MODULE 2

HUMAN RESOURCE DEVELOPMENT

Development of human resources is essential for any organisation that would like to be
dynamic and growth-oriented. Unlike other resources, human resources have rather
unlimited potential capabilities. The potential can be used only by creating a climate that
can continuously identify, bring to surface, nurture and use the capabilities of
people. Human Resource Development (HRD) system aims at creating such a climate. A
number of HRD techniques have been developed in recent years to perform the above task
based on certain principles. This unit provides an understanding of the concept of HRD
system, related mechanisms and the changing boundaries of HRD.

HRD concept was first introduced by Leonard Nadler in 1969 in a conference in US. “He
defined HRD as those learning experience which are organized, for a specific time, and
designed to bring about the possibility of behavioral change”.

Human resource development in the organisation context is a process by which the

employees of an organisation are helped, in a continuous and planned way to:

1. Acquire or sharpen capabilities required to perform various functions associated
with their present or expected future roles;
2. Develop their general capabilities as individuals and discover and exploit their
own inner potentials for their own and/or organisational development purposes;
and
3. Develop an organisational culture in which supervisor-subordinate relationships,
teamwork and collaboration among sub-units are strong and contribute to the
professional well being, motivation and pride of employees.

Manpower Planning
Manpower Planning which is also called as Human Resource Planning consists of putting
right number of people, right kind of people at the right place, right time, doing the right
things for which they are suited for the achievement of goals of the organization.

Human Resource Planning has got an important place in the arena of industrialization.
Human Resource Planning has to be a systems approach and is carried out in a set
procedure. The procedure is as follows:

1. Analysing the current manpower inventory

2. Making future manpower forecasts
 3. Developing employment programmes
4. Design training programmes

Steps in Manpower Planning

1. Analysing the current manpower inventory- Before a manager makes forecast of

future manpower, the current manpower status has to be analysed. For this the
following things have to be noted-
 Type of organization
 Number of departments
 Number and quantity of such departments
 Employees in these work units

Once these factors are registered by a manager, he goes for the future
forecasting.

2. Making future manpower forecasts- Once the factors affecting the future
manpower forecasts are known, planning can be done for the future manpower
requirements in several work units.

The Manpower forecasting techniques commonly employed by the organizations

are as follows:

i. Expert Forecasts: This includes informal decisions, formal expert surveys

and Delphi technique.
ii. Trend Analysis: Manpower needs can be projected through extrapolation
(projecting past trends), indexation (using base year as basis), and statistical
analysis (central tendency measure).
iii. Work Load Analysis: It is dependent upon the nature of work load in a
department, in a branch or in a division.
iv. Work Force Analysis: Whenever production and time period has to be
analysed, due allowances have to be made for getting net manpower
requirements.
v. Other methods: Several Mathematical models, with the aid of computers are
used to forecast manpower needs, like budget and planning analysis,
regression, new venture analysis.
3. Developing employment programmes- Once the current inventory is compared
with future forecasts, the employment programmes can be framed and developed
accordingly, which will include recruitment, selection procedures and placement
plans.
 4. Design training programmes- These will be based upon extent of diversification,
expansion plans, development programmes,etc. Training programmes depend upon
the extent of improvement in technology and advancement to take place. It is also
done to improve upon the skills, capabilities, knowledge of the workers.

Importance of Manpower Planning

1. Key to managerial functions- The four managerial functions, i.e., planning,

organizing, directing and controlling are based upon the manpower. Human
resources help in the implementation of all these managerial activities. Therefore,
staffing becomes a key to all managerial functions.
2. Efficient utilization- Efficient management of personnels becomes an important
function in the industrialization world of today. Setting of large scale enterprises
require management of large scale manpower. It can be effectively done through
staffing function.
3. Motivation- Staffing function not only includes putting right men on right job, but it
also comprises of motivational programmes, i.e., incentive plans to be framed for
further participation and employment of employees in a concern. Therefore, all
types of incentive plans becomes an integral part of staffing function.
4. Better human relations- A concern can stabilize itself if human relations develop
and are strong. Human relations become strong trough effective control, clear
communication, effective supervision and leadership in a concern. Staffing function
also looks after training and development of the work force which leads to co -
operation and better human relations.
5. Higher productivity- Productivity level increases when resources are utilized in
best possible manner. Higher productivity is a result of minimum wastage of time,
money, efforts and energies. This is possible through the staffing and it's related
activities ( Performance appraisal, training and development, remuneration)

Need of Manpower Planning

Manpower Planning is a two-phased process because manpower planning not only

analyses the current human resources but also makes manpower forecasts and thereby
draw employment programmes. Manpower Planning is advantageous to firm in following
manner:

1. Shortages and surpluses can be identified so that quick action can be taken
wherever required.
2. All the recruitment and selection programmes are based on manpower planning.
 3. It also helps to reduce the labour cost as excess staff can be identified and thereby
overstaffing can be avoided.
4. It also helps to identify the available talents in a concern and accordingly training
programmes can be chalked out to develop those talents.
5. It helps in growth and diversification of business. Through manpower planning,
human resources can be readily available and they can be utilized in best manner.
6. It helps the organization to realize the importance of manpower management which
ultimately helps in the stability of a concern.

Job Analysis
Job analysis is the process of thoroughly understanding a particular job role r equirement
along with the key skills, roles, responsibilities, workplace processes, organizational
hierarchy etc. after conducting a research to produce a relevant job description. Job
analysis involves collecting job related information and highlighting the basic requirements
needed by an employee to successfully fulfill the role & profile in order to achieve the goals
& objectives set by the company. The analysis also gives an overview on the physical,
emotional & related human qualities required to execute the job successfully.

Job analysis is defined as a as “a systematic procedure for gathering, documenting, and

analyzing information about the content, context, and requirements of the job ”.

The purpose of job analysis is to establish what a job entails, including the required
knowledge, skills and abilities as well as job duties and responsibilities and the conditions
of the job. Job analysis is essential documentation and a fundamental resource for human
resources management actions including recruiting, compensation, training and
assessment and performance evaluation. A job analysis is the foundation of human
resources management. A valid job analysis provides data that should be used to develop
effective recruitment, qualification and assessment, selection, performance management,
and career development methodologies.

Job analysis serves four primary purposes:

1. Establish and document job-related competencies

2. Identify the job-relatedness of essential tasks and competencies
3. Establish the legal basis for assessment and selection procedures/decisions
4. Establish the basis for determining relative worth
Job Analysis Process
There is a streamlined process in getting complete information related to a job. It is
important to have full information related to a particular job, which would only help to get
the right person for the right job. The job analysis process can be summarized as below:
1. Identify
Identify the need of having a job analysis for a particular goal the company is looking for to
achieve through this role. There should be proper identification done to see if an existing
role can do the activities or a new role is actually required to fulfil the goal.
2. Study
Study the best possible methods to extract maximum information related to the job,
responsibilities etc. There has to be research and analysis to done what kind of role is
expected in the details.
3. Understand
Understanding the key parameters to be captured i.e. job requirements, context,
deliverables. Also there is a need to understand the evaluation criteria for such a role once
hiring is done.
What would be various KPIs, objectives on which a person would be evaluated in this
particular role.
4. Design
Actual data collection from within the organization & through competitor structure. It
covers aspects related to organization structure, reporting, job related activities, roles to be
undertaken etc.
5. Verify
Verification and preparing the final job analysis document covering all aspects related to
the profile. It should be shared and discussed with all the key people with which the new
job role would interface with. There can be gaps which can be addressed at this stage.
6. Create
Creating a job description and job specification. The final steps would include creating
these 2 documents and should be reviewed before being made part of the recruitment and
selection process.

Job Analysis Methods

The process of collecting information for job analysis has to be very thorough and
completed with accurate research. Some methods which can be used to collect job related
information is given below:
1. Observation
Attributes like workplace environment, physical activities, techniques & skills required etc.
can all be covered by simply observing existing or similar jobs
2. Interview
Interviewing employees helps in understanding the challenges, difficulties, emotional
requirements, complications, deliverables etc.
3. Questionnaire
Questionnaires helps in obtaining large volumes of data and this data can be quantified &
analyzed to understand the job requirements in a much better way

Advantages of Job Analysis

Some of the benefits of having a job analysis are mentioned below:
1. It helps HR managers to have a systematic plan for recruitment and selection
2. Job analysis clearly defines the description & specificatio n, which highlights the job
requirements, skills, incentives etc.
3. It becomes easier for employees to understand their goals & objectives
4. HR managers can use job analysis information as a benchmark to evaluate
performance of employees and perform their appraisal / promotions accordingly
5. It helps in maintaining the organizational structure by having information related to
reporting manager, job position, title, location etc.

Limitations of Job Analysis

1. The actual experience, difficulties, job related queries etc. cannot be covered despite
a thorough research

2. Job analysis cannot forecast the future requirements of a job in case of a major
change in industry norms, company policies etc.
Recruitment and Selection

Recruitment is a process that hiring managers use to promote open jobs. It involves using
different processes to attract candidates for a desirable role. A hiring manager might use
tactics such as providing job descriptions, advertising, setting recruitment criteria and
creating a job listing to promote the job to qualified candidates. The primary purpose of
recruitment is to attract qualified employees that meet the company's standards. When a
company has an open job, the hiring manager works with the marketing and other teams to
attract potential candidates. Often, recruitment is the primary step in hiring employees and
typically includes:
  Advertising the open job position
 Writing a job description
 Sending emails and messages to qualified candidates
 Determining the job requirements
 Responding to queries about the job
 Reviewing resumes and cover letters of potential applications
 Shortlisting potential candidates for interview

In short, recruitment is a broad shortlisting that helps in reducing a candidate pool size
before the next stage.

