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Published on December 13, 2016

Author: anujbhatia09


1. HUMAN RESOURCE MANAGEMENT A QUICK REVISION FOR NET/GSET EXAMINATIONS Anuj Bhatia [BBA, M.Com, Ph.d (pur), UGC NET, GSET] Shah Tuition Classes Contact:, 9898251471

2. CONCEPT OF HRM • Human Resource- “the total knowledge, skills, creative abilities, talents and aptitudes of an organization's workforce, as well as the value, attitude and beliefs of the individual involved” • Human Resource Management- “ HRM means employing people, developing their resources, utilizing, maintaining and compensating their services in tune with the job and organizational requirements with a view to contribute to the goals of the organisation, individual and society.” 2

3. FUNCTIONS OF HRM 1. Managerial Functions i. Planning ii. Organizing iii. Directing iv. Controlling 3

4. 2. Operative Functions 1. Employment 1. Job Analysis 2. Human Resource Planning 3. Recruitment 4. Selection 5. Placement 6. Induction and Orientation 2. Human Resource Development 1. Performance Appraisal 2. Training 3. Management Development 4. Career Planning and Development 5. Internal Mobility 6. Transfer 7. Promotion 8. Demotion 9. Retention and Retrenchment 10. Change and Organisational Development 4

5. 3. Compensation 1. Job Evaluation 2. Wage and salary administration 3. Incentives 4. Bonus 5. Fringe benefits 6. Social security Measures 4. Human Relations 5. Industrial Relations 5

6. ROLE OF HRM  HR in the nations well-being  Man vis-à-vis Machine  HRM and General Management  HR system is a central Sub-system  Social Significance  Professional Significance  Significance for Individual enterprise 6

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9. ANSWER:  (D) All Employees 9

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11. ANS:  (A) Development Function 11

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13. ANS:  (C) Procurement 13

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15. ANSWER:  (A) Development 15

16. HUMAN RESOURCE PLANNING • HRP means deciding the number and types of HR required for each job, unit and the total company for a particular future date in order to carry out organizational activities. • Coleman defines HRP as “ the process of determining manpower requirements and the means for meeting those requirements in order to carry out the integrated plan of the organisation.” 16

17. BENEFITS OF HRP • Checks the corporate plan of the organization • Offsets uncertainty and change • Provides scope for advancement through training and development • Anticipate the cost of HR and formulation of Budgets • To plan for physical facilities, working conditions etc • Development of HR to meet organizational needs • To meet the HR requirements in case of high turnover • Needed to identify the areas of surplus personnel 17

18. FACTORS AFFECTING HRP  Government policies  Economic development and supply of HRs  Business Environment  Information Technology  Levels of Technology  Natural Factors  International Factors  Company’s strategies  HR policy of the company  Formal and Informal Groups  Job Analysis  Time Horizons  Type and Quality of Information  Companies production and operation policy  Trade Unions External Factors Internal Factors 18

19. PROCESS OF HRP 1. Deciding the objectives 2. Estimating future organizational structure and manpower requirements 3. Auditing HR 4. Planning job requirements and job descriptions 5. Developing a HRP 19

20. JOB ANALYSIS • JA is a procedure by which pertinent information is obtained about a job, i.e., it is a detailed and systematic study of information relating to the operations and responsibilities of a specific job. • Contents of JA: • Job identification • Significant characteristics of a job • What the typical worker does • Which equipment and materials a worker uses • How a job is performed • Required personnel attributes 20

21. JOB DESCRIPTION • JD describes ‘jobs’ and not ‘job holders.’ • JD is a descriptive document • It contains statement of JA • Provides organizational and functional information. • It defines the scope of job activities, major responsibilities, and positioning of the job in the organisation. • It must provide worker and supervisor with a clear idea of what the work must do to meet the demands of the job. 21

22.  Contents of a JD: 1. Job identification or organizational position 2. Job summary 3. Job duties and responsibilities 4. Relation to other 5. Supervision 6. Machine, tools and equipment 7. Working conditions 8. Hazards 22

