What is HR Management?

Human resource management is basically the administration of human resources. It primarily

refers to handling employees and acknowledging their requirements for maintaining a positive
work culture.
The definition of HRM also includes a set of practices, which helps manage employee data like
attendance, payroll, and ensure smooth employment.

What are the Objectives of Human Resource Management?

The primary objectives of Human resource management are to ensure a seamless experience for
the staff and other people associated with management and accomplish organizational goals.
Objectives of HRM include ensuring the availability of resources, easy access to data, on-time
payroll, ensuring compliance, etc.
The objectives of human resource management (HRM) are aligned with the entire interest of the
organization for enhancing the productivity and profitability of a business.
HRM objectives are basically influenced by organizational goals and verticals. The objective of HRM
is to ensure a stable work environment with organized data management and efficient operations.
1. Achieve Organizational Goals
The HRM objectives are to fulfill organizational goals by utilizing human resources to achieve
business requirements and standards. It is very important for an effective HRM to accomplish the
organizational goals to inflate the profitability of an organization.
Organizational objectives include workforce handling, staff requirements like hiring, onboarding,
payroll management, social engagement, and more. To succeed at the organizational objectives,
HR requires efficient planning and execution.
Without a set parameter for goals, mission, and resources, HRM is incomplete. After you know your
resources and planning at the place, achieving HRM objectives gets streamlined. Some more
objectives are explained further.

2. Work Culture
When it comes to handling HRM effectively, employee and work environment are the prior factors.
Work culture plays an important role in defining HRM and business performance.
An HR manager needs to be active while calling for strategies to foster better work culture.
Automated activities like leave approvals, reimbursement request acknowledgement, etc. can help
you. In addition, Quick operations and empowerment to employees help in creating positive vibes
at the workplace. Developing and maintaining healthy and transparent relations among team
members and teams contribute to building a good example of work culture.
Adopting the right solutions like an employee management system can solve more than half of
your job. Small steps like short and sound onboarding processes can help build a good image of
the workplace.

3. Team Integration
One of the prime roles and objectives of HRM is to make sure the team coordinates efficiently. Easy
communication is the need for teams in an enterprise. An HR here must ensure a tool that assists
in making the integration easier and smooth. The proper connection between individuals is a must
to ensure productivity. To make human capital management successful, you need to search for
better integration portals to make data availability easier for people.
Functional objectives like team integration are to produce streamlined operations and tasks. The
right tool like the self-service portal can bring employees closer to HR folks.

4. Training and Development

Workforce being effective and performing are two important and basic elements to work upon for
achieving your basic objectives at an organization.
With proper training and providing future opportunities, employees feel safe and organized.
Effective employment is highly dependent upon training practices. Providing opportunities to
employees is one of the great step to ensure workforce performance management.
There might be difficulties such as planning, scheduling training sessions, and evaluation of each
on-boards.
To lessen the pain, solutions like training management software can help you with auto-reminders,
easy scheduler, reporting, and tracking capability. The HR manager can ensure effective training
practices at the firm.

5. Employee Motivation
The prime objective of the HR team is to keep things on the right path. Keep distractions and
negative vibes away.
For this, the employees need to be attended to and kept motivated throughout. But the question
here is:
▸How can HR motivate employees?
For motivating employees, it is important to give power to them. Take their views on things. Involve
them in weekly meets or decisions. Even if they are freshers, let them join. Keep the morale always
high.
Employee recognition like yearly appraisals, incentives, and bonuses based on their performance
can too help. It must be framed yearly to review the performances as well as reward the deserving.
An automated feedback system for performance appraisal management can keep your employees
motivated and ensure productivity throughout the service. When the employees are satisfied and
fulfilled, nothing else can prevent them from accomplishing the required target for the
enhancement of productivity.

6. Workforce Empowerment
Talking about employee motivation, nothing can work better than empowering them. Empowering
them with tools like ESS portal can help save HR efforts too.
With the portal, employees can apply for approvals and track them through their mobile phones.
Be it leave requests, generating Payslip, checking PF accounts, remaining leaves, upcoming
holidays, manager details, or anything, HR intervention is least required.
Employees no more need to knock on HR’s desk for small queries as all the minute details would
be made available on the ESS portal. The workforce plays a pivotal role in an organization as the
functioning of the business depends on the skills of the employees.
When the objective of HRM would align with individual interests it inflates the encouragement of
employees to heights. What else could empower workforce would take? How would you ensure the
right workforce engagement? Effective HRM measures can definitely help. Look for easy employee
management tips.