Selection is finding and choosing candidates who are ideal for the job. Typically, this phase
comes after the recruitment process. While the recruitment process gathers eligible
candidates for a job, the selection determines which candidates are ideal for the job. The
hiring manager starts with a shortlist of qualified candidates. During the selection process,
hiring managers use various methods to assess their abilities and skills to ensure they hire
the right individual. Some actions that might occur during the selection process are:

 Administering aptitude tests depending on the job requirement

 Interviewing potential and qualified candidates
 Performing background checks
 Screening candidates based on their resume and cover letter
 Performing background checks

Difference between Recruitment and Selection:

Basis Recruitment Selection

The process of searching for The process of identifying and

appropriate employees and choosing the best person out of a
Meaning
encouraging them to apply for number of prospective candidates
jobs is known as Recruitment. for a job is known as Selection.

It is a positive process as it It is a negative process as it

Nature stimulates people to apply for a eliminates more people than
job. selecting them.
Basis Recruitment Selection

It aims to create a pool of It aims to ensure that competent

Purpose
applicants. candidate is selected for a job.

It is a simple process as there are It is a complex process as there are

Process
not many steps or hurdles. many steps or hurdles.

It starts before the selection It starts after the recruitment

Stage
process. process.

It is the second step towards the

It is the first step towards the
Step hiring process and comes after
hiring process.
recruitment.

Economical/
It is an economical process. It is an expensive process.
Expensive

Steps Involved in the Recruitment and Selection Process

The recruitment and selection process in Human Resource Management is a multi-step

journey that encompasses sourcing, screening, evaluating, and integrating new hires into
the company. Understanding the difference between recruitment and selection and each
step involved in the process is vital for organisations to ensure a successful outcome.

The recruitment and selection process in HRM, which involves various methods, is crucial
in attracting top talent. Understanding the key steps in the selection process can help HR
managers navigate the full recruitment life cycle and achieve the best outcomes.

I. Job analysis and Designing Job Descriptions

Job analysis and job design are considered the first and most important steps in the
recruitment and selection process.

Job analysis involves the examination of the job duties, responsibilities, and requirements
to determine the skills and knowledge needed to perform the job effectively. This
information is used to craft an effective job description and a written document outlining
the position's key responsibilities, requirements, and expectations.

Job descriptions are important tools for organisations in the recruitment and selection
process as they provide a clear understanding of the position and its requirements.

This information is used to attract and screen potential candidates, to ensure that they
meet the minimum qualifications for the position. Additionally, job descriptions are useful
for establishing performance expectations and evaluating employee performance once they
are on the job.

Job analysis and description help HR managers make informed decisions about
compensation, employee training, and compliance with labour laws. A clear and detailed
job description can also help attract and retain top talent by accurately communicating the
role's expectations and responsibilities.

According to the Job Analysis and Job Description Survey Report by the Society for Human
Resource Management (SHRM), when companies do thorough job analyses and write
detailed job descriptions, they tend to get more qualified applicants. The survey showed
that companies with clear job descriptions get 20% more applicants on average, and these
applicants are often better qualified for the job. The survey also found that having a
detailed job description helps bring in more applicants and cuts down on the time and
money needed to find and hire the right person.

II. Advertising vacancies

Once the Job Descriptions are fully developed, the next step is to advertise vacancies. This
step involves the promotion of job openings to potential candidates to attract a large talent
pool of qualified applicants. Organisations use various methods to advertise vacancies,
including job boards, print media ads, professional networks, and social media to reach the
right audience and generate interest in the position. Before advertising the job vacancy, it is
essential to understand the job requirements, responsibilities, and expectations clearly.

And with iSmartRecruit, you can create and inform job seekers about the newest openings
over several platforms, including Social media platforms.
Here are some quick and full-proof tips for advertising vacancies:

1. Choose the Advertising Channel

Choose where to post the job ad, whether it's online, in print, or both. It's important to
remember that the way you advertise should match the audience you're trying to reach and
the position you're trying to fill. For instance, a company might choose to post an ad for a
technical job on a professional networking site and a job for customer service on a job
board or in local newspapers.

2. Write the Job Ad

Make sure to include the job title, location, salary, and a brief description of the job
responsibilities. Highlight the most important requirements and qualifications.

3. Use Keywords

Keywords are specific terms or phrases used to identify relevant information in a search,
such as in a job search where keywords can help match a candidate's skills and experience
with relevant opportunities. Use keywords in the job ad that have relevance to the job to
increase its visibility in online searches.

4. Add an Eye-Catching Title

A title that accurately reflects the job is catchy, and is attention-grabbing and will attract
more applicants.

5. Include a Call-to-Action

Encourage applicants to apply by including a call-to-action such as "Apply Now" or "Submit

Your Resume."

6. Determine the Closing Date

Specify the closing date for applications and make sure to stick to it.

7. Review and Edit

Before publishing the job ad, review it and make any necessary edits.

Once the job ad is created and published, it is crucial to monitor and review the responses
received and move forward with the selection process.
III. Screening Applicants

Screening applicants is the third step in the hiring and selection process. It means looking
at the applicant's skills, experience, and qualifications to see if they meet the basic
requirements for the job. This step is critical because it makes sure that only the best
candidates are called in for interviews.

The screening process typically follows these processes:

1. Resume and application review

The first step in the screening process is to review the candidate's resume and application
to assess their qualifications and experience. This includes checking for typos and errors
and verifying their education and work history. Online Resume Management
Software imports and parses thousands of resumes faster and detects the key information
about the candidates.

2. Phone screening

The next step is to conduct a phone screening with the candidate. This is an opportunity to
ask the candidate more detailed questions about their qualifications and experience and to
gauge their communication skills.

3. Initial in-person or video interview

The next step is an in-person or video interview with the candidate, where more in-depth
questions are asked about their experience, qualifications, and suitability for the role.

4. Reference and background checks

Before making a final decision, it's important to check the candidate's references and
perform a pre-employment background check to verify their work history and criminal
record.

5. Final interview

The final step in the screening process is a final in-person or video interview. The candidate
can ask questions about the company and the role and discuss their qualifications and fit
for the position.
The screening process aims to reduce the number of applicants to a number that can be
managed easily. This will make it easier to do more in-depth evaluations later on in the
hiring process. It is vital to ensure the employer spends time and money evaluating only
the best and most qualified candidates. This will make it easier to do more in -depth
evaluations later on in the hiring process.

IV. Making Hiring Decisions as an HR

Making hiring decisions is a crucial step in the recruitment and selection process, as
it determines which candidates will be offered the job. The steps involved in making hiring
decisions typically include the following:

1. Review applications: Review the applications and resumes of the candidates who made
it to the interview phase. Make a note of any relevant education, experience, and skills.

2. Evaluate applicant's fit: Evaluate the candidate's fit with the company culture, values,
and work environment. Consider whether the candidates would be a good fit with the
current team and whether they can do the work well with the other employees.

3. Assess qualifications: Assess the candidates' qualifications and experience to

determine if they meet the requirements for the position. Consider their education,
certifications, and relevant work experience.

4. Consider interview feedback: Consider feedback from the interviewers about the
candidates' interview performance. Evaluate whether the candidate demonstrated good
communication skills and whether they were able to answer questions effectively.

5. Consider references: Consider feedback from the candidates' references to better

understand the candidate's work ethic, skills, and experience.

6. Make a decision: Based on the information gathered during the recruitment and
selection process, decide who to hire. Consider the candidates' qualifications, skills, and fit
with the company culture when making the decision.

7. Communicate the decision: Communicate the decision to the selected candidate and
inform the other applicants about the outcome of the selection process.

V. Onboarding the New Employees

The onboarding process is a very critical part of recruitment, as it can determine employee
retention and loyalty. According to the Aberdeen Group, when compared to companies
without an onboarding program, those with one have a 54% higher rate of keeping new
hires. The report also showed that companies with a good employee onboarding
process have more engaged and productive employees.

Some common steps in a great onboarding process include:

1. Introduction to the team: Introduce new employees to their team and give them a tour
of the office to familiarise them with the environment.

2. Review of company policies and procedures: This includes reviewing the company's
code of conduct, safety policies, and procedures.

3. Job orientation and training: New employees are provided with job-specific training
and orientation to help them understand their roles and responsibilities.

4. Equipment and technology set-up: New hires are provided with the necessary
equipment and technology to perform their job effectively.

5. Review of benefits and perks: New employees are given a review of the company's
benefits and perks, including health insurance, 401(k) plans, and paid time off.

6. Performance goals and expectations: New employees are given an overview of the
company's performance goals and expectations and encouraged to discuss any questions or
concerns they may have.

7. Ongoing support and feedback: Onboarding does not end after the first week, and
ongoing support and feedback are provided to new hires to help them succeed in their role.

VI. Post-hire Evaluation

Post-hire evaluation is an important part of the recruitment and selection process because
it helps companies figure out how good their hiring decisions are. The post-hire
evaluation's primary goal is to determine if the new employee is living up to the
expectations set during the hiring process and if they are helping the organisation reach its
goals and objectives.

Most of the time, post-hire evaluations happen after a new employee has been on the job
for a few months. They may include performance reviews, setting goals, keeping track of
progress, getting feedback, and coaching. Both the employee's manager and HR are
involved.
Steps in Selection Process

The following are the important Steps in the Process of Selection:

1. Preliminary Screening: Preliminary screening facilitates the manager of the

organization to shortlist the candidates and eliminate those who are not suitable for the
job based on the details mentioned in the application form. Preliminary interviews help
avoid the unfit for reasons that did not emerge in the application forms. In this interview
round, the candidates are questioned by the interviewer on account of their
qualifications, experiences, etc.
2. Selection test: This type of test is a method that is either a written test or an exercise
that tries to find out some particular skill or ability of the employees either based on their
mental ability, personality, physical capacity, or mindset.
Some of the important selection tests that are performed for the selection of employees
are as follows:
 Intelligence test: It refers to the measurement of one’s intelligence based on memory,
reasoning, etc. It is an indicator of one’s ability to make decisions and judgments.
 Aptitude test: This test is taken to check if the candidate has the talent to learn new
skills or the capability to grasp those skills that are needed to perform the specified job.
 Personality test: This test of the employee is conducted to understand the personal
characteristics of the candidates, such as their values, mindset, patience, beliefs, etc.
 Trade test: It is a test to determine a candidate’s actual talents, i.e., they are given work
according to their specified jobs. These tests are based on the employee’s level of
knowledge and competency in the professional areas.
 Interest test: Every individual has their own set of interests or particular fields that
they would like to work in. The interest test helps determine the candidate’s area of
interest and the kind of job that would suit him. This ensures that the employees work
with greater enthusiasm and efficiency.

