hrm study materials

8/6/2019 Hrm Study Materials

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2. Human Resource management (HRM)

2.1 Introduction to HRM

HRM is a broad concept; Personnel management and human resource development

are a part of HRM.

HRM is management function that helps managers recruit, select, train anddevelops members for an organization. HRM involves all management decisions

and practices that directly affect or influence the people or human resources who

work for the organization.

Human Capital or managing talent: the term human capital describes the economic

value of employees knowledge, skills, power and capabilities.

The Idea that organizations compete through people highlights the fact that

success increasingly depends on an organizations ability to manage talent, or

Human capital.

Human Capital Management refers to the task of measuring the cost and effect

relationship of various HR programs and policies on the bottom line of the

organization. It seeks to obtain additional productivity.

Industrial Relation is concerned with systems, rules and procedure used by

unions and employers to determine the reward for effort and other conditions of

employment, to protect the interest of the employed and their employers, and to

regulate the ways in which employers treat their employees.

It covers the following areas

1. Collective bargaining2. Role of management, unions and government3. Machinery for resolution of industrial dispute4. Individual grievance and disciplinary policy and practice5. Labour legislation6. Industrial relations training

Personnel management is a responsibility of all those who manage people as

well as being a description of the work of those who are employed as specialists. It is

that part of management which is concerned with people at work and with their

relationships within an enterprise. It applies not only to industry and commerce but

to all fields of employment.

2.2 The functions of HRM can be broadly classified into two categories, viz.

1. Managerial Functions and2. Operative Functions

1. Managerial Functions involve

Planning: it is a pre-determined course of action. Planning is determination of

personal programs and changes in advance that will contribute to the

organizational goals. In other words, it involves planning of human resources,


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requirements, recruitment, selection, training etc. It also involves forecasting of

personnel needs, changing values, attitudes and behavior of employees and their

impact on organization.

Organizing: An organization is a means to an end. It is essential to carry out the

determined course of action. According to J. C Massie, an organization is a

structure and a process by which co-operative group of human beings allocated its

task among its members, identifies relationships and integrates its activities

towards common objective.

Directing: It is the basic function of personnel management which includes

motivating, commanding, leading and activating people. Direction is an important

managerial function in building sound industrial and human relationships besides

securing employees contribution.

Controlling: It is the function ofchecking, verifying and comparing of the actual

with the plans, Identification of deviations if any and correcting of identified

deviations.

2. Operative functions: Operative Functions of Personnel management are

related to specific activities of personnel management, viz., employment,

development, compensation and relations, which interact with managerial

functions.

1. Employment: It is concerned with securing and employingthe people possessingrequired kind and level of human resources necessary to achieve the organizational

objectives. It covers the functions such as the Job analysis, Human resource

planning, recruitment, selection, placement, induction and orientation.

a. Job analysis: it is the process ofstudying and collecting the information related tooperations and responsibilities of a specific job, which includes

- Collection of data, information, facts and ideas relating to various aspects of jobsincluding men, machines and materials.

- Preparation of job description, job specification, job requirements and employeespecification which will help in identifying the nature, levels and quantum of

human resources.

- Providing the guides, plans and basis for job design and for all operative functionsof HRM.

b. Human resource planning: it is a process for determination and assuring thatthe organization will have an adequate number of qualified persons, available at

proper times, performing jobs which would meet the needs of the organization and

which would provide satisfaction for the individuals involved. It involves

- Estimation of present and future requirements and supply of human resourcesbasing on objectives and long range plans of the organization.


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- Calculation of net human resources requirements based on present inventory ofhuman resources.

- Taking steps to mould, change, and develop the strength of existing employees in theorganization so as to meet the future human resource requirements.

- Preparation of action programmes to get the rest of human resources from outsidethe organization and to develop the human resources of existing employees.

c. Recruitment: It is the process of searching for prospective employees andstimulating them to apply for jobs in an organization.

d. Selection: It is the process of ascertaining the qualifications, experience, skill,knowledge etc. of an applicant with a view to appraising his/her suitability to a job

appraising.

e. Placement: It is the process of assigning the selected candidate with the mostsuitable job in terms of job requirements. It is matching of employee specifications

with job requirements. This function includes:

a) Counseling the functional managers regarding placement.b) Conducting follow-up study, appraising employee performance in order to

determine employee adjustment with the job.

c) Correcting misplacements if any.f. Induction and Orientation: they are the techniques by which a new employee is

rehabilitated in the changed surrounding and introduced to the practices, policies,

purposes and people of the organization. It involves,

a)Acquaint the employee with the company philosophy, objectives, policies,career planning and development, opportunities, product, market share, social

and community standing, company history, culture etc.

b) Introduce the employee to the people with whom he has to work such as peers,supervisors and subordinates.

c) Mould the employee attitude by orienting him to the new working and socialenvironment.

g. Human Resource Development: it is the process of improving, moulding andchanging the skills, knowledge, creative ability, aptitude, attitude, values,

commitment etc., based on present and future job and organizational requirements.

This function includes:

i. Performance appraisal: it is the systematic evaluation of individualswith respect to their performance on the job and their potential for

development. It includes,

- Developing policies, procedures and techniques.- Helping functional managers- Reviewing of reports and consolidation of reports.- Evaluating the effectiveness of various programmes.


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ii. Training: It is the process of imparting the employees the technical andoperating skills and knowledge.

1. Internal Mobility: It includes vertical and horizontal movement of an employeewithin an organization. It includes internal and external mobility.

2. Transfer: It is the process of placing employees in the same level of jobs where theycan be utilized more effectively in consistence with their potentialities and needs of

the employees and the organization.

