Human resource management complete note

HRM
• The human resources of an organization
consist of all people who perform its activities.
Human resource management (HRM)
is concerned with the personnel policies and
managerial practices and systems that
influence the workforce. In broader terms, all
decisions that affect the workforce of the
organization concern the HRM function.
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,
• According to Invancevich and Glueck, “HRM is
concerned with the most effective use of people
to achieve organizational and individual goals”.
• Human Resource Management outlines the
importance of HRM and its different functions in
an organization. Itexamines the various HR
processes that are concerned with attracting,
managing, motivating and developing employees
for the benefit of the organization.
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GOAL of HRM
• To meet the needs of the business and
management (rather than just serve the
interests of employees);
• - To link human resource strategies / policies
to the business goals and objectives;
• - To find ways for human resources to "add
value" to a business;
• - To help a business gain the commitment of
employees to its values, goals and objectives
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Nature of HRM
• Broader function : Human Resource Management is a
comprehensive function because it is about managing
people in the organization. It covers all types of people
in the organization from workers till the top level
management.
• People oriented : Human resource is the core of all the
processes of human resource management. So HRM is
the process which brings people and organizations
together so that their goals can be achieved.
• Action oriented : Human resource management
believes in taking actions in order to achieve individual
and organizational goals rather than just keeping
records and procedures.
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Nature of HRM
• Development oriented: Development of employees is
an essential function of human resource management in
order to get maximum satisfaction from their work so
that they give their best to the organization.
• Integrating Mechanism : HRM tries to build
and maintain cordial relations between people working
at various levels in the organization. Future oriented
: HRM is very important activity which helps
organization to achieve its objectives in future by
providing well motivated and competent employees.
• Universal function
• HRM can be applied in business as well as other
organizations organisations such as schools, colleges,
hospital, religious organisations, etc.
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As a Process : HRM is a process of four
functions & FEATURES
Acquisition of human resources : This function includes
Human Resource Planning, Recruitment, Selection,
Placement and Induction of staff.
• Development of human resources : This function includes
Training and Development and Career development. The
knowledge, skills, attitudes and social behavious of the
staff are developed.
• Motivation of human resources : This function includes
giving recognition and rewards to the staff. It also includes
Performance Appraisal and handling the problems of staff
•
Maintenance of human resources : This function includes
providing the best working conditions for employees. It
also looks after the health and safety of the staff.
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Scope of the HRM
• The scope of HRM is very immense. HRM plays a vital
role of a worker from the time he enters into any
organization till he leaves. HRM activities include –
• 1. Procurement : It the placement of right kind of
personal to the right post. It includes, determination of
manpower requirements. Job analysis, Nature and
scope of requirement, employee selection and
placement of employment.
• 2. Training and Development : Training and
Development is a must in any organization. It prepares
the worker to the actual situations in the orgnisation.
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Scope of the HRM
• 3. Job Analysis and Job Description : Job analysis and job
description involves the studies of job requirements of the
enterprise and assignment of well defined functions to jobs
so that qualified employees may be hired. It also forms the
basis of wage determination.
• 4.Remuneration : Providing proper remuneration to the
employees for the job done through job analysis and job
description. It includes determining wage rates, incentives,
wage payment, REWARDS and benefits and performance
appraisal.
• 5. Welfare and Industrial Relations : It includes health and
safety program, sanitary facilities, recreational facilities etc.
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ROLE OF HRM
• The Human Resource Department deals with management
of people within the organisation. There are a number of
responsibilities that come with this title.
• First of all, the Department is responsible for hiring
members of staff; this will involve attracting employees,
keeping them in their positions and ensuring that
they perform to expectation.
• Besides, the Human Resource Department also clarifies and
sets day to day goals for the organisation.
• It is responsible for organisation of people in the entire
Company and plans for future ventures and objectives
involving people in the Company.
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roles:
• Under the HR department’s remit are the following
roles:
• The process of recruiting suitable candidates for the
organisation
• Identifying and meeting the training needs of existing
staff
• Ensuring employee welfare and employee relations are
positive
• Ensure the working environment is safe for employees
• Raising awareness of current workplace legislation
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The Human
Resources Department also covers five
key roles.
• Executive role – in this role the HR department are viewed as the
specialists in the areas that encompass Human Resources or people
management.
• Audit role – in this capacity the HR department will check other
departments and the organisation as a whole to ensure all HR
policies such as Health & Safety, Training, Staff Appraisal etc are
being carried out in accordance with the company’s HR policy.
• Facilitator role – in this role, the HR department help or facilitate
other departments to achieve the goals or standards as laid out in
the HR policies of the organisation. This will involve training being
delivered for issues that arise in the areas relating to people
management.
• Consultancy role – the HR department will advise managers on how
to tackle specific managing people issues professionally.
• Service role – in this capacity the HR department is an information
provider to raise awareness and inform departments and functional
areas on changes in policy
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Function of HRM
• The main function of human resource management is
classified into two types: (a) Managerial Function; (b)
Operative Function.
• Operative Function
• Procurement – It involves attracting and employing individuals
with suitable knowledge, skills,
• experience, and aptitude necessary to perform various jobs.
• • Development – It aims to train and develop employees to
improve and update their knowledge and skills in order to help
