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I MS-21 IMANAGEMENT PROGRAMME

Term-End ExaminationDecember, 2006

MS-21 : SOCIAL PROCESSES ANDBEHAVIOURAL ISSUES

Time: 3hours Maximum Marks: 100(Weightage 70%)

Note:(i) This paper consists of two Sections A and B.(ii) Answer any three questions from Section A, eachcarrying 20 marks.(iii) Section B is compulsory and carries 40 marks.

SECTION A1. (a) Describe different components of emotional

intelligence as prescribed by Daniel Goleman, andtheir relevance.

(b) Can emotional intelligence be managed in the workcontext ? Discuss., ,

2. (a) Describe -the significance of interpersonal relations inorganisations.

(b) Discuss Johari Window and Transactional Analysismodels in-enhancing interpersonal relations.

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(b ) Barriers to communication

3. (a) Discuss and differentiate between functional anddysfunctional conflicts in organisations.

(b) Describe different conflict management styles andtheir relevance.

4. Identify different sources of power and briefly discuss thesignificance of power dynamics in organisations, with'relevant examples.

5. Write short notes on any three of the following:(a) Work ethics

(c) Knowledge management(d) Group cohesiveness(e) Models to understand human behaviour

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SECTIONB

6. Read the following case carefully and answer the questionsgiven at the end.Frank Lorenzo had a dream from the very childhood

to own an airline. He grew up in New York City in theshadow of LaGuardia Airport, became fascinated with theairline industry and vowed one day to be an owner of amajor airline.

He and a friend invested $ 25 each in 1969 to startan airline consulting firm called Jet Capital. In 1971, theytook control of a small regional airline known as TexasInternational. He was successful in running this airline andwas able to take over a major carrier, Continental Airlinesin 1981.

Being an aggressive and determined decision maker,Lorenzo decided to stream-line the operations ofContinental Airlines. He authorized a detailed andanalytical study of its cost structure and concluded thatthe overhead costs were too high and specially the labourcosts. His study indicated that the labour costs for U.S.Airlines was about 2 per cent higher than the comparablelabour costs of international carriers. He decided to takesteps to lower the labour costs.

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Lorenzo asked the labour unions to negotiate lowerwage rates in order to make Continental Airlines morecompetitive. The unions refused, Lorenzo was adamantand stuck to his position that labour costs had to bereduced and he refused to consider other options. In abold move in 1983, Lorenzo declared bankruptcy forContinental Airlines to break the existing labour contractsand employ non-union workers at a much lower cost.

Even though the labour unions became his enemies,he was able to hire new employees and with lower labourcost. Continental was able to reduce fares and increase itsmarket share rapidly.

In 1986, Lorenzo made a series of bold moves andacquired People's Express Airline, Frontier Airlines andEastern Airlines, which was one of the largest airlines inAmerica. Eastern Airlines, at this time, was having itsown trouble with its labour unions and these unions werevery strong and enjoyed tremendous power in negotiatingsettlements with the management. Lorenzo's acquisitionof Eastern Airlines made the unions even moredetermined to get what they wanted.

During negotiations, Virtually every concession herequested from labour was denied. The unions went onstrike in 1989. Lorenzo, once again, took Eastern intobankruptcy, hoping to repeat the success of the

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In a bold attempt to comeback into the airlineindustry, Frank Lorenzo applied to start another airlinenamed ATX to serve East coast points from Washingtonarea. His bid .has been opposed by the unions whoconsider him as a destroyer of airlines. His bid mayormay not be approved but he has become the mostcontroversial and perhaps most disliked person in theairline industry because of his management tactics inmanaging an airline.

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Continental experience. It did not work. The unions weretoo strong. Eventually, his control of Eastern was takenaway from him by the courts. In 1990, he alsorelinquished his Texas Air and in January 1991, EasternAirlines was shut down once and for all.

Questions:(a) Identify the salient issues of the case.(b) Discuss the personality traits of Frank Lorenzo and

establish whether he is a type A or type Bpersonality .

(c) How did the attitudes of both Lorenzo and theUnions affect the operations of Eastern Airlines ?

(d) If you were hired as a consultant and as an arbitratorto handle the dispute at Eastern Airlines, whatrecommendations would you provide to solve theproblem amicably ?

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I MS-22 IMANAGEMENT PROGRAMMETerm-EndExamination

December, 2006

MS-22 : HUMAN RESOURCEDEVELOPMENTTime: 3 hours Maximum Marks: 100

(Weightage 70%)

Note: There are three Sections A, Band C. Section A is meant for students who have

registered for MS"22 prior to January 2005, i.e.upto July 2004.

Section B is meant for students who haveregistered for MS-22 from January 2005 onwards.

Attempt any three questions from Section A or Bcontingent on the registration period. All questionscarry 20 marks each.

Section C is compulsory for all, and carries40 marks.

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3. Identify and discuss the role of HRD in service sector. Whyis HRD more important for service sector as compared toany other sector ? Explain with suitable examples.

4. Describe and distinguish between organisational climateand HRD climate. Briefly discuss various components ofHRD climate and their role in developing HRD culture inan organisation.

SECTION A(Pre-Revised)

1. "People need competencies to perform tasks. Withoutcontinuous development of competencies in people, anorganisation is not likely to achieve its goals. Competentand motivated employees are essential for organisationalsurvival, growth and excellence." Comment on thisstatement and discuss the underlying issues.