3. Demotion: it deals with downward reassignment to an employee in theorganization. Demotion moves an individual into a lower-level job that can provide

developmental opportunities. Although such a move is ordinarily considered

unfavorable, some individuals actually may request it in order to return to their

technical roots. It is not uncommon for organizations to appoint temporary leaders

with the provision that they will eventually step down to resume their former

position.

iii. Organizational Development: It is a planned process designed to improveorganizational effectiveness and health through modifications in individual and

group behavior, culture and systems of the organization using knowledge and

technology of applied behavioral science.

Compensation: It is the process of providing adequate, equitable and fair

remuneration to the employees. It includes job evaluation, wage and salary

administration, incentives, bonus, fringe benefits, social security measures etc.

Job evaluation: it is the process of determining relative worth of jobs:

a. Select suitable job evaluation techniqueb. Classify jobs into various categories.c. Determining relative value of jobs in various categories.

Wage and salary administration: this is the process of developing and operating

a suitable wage and salary programme. It covers:

a) Conducting and wage and salary surveyb) Determining wage and salary rates based on various factorsc) Administering wage and salary programmesd) Evaluating its effectiveness

Incentives: It is the process of formulating, administering and reviewing the

schemes of financial incentives in addition to regular payment of wages andsalary. It includes:

a. Formulating incentive payment schemes.b. Helping functional managers on the operation.c. Review them periodically to evaluate effectiveness.

Bonus: A bonus is an incentive payment that is given to an employee beyond

ones normal base wage.


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Spot Bonus: An Unplanned bonus given to Employee effort unrelated to an

established performance measure.

It includes payment of statutory bonus according to the Payment of Bonus Act,

1965 and its latest amendments.

Fringe Benefits: These are the various benefits at the fringe of the wage.

Management provides these benefits to motivate the employees and to meet

their lifes contingencies. These benefits include:

a) Disablement benefitsb) Housing facilitiesc) Educational facilities to employees and childrend) Canteen facilitiese) Recreational facilitiesf) Conveyance facilitiesg) Credit facilitiesh) Legal clinici) Medical, maternity and welfare facilities

j) Company storesSocial Security measures: managements provide social security to their

employees in addition to the fringe benefits. These measures include:

a) Workmens compensation to those workers (or their dependents) whoinvolve in accidents.

b) Maternity benefits to women employees.c) Disablement benefits/allowance.d) Sickness benefits and medical benefits.e) Dependent benefits.f) Retirement benefits like provident fund, pension, gratuity etc.

Human relations: It is the process of interaction among human beings. Human

relations is an area of management in integrating people into work situation in a

way that motivates them to work together productively, co-operatively and with

economic, psychological and social satisfaction. It includes:

a) Understanding and applying the models of perception, personality,learning, intra and inter personal relations, intra and inter group

relations.b) Motivating the employeesc) Boosting employee moraled) Developing communication skillse) Developing the leadership skillsf) Redressing employee grievances properly and in time by means of a well

formulated grievance procedure.


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g) Handling disciplinary cases by means of an established disciplinaryprocedure.

h) Counseling the employees in solving their personal, family and workproblems and releasing their stress, strain and tensions.

i) Improving quality of work life of employees through participation andother means.

Effectiveness of Human Resources Management:

Effectiveness of various Personnel programmes and practices can be measured

or evaluated by means of organizational health and human resource accounting.

Organizational Health: Organizational health may be studied through the

result of employees contribution to the organization and the employee job

satisfaction. Low rate of absenteeism and labour turnover and high rate of

employee commitment indicate employee satisfaction about the job and the

organization.

Human Resource Accounting: It is a measurement of the cost and value of

human resource to the organization. Human resource management is said to be

effective if the value and contribution of human resources to the organization is

more than the cost of human resource.

Human Resource Audit: Human resource audit refers to an examination and

evaluation of policies, procedures and practices to determine the effectiveness of

HRM. Personnel audit measures the effectiveness of personnel programmes and

practices, and determines what should or should not be done in future.

Human Resource Research: it is the process of evaluating the effectiveness of

human resources policies and practices and developing more appropriate ones. It

includes:

a) Conducting morale, attitude, job satisfaction and behavioral surveys.b) Collecting of data and information regarding wages, cost-benefit analysis

of training, benefits, productivity, absenteeism, employee turnover,

strikes, accidents, operations, working hours, shifts etc.

c) Tabulating, computing and analyzing of the data and informationd) Report writing and submission to the line manager.e) Finding out the defects and short comings in the existing policies,

practices etc.f) Developing more appropriate policies, procedures, programmes of

personnel.

g) Mission, Objectives, Strategy and Tactics (MOST) and HRMMission: The basic purpose of the organization as well as its scope of operation.

Mission of Merck Company To provide society with superior products and

services by developing innovations and solutions that improve the quality of life and


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satisfy customer needs, and to provide employees with meaningful work and

advancement opportunities, and investors with a superior rate of return.

Mission statement helps a corporation to link its activities to the needs of society

and legitimize its existence.

Objectives: Objectives are the open ended attributes denoting a future state or

outcome that a corporation strives for.

Strategy: it is fairly broad statement of intent which shows the types of action

required to achieve the objectives.

Tactics: tactics are action plans through which strategies are implemented.

Standard hour Plan: An incentive plan that sets rates based on the completion of

a job in a predetermined standard time.

Relocation services: Services provided to an employee who is transferred to a

new location, which might include help in moving, selling a house, orienting to a

new culture, and/or learning a new language.

Outplacement services: services provided by organizations to help terminated

employees find a new job.

Corporate Social Responsibility

The responsibility of the firm to act in the best interests of the people and

communities affected by its activities.

Companies are discovering that being socially responsible helps the bottom line.

Moreover, workers applying for jobs are saying corporate responsibility is now more

important to their job selection. One of HRs leadership roles is to spearhead the

development and implementation of corporate citizenship throughout the

organization.

Knowledge worker

The workers whose responsibility extends beyond the physical execution of work to

include planning, decision making, and problem solving.

