Subject : Human Resource Management

Course code: 22MBADSE203

Semester - I
 MODULE - 3

Talent Management
Interview Questions
• How does L&D contribute to employee engagement?
• Do you think, the continued organizational learning give better ROI than
traditional employee training?
 Contents
• Module 3 – Talent Management 9 Hours

Training- meaning, need and importance of training, Distinction between training

and development, methods of training – On the Job & Off the Job, process of
training, Calculating the ROI of training and Payback Period, Recent developments in
training, Succession Planning, Strategies for Accelerating Development for
succession, Performance appraisal, meaning, importance, various performance
appraisal methods*, Drawbacks of Performance Management System.
 Course Objective

Examine the suitable ways to train employees

for enhanced talent management.
 Relevant Information
LinkedIn Learning –
1. How to Design and Deliver Training
https://
www.linkedin.com/learning/how-to-design-and-deliver-training-programs/
welcome?autoAdvance=true&autoSkip=false&autoplay=true&resume=tru
e&u=92695330

2. Improving Employee Performance (Beginner)

https://www.linkedin.com/learning/performance-management-improving-
employee-performance?u=92695330

3. Provide Powerful Performance Feedback (Optional)

https://www.linkedin.com/learning/hr-guidelines-everyone-should-know-2
022/provide-powerful-performance-feedback?u=92695330
 Relevant Information
• Case Study 1 – Global Job Rotation, Page 254, HRM By Gary
Dessler- 15th Ed.
https
://ibfbzu.edu.pk/wp-content/uploads/2020/08/Human-Resource
-Management-by-Gary-Dessler-15th-ed.pdf

• Case Study 2: The Customer Feedback

Talent Management
https://www.youtube.com/watch?v=snl7eC8LDL
k
 TRAINING : DEFINITION
• Definition
– “The systematic acquisition of attitudes, concepts,
knowledge, roles, or skills, that result in improved
performance at work.” (Goldstein 1991)
– Training
• skill enhancement processes for non-managerial jobs
– Development
• skill enhancement processes for managerial jobs
• https://www.youtube.com/watch?v=qA-Vw8_Qbn4
• https://www.youtube.com/watch?v=OA3HxvYPzbU
 IMPORTANCE OF TRAINING
• Meeting manpower needs
• Improves quality of products and services
• Versatility in operation
• Employee stability
• Efficient utilization of resources and elimination of
wastage
• Higher employee morale
 TRAINING NEED ANALYSIS
Needs

Training Needs
Analysis

Task Analysis: Performance Analysis:

Assessing New Employees’ Assessing Current
Training Needs Employees’ Training Needs

Copyright © 2011 Dorling Kindersley India Pvt. Ltd. Authorized adaptation from the United States edition of ‘Human Resource Management, 12/e.
 TRAINING vs DEVELOPMENT
Training Development

Nature Tangible in nature Intangible in nature

Importance Technology oriented towards Training Important as Development is oriented

towards Technology
Skills Deals with non Human Skills Deals with Human Skills

Directed New recruits and technical Managerial personnel to acquire

towards personnel conceptual and human skills
Methodology Greater emphasis on Job Methods Greater emphasis on off the job
methods
Frequency & Less frequent…Employees at junior Frequent and continuous…
Relevance level Employees at mid level and high
level.
Who imparts Mostly the supervisor Mentors, external experts
 Process of Training
• Need Analysis-
Organizational/Business/Personnel.
• Training objectives- Training Readiness/
Learning Principles/ Trainer quality.
• Design the training program- On the job/Off
the Job/ Management Development.
• Implementation- Learning principles
• Evaluation- Transfer of Behavior/ Trainee
Reactions/ Results.
 Training can be evaluated at five levels: reaction, learning, behavior, organization and results.

Levels Questions being asked Measures

Evaluation Accidents
Quality
Productivity
Is the Turnover
organisation or Morale
unit better because Costs
Result Profits
of the training?

Performance
Are trainees behaving differently Appraisal by
on the job after training? Are superior, peer,
they using the skills and client,
Behaviour knowledge they learnt in subordinate
training?

