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Manpower Planning The need for companies to take a searching look at their future manpower requirements has become more and more evident, and manpower planning is more important for management than it has ever been. There are three main arguments in favour of manpower planning. Firstly, there is considerable evidence to indicate that for some time to come there will be a shortage of quality manpower, particularly technological and scientific manpower, the demand for which is steadily increasing. Secondly, changes in manpower requirements in skill terms are likely to be much more rapid in the future than they have been in the past. No longer is a man able to learn a skill in his youth, which will carry him through the whole of his working life; it is probable that the young and the not so young man will have to change his skill once, or even twice, in the course of his working life. Thirdly, the ever increasing costs of manpower. Demands for higher standards of living and increased leisure are tending to push these up at an even faster rate.

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Assuming that the average stay in a company of a newly recruited graduate engineer is three years, and that such a recruit is normal, but not exceptional; then the cost in salary alone over the three-year period is likely to be (at current values) of the order of Rs. 8,000/- per month. If, however, one adds on the other costs of staff pensions, various fringe benefits, accommodation and office services, etc. then the total cost is of the order of Rs. 20,000/- per month. No one contemplating the purchase of a piece of plant or equipment, with a similar life-span, costing that amount would do so without the most careful study of its suitability for the purpose for which it was intended, its capacity, the means by which that capacity could be utilized to the full, its place in the scheme of production, and the expected return on the investment. Few companies apply the same level of criteria of consideration to manpower. The reason for this difference in approach lies in the traditional attitude to manpower as a cost rather than as an investment. Yet while machinery depreciates and eventually
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become obsolete, properly developed manpower can continue to grow in usefulness and capacity. The view that there is likely to be a shortage of quality staff over the longer term, or in the one that presently exists, is not universally shared. Some take the view that there is considerable under-use of talents and abilities, and that there is a large, as yet untapped, potential for the exercise of higher skills if only adequate training and education can be made available. This, in itself, is a very large subject. The objective of manpower planning is, and must be, to improve manpower utilisation and to ensure that there is available manpower of the right number and the right quality to meet the present and future needs of the organization. It must, therefore, produce, a realistic recruitment policy and plan and must be very much concerned with costs and productivity.

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Role and Content of Manpower Planning Manpower planning, in its broadest sense, covers all those activities traditionally associated with the management of personnel – records, recruitment, selection, training and development, appraisal, career planning, management succession and so on. But it is important, both for analytical purposes and ultimately for executive purposes, to disentangle these activities and to think of them as a number of sequential phases. Phase 1: The development of manpower objectives: This is concerned with the development of forecasts of the manpower necessary to fulfill the company’s corporate objectives, with looking at the totality of situations rather than at individuals. It is concerned with detailed analysis in order to identify and foresee problem areas, to assess future demands and to establish how those demands may be met. It is directed towards the development of manpower strategy as an integral part of company strategy. Phase 2: The management of manpower: In this phase, the question is one of managing manpower resources to meet objectives and the development, in more specific and individual terms, of recruitment plans, training and development plans, succession plans, appraisal systems, etc.
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Phase 3: Control and evaluation: This concerns the continual evaluation and amendment of plans in the light of achievement and changing circumstances. Planning starts from a given factual position and tries to look ahead through a range of possibilities. Evaluation in this context means thoroughly checking forecasts and forecasting methods against what eventually happens, and making such revisions as may prove necessary. Any planning activity must have a system for this regular checking built into it. In other words, planning must be a continuing process. The components of the second phase are fairly familiar in industry and are often taken to be synonymous with manpower planning. It is the ultimate aim of any complete system of manpower planning that all three phases should be fully integrated. Manpower planning must be fully integrated with the company plan. Indeed without a company plan, there can be no realistic manpower planning.

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The present position and the analysis of trends

In manpower planning there are three basic elements to be considered the present stock of manpower; wastage, and future requirements for manpower. Information will be needed in a series of permutations and combinations according to the needs of the company. The following are the basic ‘building blocks’ that will probably be needed in most circumstances: 1. Present total manpower. 2. Manpower resources by appropriate planning groups, for example, sex, grade, function/department, profession/skill, qualification, age group, and length of service. 3. Total manpower costs. 4. Total costs by appropriate component elements, for example, salaries, wages, pension contributions, welfare, canteen, etc. 5. Costs by functions/departments.
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6. Costs indices and ratios (see control and evaluation below). 7. Total numbers related to sales, production or such other criteria as may be appropriate, in physical and financial terms. 8. Attrition and retention rates by appropriate groups, that is, overall, by function/department, profession, sex, age group, etc. 9. Recruitment patterns by age, education, etc. for each function/department. 10. Resources of promotable staff.

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Forecasting future manpower movements

Future manpower requirements are self-evidently governed by the company’s corporate plan and they can only be considered in that context. Indeed, without a corporate plan there can be no realistic manpower plan. It follows that no forecast for the forward demand of manpower can be more precise than the formulation of the company’s overall objectives. Clearly, it is also important that a company’s objectives should be so stated as to be interpretable in terms of manpower involvement. The factors affecting manpower demand fall into two main groups: trading and production patterns and technological change. Some indication of the extent to which volume and patterns of trade, and technological change affect manpower will have been gathered from the analyses. Control and Evaluation Two broad and complementary approaches to the control and evaluation of the manpower plan are necessary, one in terms of numerical trends and the other in terms of costs criteria. Assuming that the planning period is of five years, then the plan prepared in 1992 would go through to the end of 1997. In the autumn of 1993, the plan should have been reviewed and up-dated where necessary and extended to include 1998. The first step is, as has been stated, the review and up dating of the
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corporate plan. This normally takes the form of a package of expectations and objectives, all of which are considered mutually consistent and feasible. The strategy for achieving these objectives determines the form of organization to be used and the amount and form of resources required, including manpower. In this review, management will want to question the degree to which the various specific goals of the manpower plan were achieved. This can be shown by the use of a number of numerical controls and gauges, such as change in numbers by total/department/function, changes in wastage (turnover) rates and the reasons for wastage, changing age structures and their implications, all related to the original targets set.

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Another approach, which has been found useful in giving a comparative picture of the contribution being made by personnel to the operation of the company, is the development of cost ratios. Conclusion In a world of rapidly changing technology with an ever-growing demand for more and different skills, the need to plan manpower is as great as the need to plan any other resource. The prosperity and growth of any company rests, in the end, on the quality of its manpower and the extent to which their talents are utilized to the full. Manpower planning is concerned with safeguarding the future, with preventing the loss of opportunities through lack of appropriate human abilities and the wastefulness of ‘over-braining’ the organization. It emphasizes the need for rationalization in keeping with modern needs and technological capabilities and the development of organization structures to match. Recruitment

“Recruitment is a process of searching for prospective employees and stimulating them to apply for jobs in the organization.”
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• A recruitment policy • The development of sources of recruitment • Different methods / techniques used for utilising these sources Recruitment Policy A good recruitment policy must contain these elements: (a) Organization’s objectives (b) Identification of the recruitment (c) Preferred sources of recruitment. • It should be so designed as to ensure employment opportunities for its employees on a long-term basis so that the goals of the organization should be achievable. Steps on Recruitment process Personnel recruitment process involves three elements viz. L. Ltd. • It should be flexible enough to meet the changing needs of an organization. R. Ltd. R. and • It should highlight the necessity of establishing job analysis. R.Courtesy L. Ltd. • It should match the qualities of employees with the requirements of the work for which they are employed. Associates Pvt.L. R. and it should develop the potentialities of employees. (d) Criteria of selection and preferences. Ltd. Associates Pvt. R. Compilation . Associates Pvt. Team . Prerequisites of a good recruitment policy L. (e) The cost of recruitment and financial implications of the same. For Private Circulation Only The recruitment policy of an organization must satisfy the following conditions: • It should be in conformity with its general personnel policies. L. Associates Pvt.

R. • The level of seasonality of operations and future expansion and production programs. • The effects of past recruiting efforts which show the organization’s ability to locate and keep good performing people • Working conditions and salary benefit packages offered by the organization – which may influence turnover and necessitate future recruiting. This differs with: • The size of the organization. Associates Pvt. • The employment conditions in the community where the organization is located. Ltd.Sources of recruitment: • • • • Internal External L. economic and legal factors etc. For Private Circulation Only Methods or Techniques of Recruitment Direct Methods Indirect Methods Factors Affecting Recruitment All organizations whether large or small. Team . Associates Pvt. R. R. L. do engage in recruiting activity. L. • Cultural. Steps on Recruitment process Personnel recruitment process involves three elements viz. Associates Pvt. R. R. Ltd. Ltd. • A recruitment policy • The development of sources of recruitment • Different methods / techniques used for utilising these sources Compilation . L. Associates Pvt. • The rate of growth of organization.Courtesy L. though not to the same extent. Ltd.

