Unit 6 BM and HRM PYQ’s 25th Dec 2021 Shift 1

The correct answer is (A) – (II), (B) – (IV), (C) – (I), (D) – (III)

The correct match is given below:

Important Points 

Extroversion: 

• Extroversion (also known as extraversion) is one of the five main personality traits that are thought to make up a person’s personality.
• Friendliness, talkativeness, aggressiveness, and excitability are all characteristics of extroverts.

Conscientiousness:

• The way a person manages, regulates, and directs their impulses is referred to as conscientiousness.
• On a professional test, people who score high on conscientiousness are adept at forming long-term goals, organising and planning pathways to these goals, and working persistently to achieve them.
• The sub traits of conscientiousness are: Self-efficacy, Orderliness, Dutifulness, Achievement-striving, Self-discipline, Cautiousness

Emotional Stability:

• Stability of emotion is a good quality. It means you can persevere in challenging conditions, deal with hardship, and stay productive and capable.
• Calm, happy and secure are traits of this dimension

Openess to experience:

• In the Five Factor Model, one of the categories used to describe human personality is openness to experience.
• Active imagination, aesthetic sensitivity, attention to inner sentiments, a preference for variety, and intellectual curiosity are all characteristics of openness.
• These attributes are statistically connected, according to a large body of psychometric research.
• As a result, openness can be thought of as a broad personality trait made up of a collection of distinct traits, behaviours, and dispositions that cluster together.

The correct answer is Amortization

Key Points

• Valuation of human assets is related to human resource accounting. It is mainly related to human capital.
•  Its basic objective is the effective management of human resources, facility, so that the acquisition, development, to be maintained, consumed and evaluated.
• Following are the methods for taking valuation of human:
  • Historical Cost Method/Amortization.
  • Replacement cost method.
  • Opportunity Cost Method.
  • Economic value method.
  • Standard Costing Method
  • Non-monetary methods.
  • Cost-benefit method

Amortization of human assets is also done in the same way to other physical assets. The asset is written off for its useful life.

If the asset is prematurely liquidated, the amount thereof will be is charged to the revenue account.

Therefore, amortization is the basic method of valuation of human assets.

The incorrect option is Capacity and lower needs

Key Points

Organisational Structure

• A structure of an organisation is a set of predefined linkages between groups of related functions, as well as between physical factors and persons required to accomplish the duties.
• The organisation chart is used to represent the structure of the company. It demonstrates power and responsibility among various roles inside the company by indicating who reports to whom.
• The organisational structure establishes the communication and coordination patterns in businesses.

Important Points 

Chain and span:

• Scalar chain is a chain of all supervisors from the top management to the person working in the lowest rank
• Span of control (or span of management) is the number of subordinates who report directly to a manager or leader.
• If the span of control is very limited, the number of organisational levels (scalar chain) will increase, as the organisation grows in size, the organisational structure becomes tall.

Power and Control:

• When we look around organisations, we can notice power expressions practically everywhere. In truth, there are numerous power-based strategies for influencing others. 
• Common power methods, symbols of managerial authority, and ethical power use.
•  Controlling Access to Information, Controlling Access to Persons, Controlling the Agenda. Etc are some important factors of organisational structure. 

Differentiation and integration:

• Differentiation is the process through which a company divides itself into important components like departments or product offers.
• Inter-departmental coalitions, are examples of how businesses integrate its components.

Thus, Capacity and lower needs are not primary determinants of organisational structure.

The correct answer is A, B, C, D

Key Points Management:

Management is the art of maximizing efficiency, as a social process, a method of getting things done through others a plan of action and its direction by a co-operative group moving towards a common goal. Effective utilisation of available resources to achieve the same objective is management

Important Points Features of Principles of Management

1. Flexible: Management concepts are not rigid laws, but rather changing suggestions.When it comes to management concepts, change and progress are a constant.
2.  Universal: Management principles apply to all types of organisations, both for profit and non-profit. They can be used at all levels of management. Every firm must make the best use of management principles available. As a result, they are universal or all-encompassing.