2. Why is the role of change agent crucial in HRDprocesses ? How important is the role of line. managersand top management in implementing HRD in anorganisation ? Explain with examples'.

5. Write short notes on any three of the following:(i) Counselling and mentoring{ii)Task delineation(iii) Emerging trends in HRD(iv) HRD-OD-IR linkage(v) Developmental supervision

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SECTION B

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SECTION C6. Read the following case carefully and answer the questionsgiven at the end.

Mr. P. Singh is one of the most successfulindustrialists in India. His management style and hisprofessionalism has been primarily responsible for his fastand phenomenal growth. His headquarters are in NewDelhi but his industrial plants and business houses arescattered all over India. Even though some of hissubsidiaries have gone public, most of his industries arestill under his direct control. He is the chairman of theparent company. He has established some policies andrules which all employees are expected to strictly follow.Some of his directives are :

Dress code. All male employees must come to theoffice in suits and ties. The suits should be properlypressed and must convey an impression ofprofessional aggressiveness. Females must be dressedin Saris or Salwar/kameez or other regional dresses,but the colours must be. conservative andprofessional.Professionalism in offices. Work activity must be theprimary priority of all employees. Personal phonecalls must be limited to emergencies. No visitorswithout a definite purpose be allowed on thepremises. All social interactions to be conductedduring lunch hour outside the company boundaries.

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Team spirit. No personal conflicts allowed. Allemployees must work together, help each other andstrive together to achieve the organisational goals.High salaries. All employees are paid high salaries,much above the prevailing market rate. In return, theemployees are expected to be loyal and consider thecompany as if it is their own.High expense accounts. All executives who areexpected to travel and entertain potential clients andgovernment officials are given unlimited companyexpense accounts with freedom to make decisions.Decentralization. Even though major policies andpolicy decisions are made by Mr. Singh himself,employees have the freedom to make on-the-spotdecisions when necessary.Professionalism in the offices is observed so strictly

that one day Mr. Singh noticed his own son, who wasthe general manager of one of his companies, sitting inhis office with his feet on the table. He was reprimandedfor his behaviour.

One incident specifically speaks about the culturalaspect of his organisation. Ravi Batra is supervisor of oneof his plants in Kamal, in Haryana. He is a very brightyoung man who graduated with an engineering degreefrom Punjab University. Ravi's father is a senior inspector

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with the Government of India and his job is specifically toinspect garments for export to United States. He isstationed in Delhi. He personally inspects the garments ofone company owned by Mr. Kohli, who sends all hisshipments to his brother in New York. This brother inNew York is a very close friend of Mr. Singh, theindustrialist.

The senior Batra in Delhi wants his son to betransferred from Kamal to Delhi so he could stay athome. He asks Mr. Kohli to use his brother's influenceon Mr. Singh to have his son transferred to Delhi.Mr. Singh was so requested.

Mr. Singh, on visiting his plant in Kamal, asked tosee Mr. Ravi Batra. The conversation took place asfollows:Mr. SinghMr. Batra:Mr. Singh .:

Mr. Batra:

Mr. Singh:

MS-22

So you want to be transferred to Delhi.Yes, Sir.May I know why, specially when yourservices are needed here ?I am sorry, sir, but my father wants. me tostay at home.But it is not your father who is running thiscompany. Now is my friend in New York,whowas approached by your father. Theydo not know where you are needed. I do.

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Mr. Batra:

Mr. Singh

Mr. Batra:Mr. Singh:

I am really sorry, sir, it will not happenagain.You better make sure, it does not happenagain. This time, I am willingto let it go. Butmake sure you understand that you areworking for a professional organisation. Ihave not built this company by doingfavours to friends. I have built this companyby hard work and professional behaviour. Isthat clear?Yes, sir.You may go now .

. Questions(a) Examine the kind of organisational culture that is

prevalent in this company.(b) Do you think- Ravi Batra himself asked his father to

request this transfer specially when he was aware ofthe company's professional policies?

(c) Was Mr. Singh justified in denying this transfer aswell as in showing anger that his policies were notbeing respected ? What would you do if you wereMr. Singh ? Explain your reasons.

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MS-23 HUMAN RESOURCE PLANNING

Time: 3 hours Maximum Marks: 100(Weightage 70%)

Note:

(i) There are two Sections A and B.(ii) Attempt any three questions from Section A, each

question carrying 20 marks.(iii) Section B is compulsory, and carries 40 marks.

SECTION A1. "Demand and supply scenario of the labour market

determines the management of reallocations andredundancies to a large extent."Elaborate this statement and discuss the underlyingconcepts, with example.

2. Define and discuss Job Evaluation and various methodsadopted to conduct the process. Briefly discuss the recentdevelopments in the process, with example.

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(i) Career Planning

3. What are the main features of Human ResourceInformation System (HRIS) in an organisational set-up?Discussing various usage and advantages of HRIS, brieflydescribe the organisational measures to make it morerelevant and effective.

4. Why is orientation important for an organisation andemployee both ? Discuss the essential components of anorientation programme and methods adopted for itsevaluation. Explain with suitable examples,

5. Write short notes on any three of the following:

(ii) Transformation at workplace(iii) MBO(iv) Executive Search(v) Human Resource Audit

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SECTIONB

6. Read the case given below and answer the questions givenat the end of the case.BK Steel Mill had a big mechanized mine which

supplied its iron are requirement. The mining sites andcrushing units were located at the hill top, and thebeneficiation plant was located a few kilometres away inthe valley.

