UNIT - 3

Employee
Training & Development
 Definition of Training
Michael Armstrong, defines training as “the
systematic development of the knowledge,
skills and attitudes required by an individual
to perform adequately a given task or job.”

According to Edwin B Flippo, training is “ the

act of increasing knowledge and skill of an
employee for doing a particular job.”
 Purpose of Training
 Improving Employee Performance.
 Updating Employee Skills.
 Avoiding Managerial Obsolescence.
 Preparing for promotion and managerial
succession.
 Retaining and Motivating Employees.
 Creating an Efficient and effective
organization.
 Nature of Training
The nature of training delivery is important
to the overall success of both employees and
employers. The training process takes place
after a new employee's orientation and
enhances the skills, knowledge and
capabilities of the employee in a particular
job.
 Nature of Training
Training is a process whereby people acquire
capabilities to aid in the achievement of
organizational goals. Because this process is
tied to a variety of organizations  purposes,
training can be viewed either narrowly or
broadly. In a limited sense. training provides
employees with specific, identifiable
knowledge and skills for use in their present
jobs.
 Importance of Training
 Increased productivity.
 Higher employee morale.
 Less supervision.
 Less wastage.
 Easy adaptability.
 Reduced turnover and absenteeism.
 Employee development.
 Employee Training Methods
A number of factors determine the choice of the
type of training methods used by an
organization. These are:
 Organizational Culture.
 Learning Principles.
 Content of the Program.
 Time Factors.
 Cost effectiveness.
Contd..
 Employee Training Methods
(Contd)

 Appropriateness of the facilities.

 Employee preferences and capabilities.
 Trainer preferences and capabilities.

The training methods used by organizations can be

basically categorized into on-the-job methods and
off-the-job methods.
 On-The-Job Training

 Job Instruction: After the training is imparted to

the trainee, in the form of instructions, the
trainee is asked to demonstrate the job.
 Apprenticeship & Coaching: Apprentices are not
‘employees’ of the organization and are not
governed by any of the laws that are applicable
to regular employees, whereas coaching is less
formal than apprenticeship.

Contd..
 Methods
• On the job training refers to a form of training
which is provided at the work place during the
performance of the actual job.

• When the employees are given training

outside the actual work location, such a type
of training is termed as off the job training.

11
 On-The-Job Training
(Contd)

 Job Rotation: Here, trainee is placed on various

jobs across different functions in the
organization.
 Committee Assignments: Under this method, a
group of employees are given an actual
organizational problem and asked to find a
solution.
 Off-The-Job Training
 Lectures: These are formal organized talks
by the training specialist, the superior or
the other individual specific topics.
 Conferences: Here, the participating
individuals ‘confer’ to discuss points of
common interest to each other.
 Group Discussion: An established method
for training.

Contd..
 Off-The-Job Training
(Contd)

 Case Studies(Learning by doing):

The case study is based upon the belief that
managerial competence can best be attained
through the study, contemplation and discussion
of concrete cases.
 Role Playing: Here, trainees act out a given role
as they would in a stage play.
 Programmed Instructions: Teaching by machine
methods where trainees learn at their own pace.
Contd..
 Off-The-Job Training
(Contd)

 Vestibule Training: This method attempts to

duplicate under training-center-training which
may geared to job duties.
 Simulation: Simulation is a technique which
duplicates, as nearly as possible, the actual
conditions encountered on the job.
 Demonstrations and Examples: Here, the
trainer describes and displays something, as
when he teaches an employee.
Video : Training Process
 Types of Training
• Skills training
• Refresher Training
• Cross Function
• Team
• Creativity

17
 Career Planning

Career planning is a process whereby an

individual sets career goals and identifies the
means to achieve them. Where the organization
intervenes in planning, it becomes organizational
career planning. In other words, organizational
career planning is the planned succession of jobs
worked out by a firm to develop its employees.
Career Management Process
Career
Management
Strategy

Evaluation Assessment

Development
Career
Planning
 Promotions
Promotion means advancement within an organization.

