Samacheer Kalvi Class 12 Commerce Solutions Chapter 9 Human Resource Management

I. Choose the Correct Answer.

 

Question 1. Human resource is a .......... asset.
(a) Tangible
(b) Intangible
(c) Fixed
(d) Current
Answer: (b) Intangible
In simple words: Human resources are not physical things you can touch, so they are considered intangible assets. They are about people's skills and knowledge.

🎯 Exam Tip: Remember that intangible assets are non-physical resources that add value to a company, like patents, trademarks, or in this case, the value of skilled employees.

 

Question 2. Human Resource management is both .......... and ..........
(a) Science and art
(b) Theory and practice
(c) History and Geography
(d) None of the options
Answer: (a) Science and art
In simple words: Managing human resources uses planned methods (science) and also needs creativity and human understanding (art). It's a mix of both.

🎯 Exam Tip: When defining HRM, it's crucial to mention both aspects – the scientific approach of using data and processes, and the artistic approach of leadership and interpersonal skills.

 

Question 3. Planning is a ............. Function.
(a) selective
(b) pervasive
(c) both a and b
(d) none of the options
Answer: (b) pervasive
In simple words: Planning is a pervasive function, meaning it happens at all levels and in every part of an organization. Everyone, from top managers to team leaders, needs to plan.

🎯 Exam Tip: The term "pervasive" in management means "spread throughout every part." Knowing this key term helps you understand why planning is considered fundamental to all organizational activities.

 

Question 4. Human resource management determines the .......... relationship.
(a) internal, external
(b) employer, employee
(c) Owner, Servant
(d) Principle, Agent
Answer: (b) employer, employee
In simple words: Human resource management mainly focuses on how employers and employees work together. It sets the rules and ways they interact.

🎯 Exam Tip: HRM is fundamentally about managing people within an organization, so its core relationship focus will always be between those who hire (employer) and those who are hired (employee).

 

Question 5. Labour turnover is the rate at which employees .............. the organisation.
(a) enter
(b) leave
(c) salary
(d) None of the options
Answer: (b) leave
In simple words: Labour turnover means how many workers leave a company over a certain period. It is about employees exiting the organization.

🎯 Exam Tip: Labour turnover is a key metric for businesses, as high turnover can indicate problems with employee satisfaction or working conditions, leading to increased recruitment costs.

II. Very Short Answer Questions.

 

Question 1. Give the meaning of Human Resource.
Answer: In an organization, human resources refer to the employees. These employees are extremely important for the organization to survive and succeed. They are the people who drive the company forward.
In simple words: Human resources are the employees in a company who are essential for its success.

🎯 Exam Tip: When defining human resource, always emphasize that it refers to the people (employees) and their critical role in an organization's success.

 

Question 2. What is Human Resource Management?
Answer: Human Resource Management (HRM) is the part of management that focuses on handling and managing people within an organization. It deals with all aspects of an employee's journey in the company.
In simple words: HRM is the part of managing a company that deals with how people (employees) are handled.

🎯 Exam Tip: A good definition of HRM highlights its role as a branch of management specifically dedicated to managing human capital.

 

Question 3. State two features of HRM.
Answer: Here are two features of Human Resource Management:
1. **Universally Relevant:** Human Resource Management is important everywhere, no matter the type or size of the organization. It applies to all businesses.
2. **Goal-oriented:** HRM helps organizations reach their goals by making sure human resources are used in the best possible way. It focuses on getting the most from employees to achieve company targets.
In simple words: HRM is useful in all types of organizations and helps them meet their goals by managing people well.

🎯 Exam Tip: When asked for features, choose points that clearly define what HRM is or how it functions. "Universally relevant" and "Goal-oriented" are strong, distinct features.

 

Question 4. Mention two characteristics of Human Resource. [OWE]
Answer: Here are two characteristics of Human Resource:
* Human resource is the only factor of production that is alive. It thinks and makes decisions.
* Human resource can work as a team, bringing different skills together to achieve common goals. This teamwork increases overall efficiency.
In simple words: Human resources are unique because they are living beings who can think, and they can work together as a team.

