Labour Welfare Chapter 2

UNIT
HUMAN RESOURCE
DEVELOPMENT
CONCEPT OF HUMAN RESOURCE DEVELOPMENT (HRD)

Human Resource Development (HRD) is the framework for helping employees develop their personal
and organizational skills, knowledge and abilities. Human Resource Development includes such
opportunities as employee training employee career development, performance management and
development, coaching, mentoring, succession planning, key employee identification & organization
development.
HRD is mainly concerned with developing the skills, knowledge and competencies of people and
it is people-oriented concept. The concept of HRD is not yet well conceived by various authors though
they have defined the term from their approach as it is of recent origin and still is in the conceptualizing
stage. Many personnel managers and organisations view HRD as synonymous to training and
development. The concept was formally introduced by Leonard Nadler in 1969 as “those learning
experiences which are organised for a specific time and designed to bring about the possibility of
behavioural change.”
Training and
Better development Career planning
subordinate and development
superior relations Various Job
experiences
Leadership Human
development Resource
Development Development of
Education technology
Job
enrichment Team building
(Concept of HRD)
HRD from organisational point of view is a process in which the employees of an organisation are
helped/motivated to acquire and develop technical, managerial and behavioural knowledge, skills
and abilities, and mould the values, beliefs, attitude necessary to perform present and future roles by
realizing highest human potential with a view to contribute positively to the organisational, group,
individual and social goals.
(164)
Human Resource Development 165
Importance of HRD
Human resource development (HRD) is an essential component for growth and economic development.
It can occur at both the nationwide level and the firm-wide level. The enhancement of HRD of a
country is dependent on the government and national policies, while at the firm or micro level HRD
can happen through training and efficient utilization of resources. Resources are efficiently utilised to
support HRD when the maximum benefit is created at the lowest possible cost.
1. Economic Development. As the human resources of a country develop, the country progresses
and the benefits spread all over the country. Better skilled and well-trained human resources
attract a larger foreign direct investment into the country and improve the brand image of the
country internationally. HRD for an economy is dependent on the economic policy of the
government and the effort by the institutions in the economy to actively participate in the
development process.
2. Increase in Entrepreneurial Activity. Human resource development may occur as a result of
better education, training or development of vocational skills for individuals. This activity
results in an increase in entrepreneurial activity due to the creative process that is encouraged
by HRD. Moreover, even in an economy faced by high levels of unemployment, vocational
training can generate substantial number of entrepreneurs who look for self-employment. Thus,
HRD opens more options and wider avenues of success for individuals.
3. Increase in Productivity. HRD leads to better and efficient utilization of the available resources.
The same numbers of individuals are able to improve their performance through training or
learning of more productive skills. This leads to an increase in productivity in the same company
at the firm-wide level and to an increase in the overall value of goods produced at the country-
wide level. An increase in productivity of employees generates high economic progress for the
country.
4. Counteracting Social Taboos. HRD can lead to a change in social perception of many people
and can result in the development of the society. Better educated and skilled workers can think
and act more constructively and result in a change of the social environment. Improved education
leads to self-awareness and prevents individuals from embracing superstitions.
5. Human Rights. A better trained and educated workforce is well aware of its rights and is better
able to protect against human rights violations. Workplace environments improve and workers
rights are acknowledged with HRD.
6. Profitability At the firm-wide level, HRD leads to increased productivity and better client
service. This leads to increased revenues at reduced costs for the company. Most companies
today are focused on hiring a well-trained and competitive workforce in order to develop a
unique selling point and enhance their profitability.
7. Demographic Effect. HRD results in more households with two working parents. This provides
enhanced income for the household and at the same time reduces the time available to parents
for raising kids. As a result, a better educated workforce results in a smaller increase in the
population of the country. For countries like India, HRD can help prevent the population from
increasing beyond control.
Objectives of HRD
1. To provide a comprehensive framework for the overall personality of each and every person on
the organisation.
2. To develop the constructive mind and overall personality of each and every person in the
organisation.
166 Human Resource Management Specific
3. To develop the capabilities of each individual in relation to his present and extend the future
roles.
4. To develop and maintain high level of motivation of employees.
5. To develop dyadic relationship between each employee and every supervisor.
6. To develop the sense of team spirit, team work and inter team collaboration in the organisation.
7. To develop the overall health and self renewing capabilities.
8. To generate systematic information about human resource for the purpose of manpower
planning, placement, succession planning and the like.
Organisation of HRD Functions

1. Training and development. Training and development is aimed at improving or changing the
knowledge skills and attitudes of the employees. While training involves providing the
knowledge and skills required for doing a particular job to the employees, developmental
activities focus on preparing the employees for future job responsibilities by increasing the
capabilities of an employee which also helps him to perform his present job in a better way.
These activities start when an employee joins an organisation in the form of orientation and
skills training. After the employee becomes proficient, the HR activities focus on the development
of the employee through methods like coaching and counseling.
2. Organisation development. OD is the process of increasing the effectiveness of an organisation
along with the well being of its members with the help of planned interventions that use the
concepts of behavioral science. Both micro and macro changes are implemented to achieve
organisation development. While the macro changes are intended to improve the overall
effectiveness of the organisation the micro changes are aimed at individuals of small groups.
Employee involvement programmes requiring fundamental changes in work expectation,
reporting, procedures and reward systems are aimed at improving the effectiveness of the
organisation. The human resource development professional involved in the organisation
development intervention acts as an agent of change. He often consults and advising the line
manager in strategies that can be adopted to implement the required changes and sometimes
becomes directly involve in implementing these strategies.
3. Career development. It is a continuous process in which individual progresses through
different stages of career each having a relatively unique set of issues and tasks. Career
development comprises of two distinct processes. Career Planning and career management.
Whereas career planning involves activities to be performed by the employee, often with the
help of counselor and others, to assess his capabilities and skills in order to frame realistic
career plan. Career management involves the necessary steps that need to be taken to achieve
that plan. Career management generally focus more on the steps that an organisation that can
take to foster the career development of the employees.
Features of HRD
1. Planned and systematic Approach. HRD is a systematic and planned approach for the
development of individuals in order to achieve organisational, group and individual goals.
HRD is a continuous process for the development of technical, managerial, behavioural and
conceptual skills and knowledge HRD develops the skills and knowledge not only at the
individual but also at dyadic level, group level and organisational level.
2 . HRD is Inter-disciplinary Approach. It draws inputs from Engineering, Technology,
Psychology, Anthropology, management, Commerce, Economics, Medicine etc. HRD is
embodied with techniques and processes HRD is essential not only for manufacturing and
service industry but also for information technology industry.
3. HRD Recruiting the employees within the dimensions and possibilities for developing human
resources Selecting those employees having potentialities for development to meet the present
and future organisational needs. Analysing, appraising and developing performance of
employees as individuals, members of a group and organisations with a view to develop them
by identifying the gaps in skills and knowledge.
4. HRD Changes in Economic Policies. Changing job requirements Need for Multi-skilled Human
Resources Organisational viability and transformation process Technological Advances
Organisational complexity, and Human Relations.
5. HRD is Continuous Process. HRD is a continuous and dynamic process which believes in the
need for continues development of personnel to face the innumerable challenge in the functioning
of an organisation. It is based on the belief that there is no end to the development of an
individual and the learning process can continue throughout the life.
6. Both macro and micro aspects. HRD, at the macro level, HRD is described as the core of all the
development activities in the sense of improvement of the quality of work life of a nation. At the
micro level, HRD involves the improvement the quality of managers and workers so as to
achieve greater quality of managers and workers so as to achieve greater quality of productivity.
Aspect of HRD
m Systematic approach
m Continuous process
m Multi-disciplinary subject
m All pervasive
m Techniques
Scope of HRD
1. Recruitment and selection of employees for meeting the present and future requirements of an
organization.
2. Performance appraisal of the employees in order to understand their capabilities and improving
them through additional training.
3. Offering the employees performance counselling and performance interviews from the superiors.
Functions of Human Resource Development

HRD at Macro and Micro Level. HRD as stated earlier is mainly concerned with developing the
competencies of people. When we all see it as a people oriented concept then several questions come
to the mind like should the people be developed in the larger and national context or in the smaller
institutional context? Are they different at the macro level and micro level? As things stand now, HRD
applies to both institutional (micro) as well as national (macro issues). The main objective however is
to develop the newer capabilities in people so as to enable them to tackle both present and future
challenges while realizing organisational goals. However, it is useful both at macro and micro levels.
1. Macro level. At the macro level HRD is concerned with the development of people for the
nation’s well being. It takes health capabilities skills, attitudes of people which are more useful
to the development of the nation as a whole. While calculating the national income and economic
growth the prospective HRD concept examines the individual’s potentialities, their attitudes,
aspirations, skills, knowledge etc. and establishes a concrete base for economic planning.
However, HRD’s contribution at macro level has not gained popularity as yet.
2. Micro Levels. HRD is concern for development in the organisations at the grass root level.
Small wonder then, that HRD was well received by companies and managements as they
realized its importance and foresaw its future contribution for the individual and organisational
development. Generally HRD at micro level talks of the organisations’ manpower, planning,
selection, training, performance appraisal, development, potential appraisal, compensation,
organisational development etc. HRD’s involvement in all these areas is mainly with an objective
to develop certain new capabilities in people concerned to equip them to meet the present job
challenges and to accept future job requirements.
Differences Between HRD and Personnel

Personnel Function
(1) Maintenance oriented.
(2) An independent function with independent sub functions.
(3) Reactive functions responding to events as and when they take place.
(4) Exclusive responsibility of personnel department.
(5) Emphases is put on monetary rewards.
(6) Improved performances is the result of improved satisfaction and morale.
(7) Tries to improve the efficiency of people and administration.
Points of distinction: (1) Orientation (2) Structure (3) Philosophy (4) Responsibility (5) Motivators
(6) Outcomes (7) AIMS
Human resources development
(1) Development oriented.
(2) Consists of inter dependent parts.
(3) Proactive function, trying to anticipate and get ready with appropriate responses.
(4) Responsibility of all managers in the organisation.
(5) Emphasis is on higher order needs such as – how to design jobs with stretch pull and challenge
how to improve creativity and problem solving skills, how to empower people in all respects
etc.
(6) Better use of human resources leads to improved satisfaction and morale.
(7) It tries to develop the organisation and its culture as a whole.
Difference between HRM and Personnel Management
S.N. Dimension PM HRM
1. Employment contract Careful dimensions of Aim to go beyond
written contract contract
2. Rules Importance of devising Impatience with rules
clear rules
3. Guide to management action Procedures Business need
4. Behaviour referent Norms/customs & practices Values/mission
5. Managerial task vis-a-vis labour Monitoring Nurturing
6. Key relations Labour Customer
7. Initiatives Piecerneal Integrated
8. Speed of decision slow fast
9. Management role Transactional Transformational
S.N. Dimension PM HRM
10. Communication Indirect Direct
11. Management skill Negotiation Facilitation
12. Selection Separate Integrated
13. Pay Job Evaluation Performance related
14. Conditions Separately negotiated Harmonisation
15. Labour management Collective bargaining contracts Individual contracts
16. Jab categories and grades Many Few
17. Job design Division of labour Team work.
Instrument or Mechanism of HRD

1. Performance Appraisal. Performance appraisal have become increasingly important tools for
organisations to use in managing and improving the performance of employees, in making
timely and accurate staffing decisions and improving the overall quality of the firms products
and services. The appraisal process is the formal way of evaluating the employee’s performance.
Its purpose is to provide an accurate picture of post and future employee’s performance. To
meet this performance appraisal are set. The targets are based on job related criteria that best
determine successful job performance. Where possible actual performance is measured directly
and objectively. Using a wide variety of techniques, specialists select an appropriate method to
measure an employee’s actual performance against the previously set targets. The process is
used to strengthen the effort performance linkage. Appraisals help an organisation communicate
its expectations regarding performance and connection between performance and reward to
employees. They increase employees’ confidence and employees’ feedback that their efforts are
being adequately rewarded. The feedback is offered through an evaluation interview. Here the
rater tries to give both positive and negative sides of the employee performance. To be useful,
raters or supervisors should use HRD orientated appraisals as a mechanism to:
m Uncover difficulties faced by the subordinate while handling assigned task and try to
remove these hurdles.
m Understand the strengths and weaknesses of subordinates and help the subordinates
overcome the obstacles in the way.
m Encourage subordinates to meet problems head-on, accept responsibilities and face
challenges with confidence and courage.
m Plan for effective utilization of the talents of subordinates.
2. Potential Appraisal. The term ‘potential’ refers to the abilities possessed by an employee but not
put to use currently or the abilities to assume challenging responsibilities in future assignments.
The term ‘performance’ refers to one’s skills, abilities in meeting the requirements of the job which
one is holding currently. Potential appraisal is different from performance appraisal which
shows an employee’s current performance in his existing role. If the employee is required to play
a completely different set of roles at the higher levels, potential appraisal needs to be carried out
at regular intervals. “The objective of potential appraisal is to identify the potential of a given
employee to occupy higher positions in the organisational hierarchy and undertaken higher
technologies.” The appraisal is carried out on the basis of (i) supervisor’s observations;
(ii) performance data relating to various previous roles played by an employee; (iii) performance
on roles in simulating to a new position. A good potential appraisal system helps management
to pick up a suitable candidate for a given job and offer additional training, if necessary.
3. Career Planning. A career is a sequence of positions held by a person in the course of a lifetime.
Career planning is a process of integrating the employees’ needs and aspirations with
organisational needs. Career programmes and HR programmes are linked to the degree that
they help each individual meet individual and organisation requirements.
In the HRD system, the long term growth plans of a company are not kept secret. They are made
known to the employees. Major changes are discussed at all levels to promote understanding
and commitment among employees. The immediate concern of employees would be to find out
where do stand in such a road map. Do they have any chance to grow while building the
organisation brick by brick? Since managers have information about the growth plans of the
company, they need to transmit their information to their subordinates. The subordinates should
be assisted in planning their careers within the company. It is, however, not necessary that
each one of them would scale new heights every year but at least they are aware of the
opportunities and get ready for greater challenges ahead. Career planning doesn’t guaranty
success. But without it, employees are rarely prepared to encase the opportunities that come
their way.
4. Training and Employee Development. Training has gained importance in present day
environment where jobs are change rapidly. Training is a learning experience designed to
achieve a relatively permanent change in an individual that will improve the ability to perform
on the job. Employee development on the other hand is a future oriented training process,
focusing on the personal growth of the employee. Both training and development focus on
learning. Training programmes should not be designed as quick fixes for organisational
problems, nor should they depend on faddish techniques just because they are popular now
and are followed by our next door neighbour. Instead, training should be planned to meet the
specific needs of the organisation and its employees. To survive and grow in a competitive
environment, organisations have to motivate their employees to get ready for all kinds of future
challenges.
5. Organisation Development. Organisations are never perfectly static. They keep on changing.
Employees’ skills and abilities, therefore, require continual upgrading. The future is uncertain
when full of surprises. It is not easy to fight the force of change without adequate preparation
and training. A systematic planned way of managing this change is through the process of OD.
OD may be defined as a change effort that is planned, focused on an entire organisation or a
large subsystem, managed from the top, aimed at enhancing organisational health and
effectiveness and based on planned interventions made with the help of change agent or third
party who is well versed in the behavioural science.
6. Rewards. People do what they do to satisfy needs. They choose to behave in way which will
maximize their rewards. The most obvious reward is pay but there are many others. Intrinsic
rewards come from their job itself such as feelings of achievement, pride in doing a job etc.
Extrinsic rewards come from a source outside the job including pay, promotion and benefits
offered by management. Reward could be linked to performance as well to motivate high
achievers to do well. If rewards are allocated completely on non-performance factors such as
seniority, job titles etc. then employees are likely to reduce their efforts. Now a days organisations
also use team based rewards to motivate empowered work teams to exceed established targets.
7. Employee welfare & quality of work life (QWL). The term employee welfare means “the
efforts to make life worth living for workmen”. It includes various services, facilities & benefits
offered to employees by the employers, unions & govt. The purpose is to improve the living
standards of workers & thereby improve the quality of work life. Employees voluntarily extend
a number of benefits to employees in the hope that these indirect compensation plans motivate
employees to perform better. Over the years, the types of benefits offered have been expanding
in line with competitive pressures, changing job market trends, employee expectations, union
demands & legislative requirements.
Quality of work life (QWL) efforts are systematic efforts by organisations to give workers a
greater opportunity to affect the way they do their jobs & the contributions they make to the
organisation’s overall effectiveness. It is a way of empowering employees by giving them a
greater ‘say’ in the decision making process. QWL means having good working conditions,
good wages & benefits, good leadership & interesting, challenging jobs. QWL efforts include
the following:
m Suggestion programme. It is a formal method for generating, evaluating & implementing
employee ideas.
m Socio-technical systems. These are interventions in the work situation that redesign the
work, the workgroups & the relationship between workers and the technologies they use to
perform their jobs.
m Co-determination. In this method, representatives of workers meet management in a formal
way to discuss & vote important decisions that affect the lives of workers.
m HRD system focuses on employee welfare & QWL by continually examining employee
needs & meeting them to the best possible extent.
m Self-managed work teams. These are employee groups (also called autonomous
workgroups) with a high degree of decision-making, responsibility & behavioural control
for completing their work. The team is usually given the responsibility for producing an
entire product or service.
m Quality circles. These are small group of employees who meet regularly to find, analyze &
solve quality & other work-related problems of a particular department/section/area.
m Open door policies. Where open door policies exist, employees are free to walk into any
manager’s office with their problems & seek solutions to such problems.
m Employee involvement. Here employees are given the opportunity to participate in the
decisions that affect them & their relationship in the company.
8. Human resource information systems. Human resource information system (HRIS) is a method
by which an organisation collects, maintains & reports information on people & jobs, the
information is generally stored in a central human resource data bank, preferably in a computer
containing the following details:
m Personal data. Identification, education, reserved category, place of origin, etc.;
m Recruitment data. Entry date, grade in aptitude tests, grade in leadership tests;
m Experience data. Placement history, promotions, tasks performed grade wise;
m Appraisal data. Appraisal on each job, ratings of behaviours in a group, commitment to
overall goals, etc.;
m Training data. Nature of training received at each level, current training assignment, etc.;
m Miscellaneous. Health status, personal problems, security needs, record of incentives
received, absence & sickness data, etc.;
This information is put to use whenever there is a need to identify employees for certain special
assignments.
9. Job Rotation. The work task should be rotated among the employees so as broaden their field of
specialization as well as their knowledge about the organisation operation as a whole, the
work tasks, therefore, should be rotated one in a years among the various employees depending
upon their qualification and suitability to perform new roles.
10. Human resource planning. It is the process aimed at ensuring that the organisation will have
adequate number of qualified person, available at proper time, performing jobs which would
meet the need of the organisation and also prove the satisfaction for the individual involved. It
is endeavour to match the demand and supply for various types of human skill in the
organisation.
11. Recruitment, selection and placement. Recruitment is generation of application for specific
position for anticipated vacancies, the idols recruitment efforts will be generate adequate numbers
of suitable candidate, selection is the process of ascertaining the qualification, experience skill
knowledge, etc. of applicant with a view to appraising their suitability for a job. Placement is
the process of assigning the selected candidate with the most suitable job. It underlines the
need for placing the right men at the right job so that best result could be utilized.
12. Building morale and motivation among the employees. The organisation must give the constant
evidence to the belief that human resource in the organisation are the key of development. This
requires the proper motivation of the employees which provides the base for the management
function of planning and organising. A climate of creativity must be developed by the management
so that performance level come up to the mark and growth become the way of life.
13. Development of team work. The HRD section must try to develop a habit of the team work
among human resource, team work requires among others things, that the member have an
image of their own team mates, coincides as precisely as possible with reality.
14. Developing emotional intelligence. Human resources are considered greatest assets in any
organisation. It is thus essential to understand the role of emotional intelligence in enhancing
the productivity of the human resources to achieve the overall goal and success.
The Contribution of Subsystems to HRD Goals

