Human Resource Management

Definition
• The process of hiring and developing employees so that they become more
valuable to the organization.
• Human Resource Management includes conducting job analyses, Planning
personal needs, recruiting the right people for the job, orienting and training,
managing salaries, providing benefits and incentives, evaluating performance,
resolving disputes, and communicating with all employees at all levels.
• Examples of core qualities of HR management are extensive knowledge of the
industry, leadership, and effective negotiation skills.

• Formerly called personnel management.

Human Resource Management…….
is the process of recruitment, selection of employee,
providing proper orientation and induction, providing
proper training and the developing skills, assessment of
employee (performance of appraisal), providing proper
compensation and benefits, motivating, maintaining
proper relations with labour and with trade unions,
maintaining employees safety, welfare and health by
complying with labour laws of concern state or country.
• Why name human resource management?

• Human: refer to the skilled workforce in the organisation.

• Resource: refer to limited availability.
• Management: refer to maximise or proper utilisation and make best
use of limited resource.
• Altogether, human resource management is the process of proper
and maximise utilisation of available limited skilled workforce. The
core purpose of the human resource management is to make efficient
use of existing human resource in the organisation.

• Every organisations' desire is to have skilled and competent people to

make their organisation more effective than their competitors.
Humans are very important assets for the organisation rather than
land and buildings, without employees ( humans ) no activity in
the organisation can be done. Machines are meant to produce more
goods with good quality but they should get operated by the human
only.
Mr. N.R. Narayana Murthy, Chairman, Infosys Ltd……..

“ You must treat your employees with respect and dignity

because in the most automated factory in the world, you need the
power of human mind. That is what brings in innovation.
If you want high quality minds to work for you, then you must protect
the respect and dignity. "
John F. Kennedy…..

“Our progress as a nation can be no swifter than our

progress in education.
The human mind is our fundamental resource.”
• For any organisation to function effectively, it must have resource of men
(Human Resource), money, materials and machinery. The resources by
themselves cannot fulfil the objectives of an organisation, they need to be
collected, co-ordinated and utilised through human resources.
• The effective management of human resources is also vital. Hence, Human
Resource Management (HRM) has emerged as a major function in
organizations.
• Human Resource Management is the organizational function that deals
with issues related to people such as compensation, hiring, performance
management, organization development, safety, wellness, benefits,
employee motivation, communication, administration, and training.
The administrative discipline of hiring and developing employees so that
they become more valuable to the organization.
Human Resource management includes:
• conducting job analyses,
• planning personnel needs, and recruitment,
• selecting the right people for the job,
• orienting and training,
• determining and managing wages and salaries,
• providing benefits and incentives,
• appraising performance,
• resolving disputes,
• communicating with all employees at all levels. Formerly called personnel management.
• Maintaining awareness of and compliance with local, state and federal labour laws.
• These are also called as functions of human resource management .
Definitions:

Many great scholars had defined human

resource management in different ways and
with different words, but the core meaning
of the human resource management deals
with how to manage people or employees in
the organisation.
Edwin Flippo defines………