3. Employment interview: An interview is a formal conversation between two people,

i.e., the candidate and the interviewer. It is conducted to test the individual’s capability.
The interviewer’s job is to question the candidate and obtain as much information as
possible, and that of the interviewee is to provide the information with confidence.
Though in the present time, the contrary is also seen.
4. Reference and Background Checks: Personal details such as names, addresses, and
telephone numbers of the references may also be requested to be provided to attain extra
information about the candidates. The references can be anyone who knows the
applicant, teachers, professors, ex-employers, etc.
5. Selection Decision: The candidates who qualify for the tests, interview rounds, and
reference checks ultimately get selected for the final decision. In this process, the opinion
of concerned the manager makes the concluding decision as to who will be selected
among those final candidates qualifying for that particular job.
6. Medical Examination: After the selection decision and before the job offer is provided,
the candidate goes through a medical examination to prove that they are physically and
mentally fit for that job. Only then the candidate is given the job offer.
7. Job Offer: The step following all the other steps is receiving the job offer. The job offer
is provided to only those who have passed all the prior obstacles. The job offer is
provided through a letter of appointment, which approves the candidate’s acceptance.
The letter of appointment normally contains the date on which the candidate has to
report on duty. The letter also prescribes a specified time at which the candidate is
supposed to report.
8. Contract of Employment: When the job offer is provided and accepted by the
candidate, both the employer and the candidate are required to put into effect certain
documents, like an attestation form. Such a form contains certain details that are verified
and attested by the candidate. It is a document that may be beneficial in the future. It is
also important to prepare a contract of employment. The information necessary to be
written in the contract of employment may differ according to the level of the job. Some
of the details that the contract include are as follows- Job Title, Duties, Responsibilities,
Date of joining of the employee, rates of pay, allowances, the disciplinary procedure, work
rules, working hours, leave rules, illness, grievance procedure, termination of
employment, etc.

Induction training (orientation or onboarding)

Induction training implies providing training to the newly recruited employees in the
organization so that they will act as a productive asset for them.
These training programmes are conducted by the companies according to the complexity
level of the work allotted to the employees and the size of the business.

Three Main Types of Induction Training

Generally, induction training is divided into three main types according to the time it is
conducted and who conducts it.

 General Induction Program: This marks the welcoming stage of candidates once an
organization makes an offer of employment to them. The human resources department
usually carries out this induction training program for new employees. The sole
objective of a general induction program is to make the new hires feel at home.
 Specific Orientation Program: Ordinarily conducted by departments, this program
imparts operational knowledge specific to a position and location of employment. As a
part of this program, employees are trained in the following areas:
o Work they are responsible for

o People have to work with

o Current status of the work
o Expected Result
o Work records they must maintain
o Operating rules & procedures
 Follow-Up Induction Program: The purpose of this induction training program is to find
out whether employees have been reasonably integrated into your organization and
they are satisfied with the job.
In case, the employee faces any difficulties or has any confusion, trainers provide
counseling and guidance to remove the problems so that they don’t hamper their day-to-
day work.

Follow-up inductions take place after about one or two months from the time of
appointment.

The role an induction training software plays during these different programs is great. You
can easily create topic-specific courses using an induction training course software
according to the stage of induction training and share them with learners right away.

Procedure of Induction Training

There is no specific model provided for the induction training. However, every organization
has their own procedure of conducting induction programmes according to their
requirements. In general, the following points are considered in the procedure of such
training:

 Warm Welcome
The foremost step of this training must be to provide a warm welcome to their newly
recruited employees, i.e., providing them starters at the time of reporting and try to make
them comfortable with the company’s environment.

 Fulfilling Administrative Requirements

Thereafter, after providing proper refreshment to the employees the next step should be
the completion of the formalities of the administration related work, i.e., providing
information about the probationary period, leaves, policies and procedures of the company,
etc.

 Conducting departmental Orientation

Departmental orientation implies introducing the company’s departments and their

functions to the employee. As the new employees are obviously concerned about the work
they have to do, the team leader with whom they have to work with. It also includes
providing the geographical layout of their workplace and other areas such as canteen,
restroom, etc. Such departmental orientation is performed by the immediate supervisor.

 Follow-up Interview

At last, after all formalities are fulfilled a follow-up interview is conducted after few weeks
of the joining. Such an interview is conducted by the personnel specialist or by the
supervisor. The objective behind conducting such a follow-up interview is to identify:

1. Whether the employee is satisfied with the organization or not?

2. Whether supervisor is satisfied with the employees?

If any dissatisfaction was found from anyone’s side it must be clarified by explanation and
discussions.

Objectives of Induction Training

Following are some of the relevant objectives of conducting induction training by the
organizations:

1. The foremost objective of providing induction training to the new employees is to

make them familiar with the organization’s working environment and to smoothen
the earlier stages when the employee feels strange and unfamiliar.
2. It is conducted for informing the new employees about the job requirements.
 3. Induction programme explains all the terms and conditions of the job to the
employee for which they have been appointed for.
4. Creating a favourable attitude towards the organization in the minds of the new
employees is an important objective of conducting induction programmes.
5. The most important objective is to get effective output from the new employees by
guiding them properly.

Problems Related to Induction Training

Following are some of the barriers that affect the successful induction training programme:

1. The individual assigned to provide training to the employees himself is not well
trained.
2. Employee faces a problem of fulfilling the huge number of formalities, such as filling
various forms.
3. Newly recruited employees get overwhelmed with a vast amount of information in a
short period of time which create a burden on them.
4. As employee spent a very short time on each job, it may develop the wrong
perception in their mind about the job.
5. Sometimes employees face a problem in differentiating between HR broad
orientation and their own department’s narrow orientation.
6. When employees are asked to perform challenging tasks at their initial level of
joining the chances of getting fail increases which demoralizes the employees and
affects their commitment level towards the organization.

Employee Training and Development

Employee training and development refers to the continued efforts of a company to boost
the performance of its employees. Companies aim to train and develop employees by using
an array of educational methods and programs. Employee training and development can
help employees become better at their jobs and overcome performance gaps that are based
on lack of knowledge or skills. This can help organizations and teams be more productive
and obtain improved business outcomes, leading to a competitive advantage over other
companies. Training can help organizations be more innovative and agile in responding to
change and can help with necessary upskilling and reskilling to help organizations ensure
that their labor force meets their current needs. Employee training and development also
can help with succession planning by helping to identify high-performing employees and
then assisting those employees with the development of the knowledge and skills they
need to advance into more senior roles.
According to Flippo, Training is the act of increasing the knowledge and skills of an
employee for doing the job in a better way. Learning is the major outcome of
training. As defined by Wayne F Cascio, Training consists of planned programme
with an aim to improve performance at the individual, group, and /or organizational
levels. Improved performance, will in turn, reflects that there have been measurable
changes in knowledge, skills attitude, and/or social behavior.

Benefits to the employee

 Targeted upskilling, reducing the effort needed to do the same job

 Acquiring skills that can be useful even after one leaves the company
 Increased compensation as a result of promotions via regular training
 Nurturing of leadership potential, opening up new career possibilities
 Bridging educational gaps, particularly or those without a college degree

Benefits to the employer

 Increased productivity per employee, boosting revenue margins

 Transferable knowledge leads to a snowballing effect where peers can
teach peers, making the process more cost-effective and collaborative
 Fewer accidents in the workplace, lowering penalties and fines
 Easier implementation of new tools as employees are trained on digital
literacy

Training Methods
There are several methods of training. These are mainly categorized into two groups: On -
the-Job and Off-the-Job methods. On-the-Job methods are generally the methods that are
applied to the workplace during the working of the employee. It means learning while
working. Off-the-Job methods refer to the methods that are used away from the
workplace. It means learning before working.
On-the-Job Methods

Following are the On-The-Job methods:

 Apprenticeship Programs: Apprenticeship programs place the trainee under the
guidance of well-trained personnel. These programs are designed to obtain skills and
knowledge of higher levels. Such programs are necessary for people entering skilled
jobs, like, plumbers, electricians, etc. These apprentices are trainees who enter into
these programs and invest some time working under the guidance of a professional or
a trainer. The trainees are required to spend a specified time here where both fast and
slow learners are trained together. The slow learners may be provided with additional
training.
 Coaching: In this method, the trainer who is known as the coach guides and instructs
the trainee. The coach or the trainer sets the required goals with a mutual discussion,
advises on how to achieve those goals, analyzes the trainees’ progress from time to
time, and suggests changes necessary in the attitude and performance. The trainee
works under the senior manager and the manager takes full responsibility for the
employees’ training. The training is done to take the place of the senior manager so
that he can be freed from some of his duties. This is also a chance for the trainee to
learn about his job and the working of the organization.
 Internship Training: Internship training is a cooperation of educational institutions
and business firms. These trainings are generally a joint program. The candidates who
 are selected continue to pursue their studies regularly and also work in a factory or
office to gain the practical knowledge and skills required for a job.
 Job Rotation: Job rotation involves shifting trainees from one job to another or from
one department to another. This allows the trainee to gain a better understanding of
the working of the organization and all its parts. The rotation enables the trainee to
indulge in all kinds of operations from different departments, and also allows them to
enhance their knowledge and skills. This is also beneficial for the trainees, as they get
to interact with other employees, which creates cooperation among different
departments. Such training of employees makes it easier for the organization at the
time of promotions, replacements, or transfers.