The plant had a number of light and heavy vehicles.There were two garages - the one at the hill top wasmuch bigger than the other one in the valley. The garageon the hill top had two main sections, Light and HeavyVehicles Sections, and a small Autoelectric Shopaccommodated in one room attached to the LV Section.The Autoelectric Shop took care of all the electrical jobsof the garage.

A Deputy Manager was incharge of the hill topgarage. He had under him one Assistant Manager and twoChargemen, one looking after the LV Section and theother the HV Section.

Shyamal, aged 40 years, was a Helper in theAutoelectric Shop. Shyamal joined the company asKhalasi when he was studying in Class VIII 20 years ago.He was a sincere and devoted worker and soon picked upthe different kinds of jobs that were being done by theAutoelectrician and his Helper.

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Previously, Shyamal was working as a Helper to Lal,the Autoelectrician in the shop. But as Shyamal was quitecompetent in his job and Lal could not manage Shyamaleffectively, a working arrangement was evolved wherebyboth Lal and Shyamal worked independently. Twomonths ago, Lal was transferred. The Deputy Managertold Shyamal to look after all the jobs in the AutoelectricShop and gave him hope that he would be considered forpromotion.

Now Sunil, aged 32 years, who was recruited threemonths ago as Autoelectrician and posted in the valleygarage, was transferred to the Autoelectric Shop.Shyamal was extremely unhappy. Sunil was alsodissatisfied to find that Shyamal, though a Helper, earnedmuch more money than him. Moreover, Sunil hadanother cause for dissatisfaction; he appeared for a postat the N-5 scale but was given the N-4 scale only. WhenSunil came to. the hill top garage, the relations betweenSunil and Shyamal were strained initially but apparentlybecame normal over time. On one occasion, Shyamalcomplained to the Assistant Manager that Sunil wasdelaying the jobs to get more overtime. In fact, theovertime for the Autoelectric Shop was going higher.

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One day at 230 p.m. there was a hue and cry in theAutoelectric .Shop, and people found Shyamal lying on

.' the floor and crying. ShyamaI complained that Sunil hadgiven him a hard blow on the chest. Sunil explained thatwprking by the side of Shyamal, a tool slipped and hei "lost his balance, so his hand merely touched Shyamal.Questions:(a) Identify the main problem in the case.(b) Critically evaluate Shyamal's behaviour, explaining

possible causes of his dissatisfaction/frustration.(c) How do you see the relationship between Sunil and

Shyamal ? Evaluate Shyamal's grievance vis-a-vis hiscompetence and the company's promotion policy.

(d) As Deputy Manager how would you tackle theimmediate problem ? What would be yourrecommendations in the long run for checkingrecurrence of such problems ?

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MS-24 : Pre-Revised :UNION-MANAGEMENT RELATIONSRevised : EMPLOYMENT RELATIONS


r Note:(i) There are two Sections A and B.(ii) Section A has two sets : Set I is meant for the

students who have registered for this course priorto January, 2005 i.e. upto June, 2004. Set II ismeant for the students who have registered for thiscourse/rom January, 2005 and onwards.

(iii) Attempt any three questions from Section A. Allquestions carry 20 marks each.

(iv) Section B is compulsory for all and carries40 marks.

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SECTION A(Set I)

(Pre-Revised)1. Define industrial relations. Discuss different approaches

to industrial relations and list out the determinants ofunion - management relations.

2. Explain the concept of negotiation and its importance.Describe how negotiation process is carried out inorganisations.

3. Identify the factors responsible for failure of participativemanagement schemes in India. Discuss the strategies formaking participation effective.

4. Figure out the cross-cultural aspects of union ~management relations. Highlight key issues relating tounion - management relations inmultinational companies.

5. Write short notes on any three of the following:(i) Adjudication(ii) Recognition of union.(iii) Unfair labour practices(iv) Managerial Unionism(v) External leadership in trade union

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SECTION A(Set II)(Revised)

1. Discuss the concept and scope of industrial relations.Outline the current developments in the field of industrialrelations and the challenges.

2. Examine the role of leadership in unions. Outline thefactors responsible for persistence of outside leadership inthe trade unions in India.

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3. Outline the special features of collective bargaining in India.Discuss the steps that may be considered for promotingcollective bargaining in India.

4. Explain the impact of centralisation and globalisation onemployment relations, citing suitable examples.

5. Write short notes on any three of the following:(i) Registration and recognition of trade union(ii) Models in WPM(iii) Types of Unions(iv) Voluntary arbitration(v) Employers' organisation

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SECTlONB

6. Read the following case and answer the questions given atthe end.

Amit Plastics was a private limited company engagedin the manufacture of PVC Rigid pipes and fittings. Withthe boom in agricultural production in the country, thedemand for products of this company was high. Itemployed about 100 persons, primarily to look after theproduction schedule working in two shifts. The workersand the management had a cordial relationship for long,until there were problems as a result of withdrawal of afacility, known as 'salary advance'. The genesis of 'salaryadvance' was as follows: One day Mr. Jain who was the ..Chairman cum Managing Director (CMD) of the companywas going to his factory when the driver mentioned tohim about some difficulties at home and wanted monetaryadvance. Mr. Jain agreed to allow him to take his onemonth's salary as advance, and to manage his expenses.This naturally made driver Mohan happy and hementioned about the generosity of the CMD to some ofhis friends/colleagues. The advance did not carry anyinterest and was deductible in twelve instalments.

