Unit 3 (HRM)
Unit 3 (HRM)
Unit 3 (HRM)
Meaning
Definition
“Training is the act of increasing the knowledge and skills of an employee for doing a particular job.” —
Edwin B. Flippo
Objectives of Training:
● To impart skills among the workers systematically so that they may learn quickly.
● To bring about change in the attitudes of the workers towards fellow workers, supervisor and the
organization.
● To make the workers handle materials, machines and equipment efficiently and thus to check
wastage of time and resources.
Need of Training
❖ Higher Productivity
❖ Quality Improvement
❖ Reduction of Learning Time
❖ Industrial Safety
❖ Reduction of Turnover and Absenteeism
❖ Technology Update
❖ Effective Management
Importance
1. Improves morale of employees- Training helps the employee to get job security and job
satisfaction. The more satisfied the employee is and the greater is his morale, the more he will
contribute to organizational success and the lesser will be employee absenteeism and turnover.
2. Less supervision- A well trained employee will be well acquainted with the job and will need less of
supervision. Thus, there will be less wastage of time and efforts.
3. Fewer accidents- Errors are likely to occur if the employees lack knowledge and skills required for
doing a particular job. The more trained an employee is, the less are the chances of committing
accidents in job and the more proficient the employee becomes.
4. Chances of promotion- Employees acquire skills and efficiency during training. They become more
eligible for promotion. They become an asset for the organization.
5. Increased productivity- Training improves efficiency and productivity of employees. Well trained
employees show both quantity and quality performance. There is less wastage of time, money and
resources if employees are properly trained.
Ways/Methods of Training
On the job training methods are those which are given to the employees within the everyday working of
a concern.
❖ The in proficient as well as semi-proficient employees can be well trained by using such training
method.
❖ The motto of such training is “learning by doing.” Instances of such on-job training methods are
job-rotation, coaching, temporary promotions, etc.
Off the job training-
Off the job training methods are those in which training is provided away from the actual working
condition. It is generally used in case of new employees.
❖ Instances of off the job training methods are workshops, seminars, conferences, etc.
❖ Such method is costly and is effective if and only if large number of employees have to be
trained within a short time period.
1. Job Rotation
It involves the movement of the trainee from one job to another. The trainee receives job knowledge &
gains experience from his supervisor or trainer. This type of training gives an opportunity to the trainee
to understand the problem of employees on other jobs & respect them.
2. Coaching
The trainee is placed under a particular supervisor who functions as a coach in training the individual.
The supervisor provides feedback to the trainee on his performance & offers him some suggestions for
improvement.
3. Job Instruction
This method is also known as step-by-step training. Under this method, the trainer explains to the
trainee the way of doing the jobs, knowledge & skill and allows him to do the job. The trainer appraises
the performance, provides information & corrects the trainees.
4. Committee Assignment
Under this method, a group of trainees is given and asked to solve an actual organizational problem. The
trainees solve the problem jointly and develop teamwork.
5. Apprenticeship programs
People seeking to enter the skilled trades to become, for example, plumbers, electricians, and
Ironworkers are often required to undergo apprenticeship training before they are accepted to
journeyman status.
Typically this apprenticeship period is from two to five years. During this period, the trainee is paid less
than a qualified worker.
1. preparing the trainees by telling them about the job and overcoming their uncertainties;
2. presenting the instruction, clearly giving essential information;
3. having the trainees try out the job to demonstrate their understanding; and
4. On their own, placing the workers into the job with a designated resource person is ready to
provide the required assistance.
Off-the-Job Methods
Under this method of training, the trainee is separated from the job situation and his attention is
focused on learning the material related to his future job performance.
1. Vestibule training
In this method, actual work conditions are simulated in a classroom. Material files and needed
equipment are also used in training. This type is used for training personnel for clerical and semi-skilled
jobs.
2 Role-Playing
It is defined as a method of human interaction that involves realistic behavior in an imaginary situation.