Off-the-Job Methods

Following are the Off-the-Job methods:

 Class Room Lectures or Conferences: The lecture or conference method is generally

used for conveying specific information, rules, procedures, or methods. The use of
audio-visual means makes a formal classroom presentation more interesting alon g
with increasing the memory and proving an instrument for clearing difficulties or
doubts.
 Films: Films supply information and show a definite display of skills that are not
easily represented by other techniques. The use of films together with conferenc e
discussion is a very effective method in most cases.
 Case Study: Case studies are the actual experiences faced by the organization. They
display the events that the managers have faced in real life. The trainees study these
cases and analyze them sincerely to find out the problems and their causes, come up
with possible solutions, select the best solution and at last, implement it.
 Computer Modelling: It encourages the work environment by developing a computer
program that copies a few of the realities of the job and enables learning to take place
securely. It also allows the organization to see the mistakes that may occur and how
much they would cost. This saves the organization from making mistakes in such
situations in real life.
 Vestibule Training: In vestibule training, the employees are given training on the
equipment that they will be using during their jobs. Though the training is conducted
away from the actual workplace, the trainees are provided with a work environment
in which all the pieces of equipment, files, and materials to be used are present. This
method is usually used when the employees need to handle advanced or complex
equipment and machinery.
 Programmed Instruction: This type of method involves providing the necessary
knowledge or the standard operating procedures to the trainees in the form of a printed
 text book or with printed notes or manual or some kind of teaching machine. The
trainees are asked to go through it and then there are certain set of questions related to
the notes which are asked from the trainee. This process of breaking down all the
information into different categories making it more easy and meaningful to
understand and adapt.
 Simulation: Under this method an imaginary situation is created and trainees are
asked to act on it. For e.g., assuming the role of a front office manager solving the room
occupancy problems or creating the new strategy etc. Simulation is any artificial
environment created exactly similar to the actual situation. There are four basic
simulation techniques used for imparting training to the employees: management
games, case study, role playing, and in-basket training.
 Sensitivity Training: Sensitivity training is also known as T-group or laboratory
training. In this method trainer tries to make trainee understand about themselves and
others, this is done by developing in them social sensitivity and behavioral flexibility. It
is ability of an individual to sense what others feel and think from their own point of
view. In this method a group of trainees are settled in a comfortable environment and
are given general topic to discuss and the trainer only act as an observer, not actively
participating in the discussion, and record the behaviour of each employee. It gives
information about employees‘ his or her own personal qualities, concerns, emotional
issues, and things that he or she has in common with other members of the group. It
helps him to understand others view point, helps to adjust, develop team spirit.

Key Difference between On the Job Training and Off the Job Training

1. Location: On-the-Job Training takes place in the actual work environment, whereas
Off-the-Job Training takes place outside of the work environment, such as in a
classroom or workshop.
2. Context: On-the-Job Training focuses on specific skills and tasks related to the
employee's job, while Off-the-Job Training is more generalized and covers a wider
range of topics.
3. Hands-on experience: On-the-Job Training provides employees with hands-on
experience in their work environment, while Off-the-Job Training usually doesn't
offer the same level of hands-on experience.
4. Flexibility: On-the-Job Training is often more flexible and can be tailored to the
employee's needs, while Off-the-Job Training usually follows a set curriculum.
5. Cost: On-the-Job Training is generally less expensive than Off-the-Job Training
because it doesn't require travel, accommodation, or hiring outside trainers.
6. Timing: On-the-Job Training can be done concurrently with work, while Off-the-Job
Training may require employees to take time off work.
 7. Interaction: On-the-Job Training provides employees with more opportunities to
interact with colleagues and supervisors, while Off-the-Job Training offers more
opportunities to network with other professionals.
8. Level of expertise: On-the-Job Training is usually provided by colleagues or
supervisors with similar levels of expertise, while Off-the-Job Training may be
provided by trainers with more advanced levels of expertise.
9. Learning environment: On-the-Job Training offers a more realistic learning
environment, while Off-the-Job Training can feel artificial or disconnected from the
actual work environment.
10. Evaluation: On-the-Job Training can be evaluated more easily and accurately
because it is directly related to job performance, while Off-the-Job Training can be
more challenging to evaluate because it may not be directly related to job
performance.

Development - Meaning and Concept

Development is rich extension of training generally provided to management staff, ie it is

related to enhancing the conceptual skills of the employee, which helps individual towards
achieving maturity and self- actualization. Development as defined as a systematic
process of growth and development by which managers develop their abilities to
manage. It improves the performance of the managers by providing them the
opportunities for growth and development.

As defined by Alan Mumford – Development involves an attempt to improve managerial

effectiveness through a planned and deliberate learning process. As defined by Bernard
and group -Development involves the nature and change induced among employees
through process of education and training.

Development cultivates those skills among the employee, application of which will improve
the efficiency and effectiveness and desired outcomes of the achieving the organisational
objectives are achieved. Development is basically concerned with ensuring that an
employee‘s ability and potential are grown which is realized through the provision
of learning experiences or through self-directed (self-managed) learning. It is a
process of progressing, which enables employee to progress from a present state of
understanding and capability to a future state in which higher-level skills, knowledge and
competencies are required. In the field of human resource management, training and
development is the field which is concerned with organizational activity aiming to improve
the performance of individuals and groups in organizational settings. Thus development is
also often referred to as another tool of human resource development (HRD) as it is also
concerned with improving the performance of the organisation as a whole and as well as of
the employee with the provision of learning, development and training opportunities in
order to improve individual, team and organizational performance.

Difference between training and development

Basis Training Development

Meaning Training is a learning process in Development is an educational
which employees get an process which is concerned with
opportunity to develop skill, the overall growth of the
competency and knowledge as per employees.
the job requirement.
Aim Improves Technical & Mechanical Enhances theoretical and
Concept conceptual idea and their
implementation
Job oriented ie related with specific Career oriented ie related for
job variety of jobs
Orientation
term Short term Long term
Employee Involves Non managerial Personnel Involves managerial Personnel
Involved
Focus on Satisfy the current needs of the job, Plan to meet the future need of the
individual or organization organisation.
Objectives To improve the work performances To prepare employees for future
of the employees challenges

Performance Appraisal System

Definitions According to Flippo :―Performance Appraisal is the systematic, periodic

and an impartial rating of an employee‘s excellence in matters pertaining to his
present job and his potential for a better job.

According to Heyel:―Performance Appraisal is the process of evaluating the performance

and qualifications of the employees as per the requirements of the job for which he is
employed, for purposes of administration including placement, selecting for promotion,
providing financial rewards and other actions which require differential treatment among
the members of the group as distinguished from actions affecting all members equally.
Thus, Performance Appraisal is a formal structured and systematic method of evaluating an
employee‘s performance and behaviour so as to find out how the employee is curre ntly
performing his job and how he can perform in more effective manner in the future so that
the employee, organisation and society all get benefit of it.

Purposes of Performance Appraisal

The main purposes of performance appraisal are:-

 It help organisation to clearly inform the employees about what they want from
them.

 It helps to convert organisational mission into achievable objectives.

 It gives the insight details about the work and employees.

 It helps to provide timely feedback to employee on their performance, thereby help

employees to know where they stand in the organization in terms of their
performance

 It actually serves as the basis for promotion or job change, transfer or training of the
employee depending upon the caliber and performance of employee.

 It helps in identifying the strengths and weakness of the employees according to

which HR can formulate suitable training and development program.

 It serve as the basis for establishing the compensation – salary and wages of
employee in relation to their work

 It helps to establish a healthy and fair environment within the organization.

 Performance Appraisal helps in motivating and boosting the morale of employees.

 It provides useful information to supervisors and management about their

employees.

 It increases confidence among employees.

  It even helps to reduce overburden or overlap of job duties and ensure effective use
of employee skills.

 Performance appraisal helps to provide new ideas and information from staff.

 It helps for skills and career development of employees.

Process of Performance Appraisal

The Process of Performance Appraisal includes following steps:

1. Establishing the Performance Standards

 The performance appraisal process starts with formulating the standards or criteria,
to be used for judging the performance of employees.

 The criteria are prepared with the help of job analysis which gives the main
requirements of a job and should also be discussed with the supervisors so as to
ensure that all the relevant factors have been included.

 These criteria should be clear, objective and in writing - ie who has to do the
appraisal and how frequently appraisal is to be done should also be clearly decided.
Where the output can be measured the criteria is clear.

2. Communicating the Standards

 The performance standards which are specified in the first step need to be
communicated or informed and explained to the employees so that they get to know
what is expected from them.

3. Measuring Performance

 Once the performance standards are prepared and explained, the next stage is to
measure the actual performance of the employee. This requires selecting the right
techniques for measuring employee performance, besides that identifying the
internal and external factors which have the influence on the performance of
employee and finally collecting information on results achieved.
 4. Comparing the Actual with the Standards

 In the next stage actual performance of the employee collected in previous step is
compared with the pre decided performance standards specified in the step [Link]
comparison will reveal the difference or the deviations which may be positive or
negative. Positive deviations occur when the performance of the employee exceeds
the standards. On the other hand, negative deviations suggest that excess of
standard performance over the actual performance.

5. Discussing the Appraisal

•The result of the appraisal step 4 is communicated to and discussed with the
employees. Not only the deviations, but also the reasons behind them are also -
analyzed and discussed. Such discussion will help an employee to know his
weaknesses and strengths. Therefore, he will be motivated to improve himself.

6. Taking Corrective Actions

 In the final step through mutual discussions with employees, the steps req uired to
improve performance are identified and initiated. Training, coaching, counseling,
etc. are the examples of corrective actions that help to improve performance.

Methods/Theories of Performance Appraisal

Several methods and techniques are used for evaluating employee performance. They may
be classified into two broad categories as shown below:

Traditional methods Modern methods

 
 Unstructured Method  Behaviorally Anchored Rating Scales
 Straight Ranking (BARS)
 Paired Comparisons  Appraisal through MBO
 Man to Man Comparison  Human Resource Accounting
 Grading Method  Assessment Centre Method
 Graphic Rating Scales  360 Degree Appraisal
 Checklist Method
 Weighted Checklist Method
 Free Essay
  Critical Incidents
 Confidential Report
 Field Review Method
 Forced Choice Method
 Forced Distribution Method

A) Traditional Methods

These methods are basically the old methods of performance appraisal based on
personal qualities like knowledge, capacity, capability, judgment, initiative, attitude,
loyalty, leadership, etc. The following are the traditional methods of performance
appraisal:

1. Unstructured method of appraisal: This is a simplest method of performance

appraisal. In this method, the rater or appraiser has to give his opinions about the
employee. In this there is no clear specification on which parameters or qualities appraiser
has to judge the common points on which raters generally rate employee are qualities,
abilities, attitude, aptitude and other personal traits of the employees. This makes the
method highly subjective in nature. Beside that the major drawback of the method is the
higher chances of the biasness of the evaluator.

