TRAINING

TRAINING IS A PLANNED PROGRAMME DESIGNED TO IMPROVE PERFORMANCE & TO BRING ABOUT MEASURABLE CHANGES IN KRAs OF EMPLOYEES ACC. TO TAYLOR M.H A MEANS TO BRING ABOUT A CONTINOUS IMPROVEMENT IN THE QUALITY OF WORK PERFORMED ,IT WOULD EQUIP THEM WITH NECESSARY KRA TO PERFORM THEIR JOBS

DEVELOPMENT
BROADENING AN INDIVIDUALS KRA FOR FURTHER RESPONSIBILITIES. IT IS A FUTURE ORIENTED TRAINING FOCUSING ON PERSONAL GROWTH OF THE EMPLOYEES. IT FOCUS ON THEORITICAL SKILL& CONCEPTUAL IDEAS.

TRAINING VS DEVELOPMENT
TRAINING REFFERED TO TEACHING SPECIFIC SKILLS AND BEHAVIOUR EX- USE OF COMPUTERS IN BANKING SECTORS EMPLOYEES TRAINED TO OPERATE THE COMPUTERS
BUT DEV IS MORE GENERAL & CONCERNED WITH INDIVIDUAL RATHER THAN ORGANISATION. IT IS FUTURE ORIENTED & FOCUSING ON THE PERSONAL GROWTH OF EMPLOYEES. IT IS MOSTLY THE RESULT OF INTERNAL MOTIVATION.

TRAINING

DEV.
IT IS RELATIVELY MORE GENERAL. IT FOCUSES ON THEORITICAL SKILL & CONCEPTUAL IDEAS. CONTINUOUS. PREPARE FOR FUTURE JOBS. OWN OR GENERALLY SUPPLIED BY MGT DEV. PROGRAMMES, R GENERALLY VOLUNTARY.

IT IS REFERRED TO AS TEACHING SPECIFIC SKILL. IT FOCUS ON TECH. MECHANICAL ORIENTED OPERATIONS.

1 SHOT DEAL.
PREPARE FOR PRESENT JOBS.

IT IS USUALLY IMPOSED .

EVALUATION NEEDED.

EVALUATION NOT NEEDED

TRAINING NEED ASSESSMENT.

IT IS A WELL PLANNED AND DESIGNED ASSESSMENT HELPS TO ASSESSIS TRAINING NEEDED. WHO NEEDS IT. WHICH METHOD TRAINER?

TRAINING NEEDS CAN BE IDENTIFIED BY 3 ANALYSIS

ORGANISATIONAL ANALYSIS TASK ANALSIS PERSON ANALYSIS

ORGANISATIONAL ANALYSIS
ANALYSIS OF OBJECTIVES(LONG&SHORT TERM).
RESOURCE UTILISATION.(HUMAN,FINANCE). ENVIRONMENTAL SCANING(ECONOMIC,POLITICAL,TECH.SOCIO -CULTURAL). ORGANISATIONAL CLIMATE ANALSIS (ATTITUDE).

ANALYSIS OF TASK PERSON

PROCESS OF DETERMINING WHAT THE CONTENT OF TRAINING PROGRAMME SHOULD BE ON THE BASIS OF THE TASK AND DUTIES INVOLVED. QUESTIONNAIRES, INTERVIEWS, REPORTS THESE METHODS ARE USED TO COLLECT INFORMATION. ASSESSMENT OF EMPLOYEE PERFOR MANCE & KNOWLEDGE & SKILL NECESSARY TO REACH THE LEVEL OF PERFORMANCE.

PERSONAL OBSERVATION, PERFORMANCE REVIEWS, SUPERVISORY REPORTS HELP TO COLLECT INFORMATION.

LEARNING PRINCIPLES
MODELLING MOTIVATION REINFORCEMENT FEEDBACK SPACED PRACTICE WHOLE LEARNING ACTIVE PRACTICE (PRACTICE MAKES A MAN PERFECT.)

