trainingand development meaning and importance

meaning, objectives and importance of training and development in management

1. Unit- III Training and Development

2. Unit- III Topics to be covered….. Training: Need, process, importance, aligning training with organization’s strategy, training methods- on the job and off the job, organizational development, evaluation of training program, emerging issue in training Executive development: Meaning, Importance, Steps, Methods Performance appraisal: Meaning, importance, steps, tools- graphic rating scale, alternate ranking method, paired comparison, forced distribution, critical incident, BARS, MBO, 360 degrees. Problems in performance appraisal

3. Unit- III Compensation: Steps of determining compensation, components of pay structure, factors influencing compensation levels, wage differentials & incentives, profit sharing, gain sharing, employees’ stock option plans. Brief introduction of social security, health, retirement & other benefits.

4. Training Training is a systematic process through which an organization’s human resources gain knowledge and develop skills by instruction and practical activities that result in improved corporate performance. Training enables an employee to do his present job more efficiently and prepare himself for a higher level job. Training is expensive………Without training it is more expensive

5. Need of Training Training is needed to serve the following purpose: 1) Newly recruited employees require training so as to perform their tasks effectively. Instructions guidance and coaching help them to handle jobs competently without any wastage. 2) Training is necessary to prepare existing employees for higher level jobs (promotion) 3) Existing employees require refresher training so as to keep abreast of the latest development in job operations. In the face of rapid technological changes, this is an absolute necessity. 4) Training is necessary when a person moves from one job to another ( transfer ).

6. Need of Training 5) Training is necessary to make employees mobile and versatile . They can be placed on various jobs depending on organizational needs. 6) Training is needed to bridge the gap between what the employees has and what the job demands . Training is needed to make employees more productive and useful in the long run. 7) Training is needed for employees to gain acceptance from peers (learning a job quickly and being able to pull their weight is one of the best ways for them to gain acceptance.

7. Benefits of Training Improving Employee Pe r f or m ance Upda t i ng E m pl o y ee Skills Avoiding Managerial O b sol e sc ence Preparing for Promotion and Managerial Succession Retaining and Motivating Employee Creating an Efficient and Effective Organization Improves morale of e m pl o y ee s

8. Process of Training/A systematic approach to training

9. Importance of Training Maintains qualified products / services Achieves high service standards Provides information for new comers Refreshes memory of old employees Achieves learning about new things; technology, products / service delivery Reduces mistakes - minimizing costs Opportunity for staff to feedback / suggest improvements Improves communication & relationships - better teamwork

10. Training Methods

11. Emerging issue in training

12. Training V/S Development Item Training Development Focus Learn specific behaviours and actions, demonstrate techniques and processes Understand and interpret knowledge, expand capabilities for varied assignments Time frame Short term Long term Process Tries to improve a specific skills relating to job Aims at improving total personality of individual Goal Meet current requirement of a job Meet future challenges of the job Effectiveness measures Performance appraisal , cost benefits analysis, passing test or certification Qualified people available when needed, promotion from within possible, HR-based competitive advantage

13. Executive Development Executive development or management development is a systematic process of growth and development by which the managers develop their abilities to manage Executive Development consists of all the means by which executives learn to improve their behavior and performance. Executive development is a planned effort to improve current and future managerial performance.

14. Importance of Executive Development 1. The size and complexity of organisation , both business and non-business are increasing. Managers need to be developed to handle the problems of giant and complex organisation in the face of increasing competition. 2. The rapid rate of Technological and Social change in society requires training of managers so that they are able to cope with these changes. 3. Business and industrial leaders are increasingly recognizing their social and public responsibilities.

15. Importance of Executive Development 4. Labor management relations are becoming increasingly complex. Executives require new and better skills in union negotiation, collective bargaining and grievance redressed. 5. There is a noticeable shift from owner-managed to professionally managed enterprises. 6. Executives need education and training to understand and adjust to changes in socio-economic forces.

16. Steps in Executive Development Program

17. Methods of Management Development programmes

18. Performance Appraisal Performance Appraisals is the assessment of individual’s performance in a systematic way. It is a developmental tool used for all round development of the employee and the organization. The performance is measured against such factors as job knowledge, quality and quantity of output, initiative, leadership abilities, supervision, dependability, co-operation, judgment, versatility and health. “It is formal, structured system of measuring, evaluating job related behaviors and outcomes to discover reasons of performance and how to perform effectively in future so that employee, organization and society all benefits.”

19. Performance Appraisal

20. Importance of Performance Appraisal

21. Steps in Performance Appraisal

22. Methods of Performance Appraisal Traditional Methods Modern methods 1. Ranking Methods 1. MBO 2. Paired comparison 2. BARS 3. Grading 3. Assessment Centres 4. Forced distribution method 4. 360-degree appraisal 5. Forced choice method 5. Cost accounting method 6. Checklist method 6. Balance scorecard 7. Critical incidents method 8. Graphic scale method 9. Essay method 10. Field review method 11. Confidential report

23. Problem with Performance appraisal

24. Concept of Compensation Compensation refers to a wide range of financial and non financial rewards to employees for their services rendered to the organization.

25. Steps in designing compensation Step # 1. Determine Sales Force and Compensation Objectives: Step # 2. Determine Major Compensation Issues: Step # 3. Implement Long-Term and Short-Term Compensation Plans: Step # 4. Relate Rewards to Performance: Step # 5. Measurement of Performance: Step # 6. Appraise the Compensation Plan:

26. Types of compensation Types of Compensation is of two types Direct Compensation and Indirect Compensation. A. Direct Compensation Direct compensation refers to monetary compensation provided to employees in returns of their services to the organization. Direct Compensation: i . House Rent Allowance (HRA) ii. Dearness allowance iii. Leave Travel Allowance iv. City Compensation Allowance v. Incentives vi. Bonus vii. Special Allowance

27. Types of compensation B. Indirect Compensation Indirect compensation are refers to non-monetary compensation provided to employees in return of their services to the organization In Direct Compensation: - Leave Policy - Overtime Policy - Medical Benefits - Insurance - Leave Travel Allowances - Retirement Benefits - Holiday Homes - Flexible Timings

28. Factors influencing compensation levels

29. Wage Differentials Wage differential refers to differences in wage rates due to the location of company, hours of work, working conditions, type of product manufactured, or other factors. Are Wage Differentials Justified? Salary differentials on the basis of occupations, units and areas (when real wages are taken into account) can be justified on the basis of equal pay for equal work among workers. They are also justified in view of varying conditions of demand and supply and varied job requirements like skill, knowledge, aptitude, ability, experience etc. But the object of the Government is to minimize income inequalities and inequalities in the distribution of wealth.

30. Types of Wage differentials

31. Incentive 31

32. 32 Classification of incentive A) Monetary or Non Monetary B) Individual , group or organization-wide

33. Wage incentive plan

34. Social Security Social security is defined as the security that the society furnishes through appropriate organizations against certain risks to which its members are exposed. Social security benefits in India are provided in two major ways: 1. Social Insurance. 2. Social Assistance.

35. Type of Social Security benefits Retirement Benefits Disability Benefits Survivors Benefits Supplemental Security Income Benefits

36. Any question ??? Thank You !!!