The Contribution of HRD Subsystem to Development Dimension
Development dimensions HRD subsystems Mechanism
Individual Training Career planning Potential appraisal and
development
Feedback and Rewards
coaching performance
Individual in the Performance appraisal Training Feedback and
present role Rewards performance coaching
Individual in regard Potential appraisal and Training Performance appraisal
to likely future roles development Feedback and performance
coaching
Dyadic relationships Feedback and Performance Training
performance coaching appraisal
Teams & teamwork Organisation Training Team rewards
development
Collaboration among Organisation Training
different units/teams development
Self-renewing capability Performance Organisation Training
and health of appraisal development
organisation
The subsystems described already, contributes to the achievement of overall HRD goals performance
appraisal helps an individual to develop his current role capabilities. Potential appraisal focuses on
identifying the employee’s likely future roles within the organisation. Training helps an employee to
improve his job knowledge and skills. It enables an employee to do his current job more efficiently and
prepare himself for a higher level job. It bridges the gap between job requirements and employee’s
skills, knowledge and behaviour. Feedback and performance coaching helps the development of the
individual as well as interpersonal relationships. Organisation development aims at developing
team spirit and self-renewing skills. Welfare amenities, rewards and incentives improve the quality of
life of employees and make the work place a stimulating one for employees. The contribution of these
HRD subsystems to various development dimensions is shown in the table of previous page.
HRD Matrix
The HRD matrix shows the interrelationship between HRD instruments, processes, outcomes and
organisational effectiveness.
1. HRD Instruments. These include performance appraisal, counselling, role analysis, potential
development, training, communication policies, job rotations, rewards, job enrichment
programme, etc. These instruments may vary depending on the size of the organisation, the
internal environment, the support and commitment of the top management, the competitive
policies etc.
2. HRD Processes. The HRD instruments lead to the generation of HRD processes like role clarity,
performance planning, development climate, risk-taking, dynamism in employees. Such HRD
processes should result in more competent, satisfied and committed people that would make
the organisation grow by contributing their best to it.
3. HRD Outcomes. HRD instruments and processes make people more committed and satisfied,
where they tend to give their best to the organisation enthusiastically.
4. Organisational Effectiveness. The HRD outcomes influence the organisational effectiveness,
which in turn, depends on a number of variables like environment, technology, competitors, etc.
A Schematic Presentation of Linkages between HRD Instruments, Processes,

Outcomes and Organisational Effectiveness
HRD Climate. The HRD climate of an organisation plays a very important role in ensuring the
competency, motivation and development of its employees. The HRD climate can be created using
appropriate HRD systems and leadership styles of top management. The HRD climate is both a means
to an end as well as an end in itself. In the recent past simple instruments have been developed to
measure the HRD climate in organisations. These instruments are being widely used to assess
periodically the climate, maintain profiles and design interventions to further improve it. This unit
presents a detailed conceptual background of the HRD climate, various research studies available on
HRD climate and discusses an instrument to measure HRD climate that is being used by different
organisations. By the end of the unit the reader should be able to use the HRD climate survey
questionnaire to measure the HRD climate of his own organisation. Reader also will get an overview
of the HRD climate existing in different organisations.
HRD Climate and organisational climate. The conventional connotation with which the term ‘climate’
has been used in literature is ‘Organisational Climate’. The concept of climate with specific reference
to HRD context, i.e., HRD climate, has been recently introduced by Rao and Abraham (1986). Perhaps
it could be due to this reason that there is hardly any research work available in published literature.
HRD climate is an integral part of organisational climate. It can be defined as perceptions the
employee can have on the developmental environment of an organisation. This developmental climate
will have the following characteristics (Rao and Abraham, 1986):
m A tendency at all levels starting from top management to the lowest level to treat the people as
the most important resources.
m A perception that developing the competencies in the employees is the job of every manager/
supervisor.
m Faith in the capability of employees to change and acquire new competencies at any stage of
life.
m A tendency to be open in communications and discussions rather than being secretive (fairly
free expression of feeling).
m Encouraging risk taking and experimentation.
m Making efforts to help employees recognize their strengths and weaknesses through feedback
m A general climate of trust.
m A tendency on the part of employees to be generally helpful to each other and collaborate with
each other.
m Tendency to discourage stereotypes and favoritism.
m Supportive— Supportive HRD practices including performance appraisal, training, reward
management, potential development, job-rotation, career planning, etc.
Organisations differ in the extent to which they have these tendencies. Some organisations
may have some of these tendencies, some others may have only a few of these and few may have
most of these. It is possible to work out the profile of an organisation on the basis of these
tendencies.
m HRD climate contributes to the organisations’ overall health and self-renewing capabilities
which in turn, increase the enabling capabilities of individual, dyads, team and the entire
organisation.
Elements of HRD Climate

The elements of HRD climate can be grouped into three broad categories — general climate, OCTAPAC
culture and HRD mechanism. The general climate items deal with the importance given to human
resources development in general by the top management and line manager The OCTAPAC items
deal with the extent to which Openness, Confrontation. Trust, Autonomy, Proactively, Authenticity
and Collaboration are valued and promoted in the organisation. The items dealing with HRD
mechanisms measure the extent to which HRD mechanisms are implemented seriously. These three
groups were taken with following assumption :
(a) A general supportive climate is important for HRD if it has to be implemented effectively. Such
supportive climate consists of not only top management line management’s commitment but
good personnel policies and positive attitudes towards development.
(b) Successful implementation of HRD involves an integrated look at HRD and efforts to use as
many HRD mechanisms as possible. These mechanisms include: performance appraisal,
potential appraisal, career planning, performance rewards feedback and counselling, training,
employee welfare for quality work life, Job-rotation, etc.
(c) OCTAPAC culture is essential for facilitating HRD. Openness is there when: employees feel
free to discuss their ideas, activities and feelings with each other. Confrontation is bringing out
problems and issues into the open with a view to solving them rather than hiding them for fear
of hurting or getting hurt. Trust is taking people at their face value and believing what they say.
Autonomy is giving freedom to let people work independently with responsibility. Proactively
is encouraging employees to take initiative and risks. Authenticity is the tendency on the part
of people to do what they say. Collaboration is to accept interdependencies, to be helpful to
each other and work as teams.
The following factors may be considered as contributing to HRD climate:
(1) Top Management Style and Philosophy. A developmental style a belief in the capability of
people participative approach openness and receptivity to suggestions from the subordinates
are some of the dimensions that contribute to the creation of a positive HRD climate.
(2) Personnel Policies. Personnel policies that show high concern for employees, that emphasize
equity and objectivity in appraisals policies that emphasize sufficient resource allocation for
welfare and developmental activities, policies that emphasize a collaborative attitude and
trust among the people go a long way in creating the HRD climate.
(3) HRD Instruments and Systems. A number of HRD instruments have been found to generate a
good HRD climate. Particularly open systems of appraisal with emphasis of counselling, career
development systems, informal training mechanisms, potential development systems etc.
contribute to HRD climate.
(4) Self-renewal Mechanisms. Organisations that have built in self-renewal mechanisms are
likely to generate a positive HRD climate.
(5) Attitudes of Personnel and URD Staff. A helpful and supportive attitude on the part of HRD
and personnel people plays a very critical role in generating the HRD climate. If the personal
behaviour of any of these agents is not supportive, the HRD climate is likely to be vitiated.
(6) Commitment or Line Managers. The commitment of line managers to the development of their
subordinates is a very important determiner of HRD climate.
Principles in Designing HRD System

There have been many queries regarding the principles of Human Resource development. Many a
times we get confused between principles and functions of HRD however there is a clear cut distinction
between the two. The main functions of HRD are Training, Personal development, Organisational
development, Career planning and development and Change Management. The principles therefore
are not the functions.
HRD systems must be designed differently for different organisations. Although the basic principles
may remain the same, the specific components, their relationships, the processes involved in each, the
phasing, and so on, may differ from one organisation to another organisation. Designing an integrated
HRD system requires a thorough understanding of the principles and models of human resource
development and a diagnosis of the organisation culture, existing HRD practices in the organisation,
employee perceptions of these practices, and the developmental climate within the organisation.
The following principles related to focus, structure, and functioning should be considered when
designing integrated HRD systems.
m Focus on enabling capabilities. The primary purpose of HRD is to help the organisation to
increase its “enabling” capabilities. These include development of human resources,
development of organisational health, improvement of problem solving capabilities,
development of diagnostic ability (so that problems can be located quickly and effectively), and
increased employee productivity and commitment.
m Balancing adaptation and change in the organisational culture. Although HRD systems are
designed to suit the organisational culture, the role of HRD may be to modify that culture to
increase the effectiveness of the organisation. There always has been a controversy between
those who believe that HRD should be designed to suit the culture and those who believe that
HRD should be able to change the culture. Both positions seem to be extreme. HRD should take
the organisation forward, and this can be done only if its design anticipates change and
evolution in the future.
m Attention to contextual factors. What is to be included in the HRD systems, how is it to be sub-
divided, what designations and titles will be used, and similar issues should be settled after
consideration of the various contextual factors of the organisation—its culture and tradition,
size, technology, levels of existing skills, available support for the function, availability of
outside help and so on.
m Building linkages with other functions. Human resource development systems should be
designed to strengthen other functions in the company such as long-range corporate planning,
budgeting and finance, marketing, production, and other similar functions. These linkages are
extremely important.
m Balancing specialization and diffusion of the function. Although HRD involves specialised
functions, line people should be involved in various aspects of HRD. Action is the sole
responsibility of the line people, and HRD should strengthen their roles.
m Ensuring respectability for the function. In many companies, the personnel function does not
have much credibility because it is not perceived as a major function within the organisation.
It is necessary that HRD be instituted at a very high level in the organisation and that the head
of the HRD department is classified as a senior manager. Both the credibility and usefulness of
HRD depend on this.
m Balancing differentiation and integration. The human resource development function often
includes personnel administration, human resource development and training, and industrial
relations. These three functions have distinct identities and requirements and should be
differentiated within the HRD department. One person may be responsible for OD, another for
training, another for potential appraisal and assessment, etc. At the same time, these roles
should be integrated through a variety of mechanisms. For example, inputs from manpower
planning should be available to line managers for career planning and HRD units for potential
appraisal and development. Data from recruitment should be fed into the human resources
information system. If salary administration and placement are handled separately, they should
be linked to performance appraisals. Differentiation as well as integration mechanisms are
essential if the HRD system is to function well.
m Establishing linkage mechanisms. HRD has linkages with outside systems as well as
with internal sub-systems. It is wise to establish specific linkages to be used to manage the
system. Standing committees for various purposes (with membership from various parts and
levels of the organisation), task groups, and ad hoc committees’ for specific tasks are useful
mechanisms.
m Developing monitoring mechanisms. The HRD function is always evolving. It therefore requires
systematic monitoring to review the progress and level of effectiveness of the system and to
plan for its next step. A thorough annual review reappraisal every three years will be invaluable
in reviewing and planning the system. It may be helpful to include persons from other functions
in the organisation in the HRD assessment effort.
PERFORMANCE APPRAISAL
Meaning and Definition of Performance Appraisal
Appraisal refers to the rating or evaluation of the worth, merit or effectiveness. Performance appraisal
implies the formal and systematic evaluation of performance on the job. Almost every large organisation
has a formal system of evaluating work performance of its employees because its success depends
upon such performance. Performance refers to the degree of accomplishment of the tasks and it is
measured in terms of results. Performance appraisal is the process of evaluating the performance and
qualifications of the employee in terms of the requirements of the job for which he is employed.
According to Flippo, “Performance appraisal is the systematic, periodic and an impartial rating of an
employee’s excellence in matters pertaining to his present job and of his potentialities for a better job.
The performance appraisal is the process of assessing employee performance by way of comparing
present performance with already established standards which have been already communicated to
employees, subsequently providing feedback to employees about their performance level for the purpose
of improving their performance as needed by the organisation.
As said above the very purpose of performance uprising is to know performance of employee,
subsequently to decide whether training is needed to particular employee or to give promotion with
additional pay hike. Performance appraisal is the tool for determining whether employee is to be
promoted, demoted or sacked ( remove ) in case of very poor performance and no scope for improvement.
Every corporate sector uses performance appraisal as a tool for knowing about the employee and
take decisions about particular employee. For the purpose of performance appraisal of employees
there are different methods under the category of traditional methods and modern methods which are
discussed in following chapters.
Appraising the performance of individuals, groups and organisations is a common practice of all
societies. While in some instances the appraisal processes are structured and formally sanctioned, in
other instances they are an informal and integral part of daily activities. Thus, teachers evaluate the
performance of students, bankers evaluate the performance of creditors, parents evaluate the behaviour
of the children, and all of us, consciously or unconsciously evaluate our own actions from time to time.
“Performance appraisal” has been identified as one of the most complex of man-management
activities. It is often a difficult and emotion laden process. Performance appraisal has become part of
organisational life. Every organisation has some kind of evaluating the performance of its personnel.
Meaning
Appraisals are judgments of the characteristics, traits and performance of others. On the basis of these
judgments we assess the worth or value of others and identify what is good or bad. In industry
performance appraisal is a systematic evaluation of employees by supervisors. Employees also wish
to know their position in the organisation. Appraisals are essential for making many administrative
decisions: selection, training, promotion, transfer, wage and salary administration etc. Besides they
aid in personnel research.
Performance Appraisal thus is a systematic and objective way of judging the relative worth of
ability of an employee in performing his task. Performance appraisal helps to identify those who are
performing their assigned tasks well and those who are not and the reasons for such performance.
Definitions
Performance appraisal has been defined by different scholars in various ways. Some of the important
definitions are as follows:
m Heyel, “It is the process of evaluating the performance and qualifications of the employees in
terms of the requirements of the job for which he is employed, for purposes of administration
including placement, selection for promotions, providing financial rewards and other actions
which require differential treatment among the members of a group as distinguished from
actions affecting all members equally.”
m Dale S. Beach, “Performance appraisal is systematic evaluation of the individual with respect
to his or her performance on the job and his or her potential for development”.
m Dale Yoder, ‘’Performance appraisal includes all formal procedures used to evaluated
personalities and contributions and potentials of group members in a working organisation. It
is a continuous process to secure information necessary for making correct and objective
decisions on employees.”
m Randall S. Schuler, “Performance appraisal is a formal, structured system of measuring and
evaluating an employee’s job, related behaviour and outcomes to discover how and why the
employee is presently perfuming on the job and how the employee can perform more effectively
in the future so that the employee, organisation, and society all benefit.”
Objectives of Performance Appraisal

Performance appraisal is a method of evaluating the job performance of an employee. It is an ongoing
process of obtaining, researching, analyzing and recording information about the worth of an employee.
The main objective of performance appraisals is to measure and improve the performance of
employees and increase their future potential and value to the company. Other objectives include
providing feedback, improving communication, understanding training needs, clarifying roles and
responsibilities and determining how to allocate rewards.
m Provide Feedback. The feedback received by the employee can be helpful in many ways. It
gives insight to how superiors value your performance, highlights the gap between actual and
desired performance and diagnoses strengths and weaknesses as wells as shows areas for
improvement.
m Improve Communication. The method of performance appraisals helps superiors strengthen
relationships and improve communication with employees.
m Training Needed. These appraisals also identify the necessary training and development the
employee needs to close the gap between current performance and desired performance.
m Clarify Expectations. Performance appraisals should clarify roles, responsibilities and
expectations of all employee
m Allocate Rewards. Performance appraisals reduce employee grievances by clearly documenting
the criteria used to make organisational decisions such as promotions, raises or disciplinary
actions.
Others Objectives of Performance Appraisal
m To judge the effectiveness of the other human resource functions of the organisation such as
recruitment, selection, training and development.
m Provide information to assist in the other personal decisions in the organisation.
m To review the performance of the employees over a given period of time.
m To judge the gap between the actual and the desired performance.
m To help the management in exercising organisational control.
m Helps to strengthen the relationship and communication between superior – subordinates and
management – employees.
m To diagnose the strengths and weaknesses of the individuals so as to identify the training and
development needs of the future.
m To reduce the grievances of the employees.
m To provide feedback to the employees regarding their past performance.
m Provide clarity of the expectations and responsibilities of the functions to be performed by the
employees.
Purpose of Performance Appraisal