This method of training involves action doing the practice. This method is mostly used for developing
interpersonal interaction and relations.
3. Lecture Method
The lecture is a traditional & direct method of instruction. The instructor organizes the material & gives
it to a group of trainees in the form of a talk. This is beneficial to train a large group of trainees.
4. Conference
It is a method for clerical, professional & supervisory personnel. This involves a group of people who put
forth ideas, examine & share facts, ideas assumptions & draw a conclusion. The success of this method
depends on the leadership qualities of the person who leads the group.
5. Programmed Instructions
In recent years this method has become popular the subject matter to be learned is presented in a
series of carefully planned sequential. This method is expensive & time-consuming.
6. Sensitivity Training (T-groups)
● Sensitivity training, also called T-group, is a technique for management development.
● It is concerned with the real problems existing within the group itself. It is not an imagined
problem living outside the organization. It is not a program of teaching skills or improving
participants’ understanding.
● In this program, an attempt is made to change the attitude and behavior of people in the group.
It is used in building team efforts.
● This is done by introspection, self-criticism, and genuine arguments, and through free and frank
discussion, one knows how others feel about him and his behavior.
● It provides a mirror in which one can see his mental makeup, attitude, and behavior towards
others. This will give the best method of motivation for self-development. The objective of this
training includes:
✔ Better insight into one’s behavior and the way one appears to others;
✔ better understanding of group processes;
✔ Members learn more about themselves, especially their weakness and emotional stability;
✔ Development of skills in diagnosing and intervening in group processes;
✔ Find a better method and means of behavior for effective interpersonal relationships without
power over others.
Training Process
1. Needs assessment: The first step in the training process is to assess the need for training the
employees. The need for training could be identified through a diagnosis of present and future
challenges and through a gap between the employee’s actual performance and the standard
performance.
2. Deriving Instructional Objectives: Once the needs are identified, the objectives for which the
training is to be conducted are established. The objectives could be based on the gaps seen in
the training programmes conducted earlier and the skill sets developed by the employees.
3. Designing Training Programme: The next step is to design the training programme in line with
the set objectives. Every training programme encompasses certain issues such as: Who are the
trainees? Who are the trainers? What methods are to be used for the training? What will be the
level of training? etc.Also, the comprehensive action plan is designed that includes the training
content, material, learning theories, instructional design, and the other training requisites.
4. Implementation of the Training Programme: Once the designing of the training programme is
completed, the next step is to put it into the action. The foremost decision that needs to be
made is where the training will be conducted either in-house or outside the organization.
Once it is decided, the time for the training is set along with the trainer who will be conducting
the training session. Also, the trainees are monitored continuously throughout the training
programme to see if it’s effective and is able to retain the employee’s interest.
5. Evaluation of the Training Programme: After the training is done, the employees are asked to
give their feedback on the training session and whether they felt useful or not. Through
feedback, an organization can determine the weak spots if any, and can rectify it in the next
session.The evaluation of the training programme is a must because companies invest huge
amounts in these sessions and must know it’s effectiveness in terms of money.
Concept of Career Planning
● Career planning is an ongoing process by which an individual sets his career goals and identifies the
means and ways to achieve them. The way people plan for their life’s work is considered as career
planning.
Career Stages
The Career Stages refers to the stages of career development that an individual passes through.
Basically, there are 5 career stages, which an individual has to undergo during his lifetime.
1. Exploration: The exploration stage is the pre-employment stage, wherein the individuals are in their
mid-twenties and enter from their college life to the work environment. The individuals narrow down
their work preferences on the basis of the directions showed by their parents, friends, family, teachers.
At this stage, several expectations about the work are created that may be the fantasies, or unrealistic
beliefs about the work, very much before entering into the firm.
2. Establishment: At this stage, an individual actually experiences the work culture in his first job. Here, all
the expectations and fantasies come to an end, and one has to face the reality of life. This stage covers
about 10 years from the 25 years of age.