 “A promotion is the transfer of an employee to a

job that pays more money or that enjoys some
preferred status.” Scott and Spreigal

 “A promotion involves a change from one job to

another that is better in terms of status and
responsibility.” Edwin B. Flippo
 Features of Promotion
 Transfer of an employee to some higher job
having more prestige, better status, more
benefits and privileges.
 Reassignment of an employee to a position
having increased responsibilities.
 Higher job grade.
 Principles of Promotion
A sound promotion policy reduces the personnel problems
regarding promotions considerably and ensures the
employees fair chances of advancement. The promotion
policy should be in writing:
 Promotion policy should lay down what percentage of
vacancies in higher levels of hierarchy are to be filled up
by promotion.
 Promotion policy should mention the basis of
promotion-seniority or merit.
 Job analysis decides the position of the jobs and their
relationship to other positions.
 Promotion programmes should be closely allied to
training programme. Contd..
 Principles of Promotion
(Contd)

 A scientific procedure for evaluating employee

performance should be followed.
 The supervisor or the immediate boss should
recommend the promotion.
 The promotion policy should contain a provision for the
challenge of a particular promotion.
 A vacancy or a would be vacancy should be notified to
employees in advance.
 The promotion, at first, should be made on probation.
 Promotion should not be forced on such reluctant
employees.
 Types of Promotion
The senior most person in the lower grade shall be
promoted as and when there is an opening in the higher
position. 
 Seniority as a Basis of Promotion: The senior most
person in the lower grade shall be promoted as and
when there is an opening in the higher position. 
 Merit as a Basis of Promotion: The most capable
person in the lower grade, no matter if he is junior most
in the company shall be promoted.
 Seniority-Cum-Merit Basis : A combination of both
seniority and merit may be considered as a sound basis
of promotion
 Demotion
In demotion, the employee, is shifted to a job
lower in status, grade and responsibilities.
 
In the words of Dale Yoder, “Demotion is a shift to
a position in which responsibilities are decreased.
Promotion is, in a sense, an increase in rank ad
demotion is decrease in rank.
 Causes of Demotion
 Inadequacy on the part of the employees in terms of job
performance, attitude and capability.
 Demotion may result form organizational staff reductions.
 Demotions may be used as disciplinary tools against errant
employees.
 If there is a mistake in staffing i.e. a person is promoted wrongly.
 A change in technology, methods and practices, old hands are
unable to adjust or when employees because of ill health or
personal reasons, cannot do their job properly.

Demotion Policy : It is very necessary to formulate a demotion policy

so that there may be no grievance on the part of the trade unions.
 Transfer
A transfer does not imply any ascending or descending
change in status or responsibility.

“A transfer refers to a horizontal or lateral movement

of an employee from one job to another in the same
organization without any significant changes status
and pay. It has been defined as “ lateral shift causing
movement of individuals from one position to another
usually without involving any marked change in duties,
responsibilities, skills needed or compensation.”
 Purpose of Transfer
 To Meet the Organizational Requirements
 To Meet Employees’ Requests
 To Ensure Better Utilization of the Employees
 To Make the Employees More Versatile
   To Adjust the Workforce
 To Provide Relief to the Employee
 To Reduce Conflicts and Incompatibilities
 To Penalize the Employees
 To Maintain a Tenure System
 To Accommodate Family Related Issues
 Principles of Transfer
 The frequency of transfers and the minimum period between
transfers need to be decided upon and made known to all the
employees.
 Defense personnel and government employees, for example,
are subjected to transfer once in three years. The employees
in these establishments know when they are due for a
transfer and are prepared for it.
 The authority which would handle transfers is to be decided
upon. The usual practice is that transfers in each department
are handled by the person in charge of that department. The
best course is to centralize the authority handling transfers,
and make the HR department responsible for them.
 The criteria for entertaining transfers need to be laid down
and strictly adhered to.
 Types of Transfer
Transfers may be classified on the basis of
purpose or unit :-

 Production Transfers.
 Replacement Transfers.
 Versatility Transfers.
 Shift Transfers.
 Remedial Transfers.
 Precautionary Transfers.
 Personnel Transfers
 Separation

“Separation is a decision that the individual and the

organization should part.”

