UNIT - III

EMPLOYEE TRAINING

Training is the process by which the

aptitudes, skills abilities of employees to
perform specific jobs are increased.
 Need for Training

 Job Requirements
 Technological changes

 Organizational viability

 Internal mobility
 Importance of training
 Higher productivity
 Cost reduction

 Low employee turnover

 Better organizational climate

 Reduce accidents

 High morale

 Better satisfaction

 Personal growth
 Types of Training
 Orientation Training
 Job Training

 Safety training

 Promotional training

 Refresher training

 Remedial Training
A Systematic Approach to
Training
Identify Training Needs
Present Job Desired
Performance Gap Performance

Setting Training Objectives and Policy

Designing Training Programme

Conducting the Training

Follow up and Evaluation

 Identify the Training Needs
 Organizational analysis
 Analysis of objectives
 Resource utilization analysis
 Analysis of organizational climate
 Environmental scanning
 Taskor role analysis
 Manpower Analysis
Setting Training Objectives
Designing a training Programme

 Distributethe responsibility of Training

 Selecting and Motivating the target group

 Preparing the Trainers

 Developing Training Package

 Presentation

 Performance Tryout

 Follow-up
 Conducting the Training
(Methods and techniques of
Training)

 On-the Job Training (Job Instruction Training)

 Off the Job Training
 Vestibule Training
 Apprenticeship Training
 Classroom Training
 Internship Training
Follow-up and Evaluation
 Principles of Training
 Clear Objective
 Training Policy
 Motivation
 Reinforcement
 Organized Material
 Learning Periods
 Preparing the Instructor
 Feedback
 Appropriate Techniques
 Executive Development
 Management Development includes the
process by which managers & executive
acquires not only skills and competency in
their present job but also capabilities for
future managerial task of increasing difficulty
and scope.
 Objectives of Executive
Development
 To improve the performance of managers at
all levels in their present job.
 To sustain good performance of managers
throughout their career.
 To prevent obsolescence of executives by
exposing them to the latest concept and
techniques in their respective areas of
specialization.
Process of Executive
Development
Analysis of Development Need

Appraisal of Present Managerial Talent

Inventory of Executive Man Power

Planning Individual Development Programs

Establishing Training & Development Program

Evaluating Development Program

 Methods and Techniques of
Executive Development

 On – the – Job Technique

 Off – the – Job Technique

 On – the – Job Technique
 Coaching

 Under Study
 Position Rotation

 Project Assignment

 Committees

 Multiple Management

 Selected Readings
 Off – the – Job Techniques
 Lectures
 Case Studies
 Group Discussion
 Conferences
 Role Play
 Management Games
 In Basket Exercise
 Sensitivity Training
 Program Instructions
 Principles of Executive
Development
 Top Management should accept responsibility for
executive development.
 Every Manager must accept direct responsibility for
developing the executives under his control on the
job.
 Executive developing program must be geared to
the needs of the company and individual.
 It should begin with the selection of the right man for
the executive position.
 A realistic time schedule should be there.
 Learners participation is essential.
 Feedback should be made available to the learner.
Human Resource Development

HRD is an organized learning experience

aimed at matching the organizational need
for Human Resource with the individual need
for career growth and development.
 HRD Model
Human Resource Development Plans

Individual Organizational
Development Development
Plans Plans

Knowledge, Work Culture,

Skills & Organization
Attitude Change etc

Trained & Developed Employees

Healthy Organizational Climate

Organizational Effectiveness
 HRD in Indian Industry
 Private Sectors
 L&T
 Asian Paints
 Voltas etc

 Public Sectors
 BHEL
 SBI
 Indian Oil etc
 Career Planning

Career Planning is the systematic process

by which one selects career goals and path
to these goals.
 Career Planning

and

Manpower Planning
 Career Planning
and
Succession Planning
 Succession Planning

Succession Planning is the process of

ensuring that qualified persons are available
to assume key managerial positions
whenever these fall vacant due to untimely
death, premature firing, resignations and
retirements.
 Important Terminologies

 Career Goal
 Career Path

 Career Progression

 Career Counseling

 Mentoring
Objectives of Career Planning
 To attract and retain right type of persons in
the organization
 To map out careers of employees suitable to
their abilities and willingness
 To provide guidance and encouraging
employees to fulfill their potentials
 To achieve higher productivity and
organizational development
Process of Career Planning

