understanding of an employee’s total environment ...

RBI Grade B 2019

Chapter 5 -Training and Development– Career Planning –– Feedback and Performance Counselling -Rewards – Employee Welfare.

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Training and Development :-

Before you start;

Training and development lecture

The efficiency of an organization depends directly on the capability and talent of its personnel,

and how motivated they are. Capability of a person depends on his ability to work and the type

of training he receives. While his personal capability is evaluated through proper selection

procedure, his training is taken care of by the organization after he has been employed by the

organization. After employee have been selected for various positions in an organization,

training them for those specific tasks to which they have been assigned assumes great

importance. It is true in many organizations that before an employee is fitted into a harmonious

working relationship with other employees, he is given adequate training. Training is the act of

increasing the knowledge and skills of an employee for performing a particular job. The major

outcome of training is learning. A trainee learn new habits, refined skills and useful knowledge

during the training that helps him improve performance. Training enables an employee to do

his present job more efficiently and prepare himself for a higher level job.

Difference between Training, Education, Learning, Development -

Training - Training is an act of increasing knowledge, skill and attitude of an employee

for improving his performance on the job. Training is concerned with imparting specific

skill for doing particular job. For example, a clerk on typing. It is task-oriented activity. It

is for job related purpose and short-term.

Education - Education is concerned with increasing general knowledge and

understanding of an employee’s total environment. Education is directed more towards

the future of an individual .It prepares him for future challenges of life, shapes his career

and grooms him for social responsibilities.

Learning - Learning is the process of accumulation of knowledge, skills and attitudes by

whatever means. Learning is a broad one which includes both training and education.

https://www.youtube.com/watch?v=4RQ0PXArEJU&index=23&list=PL_a1TI5CC9RGaSYCxb_HEsHA8zBJP6asZ

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Learning is observable modification of behaviour as a result of some experience.

Learning may be through experience, reading, observation, discussions, electronic

media including internet, experimentation, facing the new challenges, travel and

exploration, etc.

Development - Development has a broader meaning. Its aim is to grow or improve the

overall personality of an individual. It is continuous process and is on the initiative from

individual. Development is to meet an individual’s future needs. Efforts towards

development often depend on personal drive and ambition. It helps individuals in the

progress towards maturity and actualization of their potential capabilities. Development

is whole process by which employee learns, grows, improves his abilities to perform

variety of roles within and outside the organization. He acquires socially desirable

attitude and values.

Need for Training :-

Employees selected for a job might lack the qualifications required to perform the job In

some cases, the past experience, attitudes and behavior patterns of experienced

personnel might not be appropriate to the new organization. Remedial training should

be given to such people to match, the needs of the organization. New employees need

to be provided orientation training to make them familiar with the job and the

organization.

Rapid technological innovations impacting the workplace have made it necessary for

people to constantly update their knowledge and skills.

Training is necessary to preparing employees for higher-level jobs (promotion).

Existing employees require refresh training so as to keep abreast of the latest

development in job operations. In the phase of rapid technological changes, this is an

absolute necessity.

Training is necessary when a person moves from one job to another (transfer).

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Training is necessary to make employees mobile and versatile. They can be placed on

various jobs depending on organizational needs.

Training is needed for employees to gain acceptance from peers.

Training is needed to make employees more productive and useful in the long run.

Stages in a Training Program :-

The success of a training program is evaluated in terms of the end result or the increase in

the work ability, skill or competency in the trainee. For any training program to be successful it

is very essential to follow a certain process.

The process of training begins with the needs assessment stage. The aim of the

assessment stage is to understand whether or not training is required. If the answer is

yes; the next step is determining competency or skills gaps and the appropriate training

intervention required. The training intervention is essentially decided in terms of attitude,

knowledge and skill (ASK), the combination of which is called as competency. The

assessment also called as the ‘training needs analysis’ is undertaken at three levels, the

job, the individual and organizational analysis.

Once the training needs analysis is complete, the next stage is that of Development.

This stage involves the development of content and the training material. Right from

designing the appropriate environment to deciding the various tools, everything is taken

care of in the development stage. Games, A/V’s, Case Studies, Class room intervention

are various means that may be decided upon apart from the content delivered. For

example, in behavioural training emotional intelligence, teamwork, listening are

examples of competencies that are required to perform superior work. The same may

be transferred into the trainees through any of the above means depending upon

various factors like demographics, job nature etc which are taken care of in the first

stage.

The most important stage and perhaps the least talked upon from the training process is

the delivery. Once the development stage is over it is time to conduct the training.

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Factors like time and venue of delivery are already decided in the earlier stages. There

are various factors that determine the process of delivery like the participant

demographics, the training intervention, the individual style of the trainer etc. This brings

in a lot of diversity to the training programs.

Evaluation is the last stage in the training process and more important from the

perspective of evaluation of the effectiveness of training. Needless to say, it is aimed at

analysing whether or not the training has been effective in achieving the objective

(bridging the competency gap, changing the attitude, developing new skills etc). There

are various ways in which the effectiveness of training programs can be evaluated but

not many are able to answer in terms of ROI. The most effective tool for evaluation of

training is the Kirk Patrick Model of Evaluation.

Training need analysis :-

As mentioned earlier, the needs analysis / assessment is carried out at three levels -

organizational, Individual and Job. We now take up each one of them in detail.

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Organizational Analysis - The organizational analysis is aimed at short listing the

focus areas for training within the organization and the factors that may affect the same.

Organizational mission, vision, goals, people inventories, processes, performance data

are all studied. The study gives cues about the kind of learning environment required for

the training. Motorola and IBM for example, conduct surveys every year keeping in view

the short term and long term goals of the organization.

