Unit 3

MBA/BBA/PGDCA/UGC Net

By
Dr. Anand Vyas
Predicting employee performance
• Human capital forms the foundation of any organization, and employee
performance has a significant impact on the bottom line. In fact, research
indicates that a five per cent increase in employee engagement is linked to
a three percent growth in revenues in the subsequent year. Yet, most HR
departments struggle in the management of employee performance.

• Employees often perceive performance reviews as a process that inclines

heavily towards traditional practices (Bell Curve Method), is subjective and
consumes time. If they are not satisfied with outcomes, their morale,
productivity and performance may plunge. Consequently, it may lead to
high turnover. However, it is an important exercise given that it creates a
high-performing culture and motivates top-performing employees. It
enables the organization to identify skill gaps, develop learning and
development programs, retain employees and do succession planning.
Training requirements
• A Training Needs Analysis (TNA) is a process by which an
organisation’s HRD needs are identified and articulated. The process
can identify:
• An organisation’s goals and its effectiveness in reaching these goals
• Discrepancies or gaps between an employee’s skills and the skills
required for effective current job performance
• Discrepancies or gaps between an employee’s skills and the skills
needed to perform the job successfully in the future
• The conditions under which the HRD activity will occur.
Types of Needs Analyses

• Organizational Analysis
• Person Analysis
• Work analysis / Task Analysis
• Performance Analysis
• Content Analysis
• Training Suitability Analysis
• Cost-Benefit Analysis
Evaluating Training and Development
• Training Evaluation Method Types, Stages and Programs: Companies
spend a lot of money for the training purposes of their employees
and that’s why it is necessary for them to understand the
effectiveness of the Employees Training and Development Programs.
The training evaluation helps them cut the costs and save a great deal
of time, which can then use for their business. This assessment is
actually a measure to check the cost effectiveness of the given
training program and to ensure that the training is capable of filling
up the competency gaps within the organization.
• Basis of Training Evaluation
• Reaction deals with the response of the participant regarding whether they liked the training course or
not and if they did, then which part of it was the most interesting one and if not, then what’s the reason.
Learning deals with the degree to which the participants gained the knowledge and the rate of gain.
Behavior involves the checking of the level of the application of the skills, whereas, results deal the effect
of the skills and knowledge on the success of the organization.

• Training Evaluation Methods :

• Satisfaction and Participant reaction: Satisfaction evaluation is the most basic measure for assessing the
success rate of any training. For the purpose, the trainer, usually, hands out a survey at the end of the
course to test the reaction of the participants.
• Knowledge Acquisition : In this method, participants are supposed to take the exam, after the training.
The instructors or the trainers check and grade the responses, and share the results with the students as
well as the training managers. This is done so that any gaps in the expected and acquired knowledge can
be quickly sewn up.
• Behavioral Application : This method demonstrates the level to which the participants apply their newly
acquired knowledge in their real life and real world problems. This provides crystal clear evidence of who
is applying the knowledge, where the knowledge is being applied and for what purposes. This can assist
the management to avoid any misapplications.
• Measuring the Business Improvement : The primary objective of nearly all the organizations arranging
the training courses is to generate a particular business improvement. So, it means that we can assess
the success level of a training program by the improvement made in that particular field, once the
training is complete and the participants are ready to apply their knowledge for the cause of
development of the brand.
 Stages of Training Evaluation

Following-
up
Post-
Assessment
Post- (learning)
Assessment
Pre-training (reactions)
Assessment
Describing
the
outputs
Optimizing Selection and Promotion decisions
• The ability to select the right person for the job, the team, the
project. is a fundamental capability of highly successful organizations
and leaders. Unfortunately, it is also an area that, in most
organizations, is done rather poorly. This would be more clearly
understood if they looked at their level of engagement, performance,
and positive retention.

• Don’t Focus on The Questions, Focus on The Interview.