Written tests
To what extent do trainees have greater Performance
knowledge or skill after the training tests
programme than they did before? Graded
Learning
simulations

Did the trainees like the programme, the trainers, the

facilities? Do they think the course was useful? What
Questionnaires
improvement can they suggest?
Reaction

Copyright © 2011 Dorling Kindersley India Pvt. Ltd. Authorized adaptation from the United States edition of ‘Human Resource Management, 12/e.
 AREAS OF TRAINING
 Knowledge
 Technical skills
 Social skills
 Techniques
Discussion Case
 Discussion Case
Discuss examples of how multi-national companies use job rotation and
other job training means to develop employees?

Page no – HRM by Gary Dessler page no 254

METHODS OF TRAINING
On the Job

Job rotation
Coaching
Understudy
Job Instruction
Committee assignment.
 METHODS OF TRAINING
Off the Job

Lectures Simulations
Discussions Seminars and Conferences
Case Studies In basket training
Vestibule training Business games
Sensitivity training Computer based training
Programmed Instructions
Audio Visual training
Roleplays
 Job Rotation

• Job Rotation : Involves movement of trainee from one

job to another.
• Trainee equips himself with job knowledge.
• Gains experience from supervisors / trainees in different
job assignments.
• Gives an opportunity for the employee to become
versatile and ready handle varied jobs in future
– At SAS, through the Sales, Customer Advisory, Technical Enablement, and Marketing
Rotational programs, newly-minted professionals can hone their capabilities at the company’s
headquarters, ensuring they have the tools they need to thrive.
• Informal Learning- Training experts use the notation “70/20/10” to
show that as a rule, 70% of job learning occurs informally on or off the
job, 20% reflects social interactions (for instance, among employees on
the job), and only 10% is actual formal training.
• This may take the following forms: participating in meetings, coaching
other people, attending conferences, searching the Internet for
information, working with customers, job rotation, reading books and
journals, playing video games, and watching TV.
– For example, one Siemens plant places tools in cafeteria areas to take advantage of
the work-related discussions taking place. Even installing whiteboards with markers
can facilitate informal learning.
– Google supports on-site cafeterias, with free or subsidized food. Employees eat
together, and through their interactions learn new ideas and build stronger
relationships.
 Job Instruction
• Job instruction : This is training directly
received on the job. Here the trainee receives an
overview of the job.
• The trainer actually demonstrates the job and the
trainee is asked to copy the trainer’s way.
• The trainee, finally, tries to perform the job
independently.
 Training at SAS
Through SAS Academics program, newly minted
sales and technical professionals, typically those
just leaving college, get a
thorough onboarding and preparation
experience.
Each of the hires gains access to on-the-job
training and classroom sessions, ensuring they
have the skills they need to succeed before
formally moving into their permanent roles.
 On the Job Training
Advantages Disadvantages
• Economical • Poor learning conditions
• Learning is permanent • Lack of standardization
• Relatively shorter learning • Trainer’s quality
period • May cause wastage and
• Unskilled and semi skilled damage to the machinery
jobs
• Best for jobs that can be
learnt by mere observation
 Off the Job Training
• Lectures : Verbal presentation of information by an
instructor to a large audience

• Discussion : Two way communication that combines

lectures

• Case study : Actual / hypothetical problem is presented

to a training group for discussion
 Off the Job Training (Contd)
• Vestibule Training/Simulation : Attempt to create a
realistic decision making environment for the trainee
• Example, UPS uses a life-size learning lab to provide a
40-hour, 5-day realistic training program for driver
candidates.
• Sensitivity training : Trainees are pooled together
under the guidance of an experienced facilitator who
moderates the discussion
• Committees : Serve purpose of developing good social
relations
 Off the Job Training (Contd)
• Programmed Instructions : Step by step series of
knowledge and mechanism for presenting and checking
on the trainee’s knowledge
• Audio- visual training : Can be used to provide realistic
examples of job conditions and situations in a short time
• Role plays : Human interaction that involves realistic
behavior in imaginary situations
• Virtual Reality: puts the trainee in an artificial three-dimensional environment
that simulates events and situations experienced on the job. Sensory devices
transmit how the trainee is responding to the computer, and the trainee “sees,
feels, and hears” what is going on, assisted by special goggles and sensory
devices.
https://youtu.be/unBgTp5hyMQ
• Online/Internet-Based Training: Most employers are moving from
classroom-based to online-based learning because of the efficiencies involved.
For example, until recently, Utah-based Clearlink’s employee training was
classroom based. Sales agents often returned to the field without being tested
on what they learned, and in general the training was less than effective.
Clearlink switched to online learning. Its trainers turned from classroom training
to creating new online e-learning courses and monitoring training results.
 Off the Job Training (Contd)
• In-basket : To handle files coming in and to finish his
work ; take decisions within a specified time limit. Used
to improve procedural knowledge, decision making skills,
strategic knowledge and communication