7. Retention
Providing leadership qualities and opportunities, a healthy working area, and employee retention
are some prime objectives and deliverables of the HR managers. Keeping employees retained and
motivated needs to be a top priority for HRM.
To ensure the retention of employees, the HR department should optimize the functional objectives
of the company in accordance to the interest of company as well as its workforce to ensure the
engagement of staff in achieving the company’s goals.
Other than employee hiring, onboarding, and training cycle, keeping the employees retained for
long is the biggest challenge AKA the objective of the HR people. It often occurs that employees
leave the organization within 2 months of onboarding. It can be due to ineffective training
management or a rough hiring process.
Employee experience needs to be carefully attended to. Keeping your employees retained can help
maintain a good state of employee turnover. To keep it stable, the HR manager needs to learn the
best retention tips for business.

8. Data and Compliance

Functional and organizational objectives also include managing company/ employee data and
managing compliance. Managing payroll compliances and keeping the company out of any penalties
or fines is a huge challenge for the Human resource management (HRM) teams and managers.
Even a small error or miscalculation can owe you huge penalties and even may lose respect. When
committing to tasks like employment and payroll, you need to be careful about laws and
regulations. The objective here is to keep any unwanted claims at bay for smooth functioning.
Automated software is the main element in human resource management and objectives attaining.
Like the HRMS system can help you keep errors at the side and leave no window for owing any
penalty from IRS.
It is the responsibility of HR to follow IRS guidelines and standards for effective employment at the
company. Stay assured of all the legalities.

What is the importance of HRM?

1. Quality of work-life
Quality of work refers to the overall quality or productivity of employees at their workplace. It tells
about the employee’s impression of the physical and psychological productivity of employees at the
workplace.

The HR manager makes conscious efforts to maintain the quality of work at the workplace as it is
directly related to employee productivity. This can be done by reducing the work-life stress and
workload, providing rewards and recognition as well as any other financial benefits if possible.

2. Meeting demand and supply gap for human resources

Besides maintaining the physical resources in an organization, an HR manager ensures that
appropriate human resources in an organization. They are responsible for finding the right fit for
the organization to ensure high performance and productivity. This can be done through campus
placements and other recruitment drives whenever needed. Also, unproductive employees can be
laid off from the organization.

3. Training and overall development

Training and development are the continued efforts of any organization to boost employee
productivity and performance. Spending money on training and development is an investment for
an organization that will generate good future returns. This investment not only benefits employees
but is also a major benefit for organizations in improving productivity scale.
Training can be provided to new employees in the organization as well as to old employees to boost
their productivity. These training sessions teach decision-making skills, leadership skills, building
thought processes etc.

4. Employee motivation and retention

The major task of Human resource management is to build a sense of belongingness in employees.
It is essential to motivate each employee so that they can work to their full potential. This can be
done with the help of employee recognition programs.

An employee getting recognition gets a purpose for their job, therefore motivating them to do better
next time. Another method is to provide them with regular monetary benefits such as meal coupons
and gift cards.

5. Building a healthy work culture

Healthy work culture plays an important part in any organization. The workplace should be safe,
comfortable and valued for employees. It is needed to bring the best out of employees.

HR makes sure that the work culture is democratic and transparent. Employees should be provided
with the power to present their ideas and point in the organization. This culture is found to be best
for employees as well as organizations. The more happy the employees are, the more will be their
productivity.

6. Employee wages and salaries

Appropriate compensation is necessary for employees so that they can feel the job’s worth.
Compensation may be in the form of wages, additional benefits and perks or travel packages etc.

7. Maximizing profit and productivity

Human resource management helps to ensure how much personnel are required in which
department. It also ensures that enough opportunities should be provided to existing employees of
the organization for their growth and career opportunities.

Such employees who work to achieve their personal growth are directly related to the growth of
the organization. Thereby minimizing the cost and maximizing productivity.

8. Strategy Management
Human resource is an important aspect of any organization. HR managers work on and manage
all the strategies laid out by top management and industry experts. It also takes part in the
corporate decision and strategy making for all the employees in achieving their goals or targets.

9. Establishing corporate image

Every organization must have a good brand image in the industry. HRM plays an important role in
building the brand image of an organization in front of external and internal stakeholders.
Moreover, employees would be more willing to work for an organization which possesses a good
image in the market.
Evolution of HR

Human resources development during the Industrial Revolution:

The Industrial Revolution has seen significant growth in the industry. Such as the development of
machinery, the use of mechanical capacities in production processes, and the emergence of the
factory term, so in keeping with all that development, it was necessary to use more manpower. So,
a system must be developed to manage these large numbers of unusual workers.

Three human resources management systems.

Recruitment of workers, workers' training, and labour control have developed even though the
basic policy prevailing in that period was based on Mr Al-Khadim's basis, which still exists to some
extent.