them perform better.
• • Compensation – It involves rewarding employees monetarily
and through fringe benefits for their contributions to the
organization.
• • Integration – It deals with employees as a social group; it
contributes to the organization and enhances group
interaction and communication.
• • Maintenance – It deals with maintaining employee safety and
creating a sense of security among the employees.
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Recruitment and selection
•
Recruitment and selection is the process of identifying the need
for a job, defining the requirements of the position and the job
holder, advertising the position and choosing the most
appropriate person for the job. Retention means ensuring that
once the best person has been recruited, they stay with the
business and are not “poached” by rival companies.
• Undertaking this process is one of the main objectives of
management. Indeed, the success of any business depends to a
large extent on the quality of its staff. Recruiting employees
with the correct skills can add value to a business and recruiting
workers at a wage or salary that the business can afford, will
reduce costs.
• Employees should therefore be carefully selected, managed
and retained, just like any other resource
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Employees should therefore be
carefully selected, managed and
retained, just like any other resource
• .
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Sources Of Recruitment
• Every organisation has the option of choosing the
candidates for its recruitment processes from two
kinds of sources: internal and external sources.
The sources within the organisation itself (like
transfer of employees from one department to
other, promotions) to fill a position are known as
the internal sources of recruitment. Recruitment
candidates from all the other sources (like
outsourcing agencies etc.) are known as the
external sources of recruitment.
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Recruitment , selection and induction
• Recruitment is the process of attracting the most
suitable people for the position, selection is the process
of choosing the best person for the position, and
induction is introducing the person to the position
• This module describes a series of well-tested steps to
help you identify the right person, to ensure he or she
will fit well with your farm business, and to meet the
various legal obligations of an employer.
• If recruitment is done well, the business benefits from
happier and more productive people, reduced staff
turnover, good working relationships and ultimately a
more profitable farm.
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Difference Between Recruitment And
Selection
• Both recruitment and selection are the two phases of the employment process. The
differences between the two are:
1. Recruitment is the process of searching the candidates for employment and stimulating
them to apply for jobs in the organisation WHEREAS selection involves the series of steps by
which the candidates are screened for choosing the most suitable persons for vacant posts.
2. The basic purpose of recruitments is to create a talent pool of candidates to enable the
selection of best candidates for the organisation, by attracting more and more employees to
apply in the organisation WHEREAS the basic purpose of selection process is to choose the
right candidate to fill the various positions in the organization.
3. Recruitment is a positive process i.e. encouraging more and more employees to apply
WHEREAS selection is a negative process as it involves rejection of the unsuitable
candidates.
4. Recruitment is concerned with tapping the sources of human resources WHEREAS
selection is concerned with selecting the most suitable candidate through various interviews
and tests.
5. There is no contract of recruitment established in recruitment WHEREAS selection results
in a contract of service between the employer and the selected employee.
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objectives of Recruitment and
selection
• Recruitment and selection objectives include a
variety of components related to finding,
hiring and retaining qualified employees. Clear
definitions of the job qualifications allow
easier identification of potential candidates.
Recruitment consists of attracting capable
individuals using methods such as outsourcing
and the internet. Selection objectives consist
of evaluation techniques such as interviews,
background checks and competence tests.
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the Employee selection Process
• Preliminary Interviews- It is used to eliminate those
candidates who do not meet the minimum eligiblity
criteria laid down by the organization. The skills,
academic and family background, competencies and
interests of the candidate are examined during
preliminary interview
• .
• Application blanks- The candidates who clear the
preliminary interview are required to fill application
blank. It contains data record of the candidates such as
details about age, qualifications, reason for leaving
previous job, experience, etc
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the Employee selection Process
• Employment Interviews- It is a one to one interaction
between the interviewer and the potential candidate.
It is used to find whether the candidate is best suited
for the required job or not.
• Medical examination- Medical tests are conducted to
ensure physical fitness of the potential employee. It
will decrease chances of employee absenteeism.
• Appointment Letter- A reference check is made about
the candidate selected and then finally he is appointed
by giving a formal appointment letter.
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Manpower planning
• Manpower planning is the process of reviewing an
organization’s employee, or manpower, needs and then
selecting the best people for certain jobs. The end goal
of successful manpower planning is a smoothly running
operation, and the long-term result of manpower
planning is a company able to achieve its goals,
because its employees fill the right places within the
organization. Manpower planning typically falls under
the human resources department and it's not
something that occurs quickly. Instead, it is a process
thatrequires careful analysis and consideration to
achieve the desired outcome.
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Importance of Manpower Planning
Key to managerial functions- The four managerial functions,
i.e., planning, organizing, directing and controlling are based
upon the manpower. Human resources help in the
implementation of all these managerial activities. Therefore,
staffing becomes a key to all managerial functions.
• Efficient utilization- Efficient management of personnels
becomes an important function in the industrialization
world of today. Seting of large scale enterprises require
management of large scale manpower. It can be effectively
done through staffing function.
• Motivation- Staffing function not only includes putting right
men on right job, but it also comprises of motivational
programmes, i.e., incentive plans to be framed for further
participation and employment of employees in a concern.
Therefore, all types of incentive plans becomes an integral
part of staffing function. NIAZ SAHIL

