ICSI Exam papers Human Resources Management and Industrial Relations

ICSI Exam papers

Final Group 3

Human Resources Management and Industrial Relations

June 2007

Time allowed : 3 hours

Maximum marks : 100
Total number of questions : 8 
(Answer Question No.1 which is compulsory and any two of the rest from this part.)
1. (a) As a part of its golden jubilee celebrations, the Institute of Company Secretaries
of India has organised a symposium on ‘Personnel Management and Role of Company
Secretary’. You have been invited to present a paper on this occasion. Draft a
synopsis of your paper in about 250 words. (10 marks)
(b) Briefly mention the types of analysis used for the identification of training needs. (5 marks)
(c) “The supervisor often finds himself caught between the devil and the deep sea.” Comment. (5 marks)

2. (a) Infotech Ltd. is a distributor of Microsoft software alongwith hardware like Jet-Flash
pen drives. It employs 11 officers and 150 sales executives, service technicians
and some staff. For promotion purposes, it follows the system given below :
– In January, functions and objectives are mutually agreed upon by the employer
and employees. Sales targets are fixed.
– In November, the employees are asked to self-appraise their achievements.
– By December, the Vice-President (Personnel) finalises the rating of each employee
on the basis of sales performance. New targets are also fixed.
While the management is satisfied with this simple arrangement, the employees’
association has reservations over its efficacy.
Now answer the following —
(i) Who is right and who is wrong ? Why ? (5 marks)
(ii) Suggest some worthwhile changes in the system. (5 marks)
(b) Briefly mention the steps that may be followed to design employment tests for an
enterprise. (5 marks)
3. Write notes on any three of the following :
(i) Scope of positive and negative disciplines in HRM
(ii) Problems of employees who refuse promotions
(iii) Designing the performance appraisal programme
(iv) Principles of learning in training and development programmes. (5 marks each)
4. (a) In a company meeting of Logistics India (P) Ltd. at Mumbai, the Company Secretary
viewed that ‘the right-angle method’ is the best for HR planning for the year
2008-09. Do you agree ? Critically evaluate the method. (6 marks)
(b) Explain any two of the following :
(i) Steps in job analysis.
(ii) HRM as a profession.
(iii) Linking pin role of an HR Manager.
(3 marks each)
(c) State, with reasons in brief, whether the following statements are correct or
incorrect :
(i) The two terms – ‘personnel management’ and ‘human resource management’
– are synonymous.
(ii) Herzberg strongly emphasised on the halo-effect as the prime motivator for
(iii) If employees are properly selected, there is no need for orientation programme. (1 mark each)

(Answer Question No.5 which is compulsory and any two of the rest from this part.)
5. On 30th November, 2007 (Friday), Brilliant Lights Electric (P) Ltd., Bangalore was to
celebrate company’s foundation day and Kannada Rajyotsava. But a fatal accident in
its machine shop spoiled the festivities. Murthy, a contract labour of six years standing,
fell into the vertical turret lathe after slipping from upper plain platform. Aghast, two
fellow workers including Bhaskar Rao, President of workers’ union shouted and fainted.
The lathe was stopped. But churned to pieces, Murthy died in ambulance on way to
hospital. Grief stricken management officials and workers cremated him the next day.
The work was resumed on Monday morning with the help of the union. But on
Tuesday noon, all the 25 workers of the machine shop ran out in panic gasping that
they had seen Murthy turning in the lathe with blood oozing out of his mouth. The
Factory Manager, Personnel Officer and General Manager tried to pacify horror stricken
workers, but in vain. Actually, they themselves dared not to enter the machine shop.
On union’s advice, the Factory Manager arranged a turret-purification pooja next day.
This helped a little, many workers reported seeing Murthy’s ghost roaming here and
Thereupon, the union and management engaged an industrial psychiatrist. He gave
psycho-medical treatment to affected workers for four days. Besides, after mutual
discussions with the union and factory inspector, the management forthwith :
– Paid Rs.2 lakh compensation to the widow of Murthy, on the basis of Murthy’s
wages @ Rs. 6,000 per month;
– The union/staff added Rs.2 lakh to it;
– Monthly pension @ Rs.4,000 was given to the widow of Murthy;
– There was no wage cut for anyone; and
– A memorial-statue of Murthy was installed in the factory compound.
Surprisingly, everything turned normal thereafter. Yet everyone recalls it with chill
down the spine.
Analyse the above situation and answer the following :
(i) For an Industrial Relation (IR) Practioner, what are the lessons from this incident ?
(ii) Did the company practise collective bargaining on compensation ?
(iii) Was there a breach of any provision of the Factories Act, 1948 in this case ?
(iv) Who should have paid the compensation – the Company, or the Union or the
Contractor ?  (5 marks each)
6. (a) State, with reasons in brief, wherever required, whether the following statements
are true or false :
(i) Indiscipline is the workers’ problem with the management and grievances are
the management’s problem with the workers.
(ii) Making workers feel responsible and worthy, contributes to making work a
pleasant pass time.
(iii) Wealth and status of an employee determines his wages as per the Payment
of Wages Act, 1936.
(iv) Marxist and social relations approaches form the basis of industrial relation
systems of the voluntary retirement schemes in India.
(v) Inadequacies of legal machinery together with patronage of political parties
are the prime causes of industrial conflicts and strikes in India.
(vi) The Industrial Employment (Standing Orders) Act was passed in 1945.
(vii) Hicks model of collective bargaining focuses on the length and costs of work
(viii) Adjudication machinery for industrial disputes resolution means that all disputes
are finally adjudged by conciliation and mediations as per the Industrial
Disputes Act, 1947.
(ix) As per the Payment of Bonus Act, 1965, bonus cannot be forfeited.
(x) The Contract Labour (Regulation and Abolition) Act, 1970 applies to all
establishments where work is of casual or intermittent nature.  (1 mark each)
(b) “Industrial relations in India are largely regulated, shaped and structured by the
State.” Comment.  (5 marks)
7. (a) “Arbitration as an alternate dispute resolution mechanism has not been very
successful in India.” Comment.  (5 marks)
(b) The standing orders of Dynamic Ltd. provide for deemed resignation of an employee
if he remains absent from duty for 15 continuous days and does not resume work
despite service of notice on him or applies for leave of absence. Is this provision
legal ? Discuss with the help of decided case law.  (5 marks)
(c) What are the rights of workers under the Minimum Wages Act, 1948 ?  (5 marks)
8. (a) “The Japanese Model of Workers’ Participation in Management (WPM) still remains
a guide for WPM in India.” Discuss.  (8 marks)
(b) Hereunder is a list of events in a voluntary retirement case :
(i) 10th January, 2008 : Pramod, Cashier, Bharat Bank, New Delhi applies
for voluntary retirement under the Bank’s Golden Handshake Scheme.
(ii) 8th February, 2008 : Letter conveying Bank’s acceptance of voluntary retirement delivered to Pramod.
(iii) 9th February, 2008 : Staff gives farewell party. After taking dues, except cash security of Rs.50,000, Pramod leaves bank for good.
(iv) 15th February, 2008 : Bank refuses to pay Pramod his security deposit and
orders him to assist the Manager in cash handling work increased due to issue of recent IPO share offers.
(v) 17th February, 2008 : Pramod refuses insisting that he has retired and is not bound by Bank’s orders.
(vi) 18th February, 2008 : Bank chargesheets Pramod for disobedience of orders.
(vii) 28th February, 2008 : Pramod dismissed from Bank’s service; cash security forfeited.
(viii) 25th March, 2008 : Pramod challenges dismissal and forfeiture. Who is legally right ? Why ? (7 marks)

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