training and development notes for mba students

hr slides

1. WELCOME MODULE – 4 Part-B Development of Human Resources Training & Development 1

2. Training & Development Training v/s development Training v/s Education Systematic Approach to Training Training Methods Executive Development Methods and Development of Management Development Career and Succession Planning 2 Synopsis – Module 4 Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 50

3. According to Dale S.Beach defines the training as “The organized procedure by which people learn knowledge and/or skill for a definite purpose.” According to Edward B. Flippo , “Training is the act of increasing the knowledge and skill of an employee for doing a particular job.” Training is the process of planned programs and procedures undertaken for the improvement of employee’s performance in terms of his attitude, skills, knowledge and behavior. Training is the act of increasing the knowledge and skill of an employee for doing a particular job. Training is the short term educational process and utilizing a systematic and organized procedure by which employees learn technical knowledge and skills for a definite purpose. 3 Training

4. 4 Difference b/w Training & Development TRAINING DEVELOPMENT Training is designed for non-managers as well as managers It involves only managerial personnel It is a short term process Long term in nature Managerial personnel learn technical knowledge and skills Managerial personnel learn conceptual and theoretical knowledge The objectives of training are specific job-related purpose The objective s have broader over view and consider general knowledge Training is concerned with the immediate improvement of the employee i.e the ways to make the employee more effective in his current role Development is a process to make the employee efficient enough to handle critical situation in the future, i.e how well he can equip himself for the future demands Training means learning new things and refreshing old one Development means implementing the learned session and finding new ones

5. 5 Difference b/w Training v/s Development BASIS FOR COMPARISON TRAINING DEVELOPMENT Meaning Training is an learning process in which employees get an opportunity to develop skills, competency and knowledge as per the job requirements. Development is an educational process which is concerned with overall growth of the employees Term Short term Long term Focus on Present Future Orientation Job oriented Career oriented Motive Trainer Self Objective To improve the work performance of the employees To prepare employees for future challenges Number of individuals Many Only one Aim Specific job related Conceptual and general knowledge

6. 6 Difference b/w Training v/s Education BASIS FOR COMPARISON TRAINING EDUCATION Meaning The process of uncalculating specific skills in a person is training Theoretical learning in the class room or any institution in education What is it? It is a method of skill development It is a typical form of learning Based on Practical application Theoretical orientation Perspective Narrow Wide Involves Job experience Classroom learning Term Short term Comparatively long term Prepare for Present job Future job Objective To improve performance and productivity To develop a sense of reasoning and judgment Teaches Specific task General concepts

7. A systematic approach to training ensure than an organizations course development efforts produce consistent results. This includes using a structured approach of analyzing needs, designing class outlines, developing course content and materials, delivering instruction and evaluating success. Ensuring that training courses meet the real needs of the target audience requires comprehensive planning and organization. Aligning learning objectives to a companies strategic goals enables employees to undergo training that improves their job performance and produces a positive business impact. SAT is methodology for managing training programs. It is orderly, logical approach to determining what people must know and do at a particular job or a specific profession. Systematic approach for training ensures that people are prepared for their work by having the necessary knowledge, skills and attitudes to do their job. 7 Systematic c Approach to Training(SAT)

8. Advantages of SAT SAT is accountable because it is measured SAT provides continual feedback as the results of training are evaluated SAT supports teamwork SAT is performance based training intended to improve worker performance and measures success on the basis of improved personnel and plant performance 8

9. 9 5 phases of SAT process

10. According to Dale S.Beach defines the training as “The organized procedure by which people learn knowledge and/or skill for a definite purpose.” According to Edward B. Flippo , “Training is the act of increasing the knowledge and skill of an employee for doing a particular job.” Training is the process of planned programs and procedures undertaken for the improvement of employee’s performance in terms of his attitude, skills, knowledge and behavior. Training is the act of increasing the knowledge and skill of an employee for doing a particular job. Training is the short term educational process and utilizing a systematic and organized procedure by which employees learn technical knowledge and skills for a definite purpose. 10 Training

11. NEED FOR TRAINING To meet the employee specifications with the job requirements and organizational needs. Organizational viability and the transformation process Technological advances Organizational complexity Human relations Change in the job assignment 11 Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 156

12. 12 TRAINING METHODS On-the job methods Off-the job methods Job Rotation Coaching Job Instruction Training through step-by-step Committee Assignments Vestibule Training Role Playing Lecture Methods Conference or Discussion Programmed Instruction Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 159

13. 13 Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 162 THE TRAINING PROCEDURE