HRIS human Resource Information System

A computerized system that provides current and accurate data for purposes of

control and decision making. HRIS is a potent weapon for lowering administrative

costs, increasing productivity, speeding up response times, and improving decision

making and customer service.

The most obvious impact has been operational- that is, automating routineactivities, alleviating administrative burdens, reducing costs, and improving

productivity internal to HR function itself.

Reactive change: Change that occurs after external forces have already affected

performance.

Proactive change: change initiated to take advantage of targeted opportunities,

particularly in fast changing industries in which followers are not successful.


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Total Quality management;

It is a set of principles and practices whose core ideas include understanding

the customer needs, doing things right the first time and striving for continuous

improvement.

Six Sigma: a process used to translate customer needs into a set of optimal tasks

that are performed in concert with one another. Six sigma is a statistical method of

translating a customers needs into separate tasks and defining the best way to

perform each task in concert with the others.

Reengineering:

Fundamental Rethinking and Radical Redesign of Business processes to achieve

dramatic improvements in cost, quality, service and speed. Reengineering often

requires that managers start over from scratch in rethinking how work should be

done, how technology and people should interact, and how entire organizations

should be structured.

Downsizing: planned elimination of jobs. But downsizing is no longer being

regarded as a short term fix when times are tough. Its now become a tool

continually used by companies to adjust to changes in technology, globalization, and

the firms business direction.

Outsourcing: Contracting outside the organization to have work done that could

be done by internal employees.

Off-shoring: the business practice of sending jobs to other countries. Off-shoring,

also referred to as global sourcing, is the controversial practice of moving jobs

overseas. Nonetheless, almost half of 500 senior finance and HR leaders surveyed

said their firms are either off shoring or are considering off shoring in the next three

years, according to a study by Hewitt Associates.

Employee leasing: the process of dismissing employees who are then hired by a

leasing company (which handles all HR-related activities) and contracting with that

company to lease back the employee.

Professional Employer Organizations (PEO) typically a larger company

takes over the management of a smaller companys HR tasks and becomes a co-

employer to its employees. The PEO performs all the HR duties of an employer

hiring, payroll, and performance appraisal. Managing Diversity: managing diversity

means being acutely aware of characteristics common to employees, while alsomanaging these employees as individuals. It means not just tolerating or

accommodating all sorts of differences but supporting, nurturing, and utilizing

these differences to the organizations advantage.

Strategic Vision

A statement about where the company is going and what it can become in the

future; clarifies the long term direction of the company and its strategic intent.


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Core values

The strong and enduring beliefs and principles that the company uses as a

foundation for its decisions.

Strategic Planning

Procedures for making decisions about the organizations long term goals and

strategies.

Human resource planning

The process of anticipating and providing for the movement of people into, within,

and out of an organization.

Strategic Human resources Management (SHRM)

The pattern of Human Resources deployments and activities that enable an

organization to achieve its strategic goals.

Environmental scanning: it is the systematic monitoring of the major external

forces influencing the organization. Major factors are:

a) Economic factorsb) Industry and competitive trendsc) Technological trendsd) Government and legislative issuese) Social concernsf) Demographic and labour market trendsCultural Audits:

Audits of the culture and quality of work life in an organization. In an organization,

employee oriented cultures are critical to success, they often conduct cultural audits

to examine the attitudes and beliefs of the workforce as well as the activities they

engage in. This analysis focuses on whether the critical values are embraced and

demonstrated by the employees throughout the organization.

Cultural audits essentially involve discussions among top level managers of how the

organizations culture reveals itself to employees and how it can be influenced or

improved.

Retrenchment: it is the permanent termination of an employee due to economic

reason. It should not be on the grounds of illness, retirement, winding up of

business etc. The employer has to give three months notice before retrenching the

worker and get prior approval from the government.Layoff: a layoff is a temporary removal of an employee due to reasons beyond the

control of the employer ex: global competition, reduction in product demand, change

in technology that reduce the need of workers, and mergers and acquisitions are the

primary factors behind all layoffs. According to Industrial disputes Act 1947, the

employee gets only 50% of normally eligible total basic wages plus dearness

allowance during the period of lay off.


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Flexible Work Schedule

Job Sharing

The arrangement whereby two part-time employees perform a job that otherwise

would be held by one full-time employee.

Job sharers may work three days a week, creating an overlap day for extended face-

to-face conferencing.

Telecommuting

The use of personal computers, networks, and other communications technology

such as fax machines to do work in the home that is traditionally done in the

workplace.

Advantages of Telecommuting

a) Increased flexibility for employeesb)Ability to attract workers who might not otherwise be availablec) Less burden on working parentsd) Less time and money wasted on physical commutinge) Increased productivityf) Reduced absenteeism

Temping:

The notion of a clearly defined employer-employee relationship becomes difficult to

uphold in triangular relationships like in the case of temporary agency work where

the agencies employees are working at the site of the client company.

People associated with temping agencies at times get long breaks.

Earlier people found these long breaks and uncertainty to be a major disadvantage.

Today, surprisingly many find these breaks attractive and useful and prefer to be

part of temping agencies.

Reasons: more time with family and children. Opportunity to travel and be with

spouse especially when they are posted outside India.

Spirituality has become a major part of training sessions in organizations. Self

management and meditation seem to be working wonders on stressed out

employees.

2.2 Recruitment

Edwin B. Flippo defined recruitment as

the process of searching for prospective

employees and stimulating them to apply for jobs in the organization.

It deals with:

a) Identification of existing sources of applicants and developing them.b) Creation/identification of new sources of applicants.c) Stimulating the candidates to apply for jobs in the organization.d) Striking a balance between internal and external sources.


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Objectives of Recruitment

(i) To attract people with multi-dimensional skills and experiences that suits thepresent and future organizational strategies.