Job Analysis - The job analysis of the needs assessment survey aims at

understanding the ‘what’ of the training development stage. The kind of intervention

needed is what is decided upon in the job analysis. It is an objective assessment of the

job wherein both the worker oriented - approach as well as the task - oriented approach

is taken into consideration. The worker approach identifies key behaviours and ASK for

a certain job and the task - oriented approach identifies the activities to be performed in

a certain job. The former is useful in deciding the intervention and the latter in content

development and program evaluation.

Individual Analysis - Individual analysis is concerned with who in the organization

needs the training and in which particular area. Here performance is taken out from the

performance appraisal data and the same is compared with the expected level or

standard of performance. The individual analysis is also conducted through

questionnaires, 360 feedback, personal interviews etc. Likewise, many organization use

competency ratings to rate their managers; these ratings may come from their

subordinates, customers, peers, bosses etc. Apart from the above mentioned

organizations also make use of attitude surveys, critical Incidents and Assessment

surveys to understand training needs.

Development of a Training Program :-

Development of a training program is the next step after the training need analysis has

been conducted and there is a clear consensus on the need of training within the organization.

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Designing the Environment - Every individual is unique. One style of learning may

not be applicable to each of the participants in a training program. Therefore ‘how do various

individuals learn’ is what should be kept in mind while designing the training program. There

are certain who learn the experiential way by doing and yet there are many who like the lecture

based learning method. There are however pros and cons of both and the appropriate learning

style is generally the discretion of the trainer / facilitator.

Establishing the Variables - train-ability (capable of being trained) is one factor that

must be taken into consideration before developing any training program. It is the duty of the

trainer to ensure that the employees are actually willing to sit and learn something in the

training program. This is especially very true of sensitivity training that is not viewed positively

by many. Train-ability also implies that the employee is sufficiently motivated to learn apart

from just the ability to do so. Before any training program sets off, it is the responsibility of the

trainer to build hype about the event and such that it attracts all types of employees from target

audience within the organization.

There are both formal and informal ways of doing the same. Formal ways would be by

sending mails to the employees who are supposed to attend the program. Informal ways would

be just creating conditions for discussion in the cafeteria or the lounge where employees sit

together, discuss and hear things on the grapevine. Once the training program has been

delivered the evaluation of the same provides inputs for improving the process of training.

These are called as the ‘post learning inputs’. This evaluation which is conducted at various

levels may be utilized accordingly. Most of the organizations evaluate training on the basis of

Kirk Patrick Model. The feedback at each level - learning, reaction, behavior and results can be

used for effective design of training in future.

Efficient Transfer of training Programs :-

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There are certain practices that have been designed for both the training session and the

workplace. An implementation of these will ensure an efficient transfer of the learning’s and

subsequent reinforcement. Some of these steps / practices are mentioned below: -

Training should match the Workplace: Most of the training programs tend to be

idealist in nature. The trainees leave with a good positive impact but they find a huge

disconnect when they try to implement the same at their workplace. For good learning

the context of training and the context of job should be the same.

Labeling: one good way to reinforce the learning or the important aspects of the

training program is to name them appropriately such that they have a good recall rate

after the training is over.

Create a Supportive Environment at Work: Managers or senior management people

should try and create an environment that reinforces the learning and allows the

trainees to apply new skills at their workplace. This may involve giving the employees

freedom to be more entrepreneurial, innovative and risk taking.

Continued Learning: It is the jurisdiction of the management to ensure that learning be

taken as a continual process rather than a onetime process. This means that there

should be continuous follow-ups after training either by external consulting agencies or

through an in house expert. Sometimes retraining may be required for continual skill up

gradation and development.

Practice: Employees should be compelled to practice new skills. One of the better ways

is to remove the existing obsolete tools of work, so that people become out of practice

of using those.

Opportunity: In many organizations it was found out that it was the management and

the work procedures that acted as a hindrance in implementation of new concepts. For

example, in a certain study involving air force pilots it was found out that the trainees

were given the opportunity of practicing only 50% of the tasks they learnt in the training!

This is also true to mid-sized corporations that have a centralized functioning requiring

approval for even minor changes.

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Train - Practice - Train: This involves supporting the employees to learn new skills,

practice them in between various training sessions. University of Michigan’s center for

Learning and Development offers a management development program where

employees attend training for one week and practice them for the next three weeks

before coming back for the next intervention. These trainees spend the three weeks

working on organizational analytics, development and organizational system projects

etc.

Training Evaluation :-

Kirkpatrick’s Model of Training Evaluation - This model of training evaluation was

developed by Donald Kirkpatrick. He laid out five (fifth being added recently) levels for

evaluation of any training. The beauty of the model is that each level can only be predicted

when the lower level prediction is complete. Thus evaluation at the level of behaviour may not

be useful unless evaluation at the knowledge has been completed.

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Reaction - Reaction implies how favorably the participants have responded to the

training. This evaluation is primarily quantitative in nature and is a feedback to the

training and the trainer. The most common collection tool is the questionnaire that

analyses the content, methodology, facilities and the course content.

Learning - At the level of learning the evaluation is done on the basis of change in the

ASK (Attitudes, skills and knowledge) of the trainees. The evaluation involves

observation and analysis of the voice, behaviour, text. Other tools used apart from the

observation are interviews, surveys, pre and post tests etc.

Behaviour - Behavior evaluation analyses the transfer of learning from the training

session to the work place. Here the primary tool for evaluation is predominantly the

observation. Apart from the observation, a combination of questionnaires and 360

feedbacks are also used.

