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Semester II Unit4
Semester II Unit4
SEMESTER II
LESSON PLAN 4- MBA / 203
UNIT IV- MANPOWER TRAINING & DEVELOPMENT
UNIT OBJECTIVES
1. MANPOWER TRAINING AND DEVELOPMENT.
2. PERFORMANCE APPRAISAL. *
3. POTENTIAL EVALUATION.
4. *JOB EVALUATION.
5. WAGE DETERMINATION.*
LEARNING OBJECTIVES
1. INTRO.
2. DEFINING TRAINING AND DEVELOPMENT.
3. NEED FOR AND BENEFITS OF TRAINING.
4. METHODS OF DETERMING TRAINING NEEDS.
5. TRAINING OBJECTIVES.
6. FORMULATION OF TRAINING POLICY.
7. PRINCIPLE OF AN EFFECTIVE TRAINING PROGRAM.
8. TRAINING METHODS.
9. PRINCIPLES.
10. MANAGEMENT DEVELOPMENT.
11. OBJECTIVE OF MANAGEMENT DEVELOPMENT.
12. TECHNIQUES OF MANAGEMENT DEVELOPMENT.
13. WHAT IS PERFORMANCE APPRAISAL?
14. JOB PERFORMANCE & PERFORMANCE MEASUREMENT.
15. VALIDITY & RELIABILITY OF PERFORMANCE APPRAISAL.
16. METHODS OF PERFORMANCE APPRAISAL.
17. MAKING PA MORE EFFECTIVE.
18. THE MEANING OF JOB DISCRIPTION, JOB ANALYSIS & JOB EVALUATION.
19. FACTORS AFFECTING JOB VALUES.
20. METHODS OF JOB EVALUATION.
21. ESTABLING PAY STRUCTURE.
22. INCENTIVE COMPENSATION PLAN.
23. EXECUTIVE COMPENSATION.
24. CONCLUSION.
25. REVIEW QUESTIONS.
26. CASE STUDY.
INTRO.
1. We have seen how a newly ‘inducted’ employee is introduced to his fellow workers,
his supervisor, the work of his dept, its relations to other dept and its place in the
whole org to the org objective, philosophy, practices & so on. The new employee
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then has to learn to work most efficiently & effectively. This is through a well-thought
out & planned training program. Training is required at every stage when a person is
moved from one assignment to another of a different nature.
i) Committee.
j) Comparison.
k) Confidence.
l) Consultants.
m) Counseling.
n) In-basket.
o) Incident Pattern.
p) Informal Talks.
q) Interviews
r) Observations
s) Problem Clinic.
t) Research.
u) Role-playing.
v) Self-Analysis.
w) Skill-Inventory.
x) Slip Writing.
y) Studies.
z) Survey.
aa) Tests.
bb) Task Force.
cc) Questionnaires.
dd) Workshop.
9. TRAINING OBJECTIVES
a) To prepare employees for the job meant for them while in first appointment on
training, or on promotion & impart to them the required skill and knowledge.
b) To assist the employees to function more effectively in their present position
by exposing them to the latest concepts, information techniques & developing
the skills that would be required in their particular jobs.
c) To build a second line of competent officers and prepare them to occupy
more responsible positions.
15. A Dasgupta in “Business & Mgt in India” has given objectives of development of
managerial persons for various level of mgt as under:-
a) Top Mgt.
i. To improve through process and analytical ability in order to uncover and
examine problems and take decision in the best interest of the country & Org.
ii. To broaden the outlook of the executive role, position & responsibilities.
iii. To think through the problems which may confront the organization.
iv. To understand, economic, technical & institutional aspects in order to solve
business problems.
v. To acquire knowledge about problems of human relations.
(B) MIDDLE MGT.
i. To establish a clear picture of executive functions & response.
ii. To bring about an awareness of the broad aspects of mgt problems.
iii. To develop the ability to analyze problems and to take appropriate action.
iv. To develop familiarity with managerial uses of fin accounting.
v. To inculcate knowledge of human motivation & human relationships.
vi. To develop responsible leadership.
(C) MIDDLE FUNCTIONAL EXECUTIVE & SPECIALISTS.
i. To increase knowledge of business functions & operations in specific fields in
marketing, productions, finance, personnel.
ii. To increase proficiency in mgt techniques, work study, inventory control, operation
research, quality control.
iii. To simulate creative thinking.
iv. To understand the functions performed in a company.
v. To understood Human Relations problems.
vi. To develop ability to analyse the problems.
iv. Strictness Error. When rater artificially assigns all or certain groups of
employee low ratings.
Merits:-
i. Subordinates make his own evaluation.
ii. Once job a manager is shifted from criticizing the subordinate to
helping him improve his performance.
iii. It is consistent with the belief that people work better when they
have definite I jobs they must meet in specified period.
PERFORMANCE REVIEWS. Meaningful exercise in appraisal of potential the purpose of
Performance Review if they are to achieve their prime purpose of helping people to improve
and develop. Unless carefully & sensitively handled, your subordinates become more
dissatisfied after your counseling than they were before.
i. POTENTIAL REVIEWS. A meaningful exercise in appraisal should include a review
and appraisal potential. The review of potential is concerned with forecasting the
direction in which the subordinate’s career can & should go and the rate at which he
is expected to develop. The assessment of potential requires an analysis of existing
skills, qualities and how they can be developed to the mutual advantage of the
company and the employee. There is also an important counseling aspect to the
review of potential which consists of discussion with the individual about his
aspirations and how these can be best matched to the future, increase for him.