m Providing Feedback. Providing feedback is the most common justification for an organisation
to have a performance appraisal system. Through its performance appraisal process the
individual learns exactly how well he/she did during the previous twelve months and can
then use that information to improve his/her performance in the future. In this regard,
performance appraisal serves another important purpose by making sure that the boss’s
expectations are clearly communicated.
m Facilitating Promotion Decisions. Almost everyone in an organisation wants to get ahead.
How should the company decide who gets the brass rings? Performance appraisal makes it
easier for the organisation to make good decisions about making sure that the most important
positions are filled by the most capable individuals.
m Facilitating Layoff or Downsizing Decisions. If promotions are what everybody wants, layoffs
are what everybody wishes to avoid. But when economic realities force an organisation to
downsize, performance appraisal helps make sure that the most talented individuals are
retained and that only the organisation’s marginal performers are cut loose.
m Encouraging Performance Improvement. How can anyone improve if he doesn’t know how
he’s doing right now? A good performance appraisal points out areas where individuals need
to improve their performance.
m Motivating Superior Performance. This is another classic reason for having a performance
appraisal system. Performance appraisal helps motivate people to deliver superior performance
in several ways. First, the appraisal process helps them to learn just what it is that the
organisation considers to be ‘‘superior.’’ Second, since most people want to be seen as superior
performers, a performance appraisal process provides them with a means to demonstrate what
that they actually are? Finally, performance appraisal encourages employees to avoid being
stigmatized as inferior performers (or, often worse, as merely ‘‘average’’).
m Setting and Measuring Goals. Goal setting has consistently been demonstrated as a management
process that generates superior performance. The performance appraisal process is commonly
used to make sure that every member of the organisation sets and achieves effective goals.
m Counselling Poor Performers. Not everyone meets the organisation’s standards. Performance
appraisal forces managers to confront those whose performance is not meeting the company’s
expectations.
m Determining Compensation Changes. This is another classic use of performance appraisal.
Almost every organisation believes in pay for performance. But how can pay decisions be made
if there is no measure of performance? Performance appraisal provides the mechanism to make
sure that those who do better work receive more pay.
m Encouraging Coaching and Mentoring. Managers are expected to be good coaches to their
team members and mentors to their proteges. Performance appraisal identifies the areas where
coaching is necessary and encourages managers to take an active coaching role.
m Supporting Manpower Planning. Well-managed organisations regularly assess their bench
strength to make sure that they have the talent in their ranks that they will need for the future.
Companies need to determine who and where their most talented members are. They need to
identify the departments that are rich with talent and the ones that are suffering a talent drought.
Performance appraisal gives companies the tool they need to make sure they have the intellectual
horsepower required for the future.
m Determining Individual Training and Development Needs. If the performance appraisal
procedure includes a requirement that individual development plans be determined and
discussed, individuals can then make good decisions about the skills and competencies they
need to acquire to make a greater contribution to the company. As a result, they increase their
chances of promotion and lower their odds of layoff.
m Determining Organisational Training and Development Needs. Would the organisation be
better off sending all of its managers and professionals through a customer service training
program or one on effective decision making? By reviewing the data from performance appraisals,
training and development professionals can make good decisions about where the organisation
should concentrate company-wide training efforts.
m Validating Hiring Decisions. Is the company hiring stars, or is it filling itself with trolls? Only
when the performance of newly hired individuals is assessed can the company learn whether
it is hiring the right people.
m Providing Legal Defensibility for Personnel Decisions. Almost any personnel decision—
termination, denial of a promotion, transfer to another department—can be subjected to legal
scrutiny. If one of these is challenged, the company must be able to demonstrate that the decision
it made was not based on the individual’s race or handicap or any other protected aspect. A
solid record of performance appraisals greatly facilitates legal defensibility when a complaint
about discrimination is made.
m Improving Overall Organisational Performance. This is the most important reason for an
organisation to have a performance appraisal system. A performance appraisal procedure
allows the organisation to communicate performance expectations to every member of the team
and assess exactly how well each person is doing. When everyone is clear on the expectations
and knows exactly how he is performing against them, this will result in an overall improvement
in organisational success.
Benefits of Performance Appraisal
m Motivation and Satisfaction
Performance appraisal can have a profound effect on levels of employee motivation and
satisfaction - for better as well as for worse.
Performance appraisal provides employees with recognition for their work efforts. The power
of social recognition as an incentive has been long noted. In fact, there is evidence that human
beings will even prefer negative recognition in preference to no recognition at all. If nothing
else, the existence of an appraisal program indicates to an employee that the organisation is
genuinely interested in their individual performance and development. This alone can have a
positive influence on the individual’s sense of worth, commitment and belonging.
The strength and prevalence of this natural human desire for individual recognition should not
be overlooked. Absenteeism and turnover rates in some organisations might be greatly reduced
if more attention were paid to it. Regular performance appraisal, at least, is a good start.
m Training and Development
Performance appraisal offers an excellent opportunity - perhaps the best that will ever occur -
for a supervisor and subordinate to recognize and agree upon individual training and
development needs.
During the discussion of an employee’s work performance, the presence or absence of work skills
can become very obvious - even to those who habitually reject the idea of training for them.
Performance appraisal can make the need for training more pressing and relevant by linking it
clearly to performance outcomes and future career aspirations.
From the point of view of the organisation as a whole, consolidated appraisal data can form a
picture of the overall demand for training. This data may be analysed by variables such as sex,
department, etc. In this respect, performance appraisal can provide a regular and efficient
training needs audit for the entire organisation.
m Recruitment and Induction
Appraisal data can be used to monitor the success of the organisation’s recruitment and
induction practices. For example, how well are the employees performing who were hired in
the past two years?
Appraisal data can also be used to monitor the effectiveness of changes in recruitment strategies.
By following the yearly data related to new hires (and given sufficient numbers on which to
base the analysis) it is possible to assess whether the general quality of the workforce is
improving, staying steady, or declining.
m Employee Evaluation
Though often understated or even denied evaluation is a legitimate and major objective of
performance appraisal.
But the need to evaluate (i.e., to judge) is also an ongoing source of tension, since evaluative and
developmental priorities appear to frequently clash. Yet at its most basic level, performance
appraisal is the process of examining and evaluating the performance of an individual.
Though organisations have a clear right - some would say a duty - to conduct such evaluations
of performance, many still recoil from the idea. To them, the explicit process of judgment can be
dehumanizing and demoralizing and a source of anxiety and distress to employees.
It is been said by some that appraisal cannot serve the needs of evaluation and development at
the same time; it must be one or the other.
But there may be an acceptable middle ground, where the need to evaluate employees objectively,
and the need to encourage and develop them, can be balanced.
Process of Performance Appraisal

Performance appraisal is planned, developed and implemented through a series of steps
m Establish performance standards
m Communicate the standards
m Measure actual performance
m Compare actual performance with standards and discuss the appraisal
m Taking corrective action, if necessary
1. Establish performance standards. Appraisal systems require performance standards, which
serve as benchmarks against which performance is measured. To be useful, standards should
relate to the desired results of each job. What about those appraisals which are carried out
without any clear-cut criteria. Performance standards must be clear to both the appraiser and
the appraisee. The performance standards or goals must be developed after a thorough analysis
of the job. Goals must be written down. Just talking about them is not enough. They must be
measurable within certain time and cost considerations. For example, the regional sales office
may be asked: “The sales of colour television sets in Ghaziabad must increase by 1000 per
month in the next 6 months and the budget toward promotional expenses would Rs 5,000 per
month.”
TABLE Criteria for Identifying and Writing Good Performance Goal
What is the task to be What will it look like when When must it What are the
accomplished? it is accomplished? be completed? cost considerations?
2. Communicate the standards. Performance appraisal involves at least two parties; the appraiser
who does the appraisal and the appraisee whose performance is being evaluated. Both are
expected to do certain things. The appraiser should prepare job descriptions clearly; help
appraisee set his goals and targets; analyze results objectively; offer coaching and guidance to
appraisee whenever required and reward good results. The appraisee should be very clear
about what he is doing and why he is doing. For this purpose, the performance standards must
be communicated to appraisees and their reactions be noted down initially. If necessary, these
standards must be revised or modified. As pointed out by De Cenzo and Robbins, “too many
jobs have vague performance standards and the problem is compounded when these standards
are set in isolation and do not involve the employee”.
3. Measure actual performance. After the performance standards are set and accepted, the next
step is to measure actual performance. This requires the use of dependable performance
measures, the ratings used to evaluate performance. Performance measures, to be helpful must
be easy to use, be reliable and report on the critical behaviors that determine performance. Four
common sources of information which are generally used by managers regarding how to
measure actual performance: personal observation, statistical reports, oral reports and written
reports. Performance measures may be objective or subjective. Objective performance measures
are indications of job performance that can be verified by others and are usually quantitative.
Objective criteria include quality of production, degree of training needed and accidents in a
given period, absenteeism, length of service, etc. Subjective performance measures are ratings
that are based on the personal standards of opinions of those doing the evaluation and are not
verifiable by others. Subjective criteria include ratings by superiors, knowledge about overall
goals, contribution to socio-cultural values of the environment. It should be noted here that
objective criteria can be laid down while evaluating lower level jobs which are specific and
defined clearly. This is not the case with middle level positions that are complex and vague.
4. Compare actual performance with standards and discuss the appraisal. Actual performance
may be better than expected and sometimes it may go off the track. Whatever be the consequences,
there is a way to communicate and discuss the final outcome. The assessment of another
person’s contribution and ability is not an easy task. It has serious emotional overtones as it
affects the self-esteem of the appraisee. Any appraisal based on subjective criteria is likely to be
questioned by the appraisee and leave him quite dejected and unhappy when the appraisal
turns out to be negative.
5. Taking corrective action, if necessary. Corrective action is of two types. The one which puts
out the fires immediately and other one which strikes at the root of the problem permanently.
Immediate action sets things right and get things back on track whereas the basic corrective
action gets to the source of deviations and seeks to adjust the difference permanently. Basic
corrective steps seek to find out how and why performance deviates.
Who Will Appraise

The appraiser may be any person who has thorough knowledge about the job content, contents to be
appraised, standards of contents and who observes the employee while performing a job. The appraiser
should be capable of determining what is more important and what is relatively less important. He
should prepare reports and make judgments without bias. Typical appraisers are: supervisors, peers,
subordinates, employees themselves and users of services and consultants.
m Supervisors. Supervisors include superiors of the employee, other superiors having knowledge
about the work of the employee and departmental head or manager. The general practice is that
immediate superiors appraise the performance, which in turn, is reviewed by the departmental
head/manager. This is because supervisors are responsible for managing their subordinates
and they have the opportunity to observe, direct and control the subordinates continuously.
Moreover, they are accountable for the successful performance of their subordinates. Sometimes
other supervisors, who have close contact with employee work also appraise with a view to
provide additional information.
m On the negative side, immediate supervisors may emphasize certain aspects of employee
performance to the neglect of others. Also, managers have been known to manipulate evaluations
to justify their decisions on pay increases and promotions. However, the immediate supervisor
will continue to evaluate employee performance till a better alternative is available.
Organisations, no doubt, will seek alternatives because of the weaknesses mentioned above
and a desire to broaden the perspective of the appraisal.
m Peers. Peer appraisal may be reliable if the work group is stable over a reasonably long period
of time and performs tasks that require interaction. However, little research has been conducted
to determine how peers establish standards for evaluating others or the overall effect of peer
appraisal on the group’s attitude. Whatever research was done on this topic was mostly done
on military personnel at the management or pre-management level (officers or officer candidates)
rather than on employees in business organisations. More often than not in business
organisations if employees were to be evaluated by their peers, the whole exercise may degenerate
into a popularity contest, paving the way for the impairment of work relationships.
m Subordinates. The concept of having superiors rated by subordinates is being used in most
organisations today, especially in developed countries. For instance in most US universities
students evaluate a professor’s performance in the classroom. Such a novel method can be
useful in other organisational settings too provided the relationships between superiors and
subordinates are cordial. Subordinates’ ratings in such cases can be quite useful in identifying
competent superiors. The rating of leaders by combat soldiers is an example. However, the fear
of reprisal often compels a subordinate to be dishonest in his ratings. Though useful in
universities and research institutions, this approach may not gain acceptance in traditional
organisations where subordinates practically do not enjoy much discretion.
m Self-appraisal. If individuals understand the objectives they are expected to achieve and the
standards by which they are to be evaluated, they are to a great extent, in the best position to
appraise their own performance. Also, since employee development means self-development,
employees who appraise their own performance may become highly motivated.
m Users of services. Employees’ performance in service organisations relating to behaviors,
promptness, speed in doing the job and accuracy can be better judged by the customers or users
of services. For example, a teacher’s performance is better judged by students and the
performance of a conductor a bus is better judged by passengers.
m Consultants. Sometimes consultants may be engaged for appraisal when employees or
employers do not trust the supervisory appraisal and management does not trust the self-
appraisal or peer appraisal or subordinate appraisal. In this situation, consultants are trained
and they observe the employee at work for sufficiently long periods for the purpose of appraisal.
m In view of the limitations associated with each and every method discussed above, several
organisations follow a multiple rating system wherein several superiors separately fill out
rating forms on the same subordinate. The results are then tabulated.
Performance Appraisal Biases

Managers commit mistakes while evaluating employees and their performance. Biases and judgment
errors of various kinds may spoil the performance appraisal process. Bias here refers to inaccurate
distortion of a measurement. These are:
1. First Impression (primacy effect). Raters form an overall impression about the ratee on the
basis of some particular characteristics of the ratee identified by them. The identified qualities
and features may not provide adequate base for appraisal.
2. Halo Effect. The individual’s performance is completely appraised on the basis of a perceived
positive quality, feature or trait. In other words this is the tendency to rate a man uniformly high
or low in other traits if he is extra-ordinarily high or low in one particular trait. If a worker has
few absences, his supervisor might give him a high rating in all other areas of work.
3. Horn Effect. The individual’s performance is completely appraised on the basis of a negative
quality or feature perceived. This results in an overall lower rating than may be warranted. “He
is not formally dressed up in the office. He may be casual at work too!”.
4. Excessive Stiffness or Lenience. Depending upon the raters own standards, values and physical
and mental makeup at the time of appraisal, ratees may be rated very strictly or leniently. Some
of the managers are likely to take the line of least resistance and rate people high, whereas
others, by nature, believe in the tyranny of exact assessment, considering more particularly the
drawbacks of the individual and thus making the assessment excessively severe. The leniency
error can render a system ineffective. If everyone is to be rated high, the system has not done
anything to differentiate among the employees.
5. Central Tendency. Appraisers rate all employees as average performers. That is, it is an attitude
to rate people as neither high nor low and follow the middle path. For example, a professor,
with a view to play it safe, might give a class grade near the equal to B, regardless of the
differences in individual performances.
6. Personal Biases. The way a supervisor feels about each of the individuals working under him
- whether he likes or dislikes them - as a tremendous effect on the rating of their performances.
Personal Bias can stem from various sources as a result of information obtained from colleagues,
considerations of faith and thinking, social and family background and so on.
7. Spillover Effect. The present performance is evaluated much on the basis of past performance.
“The person who was a good performer in distant past is assured to be okay at present also”.
8. Recency Effect. Rating is influenced by the most recent behaviour ignoring the commonly
demonstrated behaviours during the entire appraisal period.
Poor Appraisal Forms

The appraisal process might also be influenced by the following factors relating to the forms that are
used by raters:
m The rating scale may be quite vague and unclear
m The rating form may ignore important aspects of job performance.
m The rating form may contain additional, irrelevant performance dimensions.
m The forms may be too long and complex.
m Lack of rater preparedness. The raters may not be adequately trained to carry out performance
management activities. This becomes a serious limitation when the technical competence of a
ratee is going to be evaluated by a rater who has limited functional specialization in that area.
The raters may not have sufficient time to carry out appraisals systematically and conduct
thorough feedback sessions. Sometimes the raters may not be competent to do the evaluations
owing to a poor self-image and lack of self-confidence. They may also get confused when the
objectives of appraisal are somewhat vague and unclear.
m Ineffective organisational policies and practices. If the sincere appraisal effort put in by a rater
is not suitably rewarded, the motivation to do the job thoroughly finishes off. Sometimes, low
ratings given by raters are viewed negatively by management – as a sign of failure on the part
of rater or as an indication of employee discontent. So, most employees receive satisfactory
ratings, despite poor performance. Normally, the rater’s immediate supervisor must approve
the ratings. However, in actual practice, this does not happen. As a result the rater ‘goes off the
hook’ and causes considerable damage to the rating process.
m Essential Characteristics of an Effective Appraisal System. Performance appraisal system
should be effective as a number of crucial decisions are made on the basis of score or rating
given by the appraiser, which in turn, is heavily based on the appraisal system. Appraisal
system, to be effective, should possess the following essential characteristics:
n Reliability and validity. Appraisal system should provide consistent, reliable and valid
information and data, which can be used to defend the organisation – even in legal
challenges. If two appraisers are equally qualified and competent to appraise an employee
with the help of same appraisal technique, their ratings should agree with each other.
Then the technique satisfies the conditions of inter-rater reliability. Appraisals must also
satisfy the condition of validity by measuring what they are supposed to measure. For
example, if appraisal is made for potential of an employee for promotion, it should supply
the information and data relating to potentialities of the employee to take up higher
responsibilities and carry on activities at higher level.
n Job relatedness. The appraisal technique should measure the performance and provide
information in job related activities/areas.
n Standardization. Appraisal forms, procedures, administration of techniques, ratings, etc.,
should be standardized as appraisal decisions affect all employees of the group.
n Practical viability. The techniques should be practically viable to administer, possible to
implement and economical to undertake continuously.
n Legal sanction. Appraisals must meet the laws of the land. They must comply with
provisions of various acts relating to labor.
n Training to appraisers. Because appraisal is important and sometimes difficult, it would be
useful to provide training to appraisers viz., some insights and ideas on rating, documenting
appraisals and conducting appraisal interviews. Familiarity with rating errors can improve
rater’s performance and this may inject the needed confidence in appraisers to look into
performance ratings more objectively.
n Open communication. Most employees want to know how well they are performing the job.
A good appraisal system provides the needed feedback on a continuing basis. The appraisal
interviews should permit both parties to learn about the gaps and prepare themselves for
future. To this end, managers should clearly explain their performance expectations to
their subordinates in advance of the appraisals period. Once this is known, it becomes
easy for employees to learn about the yardsticks and, if possible, try to improve their
performance in future.
n Employee access to results. Employees should know the rules of the game. They should
receive adequate feedback on their performance. If performance appraisals are meant for
improving employee performance, then withholding appraisal result would not serve any
purpose. Employees simply cannot perform better without having access to this information.
Permitting employees to review the results of their appraisal allows them to detect any
errors that may have been made. If they disagree with the evaluation, they can even challenge
the same through formal channels.
n Due process. It follows then that formal procedures should be developed to enable
employees who disagree with appraisal results (which are considered to be inaccurate or
unfair). They must have the means for pursuing their grievances and having them addressed
objectively.
m Performance appraisal should be used primarily to develop employees as valuable resources.
Only then it would show promising results. When management uses it as a whip or fails to
understand its limitations, it fails. The key is not which form or which method is used (Mathis
and Jackson).
Methods of Performance Appraisal
Under the individual evaluation methods of merit rating, employees are evaluated one at a time
without comparing them with other employees in the organisation.
(1) Confidential report. It is mostly used in government organisations. It is a descriptive report
prepared, generally at the end of every year, by the employee’s immediate superior. The report
highlights the strengths and weaknesses of the subordinate. The report is not data based. The
impressions of the superior about the subordinate are merely recorded there. It does not offer
any feedback to the appraisee. The appraisee is not very sure about why his ratings have fallen
despite his best efforts, why others are rated high when compared to him, how to rectify his
mistakes, if any; on what basis he is going to be evaluated next year, etc. Since the report is
generally not made public and hence no feedback is available, the subjective analysis of the
superior is likely to be hotly contested. In recent years, due to pressure from courts and trade
unions, the details of a negative confidential report are given to the appraisee.
(2) Essay evaluation. Under this method, the rater is asked to express the strong as well as weak
points of the employee’s behaviour. This technique is normally used with a combination of the
graphic rating scale because the rater can elaborately present the scale by substantiating an
explanation for his rating. While preparing the essay on the employee, the rater considers the
following factors: (i) Job knowledge and potential of the employee; (ii) Employee’s understanding
of the company’s programmes, policies, objectives, etc.; (iii) The employee’s relations with co-
workers and superiors; (iv) The employee’s general planning, organising and controlling ability;
(v) The attitudes and perceptions of the employee, in general.
Essay evaluation is a non-quantitative technique. This method is advantageous in at least one
sense, i.e., the essay provides a good deal of information about the employee and also reveals
more about the evaluator.
(3) Critical incident technique. Under this method, the manager prepares lists of statements of
very effective and ineffective behaviour of an employee. These critical incidents or events
represent the outstanding or poor behaviour of employees on the job. The manager maintains
logs on each employee, whereby he periodically records critical incidents of the workers
behaviour. At the end of the rating period, these recorded critical incidents are used in the
evaluation of the workers’ performance. An example of a good critical incident of a sales
assistant is the following:
July 20 – The sales clerk patiently attended to the customer’s complaint. He is polite, prompt, enthusiastic
in solving the customers’ problem. On the other hand the bad critical incident may appear as under: July
20 – The sales assistant stayed 45 minutes over on his break during the busiest part of the day. He failed
to answer the store manager’s call thrice. He is lazy, negligent, stubborn and uninterested in work.
This method provides an objective basis for conducting a thorough discussion of an employee’s
performance. This method avoids recency bias (most recent incidents get too much emphasis).
Most frequently, the critical incidents technique of evaluation is applied to evaluate the
performance of superiors rather than of peers of subordinates.
(4) Checklists and weighted checklists. Another simple type of individual evaluation method is
the checklist. A checklist represents, in its simplest form, a set of objectives or descriptive
statements about the employee and his behaviour. If the rater believes strongly that the employee
possesses a particular listed trait, he checks the item; otherwise, he leaves the item blank. A
more recent variation of the checklist method is the weighted list. Under this, the value of each
question may be weighted equally or certain questions may be weighted more heavily than
others. The following are some of the sample questions in the checklist.
Is the employee really interested in the task assigned? Yes/No
Is he respected by his colleagues (co-workers) Yes/No
Does he give respect to his superiors? Yes/No
Does he follow instructions properly? Yes/No
Does he make mistakes frequently? Yes/No
A rating score from the checklist helps the manager in evaluation of the performance of the
employee. The checklist method has a serious limitation. The rater may be biased in
distinguishing the positive and negative questions. He may assign biased weights to the
questions. Another limitation could be that this method is expensive and time consuming.
Finally, it becomes difficult for the manager to assemble, analyze and weigh a number of
statements about the employee’s characteristics, contributions and behaviours. In spite of these
limitations, the checklist method is most frequently used in the employee’s performance
evaluation.
(5) Graphic rating scale. Perhaps the most commonly used method of performance evaluation is
the graphic rating scale. Of course, it is also one of the oldest methods of evaluation in use.
Under this method, a printed form, as shown below, is used to evaluate the performance of an
employee. A variety of traits may be used in these types of rating devices, the most common
being the quantity and quality of work. The rating scales can also be adapted by including
traits that the company considers important for effectiveness on the job. A model of a graphic
rating scale is given below.
TABLE Typical Graphic Rating Scale
Employee Name ................... Job title ................. Department ......................... Rate ............... Data .........................
Quantity of work: Volume Unsatisfactory Fair Satisfactory Good Outstanding