L. The information is secured in a number of steps or stages. It • • • Should: Be in conformity with its general personnel policies Be flexible enough to meet the changing needs of an organization. The objective of selection process is to determine whether an applicant meets the qualifications for a specific job and to choose the applicant who is most likely to perform well in the job. Associates Pvt. Ltd. • Match the qualities of employees with the requirements of the work for which they are employed. and • Highlight the necessity of establishing job analysis. The formal definition of selection is: “ It is the process of differentiating between applicants in order to identify (and hire) those with the greater likelihood of success in a job. and it should develop the potentialities of employees. Ltd. Associates Pvt. Ltd. Team . L. R. R. Associates Pvt. R. Be so designed as to ensure employment opportunities for its employees on a long-term basis so that the goals of the organization should be achievable. For Private Circulation Only Selection Selection procedure is concerned with securing relevant information about an applicant. Ltd.” Role of selection: Compilation . R.Courtesy L. Prerequisites of a good recruitment policy The recruitment policy of an organization must satisfy the following conditions. L. Associates Pvt. R. L.

Job offer 10. Reference and background checks 7. Physical examination 9. For Private Circulation Only Four approaches to selection • • • • Ethnocentric selection Polycentric selection Regiocentric staffing Geocentric staffing Compilation . Ltd. Cost incurred in recruiting and hiring personnel. Associates Pvt. L. Preliminary interview 3. R. R.Courtesy L. Choosing tests 5. Associates Pvt. two reasons: 1. Employment interview 6. R. R. Ltd. Ltd. L. The role of selection in an organization’s effectiveness is crucial for at least. Selection process involves the following steps: 1. Environmental factors affecting selection 2. Associates Pvt. Evaluation of selection program Barriers to effective selection: • • • • • Perception Fairness Validity Reliability Pressure L. Work performance depends on individuals 2. Contracts of employment and 11. Selection decision 8. R. Team . Ltd. Associates Pvt.L. Selection tests 4.

Team . Partly. Associates Pvt. • Not all new entrants will learn and adapt successfully. Induction and Placement of Human Resources Whenever new employees join an organization there is always a period of learning and adaptation before they become fully effective. Early Compilation . and this slow learning period carries hidden costs. Associates Pvt. An organization that experiences a high incidence of employees leaving during their first few months may also acquire a reputation as a poor employer.Courtesy L. induction is this process of initial learning and adjustment. R. L. But there are two major risks involved in leaving induction to chance. R. The process is likely to take far longer than if induction was planned. • Not all new entrants will learn and adapt. For Private Circulation Only In a very general sense. this involves finding out about the practicalities of the job and facts about pay. But there is also the need to understand the less tangible but very powerful influence of ‘the way we do things around here’. relying on their own efforts to learn about the organization and with informal help from their colleagues. In organizations that provide no form of induction. R. L. L. Every organization has its own style or culture and new employees are unlikely to be fully effective or feel comfortable in their work until they have absorbed this cultural influence and adjusted to it. Ltd. many new staff may eventually settle in. R. R.L. Associates Pvt. Ltd. Ltd. Ltd. other employee benefits and the organization’s rules and regulations. and the organization is then likely to experience the significant disruption and costs of replacing early leavers. Associates Pvt. The costs of early leaving Many employees who leave soon after joining an organization do so because they have not been helped either to understand their role or to adapt to the organizational culture – both aspects being central to effective induction. whether or not the process is planned or structured by the employer.

Compilation . to help new employees settle into their new jobs quickly. Associates Pvt. useful though these are. L.Courtesy L. as do those returning to work after lengthy career breaks. Ltd. Elements of Induction Induction is a planned and systematic process. Ltd. too. New employees bring with them expectations about the job and the organization. Home-based employees and part-timers are often omitted from formal induction programmes. It is also important to recognise that existing employees who transfer or who are promoted within the organization require help in settling into their new jobs. and a reputation of this kind will spread and make it increasingly difficult to recruit good-quality staff. R. Team L. A thorough and well-planned approach to induction carries dividends to the employer in helping to secure a competent. but their needs for assistance in adjusting to new working circumstances can be considerable. Associates Pvt. gained through the organization’s reputation and by contact during the recruitment and selection process – so parts of that process need to be treated as pre-induction. and this enhances its employment retention. R. So induction should not be limited to new recruits to full-time jobs. motivated workforce. and it benefits the individual employee by contributing positively to career development. the way supervisors and managers behave in their day-to-day contacts with their staff has a major influence on how well and how quickly new employees settle in. The longer-term process of tuning in to the style of the organization and understanding its aims and values cannot be achieved by simply attending a course. Most are likely to tell friends and family that the organization is a bad employer. happily and effectively. Also. Associates Pvt. Ltd. One aim of an effective induction policy is to generate enthusiasm for working for the organization. R.leavers are often disillusioned and tend to put all the blame on the organization – even if in some cases they may themselves have failed to put sufficient effort into making a success of their new jobs. It is necessary. L. L. R. How the new employee is received on the first day at work creates a strong first impression and so requires particular attention. structured and implemented by the organization. There is much more to it than the running of formal induction courses. Associates Pvt. For Private Circulation Only . Ltd. for induction to reflect the specific characteristics of different types of work and of different economic sectors. R.

Team . Ltd. R. Associates Pvt.Courtesy L. Ltd. R. R. Ltd. An Induction Checklist Topics Reception • Initial reception • Initial documentation • Bank account details • Next of kin • Issue of : • ID/security pass • Car park permit • Staff handbook • Introduction to supervisor or manager Site • • • • • • • • • • • • L. L. L. Associates Pvt. R. R. For Private Circulation Only geography and facilities General tour of the site Cloakrooms and lavatories Staff restaurant and vending machines Car/motor cycle/bicycle parking Notice boards Employee’s work location Fire exits First aid room/first aid boxes Time recording equipment Issue of equipment Protective clothing Pager/mobile phone Heath and safety • Fire and emergency drills Compilation . Associates Pvt. Associates Pvt.L. Ltd.

L.g. L. Ltd. toxic chemicals0 Smoking regulations Accident procedures Hygiene regulations Introduction to workplace safety representative Introduction to workplace first-aider Occupation health service Pay system Basic pay Bonus schemes Grading/job evaluation Allowances (shift. benefits and employment policies • Attendance : hours of work. R. R.) Explanation of payslip Method of payment L. For Private Circulation Only Other conditions. Associates Pvt. Associates Pvt. R. Ltd. entitlements • Extra-statutory holidays • Pension scheme and life assurance • Company cars • Expenses : entitlements and claims procedure • Private medical/dental insurance Compilation . overtime. Ltd. flexitime.) Deductions (savings schemes. R. Associates Pvt. notification • Sick pay : notification of absence.Courtesy L. R. etc. etc. Ltd. meal/rest • Breaks • Leave : entitlement. standby. L. Team .• • • • • • • • • Pay • • • • • • • • Security alerts General safety rules Specific hazards (e. Associates Pvt.

Compilation . mortgages. L. For Private Circulation Only Compensation and Benefits The Foundations of Reward Management The foundations of reward management are considered under the following headings: • • • • reward management defined. the total reward process.• • • • • • • • • • • • • • Staff purchase/discounts etc. L. R. etc. Ltd. Associates Pvt. R. fitness facilities Counseling and welfare scheme Disciplinary rules and procedure Grievance procedure Equal opportunity policy Alcohol/substance abuse policy Disability policy and equipment Anti-harassment/bullying policy and procedure Customer care and contact policies and procedures Code of conduct (organizational ethics. R.) L. R. how the aims can be achieved. Associates Pvt. Ltd. aims. Ltd. etc.Courtesy L. Maternity/paternity leave Company loans (season tickets. Ltd.) Any flexibility in choice of benefits Social sports. L. Team . R. anti-corruption. Associates Pvt. Associates Pvt.