Development of human resources during the trade union movement:

In the aftermath of the Industrial Revolution, workers' conditions were poor, so many serious steps
needed to be taken to save the deteriorating situation caused by the First World War. The brokerage
system and the appointment of business officers within enterprises imposed the task of verifying
recruitment tasks and securing workers' requirements.

At the same time, with the emergence of trade unions to protect their members from workers and
solve some significant problems such as child labour, long working hours, and poor working
conditions, the unions relied on protests and strikes to demand solutions to their problems.

Evolution of human resources during the period of social responsibility:

At the beginning of the twentieth century, factory owners and companies relied on a more humane
approach to managing their workers, which was based on the philosophy of fatherhood, in a more
detailed sense that a worker should not be treated as a worker but as a child by business owners
who took on the role of father, as they must take care of their workers as well as their children.

The first to apply that approach was a British industrialist and humanitarian activist, Robert Owen,
who felt that the economic and social environment affected the worker's physical, mental, and
psychological development.

Human resources development during the period of scientific administration:

At this point, human resources are managed according to scientific foundations rather than the
prevailing management system, which places on the principle of initiative and incentives based on
functional experience.
In the early 20th century, American scientist Frederick Winslow Taylor developed a scientific
approach to human resources management through:

Study and measure the time taken for each job or operation and standardise the job's functions.

Study the movement of objects in the workplace and reduce excessive movement—standardising
all machines, tools, equipment, and working conditions.
Evolution of human resources during the period of human relationship:

Experts and sociologists worked to convey their thoughts and opinions on human aspects and their
role in human resources management from 1925 to 1935. In his book Psychology and Industrial
Competence, applied psychologist Hugo Munsterberg suggested that psychology should use staff
selection, training, and testing.

Australian psychologist Elton Mayo conducted a series of experiments within the Hawthorne plant
of Western American Telephone and Telecommunications Services between 1924 and 1932.

The experiments intended to determine the impact of changing working conditions on the
productivity and evolution of work.

As a result of those experiences, Mayo and his colleagues concluded that workers' productivity
depended on social factors prevailing in the workplace, group formation and impact,
communication, leadership, and supervision and that organisations must pay attention to human
relations outside physical conditions in the workplace to achieve increased production.

The evolution of human resources from the 1960s to the early twenty-first century:

As human resources continue to evolve, workplaces have begun to change, with employers
realising that workers are not puppets with their own hands but with their emotional and
psychological needs. So, personnel departments have improved their efforts in workers'
internships and working with trade unions to establish better compensation and rewards for them.

At the same time, some theories, especially human motivation theories such as Desi and Ryan's
self-determination theory and Herzberg's second-factor theory, have contributed to changing
workplace strategy.

Industrial psychology and management have helped in human resources management by paying
more attention to the need for staff to succeed, evolve and appreciate by matching the

nature of work with a person's knowledge, abilities, and skills, as well as his or her interests.

Today's human resources:

Today's Human Resources Management sector requires more efforts to be more flexible and
dynamic in light of ongoing technological development and growing challenges, including
epidemics, health conditions, delayed supply chains, increased inflation, and significant talent
shortages.

Resource professionals must have many new skills, such as workforce analysis, artificial
intelligence, digitisation of human resources, strategic planning, design thinking, human resources
management as a product, and others.

What are the future trends in human resources management?

Having seen the evolution of human resources over the years and how developments have become
more practical, the talk has now reached the most critical trends that human resources expect to
take in the future. The most anticipated and demanding is that resource officers be more flexible
and fast in making decisions and facing expected disruptions.
He also believes in changing how employee performance evaluates to become more specialised.
He expects to replace the annual audit system with real-time performance reports. This helps
secure the training needed for employees to improve productivity.

Resource staff's digital expertise and ability to use artificial intelligence applications in
management will become necessary, helping to prepare a more diverse team.

Workforce analyses must rely upon to determine the age, gender, and ethnicity of the right
employees and thus create a multi-background team, which is an excellent benefit for the company,
and modern technology helps make such decisions.

It is also expected that most of the tasks in the resources section will be divided into separate
components.

This method increases corporate agility, and this step has already begun to apply within companies
looking for a flexible human resources instructor to prepare employees in many

What is Transfer?

A transfer is a change in job assignment. It is the internal movement of an employee from one
section to another without involving any substantial change in his duties, responsibilities, required
skill, status, and compensation. A transfer does not imply any ascending (promotion) or descending
(demotion) change in status or responsibility.