Steps in Manpower Planning
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1 Analysing the current manpower inventory- Before a
manager makes forecast of future manpower, the current
manpower status has to be analysed. For this the following
things have to be noted-
Type of organization
Number of departments
Number and quantity of such departments
Employees in these work units
Once these factors are registered by a manager, he goes for the
future forecasting
2 Making future manpower forecasts- Once the factors
affecting the future manpower forecasts are known, planning
can be done for the future manpower requirements in several
work units

• Developing employment programmes- Once the
current inventory is compared with future forecasts,
the employment programmes can be framed and
developed accordingly, which will include recruitment,
selection procedures and placement plans.
• Design training programmes- These will be based
upon extent of diversification, expansion plans,
development programmes,etc. Training programmes
depend upon the extent of improvement in technology
and advancement to take place. It is also done to
improve upon the skills, capabilities, knowledge of the
workers.
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Induction
• After a new employee is hired into an
organization, it is necessary he or she
be familiar to organization's philosophies, goals
and objectives, policies, procedures, rules and
regulations and practices. This orientation is
called employee induction
• Induction can be defined as The HRM function
that systematically and formally introduces new
employees to the organization, the jobs, the
work groups to which they will belong and the
work environment where they will work.NIAZ SAHIL

Induction is designed to achieve
following objectives:-
• Help the new employee overcome shyness and
nervousness in meeting new people in a new environment.
• Give the new employee the necessary information such as
the location of a cafe and other locations.
• Help the new employee build confidence in the
organization.
• Help in reducing labor turnover and absenteeism.
• Reduce confusion and develops healthy relations in the
organization.
• Ensure that the new comer does not form false impressions
and develop a negative attitude towards the organization.
• Develop among the new comers a sense of belonging and
loyalty to the organization
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An induction programme consists
primarily of three steps:
• General orientation by the staff: It gives necessary general
information about the history and the operations of the firm.
The purpose is to help an employee to build up some pride and
interest in the organization.
• Specific orientation by the job supervisor: The employee is
shown the department and his place of work; the location of
facilities and is told about the organization’s specific practices
and customs. The purpose is to enable the employee to adjust
with his work and environment.
• Follow-up orientation by either the personnel department or
the supervisor: This is conducted within one week to six months
of the initial induction and by a foreman or a specialist. The
purpose is to find out whether the employee is reasonably well
satisfied with him. Through personal talks, guidance and
counselling efforts are made to remove the difficulties
experienced by the newcomeNIAZ SAHIL