14. 14 Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 163 TRAINING PROCEDURE FOR UNDERSTANDING PURPOSE

15. Development is the process of preparing employees for future position and improve their personal skills to handle the critical situations in an organization. Development is generally aimed at helping manager better understand and solve problems, make decision, and capitalize on opportunities. Effort made to improve employees ability to handle a variety of assignment. According to Armstrong “ Management development is the business led process. The business determines what kind of mangers it require to accomplish its strategic goals as well as how to obtain and develop such managers. Although there is stress of self-development, the business must indicate the directions towards which self-development should occur.” According to Molander “Management development is a conscious and systematic process to control the development of managerial resources in the organization for the achievement of goals and strategies.” 15 Management Development

16. 16 Important Method of Management Development On-the-job Techniques Off-the-job Techniques Coaching Job Rotation Under Study Multiple Management The Case Study Method Incident Method Role Playing In Basket Method Business Game Sensitivity Training Simulation Grid Training Conferences Lectures Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 172

17. According to Schermerborn , Hunt, and Osborn, “Career Planning is a process of systematically matching career goals and individual capabilities with opportunities for their fulfillment.” Meaning: A career planning is a step wise process which enables an individual to focus on where to want to be in life professionally. With the short-term goal and the long-term goals in place. Career planning is one of the benefits of career development which aims at the development system of the employee. This helps in the guidance and assistance of aspirations, desires and the objectives of the growth. It has more goals that are to be accomplished. It triggers communication between employee and manager. 17 Career planning

18. NEED FOR CAREER PLANNING To attract competent persons and to retain them in the organization. To provide suitable promotional opportunities. To enable the employees to develop and make them ready to meet future challenges. To increase the utilization of managerial reserves within an organization. To correct employee placement. To reduce employee dissatisfaction and turnover. To improve motivation and morale. 18 Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 179

19. PROCESS OF CAREER PLANNING AND DEVELOPMENT Steps and career planning and development include:- Analysis of individual skills, knowledge, abilities, aptitudes etc. Analysis of career opportunities both within and outside the organization. Analysis of career demands on the incumbent in terms of skills, knowledge, abilities, aptitude etc. and in terms of qualifications, experience and training received etc. Relating specific jobs to different career opportunities. Establishing realistic goals both short-term and long-term. Formulating career strategy covering areas of change and adjustment. Preparing and implementing action plan including acquiring resources for achieving goals. 19 Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 179

20. STEPS INVOLVED IN ESTABLISHING A CAREER DEVELOPMENT SYSTEM Needs (Training programme ) Vision(Career, interventions) Action plan (Management) Results (Evaluate) CAREER DEVELOPMENT ACTIONS Job performance Exposure Resignation Change the job Career guidance 20 Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 180

21. According to William J.Rothwell , “Succession planning is a means of identifying critical management positions starting at manager and supervisor levels and extending up to the highest position in the organization.” Succession planning can be defined as a purposeful and systematic effort made by an organization to ensure leadership continuity, retain and develop knowledge and intellectual capital for the future and encourage individual employee growth and development. The process of identity and develop potential future leaders or senior managers, as well as individuals to fill other positions critical to an organization, either in the short or the long-term “A defined program that an organization systematized to ensure leadership continuity for all key positions by developing activities that will build personnel talent from within.” 21 Succession planning

22. Reasons for succession planning Identify highly talented individuals Promoting employee development Refining corporate planning Establishing the talent pool 22 Factors affecting succession planning Economic factors Organization size Organization location Stability Type of business/service Additiona l workload requirements Diversification of work Technology Fewer resources Competition Global market Changing views Source: Slide share - https://www.slideshare.net/immortalsam/succession-planning-4822047

23. Performance Appraisal & Compensation Performance Appraisal Concept of Performance Appraisal The Performance Appraisal Process Methods of performance Appraisal Essential Characteristic of an Effective Appraisal System. Compensation Objectives of compensation Planning Job Evaluation Compensation Pay Structure in India Wage and Salary Administration Factors Influencing Compensation Levels Executive Compensation 23 Part-C Motivation of Human Resources

24. According to Edwin B Flippo , “Performance appraisal is a systematic, periodic and so far as humanly possible, an impartial rating of an employee’s excellence in matters pertaining to his present job and to his potentialities for a better job.” According to Dale Beach, “Performance appraisal is the systematic evaluation of the individual with regards to his or her performance on the job and his potential for development.” Meaning: Performance appraisal means evaluating an employees current and/or past performance in comparison with the set of standards. Performance appraisal is the systematic evaluation of the performance of the employees and to understand the abilities of a person for future growth and development. 24 Concept of performance appraisal