Transfer means shifting of an employee from one job to another, one unit to another, or one shift
to another and may involve a new geographical location. Transfers have a number of objectives,
such as moving employees to positions with a higher priority in terms of goals, placing employees
in positions more appropriate to their interests or abilities, or filing department vacancies with
employees from overstaffed departments.
Purposes of Transfer of Employees
These are the purposes of transfer of employees in HRM:

PURPOSE

To Meet the Organizational Requirements

To Meet Employees’ Requests
To Ensure Better Utilization of the Employees
To Make the Employees More Versatile
To Adjust the Workforce
To Provide Relief to the Employee
To Reduce Conflicts and Incompatibilities
To Penalise the Employees
To Maintain a Tenure System
To Accommodate Family-Related Issues
Let’s discussed the types of transfer in HRM:

Production Transfers
A shortage or surplus of the workforce is common in different departments in a plant or several
plants in an organization. Surplus employees in a department have to be laid off unless they are
transferred to another department. Transfers affected to avoid such inevitable layoffs are called
production transfers.

Replacement Transfers
A replacement transfer is the transfer of a senior employee to replace the junior employee or a
new employee, when the latter is laid off or shifted to another job, Sometimes, it is a temporary
arrangement to make use of the services of the senior personnel.

Versatility Transfers
Versatility transfers are effected to make employees versatile and competent in more than one
skill. It aims at giving training to the employees of various jobs of similar nature having different
operations. It helps the employees to get themselves prepared for promotions and also helps the
employer in developing the effective manpower prepared to handle the higher openings.

Shift Transfers
When the unit runs in shifts, employees are transferred from one shift to another on similar jobs.
In some undertakings, where shifts are operated regularly, employees may be recruited
permanently for the shift, but in some cases, they are rotated from one shift to another as a matter
of practice because many employees dislike second or third shift assignment as it interferes with
their social or family engagements.

Remedial Transfers
Remedial transfers are effected at the request of the employees and are, therefore, called personal
transfers. Personal transfers take place because the initial placement of an employee may have
been faulty or the worker may not get along with his supervisor or with other workers in the
department.

He may be getting too old to continue his regular job or working conditions may not be well adapted
to his personal health. If the job is repetitive, the employee may stagnate and would benefit by
transferring to a different kind of work.

Precautionary Transfers
Such transfers are made as a precautionary measure to avoid the misuse of office or
misappropriation of funds by the employees. In some undertakings, there are more chances of
misuse of office or misappropriation of funds than in others. Generally, it is mentioned in the
transfer policy of the organization that an employee cannot stay at one post for more than 3 years
or so.

On the Basis of Unit

Sectional Transfers
These transfers are made within the department from one section to another. The main purpose of
such transfers may be to train the workers and prepare them to handle the operations of different
sections of the department.
Departmental Transfers
Transfers from one department to another department within the plant is called departmental
transfer. Such transfers are made if the nature of work is the same or substantially the same in
both the departments such as clerical or routine jobs.

Inter-Plant Transfers
If there is more than one plant under the control of the same management, the transfer may be
made from one plant to another for varied reasons. Such transfers are called inter-plant transfers.

What is Promotion?
Promotion is the transfer of an employee to a job that carries higher pay and status. A promotion
involves reassigning an employee to a position with increased responsibilities, higher privileges,
increased benefits, and more significant potential.

For example, in the vacant post of General Manager Thus, Promotion is a vertical shifting of an
employee. The purpose of a promotion is to a Job that is worth more to the organization than the
incumbent’s present position.

Promotion refers to the upward movement of an employee from a current job to another that is
higher in pay, responsibility, status, and organizational level. A mere shifting of an employee to a
different job that has better working hours, better location, and more pleasant working conditions
does not imply promotion. The new job will be promoted only if it entails increased responsibilities
and enhanced pay.
Promotion based either on meritorious performance or continuous service has powerful
motivational value. It inspires employees to complete and get ahead of others. Promotions and
transfers are activities through which an adjustment in the size of the workforce of an enterprise
can be made to cope with the changing situations.

The lateral or vertical movement of an employee within an organization is called ‘internal mobility.
It may take place between jobs in various departments or divisions. These functions can be
accomplished formally or informally. Usually, formal systems are adopted to ensure operative
consistency and efficiency.

Purposes of Promotion in HRM

These are the purposes of promotion to achieve the following purposes:

• To put the employee in a position where he will be of greater value to the company. This will
imply, utilizing the employee’s skill and knowledge at the appropriate level in the
organization’s hierarchy resulting in organizational effectiveness and employee satisfaction.

• To develop competitive spirit and zeal in the employees to acquire the skill and knowledge
etc. required by higher level jobs.

• To develop internal sources of employees ready to take jobs at higher levels in the
organization. Employees have little motivation if better jobs are reserved for outsiders.