Performance appraisal
• "Performance appraisal is the systematic description of
an employee's job relevant strengths and weaknesses.“
•
In a Performance appraisal, the employee's merits such
as initiative, regularity, loyalty, personality, etc., are
compared with others. Then each employee is rated or
ranked. That is, he is given a particular rank such as
First Rank, Second Rank, etc. So if an employee has the
best attendance then he is given First Rank in
attendance and so on.
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Terms in Performance Appraisal
Terms involved in performance appraisal are:-
• Rater : The person who evaluates the
employees is called the Rater or Appraiser.
• Ratee : The employee who is rated is called
the Ratee.
• Rating : The process of performance appraisal
is called Rating
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Objectives Of Performance appraisal:
• To review the performance of the employees over a given period
of time.
• To judge the gap between the actual and the desired
performance.
• To help the management in exercising organizational control.
• Helps to strengthen the relationship and communication between
superior – subordinates and management – employees.
• To diagnose the strengths and weaknesses of the individuals so as
to identify the training and development needs of the future.
• To provide feedback to the employees regarding their past
performance.
• Provide information to assist in the other personal decisions in the
organization.
• Provide clarity of the expectations and responsibilities of the
functions to be performed by the employees.
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Limitations of Performance Appraisal
• 1. Halo Effect :The rater may base the full appraisal on
the basis or one positive quality which was found out
earlier
• 2. Problem of Leniency or Strictness :Many raters are
too lenient (not strict) in their ratings. High scores may
be given to all employees, even if they have no merit.
Also a reverse situation may take place, where all
employees are rated very strictly and very low scores
are given.
• 3. Central Tendency
•
Sometimes a rater gives only middle range scores to all
individuals. Extremely high or low scores are avoided.
This is called Central Tendency.
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Limitations of Performance Appraisal
• 8. Horn Effect: Sometimes the raters may evaluate on
the basis of one negative quality. This results in overall
lower rating of the particular employee. For e.g. "He
does not shave regularly. Therefore, he must be lazy at
work."
• 10. Latest Behavior Effect: The rating is also influenced
by the most recent behaviour. The rater may ignore an
average behaviour during the full appraisal period
• 7. Evaluate performance not person” The rater should
evaluate the performance, i.e. output, new ideas,
extraordinary efforts, etc. and not the person. In
reality, the person is evaluated and not his
performance. It should be noted that failure is an event
and a not a person.
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Performance Appraisal Methods :
• 1. Critical incident method
The critical incidents for performance appraisal is a method in which
the manager writes down positive and negative performance
behavior of employees throughout the performance period
2. Weighted checklist
This method describe a performance appraisal method where rater
familiar with the jobs being evaluated prepared a large list of
descriptive statements about effective and ineffective behavior on
jobs
3. Paired comparison analysis
Paired comparison analysis is a good way of weighing up the relative
importance of options. A range of plausible options is listed. Each
option is compared against each of the other options. The results are
tallied and the option with the highest score is the preferred option.
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• 4. Graphic rating scales
The Rating Scale is a form on which the manager simply checks off the
employee’s level of performance. This is the oldest and most widely
method used for performance appraisal.
5. Essay Evaluation
This method asked managers / supervisors to describe strengths and
weaknesses of an employee’s behavior. Essay evaluation is a non-
quantitative technique. This method usually use with the graphic rating
scale method.
6. Behaviorally anchored rating scales
This method used to describe a performance rating that focused on
specific behaviors or sets as indicators of effective or ineffective
performance. It is a combination of the rating scale and critical incident
techniques of employee performance evaluation.
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• 7. Performance ranking method
Ranking is a performance appraisal method that is used to evaluate
employee performance from best to worst.
Manager will compare an employee to another employee, rather than
comparing each one to a standard measurement.
8. Management By Objectives (MBO)
MBO is a process in which managers / employees set objectives for the
employee, periodically evaluate the performance, and reward according to
the result.
MBO focuses attention on what must be accomplished (goals) rather than
how it is to be accomplished (methods)
9. 360 degree performance appraisal
360 Degree Feedback is a system or process in which employees receive
confidential, anonymous feedback from the people who work around them.
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• 10.Forced ranking (forced distribution)
Forced ranking is a method of performance appraisal to rank
employee but in order of forced distribution.
For example, the distribution requested with 10 or 20
percent in the top category, 70 or 80 percent in the middle,
and 10 percent in the bottom.
11. Behavioral Observation Scales
Behavioral Observation Scales is frequency rating of critical
incidents that worker has performed.
Most of the companies or organizations' follow 360 degree
performance appraisal.
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Ranking
• Employee ranking is an attempt to evaluate employees
relative to each other, by using some criteria to identify
the better performers versus the less better
performance. The result, at least in theory, is a list of
employees in some sort of ranked order.
• Rating
- This involves rating an employee on a scale
which ranges from ‘poor’ to ‘excellent’ performance. The
employee is assessed on this scale based on their
performance or traits which are considered relevant to
the job.
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360 Degree Appraisal
• An appraisal made by top management, immediate
superior, peers, subordinates, self and customers is
called 360 Degree Appraisal. Here, the performance of the
employee or manager is evaluated by six parties, including
himself. So, he gets a feedback of his performance from
everyone around him. This method is very reliable because
evaluation is done by many different parties. These parties
are in the best position to evaluate the employee or
manager because they are continuously interacting and
working with him. This method is mostly used to evaluate
the performance of the employees. However, it is also used
to evaluate other qualities such as talents, behaviour,
values, ethical standards, tempers, loyalty, etc
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• 360 degree appraisal was first developed by
General Electric (GE), USA in 1992. Today it is used
by all major organizations.
• In India, it is used
• by Crompton Greaves,
Wipro,
Infosys,
Reliance
Industries, etc
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• 1. Top Management :The top management normally
evaluates the middle level managers. However, in a small
organisation, they also evaluate the performance of the
lower level managers and senior employees.
•
2. Immediate Superior :The immediate superior is in a very
good position to evaluate the performance of his
subordinates. This is because they have direct and accurate
information about the work performance of their
subordinates.
•
3. Peers / Co-workers : Peer or colleagues also evaluate
each other's performance. They work continuously with
each other, and they know each other's performance. Peer