After some days a plant supervisor came to the CMDand requested that he also be sanctioned one month'ssalary as advance in view of some illness in his family.

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MS-24 5 P.T.O.

The CMD agreed in this case also and the supervisor waswell satisfied.

This news became the talk of the company andeveryone who was in need of money used this"approach" to obtain advances.

Mr. Jain being a father-figure of the company andhaving the employees' welfare at heart agreed to suchrequests periodically. The officers of the company whowere also noticing this phenomenon with interest, oneday requested the CMD, in one of the monthly meetingsto grant them also this facility. The CMD of coursementioned that this facility was only for workers andplant-level supervisors and not for officers, who werebetter placed. On persistent demand at the meeting, heagreed to go into this problem on a case to case basis.Over the 5 years period the withdrawal of salary advanceat the beginning of the year i.e. in January/Februarybecame a matter of routine for almost all the categoriesof employees. The Accounts Department of the companyused to send a statement indicating the amount requiredin January/February for meeting this facility. TheChairman was almost shocked to notice that Rs. 7 to 8lakhs was required for this purpose.

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With the increase in the prices of raw materials,asalso other competitors coming in the field, the cash-flowposition of the company was delicate and themanagement was thinking as to how to improve thefinancial position, and in particular cash-flow.

At this time the administration manager of thecompany resigned due to domestic reasons, and a newGeneral Manager (Incharge, Ac,lmn. and Finance) wasappointed.

In his .brief to Mr. Kumar, the new General Manager(Admn.), the CMD stressed the need for improving theproductivity and ..also informed about the delicate cashflow position of the company. The new General Manager(Admn.) had long meetings with his officers and thoughtof taking new initiatives.

The CMD gave all autonomy and support to. GM(Admn.) to improve the productivity and financial healthof the .company. The GM scrutinized various expenditureheads and initiated various measures to reduceexpenditures which were adversely affecting the cash-flowposition of the company. The GM issued a circularregarding withdrawal of salary advance facility. This wasresented by all concerned and a "whisper campaign"commenced against the GM (Admn.).

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MS-24 7 P.T.O.

The Union of the company called a meeting and thematter was discussed at length. It was decided that thisissue be taken up with GM (Admn.) , During the course ofthe meeting the GM expressed his helplessness, and themeeting adjourned abruptly.

The Union gave a notice to the management torestore the facility, failing which they would be takingother agitational methods.

In the meantime, the GM realising the seriousness ofthe situation asked workers to give them applications which would be examined on an individual basis. But no

,. advance was sanctioned.

The requests for withdrawal of salary advance ofsome officers and plant supervisors were summarilyrejected. Officers were told that they were senior peopleand they should understand the organisation's financialrequirements. In the meantime, the officers who werealready feeling frustrated. on account of various reasons,formed an association and raised this issue, as one oftheir demands. The Management while dealing with theOfficers' Association took a firm stand and rejected thisdemand. The Officers' Association gave a notice of a"slow-down" and the productivity of the company wasadversely affected.

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Because of lack of supervision on the part of theofficers and workers sympathising with the officers, therewas a sharp fall in the production target of the company.As a result the Workers Union and the OfficersAssociation demanded the removal of the GM (Admn.).The CMD was worried about the worsening situation ofthe company.Questions:(a) Identify the problems in this case.(b) As the CMD, how would you handle an explosive

situation of this kind ? (c) In the light of this case, do you think the CMD made .-

a mistake in giving his driver one month's advancesalary in the initial instance? Discuss.

(d) Comment on the behavioural aspects of theunionised workers and officers vis-a-vis topmanagement.

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I MS-2SIMANAGEMENT PROGRAMME

Term-End Examination't December, 2006

MS-25 : MANAGING CHANGE INORGANISATIONSTime: 3 hours Maximum Marks: 100

(Weightage 70%)

Note:(i) This paper consists of two Sections A and B.O i } Answer any three questions from Section A, each

carrying 20 marks.( i i i ) Section B is compulsory and carries 40 marks.

SECTION A1. Describe how change in organisational culture can take

place. Illustrate some of the cross-cultural experiences oforganisational change, identifying the factors contributingto change.

2. Describe some of the emerging organisational forms andstructures and their relevance.

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5. Write short notes on any three of the following :(i) Group based approaches to change(ii) Managing transition(iii) Turnaround management(iv) Action research(v) Skills for managing change

3. Identify the reasons" for resistance to change. Brieflydescribe the methods of handling resistance to change andhow they help bringing change in organisations.

4. Identify the various interventions for organisational change.Discuss any two interventions which bring about change inorganisations and describe how effective they are.

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SECTION B6. Read the following case carefully and answer the questionsgiven at the end :

Modern Industries Limited (MIL) in Bangalore is anautomobile ancillary industry. The company startedmanufacturing automotive components over two decadesago in a small way and has grown steadily over the years,employing over 4,000 persons at present with theturnover exceeding Rs. 100 crores. Its products areselling well and earning a sizeable amount of profits.

The company is controlled and managed by anindustrialist family known for their shrewdness andbusiness acumen. They are among the first generationindustrialists who started their industrial ventures in amodest way, during the early phase of industrialisation inthe country and alongwith the growth of automotiveindustry, MIL also grew up.

