UNIT - III

EMPLOYEE TRAINING

Training is the process by which the aptitudes, skills abilities of employees to perform specific jobs are increased.

Need for Training
 Job

Requirements  Technological changes  Organizational viability  Internal mobility

Importance of training
 Higher

productivity  Cost reduction  Low employee turnover  Better organizational climate  Reduce accidents  High morale  Better satisfaction  Personal growth

Types of Training
 Orientation

Training  Job Training  Safety training  Promotional training  Refresher training  Remedial Training

A Systematic Approach to Training
Identify Training Needs
Present Performance Job Gap Desired Performance

Setting Training Objectives and Policy

Designing Training Programme

Conducting the Training

Follow up and Evaluation

Identify the Training Needs
 Organizational
   

analysis

Analysis of objectives Resource utilization analysis Analysis of organizational climate Environmental scanning

 Task

or role analysis  Manpower Analysis

Setting Training Objectives

Designing a training Programme
 Distribute

the responsibility of Training  Selecting and Motivating the target group  Preparing the Trainers  Developing Training Package  Presentation  Performance Tryout  Follow-up

Conducting the Training (Methods and techniques of Training)
 On-the

Job Training (Job Instruction Training)  Off the Job Training
   

Vestibule Training Apprenticeship Training Classroom Training Internship Training

Follow-up and Evaluation

Principles of Training
        

Clear Objective Training Policy Motivation Reinforcement Organized Material Learning Periods Preparing the Instructor Feedback Appropriate Techniques

Executive Development
 Management

Development includes the process by which managers & executive acquires not only skills and competency in their present job but also capabilities for future managerial task of increasing difficulty and scope.

Objectives of Executive Development
 To

improve the performance of managers at all levels in their present job.  To sustain good performance of managers throughout their career.  To prevent obsolescence of executives by exposing them to the latest concept and techniques in their respective areas of specialization.

Process of Executive Development
Analysis of Development Need Appraisal of Present Managerial Talent Inventory of Executive Man Power Planning Individual Development Programs Establishing Training & Development Program Evaluating Development Program

Methods and Techniques of Executive Development
 On

– the – Job Technique – the – Job Technique

 Off

On – the – Job Technique
 Coaching  Under

Study  Position Rotation  Project Assignment  Committees  Multiple Management  Selected Readings

Off – the – Job Techniques
        

Lectures Case Studies Group Discussion Conferences Role Play Management Games In Basket Exercise Sensitivity Training Program Instructions

Principles of Executive Development
 

    

Top Management should accept responsibility for executive development. Every Manager must accept direct responsibility for developing the executives under his control on the job. Executive developing program must be geared to the needs of the company and individual. It should begin with the selection of the right man for the executive position. A realistic time schedule should be there. Learners participation is essential. Feedback should be made available to the learner.

Human Resource Development
HRD is an organized learning experience aimed at matching the organizational need for Human Resource with the individual need for career growth and development.

HRD Model
Human Resource Development Plans
Individual Development Plans Knowledge, Skills & Attitude Organizational Development Plans Work Culture, Organization Change etc

Trained & Developed Employees Healthy Organizational Climate

Organizational Effectiveness

HRD in Indian Industry
 Private
  

Sectors

L&T Asian Paints Voltas etc

 Public
  

Sectors

BHEL SBI Indian Oil etc

Career Planning
Career Planning is the systematic process by which one selects career goals and path to these goals.

Career Planning and Manpower Planning

Career Planning and Succession Planning

Succession Planning
Succession Planning is the process of ensuring that qualified persons are available to assume key managerial positions whenever these fall vacant due to untimely death, premature firing, resignations and retirements.

Important Terminologies
 Career

Goal  Career Path  Career Progression  Career Counseling  Mentoring

Objectives of Career Planning
 To

attract and retain right type of persons in the organization  To map out careers of employees suitable to their abilities and willingness  To provide guidance and encouraging employees to fulfill their potentials  To achieve higher productivity and organizational development

Process of Career Planning
Identifying individual needs and aspiration Analyzing Career opportunities

Identifying Match and Mismatch

Formulating and Implementing strategies

Reviewing Career plans

Essentials of effective Career Planning
 Top

Management support  Expansion  Clear Goals  Motivated and Hardworking Staff  Proper Selection  Fair Promotion Policy  Internal Publicity  Continuity

Career Development
Career Development is essential for implementing Career Plans.