evaluation is used mostly in cases where team work is
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• 4. Subordinates : The Subordinates can also evaluate the
performance of his superior. Now-a-days students are asked
to evaluate the performance of their teachers.
•
5. Self Appraisal : In the self-appraisal, a person evaluates
his own performance. He should be honest while evaluating
himself. This results in self-development.
•
6. Customers : Customers can also evaluate the performance
of the employees who interacts with them. This evaluation is
best because it is objective. It is also given a lot of
importance because the customer is the most important
person for the business. Organisations use customer
appraisals to improve the strengths and remove the
weaknesses of their employees.
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• In addition to these six parties, appraisal can also be
done by an Appraisal Panel. This panel consists of 5 to
6 different types of members. Outside Consultants are
also used for conducting appraisals. In some cases,
Personnel Department also conducts an appraisal of
employees and managers.
• 360 Degree Appraisal is becoming more popular
because many parties are available for evaluation.
Therefore, there is no "bias" or "halo effect". Hence
the evaluation will become more realistic.
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Remuneration
• Reward for employment in
the form of pay, salary, or wage,
including allowances, benefits (such
as company car, medical plan, pension plan),
bonuses, cash incentives, and monetary value of
the noncash incentives.
• Remuneration is the compensation that one
receives in exchange for the work or services
performed
• Remuneration occupies an important place in the
life of an employee
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Remuneration program objectives —
for the organisation
• Attract and keep the desired quality and mix of employees
• Ensue equitable treatment
• Motivate employees to improve their performance
continually and to strive to achieve the organisation’s
strategic business objectives
• Reinforce the organisation’s key values and desired
organizational culture
• Drive and reinforce desired employee behaviour
• Ensure remuneration is maintained at the desired
competitive level
• Control remuneration costs
• Ensure optimum value for each remuneration dollar spent
• Comply with company requirements
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Employee Remuneration Method
1: Time Rate Method
Under time rate system, remuneration is directly linked
with the time spent or devoted by an employee on the
job. The employees are paid a fixed pre-decided amount
hourly, daily, weekly or monthly irrespective of their
output. It is a very simple method of remuneration. It
leads to minimum wastage of resources and lesser
chances of accidents. Time Rate method leads to quality
output and this method is very beneficial to new
employees as they can learn their work without any
reduction in their salaries. This method encourages
employees unity as employees of a particular
group/cadre get equal salaries.
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Employee Remuneration Method
2: Piece Rate Method: It is a method of compensation in
which remuneration is paid on the basis of units or pieces
produced by an employee. In this system emphasis is
more on quantity output rather than quality output.
Under this system the determination of employee cost
per unit is not difficult because salaries differ with
output. There is less supervision required under this
method and hence the per unit cost of production is low.
This system improves the morale of the employees as the
salaries are directly related with their work efforts. There
is greater work-efficiency in this method.
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And also There are various others ways
of rewarding employees such as:
• 1. Basic pay for standard hours
• 2. Additional hours rewards.
• 3. Commission
• 4. Bonuses are another form of incentive to meet
particular targets.
• 5. Performance related pay
• 6. Profits related pay
• 7. Payment by results
• 8. Piece rate reward systems relate to paying
employees according to their level of output.
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Components of remuneration
• 1 Wages and Salary
• :-Wages refer the hourly rates of pay, salary refers to
the monthly rate pay, wages and salaries are subject to
annual increments. They differ temp. To emp. Depend
upon the nature of job , seniority and merits
• 2 : Incentives :-
• also called ‘payment by result’- paid in addition to
wages and salaries. depend upon productivity, sale
profit- there are
• A. individual incentives scheme
• B. group incentives scheme
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Components of remuneration
• 3: Fringe benefits
• :- These include such employee benefits as
provident fund, medical care, hospitalization,
accident relief, health insurance, canteen
uniform and like
• 4: Perquisites :
• - These are allowed to executives and include
company car, club membership, paid holidays,
furnished house and like
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WHAT IS VARIABLE PAY?
• Variable pay, also known as performance pay, is
used to recognise and
reward employee contribution above and beyond
their normal job requirements, towards company
productivity, profitability, quality and the like.
Sreeradha D Basu explains:
• Variable pay is often based on two main factors:
your own performance and your company's
performance.
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Remuneration
InternalExternal
Labor Market
Cost of Living
Labor Unions
Government Legislations
Society
Economy
Business Strategy
Job Evaluation and
Performance Appraisal
The Employee
Remuneration – Influencing Factors
www.a2zmba.com
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Challenges of remuneration
• Skill Based Pay
• Pay Reviews
• Pay Secrecy
• Comparable worth
• International Pay
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4th unit
training and development
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training and development
• Training is the process of planned programs and
procedures undertaken for the improvement of
employee's performance in terms of his attitude,
skills, knowledge and behavior. This training
programs can significantly improve the overall
performance of organization.
Main Aim
• Training Aims to improve employees current work
skills and behavior
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Training
• Training is normally viewed as a short process.
It is applied to technical staff, lower, middle,
senior level management. When applied to
lower and middle management staff it is
called as training and for senior level it is
called managerial development
program/executive development
program/development program.
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The Objectives of training and
development
The principal objective of training and development division is to make sure the
availability of a skilled and willing workforce to an organization. In addition to that,
there are other objectives as follow :
Individual Objectives – help employees in achieving their personal goals, which in
turn, enhances the individual contribution to an organization.
Organizational Objectives – assist the organization with its primary objective by
bringing individual effectiveness.
Functional Objectives – maintain the department’s contribution at a level suitable to
the organization’s needs.
Societal Objectives – ensure that an organization is ethically and socially responsible
to the needs and challenges of the society.
TO INCREASE PRODUCTIVITY
An instructor can help employees increase their level of performance on their
assignment. Increase in human performance leads to increase in the operational
productivity and also the increase in the profit of the company.
TO IMPROVE QUALITY
Better-trained workers are less likely to make operational mistakes. It can be in
relationship to the company or in reference to the intangible organizational
employment atmosphere. NIAZ SAHIL