of work under normal
working conditions
Quality of work: Neatness,
thoroughness and accuracy
of work Knowledge of job
A clear understanding of
the factors connected with
the job
Attitude: Exhibits
enthusiasm and
cooperativeness on
the job
Dependability:
Conscientious, thorough,
reliable, accurate, with
respect to attendance,
reliefs, lunch breaks, etc.
Cooperation: Willingness
and ability to work with
others to produce
desired goals.
From the graphic rating scales, excerpts can be obtained about the performance standards of
employees. For instance, if the employee has serious gaps in technical-professional knowledge
(knows only rudimentary phases of job); lacks the knowledge to bring about an increase in
productivity; is reluctant to make decisions on his own (on even when he makes decisions they
are unreliable and substandard); declines to accept responsibility; fails to plan ahead effectively;
wastes and misuses resources; etc., then it can safely be inferred that the standards of the
performance of the employee are dismal and disappointing.
The rating scale is the most common method of evaluation of an employee’s performance
today. One positive point in favour of the rating scale is that it is easy to understand, easy to use
and permits a statistical tabulation of scores of employees. When ratings are objective in nature
they can be effectively used as evaluators. The graphic rating scale may however suffer from a
long standing disadvantage, i.e., it may be arbitrary and the rating may be subjective. Another
pitfall is that each characteristic is equally important in evaluation of the employee’s performance
and so on.
(6) Behaviourally anchored rating scales. Also known as the behavioural expectations scale, this
method represents the latest innovation in performance appraisal. It is a combination of the
rating scale and critical incident techniques of employee performance evaluation. The critical
incidents serve as anchor statements on a scale and the rating form usually contains six to
eight specifically defined performance dimensions. The following chart represents an example
of a sales trainee’s competence and a behaviourally anchored rating scale.
TABLE An Example of Behaviorally Anchored Rating Scale (BARS)
Performance Points Behavior
Extremely good 7 Can expect trainee to make valuable suggestions for increased sales and to
have positive relationships with customers all over the country.
Good 6 Can expect to initiate creative ideas for improved sales.
Above average 5 Can expect to keep in touch with the customers throughout the year.
Average 4 Can manage, with difficulty, to deliver the goods in time.
Below average 3 Can expect to unload the trucks when asked by the supervisor.
Poor 2 Can expect to inform only a part of the customers.
Extremely poor 1 Can expect to take extended coffee breaks and roam around purposelessly.
How to Construct Bars?

Developing a BARS follows a general format which combines techniques employed in the
critical incident method and weighted checklist ratings scales. Emphasis is pinpointed on
pooling the thinking of people who will use the scales as both evaluators and evaluates.
Step 1. Collect critical incidents: People with knowledge of the job to be probed, such as job
holders and supervisors, describe specific examples of effective and ineffective behaviour related
to job performance.
Step 2. Identify performance dimensions: The people assigned the task of developing the
instrument cluster the incidents into a small set of key performance dimensions. Generally
between five and ten dimensions account for most of the performance. Examples of performance
dimensions include technical competence, relationships with customers, handling of paper
work and meeting day-to-day deadlines. While developing varying levels of performance for
each dimension (anchors), specific examples of behaviour should be used, which could later be
scaled in terms of good, average or below average performance.
Step 3. Reclassification of incidents: Another group of participants who are knowledgeable
about the job is instructed to retranslate or reclassify the critical incidents generated (in Step II)
previously. They are given the definition of job dimension and told to assign each critical
incident to the dimension that it best describes. At this stage, incidents for which there is not 75
per cent agreement are discarded as being too subjective.
Step 4. Assigning scale values to the incidents: Each incident is then rated on a one-to-seven or
one-to-nine scale with respect of how well it represents performance on the appropriate
dimension. A rating of one represents ineffective performance; the top scale value indicates
very effective performance. The second group of participants usually assigns the scale values.
Means and standard deviations are then calculated for the scale values assigned to each
incident. Typically incidents that have standard deviations of 1.50 or less (on a 7-point scale)
are retained.
Step 5. Producing the final instrument: About six or seven incidents for each performance
dimension – all having met both the retranslating and standard deviation criteria – will be
used as behavioural anchors. The final BARS instrument consists of a series of vertical scales
(one for each dimension) anchored (or measured) by the final incidents. Each incident is
positioned on the scale according to its mean value.
(7) Forced choice method. This method was developed to eliminate bias and the preponderance of
high ratings that might occur in some organisations. The primary purpose of the forced choice
method is to correct the tendency of a rater to give consistently high or low ratings to all the
employees. This method makes use of several sets of pair phrases, two of which may be positive
and two negative and the rater is asked to indicate which of the four phrases is the most and
least descriptive of a particular worker. Actually, the statement items are grounded in such a
way that the rater cannot easily judge which statements apply to the most effective employee.
The favourable qualities earn a plus credit and the unfavourable ones earn the reverse. The
worker gets over plus when the positive factors override the negative ones or when one of the
negative phrases is checked as being insignificantly rated.
The overall objectivity is increased by using this method in evaluation of employee’s
performance, because the rater does not know how high or low he is evaluating the individual
as he has no access to the scoring key. This method, however, has a strong limitation. In the
preparation of sets of phrases trained technicians are needed and as such the method becomes
very expensive. Further, managers may feel frustrated rating the employees ‘in the dark’. Finally,
the results of the forced choice method may not be useful for training employees because the
rater himself does not know how he is evaluating the worker. In spite of these limitations, the
forced choice technique is quite popular.
(8) Management by Objectives (MBO). MBO represents a modern method of evaluating the
performance of personnel. Thoughtful managers have become increasingly aware that the
traditional performance evaluation systems are characterized by somewhat antagonistic
judgments on the part of the rater. There is a growing feeling nowadays that it is better to make
the superior work with subordinates in fixing goals. This would inevitably enable subordinates
to exercise self-control over their performance behaviours. The concept of management by
objectives is actually the outcome of the pioneering works of Drucker, McGregor and Odiorne
in management science. Management by objectives can be described as “a process whereby the
superior and subordinate managers of an organisation jointly identify its common goals, define each
individuals’ major areas of responsibility in terms of results expected of him and use these measures as
guides for operating the unit and assessing the contributions of each of its members”. MBO thus
represents more than an evaluation programme and process. Practicing management scientists
and pedagogues view it as a philosophy of managerial practice; it is a method by which
managers and subordinates plan, organise, control, communicate and debate.
Features
m MBO emphasizes participatively set goals that are tangible, verifiable and measurable.
m MBO focuses attention on what must be accomplished (goals) rather than how it is to be
accomplished (methods).
m MBO, by concentrating on key result areas translates the abstract philosophy of management
into concrete phraseology. The technique can be put to general use (non-specialist technique).
Further it is “a dynamic system which seeks to integrate the company’s need to clarify
and achieve its profit and growth targets with the manager’s need to contribute and develop
himself”.
m MBO is a systematic and rational technique that allows management to attain maximum results
from available resources by focusing on achievable goals. It allows the subordinate plenty of
room to make creative decisions on his own.
The above-discussed methods are used to evaluate employees one at a time. In this section let us
discuss some techniques of evaluating one employee in comparison to another. Three such frequently
used methods in organisation are – ranking, paired comparison and forced distribution.
1 . Ranking method. This is a relatively easy method of performance evaluation. Under this method,
the ranking of an employee in a work group is done against that of another employee. The
relative position of each employee is tested in terms of his numerical rank. It may also be done
by ranking a person on his job performance against another member of the competitive group.
The quintessence of this method is that employees are ranked according to their levels of
performance. While using this method, the evaluator is asked to rate employees from highest to
lowest on some overall criterion. Though it is relatively easier to rank the best and the worst
employees, it is very difficult to rank the average employees. Generally, evaluators pick the top
and bottom employees first and then select the next highest and next lowest and move towards
the average (middle) employees. The long-standing limitations of this method are:
(i) The ‘whole man’ is compared with another ‘whole man’ in this method. In practice, it is
very difficult to compare individuals possessing varied behavioural traits.
(ii) This method speaks only of the position where an employee stands in his group. It does not
tell anything about how much better or how much worse an employee is when compared
to another employee.
(iii) When a large number of employees are working, ranking of individuals becomes a
tosticating issue.
(iv) There is no systematic procedure for ranking individuals in the organisation. The ranking
system does not eliminate the possibility of snap judgements.
In order to overcome the above limitations a paired comparison technique has been advanced
by organisational scholars.
2. Paired comparison method. Ranking becomes more reliable and easier under the paired
comparison method. Each worker is compared with all other employees in the group; for every
trait the worker is compared with all other employees. For instance, when there are five
employees to be compared, then A’s performance is compared with that of B’s and decision is
arrived at as to whose is the better or worse. Next, B is also compared with all others. Since A is
already compared with B, this time B is to be compared with only C, D and E. By this method
when there are five employees, fifteen decisions are made (comparisons). The number of decisions
to be made can be determined with the help of the formulae n (n-2). Ranking the employees by
the paired comparison method may be illustrated as shown in the Table 10.7 For several
individual traits, paired comparisons are made, tabulated and then rank is assigned to each
worker. Though this method seems to be logical, it is not applicable when a group is large.
When the group becomes too large, the number of comparisons to be made may become
frighteningly excessive. For instance, when n = 100, comparisons to be made are 100 (100-2) =
100 (98) = 9800.
Trait: ‘Quantity of Work’
TABLE – Employee Rated
As compared to A B C D E
A + – + –
B – + – +
C + – + –
D – + – –
E + – + +
3. Forced distribution method. Under this system, the rater is asked to appraise the employee
according to a predetermined distribution scale. The rater’s bias is sought to be eliminated here
because workers are not placed at a higher or lower end of the scale. Normally, the two criteria
used here for rating are the job performance and promo ability. Further, a five point performance
scale is used without any mention of descriptive statements. Workers are placed between the
two extremes of ‘good’ and ‘bad’ performances. For instance, the workers of outstanding merit
may be placed at the top 10% of the scale. The rest may be placed as – 20% -good, 40% -
outstanding, 20% -fair and 10% -fair. To be specific, the forced distribution method assumes
that all top grade workers should go to the highest 10% grade; 20% employees should go to the
next highest grade and so on. Job performance as the criterion apart, another equally important
factor in this method is promotability. Employees may be classified according to their
promotional merits. The scale for this purpose may consist of three points – namely, quite
likely promotional material, may/may not be promotional material and quite unlikely
promotional material. One strong positive point in favour of the forced distribution method is
that by forcing the distribution according to predetermined percentages, the problem of making
use of different raters with different scales is avoided. Further, this method is appreciated on
the ground that it tends to eliminate rater bias. The limitation of using this method in salary
administration however, is that it may result in low morale, low productivity and high
absenteeism. Employees who feel that they are productive, but find themselves placed in a
lower grade (than expected) feel frustrated and exhibit, over a period of time, reluctance to
work.
Other methods of appraising performance include. Group Appraisal, Human Resource Accounting,
Assessment Centre, Field Review, etc. These are discussed in the following sections:
1. Group appraisal. In this method, an employee is appraised by a group of appraisers. This
group consists of the immediate supervisor of the employee, other supervisors who have close
contact with the employee’s work, manager or head of the department and consultants. The
head of the department or manager may be the Chairman of the group and the immediate
supervisor may act as the Coordinator for the group activities. This group uses any one of
multiple techniques discussed earlier. The immediate supervisor enlightens other members
about the job characteristics, demands, standards or performance, etc. Then the group appraises
the performance of the employee, compares the actual performance with standards, finds out
the deviations, discusses the reasons therefore, suggests ways for improvement of performance,
prepares an action plan, studies the need for change in the job analysis and standards and
recommends changes, if necessary.
This method eliminates ‘personal bias’ to a large extent, as performance is evaluated by multiple
rates. But it is a very time consuming process.
2. Human resource accounting. HRA is a sophisticated way to measure (in financial terms) the
effectiveness of personnel management activities and the use of people in an organisation. It is
the process of accounting for people as an organisational resource. It tries to place a value on
organisational human resources as assets and not as expenses. The HRA process shows the
investment the organisation makes in its people and how the value of these people changes
over time. The acquisition cost of employees is compared to the replacement cost from time to
time. The value of employees is increased by investments made by the company to improve the
quality of its human resources such as training, development skills acquired by employees
over a period of time through experience, etc. When qualified, competent people leave an
organisation; the value of human assets goes down. In this method, employee performance is
evaluated in terms of costs and contributions of employees. Human resource costs include
expenditure incurred by the company in hiring, training, compensating and developing people.
The contributions of human resources is the money value of labour productivity. The cost of
human resources may be taken as the standard. Employee performance can be measured in
terms of employee contribution to the organisation. Employee performance can be taken as
positive when contribution is more than the cost and performance can be viewed as negative if
cost is more than contribution. Positive performance can be measured in terms of percentage of
excess of employee contribution over the cost of employee. Similarly negative performance can
be calculated in terms of percentage of deficit in employee contribution compared to the cost
of employee. These percentages can be ranked to ‘Zero Level’ as shown in the Table below
Rank Rating Percentage of surplus/Deficit of

contribution to cost of employee
1. Extremely good performance Over 200
2. Good performance 150 – 200
3. Slightly good performance 100 – 150
4. Neither poor nor good 0 – 100
5. Slightly poor performance 0
6. Poor performance 0 to (- 50)
7. Extremely poor performance (-50) to (-100)
This technique has not developed fully and is still in the transitionary stage.
3. Assessment centre. This method of appraising was first applied in German Army in 1930.
Later business and industrial houses started using this method. This is not a technique of
performance appraisal by itself. In fact it is a system or organisation, where assessment of
several individuals is done by various experts using various techniques. These techniques
include the methods discussed before in addition to in-basket, role playing, case studies,
simulation exercises, structured in sight, transactional analysis, etc.
In this approach individuals from various departments are brought together to spend two or
three days working on an individual or group assignment similar to the ones they would be
handling when promoted. Observers rank the performance of each and every participant in
order of merit. Since assessment centres are basically meant for evaluating the potential of
candidates to be considered for promotion, training or development, they offer an excellent
means for conducting evaluation processes in an objective way. All assesses get an equal
opportunity to show their talents and capabilities and secure promotion based on merit. Since
evaluators know the position requirements intimately and are trained to perform the evaluation
process in an objective manner, the performance ratings may find favor with majority of the
employees. A considerable amount of research evidence is available to support the contention
that people chosen by this method prove better than those chosen by other methods. The centre
enables individuals working in low status departments to compete with people from well-
known departments and enlarge their promotion chances. Such opportunities, when created
on a regular basis, will go a long way in improving the morale of promising candidates working
in less important positions.
4. Field Review Method. Where subjective performance measures are used, there is scope for
rater’s biases influencing the evaluation process. To avoid this, some employees use the field
review method. In this method a trained, skilled representative of the HR department goes into
the ‘field’ and assists line supervisors with their ratings of their respective subordinates. The
HR specialist requests from the immediate supervisor specific information about the employees
performance. Based on this information, the expert prepares a report which is sent to the
supervisor for review, changes, approval and discussion with the employee who is being
rated. The ratings are done on standardized forms Since an expert is handling the appraisal
process, in consultation with the supervisor, the ratings are more reliable. However, the use
of HR experts makes this approach costly and impractical for many organisations.
Multisource Feedback/360-degree feedback. Involves combining evaluations from several sources
into an overall appraisal. It is called 360-degree feedback. It combines the full circle of ratings from all
sources – from superiors, subordinates, peers and self, and even evaluations by the organisation’s
customers or clients who have dealings with the person being rated. Data from unique perspectives.
May reduce many forms of bias. If all parties are told that their ratings will be compared with those
assigned by others, they are likely to be more objective in their assessments.
The level of agreement between different ratings appears to vary as a function of type of job, being
generally lower for managerial and professional employees than for employees in blue-collar and
service jobs. If ratings show a high level of agreement, a manager may be more willing to accept
criticism because it comes from sources other than the immediate supervisor.
Multisource feedback is more expensive than appraisals from a single source, but there are
indications that the combination approach is growing in popularity despite its cost. Used primarily
for development purposes but some organisations are also using them for pay and promotion decisions.
Potential Appraisal
In most Indian organisations, people earn promotions on the basis of their past performance. The past
performance is considered a good indicator of future job success. This could be true, if the job to be
played by the promotee are similar. However, in actual practice, the roles that a role holder played in
the past may not be the same he is expected to play if he assumes a different job after his transfer or
promotion to a new position. Past performance, therefore, may not be a good indicator of the suitability
of an indicator for a higher role.
To overcome this inadequacy, organisations must think of a new system called potential appraisal.
The objective of potential appraisal is to identify the potential of a given employee to occupy higher
positions in the organisational hierarchy and undertake higher responsibilities.
Potential appraisals are required to:
m inform employees about their future prospects;
m help the organisation chalk out of a suitable succession plan;
m update training efforts from time to time;
m advise employees about what they must do to improve their career prospects.
Introducing a Good Potential Appraisal System

The following are some of the steps required to be followed while introducing a potential appraisal
system:
m Role Descriptions. Organisational roles and functions must be defined clearly. To this end, job
descriptions must be prepared for each job.
m Qualities needed to perform the roles. Based on job descriptions, the roles to be played by
people must be prepared (i.e., technical, managerial jobs and behavioral dimensions).
m Rating mechanisms. Besides listing the functions and qualities, the potential appraisal system
must list mechanisms of judging the qualities of employees such as:
n Rating by others. The potential of a candidate could be rated by the immediate supervisor
who is acquainted with the candidate’s work in the past, especially his technical capabilities.
n Tests. Managerial and behavioral dimensions can be measured through a battery of
psychological tests.
n Games. Simulation games and exercises (assessment centre, business games, in-basket,
role play, etc.) could be used to uncover the potential of a candidate.
n Records. Performance records and ratings of a candidate on his previous jobs could be
examined carefully on various dimensions such as initiative, creativity, risk taking ability,
etc., which might play a key role in discharging his duties in a new job.
m Organising the system. After covering the above preliminaries, he must set up a system that
will allow the introduction of the scheme smoothly giving answers to some puzzling questions:
i. How much weight age to merit in place of seniority in promotions?
ii. How much weight age to each of the performance dimensions – technical, managerial,
behavioral qualities?
iii. What are the mechanisms of assessing the individual on different indicators of his potential
and with what reliability?
m Feedback. The system must provide an opportunity for every employee to know the results of
his assessment. “He should be helped to understand the qualities actually required for
performing the role for which he thinks he has the potential, the mechanisms used by the
organisations to appraise his potential and the results of such an appraisal”.
TRAINING AND DEVELOPMENT