The present Chairman, Mr. Suresh Shah had beenwith the company right from its inception. He started hiscareer as an engineer trainee, rose to the position of theManaging Director and in 1983 became the company'sChairman. As a result, he is acquainted with every minutedetail and also with every employee who has been in the

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company for long. He.continues to keep in close touchwith them and is easily accessible to all of them,overruling hierarchy. A high premium is placed on theirloyalty and their long services are valued. The Chairmanof the company firmly believes that each one of them hascontributed significantly towards the growth of thecompany. In the light of the fact that the companymaintained a "strong utilitarian culture" all along, thecontribution of each and every employee had to besubstantial and they were rewarded accordingly. At thesame time, there were many instances, where the serviceswere terminated due to inadequate performance.

Mr. Janardhan Thakur joined MIL as a traininginstructor, over two decades ago. Prior to that, he servedas an instructor at an Industrial Training Institute. He hadhimself obtained the craft instructor's certificate from IT!.He was 35 years old and his main task was to recruityoung .persons as trainees, either under the ApprenticesAct or as company trainees and then train them ascraftsmen. Most of these trainees were absorbed to meetthe growing needs of the company, and Mr. Shah usedto personally involve himself in the process of recruitmentand training of craftsmen. Mr. Thakur was directlyreporting to Mr. Shah, despite the vast gap in the

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hierarchy. Mr. Thakur was promoted to the rank oftraining superintendent in 1980, though there was notmuch change in his job content. The growing phase ofthe company was practically over by that time, and theapprentice training became a mere statutory activity. Thecompany did not have the vacancies to absorb the trainedapprentices, and therefore, Mr. Shah's involvement inapprenticeship training also receded. The training activitybecame a subsidiary activity and was not given muchimportance.

The winds of change were blowing through MILalso. Mr. Ani! Shah, the son of the founder industrialisttook over as the Managing Director of MIL in 1983,whereas Mr. Suresh Shah continued to be the Chairmanof the company.

The young MD was full of new ideas. He wanted torevitalise the company from all aspects and diversify intohigh technology areas. He wanted to modernise thepresent plant and change the management style from thetraditional direct control approach to a systems controlledapproach. A modern computer was bought andcomputerisation was introduced.

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The company had -to face many problems whileintroducing these changes. One of the major hurdles wasthe problem of a number of senior employees, who werenot adequately qualified or developed, but had grown intosenior positions. Earlier the touchstone was .loyalty andhard work, rather than competence. In the light of thissituation, new competent professionals had to be hired tointroduce the changes.

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MIL was well-known for its aggressive personnelpolicies. Anyone who joined the company had tostruggle hard for his survival as the company was ruthlessin sacking those who were not meeting the requirements.It was particularly so in case of the new appointees,which in turn necessitated them to be ruthless in theirwork. The older. employees felt threatened and resentedthe changes and the consequent pressures. Therefore,they collectively approached the Chairman and requestedhim to intervene and safeguard their interests. TheChairman, who was not himself happy with all thechanges, issued instructions to the MD, to the effect thatno old employee be dislocated. The new MD had noother option but to comply with the order.

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The MD Was interested in trying out the HRDapproaches to train all the employees, particularlyemployees who were turning out to be dead woods. Hehired Mr. Kumar in 1984 as a Training Manager.Mr. Kumar was basically an engineer but had considerableexperience with a multinational company in the field ofHRD, particularly in Training and ManagementDevelopment. He reorganised the training set up byinducting two Assistant Managers. Mr. Thakur was nextto the Assistant Managers in the hierarchy and reportedto Mr. Kumar directly and continued to manage theaffairs r lated to apprenticeship training.

Un il Mr. Kumar came along, Mr. Thakur hadenjoyed the position of the head of the training division,though here was no other training activity apart fromapprent ceship training. He was operating independently

reporting directly to the MD. He continued to doafter the organisation had grown in proportion.

Mr. Th kur felt demoted in the new set-up. He lost hisand individuality in the organisation, and his

pride as seriously hurt. He was not prepared to acceptMr. K; mar as his boss and he started behaving in an

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irrational manner. He resented the vast gap createdbetween him and the top man in the new structure.

Mr. Kumar tolerated him with the hope that Mr.Thakur would reconcile himself to the changes, in time.Unfortunately, he continued to behave in the same wayand there was no improvement even after one year.When Mr. Kumar tried to counsel him, Mr. Thakurdemanded to be promoted to the level of AssistantManager, as he happened to be the seniormost person inthe department.

Mr. Kumar promised to look into his demand. On acareful analysis of the personal docket of Mr. Thakur andall the previous documents, he found out that Mr. Thakurwas over-promoted .and also over-paid for the job that hewas doing. Leave along being entitled for furtherpromotion, Mr. Thakur was not even fit for his presentposition.

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The company did not have a formal performanceappraisal system. Its products were selling well, theprofitability was good and accordingly all the employeeswere rewarded well. Promotions and extra incrementswere given arbitrarily based on the personal likes and

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dislikes of the top man, rather ..than on any objectiveanalysis of performance or potential of an individual. Noformal manpower planning or organisational planningexisted. No efforts were made to forecast implications ofsuch a system in future. On the whole, the company didnot have any formal projection for the future.

The company followed the practice of giving longservice certificates and awards to all those who hadcompleted 20 years of service in the company. Mr.Thakur had got his certificate only recently. There wereseveral employees belonging to Mr. Thakur's category. Allof them united and met both formally and informally todiscuss their strategies and demands. They used to put uptheir grievances to the management collectively. They hadestablished a very strong rapport with the Chairman, Mr.Shah.