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Training:
1.It's a short term process.
2.Refers to instruction in
technical and mechanical
problems
3.Targeted in most cases for
non-managerial personnel
4.Specific job related purpose
5 Development is a never
ending process
Development:
1.It is a long term educational
process.
2.Refers to philosophical and
theoretical educational concepts
3.Managerial personnel
4.General knowledge purpose
5 Training methods are limited
6 Training is one of the tools of
development.
difference between training and development
Training is a process of learning a sequence of
programmed behavior. It improves the employee's
performance on the current job and prepares
them for an intended job.
Development not only improves job performance
but also brings about the growth of the
personality. Individuals not only mature regarding
their potential capacities but also become better
individuals.

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PURPOSE OF TRAINING
1.To improve Productivity: Training leads to increased
operational productivity and increased company profit.
2.To improve Quality: Better trained workers are less
likely to make operational mistakes.
3.To improve Organizational Climate: Training leads to
improved production and product quality which
enhances financial incentives.
4.To increase Health and Safety: Proper training
prevents industrial accidents.
5.Personal Growth: Training gives employees a wider
awareness, an enlarged skill base and that leads to
enhanced personal growth.
• PURPOSE OF DEVELOPMENT:
Management development
attempts to improve
managerial performance by
imparting
1.Knowledge
2.Changing attitudes
3.Increasing skills
PURPOSE OF TRAINING and DEVELOPMENT
The major objective of development is managerial
effectiveness through a planned and a deliberate
process of learning. This provides for a planned
growth of managers to meet the future
organizational needs.