Meaning of Training
Training is an organised process for increasing the knowledge and skills of people for doing a particular
job. It is a learning process involving the acquisition of skills and attitudes. The purpose of training is
to improve the current performance. Training is a continuous process because a person never stops
learning. The purpose of Training is to mould the behaviour of people so that they can do their jobs in
a better way.
Training implies systematic procedure whereby employees are imparted technical knowledge
and skill for specific jobs. It emphasizes improvements of the abilities of employees to handle specific
jobs and operations more effectively.
1. Training is the act of increasing the knowledge and skill of an employee for doing a particular job.
2. Training refers to the methods used to give new or present employees the skills they need to
perform their jobs.
3. Training refers to any process by which the aptitudes, skills and abilities of employees to
perform specific jobs are increased.
Definitions of Training
Training is that process by which the efficiency of the employees increases and develops. Training is
a specialised knowledge which is required to perform a specific job.
Training has been defined by different scholars of management. Some important definitions of
training are as under:
m According to Dale.S.Beach, “Training is the organised procedure in which people learn
knowledge and skill for definite purpose”.
m According to Jucius, “The term training is used here to indicate only process by which the
aptitudes, skill and abilities of employees to perform specific jobs are increased”.
m According to Elppo, “Training is the act of increasing the knowledge and skill of an employee
for doing a particular job.
m According to Dale Yoder, “Training is the process by which manpower is filled for the particular
jobs it is to perform.” In simple words, “Training is to make proficient by instruction and
practice as in some profession or work.
Training and Development

Training and development is a subsystem of an organisation and core function of human resource
management. It ensures continuous skill development of employees working in organisation
and habituates process of learning for developing knowledge to work. Training and Development is
the foundation for obtaining quality output from employees.
Training and Development is a structured program with different methods will be designed by
professionals in particular job. It has become most common and continuous task in any organisation
for updating skills and knowledge of employees in accordance with changing environment.
Optimisation of cost with available resources has become pressing need for every organisation which
will be possible only by way of improving efficiency and productivity of employees, possible only by
way of providing proper employee training and development conditioned to that it should be provided
by professionals.
Traditional and Modern Approach of Training and Development

Traditional Approach. Most of the organisations before never used to believe in training. They were
holding the traditional view that managers are born and not made. There were also some views that
training is a very costly affair and not worth. Organisations used to believe more in executive pinching.
But now the scenario seems to be changing.
Modern approach of training and development is that Indian Organisations have realized the impor-
tance of corporate training. Training is now considered as more of retention tool than a cost. The training
system in Indian Industry has been changed to create a smarter workforce and yield the best results.
The HR Training and Development Manager is responsible for the organisation’s staff training
requirements, programs, and career development needs. They supervise training staff, plan and
administer training seminars, and manage conflict resolution, team building, and employee skill
evaluations.
The HR Training and Development Specialist plans, produces and administers staff and
management training programs. They conduct programs to develop employee skills in accordance
with organisation practices and policies. Additionally, they research and evaluate training resources,
as well as suggest new topics and methods.
According to Robert Fritz, “The way to activate the seeds of your creation is by making choices
about the results you want to create. When you make a choice, you activate vast human energies and
resources, which otherwise go untapped.”
Objective of Training and Development

The principal objective of training and development division is to make sure the availability of a
skilled and willing workforce to an organisation. In addition to that, there are four other objectives:
Individual, Organisational, Functional, and Societal.
m Individual Objectives – help employees in achieving their personal goals, which in turn,
enhances the individual contribution to an organisation.
m Organisational Objectives – assist the organisation with its primary objective by bringing
individual effectiveness.
m Functional Objectives – maintain the department’s contribution at a level suitable to the
organisation’s needs.
m Societal Objectives – ensure that an organisation is ethically and socially responsible to the
needs and challenges of the society.
In the field of human resource management, training and development is the field concerned
with organisational activity aimed at bettering the performance of individuals and groups in
organisational settings. It has been known by several names, including employee development,
human resource development, and learning and development.
Training and development encompasses three main activities: training, education, and
development. Garavan, Costine, and Hearty, of the Irish Institute of Training and Development, note
that these ideas are often considered to be synonymous. However, to practitioners, they encompass
three separate, although interrelated, activities:
m Training. This activity is both focused upon, and evaluated against, the job that an individual
currently holds.
m Education. This activity focuses upon the jobs that an individual may potentially hold in the
future, and is evaluated against those jobs.
m Development. This activity focuses upon the activities that the organisation employing the
individual, or that the individual is part of, may partake in the future, and is almost impossible
to evaluate.
The “stakeholders” in training and development are categorized into several classes. The sponsors
of training and development are senior managers. The clients of training and development are business
planners. Line managers are responsible for coaching, resources, and performance. The participants
are those who actually undergo the processes. The facilitators are Human Resource Management
staff. And the providers are specialists in the field. Each of these groups has its own agenda and
motivations, which sometimes conflict with the agendas and motivations of the others.
Purpose of Training
Training is essential in organisations because of the following reasons:
1. To increase employees’ performance on their current assignment.
2. To prevent industrial accidents. Through training workers know the right way of doing the job
and how to handle the machines. Thus it increases safety measures taken by workers and
reducing the chances of accidents.
3. To prevent manpower obsolescence. Due to technological changes and competition, workers
are required to update and well-equip themselves with the latest ways of job performance. So,
training helps them in learning the new methods
4. To increase employee morale. A well-trained employee will take interest in his work and
derives satisfaction from his job. This raises his morale to perform well in future.
5. To reduce wastage. An untrained person will waste the costlier raw material, damage machines
and even cause accidents. With the help of training, workers come to know what is the right
way of using the material, what is the right way of operating and handling the machine, etc.
6. A trained person needs less supervision as compared to an untrained person. A trained
person can take routine decisions by himself and is most disciplined. Training helps to make
employee independent and more responsible towards the job.
7. To enhance employee’s adjustment with the latest changes at work place. For instance,
technological developments require new approach towards work. It is only through training
that a worker can easily learn new work techniques. A little bit of computer training is required
these days in almost every field like banks, railways, etc. to adjust to new ways of doing work.
8. To reduce absenteeism and turnover. A trained worker takes full interest in his job thus
derives job satisfaction. A satisfied worker will be regular and thinks less to quit.
9. To fill the vacancies when need arises. An organisation by imparting training makes a ready
pool of trained candidates available with it. Whenever there is vacancy at higher level so it will
take less time and effort to promote a trained person.
10. Lastly, training is also essential for the overall growth of workers. Management development
programmes seem to give participants a wider awareness, an enlarged skill and enlightened
altruistic philosophy and make enhanced personal growth possible.’ Also, with the help of
training, employees acquire knowledge and skills; this increases their market value and earning
power.
Objectives of Training
Training is one of the most useful tools available to management. A manager makes use of training to
help him to manage. Thus, training is given to employees with the following objectives:
(1) To increase productivity.
(2) To make first line Supervisors a more effective tool of management.
(3) To bring out more cordial relations, i.e. employee and employer relations.
(4) To increase morale and team spirit among the workers.
(5) To increase effective co-operation and co-ordination at all levels.
(6) To impart various social and supervisory skills.
(7) To develop the individual to utilize the knowledge and experience and inherent abilities for
higher performance..
(8) To accept more shop for responsibility.
(9) To increase knowledge (Technical know-how) and economical use of resources.
Differences Between Training and Development
Basis Training Development
Meaning Training means learning skills and Development means growth of an employee
knowledge for the particular job. in all aspects
Use Training is used for imparting specific Development is used for the overall growth
Skills. of the executives.
Nature It is job related in nature. It is career oriented in nature.
Perspective It has short term perspective. It has long term perspective.
Aim The best possible performance on The best possible utilization of the employee
the specific job by the employee. capability.
Scope Training is limited in scope and is the Development is wider term and includes
part of development. education, learning, and training.
Level of It is imparted to lower level employees The level of development is higher and
involved or junior managers. concerns with senior managers.
persons
Depth of Deep Knowledge is provided. Development does not provide deep
knowledge knowledge and simply facilitates growth.
Initiative Initiative of learning is not on the Initiative of learning is on the employee and
in learning employee and is on the organisation. not on the organisation.
Duration It is imparted for the fixed period. It is an unending practice in the company.
Characteristics or Features of Training

Training costs is investment and not waste. The main characteristic of training is that expenses
incurred on training provide benefits in the long run in the form of increased efficiency of the employees.
So an expense incurred on training is considered as an investment and not the waste.
1. Job Related: Training is always related to a particular job i.e. training is provided to the employees
in relation to make him efficient in a particular job. It increases the skills of the employees for the
particular job.
2. Continuous: Training is a continuous process, as employees require training from time to time
relating to new changes which are introduced in the work environment.
3. Provides benefit to employee and employer: Training is beneficial to both employer and employee.
It increases the capabilities of the employee and they perform better at work, which in turn
gives good output to the employer in the form of increased profits.
4. Training is different from development: Training courses are typically designed for a short term,
stated set purpose such as operation of some pieces of machinery, while development involves
a broader education for the long term purposes.
5. Training is different from education: Although the concepts of training and education are closely
related but the difference is that the purpose of training is more specific and immediate as
compared to the purpose of education.
6. Training is needed at all levels: Another feature of training is that it is required by the mangers
of all the three levels i.e. top, middle, and supervisory level. Only difference is the nature of
training at the different levels.
7. All types of employees: Training is required by all types of employees whether new or old. Thus
whether the employee is new or old in the organisation, he/she requires training.
Need of the Training

Training bridges the gap between the job requirements and employee’s present capabilities. Every
organisation should provide training to its workforce due to the technological changes and automation.
Training requires for both employer and the employees.
Need for training arises on account of the following reason :
1. New Environment. When a new employee comes to work he is unaware of the environment in
the organisation. Therefore, he should be given some training to make him familiar with his
superiors and peer company’s rules and regulations, etc. Such training is known as induction
or orientation. It enables the new employee to gain self-confidence and to adjust himself in the
new environment. Training makes the new employees efficient.
2. Faculty Methods. Some employees might have picked up defective ways of doing work which
may result in wastage and inefficiency. Training is required to remove these defects and to
teach them correct methods and behaviour patterns. This is type of training may be called
remedial training.
3. Prevention of Accidents. Training is needed to prevent industrial accidents. For this purpose,
safety conscious must be created among workers so that they realise the significance of safe
working. Moreover, they should be given instructions in the use of safety devices. Such
training is known as safety training.
4. Career Development. When persons working at lower levels are promoted to higher positions,
they require training in the higher job. This is necessary not only to replace the outgoing
executive but also to provide opportunity for advancement to the employees. Such training
may be described as promotional training. It simplifies the problem of executive succession
and helps to ensure the continuity of the organisation.
In fact, no organisation has a choice of whether to train or not. The only choice is which
method of training to use.
Benefits of Training to Employers/Organisation

1. Increased Productivity. Increase in the skills of the employees, usually increments the both
quality and quantity of output. Training plays an important role in increasing the efficiency
of the employees and increases their skills for doing the job in a better way. This increases
the productivity in the organisation.
2. Reduced Supervision. Training also helps to reduce supervision as trained employees perform
better even with limited supervision. Both employee and supervisor want lesser supervision
and greater independence, which can be only possible through training.
3. Reduced Accidents. According to a survey, maximum accidents are caused due to the
deficiencies in the skills of the people than due to the deficiencies in the working conditions.
Proper training for the skills required for the job contributes towards the reduction in the
accident rate.
4. Ensures flexibility and stability. The organisation gains, stability as it continues to have
trained personnel for its varied requirements. Continuous and timely training makes the
organisation more competent and enables it to overcome shortages of skilled personnel.
5. Economy in operations. It is a well known fact that trained personnel’s are capable of doing
their tasks with care and caution. The wastage of time, energy, and materials is minimized
and cost of production is reduced.
Benefits for the Employees

1. Increase in morale of employees. Training increases morale of the employees. Training
increases employee’s morale by relating their skills with the job requirements. Trained
employees can see their jobs in the more meaningful ways. This increases the morale of the
employees.
2. More employment opportunities. A trained employees gets more employment opportunities
as compared to the untrained employee. This is because every firm wants the trained and
capable workers.
3. More adaptability. As the trained employee can better understand his job, he can better adapt
to the changes which are introduced in the working environment due to the changes in the
market conditions.
4. Compensates incomplete education. Training completes the incomplete education acquired
by the employees. At the time of joining the employee only has the theoretical knowledge
about the work and training provides the practical knowledge, which makes the employee
more efficient.
5. More chances of promotion. Employees who have more knowledge and skills about the job are
considered more efficient and have more chances of promotion as compared to the employees
who have less knowledge and skills. This knowledge and skill which forms the basis of
promotion is provided through training.
Types of Training Methods

There are number of training methods available as a result of research. The training programmes
commonly used to train the various levels of employees are as follow:
1. Vestibule Training. This term is used to designate training in classroom for skilled production
and clerical jobs. Under this method employees are trained in a special training centre (vestibule)
within the plant. In the vestibule an attempt is made to duplicate nearly as possible the actual
work conditions of the work place. Qualified instructors provide the training under carefully
planned and controlled learning conditions.
2. Apprenticeship Training. In this method the trainees work as apprentices under the direct
supervision of experts for a long period and some stipend is paid to them during the training
period. Trainees are imparted knowledge and skill in doing a particular crafts or a series of
related jobs. In India, employers in specified industries are required under the Apprenticeship
Act 1962, to train the certain number of apprentices in designated trades.
3. Job Rotation. In this method the trainee moves from one job to another, so that he can know to
work on all the seats. This type of training is common for the employees of general management
positions. Under this method trainee understand the problems of the other seats while working
on that seat. Such movement may be for the period ranging from 6 months to 2 years before a
person is established in a particular job or department.
4. Internship Training: This training is basically provided to bring the balance between the
theoretical knowledge and the practical skills required to do the job. This training is the combined
effort of the educational institutions and business organisations. In this theoretical knowledge
is imparted by educational institutions and practical knowledge is imparted through business
organisations.
Training and Development Methods

There are several T&D methods available. The use of a particular method depends which method
accomplishes the training needs and objectives. Training methods can be classified into two categories:
I . On-the-Job Methods
On the job methods is the heart and soul of all training in business and industry. OTJ is known
sometimes called shop training is the most universal form of employee development. This is the
traditional method of learning, which is designed to maximize learning while allowing the employee
to perform his job under the supervision and guidance of the trained worker or instructor, providing
him practical application and making principle and concepts more meaningful.
This methods of training in which a person learns a job by actually doing/performing it. A person
works on a job and learns and develops expertise at the same time.
1. Job instruction training. Commonly known as JIT, this techniques of training was developed
during the world war II. It is four instructional process. JIT is basically used to teach the
workers how to do their current jobs. A trainer, supervisor or co-worker can act as a coach.
2. Coaching. In this, the supervisor or the superior acts as a guide and instructor of the trainee.
It is a kind of the daily training and feedback is given to employees by their immediate
supervisor. It is continuous process learning by doing. Coaching involves directs personal
instruction and guidance. This involves extensive demonstration and continuous critical
evaluation and correction.
3. Mentoring. It is somewhat different from training methods. In mentoring, senior person
in the organisation assumes the responsibility for training as well as grooming of a junior. A
mentor act as a teacher, guide, counsellor, philosopher, and facilitator of the junior
person.
4. Job rotation. Position rotations training is the broadening of the background of the trainees
in the organisation. If the rotated periodically from one job to another job, he requires general
background. He understand the larger perspective and different functional areas.
This refers to shifting/movement of an employee from one job to another on regular intervals.
5. Special projects. The trainees’ may ask to work on special projects related with departmental
objectives. By this, the trainees will acquire the knowledge of the assigned work and also
learn how to work with others.
6. Committee assignment. In this, the trainees become members of a committee. The committee
is assigned a problem to discuss and make recommendations.
II. Off-the-Job Methods

These methods require trainees to leave their workplace and concentrate their entire time towards
the training objectives. These days off-the-job training methods have become popular due to
limitations of the on-the-job training methods such as facilities and environment, lack of group
discussion and full participation among the trainees from different disciplines, etc. In the off-the-job
methods, the development of trainees is the primary task rest everything is secondary. Following
are the main off-the-job training methods:
1. Special courses and lectures. These are the most traditional and even famous today, method
of developing personnel. Special courses and lectures are either designed by the company
itself or by the management/professional schools. Companies then sponsor their trainees to
attend these courses or lectures. These are the quick and most simple ways to provide
knowledge to a large group of trainees.
2. Conferences and seminars. In this, the participants are required to pool their thoughts, ideas,
viewpoints, suggestions and recommendations. By attending conferences and seminars,
trainees try to look at a problem from different angles as the participants are normally from
different fields and sectors.
3. Selected reading. This is the self-improvement training technique. The persons acquire
knowledge and awareness by reading various trade journals and magazines. Most of the
companies have their own libraries. The employees become the members of the professional
associations to keep abreast of latest developments in their respective fields.
4. Case study method. This technique was developed by Harvard Business School, U.S.A. It is
used as a supplement to lecture method. A case is a written record of a real business
situation/problem faced by a company. The case is provided to the trainees for discussion
and analysis. Identification and diagnose of the problem is the aim in case study method.
Alternate courses of action are suggested from participants.
5. Programmed instruction/learning. This is step-by-step self-learning method where the medium
may be a textbook, computer or the internet. This is a systematic method for teaching job skills
involving presenting questions or facts, allowing the person to respond and giving the learner
immediate feedback on the accuracy of his or her answers.”
6. Brainstorming. This is creativity-training technique, it helps people to solve problems in a new
and different way. In this technique, the trainees are given the opportunity to generate ideas
openly and without any fear of judgement. Criticism of any idea is not allowed so as to reduce
inhibiting forces. Once a lot of ideas are generated then they are evaluated for their cost and
feasibility.
7. Role-playing. In this method, the trainees are assigned a role, which they have to play in an
artificially created situation. For example, a trainee is asked to play the role of a trade union
leader and another trainee is required to perform the role of a HR manager. This technique
results in better understanding of each other’s situation by putting foot in other’s shoes.
8. Vestibule schools. Large organisations frequently provide what are described as vestibule
schools a preliminary to actual shop experience. As far as possible, shop conditions are
duplicated, but instruction, not output is major objective.” A vestibule school is operated as a
specialised endeavour by the personnel department. This training is required when the amount
of training that has to be done exceeds the capacity of the line supervisor; a portion of training
is evolved from the line and assigned to staff through a vestibule school.” The advantage of a
vestibule school is specialisation.
9. Apprenticeship training. This training approach began in the Middle Ages when those who
wanted to learn trade skill bound themselves to a master craftsman and worked under his
guidance. Apprenticeship training is a structured process by which people become skilled
workers through a combination of classroom instruction and on-the-job training.
10. In-basket exercise. In this technique, the trainees are provided background information on a
simulated firm and its products, and key personnel. After this, the trainees are provided with
in-basket of memos, letters, reports, requests and other documents related with the firm. The
trainee must make sense out of this mass of paperwork and prepare memos, make notes and
delegate tasks within a limited time period.
11. Business games. Business games involve teams of trainees. The teams discuss and analyse the
problem and arrive at decisions. Generally, issues related with inventories, sales, R&D,
production process, etc. are taken up for consideration.
12. Behaviour modelling. This is structured approach to teach specific supervisory skill. This is
based on the social learning theory in which the trainee is provided with a specific model of
behaviour and is informed in advance of the consequences of engaging in that type of behaviour.
13. Sensitivity (T-group) training. In this type of training, a small group of trainees consisting of 10
to 12 persons is formed which meets in an unstructured situation. There is no set agenda or
schedule or plan. The main objectives are more openness with each other, increased listening
skills, trust, support, tolerance and concern for others. The trainers serve a catalytic role. The
group meets in isolation without any formal agenda. There is great focus on inter-personal
behaviour. And, the trainer provides honest but supportive feedback to members on how they
interacted with one another.
14. Multiple management. This technique of training was first introduced by McCormick, President
of McCormick & co. of Baltimore in 1932. He gave the idea of establishing a junior board of
directors. Authority is given to the junior board members to discuss any problem that could be
discuss in senior board and give recommendations to the senior board. Innovative and
productive ideas became available for senior board.
The Training Process

