Hi Geeta (and friends),
Answering interview questions is an art/science in itself. One should not just answer in a mechanical fashion but explain the answer and bring it to a satisfactory conclusion so that there are no supplementary questions (unless one desires - by way of strategy - to have more supplementary questions).
If you are looking for more responses, then here is mine:
1 - If you are so good, why are you paid so little?
I had actually been asked this question. There are no standard answers. In my case, the answer was,
"I come from (name of the PSU); and as you are aware, in PSUs the salary is lesser than in the private sector, but there are other significant perks. First is the job security (this must have made them feel uneasy); then we have medical benefits for the whole family including parents, and there is no limit to medical treatment costs even if the patient is a terminal case (this made them feel inadequate); then we have housing facilities, as such the HRA component is not there; subsidized electricity, LTC even for parents; club facilities, and so many other perks. So, the salary is less in terms of the monetary component.
When I joined the private sector, my existing salary was benchmarked erroneously for proposing my CTC. And this has continued.
2 - Why do you think you should get a 40% hike?
Naturally, to correct this imbalance. Well, I have other reasons as well. Normally, a job change involves a hike of xx - xx%. Moreover, I have been rated very highly in my appraisals, and I am expecting at least a 20 - 30% increment. [This is to show off your performance].
Moreover, as an HR professional, I keep tabs on the compensation packages at various levels in various industries. You must be aware that Mercer's findings say that this year there has been xx% [this is before the recession] increase in salaries across all sectors. [This is to showcase your understanding of Compensation management and salary administration as an HR professional].
Looking into all these factors, I don't think a 40% hike is unreasonable.
3 - Coming from a small company, how do you justify your role in this (big) company, what value addition will you make, and within how much time? (This question is specific to HR pros)
Already answered well by Ash. I would just like to add:
"A small company enables an HR person to perform hands-on, end-to-end HR tasks himself. So this has enabled me to excel across all spectrums of HR management. Good HR practices can be implemented across all sizes of organizations. I intend to implement all the best practices that I have fine-tuned in my company. And human beings are the same; it's only that in a big organization, the number increases.
If you go on long enough, the interviewer will forget the latter part of the question; 'what value addition you will do and within how much time.' In any case, at this stage, one should not commit to anything because one hardly knows much about the company. If you commit to anything, then the interviewer will remember it, and it becomes your task and target.
4 - What exactly do you think companies look for while hiring an HR professional?
This is one of those questions that can be best answered through bookish knowledge. Just speak whatever you remember from Strategic HRM - Introduction and Chapter 1 - that answers the question - 'Why Strategic HRM?'
5 - If we don't like your performance in 2 months, we may ask you to resign, how smooth can your exit be?
Say firmly and with conviction: Such possibilities are remote. But sure, I must assure you, Sir, that should you feel like that, then you won't have to take much trouble; Just let me know, and I would myself not like to stay if I find myself unable to make any substantial contribution.
Do give me your feedback.
Regards.