Module 4

TRAINING AND DEVELOPMENT

CAREER DEVELOPMENT (SELF STUDY)
PERFORMANCE MANAGEMENT
COMPENSATION MANAGEMENT
Training and Development
Training vs Development

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Orientation and Onboarding

Is it important?

List some information that HAS to be shared during this phase

Any interesting experiences?

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The Training Process (ADDIE)

Analyze the training need

Design the overall training programme

Develop the course (actually assembling/creating the training materials)

Implement training, by actually training the targeted employee group using

methods such as on/off-the-job or online training

Evaluate the course’s effectiveness

 Training Need Analysis (TNI,TNA)
Strategic TNA
Current TNA
Task Analysis (New employees)
Performance Analysis (Existing employees)
Performance appraisals: Job-related performance data (including productivity, absenteeism and tardiness, grievances, waste,
late deliveries, product quality, downtime, repairs, equipment utilization, and customer complaints)
Observations by supervisors or other specialists
Interviews with the employee or his or her supervisor
Tests of things like job knowledge, skills, and attendance
Attitude surveys
Individual employee daily diaries
Assessment center results
Special performance gap analytical software

Check - Is Training really the solution (Can’t Do/Won’t Do)

 Designing the Training Programme
Design means planning the overall training program including training objectives, delivery methods, and program
evaluation.

Learning Objectives (Instructional objectives): Specify in measurable terms what the trainee should be able to do after
successfully completing the training programme

Needs to address needs identified and be feasible to attain (time, effort and cost considerations)

Creating a Motivational Learning Environment: Ensure a culture that is ‘pro-training’

Make it meaningful – let them perceive the need

Make skills transfer obvious and easy

Reinforce the learning – feedback

Content

Methodology

Budget

Approval
 Developing the Programme
Design provides the proposal or the skeleton, Developing focuses on fleshing out the details

Specific content – depth and flow

Methodology

Equipment and other materials

Inhouse vs Outsource

Communication and support plan – Before/During/After

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 Implementation
On the Job Training (OJT) Vs Off the Job Training
Coaching / Peer Training
Understudy
Job Rotation
Special Assignments
Apprenticeships
Job Instruction Training (JIT)
Lectures
Programmed Learning
Behaviour Modeling
Audio-visual based training
Vestibule Training / Simulations
 Management Development
Why?

Promotion from within is a major source of management talent

Facilitates organizational continuity

Succession planning efficiency

How?

OJT - Job Rotation

Off the Job – Case Study, Management Games, Seminars, Executive Education, Role Playing, Corporate
Universities, Executive Coaches,

Who?
HIPPO

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 Evaluation
How to measure?

Pre and post

Controlled experiments

What to measure?

Reaction

Learning

Behaviour

ROI
Performance Management
 Caselet 1 (Performance Management)
Rudolph joins Grinch & Co on January 1, 2019. His Key Result Areas (KRAs) were listed as follows:

Focus Area KRA Weightage Actual

SMART Goal Setting
Financial Reduce cost of operation 20% Reduced INR 5000 over the year (From
25L to 24,95,000)
S = Specific
Customer Increase Client Base 30% Increased 1 new client (From 60 clients
to 61 clients)
M = Measurable
People Ensure associates are trained 25% 80% of new associates trained, others
know the system
A = Attainable
Process Reduce duration of overdue bills 25% Reduced by 2 days
R = Relevant
(From average of 90 days to average of
88 days)
*This is over and above the usual credit
T = Time-bound
period of 90 days
You are his boss. How would you evaluate this performance?
What can be improved?
 Performance Appraisal
What?
Setting Standards
Evaluation of Performance
Sharing feedback
Why?
Important input for Compensation, Career Development and Continuity
Central process of control in fulfilling Organisational Objectives
Growth Initiative – Focuses on corrective actions
Training Need Identification
Basis?
Tasks
Traits
Competencies
 Performance Appraisal
Who?

Supervisors

Peers

Subordinates

Customers

Self

Rating Committees

360 degree vs 720 degree appraisals

 Performance Appraisal – How?
Graphic Rating Scale:
A scale that lists a number of traits and a range
of performance for each. The employee is then
rated by identifying the score that best
describes his or her level of performance for
each trait.