(ii) To induct outsiders with a new perspective to lead the company.(iii) To develop an organizational culture that attracts competent people.(iv) To devise methodologies for assessing psychological traits.(v) To search for talent globally and not just with the company.(vi) To anticipate and find people for positions that does not yet exist yet.Internal RecruitingJob Posting

Organizations can use skills inventories to identify internal applicants for job

Vacancies, because it is hard to identify all current employees who might be

interested in the opening, firms often use job posting and bidding. In the past, job

posting was little more than the use of bulletin boards and company publications.

Today, postings are computerized and easily accessible to employees via thecompanys intranet

Software allows employees to match an available job with their skills and experience.

External Recruiting

Walk-ins provide an important external source of applicants. As labor shortages

increase, however, organizations must become more proactive in their recruiting

efforts

a) External recruiting can be done through:b) Media advertisingc) E-recruitingd) Employment agenciese) Executive search firmsf) Special-events recruitingg) Internships

Media Advertisements

Media include:

a) Newspapersb) Trade and professional publicationsc) Billboardsd) Subway and bus cardse) Radiof) Telephoneg) Television

Recruitment strategies


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(i) In sourcing: companies recruit their own candidates, employ them, train anddevelop them and utilize them.

(ii) Outsourcing: External organizations whose core business is to providehuman resources, is called outsourcing.

Sources of RecruitmentTraditional Sources Modern Sources

Internal External Internal External

Present Permanent and

Temporary Employees

Campus Recruitment Employee

Referrals

Walk-in

Consult-in

Retrenched /Retired

Employees

Private employment

agencies

Head Hunting

Body Shopping

Dependents of

deceased/disabled/retired

employees.

Public Employment

exchanges

Mergers and

Acquisitions

Data banks, casualapplicants,

Tele Recruiting

Professional

associations, trade

unions etc.

Outsourcing

Modern External Sources of Recruitment

1) Walk-in The companies advertise candidates to attend interview directlywithout prior application on a specified date, time and at a specified place. The

suitable candidates from among the interviewees will be selected for appointment

after screening the candidates through tests and interviews. Walk-ins are

basically done for time saving and fast appointment of employees.

2) Consult-in The busy and dynamic companies encourage the potential jobseekers to approach them personally and consult those regarding jobs. The

companies select the suitable candidates from among such candidates through the

selection process.

3) Head hunting The companies request the professional organizations to searchfor the best candidates particularly for the senior executive positions. The

professional organizations search for the most suitable candidates and advise the

company regarding the filling up of positions. Head hunters are also called

Search consultants.

4) Body Shopping Professional organisations and the hi-tech training institutesdevelop the pool of human resources for the possible employment. The prospective

employers contact these organizations to recruit the candidates. Consulting

organizations also contact the prospective employers to supply suitable candidates

to place them in the right employment. The professional training institutes are

called body shoppers and these activities are known as body shopping.


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5) Mergers and Acquisitions Business alliances like acquisitions, mergers, andthe take overs help in getting human resources. In addition, the companies do

also have alliances in sharing their human resources on ad-hoc basis.

6) E- Recruitment Using internet as a source of recruitment is common inmodern days. Organizations advertise the job vacancies through the World Wide

Web (www). The job seekers send their applications and resume through e-mail

using internet. Many advantages are there for e-recruitment, such as low cost per

candidate, reduction in time, increase in selection ratio, HR personals can

concentrate on strategic issues, and increased efficiency and effectiveness of

recruitment.

Selection

It is the process of ascertaining the qualifications, experience, skill, knowledge etc.

of an applicant with a view to appraising his/her suitability to a job appraising. This

function includes:

a) Framing and developing applicationsb) Creating and developing valid and reliable testing techniques.c) Formulating interviewing techniquesd) Checking of referencese) Setting up medical examination policy and procedure.f) Line managers decision.g) Sending letters of appointment and rejection.h) Employing the selected candidates who report for duty.

Effectiveness ofSelection Procedure

The objective of the selection decision is to choose the individual who can most

successfully perform the job from the pool of qualified candidates. The company to

ascertain whether the candidates specifications are matched with the job

specifications. The following essentials are noted:-

a) Job requirements are met like specification and description.b) Employee specifications (physical, mental, social, behavioural, etc.)c) Suitable candidates are attracted.d)Authority of selection based on the job analysis and work load.e) Availability of job descriptions and job specifications beforehand.f) Availability of sufficient number of applicants.Stepsin Scientific Selection Process

i. Job analysis include job description, job specification and employeesspecifications.

ii. Human Resource plan the required number of and kind of employees for afuture date. This is the basis for the recruitment function.


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iii. Recruitment the process of searching for prospective employees andstimulating them to apply for jobs in an organization.

iv. Development ofBasis for selection The company develops or borrows theappropriate bases/techniques for screening the candidates in order to select the

appropriate candidates for the jobs.

v. Application Form or Application Blank A device used to screen thecandidates at the preliminary level. Many companies formulate their own

style of application blank depending upon the requirements of information

based on the size of the company, nature of business, type and level of job etc.