• To promote employee self-development and make them wait their turn for promotions. It
reduces labor turnover.
 • To build up morale, loyalty, and a sense of belongingness on the part of employees when it
is brought home to them that they would be promoted if they deserve it.

• To promote employees’ interest in training and development programs and in team

development areas.

• To builts loyalty among employees and boost their morale.

• To reward committed, loyal and deserving employees.

• To create among employees a feeling of contentment with their present working conditions
and encourage them to succeed in the company.

Types of Promotion in HRM

There are three types of promotion based on the following criterion:

Seniority Based Promotion in HRM

Merit-Based Promotion
Seniority-cum-merit Basis
Multiple Chain Promotion
Up or Out Promotion
Dry Promotion

Seniority Based Promotion in HRM

Seniority means the length of recognized service in an organization. If seniority is adopted as the
basis of promotion, the senior most person in the lower grade shall be promoted as and when
there is an opening in the higher position, The logic behind considering seniority as a basis of
promotion is that there is a positive correlation between the length of service in the same job and
the amount of knowledge and the level of skill acquired by an employee in an organization.

Seniority on the basis of length of recognized service in the organization is decided by the
organization and every employee knows his place in the promotion line. There will be no chance of
favoritism or dispute regarding promotion. Seniority is widely recognized as the basis of promotion
in almost all types of organizations, particularly in organizations where trade unions are strong.

Advantages of Seniority Based Promotion in Hrm

• The advantages of seniority based promotion in HRM are as follows:
• It is relatively easy to measure the length of service and judge the seniority.
• Trade unions generally emphasize seniority rather than on merit as a basis of promotion.
• The employees trust this method as there is no scope for favoritism, discrimination, and
judgment.
• Security and certainty are also a plus point in the use of seniority. Employees can predict
when and how they will be promoted. It increases employee morale and gives the employees
a sense of satisfaction.
• It minimizes the scope for grievances and conflicts regarding promotion.
 • Seniority as the basis of promotion helps in reducing labor turnover because an employee
will not easily give up his seniority in the organization.

Disadvantages of Seniority Based Promotion in HRM

• It is not necessary that employees learn more with the length of service. The employees
may learn up to a certain age and learning capabilities may diminish beyond a certain age.
• It demotivates the young and more competent employees and results in greater labor
turnover.
• It kills the zeal and interest for self-development as everybody will be promoted without
showing any all-around growth or promise.
• Judging the seniority, though, may seem very easy in a theoretical sense, is highly difficult
in practice, as so many problems like job seniority, company seniority, service in different
organizations, trainee, researcher, etc. will crop up.

Merit-Based Promotion
Merit means the ability to work. It denotes an individual employee’s skill, knowledge, ability,
efficiency, and aptitude as measured from educational, training, and past employment record. If
merit is adopted as the basis of promotion the ablest person in the lower grade, no matter
howsoever junior he may be in the company shall be promoted.

It encourages all employees to improve their efficiency. Management personnel generally prefer
merit as the basis of promotion. Merit may be determined by job performance and by analysis of
employee potential for development through written or oral examinations or personal interviews
or other records of performance. Thus, ‘ability’ ignores the value of experience.

Advantages of Merit Based Promotion in HRM

These are advantages of merit based promotion in HRM:

• The skills of an employee can be better utilized at a higher level. It results in maximum
utilization of human resources in an organization.
• Competent employees are motivated to exert all their energies and contribute to
organizational efficiency and effectiveness.
• This system continuously encourages the employees to acquire new skills, knowledge, etc.
for all-around development.

Disadvantages of Merit Based Promotion in HRM

Following are some points of disadvantages of merit based promotion in HRM:

• Measuring merit is not always easy.

• Many employees, particularly, trade unions distrust the management’s integrity in judging
merit.
• The techniques of merit measurement are subjective.
• The purpose of promotion may not be served if merit is taken as the sole criteria for the
promotion. Merit should mean future potentiality but not past performance. This method
takes into consideration past achievements but not future success.
Seniority-cum-merit Basis

There is a great controversy on the question of whether promotions should be given on the basis
of seniority or merit. Managers mostly prefer merit as the basis of promotion as they are interested
in enriching organizational effectiveness by enriching its human resources.

But, trade unions favor seniority as the sole basis for promotion with a view to satisfying the
interests of the majority of their members. The most widely used basis of promotion combines both
ability and seniority. The best policy would be to ensure that whenever there are two employees of
equal seniority, merit or ability should be the deciding factor in a promotion.

Where, however, there are two employees of almost equal competence, seniority should be the
decisive factor. Such a policy should satisfy both the management and the trade unions. Hence, a
combination of both seniority and merit may be considered a sound basis for promotion.