HRM as “planning, organizing, directing, controlling of

procurement, development, compensation, integration ,
maintenance and separation of human resources to the end
that individual, organizational and social objectives are
achieved.”
The National Institute of Personal Management…..
(NIPM) of India has defined human resources personal
management as
“that part of management which is concerned with people at
work and with their relationship within an enterprise. Its aim
is to bring together and develop into an effective organization
of the men and women who make up enterprise and having
regard for the well–being of the individuals and of working
groups, to enable them to make their best contribution to its
success”.
 Decenzo and Robbins says…….
HRM is concerned with the people dimension” in
management. Since every organization is made up of people,
acquiring their services, developing their skills, motivating
them to higher levels of performance and ensuring that they
continue to maintain their commitment to the organization is
essential to achieve organisational objectives. This is true,
regardless of the type of organization – government, business,
education, health or social action”.
• In simple words, HRM is a process of making the efficient
and effective use of human resources so that the set goals
are achieved.
• HRM can be defined as a process of procuring, developing
and maintaining competent resources in the organization so
that goals of an organization are achieved in an effective and
efficient manner. In other words HRM is an art of managing
people at work in such a manner that they give best to the
organisation.
 Role of Human Resource Management
The human resource management team suggests to the
management how to strategically manage people as business
resources. This includes managing recruiting and hiring
employees, coordinating employee benefits and suggesting
employee training and development strategies.
In this way, HR professionals are consultants, not workers in
an isolated business function; they advise managers on many
issues related to employees and how they help the
organization achieve its goals.
Main Functions of Human Resource Management
• Recruitment
The success of recruiters and employment specialists generally
is measured by the number of positions they fill and the time
it takes to fill those positions. Recruiters who work in-house --
provide recruiting and staffing services, play a key role in
developing the employer's workforce. They advertise job
postings, source candidates, screen applicants, conduct
preliminary interviews and coordinate hiring efforts with
managers responsible for making the final selection of
candidates.
• Safety
Workplace safety is an important factor. Under the
Occupational Safety and Health Act of 1970, employers have
an obligation to provide a safe working environment for
employees. One of the main functions of HR is to support
workplace safety training and maintain federally mandated
logs for workplace injury and fatality reporting. In addition, HR
safety and risk specialists often work closely with HR benefits
specialists to manage the company's workers compensation
issues.
• Employee Relations
In a unionized work environment, the employee and labour
relations functions may be combined and handled by one
specialist or be entirely separate functions managed by two HR
specialists with specific expertise in each area. Employee relations
is the HR discipline concerned with strengthening the employer-
employee relationship through measuring job satisfaction,
employee engagement and resolving workplace conflict. Labour
relations functions may include developing management response
to union organizations, negotiating, bargaining and solving labour
union contract issues.
• Compensation and Benefits
Like employee and labour relations, the compensation and
benefit functions of HR often can be handled by one HR
specialist with dual expertise. On the compensation side, the
HR functions include setting compensation structures and
evaluating competitive pay practices. A compensation and
benefits specialist also may negotiate group health coverage
rates with insurers and coordinate activities with the
retirement savings fund administrator.
• Compliance
Compliance with labour and employment laws is a critical HR
function. Noncompliance can result in workplace complaints
based on unfair employment practices, unsafe working
conditions and general dissatisfaction with working conditions
that can affect productivity and ultimately, profitability. HR
staff must be aware of federal and state employment laws
such as, the Civil Rights Act, the Fair Labour Standards Act, the
National Labour Relations Act and many other rules and
regulations.
• Training and Development
Employers must provide employees with the tools necessary for
their success which, in many cases, means giving new employees
extensive orientation training to help them transition into a new
organizational culture. Many HR departments also provide
leadership training and professional development. Leadership
training may be required of newly hired and promoted supervisors
and managers on topics such as performance management and
how to handle employee relations matters at the department
level. Professional development opportunities are for employees
looking for promotional opportunities or employees who want to
achieve personal goals such as finishing a college degree.
Programs such as tuition assistance and tuition reimbursement
programs often are within the purview of the HR training and
development area.
What is Training ?
Dale S. Beach:

Defined training as “the organized

procedure by which people learn
knowledge and skill for a definite
purpose.”
Edwin B. Flippo:

“Training is the act of increasing the

knowledge and skill of an employee for
doing a particular job”.
Importance of Training:
1. High productivity.
2. Morale Booster.
3. Better Quality of Work.
4. Cost Reduction.
5. Low accidental rate.
6. Development of Skills
7. Reduced Supervision.
Types of Training:

1. On the job Training.

2. Of the job Training.

Methods of On the Job Training:
1. Coaching.
2. Mentoring.
3. Job Rotation.
4. Job Instruction Technique.
5. Apprenticeship.
6. Committee Assignments.
Benefits of On the Training:
1. Trainee is directly trained on job.
2. It is formal time saving form of training.
3. It is most effective because trainee learn directly by
live experience on work.
4. It is less expensive.
5. Trainees are highly motivated for training.
6. Trainee learn quickly in this training.
Methods of Off the Job Training:
1. Lectures.
2. Conferences.
3. Audio Visual Techniques.
4. Vestibule Training.
5. Simulation Exercises:
a) Management games.
b) Case Study.
c) Role playing.
Benefits of Off the Job Training:
1. Trainers are usually well experienced enough to
train trainees effectively.
2. It is systematically organized to increase skills of
trainees.
3. Efficiently created programs may add lot of
value to company productivity.
FEATERES OF HRM:-
1. Development Oriented
2. Individually Oriented
3. People Oriented
4. Inter-disciplinary function
5. Pervasive force
6. Integrating mechanism
7. Continuous function
8. Action Oriented
Scope of HRM:
1. Procurement.
2. Training and development.
3. Job analysis and Job description.
4. Remuneration.
5. Welfare and Industrial relation.
6. Personal Records.
What is Recruitment ?

According to Edwin B. Flippo, “ Recruitment is the

process of searching the candidates for employment
and stimulating them to apply for jobs in the
Organization.
Importance of Recruitment:
1. Attract more candidates to apply in the
Organization.
2. Process which links employers with employees.
3. Increase the pool of candidates for job at minimum
cost.
4. Determine present and future requirements of the
organization with proper planning.
5. To provide good quality people to the organization.
Recruitment Process:
1. Identify job vacancy.
2. Prepare job description and job specification.
3. Advertising the job vacancy
4. Managing the response.
5. Short-listing.
6. Arrange interviews.
7. Conducting interview and decision making.
Sources of Recruitment:
Internal External
1. Promotion 1. Advertisements
2. Transfer 2. Campus Recruitment
3. Upgrading 3. Placement agencies
4. Demotion 4. Outsourcing/Consultancies
5. Retired employees 5. Employment exchanges
6. Retrenched employees 6. Labor Contractors
7. Employee referrals 7. Unsolicited Applicants
8. Dependents and relatives 8. Online recruitment through of
deceased employees. websites by conducting walk
in interviews
What is Training ?
Dale S. Beach:

Defined training as “the organized

procedure by which people learn
knowledge and skill for a definite
purpose.”
Edwin B. Flippo:

“Training is the act of increasing the

knowledge and skill of an employee for
doing a particular job”.
Importance of Training:
1. High productivity.
2. Morale Booster.
3. Better Quality of Work.
4. Cost Reduction.
5. Low accidental rate.
6. Development of Skills
7. Reduced Supervision.
Types of Training:

1. On the job Training.

2. Of the job Training.

Methods of On the Job Training:
1. Coaching.
2. Mentoring.
3. Job Rotation.
4. Job Instruction Technique.
5. Apprenticeship.
6. Committee Assignments.
Benefits of On the Training:
1. Trainee is directly trained on job.
2. It is formal time saving form of training.
3. It is most effective because trainee learn directly by
live experience on work.
4. It is less expensive.
5. Trainees are highly motivated for training.
6. Trainee learn quickly in this training.
Methods of Off the Job Training:
1. Lectures.
2. Conferences.
3. Audio Visual Techniques.
4. Vestibule Training.
5. Simulation Exercises:
a) Management games.
b) Case Study.
c) Role playing.
Benefits of Off the Job Training:
1. Trainers are usually well experienced enough to
train trainees effectively.
2. It is systematically organized to increase skills of
trainees.
3. Efficiently created programs may add lot of
value to company productivity.
HUMAN RESOURCE MANAGEMENT ( H R M
)
Definition 1 – Integration
“HRM is a series of integrated decisions that form the
employment relationships; their quality contributes to the
ability of the organizations and the employees to achieve
their objectives.”
 Definition 2 – Influencing
“HRM is concerned with the people dimensions in
management. Since every organization is made up of
people, acquiring their services, developing their skills,
motivating them to higher levels of performance and
ensuring that they continue to maintain their commitment
to the organization are essential to achieve organizational
objectives. This is true, regardless of the type of the
organization – government, business, education, health,
recreational, or social action.”
 Definition 3 – Applicability
“HRM planning, organizing, directing and
controlling of the procurement, development,
compensation, integration, maintenance and
separation of human resources to the end that
individual, organizational and social
objectives are accomplished.”
 MEANING OF HRM
HRM is management function that helps managers
to recruit, select, train and develop members for an
organization. Obviously HRM is concerned with the
people’s dimensions in organizations. HRM refers to
set of programs, functions, and activities designed
and carried out.
 Core elements of HRM