Result - The results stage makes evaluations towards the bottom line of the

organization. Here the definition of the results depends upon the goal of the training

program. The evaluation is done by using a control group allowing certain time for the

results to be achieved.

Return of Investment (ROI) - Return on investment (ROI) measures the gain or loss

generated on an investment relative to the amount of money invested. There are costs

incurred towards the training needs analysis, compensation of the training program

designers, procurement of training material and various media like the computers,

handouts, props, gifts and prizes, audio visuals etc. Then there is another category is

costs incidental to the training session itself such as trainers fee / salary, facility costs /

rental etc. Finally there are costs involved is losing a man day of work (for those who

are sent for training), travelling, boarding and lodging and training material that cannot

be reused in some other training program.

Types of Training :-

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On the Job Training - When an employee learns the job in actual working site in real

life situation, and not simulated environment, it is called On-the-job training and also

called as Workplace training. Employee learns while working. Take the instance of

roadside mechanics. Small boys working there as helpers learn while helping the head

mechanic. They do not learn the defect analysis and engine repairing skills in any

classroom on engine models. This type of training, also known as job instruction

training, is the most commonly used method. Under this method, the individual is placed

on a regular job and taught the skills necessary to perform that job. The trainee learns

under the supervision and guidance of a qualified worker or instructor. On-the-job

training has the advantage of giving firsthand knowledge and experience under actual

working conditions. While the trainee learns how to perform a job, he is also a regular

worker rendering the services for which he is paid. The problem of transfer of trainee is

also minimized as the person learns on-the-job. The emphasis is placed on rendering

services in the most effective manner rather than learning how to perform the job. On-

the-job training methods include job rotation, coaching, job instruction or training

through step-by-step and committee assignments. Different Models under this method

of training are :

o Job Rotation - This type of training involves the movement of the trainee from

one job to another. The trainee receives job knowledge and gains experience

from his supervisor or trainer in each of the different job assignments. Though

this method of training is common in training managers for general management

positions, trainees can also be rotated from job to job in workshop jobs. This

method gives an opportunity to the trainee to understand the problems of

employees on other jobs and respect them. Job rotation method has been using

in the Indian banking sector mainly by State bank group for the probationary

officers for the period of approximately 2 years to finally post them as assistant

bank manager. Under this method of training candidates are placed in each and

every job starts from clerical job, assistant, cashier and managerial job for the

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purpose of knowing importance in nature of every job before handling Asst bank

manager position. Advantages of job rotation of an employee are eliminate

boredom of an employee, encourage development, give employees a break from

strenuous job duties, helps HR manager identify where employee work best and

gives HR manager a backup plan if an employee leaves. Disadvantages of job

rotation of an employee are could be costly and time-consuming for

organization, could end up with disgruntled employees, it won't fix all your

problems in the business, job rotation of an employee might not be feasible for

some industries and finally your business could suffer.

o Coaching - The trainee is placed under a particular supervisor who functions as

a coach in training the individual. The supervisor provides feedback to the trainee

on his performance and offers him some suggestions for improvement. Often the

trainee shares some of the duties and responsibilities of the coach and relieves

him of his burden. A limitation of this method of training is that the trainee may

not have the freedom or opportunity to express his own ideas.

o Job Instruction - This method is also known as training through step by step.

Under this method, trainer explains the trainee the way of doing the jobs, job

knowledge and skills and allows him to do the job. The trainer appraises the

performance of the trainee, provides feedback information and corrects the

trainee.

o Committee Assignment - Under the committee assignment, group of trainees

are given and asked to solve an actual organizational problem. The trainees

solve the problem jointly. It develops team work.

o Apprenticeship - Apprenticeship is a formalized method of training curriculum

program that combines classroom education with on-the-job work under close

supervision. The training curriculum is planned in advance and conducted in

careful steps from day to day. Most trade apprenticeship programs have a

duration of three to four years before an apprentice is considered completely

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accomplished in that trade or profession. This method is appropriate for training

in crafts, trades and technical areas, especially when proficiency in a job is the

result of a relatively long training or apprenticeship period, e.g., job of a

craftsman, a machinist, a printer, a tool maker, a pattern designer, a mechanic,

etc.

o Internship - Internship is one of the on-the-job training methods. Individuals

entering industry in skilled trades like machinist, electrician and laboratory

technician are provided with thorough instruction though theoretical and practical

aspects. For example, TISCO, TELCO and BHEL select the candidates from

polytechnics, engineering colleges and management institutions and provide

apprenticeship training. Apprenticeship training programmes are jointly

sponsored by colleges, universities and industrial organizations to provide the

opportunity to the students to gain real-life experience as well as employment.

Exhibit presents the benefits of apprenticeship training.

Off-The job Methods - There are many management development techniques that an

employee can take in off the job. The few popular methods are

o Case Studies - Case Studies try to simulate decision-making situation that

trainees may find at their work place. It reflects the situations and complex

problems faced by managers, staff, HR, CEO, etc. The objective of the case

study method is to get trainees to apply known concepts and ideologies and

ascertain new ones. The case study method emphasize on approach to see a

particular problem rather than a solution.

o Business Game method - Under this, scheme an atmosphere is created in

which the participants play a dynamic role. Usually management games consist

of several teams which represent competing groups. Each team consists of 2 to

6 persons. Each team has to make discussion and to arrive at decisions

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concerning such as production; pricing, research expenditure. The participants

are assigned such roles as Managing Director, General Manager etc. They make

decisions affecting price level, production volume and inventory levels etc. These

business games are intended to teach trainees how to take management

decisions in an integrated manner. The results of their decisions are then

compared by a computer programme. The participants learn by analyzing

problems and by making trial and error method.