Multiple Chain Promotion

Multiple chain promotion provides a systematic linkage of each position to several others. It
provides multi-promotional opportunities through clearly defined avenues of approach to and exit
from each position in the organization.

Up or Out Promotion
In this case, an employee either earns a promotion or seeks employment elsewhere. Out promotion
usually leads to the termination of employment and joining some other organization in a better
position.

Dry Promotion
In this type, promotion is given in lieu of an increase in salary. For example, when a university
professor is made Head of the Department, there is no increase in salary.

Importance of Training

Adequately planned and well-executed training program can lead to the following advantages.

Importance of Training are:

• Higher productivity and better quality of work

• Reduction in wastage and cost
• Increases morale and loyalty
• Reduced supervision and low accident rates
Importance of Training

Higher productivity and better quality of work

Formal training leads to the enhancement of skills of the employees that enables them to perform
their job more efficiently. As standard methods are taught to the employees it improves the quality
of product and services.

Reduction in wastage and cost

Workers learn how to make the optimum use of resources. Training leads to the economic use of
material and machinery and helps minimize the cost of operations per unit.

Increases morale and loyalty

Training helps boost the morale of the employees by developing a positive attitude, job satisfaction
and enhanced learning. It makes them loyal to the organization as they develop a sense of
commitment.

Reduced supervision and low accident rates

Training develops well-motivated employees who are self-reliant, they do not need constant
guidance and supervision. Employees can also avoid mistakes and accidents on the job as they can
handle a job with confidence and adopt the right work methods

1. To the Organization
2. To the Employees
3. For Personnel and Human Relation

To the Organization

• Gets more effective in decision-making and problem-solving.

• Improve the morale of the workforce.
• Helps people identify the organizational goal.
• Aids in developing leadership skills, motivation, loyalty and better attitude.
• Aids in improving productivity and quality of work.
• Aids in understanding and carrying out organizational policies.
• Aids in organizational development.
• Creates an appropriate climate for growth and communication.
• Helps employees adjust to change.

To the Employees

• Increases job satisfaction and recognition

• Moves a person towards personal goals while improving skills
• Helps in eliminating the fear of attempting new tasks
• Provides the trainee with an avenue for growth
• Through training and development, motivational variables of recognition, achievement
growth, responsibility and advancement are internalized and operationalised
• Provides information for improving leadership, communication skills and attitudes
• Helps to handle stress, tension, frustration and conflict
For Personnel and Human Relation
• Improve inter-personnel skills
• Improves morale
• Builds cohesiveness in groups
• Makes the organization a better place to work and live
• Provides information on other governmental laws and administrative policies.
Difference between Training and Development:
Basis Training
Meaning Training refers to the
process of increasing the
knowledge, skills, and
abilities of employees for
doing work.
Aim Its main aim is to help the
employee to do the job
better.
Orientation It is job oriented.
Scope of learning It has a narrow scope as it
is a part of development.
Suitability It is more suitable for
technical staff.
Skills It involves teaching
technical skills.
Duration It is a short-term process.
Level of trainees involved Trainees are non-
managerial here.
Depth of knowledge Knowledge is imparted for
imparted doing a specific kind of job.
Initiative in learning Employers take the initiative
in providing training to their
employees.
Development
Development refers to the overall
growth of the employees. These
are learning opportunities that are
designed for employees to grow.
Its main aim is the overall growth
of employees.
It is career oriented.
It has a broader scope as it
includes training.
It is more suitable for managerial
staff.
It involves teaching technical,
human, and conceptual skills.
It is a long-term process as it is
career oriented.
Trainees are managerial here.
Knowledge is imparted for the
growth of an employee in all
respects.
Individuals take initiative by
themselves for their growth and
development.
Meaning of Training

Training is a process by which the skills, talents, and capabilities of the employees of an
organization are increased. Training helps employees to grasp new skills and utilize the knowledge
provided. Training is not only required by the new employees, but it is also necessary for the current
staff. Training is not a one-time job. It is a continuous process that helps increase the performance
of the employees and prepares them for their new job or keeps them updated on their present job.
It is a short-term systematic approach that guides the employees and teaches them how to handle
the given responsibilities. Training employees is essential as they need to be updated on
technological advances and the latest development.
Training Methods

There are several methods of training. These are mainly categorized into two groups: On-the-Job
and Off-the-Job methods. On-the-Job methods are generally the methods that are applied to the
workplace during the working of the employee. It means learning while working. Off-the-Job
methods refer to the methods that are used away from the workplace. It means learning before
working.

