Samacheer Kalvi 12th Commerce Chapter 9 Fundamentals of Human Resource Management Exercise Solutions

Q: What are the characteristics of Human Resources?

The characteristics of HR can be remembered as OWE MOM LACE: Only factor that lives, Works as team, Exhibits innovation, Movable, Over years gains value, Motivated by cash/kind, Labour hired not employee, Act/Analyse/Think, Create all resources, Emotional beings.

Q: What are the functions of HRM?

Managerial functions: Planning, Organising, Directing, Controlling (COPD). Operative functions: Procurement, Development, Compensation, Retention, Integration, Maintenance.

I. Choose the Correct Answer

Q1. Human resource is ________ in nature.

(a) Tangible
(b) Intangible
(c) Both tangible and intangible
(d) None of the above

Answer(b) Intangible — Human resource is intangible in nature. It refers to the skills, knowledge, abilities, and potential of people, which cannot be physically touched or seen like machinery or raw materials.

Q2. Human resource management is a combination of

(a) Science and technology
(b) Art and science
(c) Science and art
(d) None of the above

Answer(c) Science and art — HRM is both a science (based on systematic principles and theories) and an art (requires practical skill and creativity in managing people).

Q3. HRM is ________ in nature.

(a) Pervasive
(b) Limited
(c) Restricted
(d) None of the above

Answer(a) Pervasive — HRM is pervasive in nature, meaning it is present and applicable in all types of organisations — big or small, public or private, profit or non-profit.

Q4. Human relation is between ________ and ________

(a) employer and manager
(b) employer and employee
(c) manager and customer
(d) employee and government

Answer(b) employer and employee — Human relations in the context of HRM refer to the relationship between the employer and the employee.

Q5. The ________ given by the employer may be annual, casual, and sick.

(a) salary
(b) wage
(c) leave
(d) incentive

Answer(c) leave — Leave given by the employer includes annual leave (earned leave), casual leave, and sick leave.

II. Choose the Correct Answer (Additional MCQs)

Q1. Human resource is important because

(a) It can create all other resources
(b) It is the most expensive resource
(c) It is fixed in nature
(d) None of the above

Answer(a) It can create all other resources — Human resource is unique because it is the only resource that can create, develop, and manage all other resources such as physical, financial, and informational resources.

Q2. Which of the following are functions of HRM?

(a) Motivating
(b) Maintaining
(c) Hiring
(d) All of these

Answer(d) All of these — Motivating, Maintaining, and Hiring are all functions of HRM. HRM encompasses a wide range of activities related to managing people in organisations.

Q3. Incentives and bonus are examples of

(a) Monetary rewards only
(b) Non-monetary rewards only
(c) Both bonus and incentives
(d) None of the above

Answer(c) Both bonus and incentives — Bonuses and incentives are forms of monetary compensation given to employees to motivate them and reward performance.

Q4. Human resource has

(a) Talent
(b) Creativity
(c) Innovation
(d) All of the above

Answer(d) All of the above — Human resource possesses talent, creativity, and innovation, which distinguish it from other resources.

Q5. The term 'employee' refers to

(a) Employer
(b) Employee
(c) Manager
(d) Government

Answer(b) Employee — The term 'employee' refers to a person who works for an organisation in return for wages or salary.

Q6. Human resource is ________ in nature.

(a) Fixed
(b) Movable
(c) Immovable
(d) None of the above

Answer(b) Movable — Human resource is movable in nature, meaning people can move from one organisation, place, or job to another based on their preferences and opportunities.

III. Match the Following

	Column I		Column II
(i)	HR	(1)	Right man Right Job
(ii)	HRM	(2)	Integration
(iii)	Operative Function	(3)	Planning
(iv)	Managerial Function	(4)	Employers

Answer

(i) — 4: HR → Employers — Human Resource refers to the people (employers and employees) who contribute to the organisation.
(ii) — 1: HRM → Right man Right Job — The ultimate aim of HRM is to place the right person in the right job.
(iii) — 2: Operative Function → Integration — Integration (maintaining harmonious relationships) is an operative function of HRM.
(iv) — 3: Managerial Function → Planning — Planning is a managerial function of HRM.

IV. Very Short Answer Questions

Q1. What is Human Resource?