TYPES OF TRAINING PROGRAMMES

ON THE JOB
1. JIT

2. COACHING 3.MENTORING 4.JOB ROTATION 5.APPRENTISHIP TRAINING 6.COMMITTEE ASSINNMENTS

OFF THE JOB 1.VESTIBULE TRAINING. 2.ROLE PLAYING. 3.LECTURE METHODE 4.CONFERENCE/ DISCUSSION APPROACH. 5. PROGRAMMED INSTRUCTION.

On-The Job(OJT): A new employee is placed on job and taught the necessary skills to perform under an expert trainer. Job Instruction Training (JIT): A Trainer or supervisor gives instructions to the employee how to perform the job. Appropriate for motor skills and repetitive operations. There are FOUR steps here: 1. 2. 3. 4. Preparation Presentation Performance Follow ups.

Coaching: The superior teaches and guides the employees on knowledge and skills of a specifically defined job.

Job Rotation: A trainee is moved from one job to another or one dept to another-more appropriate for developing multiskilling, operational flexibility and broadening the overall perspective.

Simulation Methods: Method which duplicates , as nearly as possible, the actual conditions encountered on a job. Vestibule Training: A system where employees learn their jobs on the equipment they will be using, but training is conducted away from the actual work floor. Used for clerical and semi-skilled grade.

Off-The Job Training: Attempt here is made to impart

knowledge on any subject area covering the aspects like concepts, theories and Basic principles.

Lectures: Trainer provides knowledge to the trainee from prepared notes usually, in such a situation where more participation of audience is not required but info needs to be shared to a large number of audience.
Conferences: Trainer delivers a lecture to the trainee on a particular subject followed by queries and discussions on problem solving skills. Role Play: Defined roles on the basis of oral or written description on a particular situation is made, just like acting out a given role in a stage play.

Case methods: A case being an actual situation or event in organizational problem-where a trainee is asked to analyze the circumstance with an objective to identify the problem and trace out the causes. Management games: A game is designed in the model of a business situation and the employees are divided into groups and evaluated on the basis of depth of decisions in the real life situation. In-Basket Exercise: In a specific time limit, the trainees are said to take decisions here, on a pack of papers and files on a tray containing administrative problems. The decisions are then compared and finally evaluated.

Evaluation Of Training:

It is an attempt made to obtain info and feedback on the effects of training program and to adjuje the value of training in the light of that information. The time and money spent in training underlines the need for evaluation of training. Evaluation of Training aspects: A form consisting of the pertinent queries are prepared to get the feedback or the reactions of the participants to how they found the training program-they underwent. A session by session rating or an overall rating is done on all aspects here. Assessment of Training utility: If the top management is not ready to accept or allow innovations or experimentations by the employee-who have just completed training, it may have no effect whatsoever it may frustrate the employees. Post training behavior, evaluation by the supervisors, peers, subordinates, self evaluation by the participants , quantitative and qualitative improvements are some of the methods to asses the training utility of the employees.

Performance Appraisal:
It is the process of reviewing an individuals performance and progress in a job and assessing his potential for future improvements. Objectives: To identify employees for increment, promotion, transfer and lay off. To determine T & d needs To motivate employees for feedback To establish a basis for research and references for personnel decisions in future. Uses: Create and maintain satisfactory performance level. Contribute employees growth and development Help to understand subordinates Facilitate competition , incentives etc Ensure organizational effectiveness

Process/Steps of Performance appraisal:

Establish performance standards communicate performance expectation to employees measure actual performance Compare actual performance with standards

Discuss the appraisal with the employee

If necessary, initiate corrective action

Methods of Performance appraisal: Traditional Methods

1. straight Ranking method 2.Man-to-man comparison method 3.Grading 4.Graphic Rating scale 5.Forced Choice description method 6.Forced Distribution Method 7..Check List method 8.Free Form essay method 9.Critical incidents 10.Group appraisal method 11. Field review method

Modern Methods:
1. Assessment Centers 2.Appraisals by results or Management by objectives 3.Human asset accounting Method 4.Begavioral anchored rating Scale

Forced Choice Distribution Method:

Attempts to correct raters tendency to give consistently high or low ratings to employees.
Rating elements are several sets of paired phases of adjectives (usually set of FOUR phases-2 positive and 2 negative) The rater is asked to indicate which of the four phases is most and least descriptive of the employees.