On-the-Job Methods

Following are the On-The-Job methods:

Apprenticeship Programs:
Apprenticeship programs place the trainee under the guidance of well-trained personnel. These
programs are designed to obtain skills and knowledge of higher levels. Such programs are
necessary for people entering skilled jobs, like, plumbers, electricians, etc. These apprentices are
trainees who enter into these programs and invest some time working under the guidance of a
professional or a trainer. The trainees are required to spend a specified time here where both fast
and slow learners are trained together. The slow learners may be provided with additional training.

Coaching:
In this method, the trainer who is known as the coach guides and instructs the trainee. The coach
or the trainer sets the required goals with a mutual discussion, advises on how to achieve those
goals, analyzes the trainees’ progress from time to time, and suggests changes necessary in the
attitude and performance. The trainee works under the senior manager and the manager takes full
responsibility for the employees’ training. The training is done to take the place of the senior
manager so that he can be freed from some of his duties. This is also a chance for the trainee to
learn about his job and the working of the organization.

Internship Training:
Internship training is a cooperation of educational institutions and business firms. These trainings
are generally a joint program. The candidates who are selected continue to pursue their studies
regularly and also work in a factory or office to gain the practical knowledge and skills required
for a job.

Job Rotation:
Job rotation involves shifting trainees from one job to another or from one department to another.
This allows the trainee to gain a better understanding of the working of the organization and all its
parts. The rotation enables the trainee to indulge in all kinds of operations from different
departments, and also allows them to enhance their knowledge and skills. This is also beneficial
for the trainees, as they get to interact with other employees, which creates cooperation among
different departments. Such training of employees makes it easier for the organization at the time
of promotions, replacements, or transfers.

Off-the-Job Methods
Following are the Off-the-Job methods:

Class Room Lectures or Conferences:

The lecture or conference method is generally used for conveying specific information, rules,
procedures, or methods. The use of audio-visual means makes a formal classroom presentation
more interesting along with increasing the memory and proving an instrument for clearing
difficulties or doubts.

Films: Films supply information and show a definite display of skills that are not easily represented
by other techniques. The use of films together with conference discussion is a very effective
method in most cases.
Case Study:
Case studies are the actual experiences faced by the organization. They display the events that the
managers have faced in real life. The trainees study these cases and analyze them sincerely to find
out the problems and their causes, come up with possible solutions, select the best solution and
at last, implement it.

Computer Modelling:
It encourages the work environment by developing a computer program that copies a few of the
realities of the job and enables learning to take place securely. It also allows the organization to
see the mistakes that may occur and how much they would cost. This saves the organization from
making mistakes in such situations in real life.

Vestibule Training:
In vestibule training, the employees are given training on the equipment that they will be using
during their jobs. Though the training is conducted away from the actual workplace, the trainees
are provided with a work environment in which all the pieces of equipment, files, and materials to
be used are present. This method is usually used when the employees need to handle advanced or
complex equipment and machinery.

Programmed Instruction:
Such a method includes a predetermined and proposed acquisition of some definite skills or
general knowledge. In this method, the information is divided into meaningful units, and these units
are arranged in a proper way to form a logical and consecutive learning bundle or collection, i.e.,
from simple to complex. The trainee is required to answer the questions asked or by filling in the
blanks.
Components of Remuneration

An employee in the organized sector is entitled to several benefits both financial as well as non-
financial. To be specific, typical remuneration of an employee comprises wages and salary,
incentives, fringe benefits, perquisites, and non-monetary benefits.

1. Wages and salary

Wages represent hourly rates of pay, and salary refers to the monthly rate of pay, irrespective of
the number of hours put in by an employee. Wages and salaries are subject to annual increments.
They differ, from employee to employee, and depend upon the nature of job, seniority, and merit.

2. Incentives
Also called “payments by results”, incentives are paid in addition to wages and salaries. Incentives
depend upon productivity, sales, profit, or cost reduction efforts.
There are: (i) individual incentive schemes, and (ii) group incentive programmers. Individual
incentives are applicable to specific employee performance. Where, a given task demands group
effort for completion, incentives are paid to the group as a whole. The amount is later divided among
group members on an equitable basis.

3. Fringe Benefits
These include such employee benefits as provident fund, gratuity, medical care, hospitalization,
accident relief, health and group insurance, canteen, uniform, recreation and the like. These are
hidden costs of employers which are given to the employees.

4. Perquisites
These are allow to execute and include company car, club membership, paid holidays, furnished
house, stock option schemes and, the like. Perquisites are offered to retain competent executives.
In the crisis and available labor market even perquisites play an impertinent role.