1. People:
Organizations mean people. It is the people who staff and manage
organizations.
2. Management:
HRM involves application of management functions
and principles for acquisitioning, developing,
maintaining and remunerating employees in
organizations.
3. Integration & Consistency:
Decisions regarding people must be integrated and
consistent.
4. Influence:
Decisions must influence the effectiveness of
organization resulting into betterment of services to
customers in the form of high quality products
supplied at reasonable cost.
5. Applicability:

HRM principles are applicable to business as well as

non-business organizations too, such as education,
health, recreation etc.
 OBJECTIVES OF HRM:

1. Societal Objectives:
To be ethically and socially responsible to the needs
and challenges of the society while minimizing the
negative impact of such demands upon the
organization.
2. Organizational Objectives:

To recognize the role of HRM in bringing about

organizational effectiveness. HRM only means to
achieve and assist the organization with its primary
objectives.
3. Functional Objectives:

To maintain department’s contribution and level of

services at a level appropriate to the organization’s
needs.
4. Personal Objectives:

To assist employees in achieving their personal goals, so

that these goals enhance the individual’s contribution to
the organization. This is necessary to maintain employee
performance and satisfaction for the purpose of
maintaining, retaining and motivating the employees in
the organization.
 SCOPE OF HRM

From Entry to the Exit of an employee in the

organization
Scope of HRM can be described based on the
following activities of HRM.
 HRM Activities

1. HR Planning
2. Job Analysis
3. Job Design
4. Recruitment & Selection
5. Orientation & Placement
 6. Training & Development
7. Performance Appraisals
8. Job Evaluation
9. Employee and Executive Remuneration
10. Motivation
 11. Communication
12. Welfare
13. Safety & Health
14. Industrial Relations
Based on these activities we can summarize
the scope of HRM into 7 different
categories.
 Categories of Scope/Functions of
HRM

1. Introduction to HRM
2. Employee Hiring
3. Employee and Executive Remuneration
4. Employee Motivation
5. Employee Maintenance
6. Industrial Relations
7. Prospects of HRM
The HR maintenance system as the
dependent variable consists on preventive
actions, medical care actions, welfare
services, retirement actions, and insurance
actions.
Prospects of HRM

Excellent employment opportunities exist for HR aspirants.

Every company whether big or small has an HR
department, a special team that hires the best talent for
them. They play a vital role from the point you appear for
the interview till you take exit from the company. They are
involved in recruitment, placement, induction, training and
development, promotion, performance appraisal,
employee’s overall welfare and at last employees exit. Their
work is all about workforce management and that’s the
reason they are in great demand in private firms and in
multinational companies.
Jobs for HRM can be found in Hotels, Airlines, Food and Beverage
Industries, Construction and Engineering companies, Export –
Import Houses, IT firms, Medical and Healthcare, hospitals, Banks,
NGOs, Media, educational institutes and also in governmental
organisations.

These days’ universities and colleges offer placement assistance to

their students so you can grab a good job offer through your college
also. For this you must do a thorough research about the college and
the training programme they offer. In addition to that you must
know their placement record in the past few years and also try and
find out what all companies visit the campus for placement drives.
Another area of job opportunity for HRM is HR
consultants, are also in great demand they basically
outsource people from one country to another as per the job
requirements and also act as career guides to students who
are not sure about the career prospects ahead.