25. 25 Methods of performance appraisal Traditional Methods Modern Methods Graphic Rating Scale Ranking Method Paired Comparison Method Forced Distribution Method Checklist Method Simple Checklist Weighted Checklist Forced Choice Method 6. Critical Incident Method 7. Essay or Free From Appraisal 8. Group Appraisal 9. Confidential Reports Behaviorally Anchored Rating Scales Assessment Centre Human Resource Accounting MBO Psychological Appraisals Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 139

26. 26 CONTINUOUS RATING SCALE DISCONTINUOUS RATING SCALE RANKING METHOD PAIRED COMPARISON METHOD = N(N-1)/2 =4 (4-1)/2 =4(3)/2 =6 Graphic rating scales is also called as linear rating scale or simple rating scale

27. 27 FORECED DISTRIBUTION METHOD WEIGHTED CHECKLIST METHOD SIMPLE CHECKLIST METHOD FORCED CHOICE METHOD

28. 28 CRITICAL INCIDENT METHOD MODEL OF RECORDING CIM FOR BANK OFFFICER

29. 29 BARS (BEHAVIOURALLY RATING SCALES) STEP 1 – Collect Critical Incidents STEP 2 – Identify Performance Dimension STEP 3 – Reclassification of Incidents STEP 4 – Assigning Scales Values to the Incidents STEP 5 – Producing the Final Instrument ASSESSMENT CENTRE In basket method Role playing Case study Stimulation Exercise

30. 30 HUMAN RESOURCE ACCOUNTING M A N A G E R I A L A P P R A I S A L ?

31. 31 Performance Appraisal Process Objectives of Performance Appraisal Establish Job Expectations Design an Appraisal Programme Appraise Performance Performance Interview Archive Appraisal Data Use Appraisal Data for Appropriate Purpose Performance Management Source: “Personnel & Human Resource Management” Book by K.Aswathappa-PgNo 243

32. 32 3. Design Appraisal Programme Who are raters? *Immediate supervisors *Subordinates *Clients *Rating Committees *Self-Appraisal Problems of rating? *Leniency or Severity *Central tendency *Halo error *Rater effect *Primacy & Recency effects *Perceptual set *Performance Dimension order *Spillover effect *Status effect What should be rated? *Quality *Quantity *Timeliness *Cost effectiveness *Need for supervision *Interpersonal impact *Community service Time of evaluation

33. Objective of Appraisal Establish Job Expectations Design Appraisal Programme Formal vs Informal appraisal Whose Performance should be rated? Who are the Raters? Immediate Supervisor Subordinates Clients 360* Degree appraisal Rating committees Self-appraisal Problem of rating Leniency or Severity Central Tendency Halo Error 33 Rater effect Primacy and Recency Effects Perceptual Set Performance Dimension Order Spillover Effect Status Effect Solving Rater’s Problems What should be Rated? Quality Quantity Timeliness Cost effectiveness Need of supervision Interpersonal impact Community service Timing of evaluation Methods of appraisal

34. POST-ORIENTED METHODS Rating scales Checklist Forced choice method Forced distribution method Critical incident method Behaviorally Anchor Rating Scales Field review method Performance tests & observations Confidential records Essay method Cost accounting method Comparative evaluation method Ranking method Paired comparison method 34 FUTURE ORIENTED APPRAISALS Management by Objectives Psychological appraisals Assessment centres 360-Degree feedback Appraise the performance Performance Management Archiving performance data Use of appraisal data

35. Clear objective Reliable and valid Standardization Training Job relatedness Mutual trust Feedback and participation Help focus Recognition and differences Post appraisal interview 35 Essential characteristic of an effective appraisal system Source: HRM Notes

36. According to Dale Yoder. “Compensation is paying people for work.” According to Edwin B Flippo , “The function of compensation is defined as the adequate and equitable remuneration of personnel for their contributions to the organizational objectives.” Meaning: Compensation means what the employees receive in exchange for their work. It is the monetary plus non-monetary return paid to employees for the work done by them. Remuneration: Reward for employment in the form of pay, salary or wage, including allowances, benefits (such as company car, medical plan, pension plan), bonuses, cash incentives, and monetary value of the non cash incentives. Salary is a type of remuneration, but salary of the employee is fixed amount of money that is given to an employee on a monthly basis. 36 Compensation

37. 37 COMPENSATION REMUNERATION Compensation is paid to employee in case of death of employee, physical injury or mental suffered. Remuneration is paid to employee for the work done in the organization. Payment of the compensation is compulsory only in case of death of employee, injury or mental suffered. Remuneration is paid periodically to the employee on daily, weekly, monthly basis for the work done. There is separate and dedicated law for the payment of compensation There is separate and dedicated law for the payment of remuneration Payment of the compensation to employee is depended on the gravity of the injury he suffered but not according to the job position or job grade. Remuneration of the employee depends on the position of the job or grade of the job with respect to organization hierarchy. Payment of the compensation is one time settlement or for a certain period of time until employee recovers from suffering. Payment of the remuneration is paid as long as employee work for the organization starting from appointment to retirement Payment of the compensation varies from injury to injury suffered by employee. Payment of the remuneration varies from job to job position held by the employee. Payment of compensation provisions is same for all employees. Payment of remuneration provisions is different from job to job. Generally payment of the compensation depends and varies from age of the employees. Payment of remuneration of the employee depends and varies from job title, job position or job experience. There is no other name for the word employee compensation. Other names for employee remuneration are wages or salaries.