o Equipment Simulator - Equipment simulators are the mechanical devices that

necessitate trainees to use some actions, plans, measures, trials, movements, or

decision processes they would use with equipment back on the their respective

work place. This is the technique of working up a real thing, in which a situation is

created and attempt is to made to make it resembled to the actual situation. So a

duplicate atmosphere but like original sense is created. The literature on socio-

technical approaches to organizational development provides guidelines for the

design or redesign of tools. Human Resource professionals involved in propose

of simulators and their pre-testing should engage those who will be using the

equipment and their supervisors. Their input can help in reducing the potential

resistance, errors in the equipment and more importantly, it also increases the

degree of reliability between the simulation and the work setting.

o In-Basket Technique - In this method, each team of trainees is given the

different files of correspondence of the business problems. These are also called

business papers like memorandum, reports and telephone messages and other

general papers which come across the table of the manager. The trainees are

asked to study them, analyse them and make their comments on the file.

Performance Counselling :-

Performance Counseling is very important for employees to know the level of their

performance and the area in which they need to improve. Performance counseling is a very

useful activity provided both the counselor and the counselee take it in the right spirit. It helps

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the employee as well as the organization to identify weaknesses and then to formulate

strategies to improve the performance. Performance improvement ultimately helps the

organization to meet its goals and objectives. It is always important to evaluate the

performance of the employees periodically to find out their level of efficiency. Some standard

methods have been devised to make employees understand how far they are from the

expected standards so that their performance can be improved. Those employees who lag

behind in certain key performance areas must be assisted to analyze and improve their

performance levels. Therefore the process of performance appraisal helps to evaluate and

improve the performance of the employees so that they can give their best to achieve the

goals of the organization as well as achieve better career satisfaction.

It attempts to help the employee in:

1. Understanding himself - his strengths and weaknesses.

2. Improving his professional and interpersonal competence by giving him feedback about

his behavior.

3. Setting goals and formulating action plans for further improvement.

Constituents of Performance Counselling:-

The process of Performance Counselling involves 3 main sub processes -

Communication - It refers to the interaction between the superior and the subordinate.

It may be the conversation in setting the goals of the department or individual goals. It

may also include the discussion during performance review or appraisal feedback.

While communicating to a person or an employee it should be kept in mind that an

individual perceives every problem or an issue differently. So, in order to make

communication complete it should be clearly understood by the recipient. People speak

much more from their body gestures than words, which is a very important part of

communication. Hearing and listening are two different types of communication, which

have varying degree of attentiveness. Listening to feelings and concerns is very

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important for effective counseling. No process is complete without feedback. Similarly, a

communication process also involves feedback to know what the other person has

understood.

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Influencing - It means to make impact on a person in a relationship. This plays an

important role in counseling too. Flanders (1970) makes distinction between two modes

of influences, one called as direct mode of influence and the other as indirect mode of

influence. The direct mode of influence means restricting the freedom of others like

criticism or punishment while indirect mode of influence means to give more freedom to

others like praise or recognition. Some behavioural scientists say that change in a

person can be brought through positive reinforcement and not negative reinforcement.

Influencing would involve providing encouragement and reinforcing success so that a

person can take initiatives and experiment with his new ideas.

Helping - In order to help or support a person one should know the need of an

individual. A boss who shows concern for his employees can gain their support. The

main purpose of performance counseling is to feel for the subordinate and empathies

with him. Without such genuine concern, counseling may only degenerate into a ritual or

fruitless exercise.

Process Of Performance Counselling :-

Rapport Building - This is essential to make a counseling period effective, it involves

generating confidence in an employee so that he opens up and shares his perceptions,

feelings, experiences and problems. This is like an initial phase of an interview. Firstly,

the counselor should make the person feel comfortable by offering a chair, asking the

secretary not to disturb, asking for the employee’s choice for tea or coffee etc. This

makes the employee relaxed. This is also called as creating an acceptable climate. The

employee starts feeling that he/she is an important person and the counselor is paying

attention to understand him/her

Listening - Listening is an important part of counseling. Some special body gestures

like maintaining eye contact during conversation, leaning forward etc., communicate

that the person is interested in listening or willing to participate in the communication

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process. The counselor listens to the employee problems patiently. Here the counselor

need to revert back and make the employee feel that he has been understood in the

same way as desired. Eg- A person says, “Efforts carry no worth in this organization.”,

“You do but no rewards”. This shows that the employee is angry. Now the counselor

should communicate this back to the employee by repeating the lines or asking a

question like, Do you mean to say that in spite of lot of efforts people do not get what

they deserve? Such a mirroring would help the employee to feel that he has been

understood in the right way.

Not being Judgmental - A counseling session helps people to understand better but

not to criticize them or tell them that what they have done was literally wrong. This

makes people defensive and non receptive. Then the communication ends up being a

wasteful exercise.

Define the problem - It means to identify the actual problem. A counselor should

encourage the employee to define the problem for himself with sympathetic listening

and careful questions.

Plan of action - A counseling session should end up with a specific plan for the

development of an employee i.e., identification of training need, job rotation, increased

responsibility, etc. While planning the future course of action the counselor should

encourage the counselee to generate more ideas by brainstorming. After the generation

of these alternatives the best one should be selected by assessing the advantages and

disadvantages of the various options.

Stay Alert - The meeting ought to be planned and it should be decided how to tackle

the cases and change the direction in the light of new ideas and information.

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Conclude the meeting - A counselor should help out the employee in deriving a

solution to the problem. The solution should be realistic which has practical feasibility.

This can be initiated by raising questions like, “What do you think is the best way to deal

with situation?”