“Separation of an employee takes place when his

service agreement with the organization come to an
end and the employee the organization. It may occur
due to resignation, death, dismissal and layoff.
Following are various forms of separations.”
 Types of Separation
Separation

Voluntary Involuntary
Quits Discharges

Layoffs
Retrenchment
Retrenchment

VRS

Rightsizing

Contd..
 Types of Separation
(Contd)

 Resignation: A resignation refers to the

termination of employment at the instance of
the employees.
 Dismissal or Discharge: Dismissal is the
termination of the services of an employee as a
punitive measure for some misconduct.
 Suspension: Suspension means prohibiting an
employee from attending work and perform
normal duties assigned to him.
Lay off:

 Lay off is resorted to as a result of some bonafide

reasons as factors which are beyond the control of
the employers.
 A lay off is a temporary separation of the employees
from his employer at the instance of the latter
without any prejudice to the former.
 Lay off means the failure, refusal or inability of an
employer on account of coal, power or raw-materials
or accumulation of stock, breakdown of machinery or
by any other reason.
 Performance Appraisal

 Performance appraisal is a formal assessment

and rating of individuals by their managers at
usually an annual review meeting.
 Performance can be defined as the degree of
accomplishment of tasks by an employee in his
job.
The objectives of Performance Appraisal
Objectives Remarks
1. Setting targets and goals as 1. Performance standards and
performance standards. specific goals are set at the
beginning of the appraisal
period.
2. Evaluating employee 2. It helps understand the strengths
performance and weakness of the employee.
3. Identifying training and 3. These are the shortcomings in
development skills the individual’s performance,
which need to be improved
upon.
4. Rewarding performance
4. Rewarding a good performer and
punishing a bad one.
 Purpose of Performance Appraisal
 To identify misplaced employee so that suitable
remedial action may be taken.
 To judge whether employees are performing at the
acceptable level.
 To find out the potential of employee for promotion
and development.
 To identify the strengths and weaknesses of
individuals so that timely steps may be taken to
improve the quality of personnel.
 To provide a record of each employee’s performance
for the purpose of incentive pay and awards.
The Performance Appraisal Process
The Performance Appraisal Process
 Procedures and Techniques of
Performance Appraisal
The different appraisal methods used by the
organizations in India and abroad are discussed in this
section. The most commonly used methods are :-
 Management by objectives (MBO).
 Graphic rating scale.
 Work Standard Approach.
 Essay Appraisal.
 Critical incident method.
 Forced Choice rating method.
 Point allocation method.
Contd..
 Procedures and Techniques of
Performance Appraisal
(Contd)

 Point Allocation Method.

 Ranking Methods.
 Checklist.
 Behaviorally Anchored Rating Scale (BARS).
 Team Appraisals.
 Balanced Scorecard Method.
 360 degree performance appraisal.
Techniques & Methods of Performance
Appraisal
Methods of Performance Appraisal
Rating Scale
Check list for Operation
Forced Choice Method
Forced Distribution on a Bell-
shaped Curve
Example of Critical Incidents for an
Assistant Plant Manager
A BARS for the knowledge and Judgement
Dimension of a Grocery Checker’s Job
Types of Performance Appraisal

 Behavioral  checklist.

 360 degree appraisal.

 Management by objective.
 Psychological appraisals.
 Types of Performance Appraisal

Behavioral  checklist : Behavioral checklist

has a list of criteria that an employee should
workup to be a diligent worker. The behaviors
differ according to the type of job been
assessed. This method is considered favorable
as the evaluation is done on the basis of
individual employee performance without
comparisons.
 Types of Performance Appraisal
 A 360 degree appraisal system aims at a
comprehensive and objective appraisal of employee
performance.
 In this system, the employee’s performance is
evaluated by his supervisor, his peers, his
internal/external customers, his internal/external
suppliers and his subordinates.
 However, the Indian culture, which advocates a
strong hierarchical divide, mat find it a little hard to
accept this novel concept where even the
subordinates evaluate their boss.
 Types of Performance Appraisal

Management by objective : This is an

objective type of evaluation which falls under
modern approach of performance appraisal.
In MBO method of performance appraisal,
manager and the employee agree upon
specific and obtainable goals with a set
deadline. With this method, the appraiser can
define success and failure easily.
 Types of Performance Appraisal