Forced Distribution Method:

It is used to eliminate raters bias, so that all employees are not placed at the higher or lower end of the scale. It requires the rater to appraise the employee on the basis of a pre-determined distribution scale. This method assumes-of the total emplyees-10 % must go to the top grade, 20% to the second , 40% to the middle, 20 % of the grade next to the second grade, and 10 % to the lowest grade.

Free essay method:

Here the supervisors makes a free form, open ended appraisal, of an employee in his own words and puts down his impression about his employees. He takes note on all the parameters , he feels to be best required for appraisal of an employee.
Assessment centers: Initially applied to military situations only The purpose if this method is to test the employees in a social situation, using a number of assessors and a variety of procedures. The most imp feature is-job related simulations The simulations involve characteristics that managers feel are important to job success. Evaluations are done by the evaluators as they perform activities commonly found in this higher level jobs.

Human asset Accounting Method: It refers to the activity devoted to

attaching money estimates to the value of a firms internal human Organization and its external customer goodwill. If able, well trained personnel leave a firm, Human orgn is worthless, if they joins, the human assets re increased, If distrust and conflict prevails-the human enterprise is devalued. If team work and high morale prevails, the human Organization is a very valuable asset.

Behavioral anchor rating System: This has 3 steps:

1. 2. 3. 4. 5. Generate critical incidents Develop performance Dimensions Reallocate Incidents Scale of Incidents Develop Final Instrument.

360 Degree performance appraisal: The appraiser may be any person who has thorough knowledge about the job done , by contents to be appraised, standards of content, and who observes the employee by the content of job. The appraisers are supervisors, peers, subordinate employees, users of service and consultants. Performance appraisals by all these parties are called 360 degree appraisal.

Problems of performance appraisal:

The supervisors dual role plays a confusion Too many objectives at a time

The superior feels that the subordinate appraisal is not rewarding

A considerable time gap exists between two appraisals. Skills required for daily administration and employee devp are in conflict Poor communication keeps employee in darkness about service expectation Difference of opinion between superior and subordinate about appraisal Reluctance in transparency with subordinate about their improvement from the superior.

Ethics in performance appraisal:

Appraisal without proper reason may prove fatal
Appraise on the basis of representative information Appraise on the basis of sufficient information Honesty on the assessments of all the facts are mandatory writing something and saying something different would be illegal Not to accept anothers appraisal without knowing the basis on which it is made.

Wage: It is a general payment referring to direct monetary compensation . It is

also used to refer payments to hourly rated productions and service workers.

Salary: Salary refers to weekly or monthly rates paid to clerical , administrative and professional employees. Objectives:
To establish fair and equitable compensation for similar work To attract qualified and competent persons

To keep labor and administrative cost in line with the ability of the organization to pay
To improve motivation and morale of employees and improve union-management relationships To minimize the chances of favoritism while assigning the wage rates.

Principles of wage and Salary distribution:

Wage and salary plans should be sufficiently flexible.

The wage and salary levels should be reasonably in line with that of the prevailing labor market Along with other needs, even the need for self actualization should be filled up by wage and salary Wage policy and programs should be reviewed and revised periodically in conformation with the changing needs.
conference-suggested that min wage should be need based and should ensure the min human needs of the industrial worker. It consists of: 1.Consideration of 3 consumption units in a family 2.Min food requirements upto2700 cal 3.Clothing-min consumption of 18 yards per annum 4.Housing-min. rent charged by the Govt 5.Fuel, lighting and other miscellaneous should constitute 20 % of total min. wage.