It is also called as a learning stage; wherein the fresher learns under the guidance of a mentor. At this
stage, the fresher commits many mistakes and try to learn from these, thereby gaining a position in the
society and working for his career advancement.
3. Mid-Career: This stage covers the age period of 35 to 45 years. At this stage, the individual is no longer
considered to be a fresher and his mistakes are taken seriously by the senior management.
Here, the employee must evaluate his current career position, i.e. whether he is advancing, or has
stabilized or has started to decline and look for the future career prospects. At this stage, an individual
has to maintain a balance between his career and his personal life i.e. spouse and children.
4. Late-Career: At this stage, an individual reaches to a particular position in the organization hierarchy, on
the basis of his career graph which is characterized by growth or stagnation.
If an individual grows even after the mid-career (i.e. 20 years after mid-forties), then he is considered to
be having the pleasant experience with the work. Here, an individual becomes the mentor and guide
others through his experiences.
5. Decline: This is the last stage of career development. At this stage, an individual has to step out of his
work or get a retirement from his official commitments. It is considered as one of the difficult stages, as
it is very hard for the employees to leave the firm who are doing excellent even after their late career.
Promotions
● Promotion refers to the upward movement of an employee from a current job to another that is
higher in pay, responsibility, status, and organizational level.
● Promotion is vertical movement of an employee within the organization. In other words,
promotion refers to the upward movement of an employee from one job to another higher
one, with increase in salary, status and responsibilities. Promotion may be temporary or
permanent, depending upon the needs of the organization.
Definition of Promotion
-Edwin B. Flippo
Purposes of Promotion
1. To put the employee in a position where he will be of greater value to the company. This
will imply, utilizing the employee’s skill and knowledge at the appropriate level in the
organization’s hierarchy resulting in organizational effectiveness and employee satisfaction.
2. To develop competitive spirit and zeal in the employees to acquire the skill and knowledge
etc. required by higher level jobs.
3. To develop internal sources of employees ready to take jobs at higher levels in the
organization. Employees have little motivation if better jobs are reserved for outsiders.
4. To promote employee self-development and make them wait their turn for promotions. It
reduces labor turnover.
5. To build up morale, loyalty, and a sense of belongingness on the part of employees when it
is brought home to them that they would be promoted if they deserve it.
6. To promote employees’ interest in training and development programs and in team
development areas.
9. To create among employees a feeling of contentment with their present working conditions
and encourages them to succeed in the company.
1. Horizontal Promotion:
This kind of promotion rewards an employee with a pay increase but little to no change in
responsibilities. It is also regarded as an up-gradation of an employee. In the educational sector,
an example of this is the move from lecturer to senior lecturer.
2. Vertical Promotion:
This refers to an upward movement of employees with a change in skills and experience. It
brings a change in salary, responsibility, status, benefits, etc. In the marketing industry, this can
be the promotion of a marketing supervisor to the marketing manager.
Due to its nature, it can change the nature of the job as well. This can be a shift from functional
head to the chief executive, both being very different jobs.
3. Dry Promotion:
This promotion refers to an increase in responsibilities and status without the benefits. It
means no increase in pay or any financial benefits for that matter.
Open Promotion is a situation wherein every individual of an organization is eligible for the
position. Closed Promotion is a situation wherein only selected team members are eligible for a
promotion.
1. Expectation
2. Reduce Attrition
3. Motivation & Productivity
4. Cost-Efficient
5. Career Growth
6. Need to Manage
7. Rewards and Recognition
Separation
Meaning
Voluntary Separation
1. Resignation
A resignation refers to the termination of employment at the instance of the employees. A resignation may be put
voluntarily by the employee. An employee resigns when he secures a better job elsewhere, in the case of a female
employee when she marries and has to quit for personal reasons or when an employee suffers from ill health or for
any other reasons.