38. OBJECTIVES OF COMPENSATION MANAGEMENT Acquire qualified personnel Retain present employees Ensure equity Reward and desired behavior Control costs Comply with legal regulations Facilitate understanding Further administration efficiency 38 Objectives of compensation Planning Source: “Personnel & Human Resource Management” Book by Biswajeet Pattanayak-PgNo 260

39. 39 Compensation Pay Structure in India

40. According to Wendell L. French defined job evaluation as, “A process of determining the relative worth of the various jobs within the organization, so that different wages may be paid to jobs of different worth.” The International Labour Organization defined job evaluation as “As attempt to determine and compare demands which the normal performance of a particular job makes on normal workers without taking in to account the individual abilities or performance of the workers concerned.” British Institute of Management(1970) defined job evaluation as, “The process of analyzing and assessing the content of jobs, in order to place them in an acceptable rank order which can be used as a basis for remuneration system. Job evaluation, therefore, is simply a technique designed to assist in the development of new pay structures by defining relatives between jobs on consistent and systematic basis.” 40 Job Evaluation Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 214

41. OBJECTIVES OF JOB EVALUATION To gather data and information relating to job description, job specification and employees specification of various jobs in an organization. To compare the duties, responsibilities and demands of a job with that of other jobs. To determine the hierarchy and place of various jobs in an organization. To determine the ranks or grades of various jobs. To ensure fair and equitable wages on the basis of relative worth or value of jobs. In other words, equal wages are fixed to the jobs of equal worth or value. To minimize wages discrimination based on sex, age, caste, region, religion etc. 41 Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 214

42. Indian Institute of Personal Management has evolved the following steps for evaluating jobs: Analyze and prepare job description Select and prepare a job evaluation plan Classify jobs Install the programme Maintain the programme 42 Procedure for job evaluation Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 214

43. 43 Types of Evaluation Methods /Technique Quantitative Non-Quantitative Points Rating Method Factors Comparison Method Ranking Method Job Classification & Grading Method Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 215

44. Points Rating Method Form a committee representing various departments. Selecting a sample of jobs and preparing job description, job specification and employee specifications. Selecting and defining those factors which are related to all jobs and are considered to be most critical in determining the relative degree of difficulty and responsibility between jobs. Like skill, effort, responsibility and job conditions. Determining the weight of each factor according to its relative importance. Assigning total value of 100%. Testing the mechanism: Get the total points with the help of the discussed methods for a few sample jobs and compare them with the results obtained through other methods, proceed further, if the system produces acceptable results. Appraise all the job and arrive at a composite numerical value for each job. Price the points in order to arrive at the wage level and establish a wage structure with the help of organizational hierarchy of jobs & salary policy. 44 Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 214

45. 45 Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 214 100 200 300 400 500 TOTAL= TREND LINE THROUGH A SCATTER OF POINTS RELATIONSHIP B/W PAYLEVEL & JOB GRADES

46. The point factor or Factor Comparison Method 1 st step – Developing job description, job specification or job requirements covering physical requirements, mental requirements, skill requirements, training and experience, responsibility and authority, working conditions etc. 2 nd step – selecting a number of key jobs 3 rd step – Ranking of key jobs 4 th step – valuing the sub-factors of each of the jobs 5 th step – integrating the monetary value of sub-factors arrived through factor evaluation with those of ranking of factors. 6 th step – comparing all the jobs (factor by factor) of the same grade or level. 46 Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 214

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48. Ranking method Simple ranking Ranking the key jobs Paired comparison Single factor ranking method Job classification and grading methods Determine the shape and size of organizational structure. Preparation of job descriptions Preparation of grade descriptions based on various components Establishment of a number of job grades and division of the organization into various grades. 48 Source: “Personnel & Human Resource Management” Book by P.Subba Rao-PgNo 214 Discussion and negotiation with trade unions representatives regarding the number of grades. Selection of key jobs and grading them. Grading the entire jobs Classifying the jobs of each grade and Assigning the money value to the key grades first and then to all other grades.

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