AnswerHuman Resource refers to the employees or people who work in an organisation. They are the most essential resource for the survival and success of any organisation. Human resource includes the skills, knowledge, abilities, and potential of all the people who contribute to organisational goals.

Q2. What is Human Resource Management?

AnswerHuman Resource Management (HRM) is the branch of management that deals with the human element in an organisation. It is concerned with acquiring, developing, motivating, and retaining people to achieve organisational objectives. According to E.F.L. Brech, HRM is "that part of management process which is primarily concerned with the human constituents or their organised activities in the management of an undertaking."

Q3. What are the two features of HRM?

AnswerThe two features of HRM are: 1. Universally relevant: HRM is applicable to all types of organisations — big or small, public or private, profit or non-profit. 2. Goal-oriented: HRM aims to achieve organisational goals through effective management of human resources, ensuring the right person is placed in the right job.

Q4. What are the characteristics of Human Resource? (OWE)

AnswerThe characteristics of Human Resource can be partially remembered by the mnemonic OWE: 1. O — Only factor that lives: Human resource is the only resource that has life and consciousness. 2. W — Works as a team: Human resources can work together as a team to achieve common goals. 3. E — Exhibits innovation and creativity: Human resources possess the ability to innovate and be creative.

Q5. What are the managerial functions of HRM?

AnswerThe managerial functions of HRM are: 1. Planning 2. Organising 3. Directing 4. Controlling

Q6. What are the operative functions of HRM?

AnswerThe operative functions of HRM are: 1. Procurement 2. Development 3. Compensation 4. Retention 5. Integration 6. Maintenance

V. Short Answer Questions

Q1. Define HRM.

AnswerAccording to E.F.L. Brech, HRM is "that part of management process which is primarily concerned with the human constituents or their organised activities in the management of an undertaking." HRM involves the recruitment, selection, training, development, compensation, and retention of employees to ensure that the right person is placed in the right job at the right time.

Q2. What are the characteristics of Human Resource? (OWE MOM LACE)

AnswerThe characteristics of Human Resource can be remembered by the mnemonic OWE MOM LACE:

1. O — Only factor that lives: Human resource is the only resource that has life, consciousness, and the ability to think. 2. W — Works as a team: Human resources can collaborate and work together as a team towards common objectives. 3. E — Exhibits innovation and creativity: Human resources possess the unique ability to innovate, create, and think beyond the obvious. 4. M — Movable: Human resources can move from one organisation, place, or job to another. 5. O — Over years gains value: Unlike physical resources that depreciate, human resources gain value over time through experience and learning. 6. M — Motivated in cash and kind: Human resources can be motivated through monetary (cash) and non-monetary (kind) incentives. 7. L — Labour hired, not the employee: In HRM, it is the labour or service of the employee that is hired, not the employee as a person. 8. A — Act, Analyse, Think: Human resources can act, analyse situations, and think critically — abilities that machines lack. 9. C — Create all resources: Human resource is the only resource that can create all other resources (physical, financial, informational). 10. E — Emotional beings: Human resources are emotional beings with feelings, aspirations, and needs that must be considered.

Q3. What is the significance of Human Resource?

AnswerThe significance of Human Resource is: 1. HR manages other factors: Human resource is the only resource that can create, develop, and manage all other resources such as physical, financial, and informational resources. 2. Utilised at all levels: Human resources are utilised at all levels of management — top, middle, and lower — and in all functional areas. 3. Helps industrial relations: Effective HRM helps maintain harmonious industrial relations between employers and employees, reducing conflicts and disputes. 4. Protected by legal frameworks: Human resources are protected by various labour laws and legal frameworks that ensure fair treatment, safety, and welfare of employees.

Q4. What are the functions of HRM?

AnswerThe functions of HRM are classified into two categories:

A. Managerial Functions: 1. Planning: Deciding in advance what to do, how to do, when to do, and who will do it. 2. Organising: Division of work, delegation of authority, and coordination of activities. 3. Directing: Giving orders, supervision, leadership, and motivation. 4. Controlling: Comparing actual performance with standards and taking corrective action.