Involuntary
● Dismissal is the termination of the services of an employee as a punitive measure for
some misconduct. The discharge also means termination of the service of an employee,
but not necessarily as a punishment step.
● Suspension means prohibiting an employee from attending work and performing
normal duties assigned to him. This is a serious punishment and is generally awarded
only after a proper inquiry has been conducted.
● Retrenchment, too, results in the separation of an employee from his employer. Retrenchment
is generally on account of surplus staff, poor demand for products, general economic slowdown,
etc. Termination of services on disciplinary grounds, illness, retirement, or winding up of a
business does not constitute retrenchment.
● A layoff is a temporary separation of the employee from his employer at the instance of
the latter without any prejudice to the former. Layoff means the failure, refusal, or
inability of an employer on account of coal, power, or raw- materials or accumulation of
stock, breakdown of machinery, or by any other reason to give employment to a
workman whose name is borne on the muster roll.
Performance Appraisal
Meaning
● A performance appraisal is a systematic and periodic process of measuring an
individual’s work performance against the established requirements of the job.
● Performance appraisal is a part of a company’s process of understanding their
employees better and giving them feedback to help them improve their performance.
● Performance Appraisal is the systematic evaluation of the performance of
employees and to understand the abilities of a person for further growth and
development.
● Performance appraisal acts as a tool to check the development opportunities for the
employees. It is a systematic evaluation of the work performed by the employees.
● An employee performance appraisal system has defined a process in which a predefined
standard of factors such as work knowledge, work performance, work attitude,
leadership quality, team player behavior, consistency, decision-making abilities, and
skills is created and then actual performance, as well as the personality of employee, is
compared with these expected standards by the organization.
● A performance appraisal used in the organization is a regular review of employees’
performance to verify their contribution to the company. It is also known as an annual
review or performance evaluation. It evaluates the skills, growth, achievement, or
failure of the employees. The performance appraisal is often used to justify the
decisions related to promotions, pay hikes, bonuses, and termination of the employee.
Definition
According to flippo-
“Performance appraisal is a systematic, periodic and so far as humanly possible, an impartial rating of an
employee's excellence in matters pertaining to his present job and to his potentialities for a better job.”
Meaning
● IT is the process of determining the relative worth of different categories of jobs by analyzing
their responsibilities and consequently, fixation on their remuneration.
● It is a system of determining the relative worth of different jobs in an organization. Here a
particular job of an enterprise is compared with its other jobs. Comparative study of these jobs
is very necessary because on the basis of such study the structure of wages for different types of
jobs is prepared. The value of each job depends on certain factors.
● In other words, Job evaluation is the process of establishing the value of jobs in a job
hierarchy. Job evaluation is a formal and systematic comparison of jobs in order to determine
the worth of one job relative to another so that a wage or salary hierarchy results.
Definition
Job evaluation represents an effort to determine the relative value of every job in a plant and to
determine what the fair basic wages for such a job should be. - Kimball and
Kimball
Features of Job Evaluation
The primary objective of job Evaluation is to find out the value of work, but this is a value which varies
from time to time and from place to place under the influence of certain economic pressure. The main
features of job Evaluations are as follows:
1. Ranking Method
In the ranking method of job evaluation, a whole job is compared with others and rank is provided on
the basis of this comparison. The usual process followed in this method is as under:
1. On the basis of job analysis, each member of the job evaluation committee ranks each job
independently either against the benchmark job or against all other jobs. The ranking is provided to the
job on the basis of this comparison.
2. In order to increase the reliability of ranking, this exercise is undertaken twice or thrice by the members.
3. If there are significant differences of opinions among the members about the ranking of a particular job,
the matter is settled by mutual consultation, or by working out the average.
Merits
Ranking method has certain facial merits. Some of these merits are as follows:
● The method is comparatively simple, easily understandable, and mostly acceptable by labor unions. It is
suitable for comparatively smaller organizations which may not like to undertake more laborious
exercises.