Team . R. L. Reward management processes cover both financial and non-financial rewards. Ltd. and the management of reward procedures.Courtesy L. L. but the underlying philosophy must recognize that employees are stakeholders in the organization and that their needs also have to be addressed and their views sought and respected. R. L. the provision of employee benefits and pensions.• • • • the transactional and transformational nature of reward management. the evolution of reward processes. R. Associates Pvt. Associates Pvt. Ltd. lead to improved performance. For Private Circulation Only Reward Management Defined Reward management is about the development. The Total Reward Process The total reward process is illustrated in the below figure. reward management is also concerned with the development of appropriate organizational cultures. Ltd. developments in the concept of reward management. Associates Pvt. performance management. underpinning core values and increasing the motivation and commitment of employees. Associates Pvt. L. communication and evaluation of reward processes. the context within which reward policies are developed. The processes of reward management are led by business needs. Importantly. Ltd. together. the design and management of pay structures. These processes deal with the assessment of relative job values. implementation. R. maintenance. competence or skill (contingent pay). This shows reward management as an integrated approach in which the different elements are mutually supportive and. Compilation . paying for performance. The concept of the psychological contract is at least as important in understanding and managing motivation as the technical elements of the economic and transactional aspects of reward. R.

Ltd. Ltd. Employee benefits Market surveys Business strategy Reward strategy Pay structure s Job evaluation Performan ce managem ent Pay levels Total Improved and remunerat performan relativities ion ce Performan ce pay L. Nonfinancial rewards L. Ltd. Associates Pvt. Financial Reward Processes Compilation . Associates Pvt. Associates Pvt.Courtesy L. L. Associates Pvt. R. It is formulated and put into effect in these areas by the processes described below. R. Ltd. For Private Circulation Only Employee developm ent Total reward strategy flows from the HR and business strategy. R. R. Team . R.Figure: The total reward process L.

L. Ltd. scales Compilation . They provide frameworks within which levels of pay for jobs and the differentials are described or defined in the form of grades. Associates Pvt. If performance pay and rewards for competence or skill or service increments are consolidated into an employee’s base rate. Pay structures Pay surveys and job evaluation provide the data for the design and management of pay structures. There may be tension when the often competing claims of external competitiveness and internal equity have to be reconciled. Associates Pvt. which considers the relative value or size of jobs and sometimes generic roles within an organization as a basis for achieving internal equity. Associates Pvt. Ltd. R. R.Financial reward processes are concerned with pay delivery through base and variable pay and with the provision of employee benefits and pensions.Courtesy L. bands. then it becomes the level of pay for that person. Internal relativities reflect the relative value of jobs and people within the organization’s internal labour market. which analyze and compare market rates in order to achieve external competitiveness. Ltd. R. R. as are the level of pension contributions and the size and nature of other benefits. For Private Circulation Only Levels of pay are influenced by external and internal relativities. L. Team . L. Associates Pvt. Ltd. R. L. The size of cash bonuses is usually set in relation to base pay. Base pay Base or basic pay is the rate for the job as affected by the internal and external employment markets. Pay surveys and job evaluation External relativities are established by pay surveys and research. External relativities are the levels of pay for similar jobs in the external labour market – market rates. Internal relativities are assessed by job evaluation. particularly in pay markets under pressure through skills shortages.

because it is related to potentially variable factors and has to be re-earned at the next pay review. be one structure for staff on salaries and another one for manual workers on wages (although this often invidious distinction is progressively disappearing). There may. competence or skill. which defines the pre-determined pay increases that employees can receive year by year on the basis of their time in the job. Different structures may exist for separate job families (groups of jobs where the work is similar). R. R. Associates Pvt. or market groups (jobs in which rates of pay are influenced by market pressures so that to attract and retain people they have to be paid more than those in otherwise comparable jobs). Progression in a pay structure can also be along a pay or maturity curve. R. Associates Pvt. Ltd. This can vary in accordance with assessments of performance. Pay structures also define the limits within which the pay of employees can progress within their grades or bands and how this progression takes place. Ltd.or spot rates (individual job rates). Structures may consist of an extended hierarchy of relatively narrow grades or a fairly small number of broad bands (broadbanding). In this case it is often referred to as ‘variable pay’ and. R. R. Associates Pvt. which relates increases in pay to competence growth and /or higher levels of performance. which is influenced by the level of performance of individuals. L. it is sometimes called pay-at-risk. teams or the organization and /or individual levels of competence or skill. Contingent pay Contingent or differential pay is pay. L. Ltd. Contingent pay based on output or results may be provided as a sum of money. But this approach is becoming much more rare. For Private Circulation Only . When it takes the form of performance or competence related pay it may be consolidated into base pay. which is not consolidated into the base rate and is typically not pensionable.Courtesy L. Team L. Compilation . Associates Pvt. L. Pay structures may cover all or only part of the organization. competence analysis and analysis of market practice by external benchmarking (pay surveys). Progression may be up a fixed incremental scale or spine. for example. Pay structures are designed by reference to data from job evaluation. Ltd.

Compilation . overall. it is holistic in focus and has been extended to cover the assessment of inputs (knowledge. They can also include elements. For Private Circulation Only The measurement and management of performance at organization. internal processes. L. R.Courtesy L. Ltd. Ltd. They include personal development plans and management and coaching throughout the year. R. Performance Management Processes Performance management processes involve performance planning. Total remuneration The sum of base pay. L. involves looking at the business from four related perspectives : customer. Employee benefits and pensions Employee benefits are generally elements of remuneration such as pensions. company cars or permanent health insurance provided in addition to the various forms of cash pay. Performance management was traditionally concerned with the appraisal of performance outputs (results) but. covering the agreement of objectives and competence requirements. A distinction is sometimes made between knowledge and skills (proficiencies) as inputs to performance. which converts inputs to outputs. Associates Pvt. Associates Pvt. Team . L. Associates Pvt. death in service benefits. R. increasingly. Associates Pvt. sick pay. skill and competence). innovation and learning.L. It is based on the view that ‘what you measure is what you get’ and. as well as the periodic review of achievements and performance in relation to those plans. which are not strictly remuneration. child-care provisions and subsidized meals. R. Their purpose is to develop competence and skill and improve performance. R. Ltd. such as annual holidays. and finance. This concept was developed by Kaplan and Norton. Ltd. This represents the complete worth of financial rewards to individuals. and competency (the behaviour that generates excellent performance) as a process. variable pay and the value of employee benefits and pensions constitutes total remuneration. team and individual level may use the ‘balanced scorecard’ approach.

The development nature of performance management is a significant and complementary process to other aspects of reward management leading to improve performance. commitment and improved performance. It typically results in nonfinancial motivation by providing opportunities for personal growth. L. They can make a deeper and longer-lasting impact on motivation and commitment than transitory financial rewards. They also provide non-financial motivation through feedback. which influence variable pay decisions. Performance agreements and reviews identify performance gaps and analyze training needs and lead to the production of personal development plans.This process can be extended to teams and individuals and provides for a longerterm perspective on performance. R. L. Ltd. R. For Private Circulation Only Non-Financial Reward Processes Financial and non-financial motivation processes have an equally important part to play in reward management. achievement. Ltd. Aims of reward management Reward management aims to : Compilation . Associates Pvt. Non-financial rewards focus on the needs of people for recognition. manager. R. peer groups and direct reports – the process called 360-degree feedback. responsibility and personal growth. Ltd. feedback comes from several sources. Associates Pvt. Reward strategies should ensure that both are used effectively as part of an integrated total reward process. Increasingly. R. L. Associates Pvt. L. Associates Pvt. R.Courtesy L. Ltd. Performance management reviews may generate ratings. They should play a major part in the development and implementation of total reward strategies. and therefore contribute to increases in motivation. which recognizes achievement. Team .

R. Compete in the employment market by paying competitive rates which attract and retain good-quality employees. Encourage value-added performance by focusing performance pay and gainsharing schemes on areas where the maximum added value can be achieved. But pay itself. Promote teamwork through the use of team pay. L. competent. Ltd. Drive and support desired behaviour by indicating what sort of behaviour will be rewarded and how this will be done through performance or variable pay and performance management processes. It cannot establish values. It cannot define what the change should be. broadbanded structures. Motivate all members of the organization from the shop-floor to the board room through the judicious use of a combination of financial and nonfinancial rewards.• • • • • • • • • • Support the achievement of the organization’s strategic and shorter-terms objectives by helping to ensure that it has the skilled. Promote continuous development through competence-related and skillbased pay schemes. Ltd. motivated and committed workforce it needs. Team .Courtesy L. treating job evaluation as a process which can be adjusted to meet specific needs rather than a package which has to be applied rigidly. as Flannery et al² state: ‘cannot drive change or lead the change process. It cannot define what the change should be. R. R. the encouragement of multiskilling and by rewarding collaborative behaviours. Associates Pvt. broadbanding and effective performance management. Support culture management change by matching pay culture to organization culture and ensuring that reward management underpins the existing or desired organization culture and helps the organization respond to change. making greater use of L. Help to communicate the organization’s values and performance expectations. R. Promote flexibility by replacing unduly hierarchical and rigid pay structures with more flexible and typically. Associates Pvt. Ltd. Ltd. Associates Pvt. It cannot establish values. R. L. It cannot replace effective leadership. For Private Circulation Only Compilation . L. avoiding the use of over-mechanistic pay-for-performance schemes. Associates Pvt.

