HRM Unit 3

UNIT – 3UNIT – 3

TrainingTrainingThe term training is used here to indicate the only process by which the aptitudes, skill and abilities of employees to perform specific jobs are increased.

- Jucius

Training is the organised procedure in which people learn knowledge and / or skill for definite purpose.

- Dale S. Beach

Training is the act of increasing the knowledge and skills of an employee for doing a particular job.

- Edwin B. Flippo

To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved.

Need for TrainingNeed for Training1. To enable the new recruits to understand work

2. To enable existing employees to update skill and knowledge

3. To enable an employee who has been promoted to understand his responsibilities

4. To enable an employee to become versatile

5. To enable the employees to adapt to change in work methods


Importance of TrainingImportance of Training1. Improvement in skill and knowledge

2. Higher production and productivity

3. Job satisfaction

4. Better use of resources

5. Reduction in accidents

6. Reduced supervision

7. Reduction in complaints

8. Adaptability

9. Stability


Training and DevelopmentTraining and DevelopmentDevelopment is related to the all-round progress of an employee. A development programme enables executives to acquire skills in their present jobs and capabilities to perform future jobs better. Training is required to improve skills for performing a job. Development, on the other hand, is related to the all-round progress of executives. While training is job oriented, development is career oriented. Training is essential for operative workers. On the other hand, a development programme is required for executives.


Case StudyCase StudyAmrit Electrical is a family owned company of approximately 250 employees. Mr. Rajesh Khaitan recently took over as president of the company. A short time after joining the company, he, began to following a discussion with the HR director that the pay of the salaried employees was very much a matter of individual bargaining. Factory workers were not a part of the problem because they were unionized and their wages were set by collective bargaining. An examination of the salaried payroll showed that there were 75 employees ranging in pay from that of the president to that of receptionist. A closer examination showed that 20 of the salaried employees were females. Five of these were front time factory supervisors and one was the HR director. The other fourteen were non-management.


Case StudyCase StudyThis examination also showed that the HR director was underpaid and that the five female supervisors were paid somewhat less than any of the male supervisors. However, there were no similar supervisory jobs in which there were both male and female supervisors. When questioned, the HR director said that she thought that the female supervisors were paid at a lower rate mainly because they were women and because they supervised less skilled employees than did the male supervisors. However, Mr. Khaitan was not convinced that this was true. He decided to hire a compensation consultant to help him. Together they decided that all 75 salaried jobs should be in the same job evaluation cluster, that a modified job evaluation method should be used and that the job descriptions recently completed by the HR director were correct and usable in the study, the job evaluation also showed that the HR director and the five female supervisors were being underpaid in comparison with the male employees.


Case StudyCase StudyMr. Khaitan was not sure, what to do. If he gave these four female employees an immediate salary increase which may large enough to bring them upto where they should be, he was afraid the male supervisors could be upset and the female supervisors might comprehend the situation and demand arrears of pay. The Hr director agreed to take a sizeable salary increase with the no arrears of pay. So this part of the problem was solved. Mr. Khaitan believed that he had three choices relative to the female supervisors: (1) To gradually increase their salaries (ii) to increase their salaries immediately (iii) to do nothing.

Questions:1. What would you do if you were Mr. Khaitan?

2. How do you think the company got into a situation like this in the first place?


Methods of TrainingMethods of Training

On-the job training Off-the job training

a) Induction Training

b) Apprenticeship Training

c) Refresher Training

d) Job Rotation

e) Placement as assistants

f) Vestibule Training

a) Lectures & Conferences

b) Role Playing

c) Case study

d) Management games

e) Brain storming

f) Sensitivity training


Evaluation of TrainingEvaluation of TrainingTraining evaluation refers to the process of collecting the outcomes needed to determine if training is effect.

Evaluation of training activity is defined as any attempt made to obtain information, or say, feedback on the effects of training programme and to adjudge the value or worth of the training in the light of that information. The time and money spent in training underlines the need for evaluation of training.


Reason for Evaluation of TrainingReason for Evaluation of TrainingCompanies are investing millions of dollars in training programs to help gain a competitive advantage.

Training investment is increasing because learning creates knowledge which differentiates between those companies and employees who are successful and those who are not.