Identifying individual needs and aspiration

Analyzing Career opportunities

Identifying Match and Mismatch

Formulating and Implementing strategies

Reviewing Career plans

 Essentials of effective Career
Planning
 Top Management support
 Expansion

 Clear Goals

 Motivated and Hardworking Staff

 Proper Selection

 Fair Promotion Policy

 Internal Publicity

 Continuity
 Career Development

Career Development is essential for

implementing Career Plans.
Process of Career
Development
Career Need Assessment

Career Opportunities

Need-Opportunity Alignment
Individualized Techniques
Performance Appraisal
MBO
Career Counseling

Monitoring career Moves

 Case Study- 3

Rajan has been employed for six months in the

accounts section of a large textile company in Tirupur.
You have been his supervisor for the past three months.
Recently you have been asked by the management to
find out the contributions of each employee in the
accounts section and monitor carefully whether they are
meeting the standard set by you.
A few days back you have been completed your formal
investigation and with the exception of Rajan, all seems
to be meeting the targets set by you. Along with
numerous errors, Rajan’s work is characterized by low
performance-often does 20% less then other clerks in
the department.
As you look into Rajan’s performance review sheets
again, you begin to wonder whether some of the
remedial training is needed for people like him.
 Questions
1) As Rajan’s supervisor can you find out whether
poor performance is due to poor training or some
other cause?

2) If Rajan is inadequately trained, how would you

go about introducing a remedial training
programme?

3) Should you supervising him more closely? Can

you do this without making it too obvious to him
and coworkers?

4) Should you discuss the situation with Rajan?

 Performance Appraisal

Performance Appraisal is the systematic,

periodic and impartial rating of an employee’s
excellence in matters pertaining to his
present job and his potential for a better job.
- Flippo
 Potential Appraisal

 It is different from assessing the performance.

 Potential refers to the ability present but not
currently utilized.
 It is the latent capacity to discharge higher
responsibility in future roles.
 Objectives of Performance
Appraisal
 To provide feed back to employees so that they come to
know where they stand and improve their job
performance
 To provide valid database for promotions, Transfers etc
 To identify the Training needs
 To develop positive superior-subordinate relations and
thereby reduce Grievances
 To test the effectiveness of Recruitment, Selection,
Placement and Induction etc
Process of Performance Appraisal
Establishing performance Standards

Communicating standards

Measuring Performance

Comparing with Standards

Discussing Results

Taking Corrective actions

 Problems in Performance
Appraisal
 Errors in Rating
 Halo Effect
 Stereotyping
 Central Tendency
 Constant errors (Leniency Rating, Strictness Rating)
 Personal bias
 Spill over effect
 Lack of Reliability
 Incompetence
 Negative Approach
 Multiple Objectives
 Resistance
 Essentials of an effective
performance Appraisal
 Mutual Trust
 Clear Objectives

 Standardization

 Training

 Job Relatedness

 Documentation

 Individual Differences

 Post appraisal interview

 Performance Appraisal
Interview

 Tell and Sell Interview

 Tell and Listen Interview

 Problem Solving Interview

 Methods and Techniques of
Performance Appraisal

 Traditional
Methods
 Modern Methods
 Traditional Methods
 Confidential Report
 Free form of Essay
 Straight Ranking
 Paired Comparison
 Forced Distribution
 Graphic Rating scales
 Checklist Method
 Critical Incidents
 Group Appraisal
 Field Review
 Modern Methods
 Assessment centers
 Human Resource Accounting

 Behaviorally Anchored Rating Scales (BARS)

 Appraisal through MBO

 360 Degree Appraisal

Behaviorally Anchored Rating
Scales (BARS)
Steps involving in BARS Technique-

 IdentifyCritical Incidents
 Select Performance Dimensions

 Retranslate the Incidents

 Assign Scales to Incidents

 Develop Final Instruments

 Appraisal through MBO
Steps involved in this technique are-

 Set organizational Goals

 Defining Performance Targets

 Performance Review

 Feedback
 360 Degree Appraisal

Superior

Self Employee Peer

Subordinate
 Job Change

Employees move from one job to another

job with in the organization is known as
“Internal Mobility”.