23. JOB SPECIFICATION • “what traits and experiences are required to the job well?” • JS tells what kind of person to recruit and for what qualities that person should be tested. • JS translates the JD in terms of the human qualifications which are required for a successful performance of a job. • These Specifications are related to: – Physical characteristics – Psychological characteristics – Personal characterizes or traits – Responsibilities – Other features of Demographic nature 23

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27. RECRUITMENT • Flippo – “ Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organisation.” • Objectives: – To attract people with multidimensional skills and experiences – To infuse fresh blood in the organisation – To attract competent people – To search for talent globally – To anticipate and find people for positions that do not exists 27

28. SOURCES OF RECRUITMENT TRADITIONAL SOURCES  Present employees  Retrenched or Retired employees  Dependents of Deceased, Disabled, Retired and present employees • Campus recruitment • Private Employment Agencies/ Consultants • Public employment exchange • Professional associations • Data Banks • Casual Applicants • Similar Org./Competitors • Trade Unions Internal External 28

29. MODERN SOURCES  Employee Referrals  Walk-in  Consult in  Head Hunting  Body Shopping  M & A  Tele- Recruitment  Outsourcing Internal External 29

30. FACTORS AFFECTING RECRUITMENT • Companies pay packages • Quality of work life • Organization culture • Career planning and Growth • Company’s size • Companies Products/ Services • Location • Companies Growth Rate • Role of Trade Union • Cost of Recruitment • Companies name and fame • Socio-economic Factors • Supply and Demand Factors • Employment rate • Labour Market Conditions • Political, Legal and Govt. Factors • Information System like Employment Exchanges/ Tele-Recruitment like internet Internal Factors External Factors 30

31. SELECTION  The function of selecting the right employees at right time  To choose the individual who can most successfully perform the job from the pool of qualified candidates.  JA, HRP and Recruitment are necessary prerequisites of selection. 31

32. PROCESS OF SELECTION 1. Job Analysis 2. Recruitment 3. Application Blank 4. Written Examination 5. Preliminary Interview 6. Business Games 7. Tests 8. Final Interview 9. Medical Examination 10. Reference Checks 11. Line Managers Decisions 12. Job offer 13. Employment 32

33. TYPES OF TESTS • Aptitude Test – Intelligence test – Emotional Quotient – Skill Tests – Mechanical aptitude – Psychomotor test – Clerical Aptitude Test • Achievement Test – Job Knowledge Test – Work Sample Test 33

34. • Situational Tests – Group Discussion – In Basket • Interest Test • Personality Test – Objective test – Projective test • Other Tests – Cognitive Ability Test – Wechsler Adult Intelligence Scale – Wonderlic Personal Tests – Polygraph Tests – Honesty Tests 34

35. INDUCTION • Induction is the process of receiving and welcoming the employee when he firsts joins the company and giving him basic information he needs to settle down quickly and happily and start work. • Lecture, Handbook, film , group seminar, are used to impart information to the new employees about the environment of the job and the organisation in order to make the new employee acquaint himself with the following heads: – About the Company – About the Department – About the superiors and subordinates 35

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38.  Answer – (c) Reduction of workforce 38

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40. ANSWER- (A) - (IV), (II),(I),(III) 40

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51. TRAINING • After Selection and Induction, training must be provided to adjust to the job • It is the act of increasing the knowledge and skill of an employee for doing a particular job. • It is an organised procedure by which people learn knowledge and/ or skill for a definite purpose. • Training refers to teaching and learning activities carried o the primary purpose of helping members of an organisation to acquire and apply the knowledge, skills, abilities and attitudes needed by a particular job or organisation. 51

52. TRAINING METHODS  Job rotation  Coaching  Job instruction  Training through step-by-step  Committee assignments  Internships  Vestibule Training  Role Playing  Lecture Methods  Conference or Discussion  Programmed instruction On-the-job Methods Off-the-job Methods 52

53. ADVANTAGES OF TRAINING  Increased Productivity  Heightened Morale  Reduced Supervision  Reduced Accidents  Increased Organisational Stability 53