Because companies have made large dollar investments in training and education and view training as a strategy to be successful, they expect the outcomes or benefits related to training to be measurable.


Steps of training programmeSteps of training programme

1. Identification of training needs

2. Setting training objectives

3. Designing training methods

4. Administration of training programmes

5. Evaluation of training


What is a Career?What is a Career?A career can be defined as all the jobs held by a person during his working life. It consists of a series of properly sequenced role experience leading to an increasing level of responsibility, status, power, and rewards.

According to Flippo, a career is a sequence of separate but related work activities that provide continuity, order, and meaning in a person’s life.


Career PlanningCareer PlanningCareer Planning can be defined as a systematic process by which one decides his/her career goals and the path to reach these goals. Career planning is a managerial technique for mapping out the entire career of employees from the employment stage to the retirement stage. It involves discovery, development, planned employment and reemployment.


Career DevelopmentCareer DevelopmentCareer development is an ongoing process of gaining knowledge and improving skills that will help an individual to establish a career plan.

Career development consists of actions undertaken by the individual employee and the organisation to meet career aspirations and job requirements.


PromotionPromotionPromotion may be defined as an upward movement of an employee’s position in the enterprise. An employee who has been promoted moves to a higher-level job that gives higher salary, greater authority and accountability as well.

A promotion is the advancement of an employee to a better job – better in terms of greater responsibilities, more prestige or status, greater skill and especially, increased rate of pay or salary”.


PromotionPromotionPromotion has following three elements and must be present in 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.


Types of PromotionTypes of Promotion

1. Horizontal promotion

2. Vertical promotion

3. Dry promotion


Purpose of PromotionPurpose of Promotion To recognize an employees skill and knowledge and utilize it to improve the organisational effectiveness. To reward and motivate employees to higher productivity. To develop competitive spirit and inculcate the zeal in the employees to acquire skill, knowledge etc. To promote employees satisfaction and boost their morale. To build loyalty among the employees toward organisation.


Purpose of PromotionPurpose of Promotion To promote good human relations. To retain skilled and talented people. To attract trained, competent and hard working people. To impress the other employees that opportunities are available to them too if they also perform well.


TransferTransferA transfer refers to lateral movement of employees within the same grade, from one job to another.

According to Flippo, “a transfer is a change in the job (accompanied by a change in the place of the job) of an employee without a change in responsibilities or remuneration”.

Transfer differs from promotion in the sense that the latter involves a change of job involving increase in salary, authority, status and responsibility, while all these remain unchanged/stagnant in the case of the former.


Need for TransferNeed for Transfer

1. To meet organisational needs

2. To satisfy employee needs

3. To better utilize employee

4. To make the employee more versatile

5. To adjust the workforce

6. To provide relief

7. To punish employee


DemotionDemotionDemotion is just the opposite of promotion. It is the downward movement of an employee in the organisational hierarchy with lower rank/status and pay.

According to D.S.Beach, “Demotion is the assignment of an individual to a job of lower rank and pay usually involving lower level of difficulty and responsibility.


SeparationSeparationSeparation is a situation when the service agreement of an employee with his/her organisation comes to an end and employee leaves the organisation. In other words, separation is a decision that the individual and organisation part from each other.


RetirementRetirementRetirement is the major cause of separation of employees from the organisation. It can be defined as the termination of service of an employee on reaching the age of superannuation. For example, at present the superannuation age for the teachers working in the Central Universities is 62 years and is case of some state government employees, it is 58 years.


ResignationResignationResignation is termination of service by an employee by serving a notice called ‘resignation’ on the employer. Resignation may be voluntary or involuntary.

A voluntary resignation is when an employee himself/herself decides to resign on the grounds of ill health, marriage, better job prospects in other organisations, etc.

Resignation is considered involuntary or compulsory when the employer directs the employee to resign on grounds of duty and indiscipline or face the disciplinary action.


DismissalDismissalDismissal is termination of service of an employee as a punitive measure. This may occur either on account of unsatisfactory performance or misconduct. Presistent failure on the part of employee to perform upto the expectations or specified standard is considered as unsatisfactory performance.

HRM Unit 3

Education

Transcript of HRM Unit 3