Associates Pvt. • Adopt an integrative approach which ensures that no innovations take place and no practices are changed without considering how they relate to Compilation . L. Provide value for money by evaluating the costs as well as the benefits of reward management practices and ensuring that they are operated cost effectively. R. L. Compensation must inextricably be tied to people. It is an important tool for communicating and reinforcing new values and behaviours. which provide the foundation for effective reward management. as required.Courtesy L. • Remember that reward management is about the management of diversity. help to change it. R. As Flannery et al² point out: Organizations are beginning to understand that pay should no longer be considered only in terms of specific jobs and current financial results. L. • Ensure that reward processes are transparent and that employees are treated as stakeholders. their performance and the organizational vision and values that their performance supports. For Private Circulation Only Pay can play a significant part as an investment.• • variable or ‘at risk’ pay and allowing employees more choice over the benefits they receive. R. Ltd. Ltd. Associates Pvt. Ltd. • Value employees according to their competence. R. Achieving the aims There are certain guiding principles. R. These are to : • Align reward strategies with the business strategy. Associates Pvt. skill and contribution. L. Team . which will support the long-term success of the organization. not the control of uniformity. • Align reward policies with the culture of the organization and use them to underpin that culture and. Achieve fairness and equity by rewarding people consistently according to their competence and contribution. supporting accountability for results and rewarding the achievement of new performance goals. Ltd. Associates Pvt.

R. For Private Circulation Only To appreciate how reward management processes function in achieving their aims it is necessary to understand their transactional and transformational aspects and the context within which they operate. innovative and integrative process designed to meet the evolving needs of organizations and the people they employ. R. Associates Pvt. R. Ltd. L. Team .Courtesy L. Job Analysis – A Definition Job analysis is the process of collecting. Ltd. Remember that pay delivery processes can produce significant performance leverage and motivation. R. Concentrate overall on developing reward management as a strategic. and develop and apply them accordingly. L. Ltd. Ltd. Associates Pvt.• • • • • other aspects of human resource management so that they can become mutually supportive. Provide line managers with the authority and skills needed to use rewards to help achieve their goals. Associates Pvt. Associates Pvt. analyzing and setting out information about jobs in order to provide the basis for a job description or role definition and Compilation . Always bear in mind the wise words of Gilbert and Abosch: ³ ‘Today’s best organizations know that values – not rules – provide the essential guidance employees need to be effective. guidance and continuing support required to develop and use these skills well. They know that only empowered employees develop the confidence to act as catalysts for business and personal success’. L. Remember that reward policies and practices express what the organization values and is prepared to pay for – they are driven by the need to reward the right things to convey the right message about what is important. R. but ensure that they are given the training. L.

analyzing and sorting these facts and re-assembling them into whatever consistent format is chosen. It is not a matter of obtaining opinions or making judgments. Associates Pvt. L. It is helpful in both cases to be quite clear about the questions to be asked and answered and it is essential in the latter case to provide guidance on how the analysis should be carried out and expressed on paper. L. R. Role definitions refer to broader aspects of behaviour. Thus judgmental statements such as ‘Carries out the highly skilled work of…’ should be avoided (who is to say that the work is highly skilled and in comparison with what?) The facts can be obtained by interviews (the best but time-consuming way) or by asking jobholders and/or their managers to write their own job descriptions in a structured format. or the main tasks they have to carry out.data for job evaluation. R. For Private Circulation Only Job Analysis in Practice Job analysis is an analytical process involving gathering facts. They may incorporate the results of skills or competence analysis. Team . Ltd. Associates Pvt. Alternatively questionnaires can be used – either universal questionnaires or those designed for job families: Compilation . Ltd. Associates Pvt. What goes into a job description should be what actually happens and why. the jobholder’s manager (preferably both) and the jobholder’s colleagues or team mates. Associates Pvt. A distinction should be made between a job description and a role definition. whether it fits in the organization structure. working flexibly. Job analysis gets the facts about a job from jobholders. or what they feel people should be like to make it happen. R. working with others and styles of management. L. the context within which the job holder functions and the principal accountabilities of the job holders. R. R.Courtesy L. not what people would like to think happens. for example. Ltd. Ltd. A role definition additionally describes the part to be played by individuals in fulfilling their job requirements. L. performance management and other human resource management purposes. A job description sets out the purpose of a job.

Job analysis interview check lists • What is your job title? • To whom are you responsible? • Who is responsible to you? (An organization chart is helpful). and number of customers? • Is there any other information you can provide about your job to amplify the above facts. L.L. R. numbers of people managed. in overall terms.Courtesy L. Associates Pvt. skill or competence required. R. R. key result areas or main tasks)? Describe what you have to do and also indicate why you have to do it? i. For Private Circulation Only Compilation . A job family questionnaire is designed with the advice of an expert team of managers from the organization. and they should focus on those aspects of performance and values that are considered to be important in the organization concerned.g. Ltd. • Job family questionnaires Job family questionnaires are designed to establish the main factors. They are typically used in association with computer-assisted job evaluation. the results you are expected to achieve by carrying out the task. what are your main areas of responsibility (e. • What is the main purpose of your job? i. which differentiate between jobs at different levels in a job family. Associates Pvt. R. R.e. They should be tailored to the particular organization and the range and type of jobs to be covered. numbers of items processed.e. such as: L. • Universal questionnaires Universal questionnaires are designed to cover all the jobs to be analyzed. Ltd. Ltd. Associates Pvt. L. what are you expected to do? • To achieve that purpose. • What are the dimensions of your job in such terms as output or sales targets. development engineer or personnel specialists that are related in terms of the fundamental activities carried out but are differentiated by the levels of responsibility. principal accountabilities. Team . Ltd. Associates Pvt. A job family consists of jobs in a particular function or discipline such as research scientist.

Ltd. The aim is to structure the job analysis interview or questionnaire in line with these headings. Ltd. L. Analyzing the facts However carefully the interview or questionnaire is structured. The concept rests on a philosophy on management that emphasizes an integrated between external control (by managers) and self-control (by subordinates). the contacts you make with others. R. the major problems you meet in carrying out your work. Associates Pvt. the information is unlikely to come out neatly and succinctly in a way. rearrange and sometimes rewrite the information. A number of companies have had significant success in broadening individual responsibility and involvement in work planning at the lowest organizational levels. R. flexibility requirements in terms of having to carry out a range of different tasks. R. define each individual’s major areas of responsibility in terms of the results expected of him. the knowledge and skills you need to do your work. and use these measures as guides for operating the unit and assessing the contribution of each of its members. your decision-making authority. For Private Circulation Only how your job fits in with other jobs in your department or in the company. Team . L. Management By Objectives (MBO) Management by Objectives is basically a process whereby the superior and the subordinate managers of an enterprise jointly identify its common goals. It can apply to any manager or Compilation . Associates Pvt. L.Courtesy L. Associates Pvt. Ltd. R.- L. plant and tools you use. other features of your job such as traveling or unsocial hours or unusual physical conditions. how work is allocated to you and how your work is reviewed and approved. which can readily be translated into a job description or role definition. inside and outside the company – the equipment. Associates Pvt. Ltd. It is usually necessary to sort out. R.