Also one can work in consultancies which provide

placement opportunities to people looking for jobs in
MNCs and private sector firms.
Industrial relations

The relations between management and workers in

industry.
ROLE OF HRM
1. Advisory Role:
HRM advises management on the solutions
to any problems affecting people, personnel
policies and procedures.
a) Personnel Policies: Organization Structure, Social
Responsibility, Employment Terms & Conditions,
Compensation, Career & Promotion, Training &
Development and Industrial Relations.

b) Personnel Procedures: Relating to manpower planning

procedures, recruitment and selection procedures, and
employment procedures, training procedures, management
development procedures, performance appraisal procedures,
compensation procedures, industrial relations procedures
and health and safety procedures.
2. Functional Role:
The personnel function interprets and
helps to communicate personnel
policies. It provides guidance to
managers, which will ensure that
agreed policies are implemented.
3. Service Role:
Personnel function provides services that
need to be carried out by full time specialists.
These services constitute the main activities
carried out by personnel departments and
involve the implementation of the policies
and procedures described above.
Role of HR Managers (Today)
1. Humanitarian Role: Reminding moral
and ethical obligations to employees
2. Counselor: Consultations to employees
about marital, health, mental, physical and
career problems.
3. Mediator: Playing the role of a
peacemaker during disputes, conflicts
between individuals and groups and
management.
4. Spokesman: To represent of the
company because he has better overall
picture of his company’s operations.

5. Problem Solver: Solving problems of

overall human resource management
and long-term organizational planning.
6. Change Agent:
Introducing and implementing institutional
changes and installing organizational
development programs.

7. Management of Manpower
Resources:
Broadly concerned with leadership both in
the group and individual relationships and
labor-management relations.
Role of HR Managers (Future)
1. Protection and enhancement of human and non-
human resources
2. Finding the best way of using people to accomplish
organizational goals
3. Improve organizational performance
4. Integration of techniques of information
technology with the human resources
5. Utilizing behavioral scientists in the best way for
his people
6. Meeting challenges of increasing organizational
effectiveness
7. Managing diverse workforce
 FUNCTIONS OF HRM ALONG WITH OBJECTIVES

HRM Objectives Supporting HRM Functions

Social Objectives (3) Legal Compliance
Benefits
Union Management Relations
Organizational Objectives (7) Human Resource Planning
Employee Relations
Recruitment & Selection
Training & Development
Performance Appraisals
Placement & Orientation
Employee Assessment
Functional Objectives (3) Performance Appraisals
Placement & Orientation
Employee Assessment

Personal Objectives (5) Training & Development

Performance Appraisals
Placement & Orientation
Compensation
Employee Assessment
Managerial Functions of HRM