2. Straight Ranking Method: It is also another one of the oldest and simplest methods of
appraisal. In this technique, the evaluator gives ranks to all the employees working in the
same work unit doing the same job. Employees are ranked in the order of their merit,
starting from the best to the worst on the basis of overall performance. This method is also
highly subjective and lacks fairness in assessing the real worth of an employee. Beside that
the major drawback is that ranking of individuals having different behaviour patterns or
traits is difficult especially when there are large number of employees to be rate d, it
becomes difficult for rater.

For example: - If three receptionists A, B and C are to be ranked, the ranking may be as
follows ;
 Employee Rank

A 9

B 6

C 2

[Link] Comparison Method: In this method the employees of a group are compared
with one another at one time. It is better method of comparison than the straight ranking
method, as in this method each and every employee is compared with all others in the
group, one at a time ie one employee‘s performance is compared with that of the other
employees and a decision is made on who is more competent. Then another pair is
compared and the same process is repeated until all are compared and ranked. Comparison
is made on the basis of overall performance.

The number of comparisons to be made can be decided on the basis of the following
formula: N (N-1)/2 Where N is the number of persons to be compared.

EMPLOYEE A B C D E FINAL

RANK

A - - - + + 3

B + - - + + 2

C + + - + + 1

D - - - - + 4

E - - - - - 5
Where, plus (+) sign denotes that the employee is considered better and minus (-) sign
means worse than the other employee by this method from the above example C gets the
highest number of plus signs, therefore, his rank is the highest and so on. The major
drawback of this method is it is not suitable for large organizations as it becomes very
difficult and complex to compare large number of employees with each other.

[Link]-to-Man Comparison Method :In this method the performance of the employees is
evaluated by obtaining ratings on his performance from the evaluators, for this a team of
evaluators are involved to rate the employee. Then each rater rates employee from highest
to lowest. These ratings are than used to determine the appraisal procedure for the
particular employee. The benefit of this method is that employee is judged on the basis of
his real performance but the drawback is that rating is given by different evaluators which
may not be consistent as each evaluator has their own criteria of rating or scaling thereby
making it sometimes difficult to evaluate employee performance correctly.

4. Grading Method: Under this technique of performance evaluation, certain categories or

factors for judging the performances are determined in advance and they are carefully
defined and informed to employees. These selected and well-defined categories include:

Grade ‗A‘ for outstanding

Grade ‗B‘ for very good

Grade ‗C‘ for average

Grade ‗D‘ for poor, etc.

These grades are based on certain features such as knowledge, leadership qualities etc and
the actual performance of the employee is compared with the above grades and employees
allotted grades tells about their performance.

[Link] Rating Scales: This method is perhaps the most popular and simplest technique
for evaluating employee performance, in this the evaluator is asked to rate the employees
on the basis of job related characteristics and knowledge of job ie, an employee‘s quality
and quantity of work is judged on graphic scale. The factors which are taken into
consideration include both the personal and related to the on-the-job characteristics. The
ratings can include a scale of 1–10; excellent, average, or poor; or meets, exceeds, or
doesn‘t meet expectations, for example. A continuous scale shows a scale and the manager
puts a mark on the continuum scale that best represents the employee‘s performance.
The approach is multi-dimensional and very effective as several characteristics of the job
are considered while evaluation. But its major disadvantage is that, ratings tend to cluster
on the average side. As a supervisor often tries to rate his subordinates near to one another
to avoid any criticism from them so there actual performance never comes in picture. To
minimize this biasness, the raters‘ can be asked to give reasons to justify his rating.

[Link] Method: A checklist is basically a list of objective or descriptive statements

that describe the characteristics and performance of employees on the job ie a series of
questions is asked and the rater has to simply give yes or no to the questions, which can fall
into either the behavioral or the trait method, or both. Then the rater checks to indicated if
the behavior of an employee is positive or negative to each statement. The performance of
the employee is rated on the basis of number of positive checks . For Ex:

 Is employee regular on the job - Yes/No

 Is employee respected by his subordinates -Yes/No

 Does the employee follow the instruction properly -Yes/No and so on

Thought the checklist is the suitable method as all factors related to the job performance
are considered but the major drawback is it is very much difficult to prepare a good
checklist, beside that a separate checklist is needed for each job as statements used to
evaluate one category of job may not be suitable for other.

7. Weighted Checklist: The further extension of checklist method is the weighted checklist
as in checklist method each statement is given equal importance wherein weighted
checklist method statements or items having significant importance for organization are
given weight-age thus in this method weights are assigned to different statements to
indicate their relative importance like grooming, knowledge about the job, loyalty,
leadership etc.

8. Free Essay Method: In this method, no quantitative approach is used. It is open-ended

appraisal of employees, where the evaluator writes a short essay on the employee‘s
performance on the basis of his overall impression. The description given by the rater
should be based on facts and should be concrete. The major drawback of this method is of
biasness as evaluation is not based on specific performance dimensions of employee
related to the job. Another drawback of this is that quality of appraisal depends on the
writing ability of the evaluator rather than on employee performance.

9. Critical Incidents Method: Under this method, the performance of the employee is
rated on the basis of certain events that occurred during the performance of the job (i.e. the
evaluation is based on key incidents). In this the evaluator rates the employee on the basis
of critical events and how the employee behaved during those incidents, for this an
appraiser keeps a diary to record critical incidents involving effective and ineffective job
behaviours. It includes both negative and positive points. These critical incidents are later
used as criteria for evaluating employee‘s performance The drawback of this method is it is
very time consuming and difficult for the senior to maintain a written record for each
employee during every major incidents besides that critical incidents do not oc cur
regularly therefore, a continuous record of performance might not be available.

For example, a sudden breakdown of machinery took place this may be identified as critical
incidents for the working of a factory. The Table shows the behaviour of four wo rkers
during machine breakdown with their rating.

Worker Reaction score

A Informed supervisor immediately. 5

B Became anxious of loss of output. 4

C Was happy to get forced rest 3

D Complained of poor maintenance. 2

The rater or supervisor now keeps a record of the workers their reaction and their score
and at the end all the scores are added on that basis final decision is taken. Higher the score
the better the employee is, but the drawback is that it is difficult for the rater to keep a
record of all such incidents of large number of employee.

[Link] Review Method: In this method, HR experts take the interviews of immediate
supervisors to evaluate and judge their respective subordinates. The questions are
prepared in advance which are to be asked, by the HR. By giving answers to these pre
decided questions, the supervisor gives his opinions about the level of performance of his
subordinate, the subordinate‘s work progress, his strengths and weaknesses, promotion
potential, etc. The evaluator or HR takes detailed notes of the answer which are then
approved by the concerned supervisor. These are then placed in the employee‘s personal
service file. A major drawback of this method is that it is a very time consuming method.
But this method helps to reduce the manager‘s personal biasness.

[Link] Reports: This method is generally used in most government

organizations. In this an annual report is prepared by the employee‘s immediate superior
who covers the strengths and weaknesses, main achievements and failure, personality and
behavior of the employee. It is highly descriptive in nature and used mainly used for
promotions and transfers of employees. In this employees are not provided with the
feedback. Therefore they never get the chance to know abo ut their strengths and
weaknesses. This method mainly focuses on evaluating rather than developing the
employee.

[Link] Distribution Method : This method was developed by Tiffen to cease or stop
the rater‘s central tendency of rating most of the employees at a higher end of the scale so
as to avoid criticism. Thus in this method, the rater is forced or required to distribute his
ratings in the form of a normal frequency distribution. Appraisers had to choose from
among groups of statements those which best describes the employee the positive
statements and those which least describes him ie the negative statements. These
statements are then weighted or scored and employees with high scores are the better
ones and those with low scores are the marginal ones. As the rater is not aware of what the
scoring weights for each statement are, he cannot be bias and show favors to any employee.

Here a rater has to place a predetermined percentage or number of employees in separate

categories of performance.

[Link]-Choice Method: The forced-choice method was developed by J. P. Guilford. It

contains a series of groups of statements, and rater rates how effectively the statement
describes each individual who is being evaluated. Here the rater has to pick among equally
good or equally bad traits in assessing employee performance. Commonly forced-choice
method contains two statements, both positive and negative.

Examples of positive statements are

1. Gives good and clear instructions to the subordinates.

2. Support the team.

Examples of negative statements are:

1. Makes promises beyond his limit to keep these.

2. Inclines to favor some employees.

Each statement carries a score or weight, which is not made known to the rater. The human
resource section does rating for all sets of statements— both positive and negative. The
final rating is done on the basis of all sets of statements. Thus, employee rating in this
manner makes the method more objective.

But the major drawback of this method is that the actual construction of several evaluative
statements also called forced-choice scales‘, requires lot of time and effort.

B. MODERN METHODS

1. Behaviourally Anchored Rating Scale (BARS): Now days a relatively new method is
being followed by organizations to judge the performance of their employees called as
Behaviourally Anchored Rating Scales method (BARS) which has combine the
graphic rating scale and critical incidents method to develop BARS. It is so designed to
evaluate behaviors required to successfully perform a job, where each job is likely to have
several job dimensions and separate scales are developed for each. It means BARS consist
of predetermined critical areas of job performance or sets of behavioral statements
explaining the important job performance qualities as good or bad (for e g. The qualities
like interpersonal relationships, adaptability and reliability, job knowledge etc).These
statements are prepared from critical incidents. Once the BARS are prepared and informed
now employee‘s actual job behaviour is judged against the desired behaviour by recording
and comparing the behaviour with BARS. Though BARS standards claim that they provide
better and more reliable appraisals than other methods as it utilize and combines the
benefits of narratives, critical incidents, and quantified ratings by anchoring a quantified
scale, but still it also has its drawbacks like developing and practicing BARS requires expert
knowledge etc.