Both superior and subordinates participate in this review and in any other evaluation that takes place. This sets the stage for the determination of objectives for the next period. or a combination of both. regardless of size. Associates Pvt. Team . R. R. Throughout the time period what is to be accomplished by the entire organization should be compared with what is being accomplished. any appropriate changes in the organization structure should be made: changes in titles. responsibility. L. Ltd. L. Ltd. etc. These goals can emphasize output variables or intervening variables. For Private Circulation Only Prior to settling individual objectives. and at this time.Courtesy L. The smooth functioning of this system is an agreement between a manager and subordinate about that subordinate’s own or group performance goals during a stated time period. and so forth.) and functional information Compilation . span of control. R. It provides both organizational information (location is structure. Ltd. This is followed by a review of the subordinate’s performance in relation to accepted goals at the end of the time period. which is basically descriptive in nature and contains a statement of job analysis. Consultation and participation in this area tend to establish personal risk for the attainment of the formulated objective by those who actually perform the task. duties. L. L. Associates Pvt. authority. The important thing is that goals are jointly established and agreed upon in advance. Associates Pvt. authority. the common goals of the entire organization should be clarified. R. Associates Pvt. R. necessary adjustments should be made and inappropriate goals discarded. and to any organization. At the end of the time period a final mutual review of objectives and performance takes place. Job Description “Job description” is an important document.individual no matter what level or function. efforts are initiated to determine what steps can be taken to overcome these problems. If there is discrepancy between the two. Ltd. relationships.

Ltd. R. major responsibilities. Associates Pvt. R. It defines the scope of job activities. R.Courtesy L. Associates Pvt. Job Description describe ‘jobs. operating and adjusting machinery Time and motion studies Defining the limits of authority Indicating case of personal merit Facilitating job placement Studies of health and fatigue Scientific guidance Compilation . who analysed 401 articles on job description about 30 years ago. a job description helps us in : • • • • • • • • • • • • • • L.(What the work is). Ltd. Ltd. Uses of Job Description According to Zerga. Team . For Private Circulation Only Job grading and classification Transfers and promotions Adjustments of grievances Defining and outlining promotional steps Establishing a common understanding of a job between employers and employees Investigating accidents Indicating faulty work procedures or duplication of papers Maintaining. Ltd.’ It is a vehicle for oganisational change and improvement. Associates Pvt. L. L. R.’ not ‘job holders. R. and positioning of the job in the organization. Associates Pvt. L.

R. Ltd. L. particularly when they are used as bases for training. Each factor is Compilation . Ltd. “types letters. Associates Pvt. Ltd.” “collects. Associates Pvt. Associates Pvt. For Private Circulation Only Guidelines for Writing a job Description • A paragraph is allocated to each major task or responsibility. L. • Job descriptions.” should be avoided. Determining jobs suitable for occupational therapy Providing hiring specifications Providing performance indicators Components of Job Description : • Job identification. • Brevity is usually considered to be important but is largely conditioned depending on the type of job being analysed and the need for accuracy. R.) are identified and listed. R. • Sentences have to begin with an active verb. or Organizational position • Job duties and responsibilities • Relation to other jobs • Supervision • Machine. • Paragraphs are numbered and arranged in a logical order. • Statements of opinion. R. Associates Pvt. • When job descriptions are written for supervisory jobs. Ltd.g.• • • L. etc.” “interviews the candidates. often incorporate details of the faults which may be encountered in operator tasks and safety check-points.Courtesy L. task sequence or importance. cost control. Team . • Examples of work performed are often quoted and are useful in making the job description explicit. R. the main factors (such as manning. routes and distributes mail.” • Accuracy and simplicity are emphasised rather than an elegant style. e. such as “dangerous situations are encountered. sorts out. tools and equipment • Working conditions • Hazards L.

The British Institute of Management Publication adds four more guidelines. Job evaluation does not determine pay scales but merely guides on the ways in which they may be devised. Team . • Describe in sufficient detail each of the main duties and responsibilities • Indicate the extent of direction received and supervision given. L. Job evaluations are generally carried out by groups and not by individuals. concise and readily understandable picture of the whole job. Associates Pvt. the methods used for it are highly similar to those used to assess people. Though job evaluation attempts to assess jobs and not people. For Private Circulation Only Job Evaluation Job evaluation means to produce a fairly defensible rating of various jobs on which a rational and acceptable pay structure can be built. To do this job evaluation heavily depends upon the description and sometimes job specification also provided by job analysis. Associates Pvt. R.then broken down into a series of elements with a note on the supervisor’s responsibility. R. Ltd. Methods of Job Evaluation : The methods of job evaluation can be categorised into two categories : • Non-analytical or non-quantitative methods Compilation . Some of the features of job evaluation are : • • • The standards of job evaluation are relative and not absolute. R. • Ensure that a new employee understands the job if he reads the job description.Courtesy L. L. R. Ltd. Associates Pvt. Ltd. Associates Pvt. Ltd. R. L. • Give a clear. L.

The raters read the jobs description and depending upon their personal interpretation of the relative difficulty of tasks. Each judge from the panel does the comparing and ranking individually and later on scores are totally up to enable a composite rank order to be drawn up. L. Associates Pvt. Generally for each department separate rank orders are developed based on job description of the jobs within that department. For Private Circulation Only . This method reduce the subjectively element.Courtesy L. The jobs are ranked by a panel of experts simply from highest to lowest. • Analytical or quantitative methods Two of most known methods are factor comparison method and point system method. We put them in order of merit according to their worth them as a whole. Ltd. Ltd. more important or of the same importance than the job is being compared with. R. Associates Pvt. Once the rank orders for the departments are prepared they are combined with the rank orders prepared by other department and a final rank order for the entire organization covering all the jobs is prepared. Team L. R.∗ L. the other is by using paired comparison method. R. Job Classification Method Job Ranking Method While using this method. Associates Pvt. R. While using this method two jobs are compared at a time and score is allotted on the basis of whether the first job is estimated to be less important. major classes or grades are first established and then various jobs are assigned by rankers to those grades. Ltd. Associates Pvt. responsibilities involved. There are two ways in which ranking order can be given by the panel-one by simply allotting continuous ranks. Compilation . R. Ltd. we don’t break jobs into small components. L. knowledge and experience required decide in which of the classes each job should be placed. ∗ In this method.

* Factor comparison method. R. R. This is done by dividing the present salary into the amount being paid for each of the factors. L. Now all other jobs in the organization are compared with the key job factor by factor and wages are determined for them. R. Ltd. R. Associates Pvt. Just like in job classification method different grades are developed for different types of Compilation . those jobs in which there is no disagreement between the management and the union on the amount of salary paid and the jobs which have been described accurately. This method was initally developed by Benge.L. Point system is like job classification approach to some extent. Team For Private Circulation Only L. The major steps consist of : L. Associates Pvt. The jobs whose rankings show lot of disagreement are removed from the list. Burke and Flay. The next step will be to assign money value to the factors into which key jobs are divided. R. Associates Pvt. Ltd. . Second step will be to determine the common factors among all the jobs Then these jobs are rank ordered on each of these common factors. • Point System Determining the key jobs i. Then both rank orders are compared for all the factors on each job. Associates Pvt. Ltd. This assigning is done independent of ranks given before.e. Ranking should be done by a panel of atleast ten raters and these rankings should be done atleast three times with an interval of about a week between every two rankings.Courtesy L. Ltd. The jobs are examined componentwise and not as whole entities.

There are various approaches to training evaluation. the specific nature of training deficiencies whether the trainees required any additional on the job training and the extent of training not needed for the participants to meet job re. Team . Associates Pvt. Ltd.jobs. Ltd. it can be used for assessing training effectiveness. Objectives Objectives of training evaluation is to determine the ability of the participant in the training programme to perform jobs for which they were trained. They are of differing importance. First.” Why Evaluate ? Evaluation has two purposes. Associates Pvt. R. input.Courtesy L. L. Associates Pvt. To get a valid measure of training effectiveness. For Private Circulation Only Definition “Training evaluation means any attempt to obtain information (feedback) on the effects of a training program. L. Types of training evaluation It is helpful to distinguish between four types of training evaluation. Secondly. These are context. point systems are also developed separately for different categories of jobs. R. the personnel manager should accurately assess trainee’s job performance two to four months after completion of training. Ltd.quirements. it can itself be used as a training aid. Compilation . and to assess the value of the training in the light of that information. • Evaluation of Training L. L. Ltd. R. R. It is similar to factor comparison method also as jobs are evaluated factorwise. R. depending upon whether we are talking about the training of managers or of operatives. process and outcome evaluation. The number of factors and types of factors differ from organization to organization and also within the organization sometimes. Associates Pvt.

organizational deficiencies and so on. • Trainers provide limited counselling and consulting services to the rest of the organization. Associates Pvt. R. first line supervisors have difficulty production norms if employees are attending training programmes. • Without proper scheduling from above. R. does not account for training in production scheduling. Associates Pvt. • Training external to the employing unit sometimes teaches techniques on methods contrary to practices of the participants organization. L. Why Training Fails ? The following factors have been regarded as the main reasons for failure of training programmes. L. • The top management rarely plans and budgets systematically for training. For Private Circulation Only Job . Input evaluation Determining and using facts and opinions about the available human and material training resources in order to choose between alternative training methods. L. Ltd. • Behavioural objectives are often in precise. R. R. Ltd. This involves continuous examination of administrative arrangements and feedback from trainees. R. about individual difficulties.Satisfaction Compilation . Associates Pvt. Associates Pvt. In practice. : • The benefits of training are not clear to the top management. • Timely information about external programmes may be difficult to obtain. Ltd.Courtesy L. without proper incentives from top management. L. Process evaluation Monitoring the training as it is in progress.Context evaluation Obtaining and using information about the current operational context – that is. Team . Ltd. this mainly the assessment of training needs as a basis for decision. • The middle management.