Feedback - It is extremely important that the feedback is communicated in a manner

that produces a constructive response in the subordinate. Given below are some

guidelines that could be followed in giving feedback :

o Feedback should be descriptive and non- evaluative. Rather than putting the

employee in a defensive position by telling him” Your coming in late convinces

me that you are not serious about your work”, a manager may say, “I notice that

you have been regularly coming late and I am deeply concerned about this”.

o It should be focused on the behavior of the person rather than on the person

himself. It is necessary to distinguish between the individual and his behavior in

conveying the negative feedback. It should be clear to the employee that what is

being rejected or criticized is some specific behavior of his. The intent is not to

condemn the employee as an individual.

o When conveying feedback, it is generally desirable to back it up with few

examples of actual events. Care must be exercised not to overdo this as the

subordinate may misinterpret it that the superior is systematically building up a

well-documented case against him.

o Feedback should be given timely. It should be given at the first opportunity when

the employee is in the receptive mood.

o Feedback should be continuous. It should become a regular practice so that the

subordinate develops an ability to accept and act upon the feedback.

o Feedback should be checked and verified. This will ensure that the subordinate

has not misinterpreted the feedback received from his superior.

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Career Planning :-

Career is progress or general course of action of a person in some profession or in an

organization. An individual’s career signifies the position held by him throughout his work life.

Organizations are expected to support employees in accomplishing their career and life goals

through career planning activities. Career planning is collective responsibility of the

organization and the concerned individual. The main aim of career planning is to help

employees achieve progression within the organization.

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Career Anchors :

Career anchors denote the basic drives that create the urge to take up a certain type of a

career. These drives are as follows:

Managerial Competence: Person having this drive seek managerial positions that provide

opportunities for higher responsibility, decision making, control and influence over others.

Technical Competence: People having this anchor seek to make career choices based on

the technical or functional content of the work. It provide continuous learning and updating

one's expertise in a technical or specialised area such as quality control, engineering,

accounting, advertising, public relations etc.

Security: If one's career anchor is security than he is willing to do what is required to maintain

job security (through compliance with organizational prescriptions), a decent income and a

stable future.

Creativity: This drive provides entrepreneurial and innovative opportunities to the people.

People are driven by an overwhelming desire to do something new that is totally of their own

making.

Autonomy: These people seek a career that provides freedom of action and independence.

Career is viewed as a sequence of position occupied by a person during the course of his

lifetime. Career may also be viewed as amalgam of changes in value, attitude and motivation

that occur, as a person grows older. The implicit assumption is that an invididual can make a

different in his destiny over time and can adjust in ways that would help him to enhance and

optimize the potential for his own career development. Career planning is important because it

would help the individual to explore, choose and strive to derive satisfaction with one’s career

object.

Features of career planning :-

Career planning is a process of developing human resources rather than an event.

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Career planning normally follows a bottom up approach in which the process begins with the

individuals, works upwards and ends with organizational interventions.

It is not an end in itself but a means of managing people to obtain optimum results.

It aims at matching the individual’s career goals with the opportunities available.

It is not a one time affair but an ongoing process by which an employee identifies the needs

and also the methods to fulfill those needs on a regular basis.

Career planning is a continuous process due to an ever changing environment.

Basically career planning is an individual’s responsibility. But it is the responsibility of an

organization to provide guidance and counseling to its employees in planning their careers and

in developing and utilizing their knowledge and skills. Goals of employees should be integrated

with the organizational goals.

It is normally made in a dynamic environment where the changes in the demand for and supply

of labour, the characteristics of labour, technology, competitive conditions and market

strategies are rapid and often radical.

Career Stages :-

Exploration - Very early in life of a person, parents begin to explore career choices. The

exploration period ends for most of us in mid-twenties as we make the transition from college

to work. This stage involves self-analysis and exploration of different types of available jobs.

Establishment - This stage begins with search for work and includes the first job, learning it

and being accepted by peers. It is also marked by mistakes and good performance.

Employment sought in this stage is guided by what was learnt during exploration.

Mid Career - At this point in a career people may move up or reassess their priorities.

Late Career - Those who continue to grow through the mid-career stage, this stage is pleasant.

One can enjoy success and respect from younger employees. Those who have stagnated they

realize that they cannot change the world. One starts looking forward to retirement due to

career plateauing.

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Decline - The final stage is difficult for everyone. After several decades of continuous

achievements, the time has come for retirement.

Career Planning Process :-

The career planning process involves the assessment of the factors influencing the career

options in order to make an informed choice about career goals and its execution strategy. The

steps involved in career planning process are:

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Identifying Individual needs and aspirations - Most individuals do not have a clear idea

about their career aspirations, anchors and goals. The human resource professionals,

therefore, help an employee by providing information about kind of work that would suit the

employee most, taking his skills, experience, and aptitude into account. Human resource

inventory will reveal the age, qualifications, experience and aptitude of present employees.

Appraisal of employees is then carried out to identify the employees having the necessary

potential for climbing up the ladder and are willing to be promoted up to higher responsibilities.

Analyzing Career Opportunities - The organizational set up, future plans and career system

of the employees are analyzed to identify the career opportunities available within it. Career

paths can be determined for each position. It is also necessary to analyze career demands in

terms of knowledge, skills, experience, aptitude, etc. Long-term and short term career goals

can be defined after relating specific jobs to different career opportunities. At a particular level,

there may be young direct recruits as well as older persons who have risen to the level through

promotions. The former aspire for quick career progress due to their better education and

training. The latter cannot be expected to move up very high due to limited professional

education. Therefore, promotions and direct recruitment at every level must be so planned as

to ensure a fair share to each group. This is called age balance in career paths.