1. Planning: Plan and research about wage trends, labor market conditions, union demands and other personnel
benefits. Forecasting manpower needs etc.
2. Organizing: Organizing manpower and material resources by creating authorities and responsibilities for the
achievement of organizational goals and objectives.
3. Staffing: Recruitment & Selection
4. Directing: Issuance of orders and instructions, providing guidance and motivation of employees to follow the path
laid-down.
5. Controlling: Regulating personnel activities and policies according to plans. Observations and comparisons of
deviations.
Operational Functions of HRM
1. Procurement: Planning, Recruitment and Selection, Induction and
Placement
2. Development: Training, Development, Career planning and
counseling.
3. Compensation: Wage and Salary determination and administration
4. Integration: Integration of human resources with organization.
5. Maintenance: Sustaining and improving working conditions,
retentions, employee communication
6. Separations: Managing separations caused by resignations,
terminations, lay offs, death, medical sickness etc.
CHALLENGES OF MODERN MANAGEMENT
1. Globalization: -
Growing internationalization of business has its
impact on HRM in terms of problems of
unfamiliar laws, languages, practices,
competitions, attitudes, management styles,
work ethics and more. HR managers have a
challenge to deal with more functions, more
heterogeneous functions and more involvement
in employee’s personal life.
2. Corporate Re-organizations:-
Reorganization relates to mergers and
acquisitions, joint ventures, take over, internal
restructuring of organizations. In these
situations, it is difficult to imagine circumstances
that pose a greater challenge for HRM than
reorganizations itself. It is a challenge to manage
employees’ anxiety, uncertainties, insecurities
and fears during these dynamic trends.
3. New Organizational forms: -
The basic challenge to HRM comes from the changing character
of competitions. The competition is not between individual firms
but between constellations of firm. Major companies are
operating through a complex web of strategic alliances, forgings
with local suppliers, etc. These relationships give birth to
completely new forms of organizational structure, which highly
depend upon a regular exchange of people and information. The
challenge for HRM is to cope with the implications of these
newly networked relations more and more, in place of more
comfortable hierarchical relationships that existed within the
organizations for ages in the past.
4. Changing Demographics of Workforce: -
Changes in workforce are largely reflected by
dual career couples, large chunk of young blood
between age old superannuating employees,
working mothers, more educated and aware
workers etc. These dynamic workforces have
their own implications for HR managers and
from HRM point of view is a true challenge to
handle.
5. Changed employee expectations: -
With the changes in workforce demographics, employee expectations and
attitudes have also transformed. Traditional allurements like job security,
house, and remunerations are not much attractive today, rather employees
are demanding empowerment and equality with management. Hence it is
a challenge for HRM to redesign the profile of workers, and discover new
methods of hiring, training, remunerating and motivating employees New
Industrial Relations Approach. In today’s dynamic world, even unions have
understood that strikes and militancy have lost their relevance and unions
are greatly affected by it. The trade union membership has fallen
drastically worldwide and the future of labor movement is in danger. The
challenge before HRM is to adopt a proactive industrial relations approach
which should enable HR specialist to look into challenges unfolding in the
future and to be prepared to convert them into opportunities.
6. Renewed People Focus: -

The need of today’s world and business is the people’s

approach. The structure, strategy, systems approach
which worked in post war era is no more relevant in
today’s economic environment which is characterized
by over capacities and intense competition. The
challenge of HR manager is to focus on people and
make them justifiable and sustainable.
7. Managing the Managers: -
Managers are unique tribe in any society, they believe they
are class apart. They demand decision-making, bossism, and
operational freedom. However in the post liberalization era,
freedom given to managers is grossly misused to get rid of
talented and hard working juniors. The challenge of HRM is
how to manage this tribe? How to make them realize that
the freedom given to them is to enable them make quick
decisions in the interest of the organization and not to resort
to witch-hunting.
8. Weaker Society interests: -
Another challenge for HRM is to protect the interest of
weaker sections of society. The dramatic increase of women
workers, minorities and other backward communities in the
workforce has resulted in the need for organizations to
reexamine their policies, practices and values. In the name of
global competition, productivity and quality the interests of
the society around should not be sacrificed. It is a challenge
of today’s HR managers to see that these weaker sections are
neither denied their rightful jobs nor are discriminated
against while in service.
9. Contribution to the success of organizations: -

The biggest challenge to an HR manager is to make all

employees contribute to the success of the
organization in an ethical and socially responsible
way. Because society’s well being to a large extent
depends on its organizations.
STRATEGIC HUMAN RESOURCE MANAGEMENT
• Strategy:
“Strategy is a way of doing something. It includes the
formulation of goals and set of action plans for
accomplishment of that goal.”

• Strategic Management:
“A Process of formulating, implementing and evaluating
business strategies to achieve organizational objectives is
called Strategic Management”
• Definition of Strategic Management: -
“Strategic Management is that set of managerial decisions
and actions that determine the long-term performance of a
corporation. It includes environmental scanning, strategy
formulation, strategy implementation , evaluation and
control.”