For Private Circulation Only There are three important dimensions to Job . R.satisfaction and job attitude is often used interchangeably.What Is Job . Job satisfaction is often determined by how well outcomes meet or exceed expectations. 2. Job satisfaction refers to one’s feelings towards one’s job. Ltd. If you dislike your job intensely.Satisfaction? L. 3. L. R. L. If you like your job intensely you will experience high job satisfaction. you will experience job dissatisfaction. L.satisfaction: “Job . R.satisfaction is the amount of pleasurable or contentment associated with a job. Associates Pvt. Ltd. Associates Pvt. The term Job . R. Associates Pvt. Team . Some definitions of Job . R.Satisfaction: 1.Satisfaction: • • • • • • • High Job – satisfaction may lead to: Improved productivity Decreased employee turnover Improved attendance Reduced accidents Less job stress Lower unionisation Sources Of Job – Satisfaction Several job elements contribute to Job – satisfaction they are: • Wages • Nature of work • Promotion Compilation .” “ Job – satisfaction will be defined as the amount of overall positive affect (or feelings) that individuals have towards their jobs. Ltd.” Consequences Of Job .Courtesy L. Ltd. Associates Pvt.

Team . L. R. They give management an indication of general levels of satisfaction in a company 2. R. turnover etc. Improved communication 3. Associates Pvt.• • • Supervision Work group Working conditions L. Associates Pvt. R. They are useful to the unions Ways Of Measuring Job – Satisfaction Rating Scales • Critical Incidents • Interviews • Action Tendencies • Use Of Existing Information The Determination of Training Needs with an Enterprise There is a great difference between the way in which training needs would be determined in a perfect world and an ideal company. It evaluates the impact of organizational change on employee attitudes. Ltd. Ltd. L. Associates Pvt. Ltd. Associates Pvt. and the way in which it is often done in the normal working circumstances. Compilation . R. For Private Circulation Only Benefits Of Job – Satisfaction Study 1. It can help to discover the cause of indirect productivity problems. Improved attitude 4. 7. They help management asses training needs 6. such as absenteeism. L. 8. R. It is an indicator of the effectiveness of organizational reward systems. Ltd.Courtesy L. 5.

. In between these two extremes there are all the permutations and combinations. In the second type of company. Information related to manpower will be available in the personnel department. The approach of each company will vary from that of other companies and so it should. Associates Pvt.e. the other displays a piecemeal haphazard approach.on one hand. is one of a number of general responsibilities carried out by an official whose main responsibility is something quite different. The initiative is often left to one particular department manager who happens to realize the potential benefits of training and is keen to do something about it. Associates Pvt. Ltd. L. if it can be identified at all. there is a progressive company with highly organized central personnel and training departments. information about qualifications and previous experience and training already given by the company. At the other extreme. At the one extreme. L. and a plan for integrated manpower development. L. L. Associates Pvt. and company objectives change. and often unrelated to the needs of the company. • In the first type of company. R. and where the function. markets. Ltd. unsystematic. R. but fundamentally there are a number of common basic steps: Take an inventory: The present manpower should be taken stock of both quantitatively and qualitatively. the training is much less likely to be planned ‘globally’ for the company as a whole.Let us consider an example . i. which is constantly being carried out and reviewed as circumstances. R. R. unplanned. training needs are carefully analyzed and reviewed and. R. Information about how effective the people are in their present job and about their promotion ability should also be included. policies. Team . Ltd. He may nominate one member of his staff as training officer and activities may be launched which are related only to the specific needs of that particular department at that particular time.Courtesy L. Ltd. For Private Circulation Only • • • Compilation . the determination of training needs is something. They may even conflict with the needs of the organization as a whole. Associates Pvt. there is a company where the personnel and training responsibilities are not very clearly defined.

etc. transfers. The training officer’s task will be to advise on what is to be done within the company to meet these training needs and also what use. should be considered here. technical and commercial colleges. if any. This is because some personnel development programs are quite lengthy and in the meantime company objectives – and therefore organizations may change. Team . Associates Pvt. will be spotlighted by the development program. Ltd. If it is unlikely to fill all vacancies from within the organization then sources outside the company can be tapped. etc. R. both short term and long term. e. expansion. contraction. Ltd. which will need to be filled during the review period. universities. Associates Pvt. R.g. Step two forecasts all future requirements but in particular it highlights key jobs. The training needs. Compilation . To decide where one is going to find the people: Some of the people can be found within the organization unless there is a well-planned scheme for ‘spotting’ talent. Associates Pvt.Courtesy L. In order to do this. For Private Circulation Only • • This. • L. L. resignations. in a nutshell. re-organization. The two can be then matched by allocating people to ‘target’ jobs. Decide what one is going to do to develop the manpower: Both those who are there and those who are going to be recruited in order to help them to be fully effective in their present posts and to prepare them for their ‘target’ jobs’. R. The ‘two-target-job’ approach ensures greater flexibility. R. Associates Pvt. In practice it is a good idea to prepare people wherever possible for two target jobs. It is in this third step that the results of steps one and two are combined. L. Ltd. R. etc. the training officer needs to keep himself well informed about the work of these organizations and its quality. and the possible effects of changes in the company’s policies and objectives. Step one has mentioned what type of people organization has and what their potential is. • Forecasts of future requirements: Normal ‘wastage’ through retirement.L. is the raison d’etre of the training officer’s job. consultants. Ltd. is to be made of ‘external’ facilities offered by training institutions.

R. In other cases. Ltd. The professional training staff keeps in touch with the participants and work with them in their enterprise enough to ensure that each participant does. R. in fact. and the overcoming of diverse obstacles. Associates Pvt. are training courses. This ability can be defined as a management skill. L. Compilation . But it is almost invariably followed by a follow-up period. Ltd. the formal training program does not include this second phase. The aptitudes and efforts of the individuals concerned as well as opportunities provided by the environment greatly influence the process of acquiring management skills. The next activity in the development cycle is guided practical application of the new techniques and concepts. For Private Circulation Only The first activity in which the managers. R. in the conditions of his own enterprise.Courtesy L. R. R. what he has learned in the course. Associates Pvt. L. Team . L. which is very similar in objectives and scope. phase of classroom or laboratory training is followed by a phase during which the participants work as individuals or in groups on practical projects. each participant is assisted in selecting a practical problem-solving task in which he will apply. or young people trained for future jobs participate.L. Associates Pvt. which consists thus of two major phases: the first. Ltd. Ltd. Such skills are only developed and refined through practice and first-hand experience. Acquisition of these skills involves identification of practical situations to which the technique can be applied. In some cases. the adaptation of the technique to the requirements of these situations. Before the end of the course. Knowledge of the technique can be acquired through theoretical study and through simulation exercises in the classroom or laboratory. Associates Pvt. co-ordination of the efforts of those people concerned with introduction of the technique. But the essential skills in practical use and application of the technique cannot be acquired in the same way as the theory. this is done during the training program concerned. • The Training and Consultancy Cycle There is a marked difference between the knowledge of a management technique and the ability to use it properly in a practical management situation.