These include a) Personal background information b) educational attainments

c) work experiences d) salary expectations e) references etc.

vi. Written Examination on the basis of application blank, writtenexamination is conducted to check the candidates arithmetical ability, logical

reasoning, and knowledge in various disciplines, general knowledge and

English language skills.

vii. Preliminary Interview this is to solicit necessary information from theprospective candidates to assess the candidates suitability to the job. The

information given by the candidate may be related to the job specification and

the job description. Preliminary interviews are short and also known as stand

up interview or sizing up interview, because it is used as a measure to

eliminate the wrong candidates.

viii. Business games These are used for selecting management trainees,executive trainees, and managerial personnel at junior, middle and top

management positions. Business games are to find out the candidates ability

in decision making, problem solving, identifying potentials, human relation

skills etc.

ix. Group discussion GD is a method where groups of successful candidatesare brought around a conference table and are asked to discuss either a case

study or a subject matter. The candidates are required to analyze, discuss and

find alternative solutions and select a sound solution. In group discussion,

Candidates analytical ability, leadership skills, interpersonal relationship,

communication skills, values and attitude are identified.

x. Test Different types of tests are conducted by organizations to test thecandidates suitability on the job. These include psychological test to know the

behaviour pattern, aptitude tests to know the mental and physical aptitude

such as mechanical, clerical, manipulative capacity etc. Intelligent Quotient

(IQ) =

, Emotional Quotient (EQ) =

, skill tests

to know the artistic ability, mechanical aptitude tests to know the mechanical


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ability, psychomotor tests to know the motor skills, clerical aptitude tests to

know computation and comprehension abilities, achievement tests to test the

job knowledge and work experiences, situational tests to test the ability of

candidate to face the situation, interest tests to know the likes and dislikes of

the type of jobs, officers, organizations etc. are all conducted by various

institutions based on the strategies adopted for selection. Personality tests are

conducted to know the candidates value system, his emotional reactions,

maturity and characteristic mood.

xi. Multidimensional testing The need for multi-skills is being felt by most ofthe companies consequent upon globalization, competitiveness, and the

consequent customer centered strategies.

xii. Final Interview Different types of interviews are conducted like informal,formal, planned, patterned, non-directive, depth, stress interview and panel

interview. Informal interview can be conducted at any place by any person to

secure the basic information which is non-job related. Unstructured interviews

are with freedom given to the candidates express his background,

expectations, interest etc. Structured interview is a formal interview where all

the formalities and procedures are met like fixing the value, time, opening and

closing the interview and informing the candidate about the job characteristics

etc. Formal interview is conducted as a panel interview where panels of

experts interview each candidate and judges his/her performance individually

and prepares scores. The questions for the interview is preplanned and

structured, and experts are allotted different areas and questions to be asked.

In Depth interview candidate would be examined extensively in core areas of

job skills and knowledge. It is usually conducted for specialized jobs.

xiii. Decision Making Interview After the candidates are examined by theexperts in the core areas of the job, the head of the department/section head

interviews the candidate once again, mostly through informal discussion.

Interest of the candidate in the job, reaction/adaptability to working

conditions, career planning, promotional opportunities, work adjustment,

allotment etc. and the salary, allowances, benefits etc. are also discussed and

finalized.

Training and DevelopmentTraining improves changes, and moulds, the employees skills, knowledge,

behaviour and aptitude and attitude towards the requirements of the job and the

organization. Thus training bridges the differences between job requirements and

employees present specifications. It includes:

a) Identification of training needs of the individuals and the company.b) Developing suitable training programmes.


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c) Helping and advising line management in the conduct of trainingprogrammes.

d) Imparting of requisite job skills and knowledge to employees.e) Evaluating the effectiveness of training programmes.

Management Development: It is the process of designing and conducting suitable

executive development programmes so as to develop the managerial and human

relations skill of employees. It includes:

a) Identification of the areas in which management development is needed.b) Conducting development programmes.c) Motivating the executives.d) Designing special development programme for promotione) Using the services of specialists, and/or utilization of the institutional

executive development programmes.

f) Evaluating the effectiveness of executive development programmes.Difference between Training and Development

Area Training Development

Content Technical skills and

knowledge

Managerial and behavioural skills and

knowledge

Purpose Specific job related Conceptual and general knowledge

Duration Short-term Long term

For whom Mostly technical and non-

managerial personnel

Mostly for managerial personnel.

Benefits of training

1. Improved productivity and profitability2. Improved job knowledge and skills3. Improves morale of the workforce4. Employees identify the organizational goals5. Helps to create a better corporate image6. Improves relationship between boss and subordinate7. Helps to prepare the guidelines for work8. Aids in understanding the organizational policies9. Helps in effective decision making and problem solving10.Provides information for future requirements11.Aids in developing leadership skills, motivation, loyalty, and better attitudes12.Improves labour management relations13.Reduces outside consultation costs by utilizing the internal consulting14.Aids in improving organizational communication.

Need for Training


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1. To match the employee specifications with the job requirements andorganizational needs

2. Organizational viability and the transformation process.3. Technological advances4. Organizational complexity5. Human Relations6. Change in the job assignment.

Training Objectives

i. To prepare the employee to meet the present and changing requirementsof the job and organization.

ii. To prevent obsolescence.iii. To impart knowledge and skills to the new entrants.iv. To prepare employees for higher level tasks.v. To assist employees to function more effectively.vi. To build up second line of competent officers.vii. To ensure smooth and efficient working of a department.viii. To ensure economical output of required quality.ix. To improve individual and collective morale, a sense of responsibility,

cooperative attitudes and good relationships.

Career planning and development: it is the planning of ones career and

implementation of career plans by means of education, training, job search and

acquisition of work experiences. It includes internal and external mobility.

Assessment of Training Needs

Training needs are identified on the basis of organizational analysis, job analysis

and manpower analysis. Training programmes, training methods and course

content are to be planned on the basis of training needs. Training needs are

those aspects necessary to perform the job in an organization in which employee

is lacking attitude/aptitude, knowledge and skill.