The study of strategic management therefore emphasizes

monitoring and evaluating environmental opportunities and
threats in the light of a corporation’s strengths and
weaknesses.
• Steps in Strategic Management:

1. Environmental Scanning: Analyze the Opportunities and Threats in

External Environment
2. Strategy Formulation: Formulate Strategies to match Strengths and
Weaknesses. It can be done at corporate level, Business Unit Level and
Functional Level.
3. Strategy Implementation: Implement the Strategies
4. Evaluation & Control: Ensure the organizational objectives are met.
 IMPORTANCE & BENEFITS OF STRATEGIC MANAGEMENT

1. Allows identification, prioritization and exploration of

opportunities.
2. Provides an objective view of management problems.
3. Represents framework for improved co-ordination and control
4. Minimizes the effects of adverse conditions and changes
5. Allows major decisions to better support established objectives
6. Allows more effective allocation of time and resources
7. Allows fewer resources and lesser time devoted to
correcting ad hoc decisions
8. Creates framework for internal communication
9. Helps to integrate the individual behaviors
10. Provides basis for the clarification of responsibilities
11. Encourages forward thinking
12. Encourages favorable attitude towards change.
ROLE OF HRM IN STRATEGIC MANAGEMENT

1. Role in Strategy Formulation:

HRM is in a unique position to supply competitive
intelligence that may be useful in strategy formulation.
Details regarding advanced incentive plans used by
competitors, opinion survey data from employees, elicit
information about customer complaints, information about
pending legislation etc. can be provided by HRM. Unique HR
capabilities serve as a driving force in strategy formulation.
2. Role in Strategy Implementation:

HRM supplies the company with a competent and willing

workforce for executing strategies. It is important to
remember that linking strategy and HRM effectively requires
more than selection from a series of practice choices. The
challenge is to develop a configuration of HR practice choices
that help implement the organization’s strategy and enhance
its competitiveness.
TRAINING & DEVELOPMENT
Definition of Training & Development:

Improve performance

“Training & Development is an attempt to improve current

or future employee performance by increasing an
employee’s ability to perform through learning, usually by
changing the employee’s attitude or increasing his or her
skills and knowledge.”
MEANING OF TRAINING & DEVELOPMENT: -

The need for Training and Development is determined by the

employee’s performance deficiency, computed as follows.

Training & Development Need = Standard Performance – Actual

Performance
 Distinction between Training and Education

Training Education
Application oriented Theoretical Orientation
Job experience Classroom learning
Specific Task in mind Covers general concepts
Narrow Perspective Has Broad Perspective
Training is Job Specific Education is no bar
 Training:

Training refers to the process of imparting specific skills. An employee

undergoing training is presumed to have had some formal education.
No training program is complete without an element of education.
Hence we can say that Training is offered to operatives.
Education:
It is a theoretical learning in classrooms. The purpose of education is to
teach theoretical concepts and develop a sense of reasoning and
judgment. That any training and development program must contain an
element of education is well understood by HR Specialists. Any such
program has university professors as resource persons to enlighten
participants about theoretical knowledge of the topics proposed to
discuss. In fact organizations depute or encourage employees to do
courses on part time basis. CEOs are known to attend refresher courses
conducted by business schools. The education is more important for
managers and executives rather than low cadre workers. Anyways
education is common to all employees, their grades notwithstanding.
 Development:
Development means those learning opportunities designed to help
employees to grow. Development is not primarily skills oriented.
Instead it provides the general knowledge and attitudes, which will be
helpful to employers in higher positions. Efforts towards development
often depend on personal drive and ambition. Development activities
such as those supplied by management development programs are
generally voluntary in nature. Development provides knowledge about
business environment, management principles and techniques, human
relations, specific industry analysis and the like is useful for better
management of a company.
 Objectives of (MDP) Management Development Programs
OR Advantages of Development