R. so that each can present to the group the description of the problem he tackled. Ltd. which define not only what has to be learnt but also what learners must be able to do after their training program. Associates Pvt. • • Compilation . Through such “evaluation seminars” everyone has a further opportunity to learn about additional practical applications. Define the objectives of training – Learning objectives are set. At the end of this practical in-plant application phase (whether part of a general course or follow-up phase after the completion of a course) participants return to the training center for a few more days. L. Ltd. L. R. occupational and individual needs to acquire new skills or knowledge or to improve existing competencies. Associates Pvt. L. Ltd. R. what competences need to be developed and what attitudes need to be changed. Ltd. Decisions are made at this stage on the extent to which training is the best and the most cost-effective way to solve the problem. Associates Pvt. The analysis covers problems to be solved as well as future demands. R. and exposure to. Team .produce practical results. L. top management is unlikely to accept any alternative approach to training which excludes the practical application of new techniques. is a ‘deliberate intervention aimed at achieving the learning necessary for improved job performance’ the process of planned training consists of the following steps (as shown in the figure below): • Identify and define training needs – This involves analysis of corporate. Further. It is considered that this approach is the only way to ensure that participants receive adequate training in. as defined by Kenney and Reid (1994).Courtesy L. team. the methods used to solve it and the obtained or expected results. Define the learning required – It is necessary to specify as clearly as possible what skills and knowledge have to be learnt. For Private Circulation Only Strategic Training System (Planned training) Planned training. Associates Pvt. practical management skills. R.

Associates Pvt. Decide who provides the training – The extent to which training is provided from within or outside the organization needs to be decided. L. L. Ltd. managers or team leaders and individuals has to be determined. At the same time. Amend and extend training as necessary – Decide. R. Implement the training – Ensure that the most appropriate methods are used to enable trainees to acquire the skills. Ltd. This is what has to be filled by training i. Ltd. Team Knowledge and For Private Circulation Onlyskill . level of competence and attitudes they need.e. the division of responsibility between the training department. the difference between what people know and can do and what they should know and be able to do. R. Evaluate training – The effectiveness of training is monitored during programs and. L. Associates Pvt. the impact of training is assessed to determine the extent to which learning objectives have been achieved. knowledge. Associates Pvt.Courtesy L. R. subsequently. R. on the basis of evaluation.• • • • • Plan training programs – These must be developed to meet the needs and objectives by using the right combination of training techniques and locations. Associates Pvt. Training needs analysis – Aims Training needs analysis is partly concerned with defining the gap between what is happening and what should happen. Ltd. L. What should be Corporate or functional standards Knowledge and skill Compilation . the extent to which the planned training program needs to be improved and how any residual learning requirements should be satisfied. R. Corporate or functional results possessed required Actual performance of individuals What is Training gap Identification of training needs Training must have a purpose and that purpose can be defined only if the learning needs of the organization and the groups and individuals within it have been systematically identified and analyzed.

R. R. Ltd. Ltd. R. Compilation . Associates Pvt. These three areas are interconnected. Associates Pvt.L. L. for departments. For Private Circulation Only The Training Gap Training needs analysis – Areas Training needs should be analyzed. Ltd. functions or occupations within the organization – group needs. The analysis of corporate needs will lead to the identification of training needs in different departments or occupations. although there may be some super ordinate training requirements which can be related only to the company as a whole to meet its business development needs – the whole training plan may be greater than the sum of its parts. And third. Team .Courtesy L. as shown in the above figure. R. Associates Pvt. for the organization as a whole – corporate needs. teams. The sum of group and individual needs will help to define corporate needs. common needs emerge which can be dealt with on a group basis. L. for individual employees – individual needs. R. As the needs of individual employees are analyzed separately. Associates Pvt. second. first. Ltd. while these in turn will indicate the training required for individual employees. The process also operates in reverse. L.

Ltd. Ltd. R. Team . Associates Pvt. L. Associates Pvt. R. R. R. For Private Circulation Only Compilation . Ltd. Corporate Group Individual Analysis of strategic plans Analysis of human resource plans Training surveys Performanc e & developme nt reviews Job and role analysis Methods of analyzing training needs The four methods of training needs analysis are: • Analysis of business and human resource plans • Job analysis • Analysis of performance reviews • Training surveys L.Courtesy L. R. Ltd. Training needs analysis – Areas and Methods L. Associates Pvt. Associates Pvt.L.

Associates Pvt. the information economy. But undeniably. the warnings. Team . and the digital economy. R. Business and human resource plans The training strategy of an organization should largely be determined by its business and HR strategies and plans from which flow human resource plans. R. L. HR professionals task was simple .Courtesy L. Ltd. The winds of change are heralding the emergence of the new economy. HR professionals are being asked to navigate through the white-water rapids of a multicultural workplace. Ltd. Certainly nothing was said or expected about creating work environments that encourage interconnecting people. Every commentator on any business trend pays homage to it. and the damage is done. The signals. and motivate good people. navigating one river successfully is no guarantee of success on another just as one new global business experience rarely resembles another. L. For Private Circulation Only HR Challenges As companies rush to become global. Associates Pvt. for example. Ltd. complex markets.L. retain. Over the past decade. Technology and HR It’s become a cliché to talk about the accelerating pace of change in the business environment . These broad indicators have to be translated into more specific plans which cover. shaping new corporate cultures and dictating new business ethics. Seamlessly creating new work environments. Beneath the turbulent water are the hidden challenges of lost talent. Associates Pvt. Ltd. The plans should indicate in fairly general terms the types of skills and competences that may be required in the future and the number of people with those skills and competencies who will be needed. knowledge. Compilation . and markets. Associates Pvt. R. are often not seen or heard until it is too late. Moreover. inequities. and a new global competitors. R. today’s organization seems to experience change like never before.attract. L. and the unknown. the outputs from training programs of people with particular skills or a combination of skills (multi-skilling). R.

Technology can therefore present a considerable threat to employees. L. R. managed and carried out. Changing technology necessitates changes in organizational structures. The technology of the business exerts a major influence on the internal environment how work is organized. The result may be an extension of the skills base of the organization and its employees. Ltd. As technology changes faster. L. The consequences of changing technology • • • • • • • L. R. Associates Pvt. R. Ltd. Associates Pvt. Team . L. For Private Circulation Only Smaller. Associates Pvt. including multi-skilling . Ltd. and employee relations. training. Ltd. job design. so too must ways of managing the people who work in technologically dependent work.A new breed of professionals have raised the challenge sweepstakes for the HR managers.Courtesy L. That responsiveness will require increasingly flexible HR efforts and increasingly rapid HR decision making. Compilation . But it could result in downsizing. more productive organizations Growing need for training on how to use technology Increasing need for people to cope with the expectation that they can perform anytime or anywhere Increased productivity Flatter organizations Increased efficiency Reduced interpersonal contact Threats of changing technology and the role of HR Increased productivity Technology offers the greatest opportunity for improved productivity and will continue to change abilities and expectations for how and where work is done and who does work. Different skills are required. The introduction of new technology may result in considerable changes to systems and processes. new methods of working are developed. Associates Pvt. R. compensation structures. hiring practices. R.

L. The ability to perform work anywhere and at any time . Ltd. Associates Pvt. L. Associates Pvt.L. Associates Pvt. The Retention Measures • Increasing the organization’s level of professionalism • Moving from family to professional management Compilation . But at a time when the need for superior talent is increasing. For Private Circulation Only Better talent is worth fighting for. R. Ltd.the “virtual office” calls for new performance measurement systems and different managerial skills. and managing that human element is essential if any benefits of technological change are to be realized. Ltd. Team . At senior levels of an organization. Attraction and Retention of talent L. Organizations meet this demand by providing continuous retraining to help employees keep pace with changing technology. R. business objectives languish. The human element is key to taking full advantage of technological change. Executives and experts point to a severe and worsening shortage of the people needed to run divisions and manage critical functions. R. R. Ltd. Everyone knows organizations where key jobs go begging. to make decisions quickly in situations of high uncertainty. big US companies are finding it difficult to attract and retain good people. HR can take the leadership role by directing the formulation of systematic action plans or strategies developed to enable people to deal with technological change. and compensation packages skyrocket. Associates Pvt. organizations must increasingly devote resources to training employees on how to use it. the ability to adapt. Changes in the way work is done The ability to share information is escalating exponentially with personal computers in virtually every office and in many residences and connected to a network.Courtesy L. Increased need for Training To keep pace with changing technology. and to steer through wrenching change is critical. let alone lead companies. R.