54. MANAGEMENT DEVELOPMENT  Systematic process of growth and development by which the managers develop their abilities to manage.  Concerned with improving the performance of managers by giving them opportunities of growth and development, which in turn depends on organisation structure of the company. 54

55. METHODS OF MANAGEMENT DEVELOPMENT  Coaching  Job Rotation  Under Study  Multiple Management  The Case study  Incident Method  Role Playing  In Basket method  Business game  Sensitivity training  Simulation  Grid training  Conferences  Lectures  Behaviour Modeling On-the job techniques Off-the-job techniques 55

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60. ANSWER (A) 1,2,3 60

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63. SUCCESSION PLANNING  SP is to identify, develop and make the people ready to occupy higher level jobs as and when they fall vacant.  Succession mat be from internal or external employees.  Organizations appraise employee potentialities, identify training gaps for future vacancies, develop them for higher and varied jobs.  The Scope of succession plan would be more when the organizations grow steadily and employees have potentialities to take up higher responsibilities. 63

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67. WAGE AND SALARY ADMINISTRATION  Wage- the remuneration paid by the employer for the services of hourly, daily, weekly and fortnightly employees.  Salary- The term salary is defined as the remuneration paid to the clerical and managerial personnel employed on the monthly or annual basis.  Incentive wage- the amount of remuneration paid to a worker over and above the normal wage as an incentive for employees contribution to the increased production or savings in time or material. 67

68. OBJECTIVES OF WAGES AND SALARY ADMINISTRATION  To acquire qualified competent personnel  To retain the present employees  To secure internal and external equity  To ensure desired behaviour  To keep labour and administration cost at minimum  To facilitate pay roll  To simplify collective bargaining  To promote organisation 68

69. FACTORS AFFECTING WAGES/SALARY LEVEL  Remuneration in comparable industries  Firms ability to pay  Cost of Living  Productivity  Union Pressure and Strategies  Government Legislations 69

70. TYPE OF WAGES  Time Wage- workers are paid according to the work done during a certain period of time, at the rate of so much per hour, per day, per week, per month or any fixed period of time.  Piece Wage- Workers are paid according to the amount of work done or the numbers of units completed, the rate of each unit being settled in advance, irrespective of the time taken to do the task.  Balanced or Debt Method- Combination of time and piece method. 70

71. INCENTIVES  Incentive scheme is a plan or programe to motivate individual and group performance.  It can be monetary as well as non-monetary  Factors Affecting Incentives are:  The individual and the incentives  The work situation  It Increacses the motivation in a person 71

72. FRINGE BENEFITS  Also known as:  Welfare Expenses  Wage Supplements  Subwages  Social Charges  Perquisites other than wages  Transparency Incentives  Extra Wages  Hidden Pay roll  Non-Wage Labour Costs 72

73.  Meaning-  Supplements to wages received by workers at a cost to employers.  The term encompasses a number of benefits- paid vacations, pension, health and insurance plans etc.  Cockman – “those benefits which are supplied by an employer to or for the benefits of an employee, and which are not in the form of wages, salaries and time- rated payments.” 73

74.  Features  In addition to wage and salary  To stimulate their work and increase productivity  Fringe benefits represents a labour cost for employer, it is an expenditure which he incurs on supplementing the average money rates due to his employees.  It is never a direct reward geared to the output, effort or merit of an employee.  It should be intended by an employer as a benefit desired by his staff. 74

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78. MORALE  A state of mind of a willingness to work which in turn affects individuals and organizational objectives.  Importance:  Sound superior-subordinate relations  High employee satisfaction  Reduce employee grievances  Avoidance of Industrial Disputes  Build teams and maximize contribution 78

79.  Morale results in:  High commitment  Low turnover  Increase in disciplene  Reduction in conflicts  Increase in employee pride  Team building  Employee empowerment  Easy implementation of ERP 79

80. MEASUREMENT OF MORALE  Observations  Attitude surveys  Interview method  Questionnaire method  Company records and Reports 80