Mr. Kumar presented all the facts to Mr. Thakur toconvince him that his promotion was not possible. As thelatter was not used to the kind of logic presented byMr. Kumar, he dismissed all his arguments assophisticated jargon, irrelevant to the context of hiscompany. He was particularly bitter about the fact thathis promotion was turned down whereas there were

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several' people with similar background who had got theirpromotions. Therefore, there Was further deterioration inhis behaviour. He started ignoring the directions of Mr.Kumar and worked as per his own whims and fancies,behaving arrogantly. He even went to the extent ofchallenging Mr. Kumar that he could neither promote himnor demote him in the prevailing situation. So long as hewas protected' by the Chairman of the company, therewas nothing for him to worry about and his job waspractically secure.

Mr. Kumar optimistically hoped that Mr. Thakurcould overcome his frustration and anger over a period oftime. Unfortunately, even after another six months therewas no sign of any progress. In fact, the situationdeteriorated further with Mr. Thakur becoming moreconfident in his belief .that Mr. Kumar was powerless todeal with him. He turned out to be a drag in thedepartment, purposely creating problems for Mr. Kumar.

In MIL the annual increments and general raiseswere given as a policy to every employee which is termedas the "Janata raise". Mr. Thakur was quite sure that hewould get his Janata raise and reconciled himself to that.Mr. Kumar tried to stop this raise but could not do so.

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There were several bullies belonging to Mr. Thakur'scategory in the organisation and one of the tasks of theTraining Manager was to handle such people. Though hehad organised a few training workshops in thebehavioural areas, it had not brought about the requiredattitudinal changes. Right under his nose he had a personwhose behaviour he was not able to amend. Mr. Kumarrealised that the desired changes were not possible, solong as the "flat security" was there.

Due to a change in the governmental policy, therewere several new competitors to MIL and the MD feltthere was a strong need and urgency to bring in changesin the organisation, to make it more dynamic andcompetitive. It was no longer possible to carryon theorganisational dead woods. Mr. Kumar was under greatpressure to look into all such cases in the organisation,on a priority basis. When he explained his difficulties, theMD suggested that he should approach the Chairman toapprise him of the facts.

Mr. Kumar met the Chairman and apprised him ofthe situation particularly citing the example of Mr. Thakur.The Chairman, in turn attributed the blame to Mr. Kumarhimself, questioning him as to why a faithful and normal

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employee had turned into a problematic case under Mr.Kumar within one year.

Mr. Kumar is now left with no alternative but toignore Mr. Thakur and continue in his efforts to changethe other difficult employees. However, he will not havethe moral right to intervene in such cases. Alternativelyhe could simply promote Mr. Thakur and buy peaceirrespective of whether he deserves it or not.

Questions:(a) Are the senior employees too sensitive and

over-reacting to the changes ?(b) Did the MD adequately prepare the .ground for

introducing the changes ? Was he too hasty?(c) Would it not have been wise for Mr. Kumar to

promote Mr. Thakur without bothering about thelogic which is not applicable in MIL ?

(d) Is the assumption of the Training Manager that 'Overprotection is the root cause of trouble' right?

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MS-26: ORGANISATIONAL DYNAMICSTime: 3 hours Maximum Marks: 100

(Weightage 70%)

Note:( i) There are two Sections A and B.(ii) Attempt any three questions from Section A. Each

question carries 20 marks.(iii) Section B is compulsory and carries 40 marks.

SECTION A

1. Discuss the important factors which necessitate thedevelopment of a group. Also describe the factors whichhinder the process and make it ineffective. Explain withsuitable examples.

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2. Define and describe organisational culture. Discuss certaincultural features of Indian organisations and discussimportant issues emerging out of it. Explain with suitableexamples.

3. Identify and discuss the factors involved in Role Analysistechniques and highlight its significance for organisationalfunctioning.

4. Discuss nature and forms of strategic alliances. Brieflydescribe the tenets of strategic alliances, with suitableexamples.

5. Write short notes on any three of the following :(i) Compliance(ii) Decentralisation(iii) BOSS(iv) Dimensions of Diversity(v) OD Interventions

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SECTION B6. Please read the case given below and answer the questions

given at the end.

IlOn 15 March' 1949, Merry Joseph came in to see

Mr. John, the plant personnel director, to talk over aproblem that was troubling her. Merry was a handassembly production worker in a modern 600-employeebranch plant located in a large eastern city. After Merry .told Mr. John her story, he asked her to write out adescription of the situation. Her statement is reproducedhere.

Reconsider this case not unusual nor typical, but ashaving happened to me and to a few others. As I am notequipped to do the work, it offers little or no solution tothe problem at hand. I would not be writing this report ifI had not remembered the advice given by Mr. John ofPersonnel. He told a group that should we have aproblem, to please consult him before walking out.However, I will mention here that I have seen a few veryconscientious workers walk out without "fighting thecase".

When I was first hired, Mr. Nair, the foreman,introduced me to the young lady who taught me theprocess of soldering lead wires. I asked her how muchproduction I would be expected to turn in daily, and she

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secured this information for me from the other girls. Thisseemed at the moment like a fantastic sum, but sheassured me that after a few days I would. become quiteefficient, which Isoon did. Iam not one to "bite thehand that feeds me", so Ibegan working and finallydeveloped the. system into a sort of a game.