Ltd. a company can lower its attrition rate. R. Moving from family to professional management In most family managed organizations. Associates Pvt. L. ad-hoc and driven more by personal prejudice rather than professional consideration. and decisions. R. R. professional managers leave because they cannot see themselves holding key positions. R. For Private Circulation Only Increasing the organization’s level of professionalism Employees leave companies where intra-organizational interactions are unstructured. Ltd. Associates Pvt. Ltd. Making performance appraisals objective Employees like to know how. By adopting systems that introduce an element of objectivity into its internal operations. Associates Pvt. L. when and by whom their performance is going to be measured. or functioning with the level of independence that their designations merit. R. Associates Pvt.• • • • • • • • • • • Making performance appraisals objective Involving employees in the decision making process Ensuring a match between authority and accountability Measuring employee satisfaction Achieving a match between individual and organizational goals Designing a competitive compensation package Increasing organizational transparency Promoting employees from within Helping employees acquire new skills Offering stock options Focusing on welfare measures proposition L. By inducting professionals into senior management positions. Involving employees in the decision making process Compilation . a company can create a better workplace. Ltd.Courtesy L. Team . L. An appraisal process that lists objective and measurable criteria for performance appraisal removes the uncertainty in the minds of employees that their superiors can rate their performance any which way they please.

Associates Pvt.Courtesy L. the higher the organization’s retention level. Ltd. Ltd. R. and enable the company to take corrective action. but do not hold him accountable. Increasing organizational transparency Compilation . Achieving a match between individual and organizational goals Many companies fall into the trap of expecting their employees to subsume their individual objectives before the organizations one. R. better. R. Team . Associates Pvt. Designing a competitive compensation package Money isn’t a motivator.People like to work in organizations where their opinions count. R. While organizations that pay best-in-industry salaries may find themselves unable to use that fact to motivate their employees. L. R. but it is an effective de-motivator. the situation is exacerbated by the fact that they vest another employee with the same authority. The best companies achieve a balance between the two. L. Associates Pvt. Periodic employee satisfaction surveys can highlight the potential flashpoints. those that could not find their best employees leaving. Ltd. Ensuring a match between authority and accountability Most companies fall into the trap of holding an employee accountable for a specific activity without empowering him/her with the authority to perform it well. which forces the employee to leave. A participative decision-making process is good. L. L. For Private Circulation Only Measuring employee satisfaction Obsessed with catering to the demands of their external customers. The higher an employee’s involvement in decision-making. Often. companies ignore their internal customers. Associates Pvt. total empowerment. Ltd.

where information is rationed out on a need-to-know basis. R.Courtesy L. Associates Pvt. and is willing to invest in upgrading their skills. they are individuals with families and lives of their own outside the workplace. Attracting Talent From Campus Never before has it been more important for companies to recruit the best and brightest from the campuses of India’s business and engineering schools. The days are over when companies used to recruit raw talent. Team L. Associates Pvt. and help employees achieve a better balance between life work are likely to face fewer problems than those that do not. and is willing to share the benefits with her. L. Focusing on welfare measures proposition Employees are not just warm bodies.People do not like to work in black box like organizations. They prefer a transparent organization that is willing to share every aspect of its functioning with its employees. L. Companies that choose to do the latter will find it easier to retain their people since the training signals that the organization values their contribution. Promoting employees from within A company that constantly fills vacancies by hiring from outside is certain to face retention problems. Ltd. or retrain their existing employees. Associates Pvt. For Private Circulation Only . This is the day of attracting readymade knowledge worker. Ltd. Associates Pvt. Offering stock options ESOPS are a sign that the organization recognizes the role of the individual in its performance. companies may feel the need to hire employees with new skills. Growing your own is a sound retention strategy. R. R. Ltd. R. As campuses are being the natural filter of intelligence and managerial Compilation . Helping employees acquire new skills As the job-profiles and desired skills-sets for a particular job change. L. Ltd. train and polish them all the facts they needed. Employees who realize that they are unlikely to be promoted to fill the vacancies will leave the organization. Organizations that recognize this. R.

But according to research. Associates Pvt. R. the entry barrier to the business & engineering schools for students ensure the major source of top talent from their campuses. Composition of the team also reflects the seriousness of the Campus Recruitment. Shortlist campuses Gather the curricula and specialization of the business and engineering schools. L. mode of selection of students. In the last five years the highest annual salary has risen to almost 500%. Associates Pvt. one or more middle managers and senior executives. Associates Pvt. Most companies usually send a team of one senior HR Manager. Ltd. Concentrate on the schools whose curricula and specialization matches the needs of your organization.prowess. Ltd. . if possible ask your CEO or MD to address a pre-placement talk to the students and also include the alumni in the talk. it is not possible for every company to match that salary. It is also advisable to have a team within the age group of 30-45 Years. We know that Campuses are the major sources of talent. Team For Private Circulation Only L. Hence it is essential for the companies to prepare themselves adequately before entering any campuses. R. But it is not that easy to select the talent from that pool as there are more than 200 companies try scouting for management trainees from the campuses. Associates Pvt. Ltd. Compilation . the team should comprise of a Line Manager rather than a General Manager and have thorough knowledge of the company and the job. R. Pay smartly not highly In the present era wherein the compensation of a fresh recruitee from campus is touching new high every year. L.Courtesy L. also find out the faculty at the schools and the mix of teaching staff and visiting faculty. R. When you are competing with bigger companies to hire on campuses. Choose recruiting team carefully It is essential for the organization to develop a recruiting team from within. Ltd. L. R. This would help in getting the favourable response. Here are some insights for the organizations intend to hire talent from campuses.

Team . entrepreneurial options in their compensation package. Their highest priorities are • Level of responsibility • Degree of autonomy • Extent of elbow room • Potential and scope for learning Don’t oversell yourself The first flush of wide eyed MBAs eager for the best paying and most glamorous jobs has been replaced by hard nosed job seekers who can see through inflated claims. offer something unique or special. R.and nothing but facts. R. Associates Pvt. Don’t promise what you cannot deliver. Ltd. Present all the facts to the students. foreign placement. R. Ltd. But you won’t be taken seriously for many years to come.As for startup and other companies it is not possible to match the figure.A Learning Environment OR Chance to Work Abroad. R. L. You can lie and hire good people once. L.Courtesy L. L. Not just Living room include even your kitchen. For Private Circulation Only Compilation . Associates Pvt. Ltd. Get in early L. Associates Pvt. they should add ESOP. Campuses have long memories. These will immediately attract some of the students. Associates Pvt. It is better to have a focused USP . Ltd. Showcase corporate culture Business School Graduates are more interested in Culture than Cash. Instead of being something to everybody. R. You must make a bang at the PPT where your opening pitch to students will determine your place in the order in which companies will get the chance to hire MBAs from the campus. Present a clear image You cannot meet the requirements of all the people all the time.

It assesses early and makes job offers on the spot. Associates Pvt. Screen the applicants as carefully as those apply to ads. Identify the candidates’ orientation towards work by asking questions like “Just why do you want to work for us”. L. invite them for visits. Ltd. Offering him those qualities could well become your strongest point in campus hiring war” The best practices can be summed up as: Compilation . Sometimes. Ltd. Target all-rounders instead. R. Proctor & Gamble uses a rigorous selection process to pick summer trainees from B-School campuses every year ahead of placement time and putting them to work on live projects. try identifying your target students as early as possible and forge a bond between them and your company. R. Remember that toppers are often too narrowly specialized to be good general managers or too theoretical to enjoy managing. R. The group discussions and interviews that follow must validate the initial impression. L. ensuring that your selected candidate actually joins you can be tough since you could be competing with academic opportunities abroad. Associates Pvt. Offering scholarships to students. To avoid losing them. Flattered MBAs often remember and accept the offers when placements are conducted. Not everyone fits the bill The competition to hire on campus may camouflage the fact that you could still end up recruiting an unsuitable MBA. For Private Circulation Only . Building special relationships with particular B-Schools or Engineering-Schools could also get head-start in the hiring race.Courtesy L. Ltd. Associates Pvt. endowing chairs. R. Besides toppers are hot property. tracking changes in their career plans and offering counseling. Associates Pvt. “Today’s mba or engineer is looking for excitement and challenge as much as compensation and learning. R. Ltd. or sending your managers to teach on campuses will help build bridges with students earlier than your rivals. making competition tougher.Instead of waiting for the annual battle for the best brains. Team L. L. stay in touch with recruit elects.

Associates Pvt. Ltd. Associates Pvt. R. L. Ltd. L. Build relationships with institutes and students to grab them before rivals. L. Associates Pvt. Highlight your corporate culture as a good reason to work for your company Focus on career growth opportunities that your company offers to recruits. Team .Courtesy L. R. Ltd. Ltd. R. Associates Pvt. Include young line managers and B-School alumni in the recruiting team.• • • • • Build possibility of Stock Ownership into compensation package. R. L. For Private Circulation Only Compilation . R.

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