Need Based Minimum wage: As per Indian Labor conference in its 95th

Methods of Wage determination: The wage/salary of the employees in the organized sector in India is determined by a variety of factors. These are classified into FOUR categories: 1. 2. 3. 4. Wage enactments Prevalent wage rates Influence of trade unions Corporate philosophy on wages.

Lantham has listed the following factors that have a bearing on the formulation of wage levels: Cost of living Productivity Prevailing wage rate Ability to pay Attraction and Retention of employees

Demand and supply

Government Legislation Economy Technological development Job requirements Management Strategy Employee factors -Performance -Seniority -Experience -Potential -Luck

Methods of wage payment:

TWO basic Methods

1. Payment by time:
Age old method Employee paid on the basis of time worked-per week, per day, per month, rather then output. Wage rate predetermined by negotiation and job evaluation Earnings are predictable and steady No motivation due to no incentive.

2. Payment by results: Payment on the basis of no. of items an employee produces in an orgn rather than the time spent on the job.

This is again done by TWO process:

1. Straight piece work: Employee is paid at a flat price per unit or piece completed or paid for the time allowed to complete the particular task.

2. Differential piece work: Here the wage is paid in relation to output. The rate of wages per unit of production decreases with increase of production, but wage rate per hour still increases, but again not in proportion to the increased output. Balanced Method: It is a combination of time wage and piece wage method. Here the worker is paid a fixed wage based on the time rate with a provision of piece wage method.

Wage Differential::

An Organization offers different jobs-hence differentials in wages for different jobs are inevitable. Wage differentials may be due to the following reasons:

Occupational differences
Inter-firm differentials Regional differentials

Inter-Industry differentials

Personal wage differences

Components of Wage/Compensation: Basic Wage

Dearness allowance

Bonus

Commissions

Mixed Plans

Piece rate wages

Sign on Bonus

Profit sharing Payments

Fringe Benefits
Reimbursements Sickness benefit/pregnancy

Wages also classified under following heads : 1. Statutory Min Wage: It is higher than the bare subsistence or min wage providing form some measures of education, medical requirements and amenities. 2.Bare subsistence wage: Amount sufficient to cover bare physical needs of the worker, irrespective of the industrys capacity to pay.

3.Living Wage: Normal needs of the average employees regarded as a human being living in a civilized society.
4.Fair Wage: Lies between min wage and living wage depending on labor productivity, prevailing wage rates of similar occupation , national income level and place of the industry in the economy of the country.

5. Minimum Wage: It is that wage which should provide not merely

for the subsistence of life but for the preservation of the worker. Defn of wages under various Labor Legislations: 1. Payment of Wages Act 1936: All remunerations expressed in terms of money or capable of being so expressed which would, if the terms of employment, expressed or implied were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment. 2. Minimum Wages Act 1948 : All remuneration capable of being expressed in terms of money, which would, if terms of the contract of employment, express or implied, were fulfilled be payable to a person employed in respect of his employment , or of work done in such employment and includes house rent allowance.

3.Payment of Bonus Act 1965 : All remuneration capable of being expressed in terms of money, which would , if the terms of employment, express or implied, were fulfilled, be payable to an employee in respect of his employment or of work done in such employment and includes dearness allowance.

4. Payment of Gratuity Act 1972 : All emoluments earned by an employee while on duty or on leave in accordance with the terms and conditions of his employment and which are paid or are payable to him in cash and include dearness allowance and does not include any bonus, commission, house rent allowance, overtime wages and any other allowance.
5.Employees State Insurance Act, 1948 : All remunerations paid or payable in cash to a woman, if the terms of the contract of employment, express or implied, were fulfilled. 6.Employees PF and Miscellaneous Provisions Act, 1952 : All emoluments earned by an employee while on duty or on leave with wages according to the terms of the contract of employment and which are paid or payable oin cash to him.