Generally, training programs consist of seven steps. These are the following:
I. Assessment of Organisational Objectives. First of all, in an organisation, there should be a
proper assessment of objectives. Employers today have to adapt to technological changes,
improve product and service quality and boost productivity to stay competitive.’
II. Determining Training Needs. Before an organisation takes decision regarding training of
its workers and allocates huge resources for it, organisations have to assess the training needs
of its employees. In this regard, a trainer has said, “we sit down with management and help
them identify strategic goals and objectives and the skills and knowledge needed to achieve
them. Then we work together to identify whether our staff has the skills and knowledge and
when they do not that’s when we discuss training needs.”
Training need analysis step is crucial for many reasons. For example, employees’ performance
may be down because the work standards are not clear to them, due to faulty selection, due
to lack of motivation, poor job design, less supervision or personal problem. In these cases,
the problem may be solved just by proper job design, offering incentives to motivate, improving
supervision, etc. Where the deficiency in performance is because of lack of knowledge or skill,
there training is essentially required.
The two main ways to identify training needs are task analysis and performance analysis.
Task analysis is a detailed study of a job to identify the specific skill required and it is
especially suitable for determining the needs of employees who are new to their jobs. Whereas,
performance analysis is the process of verifying that there is performance deficiency and
determining if such deficiency should be corrected through training or through some other
means (like transferring the employee)’ Apart from task and performance analysis
supplementary methods can be used to identify training needs such as supervisors’ reports,
personnel records, management requests, observations, test of job knowledge and
questionnaire surveys.’
III. Setting goal and objectives of training. Once it is clear that training is the solution of
performance deficiency then the training objectives are set. In other words, once training needs
are assessed, then the objectives of training are established. These objectives will specify what
a trainee should accomplish after the successful completion of a training programme. For
example, to type 60 words per minute without difficulty and 2 to 3 errors per page, to program
a single website in half a day, etc.
IV. Preparing the training budget. Preparation of the training budget is specifically concerned
with the allocation of funds to be provided for the training for carrying out the training
activities as envisaged in the plan.
V. Deciding about the training venue. The decision about the training venue depends invariably
on the type of training given. For in company and on the job training, the venue naturally in
the plant itself. In the case of the job training through external sources, the venue has to be
somewhat away from the trainees working environment. The venue of the training will be
place some where outside the agency.
VI. Deciding about the methods and techniques to be deployed in training. There are several
on the job and off the job methods of training are discussed. The choice of any methods would
depends upon the specific objectives of the training programme.
VII. Evaluation of Training Programme. After the completion of the training programme, the
organisation evaluates the programme to see the effectiveness of training efforts. This is done
to check whether the training programme accomplish specific training objectives or not. Also,
the conduct of training programme is costly; this includes needs assessment costs, salaries of
the training department staff, purchase of equipment (computers, video, and handouts),
programme development cost, evaluation costs, trainer’s costs, rental facilities and trainees
wage during the training period.” Thus it is important to assess the costs and benefits
associated with the training programme, in order to convince the top management that the
benefits outplay costs.
Training Process (Functional Development Cycle)
1 Assessment 2 Design 3 Delivery

* Analyse * Pretest * Schedule
training needs trainees training
* Identify * Select training * Conduct
training methods training
objectives and * Plan training * Monitor
criteria content training
Evaluation
* Measure training
outcomes
* Compare outcomes to
objectives/criteria
QUALITY OF WORK LIFE
Meaning and Definitions
Quality of work life refers to the favorableness or unfavorableness of the job environment of an
organisation for its employees. It is generic term which covers a person’s feelings about every
dimension of his work e.g. economic incentives and rewards, job security, working conditions,
organisational and interpersonal relationships etc. The term QWL has different meanings for different
people.
A few important definitions of QWL are as follows:
According to Harrison: “Quality of Work Life is the degree to which work in an organisation
contributes to material and psychological well being of its members.”
According to D.S.Cohan “Quality of Work Life is a process of joint decision making,
collaborations and building mutual respect between management and employees.”
According to the American Society of Training and Development “Quality of Work Life is a
process of work organisation which enables its members at all levels to participate actively and
effectively in shaping the organisations’ environment, methods and outcomes. It is a value based
process which is aimed towards meeting the twin goals of enhanced effectiveness of the organisation
and improved quality of life at work for the employees”.
Quality of Work Life influences the productivity of the employees. Researchers have proved
that good QWL leads to psychologically and physically healthier employees with positive feelings.
To summarize, Quality of Work Life is the degree to which employees of an organisation are
able to satisfy their personal needs through experience in the organisation. Its main aim is to create
a work environment where employees work in cooperation with each other and contribute to
organisational objectives.
Some of the Steps Required Before QWL Programme are:
(i) Top Management Support. Top management, line colleagues and workers before launching
any QWL project Obtaining deep commitment is easier said than done, it requires human
relations and interpersonal communication skills Once obtained, it must be sustained for a
long period of time.
(ii) Planning QWL Programme. Initial planning is important before launching any QWL
programme, it is important to understand the thinking of the work force. As pointed out by
few workers in some sectors might not want their jobs to be enriched, may not like to be
involved in decision-making and may not see their jobs as monotones dull. An investigation
into workers attitudes, job performances values etc. should be incorporated into the planning
chart
We will have to involve — the managers, engineers, workers representatives and even outside
consultants at the initial stage.
(iii) Work/Situation Analysis
— We have to perform the following tasks to enhance QWL
— Establish a working environment that encourages continuous learning, training and
active interest in both the job and the product or service to which the job contributes Such
an environment enables a worker to use and develop his personal skills and knowledge
which in turn affects his involvement his self concern and the challenge the obtain from
the work itself.
— Make the job itself more challenging by structuring it so that an employee can self manage
and feel responsible for significant, identifiable output if he desires that kind of
responsibility
– Provide opportunities for continued growth : that is, opportunities to advance in
organisational or carrier terms.
(iv) Adequate training for people involved in QWL programme. All employees should be briefed
on the reasons for the introduction of the QWL programme and its likely impact. Supervisors
and line managers should be trained to equip them to function effectively in this less directive
more collaborative style.
(v) Relationship of QWL Programme to Collective Bargaining. We have pointed out that the
establishment of joint / management-union meetings outside the traditional area of collective
bargaining tends to arouse both management and trade union suspicion. Personnel managers
therefore need to develop clear working strategies outlining the relationship between
Participation and collective issue can be resolved between the two systems.
(vi) Other specific Areas Other specific areas which involve:
— to establish a feedback system on employer performance.
— to review financial incentives such as cost savings and profit sharing where feasible.
— to evaluate and analyse results including failures leading to revised efforts towards
Continual improvement.
Scope of the Quality of Work Life

Quality of work life is a multi dimensional aspect-The workers expect the following needs to be
fulfilled by the organisations:
1. Compensation. The reward for work should be above a minimum standard for life and should
also be equitable. There should be a just an equitable balance between the effort and the reward.
2. Health and Safety. The working environment should be free from all hazards detrimental to
the health and safety of the employees. The main elements of a good physical environment
for work should be reasonable hours of work, cleanliness, pollution free atmosphere, risk
free work etc.
3. Job Security. The organisation should offer security of employment. Employees should not
have to work under a constant concern for their future stability of work and income.
4. Job Design. The design of jobs should be such which is capable of meeting the needs of the
organisation for production and the individual for satisfying and interesting work. Quality
of work life can be improved if the job allows sufficient autonomy and control, provides timely
feedback on performance and uses a wide range of skills.
5. Social Integration. The workers should be able to feel a sense of identity with the organisation
and develop a feeling of self esteem. This includes the elimination of discrimination and
individualism, while encouraging teams and social groups to form.
6. Social Relevance of Work. Work should not only be a source of material and psychological
satisfaction, but also a means of social welfare. An organisation that has greater concern for
social causes can improve the quality of work life.
7. Scope for Better Career Opportunities. The management should provide facilities to the
employees for improving their skills both academic and otherwise. The management should
always think of utilizing human resources for expansion and development of the
organisations.
Principles of Quality of Work Life: According to N.Q. Herrick and M. Maccoby there are four
basic principles, which will humanize work and improve the Quality of Work Life:
1. The Principle of Security. Quality of work cannot be improved until employees are relieved
of the anxiety, fear and loss of future employment. The working conditions must be safe and
fear of economic want should be eliminated. Job security and safety against occupational
hazards is an essential precondition of humanization of work.
2. The Principle of Equity. There should be a direct and positive relation between effort and
reward. All types of discrimination between people doing similar work and with same level
of performance must be eliminated. Equity also requires sharing the profits of the organisation.
3. The Principle of individualism. Employees differ in terms of their attitudes, skills, potentials
etc. Therefore, every individual should be provided the opportunities for development of his
personality and potential. Humanization of work requires that employees are able to decide
their own pace of activities and design of work operations.
4. The Principle of Democracy. This means greater authority and responsibility to employees.
Meaningful participation in decision making process improves the quality of work life.
Techniques for Improving Quality of Work Life

The quality of work life movement is of recent origin and has a long way to go. Individual as well as
organised efforts are required to improve the quality of work life for millions of workers in the country.
Some of the techniques used to improve the QWL are as given below:
1. Flexible Work Schedules. There should be flexibility in the work schedules of the employees.
Alternative work schedules for the employees can be flexi time, staggered hours, compressed
work week etc. Flexi time is a system of flexible working hours, staggered hours schedule
means that different groups of employees begin and end work a different intervals. Compressed
work week involves longer hours of work per day for fewer days per week.
2. Job Redesign. Job redesigning or job enrichment improves the quality of the jobs. It attempts
to provide a person with exciting, interesting, stimulating and challenging work. It helps to
satisfy the higher level needs of the employees.
3. Opportunity for Development. Career development is very important for ambitious and
achievement oriented employees. If the employees are provided with opportunities for their
advancement and growth, they will be highly motivated and their commitment to the
organisation will increase.
4. Autonomous Work Groups. Autonomous work groups are also called self managed work
teams. In such groups the employees are given freedom of decision making. They are
themselves responsible for planning, organising and controlling the activities of their groups.
The groups are also responsible for their success or failures.
5. Employee’s Participation in Management. People in the organisation should be allowed to
participate in the management decisions affecting their lives. Quality circles, Management
by objectives, suggestion system and other forms of employee’s participation in management
help to improve the Quality of Work Life.
6. Job Security. Employees want stability of employment. Adequate job security provided to the
employees will improve the Quality of Work Life to a large extent.
7. Equitable Justice. The principle of equitable administrative justice should be applied in
disciplinary actions, grievance procedures, promotions, transfers, work assignments etc.
Partiality and biasness at any stage can discourage the workers and affect the Quality of
Work Life.
Close attention to QWL provides a more humanized work environment. It attempts to serve the
higher-order needs of workers as well as their more basic needs. It seeks to employ the higher skills
of workers and to provide an environment that encourages them to improve their skills. The idea is
that human resources should be developed and not simply used. Further, the work should not have
excessively negative conditions. It should not put workers under undue stress. It should not damage
or degrade their humanness. It should not be threatening or unduly dangerous. Finally, it should
contribute to, or at least leave unimpaired, worker’s abilities to perform in other life roles, such as
citizen, spouse, and parent. That is, work should contribute to general social advancement.
CAREER PLANNING
Meaning and Definitions of Careers
Career is viewed as a sequence of position occupied by a person during the course of his lifetime.
Career may also be viewed as amalgam of changes in value, attitude and motivation that occur, as a
person grows older. The implicit assumption is that an individual can make a different in his destiny
over time and can adjust in ways that would help him to enhance and optimize the potential for his
own career development. Career planning is important because it would help the individual to
explore, choose and strive to derive satisfaction with one’s career object.
Definitions
m A career path is the sequential pattern of jobs that form a career.
m A career is all the jobs that are held during one’s working life.
m Career goals are the future positions one strives a part of career.
m Career planning is the process by which one selects career goals and the path to these goals.
m A career is a sequence of positions occupied by a person during the course of a lifetime.
– Decenzo & Robbins
m Career is a sequence of separate but related work activities that provides continuity, order
and meaning in a person’s life. – Edwin Flippo
Benefits to the Organisation

Well-planned and executed career programmes will benefit both the organisation and the employees
in a number of ways. These include the following:
m Staffing inventories. Effective career management will help ensure a continuous supply of
professional, technical and managerial talent so that future organisational goals may be
achieved.
m Staffing from within. Because of the many potential advantages of promotion from within,
most organisations like to promote employees when positions become available. But
recruitment from within requires a strong career management programme to guarantee that
employees can perform effectively in their new jobs. Promoting employees before they are ready
to assume their new jobs will result in unsatisfactory performance, as predicted by the Peter
Principle. Peter Principle: Observation that in an hierarchy people tend to rise to “their level
of incompetence.” Thus, as people are promoted, they become progressively less-effective
because good performance in one job does not guaranty similar performance in another.
Named after the Canadian researcher Dr. Laurence J. Peter (1910-90) who popularized this
observation in his 1969 book ‘The Peter Principle.’
m Solving staffing problems. Certain staffing problems may be remedied through effective career
management. First, a high rate of employee turnover may be caused, at least in part, by a
feeling that little opportunity exists within the organisation. Second, recruiting new employees
may be easier if applicants realise that the company develops its employees and provides
career opportunities.
m Satisfying employee needs. The current generation of employees are very different from those
of generations past. Higher levels of education have raised career expectations. And many
workers hold their employers responsible for providing opportunities so that those
expectations may be realised.
m Enhanced motivation. Because progression along the career path is directly related to job
performance, an employee is likely to be motivated to perform at peak levels so that career
goals may be accomplished.
m Employment equity. Guidelines demand fair and equitable recruiting, selection and
placement policies and the elimination of discriminatory practices concerning promotions
and career mobility- Many affirmative action programmes contain formal provisions to enhance
the career mobility of women and other formerly excluded groups, including the development
of career paths and the design of formal T&D activities.
Meaning & Definitions of Career Planning

Career planning is an ongoing process through which an individual sets career goals and identifies
the means to achieve them. The process by which individuals plan their life’s work is referred to as
career planning.
“Career planning is a process of systematically matching career goals and individual capabilities
with opportunities for their fulfillment.” (Schermerhorn: 2002)
“Career Planning is a deliberate process of becoming aware of self, opportunities, constraints,
choices, and consequences; identifying career-related goals; and “career pathing” or programming
work, education, and related developmental experiences to provide the direction, timing, and
sequence of steps to attain a specific career goal.” (McMahon and Merman: 1987)
Career Anchors
Career anchors denote the basic drives that create the urge to take up a certain type of a career.
These drives are as follows:
m Managerial Competence. Person having this drive seeks managerial positions that
provide opportunities for higher responsibility, decision making, control and influence over
others.
m Technical Competence. People having this anchor seek to make career choices based on the
technical or functional content of the work. It provide continuous learning and updating one’s
expertise in a technical or specialised area such as quality control, engineering, accounting,
advertising, public relations etc.
m Security. If one’s career anchor is security than he is willing to do what is required to maintain
job security (through compliance with organisational prescriptions), a decent income and a
stable future.
m Creativity. This drive provides entrepreneurial and innovative opportunities to the people.
People are driven by an overwhelming desire to do something new that is totally of their
own making.
m Autonomy. These people seek a career that provides freedom of action and independence.
m Career planning facilitates the employees to develop not only their career goals but also the
ways to achieve these goals.
m It helps individuals to remain competitive in the labour market by constantly upgrading
competences as part of goal fulfillment efforts.
m It acts as the basis or standard for tracing the career progression achieved by an employee
throughout his work life.
m It forms the basis for succession planning in the organisation. It helps the organisation in its
preparation for the future by identifying and developing people for critical positions.
m Through career planning, an organisation can attract and retain its best people for a relatively
longer period of time.
m Career planning is viewed as an effective technique by the organisation to limit the labour
turnover and achieve better employee efficiency and commitment.
m It provides an opportunity for the organisation to assess the strengths and weaknesses and
also the area of development of the employees for the purpose of career planning and
development.
m It forms the basis for determining the training and development requirements of each employee
in the organisation.
The main purpose of career planning is to integrate individuals’ and organisational growth
needs.
m It helps to develop individuals and groups, provides opportunities and challenges and
strengthens work cultures.
m To increase managerial competence.
m To attract competent person and retain them in the organisation.
m To provide suitable promotional opportunities.
m To enable the employees to develop and make them ready to meet the future challenges.
m To increase the utilization of managerial reserves within an organisation.
m To correct employee placement.
m To reduce employee dissatisfaction and turnover.
m To improve motivation and morale.
Nature of Career Planning

The following are the salient features of career planning:
m A Process. Career planning is a process of developing human resources rather than an event.
m Upward movement. It involve upward movement in the organisational hierarchy, or special
assignments, project work which require abilities to handle recurring problems, human
relations issued and so on.
m Mutuality of Interest. The individual’s interest is served as his needs and aspirations are
met to a great extent and the organisation’s interest is served as each of its human resources is
provided an opportunity to develop and contribute to the organisational goals and objectives
to the optimum of its ability and confidence.
m Dynamic. Career planning is dynamic in nature due to an ever changing environment.
Functions of Career Planning

The following are the functions performed by career planning:
(i) It helps in determining the career paths for different types of employees.
(ii) Create positions of self-development for employees in an organisation.
(iii) Provide such career planning information system which works as a database of career path,
promotions and replacement.
(iv) To boost up morale of the employees and remove frustration from their minds.
(v) To develop such an internal environment in which employees can develop their talents and
give them a fair chance to go up and contribute the organisation.
(vi) To establish such career paths on which employee can promote himself.
(vii) To enable employees to discover, develop and use their full potential for the organisation.
Career Planning Process

The possibility of conflict between the individual and organisation objectives calls for career planning
efforts which can help to identify areas of conflict and initiate such actions as necessary to resolve
the conflict. Career planning, thus, involves matching of rewards and incentives offered by the career
path and career structure with hopes and aspirations of different categories of employees regarding
their own concept of progression. A general approach to career planning would involve the following
steps:
(i) Analysis of the characteristics of the rewards and incentives offered by the prevailing career
system needs to be done and made known to employees. Many individuals may not be aware
of their own career progression paths as such information may be confined to only a selected
group of managers.
(ii) Analysis of the characteristics of the hopes and aspirations of different categories of
employees including identification of their career anchors must be done through objective
assessment. Most organisations assume the career aspirations of individual employees which
need not be in tune with the reality. The individuals may not have a clear idea of their short
and long-term career and life goals, and may not be aware of their aspirations and career
anchors.
(iii) Mechanisms for identifying congruence between individual career aspirations and
organisational career systems must be developed so as to enable the organisation to discuss
cases of mismatch or incongruence. On the basis of above analyses, it will be necessary to
compare and identify specific areas of match and mismatch for different category of employees.
(iv) Alternative strategies for dealing with mismatch will have to be formulated.
Some of the strategies adopted by several organisations include the following:
(a) Changes in the career system by creating new career paths, new incentives, new rewards,
by providing challenges through job redesign opportunities for lateral movement and the like.
(b) Change in the employees’ hopes and aspirations by creating new needs, new goals, new
aspirations or by helping the employees to scale down goals and aspirations that are
unrealistic or unattainable for one reason or the other.
(c) Seek new basis of integration, compromise or other forms of mutual change on the part of
both employees and organisation through problem-solving, negotiations or other devices.
The Need for Carrier Planning