Employees leave the organization due to

any reason is known as “External Mobility”.
 Purpose of Job Change

 To improve organizational effectiveness

 To maximize employee’s efficiency

 To cope with changes in operations

 To ensure discipline
 Transfer

A lateral shift causing movement of

individuals from one place to another usually
without involving any marked change in
duties, responsibilities, skills needed or
compensation.
Need and purpose of Transfers
 To meet organizational needs
 To satisfy employee needs

 To better utilize employees

 To make the employee more versatile

 To adjust the work force

 To provide relief

 To punish employee
 Types of Transfers
 Production Transfers
 Replacement Transfers

 Versatility Transfers

 Remedial Transfers

 Shift Transfers
 Promotion

It is the upward movement of an

employee in the organization’s hierarchy, to
another job commending greater authority,
higher status and better working conditions.
Dry Promotion
 Promotion
Vs
Upgradation
Promotion
Vs
Transfers
 Bases for Promotions

 Seniority Bases
 Merit Bases

 Seniority-cum-Merit Bases
 Demotion

It is the downward movement of an

employee in the organizational hierarchy with
lower status and lower salary.
 Causes of Demotion

 Adverse Business conditions

 Incompetence

 Technological changes

 Disciplinary measures
 Separation

When any employee leaves the organization

due to any reason is known as Employee
Separation
Types of Employee Separation

 Resignation

 Retirement

 Layoff

 Retrenchment

 Dismissal
 Retirement

 Compulsory Retirement
 Premature Retirement

 Voluntary retirement
 Outplacement

It is a human resource programme used

to help separated employees deal with the
emotional stress of job loss and to provide in
assistance in finding a new job.
 Absenteeism
Absenteeism means the failure of a worker
to report for work when he is scheduled to
work.

Number of mandays lost due to absence

Absenteeism = X 100
Number of mandays scheduled to work
Absenteeism in India
 Causes of Absenteeism
 Nature of work
 Poor working conditions
 Sickness
 Accidents
 Lack of interest
 Absence of housing and transport facility
 Poor management system
 Lack of regular leave arrangement
 Rural ties
 Alcoholism and gambling
 Other causes
 Control over Absenteeism
 Proper hiring
 Good working conditions
 Housing and transport facility
 Safety programmes
 Incentives
 Effective supervision
 Disciplinary actions
 Regular leave provisions
 Employee counseling
 Proper records
Labor Turnover
 Labor Turnover

“The rate of change in the working staff of a

concern during a definite period, commonly a
month is known as LABOR TURNOVER.”
 LABOR TURNOVER

ACCESSION/ SEPERATION/
ADDITION TERMINATION

VOLUNTARY INVOLUNTARY
MEASUREMENT OF LABOR TURNOVER

1.) Accession Method

2.) Separation Method
3.) Combined Method
4.) Replacement Method
 Accession Method

No of employees joining the concern

during the year
Turnover Rate = X 100
[
No of employees at the beginning of the
]/ 2
Year + no of employees at the end of the year
 Separation Method

Total Separation during

Turnover Rate =the year X 100
Average no of employees
 Combined Method

( Accession +Separation during the year ) / 2

Turnover Rate = X 100
Average no of employees
 Replacement Method

( Accession - Separation during the year )

Turnover Rate = X 100
Average no of employees
 Causes of Labor Turnover

LABOR TURNOVER

EMPLOYEE ORIENTED EMPLOYER ORIENTED

 EMPLOYEE ORIENTED CAUSES

AVOIDABLE UNAVOIDABLE

• INCOMPETENCE •SICKNESS

• LAZINESS •ACCIDENTS

• DISLIKE OF WORK •DEATHS

• ROLLING STONE •RETIREMENTS

BY NATURE

• DESIRE FOR A
JOB NEAR BY HOME
 EMPLOYER ORIENTED CAUSES

AVOIDABLE UNAVOIDABLE

•POOR MANPOWER
PLANNING

•LACK OF PROMOTION
POLICY •STAGNATIONS

•LOW PAY •SEASONAL NATURE

OF BUSINESS
•POOR WORKING
CONDITIONS

•UNFAIR
SUPERVISION
 Effects of Labor Turnover

 Cost to Employer
 Cost to Employees
Compensation Management
 Compensation Management

An Employee’s total compensation

consist of four components-

 Base Compensation/Basic Pay

 Allowances

 Incentives

 Fringe Benefits/ perquisites

 Issues in Compensation
Management
 Internal Equity Vs External Equity
 Fixed Pay Vs Variable Pay
 Performance Vs Membership
 Job Vs Individual Pay
 Elitism Vs Egalitarianism
 Below Market Vs Above Market Compensation
 Monetary Vs Non-monetary Rewards
 Open Vs Secret Pay
 Centralization Vs Decentralization of pay Decisions
 Objectives of Compensation
Management
 To establish a fair and equitable
remuneration
 To attract competent personnel

