ICSI Question papers Human Resources Management and Industrial Relations

ICSI Question papers

Final Group 3

Human Resources Management and Industrial Relations

June 2006

Time allowed : 3 hours

Maximum marks : 100
Total number of questions : 8
P A R T — A
(Answer Question No.1 which is compulsory and any two of the rest from this part.)
1. (a) In September, 2006, Rajasthan Computers Ltd. advertised for the position of Assistant Manager (Personnel) in the scale of Rs.12,000 – Rs.18,000 plus perks. The applicants were required to be graduates with three years experience in a similar capacity. Nine candidates applied. Ms. Sneha, an MBA (Marketing), having six years experience as Assistant
Personnel Officer in a well-known electronics company, impressed the interview board as a self-motivated and hardworking person and was appointed in the company. During the interview, the Vice-President (Personnel), however, highlighted tough competition and general lack of work-culture amongst the workers. The Assistant Manager (Personnel) was, thus, required
to straighten up matters without creating problems. She, however, nurtured ambition of riding-up the ladder as Vice-President (Personnel). On joining, Ms. Sneha with her soft-spoken but
disciplining approach, called a Works Committee meeting and stressed that the management wants only results, not excuses. This surprised all. Whispered the Deputy Supervisor to his boss: “Brother, are we going to land in jail now ?” Supervisor too hush-hushed : “Appears so – bad luck.” The Deputy Supervisor lamented : “See Videocon or Keltron or Wipro – how well they treat their employees !” Another
Supervisor, Chandan suggested : “But, yaar, shouldn’t we teach the new ‘moollah’ some lessons in man-management ?” The Chief Supervisor dissented : “No, no; wait and watch. After all, the company cannot run without us.” The meeting ended with a clarion call from the Assistant Manager (Personnel) : “From now on, work hardest day and night to earn pay or you are on way
out.” Upon these facts, answer the following questions :
(i) Which factors should have been considered for selecting a suitable candidate as the future
HR manager ?
(ii) Was the interview technically sound ? Suggest improvements therein, if any.
(iii) Does Ms. Sneha’s career goals serve the company’s interests ? Can any other goal(s) be better ?
(iv) In the Works Committee meeting, was the Assistant Manager (Personnel) reflecting the
proper perspective of HRM functions ?       (4 marks each)
(b) Mention the steps involved in ‘job analysis’.        (4 marks)

2. (a) State the important principles governing the administration of ‘fringe benefits’.   (4 marks)
(b) Distinguish between ‘training’ and ‘development’.         (4 marks)
(c) What do you understand by wage and salary administration ? Discuss the principles involved in wage administration.        (7 marks)

3. Write notes on any three of the following :
(i) Human resources accounting
(ii) Performance appraisal
(iii) Employment tests
(iv) Determinants of morale.             (5 marks each)

4. Golden Chemical Manufactures (GCM), Sagar (Madhya
Pradesh) is an old proprietorship firm manufacturing
domestic cleaning liquid for sale in the city and cantonment
areas –– Damoh, Bina and Katni (Madhya Pradesh). You
are its Personnel Manager. It employs 31 workers with one supervisor, Manav.
Now, GCM plans to convert itself into a private limited
company, modernise its processes and plants, recruit 150
more employees, and market its product under the brand
name ‘Spick and Span’ all over Madhya Pradesh in the
face of three well established, but localised, competitors.
Its sales force will have to be aggressive. Highlight the likely areas of HR problems which the
company may face due to its expansion plans.           (15 marks)


P A R T — B
(Answer Question No.5 which is compulsory and any two of the rest from this part.)

5. On a reference from the Chief Engineer of State Electricity
Board, a development authority (a statutory body) directly
appointed 23 Engineers on ad hoc basis who continued
to work for a period of 10 years for an overseas project.
The Engineers performed excellently. Hence, monthly
salaries with leave, LTC, provident fund, etc., were given to them.
All went well. But as the project approached completion,
the authority (employer) served them termination notices.
The recognised and registered trade union named
Engineers’ Welfare Union (EWU) raised an industrial
dispute on this. It was agitated that for a long time the
Engineers had been treated at par with permanent staff
in all respects and, therefore, they should be absorbed or
appointed on regular basis in some other project. Besides,
being over-age, they cannot get employment elsewhere
even. And all this is a matter of life and death for 23 families.
The authority has lucid personnel rules. But, these rules
do not contain any provisions for such an employment.
The dispute was referred to the Labour Court which allowed
the plea of Engineers and directed the authority to continue
giving them salaries. As for work, it was for the authority
to seek or work out necessary arrangements. Dissatisfied
on this, the authority filed a writ petition under Article
226 of the Constitution of India against the EWU. The
High Court, taking a strictly legal view, allowed the writ
petition and quashed Labour Court’s award. It held that
the authority is the “State” bound by law under Articles
14,16 and 19 of the Constitution of India. Aggrieved, the EWU files a civil appeal in the Supreme
Court of India. Advise on the following :
(i) The principles involved in the regularisation of services of employees.
(ii) The statutory position, viz., standing orders or rules for such a contingency.
(iii) Relief which can and ought to be given to the Engineers, if any.
(iv) What would you do to remedy the industrial dispute, if you were the Vice-President (In-charge of Personnel Division) of the authority ?            (5 marks each)

6. (a) “A funded voluntary retirement scheme is an invitation to an offer and not an offer. The applicant is precluded from withdrawing therefrom after the closure of the scheme on the pre-notified date.” Comment with reference to State Bank of Patiala vs. Romesh Chander
Kanoji.          (8 marks)
(b) The employer of an oil mill was paying wages to his employees at a rate less than the minimum wages fixed by the Government. The employees instituted a suit in the court against the employer. The employer pleaded that his business was running into losses
and that he may be forced to close his business if the employees’ demand is to be met. Is the plea of the employer sustainable ? Discuss with reference to case law.           (7 marks)

7. (a) “Strikes do not indicate severed industrial relations; far from that they cause simmering strained relations. Hence they should be justified, if at all necessary.” How would you decide the justifiability of strikes ? What is the view taken by the courts in this regard ?      (8 marks)
(b) Balaji Garages, a small private automobile company, employs 100 workers. Uniforms are given to workers and washing allowance is paid @ Rs.25 per week, so that all workers on duty put on neat uniforms. Recently, Balaji Garages was acquired by Prima Autos Ltd. (PAL) who have a strength of 2,500 employees. No washing allowance is given to these employees.
After the takeover, employees of Balaji Garages claimed washing allowance at the old rates. As the HR Manager of PAL, decide with reference to relevant legal provisions.          (7 marks)
8. (a) Waste papers were stored in the rest room without the knowledge or orders of Jolly, the ‘occupier’ of the factory. These waste papers caught fire and a worker who was sleeping there died. State with reasons whether the occupier is liable.
(b) Explain the scope of application of model standing orders in ABC Ltd.
(c) In what ways is the judgment in Air India Statutory Corporation vs. United Labour Union, 1997 a landmark ?
(d) Bright Plastic Industries gave ex gratia bonus @ 5% per annum to its workers. It was treated as statutory bonus. The unregistered but recognised workers union is agitating to demand 8.33% per annum extra statutory bonus in addition to the ex gratia bonus. Decide the dispute citing relevant case law.
(e) What should be the proper procedure for effective collective bargaining on bonus issue ?
(3 marks each)

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