7. Workmens Compensation Act,1923 : Any privilege or benefit which is capable of being estimated in money, other than a travelling allowance or the value of any travelling concession or a contribution paid by the employer of a workman towards any pension or PF or a sum paid to a workman to cover any special expenses entailed to him my the nature of his employment.

Industrial Dispute Act, 1947 : All remunerations capable of being expressed in terms of money, which would, if the terms of employment, express or implied, were fulfilled, be payable to a workman in respect of his employment, or of work done in such an employment.

Job evaluation: It is the rating of job in an Organization. It is a process of

determining the relative value of every job in an Organization to determine what the fair basic wage for such a job should be. Objectives: Determines the relative worth of each job in a plant. Determine equitable wage deferential for each job. Eliminate wage inequalities Ensuring like wages for like jobs Basics for incentives and bonus plans References for individual grievances for wage rates.

Provides information for work organizations, employees selection, placement, training etc
Benchmark for career planning of individual Organization.

Procedure for Job evaluation: Preliminary Stage Planning stage Analysis stage Internal Evaluation stage External evaluation stage Design Stage Grading Stage Developing and Maintaining Stage

Advantages of Job evaluation:

Developing an equitable and consistent wage and salary structure Minimizing conflict between union and management by eliminating wage differentials Simplifies wage administration by establishing uniformity in wage rates Provides a logical basis for wage negotiations and collective bargaining. Provides the realistic basis for wage determination Information's generated by job evaluation are used for improvements in selection, transfer and promotion.

Disadvantages of JE: Susceptible because of human error and subjective judgment. Variation exists between wages fixed through JE and Market forces Doubts created in workers mind during first implementation. Time consuming process and need of specialized technical persons and costly process Very frequent evaluation of job is essential As it leads to changes in the salary and wage structures, financial burden is created in the organization.

Methods of Job Evaluation:

1. Non-Quantitative Methods :
(i) Ranking or Job Comparison Method (ii) Grading or Job Classification method 2. Quantitative Methods : (i) Point Rating (ii) factor Comparison method Ranking Method: Each job as a whole is compared with the other and this comparison would go on until all the jobs have been evaluated or ranked. Grading method : Here the job grades or classes are established by an authorized body or committee appointed for this purpose. Job grades are determined on the basis of information's derived from job analysis.

Point Rating : Here the jobs are broken down into various identifiable factors such as skills, efforts, training, knowledge, responsibility etc. and points thereafter attached to each of the factors identified. Factors comparison Method: It is a combination of both ranking and point method in the sense that it rates jobs by comparing them and makes analysis by breaking jobs into compensable factors. Usually, this system is applied for white collar professionals and managerial positions. Essentials of A Job Evaluation Program: 1. Before implementing the JE program, following issues need to be determined: employees to be covered, internal or external consultation of the employees and existence of a suitable atmosphere. 2. An accurate and comprehensive job analysis, job description and job specification should be done.

3. All relevant factors both internal and external should be taken into account before arriving at final shape. 4. The supervisor should have the complete and concrete knowledge of the program 5. Solid efforts should be made to provide max. transparency in preparation and interpretation of the program 6. The program must have the full approval and support from the top management. 7. Job evaluation should rate the job and not the job holder. 8. Factors to be considered for job evaluation should be clearly defined.

9. The scheme should be administered by industrial relation staff.

10. Changes if any, in the evaluation method should be carried out before the program is installed.

Industrial relation concept: IR is concerned with the systems and procedure used by the unions and employers to determine the reward for effort and other conditions of employment to protect interest of the employed and their employers and to regulate the wages in which employers treat their employees. Scopes of IR: Labor Relations Employee-employer relations The role of various practices in employer-employee relations Conflict handling situations

Promotions and development of healthy labor

Maintenance of industrial peace. Development and growth of industrial democracy

Objectives of IR:

Establish and foster sound relationship between worker and management.