• Business games : Providing market situation to the

trainee by asking him to provide solutions

• Computer based training : MOOCs (Massive open

online courses)
 Training Metrics
• ROI of Training= Total benefits/Total Costs

• Payback Period= Total Costs/Monthly Benefits

• Calculate the missing values and then find the
measures of training effectiveness (ROI and
Payback Period.
• Total Cost (rs in 00’s)
= 754, 165
• Total benefits (in 000’s)
= 1,077,321
• ROI= Total benefits/ Total Cost
= (1,077,3210*1000/754, 165*100) = 14.28
• Payback Period= Total Costs/Monthly benefits
= 754,165/(1,077,321/12)= 8.4 months
 Succession Planning
• Succession planning is the systematic process of defining future
management requirements and identifying candidates who best meet
those requirements.
• Succession planning involves using the supply of labor within the
organization for future staffing needs.
• With succession planning, the skills and abilities of current employees
are assessed to see which future positions they may take within the
organization when other employees leave their positions.
• Succession planning is typically used in higher-level organizational
positions, such as executive-level positions

Read more:
https://www.referenceforbusiness.com/management/Str-Ti/Succession-Planning.html#ixzz7JccRMitx
 Succession Planning - Example
For instance, if a company predicts that its Chief
Executive Officer will retire in the near future,
the organization may begin looking months or
even years in advance to determine which
current employee might be capable of taking
over the position of the CEO.
At McKinsey & Company, over 600 senior partners elect
its global managing partner every three years.
Incumbents resubmit themselves for re-election at the
end of three years.
 Succession Planning Examples
• Succession Planning at McDonald’s: • Succession at Axis Bank Ltd: India's third
one of the world’s largest and most largest private sector bank.
successful food service retailers • The CMD of the bank from January 1,
• In 2004- James R. Cantalupo died of 2000 to April 20, 2009 Pangal Jayendra
Nayak (Nayak)- took the bank bank to a
heart attack new level during his tenure
– Charles H Bell- severely ill
• Severely criticized as he failed to identify
– James Skinner
and groom an able successor to lead the
• Job shadowing for succession bank after the end of his tenure
• “Plan to Win” • Global HR firm- Egon Zehnder
– Operational Excellence International identified Shikha Sharma,
– Leadership the then CEO and chairman of ICICI
– Marketing and Innovation Prudential Life Insurance Company Ltd., as
the new CEO and MD of Axis Bank.
Steps in Succession Planning
1. Human resources
planning
2. Assessing needs
3. Developing managers
4. Developing
replacement charts
5. Identifying career paths
Problems with Succession Planning

1. The crowned prince syndrome

2. The talent drain
3. Managing human resources
information
 Activity on Succession
• Read and discuss the Succession
Planning at Axis Bank (CEO and
MD- Ms Sakshi Sharma)
Performance appraisal
 Meaning - Definition
•Performance appraisal is the step
where the management finds out how
effective it has been at hiring and placing
employees.

•A “Performance appraisal” is a process

of evaluating an employee’s performance of
a job in terms of its requirements.
(NATIONAL ACADEMIC PRESS)
 Objectives of Performance Appraisal
Employees Organizations

concrete and tangible measuring the efficiency

particulars about their maintaining

work organizational control.