3. Principles are relative, not absolute: Management principles are relative, not absolute, and should be used based on the organisation’s needs. Under different circumstances, a specific management theory has varied strengths. As a result, the principles should be used in accordance with the current circumstances.
4. Based on situation: Management principles are the basic truths that govern managerial behaviour. They help managers in taking managerial decisions. They are the general premises that can be applied to different situations​. 

The correct answer is A, C only

 Key Points 

Training Needs Assessment:

• A training needs assessment is a comprehensive procedure for determining which type of training is required and providing information on how to implement the training.
• It’s also known as a tool for identifying new abilities, knowledge, and attitudes that employees need to develop in order to improve their performance.
• The Training Needs Assessment (TNA) assists firms in determining the skills and training gaps in their existing personnel in order to efficiently fulfil current and future jobs.

Important Points

Advantages of use of interviews as a training needs assessment technique

1. It helps in collecting qualitative and quantitative data.

2. It helps in getting high return on investment.

3. By this the questions can be improved.

4.  It provides opportunity for learning and development through proper training.

5. Explores unpredictable topics.

6. It is easy to analyse the results.

The correct answer is B, C only

Key Points Incentive Pay:

Incentive pay is financial reward for performance rather than pay for the number of hours worked. The idea is the prospect of financial compensation will motivate the employee to hit certain performance figures or financial targets. 

Important Points Advantages of Incentive Pay:

An incentive pay plan is a great way to keep employees motivated and boost both morale and job satisfaction.

It has the following advantages

1. Improved Employee Performance and Retention

2. Better Organizational Performance

3. Make better use of equipment.

4. Helps in executing business strategy.

5. Absence and turnover decrease.

The correct answer is (E), (D), (A), (C), (B)

Key Points Group Development:

Group development is the process through which mem newly established work teams get to know their co-bers ofworkers, define their roles and responsibilities, and develop the task work and collaboration skills needed to coordinate their efforts and operate effectively as a group.

Important Points Stages of Group Development:

1. Members are moderately eager, have positive expectations, anxious about why they are there, and who other members are.
2. Conflicts start arising due to the differences of opinion among members.
3. Members begin to resolve differences and clarify the purpose of the group and the roles of group members.
4. Members are highly task-oriented and there is unity in the group.
5. It includes recognition for participation and achievement.

The correct answer is (A), (E), (C), (B), (D)

Key Points

Formation of Company:

Formation of a company involves a number of steps which are required to be taken from the time a business idea originates till the time a company is legally ready to commence business.

Important Points

Stages involved in formation of company:

Stage 1: Promotion stage:

The term ‘promotion’ refers to the entire set of operations that go into bringing a firm to life.

The promoters of a firm conceptualise the notion of promoting a company and the kind of activities it intends to engage in throughout the promotion stage.

The following activities are involved in this stage:

• Identification of business opportunity and the type of business to be undertaken
• Undertaking a feasibility study to determine technical, economic and legal viability of the project to be undertaken by the company
• Obtaining consent of the persons who will be signatories to documents to be submitted to the Registrar of Companies for getting the company registered
• Obtaining consent of the persons who will act as first directors (2 required in the case of a private company and 3 in the case of a public company).

Stage 2: Selection of name

Then the next step is deciding the name of the company to be formed and getting this name approved from the Registrar of Companies. The name must be unique and acceptable, as defined by the Companies Act, 2013 or LLP Act, 2008. The name cannot be the same or similar to an existing company or LLP or trademark in the same industry or field.

Stage 3: Incorporation Stage

The incorporation or registration stage entails submitting an application to the relevant Registrar of Companies and having the company registered. In India, there is a Registrar of Companies office in each of the country’s major states.