5. Non-monetary Benefits
These include challenging job responsibilities, recognition of merit, growth prospects, competent
supervision, comfortable working conditions, job sharing, and flextime. These benefits are not
directly linked to fennel. But organizations spend a lot of money for the welfare of the employees.

What is a Performance Appraisal?

A performance appraisal is a systematic and periodic process of measuring an individual’s work

performance against the established requirements of the job. It’s a subjective evaluation of the
employee’s strengths and weaknesses, relative worth to the organization, and future development
potential.

Performance appraisals are also called performance evaluations, performance reviews,

development discussions, or employee appraisals.

If you conduct a successful performance appraisal, you can get a handle on what the employee
does best and identify areas that require improvement. Appraisals also come in handy for deciding
how to fill new positions in the company structure with existing employees.
Types of Performance Appraisals

Performance appraisals can be broken down into four distinct significant types:

1. 360-Degree Appraisal
The manager gathers information on the employee’s performance, typically by questionnaire, from
supervisors, co-workers, group members, and self-assessment.

2. Negotiated Appraisal
This type of appraisal uses a mediator to help evaluate the employee’s performance, with a greater
emphasis on the better parts of the employee’s performance.

3. Peer Assessment
The team members, workgroup, and co-workers are responsible for rating the employee’s
performance.

4. Self-Assessment
The employees rate themselves in categories such as work behavior, attitude, and job performance.

Note that some organizations use several appraisal types during the same review. For instance, a
manager could consult with the employee’s peers and assign a self-assessment to the employee.
It doesn’t have to be a case of either/or.

How Performance Appraisals Work?

Human resources (HR) departments typically create performance appraisals as a tool for
employees to advance in their careers. They give people feedback on how well they are doing in
their jobs, ensuring that they are managing and achieving the goals set for them and assisting them
if they fall short.

Performance evaluations assist in determining how to distribute a company's limited budget for
giving out incentives, such as raises and bonuses. In addition, they give businesses a tool to identify
the workers who have made the most contributions to their expansion so that they may
appropriately reward their top performers.

Performance reviews also assist employees and their managers in identifying areas for
improvement and career advancement, as well as in developing a strategy for the employee's
development through extra training and more responsibility.

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Methods of Performance Appraisals

Performance appraisals come in many forms. Managers and human resources staff responsible
for these appraisals need to choose the best methods based on the size of their organization and
what sorts of responsibilities the employees fulfill.
1. 720-Degree Feedback
You could say that this method doubles what you would get from the 360-degree feedback! The
720-degree feedback method collects information not only from within the organization but also
from the outside, from customers, investors, suppliers, and other financial-related groups.

2. The Assessment Center Method

This method consists of exercises conducted at the company's designated assessment center,
including computer simulations, discussions, role-playing, and other methods. Employees are
evaluated based on communication skills, confidence, emotional intelligence, mental alertness,
and administrative abilities. The rater observes the proceedings and then evaluates the employee's
performance at the end.

3. Behaviorally Anchored Rating Scale (BARS)

This appraisal measures the employee’s performance by comparing it with specific established
behavior examples. Each example has a rating to help collect the data.

4. Checklist Method
This simple method consists of a checklist with a series of questions that have yes/no answers for
different traits.

5. Critical Incidents Method

Critical incidents could be good or bad. In either case, the supervisor takes the employee’s critical
behavior into account.

6. Customer/Client Reviews
This method fits best for employees who offer goods and services to customers. The manager asks
clients and customers for feedback, especially how they perceive the employee and, by extension,
the business.

7. Field Review Method

An HR department or corporate office representative conducts the employee's performance
evaluation.

8. Forced Choice Method

This method is usually a series of prepared True/False questions.

9. General Performance Appraisal

This method involves continuous interaction between the manager and the employee, including
setting goals and seeing how they are met.

10. Human Resource Accounting Method

Alternately called the “accounting method” or “cost accounting method,” this method looks at the
monetary value the employee brings to the company. It also includes the company’s cost to retain
the employee.

11. Management By Objective (MBO)

This process involves the employee and manager working as a team to identify goals for the former
to work on. Once the goals are established, both parties discuss the progress the employee is
making to meet those goals. This process concludes with the manager evaluating whether the
employee achieved the goal.

12. Performance Tests and Observations

This method consists of an oral test that measures employees' skills and knowledge in their
respective fields. Sometimes, the tester poses a challenge to the employee and has them
demonstrate their skills in solving the problem.

13. Project Evaluation Review

This method involves appraising team members at the end of every project, not the end of the
business year.

14. Rating Scales

These ratings measure dependability, initiative, attitude, etc., ranging from Excellent to Poor or
some similar scale. These results are used to calculate the employee's overall performance.