🎯 Exam Tip: When discussing characteristics of human resources, focus on their unique qualities compared to other resources, such as their ability to think, innovate, and collaborate.

 

Question 5. What are the managerial functions of HRM.
Answer: The managerial functions of Human Resource Management can be put into two main groups:
I. **Managerial functions:** This involves Planning, Organising, Directing, and Controlling the human resources.
II. **Operative functions:** This includes Procurement (getting staff), Development (training them), Compensation (paying them), Retention (keeping them), Integration (making them feel part of the team), and Maintenance (looking after their well-being).
In simple words: HRM managers plan, organize, direct, and control people. They also handle getting, developing, paying, and keeping employees.

🎯 Exam Tip: For managerial functions, remember the core management processes: Planning, Organizing, Directing, and Controlling. For operative functions, think about the full lifecycle of an employee within an organization.

III. Short Answer Questions.

 

Question 1. Define the term Human Resource Management.
Answer: E.F.L. Brech defined Human Resource Management (HRM) as "that part of management process which is primarily concerned with the human constituents of an organisation". This means HRM is the area of management focused on the people who make up an organization. Its goal is to maximize employee performance.
In simple words: HRM is the part of management that focuses on managing the people in an organization, as defined by E.F.L. Brech.

🎯 Exam Tip: When defining a term, especially if a specific author is cited, ensure you reproduce the definition accurately and attribute it correctly. Adding a short explanation of what the definition means helps score full marks.

 

Question 2. What are the characteristics of Human resources? [OWE] [MOM]
Answer: Here are several characteristics of Human Resources:
1. Human resources can innovate and be creative, unlike machines.
2. Only human resources can think, act, analyze, and understand things.
3. Human resources are emotional beings, meaning their feelings affect their work.
4. People can be motivated using money or other non-financial rewards.
5. How human resources will behave is often hard to predict.
6. Over time, human resources gain more value and experience.
7. Human resources are movable, meaning employees can move between jobs or locations.
8. Human resources can work together as a team to achieve common goals effectively.
In simple words: Human resources are unique because they are creative, can think, have emotions, can be motivated, and grow in value over time. They are also movable and can work in teams.

🎯 Exam Tip: When asked for characteristics, provide a diverse set of points that highlight the multi-faceted nature of human resources, distinguishing them from other organizational assets. Remember to mention their emotional and unpredictable aspects.

 

Question 3. What is the significance of Human resource?
Answer: Human resources are very important for many reasons:
* HR can only be managed well through good human relationships within the organization.
* HR managers oversee and coordinate all other factors of production, like land and capital.
* Human resources can be used at all different levels of management, from top to bottom.
* HR helps to make the best use of all other resources available to the company.
* HR plays a key role in maintaining good relationships between workers and management in the industry.
* HR is protected by laws and regulations, ensuring fair treatment and rights for employees. This legal protection helps create a stable work environment.
In simple words: Human resources are important because they enable good relations, manage other resources, work at all levels, improve industrial relations, and are protected by law.

🎯 Exam Tip: Focus on how human resources enable and manage other aspects of a business, as well as their unique value proposition, such as their protected legal status.

 

Question 4. State the functions of Human Resource Management.
Answer: The functions of human resource management are usually divided into two main categories:
**I. Managerial Functions – Planning, Organising, Directing, Controlling.**
1. **Planning:** This means deciding what to do, how to do it, and who will do it, all in advance. It connects where we are now to where we want to be.
2. **Organising:** This involves dividing work among employees, giving each person their duties, and delegating authority as needed.
3. **Procurement:** This function includes job analysis, planning for human resources, recruitment, selecting, placing, transferring, and promoting employees.
4. **Development:** This covers performance reviews, training, developing executives, career planning, and overall organizational growth.
5. **Compensation:** This deals with deciding job value, managing wages and salaries, giving incentives, bonuses, and providing fringe benefits and social security schemes. Fair compensation motivates employees.
**II. Operative Functions – Procurement, Development, Compensation, Retention, Integration, Maintenance.**
In simple words: HRM involves managing people by planning, organizing, directing, and controlling. It also includes practical steps like finding, developing, paying, and keeping employees.