Process of Career Development
Career Need Assessment Career Opportunities

Need-Opportunity Alignment
Individualized Techniques Performance Appraisal MBO Career Counseling

Monitoring career Moves

Case Study- 3 Rajan has been employed for six months in the accounts section of a large textile company in Tirupur. You have been his supervisor for the past three months. Recently you have been asked by the management to find out the contributions of each employee in the accounts section and monitor carefully whether they are meeting the standard set by you. A few days back you have been completed your formal investigation and with the exception of Rajan, all seems to be meeting the targets set by you. Along with numerous errors, Rajan’s work is characterized by low performance-often does 20% less then other clerks in the department. As you look into Rajan’s performance review sheets again, you begin to wonder whether some of the remedial training is needed for people like him.

Questions
1)

As Rajan’s supervisor can you find out whether poor performance is due to poor training or some other cause?

2) If Rajan is inadequately trained, how would you go about introducing a remedial training programme? 3) Should you supervising him more closely? Can you do this without making it too obvious to him and coworkers? 4) Should you discuss the situation with Rajan?

Performance Appraisal
Performance Appraisal is the systematic, periodic and impartial rating of an employee’s excellence in matters pertaining to his present job and his potential for a better job. - Flippo

Potential Appraisal
It is different from assessing the performance.  Potential refers to the ability present but not currently utilized.  It is the latent capacity to discharge higher responsibility in future roles.

Objectives of Performance Appraisal

  

To provide feed back to employees so that they come to know where they stand and improve their job performance To provide valid database for promotions, Transfers etc To identify the Training needs To develop positive superior-subordinate relations and thereby reduce Grievances To test the effectiveness of Recruitment, Selection, Placement and Induction etc

Process of Performance Appraisal
Establishing performance Standards Communicating standards Measuring Performance Comparing with Standards Discussing Results Taking Corrective actions

Problems in Performance Appraisal

Errors in Rating
     

Halo Effect Stereotyping Central Tendency Constant errors (Leniency Rating, Strictness Rating) Personal bias Spill over effect

    

Lack of Reliability Incompetence Negative Approach Multiple Objectives Resistance

Essentials of an effective performance Appraisal
 Mutual

Trust  Clear Objectives  Standardization  Training  Job Relatedness  Documentation  Individual Differences  Post appraisal interview

Performance Appraisal Interview

 Tell

and Sell Interview  Tell and Listen Interview  Problem Solving Interview

Methods and Techniques of Performance Appraisal
 Traditional

Methods  Modern Methods

Traditional Methods
         

Confidential Report Free form of Essay Straight Ranking Paired Comparison Forced Distribution Graphic Rating scales Checklist Method Critical Incidents Group Appraisal Field Review

Modern Methods
 Assessment

centers  Human Resource Accounting  Behaviorally Anchored Rating Scales (BARS)  Appraisal through MBO  360 Degree Appraisal

Behaviorally Anchored Rating Scales (BARS)
Steps involving in BARS Technique Identify

Critical Incidents  Select Performance Dimensions  Retranslate the Incidents  Assign Scales to Incidents  Develop Final Instruments

Appraisal through MBO
Steps involved in this technique are Set

organizational Goals  Defining Performance Targets  Performance Review  Feedback

360 Degree Appraisal
Superior

Self

Employee

Peer

Subordinate

Job Change
Employees move from one job to another job with in the organization is known as “Internal Mobility”. Employees leave the organization due to any reason is known as “External Mobility”.

Purpose of Job Change
 To

improve organizational effectiveness  To maximize employee’s efficiency  To cope with changes in operations  To ensure discipline

Transfer
A lateral shift causing movement of individuals from one place to another usually without involving any marked change in duties, responsibilities, skills needed or compensation.