A few weeks later, one of the girls asked me how Iwas doing, and Itold her that Iwas doing fine. Shelooked at my production sheet and swore. She wasastonished to see how much Iwas producing each hour.She bitterly reminded me that girls that had been here forseveral months or even years were not producing what Ihad accomplished in a few weeks ! Iaughed that off assomewhat of a compliment. That was my big mistake asfar as co-operating with the company or satisfying mygregarious tendencies was concerned. Iwas immediatelyand severely ostracized.

During the weeks that ensued, Inoticed Iwas notcompletely alone; there were a few others who were also"friendless". However, it was soon apparent thatostracism was not satisfying the desires of their fiendishlittle plan. Threats were to follow and they did follow.

Having worked in the "violent ward" of apsychopathic hospital, Iwas not the least bit nervousbecause of these threats but others were. Inoticed a few

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things about the character, temperament and education ofthose who were apparently "bossing". They were usuallythe old-timers and loafers - girls with great deal ofconfidence and little reason for it. Sometimes, theirreasons for fighting the enormous business organisationwhich represents their security, were quite convincing :"Your work is never appreciated," "They'll always wantmore and more", "You haven't got a chance to get amerit wage increase unless you go out with the boss ... "After this general talking to, the poor girls began towonder; some of them stayed a few days and then didn'tturn up for work. The clique had scored again.

I sat and wondered as I worked. What to do 7 I wasassured I had the bosses on my side, but the .... The longdead silence and the vulgar, stupid remarks of the othergirls soon began to get under my skin. I worked quite awhile at the psychopathic hospital, and "they" neverbothered me, but these stupid little people and theirmoronic remarks soon began to annoy me terribly.Because my production was high, I was asked to workSaturdays. This brought a violent counter thrust from therebels.

Soon their campaign began to affect me exactly asthey had planned (Or am I giving them too muchcredit 7) My production was dropping. The assistantforeman, Bert, asked me if I was ill. When I told him my

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troubles; he advised me to see Mr. Nair, which I did .Mr.Nair listened attentively and asked the names of therebels, which I readily gave, not feeling at aU like aninformer. He then assured me, though stammering, thatjustice would prevail. I noticed little change.

The little minds had other desires than to keep theirjobs secure; they wanted to jeopardize the position oftheir immediate superiors. Philip, who had advised me totalk to Mr. Nair, commonly held the reputation of beinga communist, nailed on him by "my rebels". I havealways maintained in my philosophy that if one cannotbecome great by one's own methods of accomplishment,then one will probably pull everyone else down belowhim, until by comparison he is above the mob, hencegreat. This is commonly known as "scapegoatism".These girls carried this farther than I ever dreamed wouldbe done. Scapegoating is a common activity of theuneducated. Education of the population, while not thesolution, will greatly aid in the eventual solution of thisproblem.

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However, back to the practical aspects of theproblem at hand. I had convinced myself that most of thegirls were not the kind I would care to associate with,anyway, so my scope of activity was not ruptured tooseverely, As they ignored me, I ignored them. However,something happened that I had not counted on. I became

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physically ill from the entire situation. Having had a fewlectures on psychosomatic diseases, I knew I had notincorrectly diagnosed the case.

My relief came in the form of a temporary transferto another department. I know it would take some timebefore the girls would become acquainted with my case,and the rest was welcome. I was shocked to find that noone was interested in my "reputation". I was furthershocked when I began to notice that harmony, tranquility,and cooperation prevailed in this department. It is myopinion that part of the cause for such cooperation in thisdepartment may be attributed to the fact of one boss -and a capable, understanding man, at that.

Then, I was told to return to my former department,where I was greeted by my boss with : "Enjoy yourvacation". This does not strike me as being verycomplimentary to one who has been conscientious fromthe beginning.

I had been taught to report all inferior-gradematerials, and this particular morning I found the wiredefective. After reeling yards of red tape from a few ofmy bosses, I finally was sent to Mr. Nair. Again, Mr. Nairwas glad to see me, "I want you to get back to yourmachine, sit down, and mind your own business. Yourproduction is falling. Why?" This I was told before I had

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a chance to speak. Here, I explained about the strain Iwas under and about the inferior materials. He then toldme to work as best I could with the inferior materials, ashe didn't want to send any of the girls home. I then toldhim I had thought of leaving. He sarcastically mentionedthat perhaps it was for the best. This shock drove me toMr. John of Personnel, and to standing here in my livingroom dictating this to my husband, the typist of thefamily. JQuestions:(a) What is the problem in the case ? Explain.(b) How do you see the work culture/climate in the

organisation ? Critically evaluate.(c) How do you see the act and record of Merry vis-a-vis

her colleagues in this case ?(d) What would be your recommendations to the

management ?

" .

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MS"27 : WAGE AND SALARYADMINISTRATION


Note:(i) There are two Sections A and B.(ii) Attempt any three questions from Section A, each

carrying 20 marks.(iii) Section B is compulsory, and carries 40 marks.

SECTION A1. What are the considerations for compensation policy at

macro and micro level ? Explain the practical difficulties intranslating these policies into action.

2. Give an account of various individual and group rewardsystems in an organisation. Critically examine the emergingtrend in reward system.

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3. Explain the institutional mechanism of wage and salaryfixation in industrial sector in India. Any system of wagefixation must be judged by how it works in practice.Discuss.