assessment of
performance
 Performance Appraisals Aims at
Personal development
work satisfaction
involvement in the organization.
Mutual goals of the employees & the organization.
growth & development
increase harmony & enhance effectiveness

https://youtu.be/7CX73qOuIiE
 Importance of Performance Appraisals
• Employee recognition and rewards
• New challenges and clear objectives
• Continued progression and development
• Culture of trust and openness
• within appraisal systems will help employees to feel
more able to approach and discuss any ideas or issues
outside of these meetings as well.
• Support and training
• Prevention of long-term dissatisfaction
• Supporting staff to deliver an effective appraisal
system
 Process of PA
• Setting Performance
Standards
• Communicating Standards
• Measuring Standards
• Comparing Standards
• Discussing Results
• Taking Corrective
Standards
 Methods of Performance Appraisals
Traditional Methods Modern Methods
1. Assessment Center
1. 1. Paired comparison
2. Graphic Rating scales 2. Appraisal by Results
3. Forced choice Description method
4. Forced Distribution Method 3. Management by Objectives
5. Checks lists 4. Human Asset
6. Free essay method
7. Critical Incidents
Accounting
8. Group Appraisal 5. Behaviorally Anchored
9. Field Review Method
10. Confidential Report 6. Rating scales
11. Ranking
• Note – Self-learning topic (Slides 34-50)
 Traditional Appraisal Methods
1) Rating Scales Method
It is a popular traditional method of performance appraisal. In
this method, a rating scale is created to evaluate the
performance of employee against certain parameters. These
parameters usually include his attitude, attendance, punctuality
and interpersonal skills. The rating scale used in this method
ranges from 1 to 10. Low score indicates negative feedback
and high score indicates positive feedback.

Example:
This employee is a team player and thrives in a team
environment.

Rate the employee on their quality of work.

 Traditional Appraisal Methods
2) Checklist Method
In this method, a checklist is prepared. It is comprised
of descriptive statements related to behavior of the
employee. Each statement has two options, Yes & No
or True or False. The rater can choose one out of two
options which he thinks correctly describes the
behavior of the employee.
 Traditional Appraisal Methods
3) Forced Distribution Method
This method was popular in big organizations. It is based on the fact
that the performance of employees varies greatly in an organization,
some would be more productive and some would be less productive.
So in this method, the manager is forced to distribute employees on
the basis of their performance on all points of the bell shaped scale.
Some fall into outstanding zone, some into average and some into
the bottom region of the curved scale.
General Electric, adopted the forced distribution method in the
1980s. It was one of the first companies to adopt it.
Traditional Appraisal Methods

4) Critical Incident Method

Critical incident method gives emphasis on
critical behaviors of employees such as the
reaction of employee to a certain situation. So in
this method, the performance is evaluated
against a list of critical behaviors.

For example,
On July 22 the manager efficiently handled an
annoyed customer. He was very prompt and
polite in solving the issue ? It is a positive critical
incident.

On July 22, the manager was very rude in

handling an annoyed customer ? it is a negative
critical incident.
 Traditional Appraisal Methods
5) Essay Method
In this method, the rater writes a description
about the behavior and performance of the
employee. The description includes all relevant
information like employee’s attitude, job
knowledge, current performance and potential
for growth.
6) Paired Comparison Method
Traditional Appraisal Methods
In this method, one particular trait is
considered to evaluate the employees. Based
on this trait, each employee is compared with
others on one to one basis, in pairs. The
possible number of pairs is calculated by the
formula: N (N-1)/2. N is the number of
employees to be evaluated. Let us understand
it with an example:

There are five employees A,B,C,D,E who are to

be evaluated. So on applying the formula 5(5-
1)/2, there will be 10 pairs to be compared.

A with B B with C C with D D with E

A with C B with D C with E

A with D B with E
 Traditional Appraisal Methods
7) Field Review Method
This method is based on superiors' opinion on
the performance, behavior and skills of the
employee. The HR specialist asks seniors to
answer questions related to employee's
employment and appraises the employee on
the basis of feedback received from the
superiors.
 Traditional Appraisal Methods
8) Confidential Appraisal Method
This method is mostly used in government
organizations to make decisions regarding promotion
and transfer of the employees.
The senior prepares the confidential report on the
performance, behavior and other traits of the
employee.
The report is supposed not to be revealed to anyone.
It is sent in a sealed cover to the concerned officials
who appraise the employee on the basis of this
report and take decisions accordingly.
 Modern Appraisal Methods
1. Management by Objectives (MBO):
The term Management by Objectives was first termed by
management guru Peter Drucker in his 1954 book, The
Practice of Management.

