and rules that control or influence persons’ behaviour and activities. Certain definitions carrying the same connotation have also been offered, but in different words. In one definition, ethics has been considered as “the set of standards of acceptable conduct and moral judgement.”
According to another definition, ethics is “the set of moral principles or values that defines right or wrong for a person or group.” From these and other available definitions, it is clear that the term “ethics” represents a set of moral principles, norms and rules that are intended to guide the behaviour of persons, whether as individuals or in groups.
Ans. The mangers can play crucial role in developing innovation culture in the organization. They can foster the innovative approach among their subordinates with the help of following techniques –
1. Giving Sense of Freedom
2. Providing Required Resources
3. Providing Guidance
4. Allowing Learning from Failure
5. Adopting Accommodating Leadership Style
6. Acknowledging Employees’ Contribution
7. Encouraging & Respecting Subordinates’ Ideas
8. Holistic Approach
Interview Question 121. Define transfer.
Ans. A transfer refers to a movement of an employee from one job to another with no change in salary, status and responsibilities. In other words, a transfer is a change in job where the new job is substantially equal to the old in terms of pay, status and responsibilities. The main objective of transfer is to make adjustment in the work, place and the employee.
Employees seek transfers for many reasons, including personal enrichment, more interesting jobs, greater convenience, better hours, location of work and so on or to jobs offering greater advancement possibilities. On the other hand, employers may transfer a worker to vacate a position where he is no longer needed, or more generally to find a better fit for the employee within the firm.
Interview Question 122. Explain the main features of discipline.
Ans. The main features of discipline are as under:
1. Code of Conduct
2. Acts as a Driving Force
3. Right of the Management
4. Element of Control Process
5. May be both Positive or Negative in Nature
6. May be Voluntary or Imposed
Interview Question 123. Do training and education mean the same?
Ans. The management authors draw a line of distinction between training and education. Education is a broader term and training is a part of it – a constituent. Education aims at all-round development of an individual while training is for the development of a particular skill of an individual.
Education makes a man; training makes an employee. Education is formal in character; it is learnt in schools, colleges and universities. Training is usually confined to a work organisation and it is vocationally oriented. Education has no immediate purpose but training is for immediate utilitarian purpose.
In schools, programmes for vocational training are undertaken; they are practical and job-oriented and, in industry, executive development programmes are followed which cover fundamental principles and philosophy with broader scope and should be considered as education. So, the distinction between training and education is not a practical but a theoretical exercise.
Interview Question 124. Explain the importance of career development.
Ans. Importance of career development is evident from the following acts done by it:
1. Helps in developing skills and competencies of employees
2. Develops a talent management system
3. Facilitates the acquisition of requisites for organisational excellence career development
4. Develops and creates pool of talented people
5. Develops entrepreneurship spirit
6. Facilitates succession planning and development
Interview Question 125. What is promotion?
Ans. In simple words, the promotion is the movement of a person to a higher level position in the organisation. When there are vacancies on a higher level job in an organisation, they can be filled up in either way the internal employees or external candidates.
The organisation prefers to fill up the vacancies by the external candidates through the selection procedure, yet the internal candidates may also apply for the post and may be tested and selected for higher level job in the organisational hierarchy at par with external candidates. Definitions
Paul Pigors and Charles A. Myers defines as, “Promotion is advancement of an employee to a better job — better in terms of greater responsibility, more prestige or status, greater skill and especially increased rate of pay or salary.”
Arun Monappa and Mirza S. Saiyadain states, “Promotion is the upward reassignment of an individual in an organisation’s hierarchy, accompanied by increased responsibilities, enhanced status and usually with increased income though not always so.”
Yoder defines it as, “Promotion provides incentives to initiative, enterprise and ambition; minimises and unrest; attracts capable individuals; necessitates logical training for advancement and forms an effective reward for loyalty and cooperation, long service, etc.”
Interview Question 126. What are the disadvantages of time wages system?
Ans. The time wage system undergoes with following disadvantages:
1. Creates Overall Inefficiency
2. Higher Cost of Production
3. Increased Cost On Supervision
4. Creates Dissatisfaction
Ans. Depending on the level of commitment, employees could be classified into following three categories:
1. Engaged Employees
2. Not Engaged Employees
3. Actively Disengaged Employees
Interview Question 128. Write a note on management commitment and safety.