🎯 Exam Tip: Clearly distinguish between managerial and operative functions. For each function, provide a concise explanation of its main activities. Using bullet points or numbered lists enhances readability.

IV. Long Answer Questions.

 

Question 1. Explain the characteristics of Human Resource. [OWE] [MOM] [LACE] (any 5) Characteristics
Answer: Human Resources have several key characteristics that make them unique and vital to an organization:
* **Living Factor of Production:** HR is the only factor of production (unlike machines or materials) that is alive, can think, and has feelings.
* **Teamwork Capability:** HR can work together effectively as a team, combining their skills and efforts to achieve shared goals.
* **Innovation and Creativity:** HR exhibits the ability to innovate and be creative, solving problems and developing new ideas.
* **Movable:** HR is movable, meaning employees can change jobs, locations, or even industries. This mobility offers flexibility but also presents challenges in retention.
* **Gain Values Over Time:** Unlike physical assets that depreciate, human resources can gain value over years through experience, learning, and skill development.
* **Motivated by Cash or Kind:** HR can be motivated by both financial rewards (like salary and bonuses) and non-financial incentives (like recognition and good working conditions). This flexibility in motivation is crucial for engagement.
* **Labour vs. Employee:** HR refers to the labor or work performed by employees, rather than the employee themselves as a fixed asset. It's about their contribution.
* **Act, Analyze, Think, Interpret:** Only HR can perform complex cognitive tasks such as acting, analyzing situations, thinking critically, and interpreting information.
* **Creator of Other Resources:** HR helps create and manage all other resources (like financial and physical assets) within an organization.
* **Emotional Beings:** HR consists of emotional beings, whose feelings, attitudes, and moods can significantly impact their performance and workplace environment.
In simple words: Human resources are unique because they are living, thinking, emotional beings who can work in teams, be creative, and gain value. They can be motivated in many ways and are essential for managing all other company resources.

🎯 Exam Tip: When explaining characteristics, aim to provide a brief, clear explanation for each point. Highlight the distinctions between human resources and other organizational assets to show a deeper understanding.

 

Question 2. Describe the significance of Human Resource Management. (MEERA) (JCE) (any 5)
Answer: Human Resource Management (HRM) is very important because it helps an organization manage its employees effectively. Its significance lies in the following areas:
1. **Identify Manpower Needs:** HRM helps determine how many people and what kind of skills an organization needs. This is like an investment, ensuring the right number of people are available.
2. **Ensure Correct Manpower Requirements:** HRM makes sure the organization never has too few or too many employees. It achieves the right balance through proper planning.
3. **Select the Right Person for the Right Job:** HRM ensures that the most suitable person with the right skills and experience is chosen for each job role. This improves efficiency.
4. **Update Skill and Knowledge:** HRM provides training and development programs to help employees keep their skills and knowledge current. This keeps the workforce competitive.
5. **Appraise Employee Performance:** HRM regularly checks how well employees are performing. This appraisal system encourages good performers and helps motivate those who need to improve. It also gives feedback to employees.
In simple words: HRM is important for finding the right number of skilled people, hiring them for suitable jobs, training them to stay updated, and checking their performance to keep everyone motivated and the company successful.

🎯 Exam Tip: Focus on the benefits HRM brings to both employees and the organization. Connect each point to a clear outcome, such as "reducing turnover" or "improving efficiency."

 