This method focuses on improving the organization’s

performances by defining clear objectives both agreed upon
by the employees and the managers. The objectives set
should be challenging yet achievable. Both managers and
employees should review past performance and pinpoint the
problems. The information acquired then should be used to
address organizational goals and needs.
Modern Appraisal Methods
 Modern Appraisal Methods
2. Psychological Appraisals
A psychological appraisal is one of the most exciting and intuitive
appraisal methods. This method assesses the employees' potential
for future performance rather than their past one. It focuses on
employees' emotional, intellectual, and other personal
characteristics affecting their performance.

3. 360 Degree Feedback

360-degree feedback is a systematic collection and feedback of
performance data for employees collected from all his/her peers,
supervisors, and even customers.
This is one of the most widely used appraisal methods. Since the
participation of the managers, peers, customers are involved,
this method gives an overview of the performance reviews
collectively. This helps in the performance appraisal process to
have a diverse outlook.
 Modern Appraisal Methods
4. Assessment Centre Method
In this method, employees are assessed to participate in activities
like in-basket exercises, role-playing, discussions, computer
simulations, etc. They are evaluated in terms of their persuasive
ability, communication skills, confidence, sensitivity to others’
feelings, mental alertness, administrative ability, etc.
This entire exercise is done under the trainer, who observes the
employee behavior and then discusses it with the rater, which
evaluates the employee's performance.

https://www.performyard.com/articles/3-unique-approaches-to-pe
rformance-management-google-betterment-and-ibm
 Modern Appraisal Methods
5. Behaviorally Anchored Rating Scale (BARS)
• BARS are designed to bring the benefits of both qualitative
and quantitative data to the employee appraisal process.
• BARS compares an individual's performance against specific
examples of behavior anchored to numerical ratings.
It compares an individual's performance against specific
examples of behavior tied to numerical ratings of 5 to 9. The
Behaviorally Anchored Rating Scale is usually represented as a
vertical rating graph. These behavioral anchor points are
collected using Critical Incident Techniques (CIT), which are
procedures used for documenting human behavior that is of
significance in a particular arena.
Modern Appraisal Methods
6. 720 Degree Method
In this method, the assessment is done not only by
the stakeholders within the company but also by the
groups outside the organization.

These external groups who assess the employee's

performance are customers, investors, suppliers, and
other financial institutions.
It is one of the most crucial modern performance
appraisal methods because this is the only group
that determines the organization’s success as a
whole.
 Modern Appraisal Methods
7. Cost Accounting Method
Some may find this method a little harsh, which
may be a convenient appraisal method for others.
This method evaluates the employees' performance
from the economic output an organization yields
from their input. This is ascertained by analyzing
the cost involved in retaining the employees with
the benefits an organization yields from their
inputs.
 Case Study: The Customer Feedback
• Critically evaluate the practice of introducing customers in employee
performance appraisal? Substantiate your point with a real example.
• Read the following scenario and answer the following questions.
Veena: “Rajesh looked very upset when I saw him in cafeteria today
afternoon”
Sridhar: “It is okay, he deserves this. We had warned him when he was giving
rigid performance reviews for his subordinates.”
Veena: “But all he did was carrying out a fair performance review of them,
especially in histeam, certain people were free riding most of the time during
the work.”
Sridhar: “See Veena, such fairness is better not to be followed when a part of
your performance review is in the hands of your subordinates.”
Veena: Hmmm, I wonder, why honesty and integrity is not valued when it
comes to performance at workplace.
 Case Questions
• Define the problem in this case.
• Explain the type of performance appraisal
system mentioned in the scenario.
• Suggest an alternative method for this
performance appraisal system.
• Suggest a few changes in the existing
performance appraisal system.
 Glossary
Electronic Performance Support Systems (EPSS)
Employee Orientation Job Aid
Training Lifelong Learning
Negligent Training Cross Training
Task Analysis Virtual Classroom
Competency Model Web 2.0 Learning
Performance Analysis Management Development
On-the-job Training (Ojt) Job Rotation
Apprenticeship Training Action Learning
Job Instruction Training Case Study Method
(Jit) Management Game
Programmed Learning Role-playing
Behavior Modeling In-house Development Center
Executive Coach
Organizational Development
Controlled Experimentation