1. Making them
Self-starters
Committed
Motivated
Result oriented
Sensitive to environment
Understand use of power
2. Creating self awareness
3. Develop inspiring leadership styles
4. Instill zest for excellence
5. Teach them about effective communication
6. To subordinate their functional loyalties to the interests of the
organization
Difference between Training and Development

Training Development
Training is skill focused Development is creating learning abilities
Training is presumed to have a formal Development is not education dependent
education
Training needs depend upon lack or Development depends on personal drive
deficiency in skills and ambition
Trainings are generally need based Development is voluntary
Training is a narrower concept focused on Development is a broader concept focused
job related skills on personality development
Training may not include development Development includes training wherever
necessary
Training is aimed at improving job related Development aims at overall personal
efficiency and performance effectiveness including job efficiencies
 What are the Training Inputs?
• Skills
• Education
• Development
• Ethics
• Problem Solving Skills
• Decision Making
• Attitudinal Changes
Importance of Training & Development
• Helps remove performance deficiencies in employees
• Greater stability, flexibility and capacity for growth in an
organization
• Accidents, scraps and damages to machinery can be avoided
• Serves as effective source of recruitment
• It is an investment in HR with a promise of better returns in
future
• Reduces dissatisfaction, absenteeism, complaints and
turnover of employees
 Need of Training
1. Individual level

• Diagnosis of present problems and future challenges

• Improve individual performance or fix up performance deficiency
• Improve skills or knowledge or any other problem
• To anticipate future skill-needs and prepare employee to handle more
challenging tasks
• To prepare for possible job transfers
 Group level

• To face any change in organization strategy at group levels

• When new products and services are launched
• To avoid scraps and accident rates
 Identification of Training Needs (Methods)
Individual Training Needs Identification

• Performance Appraisals
• Interviews
• Questionnaires
• Attitude Surveys
• Training Progress Feedback
• Work Sampling
• Rating Scales
 Group Level Training Needs Identification
• Organizational Goals and Objectives
• Personnel / Skills Inventories
• Organizational Climate Indices
• Efficiency Indices
• Exit Interviews
• MBO / Work Planning Systems
• Quality Circles
• Customer Satisfaction Survey
• Analysis of Current and Anticipated Changes
 Benefits of Training Needs Identification

• Trainers can be informed about the broader needs in advance

• Trainers Perception Gaps can be reduced between employees and
their supervisors Trainers can design course inputs closer to the
specific needs of the participants
• Diagnosis of causes of performance deficiencies can be done
 Methods of Training

On the Job Trainings:

These methods are generally applied on the workplace where
employees are actually working.
 Advantages of On-the-Job Training:

• It is directly in the context of job

• It is often informal
• It is most effective because it is learning by experience
• It is least expensive
• Trainees are highly motivated
• It is free from artificial classroom situations
Disadvantages of On-the-Job Training:

• Trainer may not be experienced enough to train

• It is not systematically organized
• Poorly conducted programs may create safety hazards
 On the Job Training Methods
1. Job Rotation:
In this method, usually employees are put on different jobs turn by turn
where they learn all sorts of jobs of various departments. The objective
is to give a comprehensive awareness about the jobs of different
departments. Advantage – employee gets to know how his own and
other departments also function. Interdepartmental coordination can
be improved, instills team spirit. Disadvantage – It may become too
much for an employee to learn. It is not focused on employees own job
responsibilities. Employees basic talents may remain under utilized.
2. Job Coaching:
An experienced employee can give a verbal presentation to explain the
nitty-gritty’s of the job.

3. Job Instruction:
It may consist an instruction or directions to perform a particular task
or a function. It may be in the form of orders or steps to perform a task.
4. Apprenticeships:
Generally fresh graduates are put under the experienced employee to
learn the functions of job.

5. Internships and Assistantships:

An intern or an assistants are recruited to perform a specific time-
bound jobs or projects during their education. It may consist a part of
their educational courses.