Organisations can hope to achieve high quality of work from their employees and foster positive
attitudes and loyalty among workers through career planning. Career planning ensures that goals
of individuals and organisations are in synergy and consequently tries to keep the motivation of
managers high. This implies that once the individual becomes aware of his capabilities and
opportunities within the organisation, he chooses to develop himself in a direction that improves
his chances of being able to handle new responsibilities.
Organisational Career Planning

Following activities should be included:
1. Human Resource Forecasting and Planning. This helps in identifying the number of people
to be hired. Second, the organisations will be able to coordinate their selection procedure with
the overall strategic goals.
2. Career information. This should he shared with employees and includes promotional policy
and career paths. Role directions and critical attributes could he made available to employees
for identifying possible career paths and competency requirements.
3. Career Counselling. Senior executives should have periodic discussions with their
subordinates and offer career counselling to them.
4. Career Patching. Organisations nowadays plan job sequences for their employees by which
transfers and promotions are done more systematically.
5. Skill Assessment Training. Three types of analysis should be performed—organisational
analysis, job analysis and job manpower requirement analysis. Organisational analysis and
job analysis are the first steps in the training process.
6. Succession Planning. Here organisations assure that competent candidates are available in
succession for critical positions. HR subsystems like promotions, terminations, transfers,
retirements, etc. also make succession planning necessary.
Limitations of Career Planning

Though career planning helps an organisation in numerous ways, it has a few limitations that
undermine the importance and relevance of career planning.
These are:
m Time Factor. Career planning is usually a long-term and time-consuming process. It is based
on the logic of suffering short-term pain to get long-term gains. However, organisations may
not be ready to spend a lot of time and resources on a process that would prove beneficial
only in the long term.
m Unsuitable for Large Workforce. It may not be possible for organisations with a large
workforce to develop individual career plans breach and every employee of the organisation.
This is because the career plan process requires an in-depth analysis of each employee’s
strengths and weaknesses on a sustained basis.
m Lack of Objectivity. Only those organisations which believe in strict observance of objectivity
in promotion and transfers can succeed in career planning. In contrast, favoritism and
nepotism in promotions often make career planning an unsuccessful exercise.
m External Interventions. Government rules and regulations can also affect the Grieve planning
options of an organisation.
m Lack of Knowledge and Awareness. Career planning by an employee is essentially a self-
management process. It requires the employees to be aware of the basics of career planning
and management activities. However, the employees at the lower levels of the organisational
hierarchy may not be familiar with the career planning process.
m Lack of Flexibility. Many organisations treat career planning as a ritualistic, rigid exercise.
They often fail to consider the uncertainties caused to the career planning activities by the
changes in the situation. In fact, the absence of dynamic career planning programmes may
limit the applicability of the career plans in uncertain and changing situations.
Different Phases in the Career of an Employee

Most working people go through career stages and it has been found that individual’s needs and
expectations change as the individual moves through these stages.
1. Exploration Stage. This is the stage where an individual builds expectations about his career.
Some of them are realistic and some are not. But the fact is that these could be a result of the
individual’s ambitions.
2. Establishment Stage. This could be at the stage where the individual gets his first job, gets
accepted by his peers, learns in this job, and also gains the first tangible evidence of success
or failure. The establishment/advancement stage tends to occur between ages 25 and 44. In
this stage, the individual has made his or her career choice and is concerned with achievement,
performance and advancement. This stage is marked by high employee productivity and career
growth, as the individual is motivated to succeed in the organisation and in his or her chosen
occupation. Opportunities for job challenge and use of special competencies are desired in
this stage. The employee strives for creativity and innovation through new job assignments.
Employees also need a certain degree of autonomy in this stage so that they can experience
feelings of individual achievement and personal success.
3. Mid-Career Stage. The individual’s performance levels either continue to improve, or levels,
or even deteriorates.
4. Late Career. This is regarded as a pleasant phase, where one is allowed to relax and play
the role of an elderly statesman in the organisation.
5. Decline. The stage, where the individual is heading towards retirement.
The Career Development Action are:
m Job performance. Employee must prove that their performance on the job is to the level of
standards established, if they want career development.
m Exposure. They should expose their skills, knowledge, qualifications, achievements,
performance etc. to those who take the decision about the career progress.
m Resignation. Employee may resign the present job, if they find career opportunities elsewhere
are better than those of the present organisation.
m Change the job. Employees who put organisational loyalty above career loyalty may change
the job in the same organisation if they find that career opportunities in other jobs in the
same organisation are better than those of present job.
m Career guidance. Counselling provides, information, advice and encouragement to switch
over to other career or organisation, where career opportunities are better.
m So, there are two types of mobility in career development actions – internal and external
mobility.
Effective organisational career development techniques include:
m Challenging initial job
m Dissemination of career option information
m Job postings
m Assessment centers
m Career development workshops
m Continuing education and training
m Periodic job change
m Sabbaticals
Individual career development is a three-step self-assessment process:
m Identification and organisation- Identify and organise your skills, interests, work-related needs,
and values.
m Conversion into general fields and a specific goal- Convert these inventories into general career
fields and specific job goals.
m Testing against realities – Test these possibilities against the realities of the organisation or
the job market.
Career Paths
Career paths have historically® focused on upward mobility within a particular occupation. One of
four types of career paths may be used: traditional, network, lateral, and dual.
A. Traditional Career Path. An employee progresses vertically upward in the organisation from
one specific job to the next.
B. Network Career Path. A method of career pathing that contains both a vertical sequence of
jobs and a series of horizontal opportunities.
C. Lateral Skill Path. traditionally, a career path was viewed as moving upward to higher levels
of management in the organisation. The availability of the previous two options has
diminished considerably in recent years. But this does not mean that an individual has to
remain in the same job for life. There are often lateral moves within the firm that can be taken
to allow an employee to become revitalized and find new challenges.
D. Dual-Career Path. A career-path method, that recognizes that technical specialists can and
should be allowed to continue to contribute their expertise to a company without having to
become managers.
QUALITY CIRCLE
Meaning
Quality Circle is a small group of 6 to 12 employees doing similar work who Voluntarily meet together
on a regular basis to identify improvements in their respective work areas using proven techniques
for analysing and solving work related problems coming in the way of achieving and sustaining
excellence leading to mutual upliftment of employees as well as the organisation. It is “a way of
capturing the creative and innovative power that lies within the work force”.
Concept
The concept of Quality Circle is primarily based upon recognition of the value of the worker as a
human being, as someone who willingly activates on his job, his wisdom, intelligence, experience,
attitude and feelings. It is based upon the human resource management considered as one of the
key factors in the improvement of product quality & productivity. Quality Circle concept has three
major attributes:
(a) Quality Circle is a problem solving technique.
(b) Quality Circle is a form of participation management.
(c) Quality Circle is a human resource development technique.
If workers are prepared to contribute their ideas, the management must be willing to create a
congenial environment to encourage them to do so.
Definitions
Quality circles enable the enrichment of the lives of the workers or students and create harmony
and high performance. Typical topics are improving occupational safety and health, improving
product design, and improvement in the workplace and manufacturing processes.
“A Quality Circle is volunteer group composed of members who meet to talk about workplace
and service improvements and make presentations to their management with their ideas.”
(Prasad, L.M., 1998)
Objectives of Quality Circle

The perception of Quality Circles today is ‘Appropriateness for use and the tactic implemented is to
avert imperfections in services rather than verification and elimination. Hence the attitudes of
employees influence the quality. It encourages employee participation as well as promotes teamwork.
Thus it motivates people to contribute towards organisational effectiveness through group processes.
The following could be grouped as broad intentions of a Quality Circle:
1. To contribute towards the improvement and development of the organisation or a department.
2. To overcome the barriers that may exist within the prevailing organisational structure so as
to foster an open exchange of ideas.
3. To develop a positive attitude and feel a sense of involvement in the decision making processes
of the services offered.
4. To respect humanity and to build a happy work place worthwhile to work.
5. To display human capabilities totally and in a long run to draw out the infinite possibilities.
6. To improve the quality of products and services.
7. To improve competence, which is one of the goals of all organisations.
8. To reduce cost and redundant efforts in the long-run.
Act Plan
* Take appropriate * Determine customers
action and needs
* Standardize and * Determine process
plan to improve * Determine training needs
* Determine metrics
* Determine implementation plan
Do
Check or Test
Implement your plan
Check the effects of
implementation
(Quality circle)
9. With improved efficiency, the lead time on convene of information and its subassemblies is
reduced, resulting in an improvement in meeting customers due dates.
10. Customer satisfaction is the fundamental goal of any library. It will ultimately be achieved
by Quality Circle and will also help to be competitive for a long time.
Benefits of Quality Circle

There are no monetary rewards in the QC’s. However, there are many other gains, which largely
benefit the individual and consecutively, benefit the business. These are:
m Self-development. QC’s assist self-development of members by improving self-confidence,
attitudinal change, and a sense of accomplishment.
m Social development. QC is a consultative and participative programme where every member
cooperates with others. This interaction assists in developing harmony.
m Opportunity to attain knowledge. QC members have a chance for attaining new knowledge
by sharing opinions, thoughts, and experience.
m Potential Leader. Every member gets a chance to build up his leadership potential, in view
of the fact that any member can become a leader.
m Enhanced communication skills. The mutual problem solving and presentation before the
management assists the members to develop their communication skills.
m Job-satisfaction. QC’s promote creativity by tapping the undeveloped intellectual skills of
the individual. Individuals in addition execute activities diverse from regular work, which
enhances their self-confidence and gives them huge job satisfaction.
m Healthy work environment. QC’s creates a tension-free atmosphere, which each individual
likes, understands, and co-operates with others.
m Organisational benefits. The individual benefits create a synergistic effect, leading to cost
effectiveness, reduction in waste, better quality, and higher productivity. All these benefits
are lasting in nature, which bring about progress over a period of time.
Problem Solving Tools Used by Quality Circle

Brainstorming
Brainstorming is a group creativity technique by which a group tries to find a solution for a specific
problem by gathering a list of ideas spontaneously contributed by its members. The term was
popularized by Alex Faickney Osborn in 1953 through the book Applied Imagination. In the book,
Osborn not only proposed the brainstorming method but also established effective rules for hosting
brainstorming sessions.
Brainstorming can be defined as the methodology used to encourage every individual in the
Circle to express freely their opinions or give ideas in an open discussion. Brainstorming can be
used to list down all the problem faced by an organisation, their causes and the potential effects if a
certain suggestion is implemented. Brainstorming works by focusing on a problem, and then
deliberately coming up with as many solutions as possible and by pushing the ideas as far as
possible. One of the reasons it is so effective is that the barnstormers not only come up with new
ideas in a session, but also spark off from associations with other people’s ideas by developing and
refining them. Brainstorming can be an effective way to generate lots of ideas on a specific issue and
then determine which idea – or ideas – is the best solution. Brainstorming is most effective with
groups of 8-12 people and should be performed in a relaxed environment. If participants feel free to
relax and joke around, they’ll stretch their minds further and therefore produce more creative ideas.
A brainstorming session requires a facilitator, a brainstorming space and something on which
to write ideas, such as a white-board a flip chart or software tool. The facilitator’s responsibilities
include guiding the session, encouraging participation and writing ideas down. Brainstorming works
best with a varied group of people. Participants should come from various departments across the
organisation and have different backgrounds. Even in specialist areas, outsiders can bring fresh
ideas that can inspire the experts. There are numerous approaches to brainstorming, but the
traditional approach is generally the most effective because it is the most energetic and openly
collaborative, allowing participants to build on each others’ ideas.
Pareto Analysis
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Problems
The Pareto Chart or Pareto Diagram, named after the famous economist Vilfredo Pareto (1848-1923),
is a common tool for quality control and is used as part of a Pareto Analysis to visually identify the
most important factors, most occurring defects, or the most common problems, or in other words “the
vital few”. Pareto Analysis is a statistical technique in decision making that is used for the selection of
a limited number of tasks that produce significant overall effect. It uses the Pareto Principle (also know
as the 80/20 rule) the idea that by doing 20% of the work you can generate 80% of the benefit of doing
the whole job. Or in terms of quality improvement, a large majority of problems (80%) are produced by
a few key causes (20%). This is also known as the vital few and the trivial many. The 80/20 Rule may
be applied to almost anything, from the science of management to the physical world.
The Pareto Principle, or 80-20 Rule, is a general rule-of-thumb or guideline that says that 80% of
the effects stem from 20% of the causes. Vilfredo Pareto originally observed that in Italy, 80% of the
land was owned by 20% of the people. Dr. Joseph M. Juran, a 20th century evangelist for quality
management, applied this principal to quality control and preferred the use of the phrase “the vital
few and the useful many” to describe the 80-20 rule. Although the actual numbers may be different
from case-to-case, the Pareto Principle is a guiding principle used in business for ...
m Customer Complaints (e.g. 80% of the complaints come from 20% of the customers)
m Management (e.g. 80% of the results come from 20% of the group)
m Sales (e.g. 80% of the profits come from 20% of the products)
m Quality Management for identifying the most important causes for defects (e.g. 80% of the
problems come from 20% of the causes)
A pareto chart can help you quickly identify the most significant factors, but choosing which
problems to fix may still require a cost-benefit analysis. If you have a single factor causing 50% of the
problems, but it would cost you a million dollars to fix, and there are 3 other factors causing a total of
30% of the problems that would be much less expensive to fix, perhaps solving the 3 other factors first
would be more beneficial.
Causes and Effects Diagram

Ishikawa diagrams (also called fishbone diagrams, or herringbone diagrams, cause-and-effect diagrams
or Fishikawa) are causal diagrams that show the causes of a certain event — created by Kaoru Ishikawa
(1990). A common use of the Ishikawa diagram is in product design, to identify potential factors
causing an overall effect and to help identify the root cause of non-conformances. Ishikawa diagrams
were proposed by Kaoru ishikawa in the 1960s, who pioneered quality management processes in the
Kawasaki shipyards, and in the process became one of the founding fathers of modern management.
It was first used in the 1960s, and is considered one of the seven basic tools of quality management,
along with the histogram, Pareto chart, check sheet, control chart, flowchart, and scatter diagram. See
Quality Management Glossary. It is known as a fishbone diagram because of its shape, similar to the
side view of a fish skeleton.
Ishikawa diagram
Cause Effect
Equipment Process People
Problem
Secondary
cause
Primary
cause
Materials Environment Management

Measurements Materials Personnel
Calibration Alloys Shifts
Microscopes Lubricants Training
Inspectors Suppliers Operators

Defect XXX
Angle
Humidity Engager Blade wear
Temperature Brake Speed
Environment Methods Machines
Causes
Causes in the diagram are often based on a certain set of causes, such as the 6 M’s, described below.
Cause-and-effect diagrams can reveal key relationships among various variables, and the possible
causes provide additional insight into process behaviour.
Causes in a typical diagram are normally grouped into categories, the main ones of which are:
m The 6 Ms - Men/people, machines, methods, materials, measures, mother nature
m 4 Ps - Places, Procedures, People, Politics
m 4 Ss - Surroundings, Suppliers, Systems, and Skills Causes should be derived from brainstorming
sessions. Then causes should be sorted through affinity-grouping to collect similar ideas
together. These groups should then be labelled as categories of the fishbone. They will typically
be one of the traditional categories mentioned above but may be something unique to our
application of this tool. Causes should be specific, measurable, and controllable.)
Orgnisational Structure of a QC
The structure of a Quality Circle consists of the following elements:
1. A steering committee. This is at the top of the structure. It is headed by a senior executive and
includes representatives from the top management personnel and human resources
development people. It establishes policy, plans and directs the program and meets usually
once in a month.
2. Co-ordinator. He may be a Personnel or Administrative officer who co-ordinates and supervises
the work of the facilitators and administers the programme.
3. Facilitator. He may be a senior supervisory officer. He co-ordinates the works of several quality
circles through the Circle leaders.
4. Circle leaders. Leaders may be from lowest level workers or Supervisors. A Circle leader
organises and conducts Circle activities.
5. Circle members. They may be staff workers. Without circle members the programme cannot
exist. They are the lifeblood of quality circles. They should attend all meetings as far as possible,
offer suggestions and ideas, participate actively in group process, take training seriously with
a receptive attitude. The roles of Steering Committee, Co-ordinator Facilitator, Circle leader and
Circle members are well defined.
Process of Operation
The operation of quality circles involves a set of sequential steps as under:
1. Problem identification. Identify a number of problems.
2. Problem selections. Decide the priority and select the problem to be taken up first.
3. Problem Analysis. Problem is clarified and analysed by basic problem solving methods.
4. Generate alternative solutions. Identify and evaluate causes and generate number of possible
alternative solutions.
5. Select the most appropriate solution. Discuss and evaluate the alternative solutions by
comparison in terms of investment and return from the investment. This enables to select the
appropriate solution.
6. Prepare plan of action. Prepare plan of action for converting the solution into reality which
includes the considerations “who, what, when, where, why and how” of solving problems.
7. Present solution to management circle members present solution to management fore approval.
8. Implementation of solution. The management evaluates the recommended solution. Then it is
tested and if successful, implemented on a full scale.
TRAINING PROGRAMME FOR WORKERS

Kaizen
Kaizen process aims at continuous improvement of processes not only in manufacturing sector but
all other departments as well. Implementing Kaizen tools is not the responsibility of a single individual
but involves every member who is directly associated with the organisation. Every individual,
irrespective of his/her designation or level in the hierarchy needs to contribute by incorporating small
improvements and changes in the system.
Following are the main elements of Six Sigma:
m Teamwork
m Personal Discipline
m Improved Morale
m Quality Circles
m Suggestions for Improvement
Five S of Kaizen “Five S” of Kaizen is a systematic approach which leads to foolproof systems,
standard policies, rules and regulations to give rise to a healthy work culture at the organisation. You
would hardly find an individual representing a Japanese company unhappy or dissatisfied. Japanese
employees never speak ill about their organisation. Yes, the process of Kaizen plays an important role
in employee satisfaction and customer satisfaction through small continuous changes and eliminating
defects. Kaizen tools give rise to a well organised workplace which results in better productivity and
yield better results. It also leads to employees who strongly feel attached towards the organisation.
Let us understand the five S in Detail:
1. SEIRI. SEIRI stands for Sort Out. According to Seiri, employees should sort out and organise
things well. Label the items as “Necessary”, “Critical”, “Most Important”, “Not needed now”,
“Useless and so on. Throw what all is useless. Keep aside what all is not needed at the moment.
Items which are critical and most important should be kept at a safe place.
2. SEITION. Seition means to organise. Research says that employees waste half of their precious
time searching for items and important documents. Every item should have its own space and
must be kept at its place only.
3. SEISO. The word “SEISO” means shine the workplace. The workplace ought to be kept clean.
De-clutter your workstation. Necessary documents should be kept in proper folders and files.
Use cabinets and drawers to store your items.
4. SEIKETSU. SEIKETSU refers to Standardization. Every organisation needs to have certain
standard rules and set policies to ensure superior quality.
5. SHITSUKE or Self Discipline. Employees need to respect organisation’s policies and adhere
to rules and regulations. Self discipline is essential. Do not attend office in casuals. Follow
work procedures and do not forget to carry your identity cards to work. It gives you a sense of
pride and respect for the organisation.
Training Programme of Workers