81. IMPROVING MORALE  It is essential to change the policy or to correct it immediately.  Misconceptions should be removed, and the correct position should be explained to the employees.  A reasonable attempt should be made to educate and convince the employees. 81

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85. PERFORMANCE APPRAISAL  PA is the process of evaluating the performance of a job in terms of its requirements.  Process of judging the value, excellence, qualities or status of some object, person or a thing.  Process of evaluating the performance of an employee ad communicating the results of the evaluation to him for the purpose of rewarding or developing the employee. 85

86. OBJECTIVES OF PA  Setting targets and goals as performance standards.  Evaluating employee performance.  Identifying training and development needs.  Rewarding performance.  Improving performance. 86

87. PROCESS OF PA  Establish performance standards  Communicate performance expectations to employees  Measure actual performance  Compare actual performance with standards  Discuss the appraisal with the employee  If necessary, initiate corrective action 87

88. METHODS OF PA  Ranking Method  Paired Comparison  Grading  Graphic rating Method  Forced choice Method  Forced Distribution Method  Check lists  Essay Method  Critical Incidents  Field Review Method  Group Appraisal  Assessment Centre  MBO  BARS  Human Resource Accounting Method  360 Degree Appraisal Traditional Methods Modern Methods 88

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99. ANSWER (C) MBO 99

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103. ANSWER (D) I, II, III, IV 103

104. JOB EVALUATION  JE is an attempt to determine and compare demands which the normal performance of a particular job makes on normal workers without taking into account the individual abilities or performance of the workers concerned.  It is a process of determining the relative worth of jobs, ranking and grading them by compounding the duties, responsibilities, requirements like skill, knowledge of a job with other jobs with a view to fix compensation payable to the concerned job holder 104

105. OBJECTIVES OF JE  To gather data and information relating to JD and JS.  To compare the duties, responsibilities and demands of a job with that of other jobs.  To determine hierarchy and place of various jobs in a organisation  To determine ranks or grades of various jobs  To ensure Fair and Equitable wages  To minimize discrimination 105

106. PROCESS OF JE 1. Analyze and Prepare JD 2. Select and prepare a JE plan 3. Classify jobs 4. Install the Programme 5. Maintain the Programme 106

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109.  Answer – (B) which are most important for survival of organisation 109

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112. INDUSTRIAL RELATIONS  IR is used to denote the collective relationship between management, employees and Government in any form of industrial or non-industrial organisation.  IR deals with either the relationship between the state and employers and workers of organization or the relationship between the occupational organizations themselves. 112

113. SIGNIFICANCE OF IR  To help in economic progress of a country  Establising and maintaining true industrial democracy  Formulation of informed laboyr relations policies  Encourage collective bargaining  Help govt. in making laws  Boost Discipline and Morale of workers 113

114. CONDITIONS FOR GOOD IR 1. History of IR 2. Economic satisfaction of workers 3. Social and Psychological satisfaction of workers 4. Off-the-job conditions of workers 5. Role of Labour Unions 6. Negotiating skills and attitude of mgt. and workers 7. Public policy and legislation 8. Eduaction of workers 9. Natue of industry and business cycles 10. Systematic data base 114

115. CAUSES OF POOR IR  Uninteresting nature of Work  Political nature of Unions  Poor Wages  Occupational instability  Poor behaviour climate 115

116. EFFECTS OF POOR IR  Multiplier Effect (losses)  Fall in normal tempo  Resistance to Change  Frustration and Social Cost 116

117. SUGGESTIONS TO IMPROVE IR  Both mgt. and unions should develop constructive attitudes towards each other  All basic policies and procedures relating to IR should be clear to everybody in the org. and union leaders.  The HR manager should remove distrust by convicing the unions  The HR manager should not vie with the union to gain workers loyalty.  Mgt. should encourage the right kind of Union leadership  Agreement should be properly Administered. 117

118. INDUSTRIAL DISPUTES  According to Sec. 2(k) of the Industrial Dispute Act, an ID means any dispute or difference between employers and employers, or between employers and workman, or between workman and workman, which is connected with the employment or non-employment of the terms of employment or with the conditions of labour, of any person. 118