Training Pitfalls

a)Attempting to teach too quicklyb) Trying to teach too muchc) Viewing all trainees as the samed) Giving very little time to practicee) Offering very little to the trainee in the form of encouragement, praise or

reward

Learning Principles: The Philosophy of Training

Training efforts are invariably based on certain learning oriented guidelines:


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a) Modeling: It is simply copying someone else's behaviour. (like showing thevideotapes of desired behaviour while at work)

b) Motivation: For learning to happen, it is important to motivate the traineefirst.

c) Reinforcement: If behaviour is rewarded, it probably will be repeated.Positive reinforcement consists of rewarding desired behaviours.

d) Feedback: Feedback helps an employee find where he stands. People learnbest if reinforcement is given as soon as possible.

e) Spaced practice: Learning takes place easily if the practice sessions arespread over a period of time.

f) Whole learning:Employees learn better if the job information is given as anentire logical process.

g)Active practice: Learning is enhanced when trainees are provided ampleopportunities to repeat the task.

h) Relevance: training should be as real as possible so that trainees cansuccessfully transfer the new knowledge to their jobs

i) Environment: employees learn faster in comfortable environmentsAreas of Training

j) Knowledgek) Technical skillsl) Social skillsm)Techniques

Types of training

a) Skills training: here certain basic skills like reading, writing, computing,speaking, listening, problem solving etc are taught.

b) Refresher training: here the focus is on short term courses that would helpemployees learn about latest developments in their respective fields.

c) Cross functional training: this helps employees perform operations in areasother than their assigned job.

d) Team training: this is concerned with how team members shouldcommunicate with each other, how they should cooperate to get ahead, how

they should handle conflicting situations, how to find their way using collective

wisdom etc.

e) Creativity training: this helps employees to think unconventionally, breakthe rules, take risks, go out of the box and develop unexpected solutions.

f) Diversity training: it aims to create better cross cultural sensitivity with theaim of fostering more harmonious and fruitful working relationships among a

firm's employees.


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g) Literacy training: this is generally offered to those employees with weakreading, writing or arithmetic skills.

Training methods

Number of programmes are available for training. Some of these are new and

modern training methods. Basically, training methods are classified into on-the job

and off-the job training.

On-the-Job Training Methods Off-the Job Training Methods

Job rotation Vestibule training

Coaching Role playing

Job instruction Lecture MethodsTraining through step-by step Conference or discussion

Committee assignments Programmed instruction

On-the Job training methods (OJT) OJT are most commonly used method.

Individual is placed on a regular job and taught skills necessary to perform the job

effectively. Job rotation is giving the trainee different experiences and knowledge

into job assignments. Usually different departments are given to know the aptitude

of the candidate. Coachingis the training given by a supervisor under whom the

trainee is placed. Regular feedback given by the supervisor makes the trainee

understand the job and the responsibility.J

ob instruction is also known as thetraining through step by step. Each step in performing a certain task is explained in

this method. Committees assignments are specific tasks are given to a group of

individuals to solve an organizational problem. Team work and interpersonal

relationship is being given importance in this type of training.

Off- the Job Training Under this method, trainee is separated from the job

situation and his/her attention is focused on learning the material related to the

future job performance. Information Technology and Multi-media technology are

used extensively in this type of training. Vestibule trainingis actual work

situation is simulated in a class room. Materials, files, equipment or machinery is

used in the class room for training.Role playingis defined as a method of human

interaction that involves realistic behaviour in imaginary situations. Lecture

method is the traditional and most commonly used off-the job training method as it

can take more number of employees. To be effective the trainer should motivate the

employees and initiate participation. Conferences or discussion is usually used

for clerical, supervisory personnel, and professional employees. Ideas, facts,

Objectives

of Training

InnovativeProblemSolving

Regular


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examples, tests assumptions and conclusions are used for better performance.

Programmed instructions is a new method and popular in recent years. The

subject matter to be learned is presented in a series of carefully planned sequential

units. These units are arranged from simple to more complex levels of instruction.

The trainee goes through these units by answering questions or filling the blanks.

Motivation

Motivation as a concept was recognised in 1912 by Frederick Taylor, but it wasnt

fully considered until about 1950-60; when it was discussed by many early theorists

in relation to behavioural responses. Many Psychologists have described motivation

as a need, desire or want which serves to drive behaviour towards a desired goal

(Kleinginna & Kleinginna, 1981).Furthermore, Franken (1994) classifiedmotivation as the arousal, direction and persistence of behaviour. It is apparent

that there are no simple clear definitions of motivation. Historically motivation as a

concept has its roots in the traditional view of pay rewards as incentives or external

rewards. However, with the advent of non-financial incentives such as more work

benefits there seems to be a shift towards internal rewards as sources of motivation.

Throughout this time period various theories of motivation have been developed

such as Maslows hierarchy of needs (1954), Herzbergs two-factor model (1959),

Lockes goal setting theory (1968), Warrs vitamin theory (1987), Hackman &

Oldhams Job Characteristic Model (1979), Reinforcement Theory Skinner (1953),

Adams Equity Theory (1963) and Vrooms Expectancy Theory (1964). A large

number of theories of motivation have been developed, varying in usefulness and

applicability to modern day organisations.

Theory X and Theory Y - McGregor

McGregor (1960) classified two of the three common-sense approaches as theory X

and theory Y, and suggested that they are adopted by different individuals or the

same person at different times (McGregor 1960, Argyris 1964, Schein 1988). The

term theory is not used in reference to theoretical frameworks but as a descriptive

term to explain the different approaches. It has been suggested that theory X can be

used to describe individuals who cannot be trusted and are lazy and unreliable. It is

said that such individuals are motivated with the use of financial rewards and

threats of punishment. Thus, without these rewards individuals seek their own

goals, which are often in conflict with the goals of the organisation (McGregor 1960).Theory Y is the opposite of theory X where the individual seeks self-development

and works in line with the goals of the organisation. Theory Z, the social approach,

is where an individuals behaviour is determined by social interactions at work; the

person feels a sense of belonging at work and is motivated by such feelings more

than financial rewards.

Maslows Theory


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We each have a hierarchy of needs that ranges from "lower" to "higher." As lower

needs are fulfilled there is a tendency for other, higher needs to emerge. Daniels.