1. Responsibility of training. To be effective training programme must be properly organised. The
responsibility of the training programme may be shared among the following: The top
management, the personnel department, the line supervisor and the employees.
2. Selection and motivation of the trainees. Proper selection of trainees is of great importance to
obtain permanent and gainful result. It is necessary to decide who is to be trained new or old
employees, unskilled and semiskilled workers, supervisor and executives.
3. Preparation of the trainer. The success of the training programme depends upon the trainer or
the instructor trainer must be well qualified and may be obtained from within and outside of
the organisation. It should be decide before hand what is taught and how.
4. Training material. Training material may include study notes, case, studies, pamphlets, charts,
brochures, manuals, movie and slides. The material may be prepared in the training section
with the help of the supervisor.
5. Training period. The length of the training period depends upon the skill of the trainees,
purpose of the training, training learning capacity, and the training media used.
6. Performance tryout. The trainee is asked to do the jobs several time slowly. His mistake are
corrected and if necessary the complicated step are explained again.
7. Follow up. In this step, the effectiveness of the training programme is assessed. The feedback is
generated through the follow up will have to reveal weakness or errors, if any.
EXECUTIVE DEVELOPMENT
Meaning
Executive development or management development is a systematic process of learning and growth
by which managerial personnel gain and apply knowledge, skills, attitudes and insights to manage
the work in their organisation effectively and efficiently.
According to Flipo “executive development includes the process by which managers and executives
acquire not only skills and competency in their present job but also capabilities for future managerial
tasks of increasing difficulty and scope.”
Methods of Executive Development

A great variety of management development techniques are used by different organisations to develop
their executive manpower. The selection of techniques rests on philosophy of development. There are
two principal methods of executive development which are generally used by the firms. One is on-the-
job development and the other is off-the job development. We shall discuss here under the various one
the-job and off-the-job executive development technology. There are two various methods:
1. On-the-Job Methods
On-the-job Method of executive development is the most popular method of developing the executive
talent. The main techniques are–
(a) Coaching. Under this technique, the superior coaches the job knowledge and skill, to his
subordinates. He briefs the trainees what is expected of them and guides how to get it. He also
watches their performance and directs them to correct the mistakes. The main objective of this
training is to provide them diversified knowledge. Coaching is recognised as one of the
managerial responsibilities, and the manager as an obligation to train and develop the
subordinates working under him. He delegates his authority to the subordinates to prepare
them to handle the complex situations.
(b) Understudy. This system is quite different from the system discussed above. Under this system,
a person is specifically designated as the apparent who is called the understudy. The
understudy’s future depends on what happens to his superior leaves his post due to promotion,
retirement or transfer. The department manager picks up one individual from the department
to become his understudy. He guides him to learn his job and tackle the problems tat confront
the manager.
(c) Job Rotation. Under this system, an individual is transferred one job to another or from open
department all to another in the co-ordinated and planned manager with a view to broaden the
general background of the trainee in the business. The trainees are rotated from one job to
another and thus they acquires a considerable degree of specialised knowledge and skill but a
man can never acquire the diversified skill needed for promotion unless is deliberately put in
different types of situations.
(d) Special Project. A special assignment is a highly useful training device, under which a trainee
is assigned a project that is closely related to his job. He well study the problem and submit the
written recommendations upon it. It will not only provide the trainee a valuable experience in
tackling the problem but would also have the other values of educating the trainees about t
importance of the problem and to understand the organisational relationship of the problem
with different angles. Thus the trainee acquires knowledge of the assigned task and learns to
work with others having different viewpoints.
(e) Committee Assignments. This system is similar to special project. Under this system an adhoc
committee is constituted and is assigned a subject related to the business to discuss and make
recommendations. The committee will study the problem, discuss it and submit to be report
containing the various suggestions and recommendations to the departmental manager. With
a view to avoid the unnecessary hardships in studying the problem, the members of the committee
should be selected from different departments, having specialised knowledge in different fields
but connecting to the problem.
2. Off-The-Job-Methods
The main techniques under this method are :
(a) Special Courses. The method of special courses requires the trainee to leave the work place and
to devote the entire time to developmental objectives. The prime object of such special courses is
to provide an opportunity to the trainee to acquire knowledge with full devotion. Development
is primary and work is secondary. These courses may be conducted in a number of ways-
Firstly, the organisation establishes such courses to be taught to the trains by the members of
the firm or by the regular instructor appointed by the firm or by the regular instructor appointed
by the firm or by the specialists (professors and lecturers_ from other outside institutions. The
second approach to this technique is to send the personnel programmes established by the
colleges or universities. The organisation sponsors some of its members to the courses and
bears the expenses. The third approach to the technique is to work with a college or other
institutions in establishing a course or a series of courses to be taught by faculty members. A big
organisation may starts its own training school.
(b) Role Playing. Under this method, two or more trainees are assigned different roles to play by
creating an artificial conflict situation. No dialogued is given before hand. The role players are
provided with the written or oral description of the situation and the role to play. Sufficient
time is given to the role players to plan their actions and they must act their parts before the
class. For instance role playing situation may be a supervisor discussing grievances with his
subordinate.
(c) Case Study. Case study technique is extensively used in teaching law, business management,
human relation, etc., to let the trainee understand that there must be different solutions to a
particular problem. Under this method, the trainees are given a realistic problem to discuss,
which is more or less related to the principles already taught. This method provides an
opportunity to the trainee to apply his skill to the solution of realistic problems. Cases may be
used in either of the two ways: (i) They can be used after exposing the formal theory under
which the trainee applies their skill to specific situation, or (ii) They may be assigned to the
trainees for written analysis or oral discussion without any prior discussion of the theory.
(d) Conference. A conference is a group meeting conducted according to an organised plan in
which members participate in oral discussion of a particular problem and thus develop their
knowledge and understanding. It is an effective training device for conferences members and
conference leaders. Both learns a lot from others view point and compare his opinions with
others. The conference leaders may also learn how to develop his skill to motivate people
through his direction of discussion. Conferences may be of three types:- (i) The directed or
guided conference, (ii) Consultative conference, and (ii) Problem solving conference. However
guided conference is generally used for training purposes.
(e) Multiple Management. Under this system, a permanent advisory board or committee of
executives study the problems of organisation and make recommendations to the higher
management for final decision. There is another device, constituting a junior board of directors
in a company for training the executives. The board is given power to discuss any problem
which the senior board of directors (constituted by shareholders) could discuss. The utility of
junior board is only to train the junior executives. Thus junior board discuss wide variety of
subjects which a senior board can discuss or in other way, it is an advisory body.
(f) Managements Games. It is a classroom exercise, in which teams of students compete against
each other to achieve common objective. The game is designed to be a close representation of
real life conditions. The trainees are asked to make decisions about production, cost, research
and development, etc., for an organisation. Since they are often divided into teams as competing
companies, experience is obtained in team work. Under this method, the trainees learn by
analyzing problems by using some intention and by making trial and error type of decisions.
Any wrong is corrected by the trainer or sometimes a second chance is given to something all
other again.
(g) Syndicate Method. Under this method, 5 or 6 groups consisting of about 10 members are
formed. Each group (Syndicate) is composed of carefully selected men who, on the one and,
represents fair cross section of the executive life of the country, i.e. men from public sector and
private sector undertakings, civil and defense services, banking, insurance, etc., and on the
other hand, a good well balance team of management from different fields, i.e., production,
marketing, personnel, finance, etc. The groups are given assignments, made up before hand to
be submitted within a specified date and time. Each man in the group is appointed leader of the
group for the performance of the given task by rotation and so for the secretary for the subdivision
of the course. Each task is assigned in the form of a ‘Brief’, a document prepared by the experts
on the faculty with meticulous care. It also fixes the time by which the study is to be completed.
Lecturers by experts are also arranged to supplement the study. The report prepared an
submitted by a group is circulated among the members of the other groups for comparative
study and critical evaluation. The leader or chairman of the group is required to present the
views of his group in the joint session and justify his group’s view in case of criticism or
questions.
(h) Sensitivity Training or T-Group. In sensitivity training, the executives spends about two work-
hours attending the lectures on the subject such as leadership and communication. The members,
under this method, sit around a table and discuss. The trainer, usually a psychologist, neither
leads the discussion nor suggests what should be discussed but only guides the discussion.
The members freely discuss and criticize the behaviour of each other thereby giving a feedback
positive or negative.
(i) Programmed Instruction. Programmed instruction as gained a lot of importance both in training
and in industry in modern times it includes teaching machines, auto instruction, automatic
instruction and programmed learning. It is an application of science of learning to the task of
training and education. The core feature of programmed instruction is the participation by the
trainee and immediate feed back by him. Programmed instruction machines include films,
tapes, programmed books, illustrations, printed material, diagrams, etc. it performs two
functions:- (i) provides information to the learner, and (ii) provides feed back whether the
response is correct or wrong.
(j) Selective Readings. Many executives find it very difficult to do much reading other than that
absolutely required in the performance of their jobs. Some organisations provide some time
for reading which will advance the general knowledge and background of the individuals.
Many organisations purchase some high level journals like the Commerce, the Capitalist, the
Management in Govt., etc. and dailies like the Economic Times, the Financial Express, etc.
Objectives of Executive Development

The programme of executive development aims at achieving following purposes:
m To inculcate knowledge of human motivation and human relationships.
m To increase proficiency in management techniques such as work study, inventory control,
operations research and quality control.
m To sustain good performance of managers throughout their careers by exploiting their full
potential.
m To acquire knowledge about problems of human resources.
m To think through problems which may confront the organisation now or in the future.
m To understand economic, technical, and institutional forces in order to solve business
problems.
m To develop responsible leaders.
The Process of the Executive Development
1. Ascertaining Development Needs. The organisation at the time of planning, should know;
what types of managers are required to meet his present requirements and its future needs,
taking into consideration the anticipated changes in production methods and techniques, in
the industrial development of the country and in the size of the organisation. It should also
be decided how many vacancies are to be filled in by the process of promotion. The
management must provide the opportunities for the development of the talent and capabilities
of its present employer to meet the challenges of the higher jobs.
2. Appraisal of the Present Management Talent. After ascertaining the needs of the
development, the management should appraise the talent of its present staff by comparing
the actual performance with the standard performance. How to develop a person, can be
judged only by evaluating his performance on various occasions in performing his managerial
duties.
3. Inventory of management Manpower. An inventory of qualified personnel should be
prepared and a selection for the various development programmes should be made. Such
inventory will provide all necessary personnel data regarding the individuals qualified for
development.
4. Individual Development Programme. The chief executive must know the limitations of the
individual and chalk out the various development plans according to their mental and
physical characteristics.
5. Establishment of Training and development Programme. As far as possible, a systematic
procedure should be introduced for the development of executives. Crash programme may be
used for the purpose which includes development programmes in the fields of human relations
creativity, training, leadership capacity etc.
6. Evaluating Development Programme. After completing the development programme, its
evaluation should be made, to see whether the objectives of the programme have been achieved
or not and any deficiency should be improved further.
Evaluating Training Programme

The main objective of evaluating the training programme is:
m To determine if they are accomplishing specific training objectives, that is correcting
performance deficiencies.
m To ensure that any changes in trainee’s capability is due to training programme and not due to
any other condition.
m To determine their cost effectiveness.
m Finally, credibility of training is greatly enhanced when it is proved that the organisation has
benefitted tangibly from it.
Criteria for Evaluation

Criteria used for evaluating training effectiveness:
1. Reaction criteria–reaction measures reveal trainees’ opinions regarding the training programme.
2. Learning criteria – learning measures assess the degree to which trainees have mastered the
concepts, knowledge and skills of training.
3 . Behavior change criteria – behavior indicates the performance of learners. Changes in job
behavior.
4 . Organisational results – examine the impact of training on the work group or the entire company.
Process of training evaluation Steps:
m Setting intended standards
m Measuring actual outcomes
m Finding deviation
m Corrective action
Methods for Evaluating Training Programme

1. Observation method. Observation method is done by closely observed during the training
programme. Performance in practical work situation, participation in discussion, role play,
timing, presentation method. The errors are carefully observed and recorded.
2. Test-retest method. In this method participants are given a test to establish their level of
knowledge before they enter the training programme. After the completion of training, they
retake the test. The change in test scores indicate the change in the level of knowledge resulting
from training.
3. Pre-post performance method. The actual job of each participants is evaluated and rated prior
to training. After the training the participant’s job performance is reevaluated. Changes in job
performance is attributed to training.
4. Experimental control group method. Two groups are formed. One group is control group
whose members work without undergoing training. Another group is experimental group
whose member undergo training. Two groups are evaluated at the end of the training. If the
performance of the experimental group improves, training is regarded effective.
5. Training surveys. Direct questioning to trainees to get reaction, generally after the end of training
participants are asked to fill-up form containing- physical facilities, achievement of training
objectives, contents, trainer effectiveness, suggestions for improvement etc.
6. Cost effectiveness analysis. It assess total value of training benefits against total cost of
training. Training is effective if benefit exceeds costs.
CIRO Approach to Evaluate Training

The CIRO approach to evaluate training impact is and another 4 level approach which is originally
developed by Warr, Bird and Racham. It is unique way to classify evaluation process.
This approach consists of five level of evaluation, first letter of each evaluation forms the word
CIRO.
1. Context evaluation
2. Input evaluation
3. Reaction evaluation
4. Outcome evaluation
5. Organisational level
1. Context evaluation of the learning event. Context evaluation involves collecting information
about performance deficiency, assessing that information to establish training needs and on
the basis of those findings, setting of objectives at three levels.
Context of the learning event concerns with obtaining and using information about the current
operational situation in order to determine training needs and objectives. This evaluation
determines if training is needed. During this process three types of objectives may be evaluated.
m Ultimate objectives. The particular deficiency in organisation that program will eliminate.
m Intermediate objective. Changes in employees work behaviour necessary for attainment of
ultimate objectives.
m Immediate objectives. New knowledge, skills or attitudes that employees must acquire to
change their behaviour and to reach intermediate objectives.
2. Input evaluations to the learning event. It concerns with how well the learning event was
planned, managed, designed and delivered. It involves determining how cost efficient, cost
effective and feasible and well chosen major inputs are. It involves analyzing the resources
available and determining how they can be deployed in order to achieve maximum possibility
of desired objectives.
3. Reaction evaluations to the learning event. Reaction evaluation concerns with obtaining and
using information about participants reactions to improve the HRD process. The distinguishing
feature of this type of evaluation is that it rely on subjective inputs of participants. It can be
helpful when collected and used in systematic and objective manner.
4. Outcome evaluation of the learning even. This involves assessing what actually happened as
a result of learning event. Outcome should be measured at any or all of the following levels,
depending on the object of the evaluation exercise and resources available for the task.
I. The learner level. This involves establishing changes in learners knowledge, skills and
attitudes at the completion of the training. These changes can be determined and compared
with levels of knowledge, skills and attitudes identified at the beginning of program.
II. The workplace level. This involves changes that take place at the workplace level in the
learners job behaviour. This can be measured by appraisal, observation, discussion with
the manager of learner/peers/customers/clients.
III. The team/department or unit level. This involves identifying changes that take place in
team, department or unit as a result of learning event. It is very difficult to evaluate changes
at departmental level. Changes at departmental level may include alteration in departmental
output, costs, scrap rates, absenteeism, and staff turnover or accident frequency. Unit level
changes may include enhanced productivity rates, reduced labour costs, and reduced
absenteeism and staff turnover rates.
5. Organisational level. This involves identifying changes that take place in the organisation as
whole after the completion of training program. This outcome is also very difficult to evaluate.
The changes which may occur after the introduction of training program may include change
in culture of organisation, more flexibility, and reduced level of conflict, enhanced ability to
attract and retain valued workers.
Kirkpatrick’s Model of Training Evaluation

1. Reaction. Reaction is defined as what participant's views are regarding program, including
materials, instructors, facilities, methodology and content etc. A participant's reaction is
sometimes a critical factor in redesigning or continuing training program. Responses on reaction
questionnaires help in assuring against decisions based on comments of few very satisfied or
dissatisfied participants.
2. Learning. Learning evaluations is concerned with measuring extent to which principles, facts,
techniques and skills have been acquired. There are many techniques through which extent of
learning can be measured like paper and pencil test, skill practices and job simulations.
This level of evaluation answers following questions:

m What knowledge was acquired?
m What skills were developed or enhanced?
m What attitudes were changed?
3. Behaviour. Behavioral changes is measured to determine the extent to which skills and
knowledge learned in program have translated into improved behavior on the job. Evaluation
in this category may include before and after comparisons of observations from the participants
superiors, subordinates, peers and self assessment.
4. Result. Evaluation of results involves monitoring organisational improvement such as cost
saving work output changes and quality changes. In this level of evaluation the key questions
are:
m What happens to organisation as a result of training efforts?
m What is return on investment on training?
m How training helped in resolving the problems identified as a result of performance gap
analysis?
m How has training helped organisation accomplish its mission?

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UNIT

CONCEPT OF HUMAN RESOURCE DEVELOPMENT (HRD)

Organisation of HRD Functions

Functions of Human Resource Development

Differences Between HRD and Personnel

Instrument or Mechanism of HRD

The Contribution of Subsystems to HRD Goals

A Schematic Presentation of Linkages between HRD Instruments, Processes,

Elements of HRD Climate

Principles in Designing HRD System

Objectives of Performance Appraisal

Purpose of Performance Appraisal

Process of Performance Appraisal

Who Will Appraise

Performance Appraisal Biases

Poor Appraisal Forms

Methods of Performance Appraisal

Quantity of work: Volume Unsatisfactory Fair Satisfactory Good Outstanding

How to Construct Bars?

Rank Rating Percentage of surplus/Deficit of

Introducing a Good Potential Appraisal System

TRAINING AND DEVELOPMENT

Training and Development

Traditional and Modern Approach of Training and Development

Objective of Training and Development

Characteristics or Features of Training

Need of the Training

Benefits of Training to Employers/Organisation

Benefits for the Employees

Types of Training Methods

Training and Development Methods

II. Off-the-Job Methods

The Training Process

1 Assessment 2 Design 3 Delivery

Scope of the Quality of Work Life

Techniques for Improving Quality of Work Life

Benefits to the Organisation

Meaning & Definitions of Career Planning

Nature of Career Planning

Functions of Career Planning

Career Planning Process

The Need for Carrier Planning

Organisational Career Planning

Limitations of Career Planning

Different Phases in the Career of an Employee

Objectives of Quality Circle

Benefits of Quality Circle

Problem Solving Tools Used by Quality Circle

Don’t Have Excel

Causes and Effects Diagram

Equipment Process People

Materials Environment Management

Measurements Materials Personnel

Calibration Alloys Shifts

Microscopes Lubricants Training

Inspectors Suppliers Operators

Humidity Engager Blade wear

Temperature Brake Speed

Environment Methods Machines

TRAINING PROGRAMME FOR WORKERS

Training Programme of Workers

Methods of Executive Development

Objectives of Executive Development