 To retain the present employees

 To improve productivity

 To control cost

 To improve Industrial relations

 To improve public image of the company

 Essentials of a sound Wage
and Salary Structure
 Internal equity
 External competitiveness

 Built-in incentives

 Link with productivity

 Maintain real wages

 increments
Factors affecting the wages
 Demand for and supply of labor
 Ability to pay

 Labor unions

 Cost of living

 Prevailing wage rates

 Job requirements

 Productivity

 State Regulation
 Methods of Wage Payment
 Time wage system
 Piece wage system

 Balance or Debt Method

 Process of Wage
Discrimination
 Job Analysis
 Job evaluation

 Wage survey

 Developing wage structure

 Wage administration rules

 Employee appraisal
 Basic Wage
 Minimum wage
 Fair wage

 living wage
 State regulation of wages
 The Minimum Wages Act, 1948
 The Payment of Wages Act, 1936
 The Equal Remuneration Act, 1976
 Section 529-A of the Companies Act, 1956
 The Industrial Dispute Act, 1947
 Wage Boards (an impartial Chairmen, two
independent members,2 or 3 representative members of
workers & employer each)
 Pay Commissions
 Fringe Benefits

Employees are paid several benefits in

addition to wages, salary, allowances and
bonus. These benefits are known as Fringe
Benefits.
 Objectives of Fringe Benefits
 To recruit and retain the best employees
 To improve satisfaction

 To develop a sense of belongingness and

loyalty
 To improve motivation and morale.

 To improve the public image of the company

 Types of Fringe Benefits
 Payment without work
 Health and safety benefits

 Retirement Benefits

 Subsidizing housing, transport, lunch,

dresses
 Counseling

 Interest free loans

 Paid holidays
 Wage Incentives

A wage incentive scheme is essentially a

managerial device of increasing a worker’s
productivity.
 Advantages
and
Limitations
of
Incentive Plans
 Essentials of a sound
Incentive Plan
 Proper climate
 Worker’s participation
 Scientific Standards
 Guaranteed minimum wage
 Simplicity
 Equitable
 Economical
 Flexibility
 Prompt payment
 Adequate incentive
 Ceiling on earnings
 Reasonable standards
 Appraisal system
Types of Wage Incentive Plans
 Individual Incentive Plans
 Time Based
 Halsey or Weir Plan
 Rowan Plan
 Emerson efficiency plan
 Bedeaux Point Plan
 Output Based
 Taylor’s Differential Piece rate Plan
 Merrick’s Multiple Piece Rate Plan
 Gantt’s Task and Bonus Plan

 Group Incentive Plans

 Priestman Bonus Plan
 Towne’s gain sharing
 Scanlon Plan
 Halsey or Weir Plan

Total Wages (W) = T x R + 50% (S-T) x R

T= Time taken
S= Standard Time
R= Rate of Wage
P= Bounce(50%)
 Rowan Plan

[
Total Wages (W) = T x R+ T x R x Time saved
Standard Time
]
 Emerson Efficiency Plan

Total Wages (W) = (T x R) + (Percentage of Bonus x T x R)

 Bedeaux Point Plan

Total Wages (W) = S x R + 75% of R (S-T)

Quality of Work Life
 QWL is the degree of which work in an
organization contributes to material and
psychological well-being of its members.
 Model of QWL
Job Characteristics

Job
Significance,
challenges Involvement

Job satisfaction
Low absenteeism Productivity
Low turnover
Personality Traits
Sense of
Competence
Need Patterns
Work ethic
 Measurement of QWL
 Job involvement
 Job Satisfaction

 Sense of competence

 Job performance

 productivity
 Dimensions of QWL
 Adequate and fair compensation
 Safe and Health working conditions
 Opportunity to use and develop human capacities
 Opportunity for career growth
 Social integration in work force
 Constitutionalisation in the work organization
 Work and personal life
 Social relevance of works.
 Principles of QWL

 The principle of Security

 The principle of equity

 The principle of individualism

 The principle of Democracy

Techniques of improving QWL
 Job Redesign
 Career Development

 Autonomous work group

 Flexible work schedule

 Participative management

 Job security

 Administrative justice