2. Result-oriented Appraisal or MBO Technique: This concept of Management by

Objectives (MBO) was given by Peter F. Drucker in 1954 in his book. To overcome the
problems of other methods, Drucker brought a new concept of management by objectives
(MBO) which can be described as a ―process whereby the superior and subordinate
managers of an organization jointly identify its common goals, define each individual‘s
major areas of responsibility in terms of results expected of him and use these measures as
guides for operating the unit and assessing the contribution of each its members. Thus the
result-oriented appraisals are based on the concrete performance targets, which are mainly
established by the seniors and subordinates jointly which involves participative goal
setting, choosing course of actions and decision-making, ie the employees and the seniors
come together to identify and set common goals to be achieved, the standards and course
of action to be taken and the criteria for measurement of their performance. It is commonly
believed that as the employees themselves are involved in the goal setting and other
process so they are more likely to fulfill their responsibilities. MBO involves following four
stages: goal setting, performance standard, comparison, and periodic review.

In the first stage goals are established together by the senior and the subordinates whom
the employees or subordinates have to achieve. These objectives are used to evaluate the
performance of the employee as they are the desired outcome to be achieved by each
individual employee.
The second step is to set the standards for the employees as per the previously arranged
time period. As when the employees start performing their jobs, they get to know what is to
be done, what has been done, and what remains to be done.

In the third step a comparison is done between the actual performance of employees with
the set standards or the goals agreed upon. Which helps the evaluator to find out the
reasons for variation between the actual and standard performance of the employees? Such
a comparison helps to decide the rater for the corrective actions to be taken like planning
for training needs for increasing employees‘ performance etc.

Finally, in the fourth stage a periodic review is done to decide and initiate the corrective
measures when actual performance deviates from the standards established in the first
stepgoal-setting stage. Periodic progress reviews are conducted in a constructive rather
than punitive manner to establish new strategies for the objectives that were not met. It is
very clear from MBO stages that it is not only an effective method of performance
evaluation. But it is rather viewed by the managers and employees as a philosophy of
managerial practice because it is a method by which managers and subordinates plan,
organize, communicate, control and debate jointly so involving active participation of all in
the organisation.

3. Human Resource Accounting Method: As already mentioned Human resources are the
valuable asset for any organization. HR department is trying to measure the value of these
assets in terms of money. It is believed when a competent, well trained employee leaves the
organisation the human asset is decreased and vice versa. Human resource accounting
method is used to find the relative worth of human assets of the organisation in the terms
of money. As in this method, cost of and contribution of human resources are measured
and compared. Where the Cost of employees includes all the expanses organization does in
terms of recruitment, selection cost, induction and placement cost, training and
development cost, compensation and benefits cost etc. whereas the contributions include
the benefits which employee provides through his performance ie value addition made by
the employee to the organization to achieve the goals and objectives of the organ ization.
The Difference between cost and contribution will shows the performance of employee,
Ideally, the contribution of the employees should be greater than the cost incurred on
them, ie the returns (contribution) made by the employee should be more tha n the money
spend(Cost) on the employee, while if opposite that cost is more than the contribution
made by the employee than it is the indicator for management to find out the reason for
low performance, analyzing it and then taking the corrective actions. Human Resource
Accounting Method is still in the transition stage.
4. Psychological Appraisals: These are conducted to assess the employee potential. Big
Corporate Houses recruits full time psychologist to assess the future performance of the
employee. Psychological Appraisals include in depth interviews, psychological tests and
discussions with supervisors. It is conducted to evaluate in the following areas of
employees: • Intellectual abilities • Emotional stability • Reasoning and analytical abilities.
• Sociability • Interpretation and judgment skills • Motivational responses • Ability to
foresee the future

5. Assessment Centres: This concept of assessment centres, to judge the performance was
first used in German Army in 1930, which than gradually spread to the US and the UK in
1940s and to the Britain in 1960s. The concept gaining popularity was then used from the
army to business arena during 1960s. This concept of assessment centre is of a recent
origin in India, companies like Crompton Greaves, Eicher, Hindustan Lever and Modi Xerox
have adopted this technique to evaluate the performance of their employees. An
assessment center provides the benefit of multiple assessments of several individuals at a
time performed together by the group of trained experts who uses variety of group and
individual exercises to evaluate the performance of each. In this method individuals from
different departments are brought together and taken to a separate location to spend two
to three days together and perform on an individual or group task similar to those they
would be handling if they will be promoted. These employees are assessed by the team of
senior managers along with the psychologists and the HR specialists. At the end of the
process, experts give their feedback in terms of strengths and weaknesses of the each
individual. The main advantage of this method is that it gives more accurate evaluation
with minimum biasness, right selection and promotion of executives, etc. But still its major
limitation is that the technique itself is very expansive and time consuming, causes
demotivation to the employee those who are rejected; develops unhealthy competition
among the individuals, etc.

6.360 Degree appraisal: Another method which is gaining huge popularity these days,
used for appraising the employee‘s performance is 360 – Degree Appraisal. This method
was first developed and formally used by General Electric Company of USA in 1992. Then, it
moved to other countries including India. In India, companies like Reliance Industries,
Wipro Corporation, Infosys Technologies, Thomas Cook etc., have been using this method
for appraising the performance of their employees. It is a method of appraisal in which
employee receive performance feedback from ―all around ie from all those who are in
contact with the employee in the organization – their boss, their seniors, their colleagues,
their own subordinates, their customers, clients, vendors and so on. Thus, the feedback
comes from all around them, - 360 degrees. It‘s also known as ‗multi-rater feedback‘, as it is
the comprehensive appraisal where the feedback about the employee‘s performance comes
from all the sources which is very beneficial to the managers to provide valuable insights
and information or feedback regarding the employee on his job than a traditional
evaluation method of performance evaluation. All these appraisers provide information or
give feedback on an employee‘s skills, abilities and behaviours by filling the structured
questionnaires designed for this purpose. Several parameters relating to performance and
behaviour are used in the questionnaires to get the overall view about the individual. All
information is collected and then compiled through the computerized system to prepare
individualized reports. These reports are than presented to the employee who is being
rated to take future course of action.

Merits of 360 Degree Appraisal

 It gives overall view of employee performance from all people coming in the contact
of employee so it can act as an excellent tool for employee development.

 It is more accurate, reliable and credible system as compared to others.

 As it is a multi rated system so it is more objective in nature.

 Individuals get a much broader perspective of how they are perceived by others
than it was previously possible.

But nonetheless, like other traditional methods, it too has its weakness/demerits firstly it is
time consuming and costly method and next is, this method may also suffer from the
subjectivity on the part of the appraiser. For example, while supervisor not happy with
employee may penalize the employee by providing negative feedback, while a peer, being
influenced by ‗give and take feeling ie I give you good feedback, you in return will also give
the same positive review to his/her colleague. Beside that it may damage the selfesteem of
employees if the feedback is not good as it will be from all round.

The Balanced Score Card

This system of performance evaluation was developed by Dr. Robert Kaplan and Dr. David
Norton in 1992, with the aim that this system will not only measure and monitor the
organizational performance but it also act as a tool which improves the communication and
feedback process between the employees and management and helps to overcome the
laggings of the business. In the beginning the method was used in the developed markets of
the United States/Europe which later move to Asia/Australia. As one of the main reasons
for many organizations to fail or be unsuccessful, is that they fail to understand and adhere
to the objectives that they have set for the organization. This balanced scorecard provides a
solution for this, by breaking down objectives into simplest form and making it easier for
management and employees to understand. To Plan, set targets and align strategy for the
organisation are two key areas where the balanced scorecard is highly beneficial. The
Balance Score Card method measures performance, by taking into consideration number of
different perspectives which are – a financial perspective, a customer perspective, an
internal business process perspective, and an innovation and learning perspective. With
the help of these different perspectives, the BSC is able to come to conclusion in terms of
both leading and lagging performance measures, thus helps in providing a more ―balanced
view of company performance. Leading indicators include measures, such as customer
satisfaction, new product development, on-time delivery, employee competency
development, etc. Traditional lagging indicators include financial measures, such as
revenue growth and profitability.

Thus it suggests:
  Financial Perspective – It includes the costs or measurement involved, in terms of
rate of return on capital (ROI) employed and operating income of the organization.

 Customer Perspective – It measures the level of customer satisfaction, customer

retention and market share held by the organization.

 Business Process Perspective – It consist of measures such as cost and quality

related to the business processes.

 Learning and Growth Perspective – It consists of measures such as employee

satisfaction, employee retention and knowledge management.

All these four perspectives are interrelated and cannot function independently, therefore
organizations need one or more perspectives combined together to achieve its business
objectives. For example, Customer Perspective is needed to determine the Financial
Perspective, which in turn can be used to improve the Learning and Growth Perspective.

To define and assess the four perspectives, following factors are used:

 Objectives –which displays the organization's objectives such as profitability or

market

 share. Measures – on the basis of the objectives, measures will be taken to achieve
those objectives.

 Targets – Next will be to set the targets to achieve those measures it could be
department based or overall as a company.

 Initiatives - These are basically the actions, which organisation takes to meet the
objectives.

Importance of balanced scorecard in the organization:

 Increase the focus on the business strategy and its outcomes.

 It leads to better organizational performance through measurements.

  It helps to align the man power to meet the organization's strategy on a day-to-day
basis.

 It targets the key determinants or drivers of future perfor mance.

 It improves the level of communication in relation to the organization's strategy and

vision.

 It helps to prioritize projects according to the timeframe and other factors.

 It helps to create the right balance between the components of organizatio n's
objectives and vision.

 This mechanism not only helps the management to keep a track down the
performance of the organization but also helps as a management strategy.

 It helps to create a strong brand name amongst its existing and potential customers
and a reputation amongst the organization's workforce.