Types Of Training Programs
• Basic literacy training is training for things like
reading, writing and problem-solving skills.
• Interpersonal skills training is training on how
to maintain positive relationships,
communicate better, resolve conflicts and
build trust.
• Technology Training
• Problem-solving training
• Diversity Or Sensitivity Training…
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Training Process Or Steps Involved For
Conducting Training
• A training is not a one sort affair; rather it is a step-by-
step process that will completed only after successful
completion of given sequential activities.
Training Process
• 1. Identifying Training Needs
• 2. Establish Specific Objectives
• 3. Select Appropriate Methods
• 4. Implement Programs
• 5. Evaluate Program
• 6. Feedback
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1. Identifying Training Needs
Training need is a difference between standard performance and
actual performance.Hence, it tries to bridge the gap between
standard performance and actual performance. The gap clearly
underlines the need for training of employees. Hence, under this
phase, the gap is identified in order to assess the training needs.
2. Establish Specific Objectives
After the identification of training needs, the must crucial task is
to determine the objectives of training. Hence, the primary
purpose of training should focus to bridge the gap between
standard performance and actual performance. This can be done
through setting training objectives. Thus, basic objective of
training is to bring proper match between man and the job.

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3. Select Appropriate Methods
Training methods are desired means of attaining training objectives. After the
determination of training needs and specification of objectives, an appropriate
training method is to be identified and selected to achieve the stated objectives.
There are number of training methods available but their suitability is judged as
per the need of organizational training needs.
4. Implement Programs
After the selection of an appropriate method, the actual functioning takes place.
Under this step, the prepared plans and programs are implemented to get the
desired output. Under it, employees are trained to develop for better
performance of organizational activities.
5. Evaluate Program
It consists of an evaluation of various aspects of training in order to know whether
the training program was effective. In other words, it refers to the training utility
in terms of effect of training on employes' performance.
6. Feedback
Finally, a feedback mechanism is created in order to identify the weak areas in the
training program and improve the same in future. For this purpose, information
relating to class room, food, lodging etc. are obtained from participants. The
obtained information, then, tabulated, evaluated, and analyzed in order to mark
weak areas of training programs and for future improvements.

Training Methods
• A large variety of methods of training are used in
business. Even within one organization different
methods are used for training different people. All
the methods are divided into two classifications
for:
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A. On-the-job Training Methods:
1. Coaching
2. Mentoring
3. Job Rotation
4. Job Instruction Technology
5. Apprenticeship
6. Understudy
B. Off-the-Job Training
Methods:
1. Lectures and
Conferences
2. Vestibule Training
3. Simulation Exercises
4. Sensitivity Training
5. Transactional Training

A. On-the-job training Methods:
• A. On-the-job training Methods:
• Under these methods new or inexperienced
employees learn through observing peers or
managers performing the job and trying to
imitate their behavior. These methods do not cost
much and are less disruptive as employees are
always on the job, training is given on the same
machines and experience would be on already
approved standards, and above all the trainee is
learning while earning. Some of the commonly
used methods are:
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1. Coaching:
Coaching is a one-to-one training. It helps in quickly identifying the
weak areas and tries to focus on them. It also offers the benefit of
transferring theory learning to practice. The biggest problem is that
it perpetrates the existing practices and styles. In India most of the
scooter mechanics are trained only through this method.
2. Mentoring:
The focus in this training is on the development of attitude. It is
used for managerial employees. Mentoring is always done by a
senior inside person. It is also one-to- one interaction, like coaching.
3. Job Rotation:
It is the process of training employees by rotating them through a
series of related jobs. Rotation not only makes a person well
acquainted with different jobs, but it also alleviates boredom and
allows to develop rapport with a number of people. Rotation must
be logical.

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4. Job Instructional Technique (JIT):
It is a Step by step (structured) on the job training method in which
a suitable trainer (a) prepares a trainee with an overview of the
job, its purpose, and the results desired, (b) demonstrates the task
or the skill to the trainee, (c) allows the trainee to show the
demonstration on his or her own, and (d) follows up to provide
feedback and help. The trainees are presented the learning
material in written or by learning machines through a series called
‘frames’. This method is a valuable tool for all educators (teachers
and trainers). It helps us:
a. To deliver step-by-step instruction
b. To know when the learner has learned
c. To be due diligent (in many work-place environments)

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5. Apprenticeship:
Apprenticeship is a system of training a new generation of
practitioners of a skill. This method of training is in vogue in
those trades, crafts and technical fields in which a long period is
required for gaining proficiency. The trainees serve as
apprentices to experts for long periods. They have to work in
direct association with and also under the direct supervision of
their masters.
6. Understudy:
In this method, a superior gives training to a subordinate as his
understudy like an assistant to a manager or director (in a film).
The subordinate learns through experience and observation by
participating in handling day to day problems. Basic purpose is to
prepare subordinate for assuming the full responsibilities and
duties.