• Test A Candidate’s Skills
• Include Other Relevant Employees
Analyzing and Classifying Training needs
1. Change
2. Development
Measuring Training effectiveness
1. To determine if the training benefits employees.
2. To see the effect on business performance and determine the
training’s ROI.
3. To uncover issues in the training process and improve it.
 Predicting Training effectiveness and performance
• Training Effectiveness Models – Kirkpatrick Model of Training Effectiveness
• Measuring the effectiveness of training programs consumes valuable time and resources. As we
know all too well, these things are in short supply in organizations today. Many training programs
fail to deliver the expected organizational benefits. Having a well-structured measuring system in
place can help you determine where the problem lies. On a positive note, being able to
demonstrate a real and significant benefit to your organization from the training you provide can
help you gain more resources from important decision-makers.

• The Kirkpatrick Model

Level 1 – Reaction: To what extent did the participants find the training useful, challenging, well-
structured, organized, and so on.
Level 2 – Learning: To what extent did participants improve knowledge and skills and change
attitudes as a result of the training.
Level 3 – Behavior: To what extent did participants change their behavior back in the workplace as a
result of the training.
Level 4 – Results: What measurable organizational benefits resulted from the training in terms such
as productivity, efficiency and sales revenue.
Designing a Compensation System
• Compensation can be defined as all of the rewards earned by employees in return for
their labour.

• This includes:
• Direct financial compensation, consisting of pay received in the form of wages, salaries,
bonuses and commissions provided at regular and consistent intervals. Child care is
somewhat unique in that some provinces offer “wage enhancement” or “pay equity”
supplements to wages. Sometimes these are built in to wage rates, and sometimes they
are separate (e.g., Newfoundland and Labrador).
• Indirect financial compensation, including all financial rewards that are not included in
direct compensation and can be understood to form part of the social contract between
the employer and employee, such as benefits, leaves, retirement plans, education and
employee services.
• Non-financial compensation, referring to topics such as career development and
advancement opportunities, opportunities for recognition, and work environment and
conditions.
Understanding compensation Analytics,
Quantifiable data
• Components:
• External competitiveness
• Internal equity
• Region
• Level

Benefits
• Salary benchmarking
• Evaluating pay
• Transparent compensation
• Compensation analysis is dynamic
• Identifying opportunities
Factors affecting Compensation & Benefits
Analytics for compensation planning
• Compensation strategies that entice employees to stay at the company are
more important than ever.
• Compensation has become much more complicated, as it’s no longer just
about exchanging money for time.
• Today’s compensation plan must maximize the effectiveness of the budget
for each employee and department. At the same time, it needs to provide
satisfaction and security to your employees, ensuring that they’re
compensated fairly.
• What’s more, a good compensation plan incorporates ways of motivating
employees to perform at their best. You can do so by providing a range of
performance incentives that are appealing, relevant and quantifiable.
Techniques:
• Market Data Comparison
• Labour Cost Analysis
• People count Analysis
• Retention Analysis
• High Performer Analysis
 Competency Scorecard
• Competency Mapping Analysis
• 1) Identify key components of employee job descriptions – the critical points only. Focus on
what characteristics and skills are absolutely essential to get the job done. Remember that
job descriptions often serve different purposes when posting a position than is needed to
explain the role’s responsibilities.
• 2) Clarify roles and eliminate superfluous information – narrow the scope again. Look
through your essential words and phrases. Ask yourself whether you have more words than
needed to describe the essential characteristics. Then ask yourself whether the role’s
responsibilities are clear. How do they align to the task? the team’s mission? the overall
organizational strategy? If they don’t, back to the drawing board.
• 3) Identify required aptitudes, attitudes, skills, and knowledge for roles – critical components
of the competencies are what is beneath the surface of employee behavior. Like an iceberg,
we see only what is above water, but realize the vast majority is underneath. These values,
underlying skills, and approach to work is what you’re after. Identify what you need for a
successful employee.
• 4) Synthesize ideas into central themes and define them – no more than 10 competencies.
You will get mired in the assessment and analysis portion if you don’t narrow it down to the
critical few. Start researching other similar organizations and the competencies they require
of employees. Look to the K-12 educational sector. There’s quite a bit of knowledge about
teacher competencies that will likely align very well with your team