Challenges /problems/Limitations of Performance Appraisal

Some common challenges or problems faced by the performance appraisal system are:

a) Halo effect: The halo error happens due to the tendency of judging employee on one
aspect, which influences the employee‘s overall performance ie if employee is outstanding
in one area, he tends to receive outstanding or better than average ratings in other areas as
well by the rater, even if such a rating is not deserved by the employee but because he has
more than above on one parameter it will affects his overall performance . For Example If a
worker has very few absences, his supervisor might give the worker a high rating in all
other areas of work because he comes on the duty regularly. Whereas, an employee might
be rated high on performance simply because he has good dress sense and comes to office
punctuality.

b) Stereotyping: Stereotyping or Negative Effect is a tendency of giving low or high rating

because of mental picture that an individual holds about a person because of his age,
religion, caste etc. For example, employees from rural areas might be rated poorly by raters
having a sophisticated urban background, if they view rural background negatively .
c) Central Tendency: It a tendency of some of the raters to give average ratings to all the
employees so as to avoid any kind of justification or commitment or involvement. This is
done by rater so that he does not haves not to justify or clarify the average ratings. Due to
which the ratings are generally seen to be clustered around the midpoint.

d) Constant Error: It is general tendency of some of the raters to be very lenient while
rating while some others are very strict in assessing performance. Thu s in the first case,
performance will be overrated (leniency error) while in the second case it is underrated
(strictness error). This tendency of error can be avoided by communicating the raters and
explaining them clearly what is required of them.

e) Personal Bias: Sometimes the Performance appraisal may get affected by personal
prejudices or biasness of the rater, like he may rate poorly to the employee or vice versa
because the rater dislikes or likes an employee. Such biasness or prejudice by rater ma y
arise due to regional or religious beliefs and habits or interpersonal conflicts etc.

f) Spill over Effect or Recency : Raters generally remember the recent performance of the
employee in most cases which affects his overall performance, which for examp le if not
good, than it will overshadows his entire year‘s performance this is called Recency.

g) Lack of Reliability : Reliability implies stability and consistency in the measurement.

Lack of consistency reduces the reliability of performance appraisal. As inconsistent use of
measuring standards and lack of training in appraisal techniques may also reduce
reliability. Different qualities may not be given proper weightage. For example factors like
initiative are highly subjective and cannot be quantified

h)Poor appraisal forms: Sometimes the appraisal process used by the rater might have
incorrect appraisal form or method which affects the appraisal system, some common
drawbacks are: The rating scale is vague and not clear .The appraisal form has missed the
important aspects of job performance. The appraisal form may contain extra or, irrelevant
performance dimensions. The forms may be too long and complex.

i) Incompetence: Sometimes raters themselves are not competent to judge the employee
and may fail to evaluate performance accurately due to lack of knowledge and experience.

j) Negative Approach: Performance appraisal will also lose its value if the main focus of
the management is on punishment rather than on development of employees.
 k) Multiple Objectives: Raters may sometimes get confused due to too many objectives or
unclear objectives of performance appraisal.

l) Resistance: Sometimes trade unions and other unions of the employee resist
performance appraisal, on the basis of reason that it involves differentiation or
discrimination among its members. Negative ratings by raters may affect interpersonal
relations and industrial relations particularly when employees/unions do not have faith in
the system of performance appraisal.

Promotions and Transfer Policies

Promotions
According to Pigours and Myers, ‘Promotion is advancement of an employee to a better job
– better in terms of greater responsibility, more prestige or status, greater skill and
especially increased rate of pay or salary”.

Promotion is an upward movement on the organizational ladder. It involves shifting an

employee from a lower designation to a higher designation. On taking charge of the higher
position, the employee will have greater authority, status, responsibilities, and so forth.
And at the same time, he will get better remuneration and emoluments.

Conditions of promotions are:

 Reassignment of higher level job to an employee than what he is presently performing

 The employee will naturally be delegated with greater responsibility and authority than
what he has had earlier. Promotion normally accompanied higher pay. It means in some
cases, the employee perform higher level job and receive the salary related to the lower
level job.
 Promotion may be temporary or permanent depending upo n the organizational needs and
employee performance.

Purposes of Promotion:
 To utilize the employee’s skill knowledge at the appropriate level in the organizational
hierarchy
 To develop competitive spirit and inculcate the zeal in the employees to acquire the skill,
knowledge etc. required by higher level jobs.
 To develop competent internal source of employees ready to take up jobs at higher levels in
the changing environment.
 To promote employees’ self development and make them await their turn of promo tions. It
reduces labour turnover.
 To promote a feeling of contentment with the existing conditions of the company and a
sense of belongingness.
 To promote interest in training, development programmes and in team development areas.
 To build loyalty and to boost morale.
 To reward committed and loyal employees
 To get rid of the problems created by the leaders of workers’ unions by promoting them to
the officers’ levels where they are less effective in creating problems.
 Promotion places the employees in a position where an employee’s skills and knowledge
can be better utilized.
 It creates and increases the interest of other employees in the company as they believe that
they will also get their turn.
 It creates among employees a feeling of content with the existing conditions of work and
employment.
 It increases interest in acquiring h9gher qualifications, in training and in self development
with a view to meet the requirements of promotion.
 It improves morale and job satisfaction
 Ultimately it improves organizational health.

Benefits of Promotion
Promotion Principles:
1. it should be consistent in the sense that policy should be applied uniformly to all employees
irrespective of the background of the persons,
2. it should be fair and impartial.
3. systematic line of promotion channel should be incorporated,
4. it should provide equal opportunities for promotion in all categories of jobs, departments
and regions of an organization,
5. it should ensure open policy in the sense that every eligible employee should be considered
for promotion rather than a closed system,
6. it should contain clear cut norms and criteria for judging merit, length of service,
potentiality etc.
7. appropriate authority should be entrusted with the task of making a final decision, it
should contain promotional counseling, encouragement, guidance and follow-up regarding
promotional opportunities, job requirements and acquiring the required skills, knowledge
etc.

Bases of Promotion:
1. Merit as a basis of Promotion: skill, knowledge, ability, efficiency as aptitude as
measured from educational, training and past employment record.
 Advantages:

 The resourced of higher order of an employee can be better utilized at higher level It
results in maximum utilization of human resources in an organization.

 Competent employees are motivated to exert all their resources and contribute
them to the organizational efficiency and effectiveness.

 It works as golden hand-cuffs regarding employee turnover.

 It continuously encourages the employees to acquire

Demerits:

 Measurement or judging of merit is highly difficult.

 Many people, particularly trade union leaders, distrust the management’s integrity
in judging merit.
 The techniques of merit measurement are subjective.
 Merit denotes mostly the past achievements, efficiency but not the future success.
Hence, the purpose of promotion may not be served if merit is taken as the sole
criteria for promotion.
[Link] as a Basis of Promotion: refers to relative length of service in the same job
and in the same organization. The logic behind this as a basis of promotion is that there is a
positive correlation between the length of service in the same job and the amount of
knowledge and the level of skill acquired by an employee is an organization.

Advantages:
1. It is relatively easy to measure the length of service and judge the seniority.
2. There would be full support of the trade unions to this system.
3. Every party trusts the management’s action as there is no scope for favouritism and
discrimination and judgement.
4. It gives a sense of certainty of getting promotion to every employee and of their turn of
promotion.
5. Senior employees will have a sense of satisfaction to this system as the older employees are
respected and their inefficiency cannot be pointed out.
6. It minimizes the scope for grievances and conflicts regarding promotion

Demerits:
1. The assumption that the employees learn more relatively with length of service is not valid.
2. It demotivates the young and more competent employees and results in emplo yee turnover
particularly among the dynamic force.
3. It kills the zeal and interest to develop as everybody will be promoted with or without
improvement.
4. Organizational effectiveness may be diminished through the declaration of the human
resources effectiveness as the human resources consists of mostly undynamic and old
blood.
5. Judging seniority though it seems to be easy in the theoretical sense, it is highly difficult in
practice.

[Link]-cum-Merit Promotion:
Ways in striking balance between seniority and merit

1. Minimum length of service and merit

2. Measurement of seniority and merit through a common factor
3. Minimum merit and seniority

Types of Promotion

1. Horizontal Promotion:
It results in increased responsibilities, salary and change in position/designation.
But, the employee does not shift the job classification.
2. Vertical Promotion:
In this, the employee takes charge of a higher level of position in the organizational
hierarchy. This involves increased pay, status and responsibilities.
 3. Dry Promotion:
Such a promotion involves an increase in responsibilities and status. But, there is no
increase in pay.

Transfer

According to Edwin Flippo, a transfer, “is a change in job where the new job is
substantially equal to the old in terms of pay, status and responsibilities”.

Transfer implies the horizontal movement of an employee within the organization but to a
different department, section, shift or branch. But, the position and pay remain the same.
It aims at making adjustments in the work, place and employee. Moreover, the transfer may
also be caused by promotion, demotion, organizational restructuring, or administrative
reasons. In addition, it can be temporary or permanent. Temporary transfers are a result
of:

 Temporary Absenteeism
 Shifts in workload
 Vacations
 Vacancies need the special skill of the transferred employee.
 Ill health

Transfer may be made to achieve the following objectives:

 To meet or fulfill organizational needs – To fulfill organisational needs arising

out of change in technology, volume of production, production schedule, quality
of product etc., an employee may have to be transferred.
 To satisfy employee needs – Sometimes employees themselves demand transfer
due to their personal problems like ill health, family problem native
attractiveness or non-co-operation from boss or fellow workers. To satisfy their
needs employees may have to be transferred.
 To adjust the workforce – Employees for excess or surplus in one department
may have to be transferred to other department or section where there is
shortage of workforce.
 To reduce monotony and to make the employees versatile – If the employees
have stayed on a job continuously for a longer duration, to reduce their
monotony and to widen their knowledge and skill, employees are transferred.
 For effective use of employees – If the management feels that the service of the
able employee is to be used in different branches of the same organisation, then
such employees will have to be transferred.
  To punish Employees – If employees are found indulged in undesirable activities
like fraud, bribery, duping etc., such employees are transferred to remote places
as a disciplinary action.
 To give the relief to the employees – Employees who are overburdened and
doing complicated or risky work for long period are relieved from such work by
transferring such employees to a place of their choice.
 To improve employees background by placing them in different jobs of various
departments and units.