Question 3. Elaborate on the Managerial functions of Human Resource Management.
Answer: The managerial functions of Human Resource Management are essential for effectively guiding and overseeing human resources within an organization. They include Planning, Organising, Directing, and Controlling.
**Controlling:**
* This function involves comparing actual activities with planned standards to see if things are going as expected. If there are differences, actions are taken to correct them.
* The control process includes setting standards, measuring how well people are performing, comparing actual performance with the set standards, and then making necessary changes.
* Controlling is done through observing employees, supervising their work, looking at reports, checking records, and conducting audits.
**Organising:**
* This means dividing work among employees and giving each person specific duties to do.
* It also involves giving authority to people as needed and making sure everyone is responsible and accountable for their tasks.
**Planning:**
* Planning means thinking ahead about what needs to be done. It's about deciding what, how, and who will do a task.
* It helps bridge the gap between where the organization is now and where it wants to go in the future.
* Planning includes setting goals, making policies, creating procedures, establishing rules, developing strategies, planning programs, and setting budgets.
**Directing:**
* This involves giving orders and instructions, along with supervising, guiding, and motivating employees. The goal is to get the best work out of them.
* Directing helps reduce wasted time, energy, and money, leading to earlier achievement of organizational goals. It aligns individual efforts with company objectives.
In simple words: Managerial HRM functions are about setting goals, arranging tasks, guiding employees, and checking if everything is going to plan. This helps ensure resources are used well and goals are met.

🎯 Exam Tip: Break down each managerial function (Planning, Organizing, Directing, Controlling) and explain its core activities relevant to HRM. Providing bullet points for sub-points helps clarify the explanation.

 

Question 4. Discuss the Operative functions HRM.
Answer: Operative functions of HRM are the daily activities and services carried out to manage employees effectively. These include:
1. **Procurement:** This involves all activities to acquire human resources, such as job analysis, human resource planning, recruitment, selection, placement, and promotion of employees.
2. **Development:** This function includes assessing performance, training new and existing employees, developing executives, planning career paths, and fostering overall organizational growth.
3. **Compensation:** This deals with fair payment for employees. It involves job evaluation, wage and salary administration, incentives, bonuses, and providing benefits and social security.
4. **Retention:** This function aims to keep valuable employees within the organization. It focuses on health and safety, social security, ensuring job satisfaction, and improving the quality of work life.
5. **Maintenance:** This encourages employees to work with satisfaction by reducing labor turnover. It aims to maintain a positive and productive work environment for human resources. This includes welfare activities and employee services.
In simple words: Operative HRM functions are practical tasks like finding and hiring staff, training them, paying them fairly, keeping them happy, and making sure they stay with the company.

🎯 Exam Tip: Clearly define each operative function and provide specific examples of the activities involved. This demonstrates a practical understanding of how HRM operates daily.

12th Commerce Guide Human Resource Management Additional Important Questions and Answers

I. Choose the correct answer.

 

Question 1. .......... create all other resources.
(a) Skill
(b) workforce
(c) Natural resources
(d) Human resource
Answer: (d) Human resource
In simple words: Human resources are the people who use their skills and efforts to create and manage all other types of resources in a business.

🎯 Exam Tip: Remember that human resources are unique because they are active agents that can manage, create, and optimize other resources, unlike passive resources like capital or raw materials.

 

Question 2. The function of HRM concerned with ..........
(a) Motivating
(b) Maintaining
(c) Hiring
(d) All of the options
Answer: (d) All of the options
In simple words: Human Resource Management deals with many things, including motivating, maintaining, and hiring employees. It covers all these aspects.

🎯 Exam Tip: When evaluating MCQ options, if multiple options seem correct individually, consider if there's a broader choice like "All of the options" that encompasses them all.

 

Question 3. How to encourage the best performer in an organisation?
(a) Bonus
(b) incentives
(c) Both (a) and (b)
(d) NOTA
Answer: (c) Both (a) and (b)
In simple words: To encourage top performers, organizations can give them extra money (bonuses) and offer special rewards or recognition (incentives). Both methods work well.

🎯 Exam Tip: Highlighting both financial (bonus) and non-financial (incentives) rewards covers a comprehensive approach to employee motivation, which is a core HRM concept.

 

Question 4. Human Resource Exbhits ..........
(a) Talent
(b) Creativity
(c) Innovation
(d) All of the options
Answer: (d) All of the options
In simple words: Human resources show talent, creativity, and innovation. These qualities are unique to people and help a business grow.

🎯 Exam Tip: Recognize that human resources are the source of intellectual capital – talent, creativity, and innovation – which are crucial for organizational progress and problem-solving.