Psychological appraisals : This appraisal

method evaluates the employees intellect,
emotional stability, analytical skills and other
psychological traits. This method makes it
easy for the manager in placing the
employees in appropriate teams.
Components of 360o Performance Appraisal

EMPLOYEE
 Job Evaluation
Job evaluation is a system of determining the relative
worth of different jobs in an organization. It can be
defined as:

 Job evaluation as a personnel term has both a

specific and generic meaning. Specially it means
the entire field of wages and salary
administration along modern lines.
 The systematic and orderly process of measuring
the worth of job with in an organization is called
job evaluation.
Job Evaluation Process
 Objectives of Job Evaluation
 To determine the hierarchy and place of various
jobs in an organization.
 To gather data and information relating to job
description, job specification and employee
specifications of various jobs in an organization.
 To minimize wage discrimination based on sex,
age, caste, region, religion etc.
 To determine the ranks or grades of various jobs.
 To compare the duties, responsibilities and
demands of a job with that of other job.
Methods of Job Evaluation
 Ranking Method
Features / Process
 Jobs are arranged in order of their
importance.
 From simplest to the hardest.
 Committee evaluates the job and ranks them.
 Ranks on nature of job, working conditions,
supervision needed, responsibilities involved
etc.
 These factors are not assigned any weight of
points.
Contd..
 Ranking Method
(Contd)

Example
Rank Monthly Salaries
Accounts officer …………………………
Accountant …………………………
Senior accounts clerk …………………………
Accounts clerk …………………………
Computer operator …………………………
Purchase assistant …………………………
Office boy …………………………
Peon …………………………
 Ranking Method
(Contd)

Merits
 It is very easy to understand and explain to
the employees.
 This method is economical in operation as
compared to other methods.
 It can be installed without any delay as it
requires much less time.

Contd..
 Ranking Method
(Contd)
Demerits
 The ranking is not based on standard criterion so
human bias cannot be ruled out. Different rates
may rank the jobs differently.
 Since factors like skill, responsibility, effort etc, are
not analyzed separately, the wage rates paid for
different jobs influence the rates.
 Under this system the jobs are only ranks in some
order and the exact difference between different
jobs is not determined.
 There remain chances of inaccurate ranking.
 The employees may resent arbitrary ranking of jobs.
 Job Grading Method
Features / Process
 Jobs are put under different grades as per their
nature and importance.
 A number of pre-determined grades or
classifications are decided by the committee.
 All jobs are assigned to one of the grades or
classes.
 Each grade or class has different rate of wages.
 The jobs may be graded as skilled, unskilled,
clerical, administrative, etc.
 This method is considered to be an
improvement over ranking method in that a
predetermined scale of values is provided. Contd..
 Job Grading Method
Example (Contd)

Grade Description
1 Very simple tasks requiring minimum mental ability. Basically
consisting of manual work.
2 Jobs requiring clerical work. Basically consisting of desk work
and minimum manual work. Minimum training required.
3 Straight forward tasks, but requiring ability to apply
established procedures and to guide others.
4 Routine work but involving some element of responsibility
for answering non-routine queries and exercising some
measure of control over a small group of staff.
5 Jobs in this grade involve decision making and administrative
work. Professional qualifications are required.
6 Jobs in this highest grade involve policy making and ultimate
control. Specialists with work experience are required.

Contd..
 Job Grading Method
(Contd)
Merits
 A systematic criterion is followed in grading
various jobs. It is easy for the employees to
understand the standard used for classification.
 The method is simple to understand and easy to
operate. It does not require any technical help.
 It is easy to determine pay scales for various
grades or classes.
 This method is successfully used in government
services.