119. FORMS OF DISPUTES  Strike  Stay-in strike, sit-down strike, pen-down strike or tool down strike  Go slow  Hunger Strike  Lightening/Wild Cat Strike  Work-to-rule  Lock out  Gherao 119

120. METHOD FOR PREVENTION OF ID  Collective Bargaining  Code of Discipline  Arbitration  Permanent Negotiating Machinery and Joint Consultative Machinery  Tripartite Bodies 120

121. TRADE UNIONS  A TU means an association of workers in in one or more occupations- an association carried on mainly for the purpose of protecting and advancing the members economic interest in connection with daily work.  TU is an association of employees designed primarily to maintain or improve the condition of employment of its members. 121

122. NEED FOR TU  To oppose mgt.  To participate in union activities  To excersise leadership  To fall in line with others  To get employment 122

123. OBJECTIVES OF TU  To defend or improve the wages or working conditions of workers and to bring a change in economic order  To overthrow capitalism and to bring about a revolutionary and fundamental change in political order.  To replace managerial dictatorship by workers democracy and to bring about a change in the social order. 123

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126. EMPLOYEES HEALTH AND SAFETY  Industrial Accidents  An Occurrence which interrupts or interferes with the orderly progress of work in an industrial establishment  Factories Act, 1948 defines it as “an occurrence in an industrial establishment causing bodily injury to a person which makes him unfit to resume his duties in the next 48 hours.” 126

127. CAUSES OF INDUSTRIAL ACCIDENTS 1. Unsafe Conditions/ Work Related Causes 1. Improperly guarded equipment 2. Defective equipment 3. Hazardous arrangement or procedure in and or around, machines or equipment. 4. Unsafe storage, congestion, overloading. 5. Inadequate safety devices 6. Faulty lay-out, bad location 7. Insufficient light 8. Improper ventilation 9. Other work related Causes: 1. The Job Itself 2. Work schedules, accidents increase late in the day 3. Psychological climate of work place 127

128.  Unsafe Acts  Operating without authority  No warning of possible danger  No safe attire or protective equipment  Throwing materials on floor carelessly  Operating or working at unsafe levels of speed  Making safety devices inoperative  Using unsafe equipments  Using equipments unsafely  Lifting improperly  Taking unsafe positions 128

129.  Other Causes  Unsafe situation  Unsafe climatic conditionsbad working conditions  Rough and slippery floors  Excessive glares  Heat  Humidity  Dust and Fume laden environment  Long working hours  Unsatisfactory behaviour of supervisors 129

130. EMPLOYEE SAFETY  Every org. should have a safety policy  Safety policy depends upon:  Size of the company  The number of plants it operates  Nature of industry  Production technology  Attitude of top management  After formulating policy, a company should establish a safety programme, to reduce the number of hazardous factors which are likely to cause accidents, and to develop safe working habits among its employees. 130

131. SAFETY COMMITTEE  Appraisal of employee attitude to safety programmes.  Safety engineering The adoption of proper engineering procedures to minimize and, if possible, eliminate work hazards is fundamental to any organised safety programme.  Safety education and training 131

132. SAFETY OF WORKERS PROVISIONS OF FACTORIES ACT  Fencing of Machinery  Work on or near machinery in motion  Employment of young near danger machines  Device for cutting off power  Hoists and lifts  Proper construction and maintenance of floors and stairs  No excessive weights  Suitable precautions against excessive light  Safety of building and Machinery  Appointment of Safety officers 132

133. INDUSTRIAL HEALTH  Health- a state of complete physical, mental, and social well-being and not merely the absence of disease or infirmity.  Industrial Health- a system of public health and preventive medicine which is applicable to industrial concerns.  According to ILO/WHO: Industrial Health means: 1. The prevention and maintenance of physical, mental and social well-being of workers in all occupations. 2. Prevention among workers of ill health caused by the working conditions 3. Protection of workers in their employment from risks resulting from factors adverse to health 4. Placing and maintenance of workers in an occupational environment adapted to his physical and psychological equipment. 133