 

Question 5. Who are inevitable for the survival and success of the enterprise?
(a) Employee
(b) Proprietors
(c) Debtors
(d) Creditors
Answer: (a) Employee
In simple words: Employees are absolutely essential for a business to operate and succeed. Without them, tasks cannot be performed.

🎯 Exam Tip: Understand that while proprietors provide ownership and capital, and debtors/creditors are involved in finance, it is the employees who carry out the day-to-day operations and directly contribute to survival and growth.

 

Question 6. HR is ..........
(a) Im-morable
(b) In-tangble
(c) Movable
(d) NOTA
Answer: (c) Movable
In simple words: Human resources are movable because employees can move from one job to another or one location to another.

🎯 Exam Tip: The movability of HR is a key characteristic that distinguishes it from fixed assets and influences decisions related to recruitment, retention, and workforce planning.

II. Match the following

 

Question 1. Match List I with List – II

Answer: (i) 4,(ii) 1,(iii) 2,(iv) 3
In simple words: HR refers to employers, HRM focuses on hiring the right person, operative functions include integrating new employees, and managerial functions involve planning.

🎯 Exam Tip: For matching questions, connect each item in List I to its most appropriate description or related concept in List II. Understand the core meaning of each term to make correct associations.

III. Very short answer questions.

 

Question 1. Define the term Human Resource.
Answer: Human Resource can be defined as "Man of all sources available to him, can grow and develop". This means that people are the only resources that can think, learn, improve, and contribute to their own growth and the growth of an organization. They are dynamic and possess the potential for development.
In simple words: Human resource means people who have the ability to grow and develop themselves using all their available capabilities.

🎯 Exam Tip: When defining Human Resource, emphasize the unique aspect of human capacity for growth and development, distinguishing it from other static resources.

 

Question 2. Give two points of difference between HR and HRM .[MO]
Answer: Here are two points of difference between HR (Human Resource) and HRM (Human Resource Management):

In simple words: HR is about the people and how they are motivated, while HRM is about the overall management process to meet company goals and satisfy both employers and employees.

🎯 Exam Tip: When differentiating, choose clear, distinct points. HR refers to the people themselves, while HRM refers to the strategic function of managing those people for organizational objectives.

IV. Long Answer Questions.

 

Question 1. Explain the features of HRM? [CUGAI]
Answer: Human Resource Management (HRM) has several important features that define its nature and scope:
**Continuous Process:** HRM is an ongoing process. As long as human resources exist and are needed in an organization, the activities related to managing them will continue. It's not a one-time task but a constant effort to develop and maintain the workforce.
**Universal Relevance:** HRM is important for all types of organizations, regardless of their size, industry, or location. Its methods might change depending on the organization's structure, but the core principles apply at every level.
**Goal Oriented:** HRM focuses on helping the organization achieve its goals. It does this by making sure human resources are used in the best possible way, aligning employee efforts with company objectives.
**A Systematic Approach:** HRM uses a systematic way to manage tasks performed by human resources. This means it follows structured procedures and policies for all its functions, from hiring to training and development.
**Intangible:** HRM is largely an intangible function, meaning its direct outcomes are not physical products but are measured by results like employee satisfaction, productivity, and reduced turnover. Its impact is felt through the performance of people.
In simple words: HRM is an ongoing and important process for all organizations. It uses a structured approach to manage people, focusing on reaching company goals and improving performance, even though its results are often not physical things.

🎯 Exam Tip: Ensure you explain each feature clearly, linking it back to the overall purpose of HRM. Using distinct headings for each feature can improve clarity and organization of your answer.

 

Question 2. Differentiate HR from HRM.[MOPET]
Answer: Here's a differentiation between HR (Human Resource) and HRM (Human Resource Management):

In simple words: HR refers to the employees themselves, who can be motivated and are crucial for production and thinking. HRM, on the other hand, is the management system that sets policies, achieves goals for both employers and employees, applies universally, and focuses on employee development and strategy.

🎯 Exam Tip: Use a clear table format to present differences, ensuring that each point of comparison distinctly highlights how HR (the resource) differs from HRM (the management function). Focus on core aspects like definition, scope, and objectives.

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