B. Off-the-job Training Methods:
In these methods, trainees have to leave their
workplace and devote their entire time to the
development objective. Off-the-job training
methods are conducted in separate from the
job environment, study material is supplied,
there is full concentration on learning rather
than performing, and there is freedom of
expression. Following training techniques are
used off-the-job
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1. Lectures and Conferences:
Lectures and conferences are the traditional and direct method of
instruction. Every training programme starts with lecture and conference.
It’s a verbal presentation for a large audience. However, the lectures have
to be motivating and creating interest among trainees. The speaker must
have considerable depth in the subject. In the colleges and universities,
lectures and seminars are the most common methods used for training.
2. Vestibule Training:
Vestibule Training is a term for near-the-job training, as it offers access to
something new (learning). In vestibule training, the workers are trained in a
prototype environment on specific jobs in a special part of the plant.
An attempt is made to create working condition similar to the actual
workshop conditions. After training workers in such condition, the trained
workers may be put on similar jobs in the actual workshop.

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3. Simulation Exercises:
Simulation is any artificial environment exactly similar to the actual situation.
There are four basic simulation techniques used for imparting training:
management games, case study, role playing, and in-basket training.
4. Sensitivity Training:
Sensitivity training is also known as laboratory or T-group training. This training
is about making people understand about themselves and others reasonably,
which is done by developing in them social sensitivity and behavioral flexibility.
It is ability of an individual to sense what others feel and think from their own
point of view.
5. Transactional Analysis:
It provides trainees with a realistic and useful method for analyzing and
understanding the behavior of others. In every social interaction, there is a
motivation provided by one person and a reaction to that motivation given by
another person.

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EMPLOYEE ENGAGEMENT

EMPLOYEE ENGAGEMENT
“A heightened emotional connection that an
employee feels for his or her organization, that
influences him or her to exert greater
discretionary effort to his or her work".
 “Employee engagement is the level of
commitment and involvement an employee has
towards their organization and its values.”
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What is Employee Engagement ?
Its a step ahead than Employee Satisfaction:
• Belief in the organization
• Desire to work to make things better
• Understanding of business context and the
‘bigger picture’
• Respectful of and helpful to colleagues
• Willingness to ‘go the extra mile’
• Keeping up to date with developments in the
field
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Components of engagement
• Rational Engagement: the involvement,
understanding and motivation an employee
has in his/her job.
• Emotional Engagement: the attitudinal
attachment an employee has to his/her
company.
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Categories of Employee Engagement
Engaged--"Engaged" employees
are builders.
Not Engaged--Not-engaged
employees tend to concentrate on
tasks rather than the goals
Actively Disengaged--The
"actively disengaged" employees
are the "cave dwellers.
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Measurement of Employee
Engagement
Step I: Listen.
Step II: Measure current level of employee
engagement.
Step III: - Identify the problem areas.
Step IV: Taking action to improve employee
engagement by acting upon the problem areas.
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Model of Employee Engagement
• Say :Speak positively about the organization
• Stay : Desire to be a member of the organization
• Strive : Go beyond what is minimally required
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Engagement activities
• “This is about how we create the conditions in which employees
offer more of their capability and potential.” –David Macleod
1: Involve employees in your business planning process
• Every 6 months, or even quarterly, present the most important
issues in your company and the actions made to address those
issues. Involve your team in planning ahead, assessing
opportunities and coming up with improvement ideas for your
business strategy
• 2: Create a knowledge sharing system One of the biggest costs of a
high employee turnover rate is the loss of essential information.
Implement a mentorship program, pairing experienced employees
with newly hired ones. Create a learning program template that
they should follow, giving them enough space to test their own
learning methods.
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3:Show them the money
• Give your team a quick presentation of the financial state of your
company, every quarter or at the end of the year.
4: Encourage and provide learning opportunities
• Create your own Academy, where employees can access the
knowledge and development opportunities that they need.
5: Create your own internal magazine
• Create your internal employee-focused magazine with fun columns,
news, featured stories and opportunities. Who wouldn’t like to be
featured on the cover as Employee of the Month?
6: I am my own hero”
• Encourage individuals to design and own their career paths, instead
of relying on the company or on their manager.
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7:Celebrate people
• Birthdays, promotions, retirements, newcomers welcoming, there are plenty of important
moments where people can be put at the front of the company. Show them they matter
8: Have team photos
• Have photos of your team on a wall, or frame
them around the office.
9: Raise salaries
10: Celebrate achievements
11: Show respect
12:Make sure that people have all the resources they need
13: Build long-term engagement
14: Make sure that people have all the resources they need
15. Empower your employees
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