B. Operative Functions: 1. Procurement: Job analysis, human resource planning, recruitment, and selection. 2. Development: Performance appraisal, training, executive development, and career planning. 3. Compensation: Job evaluation, wage and salary administration, and incentives. 4. Retention: Health and safety, job satisfaction, and employee welfare. 5. Integration: Maintaining harmonious relations between employer and employee. 6. Maintenance: Encouraging job satisfaction, reducing employee turnover, and improving morale.

VI. Long Answer Questions

Q1. Explain the characteristics of Human Resource in detail. (OWE MOM LACE)

AnswerThe characteristics of Human Resource can be remembered by the mnemonic OWE MOM LACE:

1. O — Only factor that lives: Human resource is the only factor of production that has life. Unlike machinery, raw materials, or money, human resources can think, feel, and make decisions. They are living beings with consciousness and willpower.

2. W — Works as a team: Human resources have the unique ability to work collaboratively as a team. They can coordinate, communicate, and cooperate with each other to achieve common organisational goals. Teamwork amplifies individual capabilities.

3. E — Exhibits innovation and creativity: Human resources possess the ability to think creatively and innovate. They can generate new ideas, develop novel solutions to problems, and adapt to changing circumstances — something no other resource can do.

4. M — Movable: Human resources are mobile and can move from one organisation to another, one place to another, or one job to another. This mobility is both an opportunity (career growth) and a challenge (attrition) for organisations.

5. O — Over years gains value: Unlike physical assets that depreciate over time, human resources appreciate in value. Through experience, learning, and skill development, employees become more valuable to the organisation over the years.

6. M — Motivated in cash and kind: Human resources can be motivated through both monetary incentives (salary, bonus, incentives) and non-monetary factors (recognition, status, job satisfaction, growth opportunities). This dual motivation makes them responsive to management efforts.

7. L — Labour hired, not the employee: In the context of HRM, what the organisation hires is the labour or service of the employee, not the employee as a person. The employee retains individual freedom and dignity.

8. A — Act, Analyse, Think: Human resources can take action, analyse complex situations, and think critically. This cognitive ability distinguishes them from machines and other resources that can only perform pre-programmed functions.

9. C — Create all resources: Human resource is the fundamental resource that creates all other resources. It is human effort that transforms raw materials into finished products, generates financial capital, and develops technology.

10. E — Emotional beings: Human resources are emotional beings with feelings, sentiments, aspirations, and needs. Their emotions affect their performance, and effective HRM must consider the emotional well-being of employees.

Q2. Explain the significance of HRM. (MEERA / JCE)

AnswerThe significance of HRM can be understood through the following points:

I. Identify manpower needs: HRM helps organisations identify the quantity and quality of human resources required to achieve organisational objectives.

II. Ensure correct requirement: HRM ensures that the right number of people with the right skills are available at the right time through proper human resource planning.

III. Select the right person for the right job: HRM ensures proper recruitment and selection so that the most suitable candidate is placed in each position.

IV. Update skills: HRM facilitates continuous learning and development through training programmes, ensuring that employee skills remain current and relevant.

V. Appraise performance: HRM provides a framework for fair and objective performance appraisal, helping employees understand their strengths and areas for improvement.

Additional significance:

1. HR manages other factors: Human resource is the only resource that can manage all other resources — physical, financial, and informational.

2. Utilised at all levels: HRM is applicable at all levels of management and in all functional areas of the organisation.

3. Industrial relations: Effective HRM promotes harmonious relations between employers and employees, reducing industrial disputes.

4. Legal protection: HRM ensures compliance with labour laws and provides legal protection to both employers and employees.

Q3. Explain the managerial functions of HRM. (COPD)

AnswerThe managerial functions of HRM can be remembered by the mnemonic COPD:

1. C — Controlling: Controlling involves comparing actual performance with predetermined standards and taking corrective action where necessary. In HRM, controlling includes monitoring employee performance, ensuring adherence to policies, and making adjustments to achieve desired outcomes. It is the process of ensuring that organisational goals are being met.

2. O — Organising: Organising involves the division of work among employees, delegation of authority, and establishing coordination among different departments. In HRM, organising means structuring the human resource function — defining roles, creating departments, establishing reporting relationships, and ensuring that resources are allocated efficiently.