134. OCCUPATIONAL HAZARDS  According to Ronald Blake, the normal occupational health hazards may be classified into chemical, biological, environmental and psychological hazards.  Chemical substances cause injury when they are absorbed by the skin or when they are ingested and inhaled.  Gases, fumes and dust inhaled by workers causes serious injury or death. 134

135.  Among the biological hazards are included diseases which are caused by bacteria, fungi, viruses, insects, dietary deficiencies, imbalances, allergies, brain fever, emotional stress and psychological concomitants of fear, rage, worry and anxiety.  Environmental hazards may be included radiation, noise, vibration, shocks and improper atmospheric conditions.  Other Hazards caused due to-  Noise, Vibration, Shocks, Atmospheric Conditions etc. 135

136. HEALTH OF WORKERS PROVISIONS OF FACTORIES ACT, 1948 1. Cleanliness 2. Disposal of wastes and effluents 3. Ventilation and temperature 4. Dust and Fume 5. Artificial Humidification 6. Overcrowding 7. Lighting 8. Drinking water 9. Latrines and Urinals 10. Spittoons 136

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139. ANSWER (B) 139

140. LABOUR WELFARE  Oxford Dictionary- “efforts to make life worth living for women.”  Objectives-  To give expression to philanthropic and paternalistic feelings.  Win employees loyalty and increase morale.  To combat trade unionism and socialist ideas.  Reduce turnover and absenteeism  Increase efficiency and productivity  Earn goodwill and enhance public image  Reduce govt. intervention  Make recruitment more effective. 140

141. PRINCIPLES OF LABOUR WELFARE SERVICES  The Service should satisfy the real need of workers  The Services should be such as can be handled best by group approach  The employer should not assume a benevolent posture  The cost of services should be calculable  Periodic evaluation of services, timely improvement and feedback 141

142. SAFETY SERVICES  Components of Safety Service:  Appointment of Safety officer  Support by line mgt.  Elimination of Hazards  Job safety analysis, Placement  Personal protective equipment  Safeguarding machinery  Materials handling, Hand tools  Maintenance, Layout and Design  Housekeeping  Safety training, education and publicity  Safety inspections  Periodic Safety audits 142

143. SOCIAL SECURITY  According to the Social Security Conventions adopted by ILO in 1952 following are the Nine Components of Social Security 1. Medical Care 2. Sickness Benefit 3. Unemployment Benefit 4. Old-age Benefit 5. Employment injury Benefit 6. Family Benefit 7. Maternity Benefit 8. Invalidity Benefit 9. Survivor’s Benefit 143

144. SOCIAL SECURITY IN INDIA  The Workmen’s Compensation Act, 1923  The Employees State Insurance Act, 1948  The Employees Provident Fund and Miscellaneous Provisions Act, 1952  The Maternity Benefit Act, 1961  The Payment og Gratuity Act, 1972  The Industrial Dispute Act, 1947 144

145. WORKERS’ PARTICIPATION IN MANAGEMENT  WPM is a mental and emotional involvement of a person in a group situation which encourages him to contribute to goals and share responsibilities in them.  It is Institutional and formal arrangements resulting into creation of various participative forums to associate worker representative with mgt. 145

146. OBJECTIVES OF WPM  Increased productivity and efficiency  Better understanding to employees about their role  Satisfy workers social and esteem needs  Maintain industrial peace and harmony  Tapping latent resources  Develop self management in industry  Build most dynamic HRs  Build nation through Entrepreneurship and Economic Development 146

147. FACTORS INFLUENCING WPM  The subject matter of participation  The level of participation  The personal characteristics of the individuals who are asked to participate in the Decision- making  The extent of participation 147

148. FORMS OF WPM  Works Committee  Joint Management Council  Joint Councils  Shop Councils 148

149. OBSTACLES IN WPM  Conflict between employees and Management  Belief that workers are inferior to mgt.  Fact that system is management dominated  Managers are averse to share responsibility 149

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155. ANSWER (D) III, IV, II, I 155

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157. ANSWER (A) II, IV, I , III 157

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