4. Attempt any two of the following :(a) Job evaluation system(b) Profit sharing and stock options(c) Corporate compensation policy

5. Write briefly on any two of the following :(a) Salient features of the Payment of Wages Act, 1936.(b) Salient features of the Payment of Bonus Act, 1965.(c) Salient features of the Provident Fund Scheme,

1952.6. Write short notes on any three of the following :

(a) Principles of wage and salary administration(b) Competency based compensation(c) Classification of incentives(d) Compensation issues(e) Downsizing and VRS

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, .SECTION B

7. Read the case given below and answer the questions givenat the end.

CASE,A financial institution has just decided to open a

branch at Bhimunipatnam, an exclusive resort locatedabout 20 miles from Visakhapatnam, a large city. Thereis no bank at present in Bhimunipatnam.

The financial institution is anxious to determine theappropriate salary for the clerical staff it expects to hire.Clerks in the city office at Visakhapatnam receive astarting salary of Rs. 3,000 per month. As a matter ofcompany policy these salary rates have been set atmid-point of the range for financial institutions inVisakhapatnam.

A survey of local establishments at Bhimunipatnamindicates that the 'going rate' for qualified clericalpersonnel varies between Rs. 3,500 to Rs. 3,800 amonth. This higher rate in Bhimunipatnam may beattributed, in part, to the substantially higher cost of livingin this resort town, the limited number of young peopleseeking employment, and the fact that there are no otherfinancial institutions in Bhimunipatnam. Banks in

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;Visakhapatnam. have traditionally paid lower salaries thanother establishments, on the ground that banks offerbetter working conditions and higher prestige.Questions:(a) Identify the main features of the. case in general.(b) .What amount should the financial institution fix as its

hiring rate for clerical personnel ?(c) What factors should be considered in making the

decision?

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MS-28: LABOUR LAWSTime: 3 hours Maximum Marks: 100

(Weightage 70%)

Note:

(i) There are two Sections A and B.(ii) Attempt any three questions from Section A, each

carrying 20 marks.(iii) Section B is compulsory, and carries 40 marks.

SECTION A

1. What are the Constitutional directives in the field of labourlegislation in India ? The labour laws have reached newdimensions with the advent of the philosophy of labourwelfare and social justice. Discuss.

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2. Attempt any two of the following:(a) Safety measures under the Factories Act, 1948.(b) Salient features of Shops and Establishments Law.(c) Salient features of the Child Labour (Prohibition and

Regulation) Ad, 1986.3. What is a "trade union" under the Trade Unions Act,

1926 ? Explain the procedure for registration andcancellation of registration of a trade union.

4. (a) What are the provisions regarding "retrenchment"under the Industrial Disputes Act, 1947 ?

(b) What is meant by "conciliation" and "adjudication"under the I.D. Act ?

5. Discuss the various benefits payable under the Workmen'sCompensation Act, 1923. What are the circumstancesunder which the employer will not be liable to paycompensation for injury to a workman ?

6. Write short notes on any three of the following: .(a) Origin of labour legislation in India(b ) Deductions under the Payment of Wages Act, 1936

. (c) Voluntary reference of disputes to arbitration(Section.Hl-A)

(d) International labour standards(e) Enforcement of the Mines Act, 1952

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SECTIONB7. Read the case below and answer the questions given at the

end of the case.On April 28, 1998 at about 6-45 p.m., the Duty

Officer (Security) M. Kumar at the Works gate informedS. Rathod, Electrical Engineer, on telephone, that oneNarayan, Foreman of his department has been caughtred-handed at the Works gate while attempting to stealone small electric motor and certain other spare partsused in the Electrical Department. Rathod was requestedto come to the Security Control Room, where apreliminary enquiry was to be held.

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During the preliminary enquiry, it came to light thatNarayan, Personal No. 5824, Foreman, came to theWorks gate at 615 p.m. on his Suvega auto cycle bearingRegistration No. BRX 1421 (the number was not clearlyvisible). The Works guard on duty Krishna Bahadur askedNarayan to stop and open the tool-box that was hangingon the right side of rear wheel. When it was opened, onlyone empty tiffin-box was found. Since the driver's seatappeared to be thicker and of unusual size, the Worksguard enquired about the same from Narayan, and notbeing satisfied with the reply, gave it a jerk. It was foundthat Narayan had constructed one box under the seatwhere a 050 HP motor and eight 5 amps switchesbelonging to the company were concealed.

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On being asked, Narayan replied that he hadattended a break-down after 5 p.m., in the Works andreplaced one 050 HP motor. The motor that wasrecovered was the defective one, but he could. not returnit as the Store-Issuer had already left for horne after hisduty which ended at 5 PM. He thought he would returnthe motor the next day, as he had done many times inthe past. He, however, could not explain why he wascarrying the 5 amps switches. Nor did he give anysatisfactory reason for not keeping the materials in thetool-box that was visible from outside, rather than wherethese were kept. On checking up at the Security ControlRoom, it was found in the presence of Narayan, that theelectric motor recovered was in working condition.

As per the Company's certified Standing OrderNo. 23 ( i i i ) , "Theft, fraud, or dishonesty in connectionwith company's business or property" is a misconduct.Questions:(a) What is the problem in the case ? Analyse,(b) Advise the Works Manager as to the legal

implications of (a) suspension, and (b) suspensionpending enquiry.

(c) Advise the various steps to be followed in adisciplinary proceeding.

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