3. P — Planning: Planning is deciding in advance what to do, how to do it, when to do it, and who will do it. In HRM, planning includes forecasting human resource needs, determining the number and type of employees required, and developing strategies for recruitment, training, and retention.

4. D — Directing: Directing involves giving orders, providing supervision, offering leadership, and motivating employees to perform their best. In HRM, directing includes communication, leadership, motivation, and supervision to ensure that employees understand their tasks and work towards organisational goals.

Q4. Explain the operative functions of HRM.

AnswerThe operative functions of HRM are:

1. Procurement: Procurement is the process of obtaining human resources for the organisation. It includes:

Job analysis: Determining the duties, responsibilities, and requirements of each job.
Human resource planning: Forecasting the number and type of employees needed.
Recruitment: Attracting qualified candidates for job openings.
Selection: Choosing the most suitable candidate from the pool of applicants.

2. Development: Development focuses on improving the skills and capabilities of employees. It includes:

Performance appraisal: Evaluating employee performance against set standards.
Training: Providing specific skills and knowledge to employees.
Executive development: Developing leadership and managerial skills.
Career planning: Helping employees plan their career path within the organisation.

3. Compensation: Compensation deals with the remuneration of employees for their contribution. It includes:

Job evaluation: Determining the relative worth of each job.
Wage and salary administration: Designing and implementing fair pay structures.
Incentives: Providing additional monetary rewards for superior performance.

4. Retention: Retention focuses on keeping employees satisfied and motivated to stay with the organisation. It includes:

Health and safety: Ensuring a safe and healthy work environment.
Job satisfaction: Creating conditions that promote employee contentment.
Employee welfare: Providing amenities and facilities for employee well-being.

5. Integration: Integration aims at maintaining harmonious relationships between employers and employees. It includes:

Trade union relations: Managing relationships with worker unions.
Conflict resolution: Resolving disputes between management and employees.
Collective bargaining: Negotiating terms of employment through dialogue.

6. Maintenance: Maintenance involves activities to sustain and improve employee morale and commitment. It includes:

Encouraging job satisfaction: Creating a positive work environment.
Reducing employee turnover: Implementing strategies to retain talent.
Improving employee morale: Boosting enthusiasm and commitment through recognition and rewards.

Common Mistakes to Avoid

1. Confusing HR with HRM: Human Resource (HR) refers to the PEOPLE in an organisation. Human Resource Management (HRM) is the PROCESS of managing those people. They are related but not the same.

2. Managerial vs. Operative functions: Managerial functions (Planning, Organising, Directing, Controlling) are performed by ALL managers. Operative functions (Procurement, Development, Compensation, Retention, Integration, Maintenance) are specific to HR managers.

3. "Intangible" in Q1: Human resource is intangible — you cannot touch or see the skills, knowledge, and abilities of people. Do not confuse this with "valuable" or "important."

4. OWE MOM LACE mnemonic: Remember the full expansion of each letter. "O" stands for "Only factor that lives" (not "Organised"), "M" stands for "Movable" (not "Motivating"), etc.

5. Labour hired, not the employee: This is a key concept — the organisation hires the SERVICE/LABOUR of the employee, not the person. The employee retains their individual freedom and dignity.

6. "Pervasive" meaning: Pervasive means HRM is applicable EVERYWHERE — all organisations, all levels, all departments. It does NOT mean "aggressive" or "widespread in a negative sense."

Exam Checklist

[ ] Can you define HRM (with E.F.L. Brech's definition)?
[ ] Can you list and explain the characteristics of HR (OWE MOM LACE)?
[ ] Can you distinguish between managerial functions (COPD) and operative functions?
[ ] Can you list the 4 managerial functions with explanations?
[ ] Can you list the 6 operative functions with explanations?
[ ] Can you explain the significance of HRM?
[ ] Can you state the two features of HRM (Universally relevant, Goal-oriented)?
[ ] Can you explain the difference between HR and other resources (physical, financial)?
[ ] Do you remember that HR is "intangible" and "movable"?
[ ] Can you explain Procurement, Development, Compensation, Retention, Integration, and Maintenance in detail?

Frequently Asked Questions

HRM is the branch of management that deals with the human element — acquiring, developing, motivating, and retaining people to achieve organisational goals.