Transfer in HRM

There is a well-structured transfer policy in organistions. Employee may be transferred

either because of the needs of the organisation or at their own request. Quite often the
management makes remedial transfer in case an individual is not performing
satisfactorily on his/her present assignment and management feels that he/she will be
more suitable on a different job considering his/her qualifications.

The transfers are generally affected for the following reasons:

A. Personal Transfer:
Personal Transfers are those which occur by desire of the employee and are pr imarily
in his interest.

The reasons for such requests could be:

(1) To correct erroneous placement.

(2) To relieve the monotony of a job, acquire better working conditions and join
friends/spouse.

(3) To avoid interpersonal conflicts.

(4) In consideration of the interests of age/health, education of children, housing

difficulties or to join immobile dependents.

(5) The feeling that opportunity for advancement is better in another department.

(6) A search for creative opportunities.

B. Organisation Initiated Transfer:

The organisation may initiate transfers for the following reasons:
(1) The need for temporary adjustment for the convenience or benefit of the
organisation or the employee, such as leave replacement or very short assignments.

(2) To meet emergencies or charges in operations or to deal with fluctuations in works

requirements, necessitate either by volume of output or separation.

(3) To make use of the increasing versatility and competence of key employees.

Types of Transfer

 Production Transfer
Transfer of employees from one department or plant where there is a surplus of
labour to another plant or department having a shortage of labour. These aim at
stabilizing employment in the organization. Also, it aims at preventing lay-offs.
 Replacement Transfer
Just like production transfers, these transfers also intend to prevent lay off,
particularly of senior employees. In such a transfer, a senior employee replaces a
new one to prevent the lay-off of a senior employee.
 Remedial Transfer
Transfers occuring as a result of remedy to a situation are remedial transfers. These
occur when the primary placement of the employee is faulty. It also occurs when the
employee is unable to work cooperatively with supervisors or other co -workers in
the same department. Hence, the company transfers him to a suitable job where he
could get along well.
  Versatility Transfer
Such transfers intend to make employees more versatile and competent. This is to
ensure that the employee has a broad spectrum of experience in all kinds of work.
Also, it facilitates the learning of various skills.
 Shift Transfer
Industrial establishments or plants operate on shift by shift basis. In these cases, the
transfer of employees from one shift to another on the same work takes place. Such
transfers occur on a rotational basis.

Career Planning

Career planning generally involves getting to know who you are, what you want, and how
to get there. Keep in mind that career planning is a continuous process that allows you to
move from one stage to another stage as your life changes. You may even find yourself
going back to look at who you are again after exploring how to get there. Learning to
negotiate the career planning process now is essential, considering most people will
change careers several times in a lifetime.

If a career plan is to be effective, it must begin with an objective. When asked about career
objectives, most managers will probably answer by saying that they want to be
successful. What is success? Definition of success depends on personal aspirations, values,
self-image, age, background and other different factors. Success is personally defined
concept. In order to plan your career, you need to have an idea of what constitutes career
success.
Career Planning In an Organization
Career planning is the process by which one selects career goals and the path to these
goals. The major focus of career planning is on assisting the employees achieve a better
match between personal goals and the opportunities that are realistically available in the
organization. Career programmers should not concentrate only on career growth
opportunities. Practically speaking, there may not be enough high level positions to make
upward mobility a reality for a large number of employees. Hence, career -planning efforts
need to pin-point and highlight those areas that offer psychological success instead of
vertical growth.
Career planning is not an event or end in itself, but a continuous process of developing
human resources for achieving optimum results. It must, however, be noted that individual
and organizational careers are not separate and distinct. A person who is not able to
translate his career plan into action within the organization may probably quit the job, if he
has a choice. Organizations, therefore, should help employees in career planning so that
both can satisfy each other’s needs.
Career Planning vs. Human Resource Planning
Human Resource planning is the process of analyzing and estimating the need for and
availability of employees. Through Human Resource planning, the Personnel Department is
able to prepare a summary of skills and potentials available within the organization. Career
planning assists in finding those employees who could be groomed for higher level
positions, on the strength of their performance.
Human Resource planning gives valuable information about the availability of human
resources for expansion, growth, etc. (expansion of facilities, construction of a new plant,
opening a new branch, launching a new product, etc.). On the other hand, career planning
only gives us a picture of who could succeed in case any major developments leading to
retirement, death, resignation of existing employees.
Human Resource planning is tied to the overall strategic planning efforts of the
organization. There cannot be an effective manpower planning, if career planning is not
carried out properly.
Need for Career Planning
Every employee has a desire to grow and scale new heights in his workplace continuously.
If there are enough opportunities, he can pursue his career goals and exploit his potential
fully. He feels highly motivated when the organization shows him a clear path as to how he
can meet his personal ambitions while trying to realize corporate goals.
Unfortunately, as pointed out by John Leach, organizations do not pay adequate attention
to this aspect in actual practice for a variety of reasons. The demands of employees are not
matched with organizational needs; no effort is made to show how the employees can grow
within certain limits, what happens to an employee five years down the line if he does well,
whether the organization is trying to offer mere jobs or long-lasting careers, etc. When
recognition does not come in time for meritorious performance and a certain amount of
confusion prevails in the minds of employees whether they are ‘in’ with a chance to grow
or not, they look for greener pastures outside. Key executives leave in frustration and the
organization suffers badly when turnover figures rise. Any recruitment effort made in
panic to fill the vacancies is not going to be effective. So, the absence of a career plan is
going to make a big difference to both the employees and the organization. Employees do
not get right breaks at a right time; their morale will be low and they are always on their
toes trying to find escape routes.
Organizations are not going to benefit from high employee turnover. New employees
mean additional selection and training costs. Bridging the gaps through short-term
replacements is not going to pay in terms of productivity. Organizations, therefore, try to
put their career plans in place and educate employees about the opportunities that exist
internally for talented people. Without such a progressive outlook, organizations cannot
prosper.
Objectives
Career planning seeks to meet the following objectives:
i. Attract and retain talent by offering careers, not jobs.
ii. Use human resources effectively and achieve greater productivity.
iii. Reduce employee turnover.
iv. Improve employee morale and motivation.
v. Meet the immediate and future human resource needs of the organization on a timely
basis
Career Planning Process
The career planning process involves the following steps:
i. Identifying individual needs and aspirations:
Most individuals do not have a clear cut idea about their career aspirations, anchors and
goals. The human resource professionals must, therefore, help an employee by providing as
much information as possible showing what kind of work would suit the employee most,
taking his skills, experience, and aptitude into account. Such assistance is extended through
workshops/seminars while the employees are subjected to psychological testing,
simulation exercises, etc. The basic purpose of such an exercise is to help an employee form
a clear view about what he should do to build his career within the company. Workshops
and seminars increase employee interest by showing the value of career planning. They
help employees set career goals, identify career paths and uncover specific career
development activities (discussed later). These individual efforts may be supplemented by
printed or taped information. To assist employees in a better way, organizations construct
a data bank consisting of information on the career histories, skill evaluations and career
preferences of its
employees (known as skill or talent inventory).
ii. Analyzing career opportunities:
Once career needs and aspirations of employees are known, the organization has to
provide career paths for each position. Career paths show career progr ession possibilities
clearly. They indicate the various positions that one could hold over a period of time, if one
is able to perform well. Career paths change over time, of course, in tune with employee’s
needs and organizational requirements. While outlining career paths, the claims of
experienced persons lacking professional degrees and that of young recruits with excellent
degrees but without experience need to be balanced properly.
iii. Aligning needs and opportunities:
After employees have identified their needs and have realized the existence of career
opportunities the remaining problem is one of alignment. This process consists of two
steps: first, identify the potential of employees and then undertake career development
programmers (discussed later on elaborately) with a view to align employee needs and
organizational opportunities. Through performance appraisal, the potential of employees
can be assessed to some extent. Such an appraisal would help reveal employees who need
further training, employees who can take up added responsibilities, etc. After identifying
the potential of employees certain developmental techniques such as special assignments,
planned position rotation, supervisory coaching, job enrichment, understudy programs can
be undertaken to update employee knowledge and skills.
iv. Action plans and periodic review:
The matching process would uncover gaps. These need to be bridged through individual
career development efforts and organization supported efforts from time to time. After
initiating these steps, it is necessary to review the whole thing every now and then. This
will help the employee know in which direction he is moving, what changes are likely to
take place, what kind of skills are needed to face new and emerging organizational
challenges. From an organizational standpoint also, it is necessary to find out how
employees are doing, what are their goals and aspirations, whether the career paths are in
tune with individual needs and serve the overall corporate objectives, etc.

The New “Portable” Career Path

CAREER PLANNING MODELS

There are many models one may use while career planning. The two main models are
1. Waterloo University Model
Water University Model

2. The SODI Career Planning Model

Given the complexity of career development and the fluidity of the world of work, we need
to be able to navigate our career paths with purpose and clarity.
Law and Watts (1977) devised a simple model of career education which has stood the test
of time. This model has been changed slightly to become a career planning, rather than a
career education model and named the SODI model where the last element is
‘implementation’ rather than ‘transition learning’, and ‘decision learning’ becomes ‘decision
making and planning’.
The model encapsulates four concepts which are:
Self-awareness – individual having knowledge about and understanding of their own
personal development. Self-awareness in a careers context involves an understanding of
kind of personal resources (both actual and potential) they bring to world.
Opportunity awareness – an understanding of the general structures of the world of
work, including career possibilities and alternative pathways.
Decision making and planning – an understanding of how to make career decisions, and
being aware of pressures, influences, styles, consequences and goal setting.
Implementing plans – having the appropriate skill level in a range of areas to be able to
translate job and career planning into reality