Avoid industrial conflicts and strikes. Keeping disputes away by enhancing economic status of workers Opportunity for workers participation in management. Raise productivity by curving turnover and absenteeism Avoid unnecessary Government interference Improvement of workers economic conditions

State control over industrial undertakings

Socialization and rationalization of industries. Vesting of proprietary interest of the workers.

Importance of IR:

Foster Industrial peace

Promote Industrial democracy Benefit to workers Benefit to management Improve productivity

Approaches to IR: Like other behavioral subjects, both the scenario

of IR and other factors affecting it are perceived differently by different behavioral practitioners and theorists. Some perceive IR in terms of conflict resolving, others view it in terms of mutual cooperation , yet others understand it in terms of competing interest of various groups and so on. The popular approaches of IR are:

1. Unitary Approach: This approach is base on the assumption that every one-be it an employee or an employer or Governmentbenefits, when the emphasis is on a common interest. Here the IR is founded on mutual cooperation, team work, shared goals and so on. Limitations: (a) It is used as a tool for keeping the employees at bay from unionism. (b) It is seen as exploitative and manipulative. 2. Pluralistic Approach: This was prevalent in mid 60s and early 70s.Later developed by A. Fox. This approach perceives that an organization is a coalition of competing interest groups mediated by the management. At times when the management is inefficient in playing the mediating role, the employees unite in the form of Trade Unions to protect their needs and claims. The main involvement of trade unions to protect the interest groups is the focus of this approach.

Limitations: The basic assumptions that the management and the employees do not come at the same platform , as per this approach do not hold good for the society. This is because a society may be free, but proper distribution is not necessarily equal among the competing forces. Radical Approach: This approach mainly followed by the Marxists emphasizes on viewing conflict as a product of the capitalistic society, based on classes. According to Marxists, conflict arises because of division within society in terms of havs (Capitalists) and have-nots( labor) Hence Labor-mgmt conflict as per Marxists cannot be put a solution with collective bargaining, WPM and cooperation. For this, coercive power such as strikes, gherao etc are initiated in this approach . This type of IR approach is generally seen mainly in communist countries like Russia.

IR Systems: It is a complex of inter-relations among workers, managers and government. Based on this , there are THREE major parties: 1. Employees: Employees with their various characteristics like commitment to work, educational and social background , attitude to wards the management ,affect, and are also mostly affected by the IR system. They work taking the help of the Trade Union to attain the following objectives: 1. 2. 3. 4. Redress the bargaining advantage on a one-one basis. Secure stable terms and conditions of employment Improved work status of the workers Increase democratic value of decision making at various levels.

2. Employer: It is the 2nd party which is represented by the management. According to Cole, the management has to see the IR as per the following employee-employer relationships: (i) Creating and sustaining employee motivation (ii) Ensuring employee commitments

(iii) Achieving higher efficiency levels (iv) Negotiating terms and conditions of employment with employer (v) Starting decision making with the employees. 3. Government: With the changes in industrial environment and management perspective, the role of Government has been always changing. Till 19th century, the Govt have adopted a policy of laissers faire type of administration, but towards the end of the 19th century, this attitude has been changed. In due course, of realization, Govt intervention has become a reality. Currently, the govt interventions has become widespread in the HR matters.

Causes of poor IR:

Nature of work
Dissatisfactory compensation and work conditions Dysfunctional Trade union Non-conducive organizational Climate. Developing sound IR: Developing trust between Labor and Management Existence of sound and democratic trade union

Maintenance of Industrial peace

Continuous feedback and monitoring Professional approach

International HRM: Today the business prospective has to face competition a the global level. The survival and success of an international business depends on the competitive advantage , it had acquired. When a company makes inroads into different markets, different cross cultural societies and business environment, it had to contend with the most crucial aspect of staffing these operations. Perspective of International HRM: 1. 2. 3. 4. 5. 6. 7. Cultural factors: Power distance Uncertainty avoidance Individualism Masculinity Economic conditions Labor cost factors