Ans. Health and safety are the most important aspects of an organisation. An employee in the organisation, faces many health related problems. It may be physical, mental and emotional. It is the duty of the management to protect employee life from such problem. It provided many safety measures to its employees. Safety of an employee is essential for the progress of an organisation.
A safe and healthy employee can work effectively in the organisation and production of an organisation will be increased. For the smooth and effective functioning of the organisation, health and safety of an employee is essential. Thus, every large organisation constitute a management committee or safety committee to protect employee from any hazardous factors.
Interview Question 129. What are joint councils?
Ans.The Joint Councils are set up for whole unit and the employees who are actually working in the unit shall be members of the council. The Chief Executive of the unit was the Chairman and the Vice-chairman is nominated by the representatives of workers. The Secretary is appointed by the joint council.
The tenure of the council is for two years and is required to meet, once in a quarter. The decisions of the council are to be taken on the basis of consensus and are to be implemented within one month.
Interview Question 130. What do you mean by lockouts?
Ans. According to the Industrial Disputes Act, “Lockout means the closing of a place of business of employment or the suspension of work, or the refusal by an employer to continue to employ any number of persons employed by him.” It is different from lay-off which means the failure or inability of an employer on account of shortage of raw materials to give employment to a workman.
Interview Question 131. Why is grievance handling machinery essential?
Ans. Handling of employees’ grievances is essential for the progress of an industry as well as for industrial peace. A grievance handling machinery prescribes the method by which a grievance is filed to a settlement or solution. Therefore, every organisation established procedure for handling grievances.
Interview Question 132. Define voluntary arbitration.
Ans. Voluntary arbitration is the process in which a third party listen the problems of the disputed parties. Here a neutral arbitrator is chosen by the parties themselves for the settlement of disputes. This process is regarded as a speedier, more informal and cheaper than conventional judicial procedure.
It also provides a forum more convenient to the parties. In case, the dispute is related with technical matter, the parties can select an arbitrator who possess such types of technical matter. An arbitrator has the power to use mediation, conciliation and other procedures during the arbitral proceeding to encourage settlement of disputes.
Interview Question 133. Define trade union.
Ans. According to Yoden, “a trade union is a continuing, long-term association of employees, formed and maintained for the specific purpose of advocating and protecting the interests of members in their working relationship”. According to Giri, “Trade Union is a voluntary organisation of workers formed to promote and protect their interest by collective action.”
Under the Trade Union Act 1926, a Trade Union is any combination of persons, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers, or between workmen and workmen, between employers and employers or for imposing restrictive conditions on the conduct of any trade or business, and includes the federation of two or more trade union.
Interview Question 134. Explain the features of WPM.
Ans. Features of WPM are given below:
i. Workers participation means mental and emotional involvement of workers rather more physical presence. It is mere than consent or approval managerial action.
ii. There are four degrees of participation, e.g. communication, consultation, co-determination, self-management
iii. There are four levels of participation e.g. shop floor, plant department and corporate levels.
iv. It is not as individuals, but collectively as a group through their representatives.
Interview Question 135. What are the main models of SHRM?
Ans. There are a number of models of SHRM.
(3) Flexibility, and
Interview Question 136. What are the contents of job description?
Ans. A job description normally contains the following information:
1. Job Identification
2. Job Summary
3. Job Duties and Responsibilities
4. Working Conditions
5. Social Environment
6. Machines, Tools and Equipment
8. Relation to other Jobs.
Interview Question 137. Point out the main steps involved in job analysis process.
Ans. The main steps involved in job analysis are as follows:
1. Organisational Analysis
2. Organizing Job Analysis Programme
3. Understand Job Design
4. Selecting Representative Jobs for Analysis
5. Collection of Data
6. Developing of Job Description
7. Preparing a Job Specification
Interview Question 138. What are the role of HR planning in economising organizational process?
Ans. In recent years, Human Resource Planning has playing a significant role in economising organisational process, which is discussed in the following activities-
1. Employment Situation
2. Technological Changes
3. Organisational Change
4. Demographic Changes
5. Shortage of Skills
6. Legislative Controls
7. Pressure Groups
8. System Concept
9. Lead Time
10. Hiring Costs
11. Increased Mobility
Interview Question 139. What do you mean by selection process?