Identifying Match and Mismatch - A mechanism for identifying congruence between

individual current aspirations and organizational career system is developed to identify and

compare specific areas of match and mismatch for different categories of employees. For this

purpose, specific jobs are related to different career opportunities. Such matching helps to

develop realistic career goals for both long-term and short term.

Formulating and implementing Strategies - Alternative strategies and action plans for

dealing with mismatch are formulated and implemented. Some of the these are mentioned

below:

o Changes in the career system by creating new career paths, by providing

opportunities for lateral movements through jobs redesign, etc.

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o Changing employee needs and aspirations by helping them to scale down

unrealistic goals and aspirations or by creating new aspirations.

o Seeking new basis of integration through problem-solving, negotiations and

compromises, etc.

o Training and development of suitable people, so as to meet the needs of both the

individuals and the organization.

Reviewing Career Plans - A periodic review of career plans is necessary to know whether

the plans are contributing to effective utilization of human resources by matching employee

objectives to job needs. Review will also indicate to employees in which direction the

organization is moving, what changes are likely to take place and what skills are needed to

adapt to the changing needs of the organization.

Merits of Career Planning -

The employee has advance knowledge of career opportunities within the company. He knows

where he stands, where he wants to go, who is ahead of him and how to climb the corporate

ladder.

Career planning is a participative process and under it, job assignments are based on merit

alone. This helps to improve employee morale and productivity.

Career planning helps employees in developing career goals and also in accomplishing those

goals in a time bound manner.

Career planning anticipates the future vacancies that may arise due to retirement, resignation,

death, etc. at managerial level. Therefore, it provides a fairly reliable guide for manpower

forecasting. A forward career plan helps to avoid dislocation in managerial positions.

It provides an opportunity to the organization to identify the strengths and weaknesses of its

workforce.

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An organization with well designed career plans is able to have a better image in the

employment market, and it will attract and retain competent people.

.Being an integral part of the manpower planning and corporate planning, career planning

contributes towards individual development as well as organizational development and

effective achievement of corporate goals.

It helps organization in achieving enhanced job satisfaction, efficiency and commitment for its

employees.

Limitations of Career Planning :-

For small units where there are very few opportunities for the vertical growth of employees, it is

not suitable.

In a developing country like India, environmental factors such as Government policy, public

sector development. growth of backward areas, laws of land etc. influence business and

industry. Therefore, career plans for a period exceeding a decade may not be effective.

Career planning in not an effective technique for a large number of employees who work on

the shop floor, particularly for illiterate and unskilled workers.

In family business houses in India, members of the family expect to progress faster m their

career than their professional colleagues. This upsets the career planning process.

Systematic career planning might become difficult due to favoritism and nepotism in

promotions, political intervention in appointments etc.

Rewards and Compensation :-

Employee rewards and recognition system is not just a positive action towards employees. If it

is implemented effectively, it proves to be an efficient tool in encouraging the employees to

create and bring business for the company. Recognizing the efforts of employees and

encouraging their morale results in increased productivity and decreased attrition rate. It is a

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documented fact that an encouraged and dedicated workforce can change the fate of a

company. Establishing and executing a reward system needs careful analysis of the company

policies and procedures. Deciding how to recognize employees’ efforts and what to provide

them needs thorough analysis of duties and risks involved in a particular job.

Types of rewards :-

Reward system of a company should also be in alignment with its goals, objectives, mission

and vision. On the basis of the job profile, both monetary and non-monetary rewards can

motivate employees to contribute more to the organization.

Rewards serve many purposes in organizations. They serve to build a better employment deal,

hold on to good employees and to reduce employee turnover.

The principal goal is to increase people's willingness to work in one’s company, to enhance

their productivity

Most people assimilate "rewards", with salary raise or bonuses, but this is only one kind of

reward, extrinsic reward. Studies proves that salespeople prefer pay raises because they feel

frustrated by their inability to obtain other rewards. But this behavior can be modified by

applying a complete reward strategy.

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There are two kinds of rewards:

Extrinsic rewards: concrete rewards that employee receive.

Bonuses: Usually annually, Bonuses motivates the employee to put in all endeavors

and efforts during the year to achieve more than a satisfactory appraisal that increases

the chance of earning several salaries as lump sum. The scheme of bonuses varies

within organizations; some organizations ensure fixed bonuses which eliminate the

element of asymmetric information, conversely, other organizations deal with bonuses

in terms of performance which is subjective and may develop some sort of bias which

may discourage employees and create setback. Therefore, managers must be extra

cautious and unbiased.

Salary raise: Is achieved after hard work and effort of employees, attaining and

acquiring new skills or academic certificates and as appreciation for employees duty

(yearly increments) in an organization. This type of reward is beneficial for the reason

that it motivates employees in developing their skills and competence which is also an

investment for the organization due to increased productivity and performance. This

type of reward offers long-term satisfaction to employees. Nevertheless, managers

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must also be fair and equal with employees serving the organization and eliminate the

possibility of adverse selection where some employees can be treated superior or

inferior to others.

Gifts: Are considered short-term. Mainly presented as a token of appreciation for an

achievement or obtaining an organizations desired goal. Any employee would

appreciate a tangible matter that boosts their self-esteem for the reason of recognition

and appreciation from the management. This type of reward basically provides a clear

vision of the employee’s correct path and motivates employee into stabilising or

increasing their efforts to achieve higher returns and attainments. Monetary gifts, such

as Gift cards are also more likely to be used for luxury purchases and can build an

emotional bond with the organization.