These discussions are a vital part of the procedure because they can provide you
with information about your employee’s feelings on the subject which may have a
direct impact or plans for development.
24. USING MULTIPLE APPRAISALS. To reduce the problem of validity & Reliability, it may
be more useful to use multiple ratings than single evaluation. While the rating of one
supervisor may not be valid, the overall patterns of several ratings do provide an indication
of overall performance and potential for development.
25. PEER. Ratings, self-ratings and subordinate ratings are various attempts that have been
made recently to improve the PA systems.
JOB DESCRIPTION, ANALYSIS & EVALUATION
26. Job Description. Job-Description is a broad statement of the purpose, duties &
responsibilities of a job or position. A job description should be based on a detailed job
analysis.
27. Job Analysis. Job analysis refers to the process of examining a job to identify its
component parts and circumstances in which it is performed. The central concern is to treat
jobs as units of org. The purpose is to gather, analyze and utilize information about jobs. Job
analysis is the foundation for job evaluation.
28. Job evaluation and Pay structure. Job evaluation is the process of establishing the
value of jobs in a job hierarchy. Job values may be determined by negotiation or fixed on the
basis of broad assumptions about market rates and internal relativities. Job evaluation is a
comparative process. Through the process of job evaluation one is able to compare jobs by
using common criteria to define the relationship of one job to another. This gives us the
basis for grading jobs and developing a pay structure one has to remember that job
evaluation is about relationship and not absolutes. Therefore job evaluation cannot be the
sole determining factor for deciding pay structures. Jobs have intrinsic value-the laborer is
worthy of his hire. What is the value in monetary terms unless we take into account a) The
pressure of Supplies & Demand b) Internal Differentials c) feelings of equity?
29. FACTOR AFFECTING JOB VALUES.
a) Market rates.
b) Negotiated Pay Scales.
c) Internal Differentials.
d) Equity.
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i) Market Rates. A job is worth what the market says it is worth. You will have difficulty
in obtaining or retaining people if their pay are not kept in line with those prevailing in
the local & National labour markets from which you recruit your employees. Some
specialized jobs within the company will be governed more by internal than external
comparison. Market rates provide data on differentials between jobs as well as actual
levels pay.
ii) Negotiated Pay Scale. Many pay structures are built around pay scales negotiated
either at plant / National levels. The negotiated rates will be influenced by market
rates; the relative standards of employees of unions, the economic sit, legislation &
govt anti-inflationary pay regulations. Often one pays more than the locally or
nationally negotiated minimum just to keep ahead of market rates or in response to
union pressures.
iii) Internal Relativities & Equity. Pay structures are expected to reflect differences in the
relative skill and responsibility of jobs. They should aim to achieve equity in the sense
that individuals should feel that their rewards are in balance both with their own
output in the shape of efforts, skills and contribution, and with the rewards received
by others in relation to their output.
iv) Equity is the feeling that justice & fairness are only achieved when equal pay is
received for equal work, when pay differentials can be related to finite differences in
degrees of responsibility, and when pay matches individual capacity and the level of
work carried out.
25. Job evaluation is used to create TWO Dimensions of relationships. The first is vertical
relationship within the sector of an org where the basic skill is similar. Here the order of
seniority may be obvious but the spacing of the rungs on the seniority leader needs to be
established. The second dimension is lateral relationship between jobs of a different nature.
Job evaluation is therefore basically the attempt to find a measure by which the relative
payments made to different jobs are internally consistent.
SUMMARY
An understanding of all the concepts in this unit will improve the ability to understand what
motivates men and improve our ability to manage them more effectively.
26. METHODS OF JOB EVALUATION
1. Ranking Method.
2. Classification.
3. Factor Comparison.
4. Point Method.
CASE APPLICATION
(PERK-UP)
1. Last year and in 3 of the 5 preceding years ‘Smithson Industries’ lost millions of dollars.
Although a large conglomerate, smithsion has found these losses hard to accept a sought to
freeze wage increases for its executive. However after conferring with the president of the
company the chairman of the board has decided to offer non-financial incentives. His
reasoning was that competition was head-hunting, and to make such a blatant no-increases
statement might cause the more-promising executives to leave the org. This he felt, would
be extremely determental. He believed that when times were tough, as they had been, i.e.
when excellent managers are required. Losing them now could only snowball the decline.
Accordingly, the Board of Directors has voted to provide each executive with a membership
in the local health Spa, while considered a permanent perk and in lieu of a raise this year,
the board rationalized that managing the corporation the months ahead would be extremely
stressful and that this membership would be a means of reducing the stress while enabling
the executives to become healthier. Unfortunately, however the perk was NOT enough.
Grumbling about the chain of events two executives ‘jumped ship.’ The one’s that stayed
did so because of their time invested in the companies’ pension. However they too were
upset over the boards decision.
QUESTIONS
Q1- How could this ‘Perk’ have been offered or marketed better to these executives?
Q2- What do you believe is the reason why most of the executives did not find the Perk
rewarding?
Q3- Faced with a similar dilemma, what you have done if you had been chairman of the
Board? What would you do now that the executive are upset?