Maslows theory maintains that a person does not feel a higher need until the needs

of the current level have been satisfied. Maslow's basic needs are as follows:

1) Basic Human Needs food, air, water, clothes, sex etc.2) Safety and Security Protection, Stability, Pain avoidance, Routine/order.3) Social Needs Love and Belongings Affection, acceptance, inclusion.4) Esteem Needs Self Respect, SelfEsteem, and Respected by others.5) Self- Actualization Achieve full potential, Fulfillment.

Herzbergs Theory

Herzbergs (1959) Two-Factor model consists of a two part process where factors are

both external and internal to the person. The internal factors are termed

motivational needs and the external factors are hygiene needs. Motivational

needs accounted for peoples achievement, recognition, advancement, responsibility,

the work itself, and growth possibilities. Hygiene needs accounted for peoples pay,

status, job security, working conditions, company policy, peer relations, and

supervision.

Lockes Goal setting theory

Lockes (1968) goal setting theory can be classified as achievement motivation and

can be further segmented into mastery goals, (also known as learning goals)

which, involves mastering new knowledge or skills; performance goals (also known

as ego-involvement goals) which involves performing well on basic standards with

minimal effort; and social goals, which looks at relationships among people. In

well-structured environments students with mastery goals tend to perform better

than students with either performance or social goals. However, in real world

situations high levels of achievement is dependent on maintaining all three goals

(Ames 1992). Thus it is suggested that people are motivated to either avoid failure

or achieve success (Dweck 1986) It has also been suggested that people who set

strong, hard goals are more likely to achieve them (Doyle 2003).

Hackman & Oldham (H O Theory)

Hackman & Oldham (1979) believed that job characteristics consisting of five

elements which are skill variety, task identity, task significance, autonomy

and feedback, influences individuals motivation and psychological well-being,

resulting in positive work outcomes. If an individuals job possesses all these

characteristics then that person will have an internal desire to perform well i.e. be

intrinsically motivated. This theory seems to be more adaptable to the work

environment but it is not without its limitations as not all jobs may fit into such a

rigid structure of having five job characteristics. There are other factors also to be


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taken into account, such as individual differences which would be addressed later

on within the discussion section of this report. Having discussed the intrinsic

theories of motivation an attempt is now made to explore theories of motivation

which adopt a more extrinsic approach.

Reinforcement theory establishes the fundamental and basic ideas of the

influences of consequences on behaviour. The ideas of this theory were clearly

identified within Skinners (1953) experimental work involving the influence of

reward on behaviour. To add further clarification to this theory it simply means

that people would probably work harder if they know it would result in positive

outcomes. It works on the premises that rewards increase behaviour while

punishment decreases behaviour.

Equity Theory (Adams, 1963) focuses on the individual and how that person

strives to motivate themselves through feelings of equity or inequity i.e. whether or

not the situation is fair or unfair. Furthermore, it was proposed that negative

feelings in an individual can motivate that person to do something to rectify their

situation. Huseman, Hatfield & Miles (1987) suggested that the greater the

inequity a person feels the greater the distress felt by the individual; therefore the

distress causes the individual to work harder at restoring equity. However, such

negative feelings can also lead to a state of de-motivation.

Expectancy theory by Vroom

The basis for Vrooms (1964) expectancy theory lies in the assumption that people

expect certain actions to be able to achieve desired outcomes where the desired

outcomes are believed to be worth striving for or avoiding. Motivation is dependent

on the strength of the expectancy and the significance of the desired outcomes to the

individual. Again this theory like its predecessors assumes that all individuals

operate under the same frameworks.

Performance Management

Evaluating and analyzing the performances of all individuals in the organization

against the benchmarks set and developing individuals as per the required

standard to meet the organizational goals. Performance Evaluation is the

process of appraising employees job performance. The following are the steps

involved in measuring the performance of individual employees.


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Performance management cycle has the following steps:

1) Performance planning2) Mid-year review3) Final review and feedback4) Normalization.The planning will include:1) Selection ofKRAs (Key Result Areas)2) Setting target and actions plans to achieve the KRAs3) Designing and allocating the responsibilities4)Assigning weight age to the responsibilities.

The issues in managing performance in Global environment

1.Culture and performance

2. Rewarding Performance

3. Virtual teams

4. Underperformers

5. Subsidiary performanceThe performance appraisal methods and common errors

appraisal methods common errors Essay appraisal. Graphic rating scale. Field review. Forced-choice rating. Critical incident appraisal. Management-by-objectives approach. Ranking methods. Assessment centers 360 degree feedback

Halo effect Bias Leniency and Strictness Central Tendency Favorable Impressions Recency

Effective Communication

Communicating effectively, either orally or in writing, depends on understanding

the business client and responding to each situation from the clients point of view.

In todays competitive business environment improving communication with

clientele promotes business success.


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Verbal Communication

Verbal communication is the use of language or words in oral or written. Any

language can be used for the business communication; however, internationally

accepted business communication language is English. Choosing words words are

the smallest units of messages. Give importance to words, an effective word is one

that your received will understand and that will elicit the response you want. Use a

Dictionary and a Thesaurus the two most valuable resources for the business

communicator.

Six Principles for selecting words for effective messages

1. Choose understandable words2. Use specific, precise words3. Choose strong words4. Emphasize positive words5. Avoid overused words6. Avoid obsolete words.

Developing written business messages

The process for developing written business messages consists of the following three

steps:

1. Planning2. Drafting3. Finalizing

1. Planningis the step taken before putting words. Analyze the situationby asking the crucial questions like, who will receive the message? What

are the constraints? What does the receiver need to know? What action do

I want my receiver to take?

2. Draftingthe message is using the mental or recorded notes draft thesentences. Apply the principles of communication and use the view point

of the receiver and focus on the content. Writers Block is the difficulty

in putting the thoughts into words.

3. Finalize the message involves proofreading the document to determinewhere it needs to be revised and edited. Both are similar processes with

different objectives. Revising focus on content; editing focus on mechanics.