Need and purpose of Transfers
 To

meet organizational needs  To satisfy employee needs  To better utilize employees  To make the employee more versatile  To adjust the work force  To provide relief  To punish employee

Types of Transfers
 Production

Transfers  Replacement Transfers  Versatility Transfers  Remedial Transfers  Shift Transfers

Promotion
It is the upward movement of an employee in the organization’s hierarchy, to another job commending greater authority, higher status and better working conditions.

Dry Promotion

Promotion Vs Upgradation

Promotion Vs Transfers

Bases for Promotions
 Seniority

Bases  Merit Bases  Seniority-cum-Merit Bases

Demotion
It is the downward movement of an employee in the organizational hierarchy with lower status and lower salary.

Causes of Demotion
 Adverse

Business conditions  Incompetence  Technological changes  Disciplinary measures

Separation
When any employee leaves the organization due to any reason is known as Employee Separation

Types of Employee Separation
 Resignation  Retirement  Layoff  Retrenchment  Dismissal

Retirement
 Compulsory

Retirement  Premature Retirement  Voluntary retirement

Outplacement
It is a human resource programme used to help separated employees deal with the emotional stress of job loss and to provide in assistance in finding a new job.

Absenteeism
Absenteeism means the failure of a worker to report for work when he is scheduled to work.
Number of mandays lost due to absence

Absenteeism =
Number of mandays scheduled to work

X 100

Absenteeism in India

Causes of Absenteeism
          

Nature of work Poor working conditions Sickness Accidents Lack of interest Absence of housing and transport facility Poor management system Lack of regular leave arrangement Rural ties Alcoholism and gambling Other causes

Control over Absenteeism
         

Proper hiring Good working conditions Housing and transport facility Safety programmes Incentives Effective supervision Disciplinary actions Regular leave provisions Employee counseling Proper records

Labor Turnover

Labor Turnover

“The rate of change in the working staff of a concern during a definite period, commonly a month is known as LABOR TURNOVER.”

LABOR TURNOVER

ACCESSION/ ADDITION

SEPERATION/ TERMINATION

VOLUNTARY

INVOLUNTARY

MEASUREMENT OF LABOR TURNOVER

1.) Accession Method 2.) Separation Method 3.) Combined Method 4.) Replacement Method

Accession Method

No of employees joining the concern during the year Turnover Rate = X 100 No of employees at the beginning of the 2 Year + no of employees at the end of the year

[

]/

Separation Method

Total Separation during X 100 Turnover Rate =the year Average no of employees

Combined Method

( Accession +Separation during the year ) / 2 Turnover Rate = X 100 Average no of employees

Replacement Method

( Accession - Separation during the year ) X 100 Turnover Rate = Average no of employees

Causes of Labor Turnover
LABOR TURNOVER

EMPLOYEE ORIENTED

EMPLOYER ORIENTED

EMPLOYEE ORIENTED CAUSES

AVOIDABLE

UNAVOIDABLE

• INCOMPETENCE • LAZINESS • DISLIKE OF WORK • ROLLING STONE BY NATURE • DESIRE FOR A JOB NEAR BY HOME

•SICKNESS •ACCIDENTS •DEATHS •RETIREMENTS

EMPLOYER ORIENTED CAUSES

AVOIDABLE

UNAVOIDABLE

•POOR MANPOWER PLANNING •LACK OF PROMOTION POLICY •LOW PAY •POOR WORKING CONDITIONS •UNFAIR SUPERVISION •STAGNATIONS •SEASONAL NATURE OF BUSINESS

Effects of Labor Turnover
 Cost

to Employer  Cost to Employees

Compensation Management

Compensation Management
An Employee’s total compensation consist of four components Base

Compensation/Basic Pay  Allowances  Incentives  Fringe Benefits/ perquisites

Issues in Compensation Management
        

Internal Equity Vs External Equity Fixed Pay Vs Variable Pay Performance Vs Membership Job Vs Individual Pay Elitism Vs Egalitarianism Below Market Vs Above Market Compensation Monetary Vs Non-monetary Rewards Open Vs Secret Pay Centralization Vs Decentralization of pay Decisions