Promotion: Quite similar to the former type of reward. Promotions tend to effect the

long-term satisfaction of employees. This can be done by elevating the employee to a

higher stage and offering a title with increased accountability and responsibility due to

employee efforts, behaviour and period serving a specific organization. This type of

reward is vital for the main reason of redundancy and routine. The employee is

motivated in this type of reward to contribute all his efforts in order to gain

managements trust and acquire their delegation and responsibility. The issue revolved

around promotion is adverse selection and managers must be fair and reasonable in

promoting their employees.

Other kinds of tangible rewards

Intrinsic rewards: tend to give personal satisfaction to individual

Information / feedback: Also a significant type of reward that successful and effective

managers never neglect. This type of rewards offers guidance to employees whether

positive (remain on track) or negative (guidance to the correct path). This also creates a

bond and adds value to the relationship of managers and employees.

Recognition: Is recognizing an employee’s performance by verbal appreciation. This

type of reward may take the presence of being formal for example meeting or informal

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such as a "pat on the back" to boost employees self-esteem and happiness which will

result in additional contributing efforts.

Trust/empowerment: in any society or organization, trust is a vital aspect between living

individuals in order to add value to any relationship. This form of reliance is essential in

order to complete tasks successfully. Also, takes place in empowerment when

managers delegate tasks to employees. This adds importance to an employee where

his decisions and actions are reflected. Therefore, this reward may benefit

organizations for the idea of two minds better than one.

Intrinsic rewards makes the employee feel better in the organization, while Extrinsic rewards

focus on the performance and activities of the employee in order to attain a certain outcome.

The principal difficulty is to find a balance between employees' performance (extrinsic) and

happiness (intrinsic).[11]

The reward also needs to be according to the employee’s personality. For instance, a sports

fan will be really happy to get some tickets for the next big match. However a mother who

passes all her time with her children, may not use them and therefore they will be wasted.

When rewarding one, the manager needs to choose if he wants to rewards an Individual, a

Team or a whole Organization. One will choose the reward scope in harmony with the work

that has been achieved.

Individual

Base pay, incentives, benefits

Rewards attendance, performance, competence

Team: team bonus, rewards group cooperation

Organization: profit-sharing, shares, gain-sharing

Compensation :-

https://en.wikipedia.org/wiki/Reward_management#cite_note-11

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In very simple terms, compensation is the results or rewards that the employees receive in

return for their work.

Compensation includes payments like bonuses, profit sharing, overtime pay, recognition

rewards and sales commission, etc.

Compensation can also include non-monetary perks like a company-paid car, company-paid

housing and stock opportunities. Compensation is a vital part of human resource management,

which helps in encouraging the employees and improving organizational effectiveness. From a

manager's point of view, the compensation package offered to a company's employees is

essential not only because it costs money, but because it is likely to be the primary reason the

employees work for the firm.

Compensation packages with good pay and advantages can help attract and retain the best

employees. A quick survey of employees about compensation is likely to expose an

expectation that wages are fair and cover basic living expenses, keep up with inflation, leave

some money for savings (perhaps for retirement) and leisure, increment over time.

A company's compensation scheme also informs a great deal about the firm's values and

cultures. Employees often look at what a company pays rather than what it says. In many

aspects, people behave as they are rewarded.

A compensation scheme projects what the company expects of its employees. For example, if

quality is an essential value, then it should be implemented through some element of the total

compensation system. To summarize, compensation management is a synchronized practice

that includes balancing the work-employee relation by facilitating monetary and non-monetary

benefits for employees.

Types of Compensations

Direct Compensation

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It is naturally made up of salary payments and health benefits. The creation of salary ranges

and pay scales for different positions within an organization are the central responsibility of

compensation management staff.

Direct compensation that is in line with the industry standards facilitates employees with the

assurance that they are getting paid fairly. This helps the employer not to worry about the

costly loss of trained staff to a competitor.

Indirect Compensation

It focuses on the personal encouragements of each individual to work. Although salary is

essential, people are most productive in jobs where they share the company's values and

priorities. These benefits can include things like free staff development courses, subsidized

day care, the chances for promotion or transfer within the company, public recognition, the

ability to effect change or bring some changes in the workplace, and service to others. These

are the two types of compensation that need to be managed and have its own contribution in

the development of the organization. Moving forward, we will see the different components of

compensation.

Components of Compensation

Compensation as a whole is made up of different components that work as an aid for an

employee after retirement or in case of some accident or injury. Now we shall see the key

elements or components that make compensation.

Wages and Salary

Wages mark hourly rates of pay, and salary marks the monthly rate of pay of an employee. It is

irrelevant of the number of hours put in by an employee working in the firm. These are subject

to annual increase.

Allowances

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Allowances can be defined as the amount of something that is allowed, especially within a set

of rules and regulations or for a specified purpose. Various allowances are paid in addition to

basic pay.

Some of these allowances are as follows −

Dearness Allowance − This allowance is given to protect real income of an employee

against price rise. Dearness allowance (DA) is paid as a percentage of basic pay.

House Rent Allowance − Companies who do not provide living accommodation to their

employees pay house rent allowance (HRA) to employees. This allowance is calculated

as a percentage of salary.

City Compensatory Allowance − This allowance is paid basically to employees in

metros and other big cities where cost of living is comparatively more. City

compensatory allowance (CCA) is normally a fixed amount per month, like 30 per cent

of basic pay in case of government employees.

Transport Allowance/Conveyance Allowance − Some companies pay transport

allowance (TA) that accommodates travel from the employee’s house to the office. A

fixed amount is paid every month to cover a part of traveling expenses.

Incentives and Performance Based Pay

Incentive compensation is performance-related remuneration paid with a view to encourage

employees to work hard and do better.