Contd..
 Job Grading Method
(Contd)

Demerits
 The classification of jobs is done by some of the
executives, human bias cannot be ruled out
because no set standards are available for
classification.
 No job analysis is essential in this method, there
is a likelihood of wrong classification for jobs.
 With the increase in number of jobs, the system
becomes difficult to operate.
 The system is not suitable for large organizations
because of its rigidity.
 Point Ranking Method
Features/Process
 Most widely used method.
 Involves quantitative and analytical approach.
 Important factors in each job determined.
 Degree of each factor also determined.
 Various factors are assigned.
 Sum of the points gives us an index for the
relative significance of the jobs.
 Points converted into money value or wage
rates.
Contd..
 Point Ranking Method
(Contd)

Example
Point Range Pay Scale Rs. Grade

50-100 700-1600 1

100-150 1200-2000 2

150-200 1500-2500 3

200-250 2200-4000 4

250-300 3000-5000 5
Contd..
 Point Ranking Method
(Contd)
Merits
 It gives us a numerical basis for wage differentials.
 The scale, once decided can be used for a fairly long
time.
 A job can easily be evaluated in money terms as
these are assigned according to points.
 The system of job evaluation being systematic and
objective is more acceptable to workers.
 The element of human bias is minimized.
 This method is useful even if the number of jobs is
very large. The system enjoys stability so far as
factors remain relevant.
 This method is more accurate as compared to
earlier methods. Contd..
 Point Ranking Method
(Contd)

Demerits
 The use of this method involves high costs, it
can be used only by giant concerns.
 The task of defining job factors and then
degree of factors is a time consuming
proposition.
 The selection of factors and then sub-factors
is a difficult task.
 The allotting of marks to various factors and
sub-factors is also a difficult task.
 Factor Comparison Method
Features / Process

 This method is combination of ranking and point

system of job evaluation.
 It was first developed by EJ Benge in 1926.
 Under this method the relative rank of the jobs is
evaluated in relation of monetary scale.
 Some key jobs are selected at the first instance and
then ranked by considering one factor at a time.
 In this method five factors are generally evaluated
for each job; mental requirements, skill, physical
requirements, responsibilities and working
conditions.
Contd..
 Factor Comparison Method
(Contd)
Example
Key Job Wage Mental Physical Skill Responsibil Working
Rate Require Requiremen Requirem ity Conditions
ment t ent

Electrician
80 23 5 25 24 3
Tool Maker
75 14 15 20 11 15
Welder
70 16 13 17 14 10
Machinist
60 14 11 15 12 8
Labourer
50 5 19 10 4 12

Contd..
 Factor Comparison Method
(Contd)

Merits
 This system is systematic where every job
factor is qualified.
 It can easily be explained to employees.
 The relative value of each job is determined
by comparing it with some key job.
 The number of factors used being limited, it
helps in avoiding overlapping.

Contd..
 Factor Comparison Method
(Contd)

Demerits
 It is difficult to operate.
 There may be frequent changes in wage
levels requiring adjustment in key jobs.
 The system is complex and cannot be easily
understood by non-supervisory staff.
 This method is expensive and small concerns
cannot afford to use it.
 Essentials For The Success of Job
Evaluation Programme
 A job evaluation system should be clear to the
supervisors.
 The supervisors should be given proper
training to implement the system properly.
 The system should be well publicized in all its
aspects.
 There should be separate pay structures for all
major categories of employees.
 The administration of the job evaluation
programme should be properly explained to
employees so that they do not have any
apprehension about it.
Training Process
Training Evaluation
Steps in Designing a Training Program
Impediments to Effective Training
 Management commitment is lacking and uneven.
 Aggregate spending on training is inadequate.
 Educational institutions award degrees but
graduates lack skills.
 Large-scale poaching of trained workers.
 No help to workers displaced because of
downsizing.
 Employers and B schools must develop closer ties.
 Organized labor can help.
 How to make training effective?
 Ensure that the management commits itself to
allocate major resources and adequate time to
training. This is what high-performing organizations
do.
 Ensure that training contributes to competitive
strategies of the firm. Different strategies need
different HR skills for implementation. Let training
help employees at all levels acquire the needed
skills.
 Ensure that a comprehensive and systematic
approach to training exists, and training and
retraining are done at all levels on a continuous
and ongoing basis.
Contd..
 How to make training effective?

 Make learning one of the fundamental values of

the company. Let this philosophy percolate down
to all employees in the company.
 Ensure that there is proper linkage among
organizational, operational and individual training
needs.
 Create a system to evaluate the effectiveness of
training.