Objectives of Compensation Management
 To

establish a fair and equitable remuneration  To attract competent personnel  To retain the present employees  To improve productivity  To control cost  To improve Industrial relations  To improve public image of the company

Essentials of a sound Wage and Salary Structure
 Internal

equity  External competitiveness  Built-in incentives  Link with productivity  Maintain real wages  increments

Factors affecting the wages
 Demand

for and supply of labor  Ability to pay  Labor unions  Cost of living  Prevailing wage rates  Job requirements  Productivity  State Regulation

Methods of Wage Payment
 Time

wage system  Piece wage system  Balance or Debt Method

Process of Wage Discrimination
 Job

Analysis  Job evaluation  Wage survey  Developing wage structure  Wage administration rules  Employee appraisal

Basic Wage
 Minimum

wage  Fair wage  living wage

State regulation of wages
 The

Minimum Wages Act, 1948  The Payment of Wages Act, 1936  The Equal Remuneration Act, 1976  Section 529-A of the Companies Act, 1956  The Industrial Dispute Act, 1947  Wage Boards (an impartial Chairmen, two
 Pay

independent members,2 or 3 representative members of workers & employer each)

Commissions

Fringe Benefits
Employees are paid several benefits in addition to wages, salary, allowances and bonus. These benefits are known as Fringe Benefits.

Objectives of Fringe Benefits
 To

recruit and retain the best employees  To improve satisfaction  To develop a sense of belongingness and loyalty  To improve motivation and morale.  To improve the public image of the company

Types of Fringe Benefits
 Payment

without work  Health and safety benefits  Retirement Benefits  Subsidizing housing, transport, lunch, dresses  Counseling  Interest free loans  Paid holidays

Wage Incentives
A wage incentive scheme is essentially a managerial device of increasing a worker’s productivity.

Advantages and Limitations of Incentive Plans

Essentials of a sound Incentive Plan
            

Proper climate Worker’s participation Scientific Standards Guaranteed minimum wage Simplicity Equitable Economical Flexibility Prompt payment Adequate incentive Ceiling on earnings Reasonable standards Appraisal system

Types of Wage Incentive Plans

Individual Incentive Plans

Time Based  Halsey or Weir Plan  Rowan Plan  Emerson efficiency plan  Bedeaux Point Plan Output Based  Taylor’s Differential Piece rate Plan  Merrick’s Multiple Piece Rate Plan  Gantt’s Task and Bonus Plan
  

Group Incentive Plans
Priestman Bonus Plan Towne’s gain sharing Scanlon Plan

Halsey or Weir Plan

Total Wages (W) = T x R + 50% (S-T) x R

T= Time taken S= Standard Time R= Rate of Wage P= Bounce(50%)

Rowan Plan

Total Wages (W) = T x R+ T x R x Time saved Standard Time

[

]

Emerson Efficiency Plan

Total Wages (W) = (T x R) + (Percentage of Bonus x T x R)

Bedeaux Point Plan

Total Wages (W) = S x R + 75% of R (S-T)

Quality of Work Life

QWL is the degree of which work in an organization contributes to material and psychological well-being of its members.

Model of QWL
Job Characteristics Significance, challenges

Job Involvement
Job satisfaction Low absenteeism Low turnover

Productivity

Personality Traits Need Patterns Work ethic

Sense of Competence

Measurement of QWL
 Job

involvement  Job Satisfaction  Sense of competence  Job performance  productivity

Dimensions of QWL
       

Adequate and fair compensation Safe and Health working conditions Opportunity to use and develop human capacities Opportunity for career growth Social integration in work force Constitutionalisation in the work organization Work and personal life Social relevance of works.

Principles of QWL
 The

principle of Security  The principle of equity  The principle of individualism  The principle of Democracy

Techniques of improving QWL
 Job

Redesign  Career Development  Autonomous work group  Flexible work schedule  Participative management  Job security  Administrative justice

Sign up to vote on this title
UsefulNot useful