Non-Verbal Communication

Its not always just what you say. Its also how you say it. Nonverbal

communication is usually understood as the process of communication through

sending and receiving wordless messages.


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Such messages can be communicated through gesture; body language or posture;

facial expression and eye contact; object communication such as clothing, hairstyles

or even architecture; symbols and info graphics; prosodic features of speech such as

intonation and stress and other paralinguistic features of speech such as voice

quality, emotion and speaking style.

Body language

Clusters of body parts are used to understand body language / gestures. Your eyes,

your posture, your overall body language, even your appearance at the time the

communication is exchanged, and the voice in which you offer the exchange makes

an impact on the effectiveness of communication.

In verbal communication, an active dialogue is engaged with the use of words. At

the same time, however, non-verbal communication takes place, relying on

nonverbal cues, such as gestures, eye contact, facial expressions, even clothing andpersonal space.

Nonverbal cues are very powerful, making it crucial that you pay attention to your

actions, as well as the nonverbal cues of those around you. If, during your meeting,

participants begin to doodle or chat amongst themselves, they are no longer paying

attention to you: Your message has become boring or your delivery is no longer

engaging.

Once again, you need to be mindful of cultural differences when using or

interpreting nonverbal cues. For instance, the handshake that is so widely accepted

in Western cultures as a greeting or confirmation of a business deal is not accepted

in other cultures, and can cause confusion.

While eye contact, facial expressions, posture, gestures, clothing and space are

obvious nonverbal communication cues, others strongly influence interpretation of

messages, including how the message is delivered. This means paying close

attention to your tone of voice, even your voices overall loudness and its pitch.

Be mindful of your own nonverbal cues, as well as the nonverbal cues of those

around you. Keep your messages short and concise. This means preparing in

advance whenever possible. And for the impromptu meeting, it means thinking

before you speak.

Object Communication:

The most common form of object communication is clothing. The types of clothing

that people wear are often used to determine their personality. Good examples of


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clothing as object communication are school uniforms, military uniforms, dressing

by doctors, nurses, bishops etc.

Haptics: Touches that can be defined as communication include: Handshakes,

holding hands, kissing (cheek, lips, hand), back slap, high five, shoulder pat,

brushing arm, etc.

Each of these give off nonverbal messages as to the touching person's intentions/

feelings. They also cause positive or negative feelings in the receiver.

Chronemics: The way we perceive time, structure our time and react to time is a

powerful communication tool. Punctuality, willingness to wait etc.

Oculesics: People use their eyes to indicate their interest. This can be done

through eye contact. For example, when a professor is giving a lecture, a student

may communicate disinterest by reading a magazine instead of looking at the

professor's presentation.

Handshakes

Three steps to a proper handshake:-

i. As you're approaching someone, extend your right arm when you're aboutthree feet away. Slightly angle your arm across your chest, with your thumb

pointing up.

ii. Lock hands, thumb joint to thumb joint. Then, firmly clasp the other person'shand without any bone crushing or macho posturing.

iii. Pump the other person's hand two to three times and let goPhone tips

a)Answer in a prompt and courteous mannerb) Treat everyone with respectc) Keep a calm but neutral tone of voiced) Keep a relaxed body posturee) Inform callers we want to connect them to the resource/person they need.f) Empathize with the callerg) Focus on the problemh) Do not blindly transfer callersi) Answering Your Phone

j) Always identify yourself when you answer the phone: "This is (Name)."k) Speak in a pleasant tone of voice - the caller will appreciate it.l) Learn to listen actively and listen to others without interrupting.m)When you are out of the office or away from your desk for more than a few

minutes, forward your phone to voicemail.

n) Use the hold button when leaving a line so that the caller does notaccidentally overhear conversations being held nearby.


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o) If the caller has reached a wrong number, be courteous. Be businesslike andbe effective.

p) Speaking to the point and ending conversations within a reasonable timeframe without being rude or rushing the callers.

Taking Messages

a) When taking messages be sure to ask for: (1) Caller's name (asking the callerfor correct spelling if required) (2) Caller's phone number and/or extension

(including area code)

b) Repeat the message to the caller.c) Be sure to fill in the date, time, and your initials.d) Place the message slip in the called party's inbox or in a conspicuous place in

their office, such as their chair.

Making Calls

When you call someone and they answer the phone, do not say "Who am I speaking

with?" without first identifying yourself: "This is (name). To whom am I speaking?"

Always know and state the purpose of the communication.

When you reach a wrong number, don't argue with the person who answered the

call or keep them on the line. Say: "I'm sorry, I must have the wrong number. Please

excuse the interruption." And then hang up.

If you told a person you would call at a certain time, call them as you promised. If

you need to delay the conversation, call to postpone it, but do not make the other

person wait around for your call.

If you don't leave a number/message for someone to call you back, don't become

angry if they are not available when you call again.

How to End Conversations Gracefully

There are several ways that you can end a long phone call without making up a

story or sounding rude:

Leave the conversation open.

Promise to finish your discussion at another time.

Tell the person how much you've enjoyed speaking with him/her.

Be honest and polite.

Communicate powerfully by Email

Considerations before writing an Email Messagea) What is the purpose of the communication?b) Is the information personal, official or confidential?c) Is there an alternative communication method?d) Is the use of this communication tool an avoidance mechanism?


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For further reading

1. P. Subha Rao, Human Resource Management, Himalaya PublishingHouse, Chapter 1, 2, 5, 6, and 7

2. Krizan, Merrier, Logan, Williams, Effective Business Communication,Cengage Learning, Chapter 4, 5, 13, 15, and 17.

3. Rai and Rai, Managerial Communication, Himalaya Publishing House,Chapter 2, 4, 9, 11, 16 and 24.

4. Stephen P. Robbins, Organizational Behaviour, 13thEdition, PearsonHouse, Chapter 06, and 07.

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