Ans. The selection process involves judging candidates on a variety of dimensions, ranging from the concrete and measurable to the abstract and personal. To perform this, organizations depend on one or more of a number of selection devices, including application forms, reference checks, tests, physical examinations, and interviews. Any of these devices must satisfy strict requirements of relevance and legality, and their effects on the individual applicant and the organization as a whole must be considered carefully.
Interview Question 140. What are the disadvantages of departmental promotion?
Ans. Disadvantages of departmental promotion are:
1. It narrows the area of selection.
2. It undermines the principles of equality of opportunity as recruitment is confined to those who are already in service.
Interview Question 141. What does employee stock option means?
Ans. Employee Stock Options or ESOPs are plans that give employees the right to buy specific number of shares of the company at a fixed price within a certain period of time. Many companies use Employee Stock Options Plan (ESOP) to compensate, retain and attract employees. ESOPs are long-term instruments and hence the gain of such options is realized by an employee only when he/she sticks to a company for 4-5 years.
Interview Question 142. What are the new areas in which HR strategy focuses?
Ans. 1. Identifying and integrating the business opportunities.
2. Motivating the employees.
3. Developing the employee competencies.
4. Creation of coherent functional/project teams.
5. Setting the performance goals in conjunction with the project/functional head.
6. Facilitating the performance planning and achievement of employees.
Interview Question 143. Define job enlargement.
Ans. Job enlargement refers to the expansion of the number of different tasks performed by an employee in a single job. In other words it adds more and different tasks to a specialised job to provide greater variety. This process is called horizontal job loading or horizontal job enlargement. For instance the job of in auto-mechanic is enlarged when he switches from only changing oil to changing oil, grassing and changing transmission fluid.
Interview Question 144. Briefly describe the scope of whistle blowing policy?
i. Violation of law, rules, regulations, procedures.
ii. Working against a group of employees, public interest and customers
iii. Financial fraud, and corruption.
iv. Health or safety violations.
v. Environmental issues, customers’ interest.
vi. Physical and psychological harassments including sexual harassment.
vii. Criminal activity,
viii. Unethical practice and
ix. Anti-social norm/code
Interview Question 145. What are the characteristics of collective bargaining?
(i) It is a group action as opposed to individual action
(ii) It is flexible and mobile and not fixed or static
(iii) It is a bipartite process
(iv) It is a continuous process
(v) It is dynamic and not static
(vi) Power relationship
Interview Question 146. Point out the symptoms of general indiscipline.
1. Change in the normal behaviors
3. Increased grievances
4. Lack of concern for performance
5. Go slow
6. Disorderly behaviors
7. Lack of concern for job
8. Late coming etc.
Interview Question 147. What is the main objective of any trade union?
Ans. The main objective of any trade union is to protect the interest of workers / employees in the organisation. However, the workers interest / welfare is a broad term in which various subjects, wages and salaries, working conditions, working hours, transfer, promotions, recruitment and classification, training, discipline, leave and holidays, dearness allowance, bonus, incentives, quarters, sanitation, employee relations, mechanisation, facilities to unions, welfare, employee relative and the like are included.
Interview Question 148. What is overtime pay?
Ans. Overtime payment is the payment made to an employee for his works done by him beyond normal working hours. Overtime pay represents the payment of extra hours worked. A worker is paid at a higher rate for extra hours worked in comparison to normal wage.
Interview Question 149. Define group dynamics.
Ans. Group dynamics is a field of study concerned with research and analysis of the various forces in and patterns of the formation of small informal groups in organisations. It includes such aspects as composition-inter action and behaviour of informal groups. It also covers study of behaviour of work groups, in organisations.
Kurt Lewin of U.S.A. is the founder of group dynamics as an academic and research description in 1930’s. It has emerged are powerful and growing sub-discipline of social psychology since then.
Interview Question 150. What is retirement?
Ans. Retirement of an employee is an important event in his life and also has an important impact on the organization where he worked for a major portion of his life For Government employees the retirement age is 58; but in case of private organizations, employees may be given extension until they are suitable to do the work.