● The method is less costly to undertake and maintain as compared to other systems.
Demerits
● Ranking method is judgmental and, therefore, it is affected by personal preferences of job evaluators.
● This method ranks various jobs in order of their relative worth. It does not specify the real difference
between two jobs. For example, the exact difference between job ranked at first and the job ranked at
second cannot be specified.
2. Grading Method
Job grading method also known as job classification method establishes various grades for different
categories of jobs. For example, jobs of an operative may be classified as unskilled, semi-skilled, skilled
and highly-skilled. The process followed in this method is as under:
1. At the initial stage, A number of job classes or grades is decided on the basis of job analysis. Job grades
can be determined on either of two bases. First, all jobs may first be ranked and their natural classes
may be determined. The description of each job class is prepared covering all jobs falling in a class.
Second, the job evaluation committee may prepare a series of job class description in advance on the
basis of which various jobs may be graded.
2. Different characteristics of each job are matched with description of job class and a job is placed in the
class with which it matches best.
Merits
● It is quite simple to operate and understand as the relevant information is provided by job analysis
which serves other purposes too.
● Job evaluation done on grading method makes wage and salary determination easier as these are fixed
in terms of various grades of jobs.
Demerits
● Job grade description is vague and personal biases may distort job grading as the method is not based
on any scientific analysis.
● There are chances of employees’ resistance when new clusters of jobs are prepared. This is evident by
the fad that government employees agitate when recommendations of a new pay commission come.
3. Point Method
Point method of job evaluation is widely used in business organizations. It is an analytical and
quantitative method which determines the relative worth of a job on the basis of point’s allotted to each
specific factor of a job. The sum total to these points allotted to various job factors is the worth of the
job. This total is compared with that of other jobs and relative worth of various jobs is determined.
4. Factor Comparison Method
This method, also known as key job method, was originally developed at the Philadelphia Rapid Transit
Company; USA by Eugene J.Benge in 1926 to overcome two major problems faced in point method of
job evaluation. Viz. Determining the relative importance of factors and describing their degrees. In this
method, each factor of a job is compared with the same factor of the other jobs or the key job either
defined or existing one. When all factors are compared, the final rating is arrived at by adding the value
received at each comparison. For this purpose, Benge identified five factors – mental effort, skill,
physical effort, responsibility and working conditions. The procedure for factor comparison method of
job evaluation is as follows:
1. At the initial stage, some key jobs which are well recognized are selected. These jobs should be from a
cross-section of departments. These should represent all levels of wages and salaries which are
considered fair, both internally as well as externally.
2. Various factors of the jobs which are to be considered for comparison should be identified. These factors
may be mental requirement. Skills, physical requirement, responsibility and working conditions.
3. Each factor of a job is compared with the same factor of the key job and rank is awarded. This exercise is
repeated for all other factors.
4. The relative worth of a job is determined by adding the ranks obtained by different factors of a job.
Sometimes, the rank is expressed in terms of monetary values and these values are added together to
get the correct wage rate for the job.
Merits
The factor comparison method is more systematic and analytical as compared to any other method and
offers following merits:
● It provides more accurate information about the relative worth of a job as different comparable factors
are compared with key jobs.
● Since only limited number of factors relevant for the effective job performance is compared, there are
reduced chances of overlapping.
● Since the evaluation is more systematic and analytical, its logic can be accepted by trade unions and
workers.
Demerits
● This method is quite costly and time consuming to install and difficult to understand by those not fully
conversant with job evaluation process.
● If wage rates are adopted for making comparison, the system may become obsolete very soon as there
may not be proportionate increase in wages for all jobs.
● This system considers only limited factors of job for comparison. This may be a positive point so far as
avoidance of duplication and simplicity of procedure are concerned, but may ignore other factors which
may be important for the performance of the job.