Employee Training

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 Job DesiredPerformance Gap 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

Off – the – Job Technique

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 ModelHuman Resource Development Plans

Individual Development

Plans

Knowledge,Skills &Attitude

Work Culture,Organization Change etc

OrganizationalDevelopment

Plans

Trained & Developed EmployeesHealthy 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 AlignmentIndividualized Techniques

Performance AppraisalMBO

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.

Questions1) 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

Employee

Superior

Self 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.

Absenteeism =

Number of mandays lost due to absence

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 TurnoverLabor Turnover

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

LABOR TURNOVER

ACCESSION/ADDITION

SEPERATION/TERMINATION

VOLUNTARY INVOLUNTARY

MEASUREMENT OF LABOR TURNOVERMEASUREMENT OF LABOR TURNOVER

1.) Accession Method1.) Accession Method

2.) Separation Method2.) Separation Method

3.) Combined Method3.) Combined Method

4.) Replacement Method4.) Replacement Method

Accession MethodAccession Method

Turnover Rate =

No of employees joining the concern during the year

No of employees at the beginning of the Year + no of employees at the end of the year[ ]/2

X 100

Separation MethodSeparation Method

Turnover Rate =

Total Separation during the yearAverage no of employees

X 100

Combined MethodCombined Method

Turnover Rate =( Accession +Separation during the year ) / 2

Average no of employeesX 100

Replacement MethodReplacement Method

Turnover Rate =( Accession - Separation during the year )

Average no of employeesX 100

Causes of Labor TurnoverCauses of Labor Turnover

LABOR TURNOVER

EMPLOYEE ORIENTED EMPLOYER ORIENTED

UNAVOIDABLEAVOIDABLE

EMPLOYEE ORIENTED CAUSES

• INCOMPETENCE

• LAZINESS

• DISLIKE OF WORK

• ROLLING STONEBY NATURE

• DESIRE FOR A JOB NEAR BY HOME

•SICKNESS

•ACCIDENTS

•DEATHS

•RETIREMENTS

UNAVOIDABLEAVOIDABLE

EMPLOYER ORIENTED CAUSES

•POOR MANPOWER PLANNING

•LACK OF PROMOTION POLICY

•LOW PAY

•POOR WORKING CONDITIONS

•UNFAIR SUPERVISION

•STAGNATIONS

•SEASONAL NATUREOF BUSINESS

Effects of Labor TurnoverEffects of Labor Turnover

Cost to EmployerCost to Employer Cost to EmployeesCost 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

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

Pay 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 takenS= Standard TimeR= Rate of WageP= Bounce(50%)

Total Wages (W) =

Rowan Plan

T x R+[ T x R x Time savedStandard Time

]

Emerson Efficiency Plan

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

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

Personality Traits

Need PatternsWork ethic

Sense of Competence

JobInvolvement

Job satisfactionLow absenteeism

Low turnoverProductivity

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