The following activities are involved in this stage:

• Filing registration application with the Registrar of Companies along with relevant documents
• Scrutiny of the application and documents by the Registrar of Companies.
• Registering the company by the Registrar if all requirements are fulfilled and entering the name of the company in the relevant register.
• Issue of Certificate of Incorporation by the Registrar of Companies.

On issue of the Certificate of Incorporation, the company comes into existence as an artificial person.

Stage 4: Raising of share capital stage: 

• After a corporation is formed, it proceeds to raise funds by issuing shares to its members.
• Persons who are signatories to documents and have agreed to subscribe to the prescribed number of shares are given shares first.
• A private company may thereafter begin operations, whereas a public company must first obtain a Certificate of Commencement of Business from the relevant Registrar of Companies.

Stage 5: Commencement of Business Stage:

A public corporation must obtain a Certificate of Commencement of Business from the Registrar of Companies in order to start doing business.

For this purpose, the company is required to submit the following documents:

• A declaration stating the shares that will be subscribed on a cash basis have been allocated.
• A declaration confirming all the Directors have paid in cash for the shares they have subscribed to.
• A declaration that the foregoing standards have been met, signed by either the company’s Director or Secretary.

The Registrar of Companies examines the above papers and issues a Certificate of Commencement of Business if all the conditions are met in accordance with the Companies Act.

The correct answer is A, B and D only

Key PointsThe main qualification for any organization refers to capabilities, knowledge, skills and resources, which and the environment constitute its strength.

A company’s core competency is distinct, and therefore easily replicated by other organizations and market, whether they are existing competitors or new entrants to its market.

Important Points

Key competencies a company can have:

• Potential access to a wide variety of markets
• Make a significant contribution to the perceived benefits of the customer.
• Distinctive and difficult for competitors to emulate
• Product quality.
• Innovations etc

The correct answer is Law of effect

Key Points 

Law of Effect:

• According to the law of effect “Responses that produce a satisfying effect in a particular situation become more likely to occur again in that situation, and responses that produce a discomforting effect become less likely to occur again in that situation,”
• This law was proposed by Edward Thorndike in 1898 on the subject of behavioural conditioning 

Example:

Drug addiction is frequently used as an example. Because of the repeating consequence, when a person uses a substance for the first time and has a positive result, they are more inclined to repeat the behaviour. The neural system of the person will build a tolerance to the drug over time. As a result, the only way to achieve the same level of happiness is to increase the drug’s dosage, which is risky for the user.

The correct answer is Both Statement I and Statement II are incorrect.

Key Points 

Statement I : Delegation is an interpersonal transactions based on behaviour analysis.

• Delegation is an essential aspect of leadership to recognize the skills in those you lead and empower them to take ownership. It includes interpersonal transactions based on behaviour.
• The key to effective intrapersonal communication is self-awareness and internal attitude and process management.
• Some skills highly intrapersonal people have:
  • Vision
  • Strategic Thinking
  • Productivity
  • Resilience
  • Delegation
  • Analytical Thinking
• Hence, Statement I is correct.

Statement II : Delegation is an evolutionary and developmental process which needs encouragement and reinforcement.

• Delegation is a very helpful aid for succession planning, personal development and seeking and encouraging promotion.
• A delegating leadership style is a low task and relationship behaviour approach to leadership where a leader empowers an individual to exercise autonomy.
• Delegation is an evolutionary and developmental process which needs encouragement and reinforcement
• Hence, Statement II is correct.

Therefore, we can say that Statement I is correct, and Statement II is also correct.

The correct answer is The utilitarian principle

Key Points

The utilitarian principle:

• Utilitarianism is a part of the larger family of ethical theories called ‘consequentialism.’
• According to it whether an act is right or wrong is determined directly or indirectly by the act’s consequences.
• Utilitarianism was a social reform movement and an ethical theory, which held that the morality of an act should be judged solely on the basis of its results.

Important Points 

According to utilitarianism, utility is the only intrinsic good. Actions are judged right or wrong in proportion to their propensity to produce the maximum happiness or pleasure for the greatest number.