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 Performance Appraisal – How?
Alternation Ranking Method:

Ranking employees from best to worst on a

particular trait, choosing highest, then lowest,
until all are ranked.

Paired Comparison Method:

Ranking employees by making a chart of all

possible pairs of the employees for each trait
and indicating which is the better employee of
the pair.

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 Performance Appraisal – How?
Forced Distribution Method:

Similar to grading on a curve; predetermined

percentages of ratees are placed in various
performance categories. (Popular in many
organisations, although they are trying to come out
of it)

Critical Incident Method:

Keeping a record of uncommonly good or

undesirable examples of an employee’s
work-related behavior and reviewing it with the
employee at predetermined times.

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 Performance Appraisal – How?
Behaviourally Anchored Rating Scales
(BARS):

An appraisal method that aims at combining the

benefits of narrative critical incidents and
quantified ratings by anchoring a quantified
scale with specific narrative examples of good
and poor performance.

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 Performance Appraisal – How?
Narrative Forms/ Essay Appraisals:

The supervisor’s narrative assessment helps the employee under- stand where his or her performance was good or
bad, and how to improve that performance.

Management by Objectives (MBO):

MBO requires the manager to set specific measurable, organizationally relevant goals with each employee, and then
periodically discuss the latter’s progress toward these goals.

Using Technology to support Appraisals:

Makes it easier to monitor, real-time feedback is possible, makes improvements to reduce rater-bias and thereby
enhances transparency.
 Performance Appraisal – Pitfalls?
Ill-defined Standards (Target / Behaviour / Competency)
Rater Bias:
Halo Effect
Central Tendency bias
Leniency / Strictness bias
Recency Effect
Contrast Effect
Performance management to be taken seriously at every stage and not to be done ‘for the sake of it’.
Becomes a powerful tool to build the desired culture and attain consistently higher levels of employee
engagement.
Compensation Management
Compensation Strategy

Aligned reward strategy means creating a compensation package that produces the employee behaviours the
firm needs to achieve its competitive strategy.
Are we rewarding for experience (seniority) or performance?
Are we transparent and clear on “who” is a top/average/low performer?
Are we providing for geographical differences in Cost-of-living index?
Employee Compensation: All forms of pay or rewards going to employees and arising from their
employment.
Direct financial payments: Pay in the form of wages, salaries, incentives, commissions, and bonuses.
Indirect financial payments: Pay in the form of financial benefits such as insurance.
Ensure compliance with the appropriate laws that are prevalent
A good compensation strategy helps in attracting and retaining top talent and ensures that the right culture
prevails
Typical Compensation Structure

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Equity in Compensation

External equity refers to how a job’s pay rate in one company compares to the job’s pay rate in other
companies.
Internal equity refers to how fair the job’s pay rate is when compared to other jobs within the same
company (for instance, is the sales manager’s pay fair, when compared to what the production manager
earns?).
Individual equity refers to the fairness of an individual’s pay as compared with what his or her
co-workers are earning for the same or very similar jobs within the company, based on each person’s
performance.
Procedural equity refers to the “perceived fairness of the processes and procedures used to make
decisions regarding the allocation of pay.”

These are fundamental principles in designing compensation approaches and deciding specific
amounts that translate as employee salaries and wages.
How to ensure ‘equity’?
Salary Surveys

Job analysis and Job evaluation

Performance Management (Appraisals) and related payouts

Strong and transparent communication and grievance redressal mechanisms

Ethical Dilemma: Do you share details of your compensation with your co-workers or not?
What are the implications?
 Managerial Compensation
Compensation for a company’s top executives usually consists of four main elements:

Base Pay – Fixed component.

Short-term incentives – Variable component of annual CTC.

Long-term incentives – includes things like stock options; these generally give the executive the right to purchase
stock at a specific price for a specific period.

Executive benefits and perks: includes things such as supplemental executive retirement pension plans.

With so many complicated elements, employers must also be alert to the tax and securities law implications of their
executive compensation decisions.
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 Alternative Approaches to Compensation
Competency Based Pay

Broadbanding

Addressing gender parity in pay

Broad oversight of executive pay

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All said and done, total rewards has to be the mantra as financial payouts will only go so far to attract and retain

top talent – if not backed by favourable policies (EAP, Flexi-options), culture (performance driven), teams (R&R)

and challenges.