MS-27 Wage and Salary Administration Test Paper

MBA - Master of Business Administration

Note: There are two sections A and B. Attempt any four questions from Section A. Each questions carries 15 marks. Section B is compulsory and carries 40 marks.

1. What are the management responsibilities regarding the compensation management programme? Explain with suitable examples.

2. Compare and contrast the three content theories of motivation.

3. How does minimum wage differ from need-based minimum wage? Explain with a suitable example.

4. Discuss the various methods for fixation/revision of minimum wage under the Minimum Wages Act, 1948.

5. Explain the silent features of the pension scheme. Can the gratuity be forfeited? Of so, when and to what extent.

6. What are the different methods for conducting wage surveys? Explain any two.

7. Write short notes on any three of the following:
(i) Job Assessment
(ii) Wage Incentive Plans
(iii) Tailor-made Compensation Surveys
(iv) Set off and Set on
(v) Contracting out

SECTION B

Please read the case given below and answer the questions given at the end.

M/s ABC Electronics Limited is a government undertaking and is manufacturing electronic equipment. Its manufacturing activities are carried on in the plant situated in GIDC Industrial Estate, Makarpura, Baroda, which is about 10 Km away from Baroda Railway Station. The company has got in its strength about 1200 workers. The company works in two shifts viz., First and Second. Timings of the shift are as under:

First Shift: From 7.00 a.m. to 3.00 p.m.
Second Shift: From 3.00 p.m. to 11.00 p.m.

In each shift, there are about 600 workmen. The company does not provide any transport facility to its workmen and they are required to make their own arrangement for their to and for journey. On 7th June 1986, there was heavy rain accompanied by a thunderstorm causing complete dislocation of traffic. The train started from morning 6.00 a.m. and continued practically for the whole day upto 7.00 p.m.

About 100 workmen who were residing within a radius of two-three Km of the factory reported to the factory on their own conveyance in time before the commencement of the first shift. About 200 workmen who were residing within a radius of five km of the factory reported for duties two hours late, i.e., around 9.00 a.m. About 100 workmen who were residing in scattered areas in Baroda city made all efforts to reach the factory by walking inspire of the fact that some areas of the road were flooded with keep-deep water, and inspite of dislocation of the traffic and flooding of certain areas of the road, these workmen could reach the factory around mid-day. There were in all 400 workmen who reported for duties on the day in the first shift at different timings. In the second shift which commenced from 3.00 p.m. there were hardly 100 workmen who could report for duties and rest of the workmen were absent. In the first shift, the company could carry on its manufacturing activities with 75 per cent capacity, as the attendance was fairly good. In the second shift, the company could hardly carry on its manufacturing activities, as there was a lot of absenteeism. The company has incurred a substantial loss of production.

The company decided that the workmen who came late for about two hours should be allowed for duties without any deduction of salary as a very special case and for those workmen who reported for duties around mid-day, there should be deduction of salary for four hours. The workmen who remained absent in the first as well as in second shifts should be marked absent. The company has got two registered Trade Unions viz., ABC Electronics Limited Karmachari Mandal and ABC Electronics Limited Employees' Union. Both the unions have made a strong independent representation to the management. ABC Electronics Limited Karmachari Mandal made a representation that for those workmen who came late in the first shift around mid-day, no deduction of salary made and that the company should give one day special leave on all such workmen who have not been able to attend duties in both the shifts.

ABC Electronics Limited Employees Union, on the other hand, made a demand that such workmen who attended duties at mid-day should be given half-day casual leave as a special case and there should be no deduction from the salary, and for the workmen who could not attend duties in the second shift, be marked as 'present' as a very special case. ABC Electronics Limited Karmachari Mandal having the largest membership has threatened the company that if no decision would be arrived at immediately, the union would resort to indefinite strike.

Questions:

1. If you are General Manager of the establishment, how would you deal with the workmen who attended two hours late, four hours late and those who failed to attend because of heavy rains and non-availability of public transport?
2. What would be the various steps you would take in this case?
3. Since there are two active unions in the establishment, how would you proceed in the matter?
4. As a member of the top management, how would you reach to the demand of marking absent employees as 'Present' in the second shift?