Both individual incentives and group incentives are applicable in most cases. Bonus, gain-

sharing, commissions on sales are some examples of incentive compensation.

Fringe Benefits/Perquisites

Fringe benefits include employee benefits like medical care, hospitalization, accident relief,

health and group insurance, canteen, uniform, recreation and the likes. In recent years, a great

deal of attention has been directed to the development of compensation systems that go

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beyond just money. We can say that all the components of compensation management play a

very important role in the life of an employee. In particular, there has been a marked increase

in the use of pay-for-performance (PrP) for management and professional employees,

especially for executive management and senior managers. Compensation is a primary

motivation for most employees.

Employee Welfare :-

Welfare includes anything that is done for the comfort and improvement of employees and is

provided over and above the wages. Welfare helps in keeping the morale and motivation of the

employees high so as to retain the employees for longer duration. The welfare measures need

not be in monetary terms only but in any kind/forms. Employee welfare includes monitoring of

working conditions, creation of industrial harmony through infrastructure for health, industrial

relations and insurance against disease, accident and unemployment for the workers and their

families. Employee welfare entails all those activities of employer which are directed towards

providing the employees with certain facilities and services in addition to wages or salaries.

Employee welfare has the following objectives:

To provide better life and health to the workers

To make the workers happy and satisfied

To relieve workers from industrial fatigue and to improve intellectual, cultural and

material conditions of living of the workers.

The basic features of employee welfare measures are as follows:

Employee welfare includes various facilities, services and amenities provided to workers

for improving their health, efficiency, economic betterment and social status.

Welfare measures are in addition to regular wages and other economic benefits

available to workers due to legal provisions and collective bargaining.

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Employee welfare schemes are flexible and ever-changing. New welfare measures are

added to the existing ones from time to time.

Welfare measures may be introduced by the employers, government, employees or by

any social or charitable agency.

The purpose of employee welfare is to bring about the development of the whole

personality of the workers to make a better workforce.

The very logic behind providing welfare schemes is to create efficient, healthy, loyal and

satisfied labor force for the organization. The purpose of providing such facilities is to make

their work life better and also to raise their standard of living. The important benefits of welfare

measures can be summarized as follows:

They provide better physical and mental health to workers and thus promote a healthy

work environment

Facilities like housing schemes, medical benefits, and education and recreation facilities

for workers’ families help in raising their standards of living. This makes workers to pay

more attention towards work and thus increases their productivity.

Employers get stable labor force by providing welfare facilities. Workers take active

interest in their jobs and work with a feeling of involvement and participation.

Employee welfare measures increase the productivity of organization and promote

healthy industrial relations thereby maintaining industrial peace.

The social evils prevalent among the labors such as substance abuse, etc are reduced

to a greater extent by the welfare policies.

Employee Welfare Benefits Schemes

Organizations provide welfare facilities to their employees to keep their motivation levels high.

The employee welfare schemes can be classified into two categories viz. statutory and non-

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statutory welfare schemes. The statutory schemes are those schemes that are compulsory to

provide by an organization as compliance to the laws governing employee health and safety.

Some of employee welfare Laws in India

Factories Act, 1948

Maternity Benefit Act,1961 (with latest amendments)

Employee State Insurance Act, [ESI] 1948

Employees' Provident Fund Scheme, 1952.

Payment of Bonus Act, 1965

Statuary welfare benefits

The statutory welfare benefits schemes include the following provisions:

Drinking Water: At all the working places safe hygienic drinking water should be

provided.

Facilities for sitting: In every organization, especially factories, suitable seating

arrangements are to be provided.

First aid appliances: First aid appliances are to be provided and should be readily

assessable so that in case of any minor accident initial medication can be provided to

the needed employee.

Latrines and Urinals: A sufficient number of latrines and urinals are to be provided in

the office and factory premises and are also to be maintained in a neat and clean

condition.

Canteen facilities: Cafeteria or canteens are to be provided by the employer so as to

provide hygienic and nutritious food to the employees.

Spittoons: In every work place, such as ware houses, store places, in the dock area

and office premises spittoons are to be provided in convenient places and same are to

be maintained in a hygienic condition.

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Lighting: Proper and sufficient lights are to be provided for employees so that they can

work safely during the night shifts.

Washing places: Adequate washing places such as bathrooms, wash basins with tap

and tap on the stand pipe are provided in the port area in the vicinity of the work places.

Changing rooms: Adequate changing rooms are to be provided for workers to change

their cloth in the factory area and office premises. Adequate lockers are also provided to

the workers to keep their clothes and belongings.

Rest rooms: Adequate numbers of restrooms are provided to the workers with

provisions of water supply, wash basins, toilets, bathrooms, etc.

Maternity & Adoption Leave – Employees can avail maternity or adoption leaves.

Paternity leave policies have also been introduced by various companies.

Mediclaim Insurance Scheme: This insurance scheme provides adequate insurance

coverage of employees for expenses related to hospitalization due to illness, disease or

injury or pregnancy.

Sexual Harassment Policy: To protect an employee from harassments of any kind,

guidelines are provided for proper action and also for protecting the aggrieved

employee. For more information go through - Sexual Harassment of Women at

Workplace (Prevention, Prohibition and Redressal) Act, 2013

NON STATUTORY BENEFITS

Many non-statutory welfare benefits may include the following schemes:

1. Personal Health Care (Regular medical check-ups): Some of the companies provide

the facility for extensive health check-up

2. Flexi-time: The main objective of the flextime policy is to provide opportunity to

employees to work with flexible working schedules. Flexible work schedules are initiated

by employees and approved by management to meet business commitments while

supporting employee personal life needs

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3. Employee Assistance Programs: Various assistant programs are arranged like

external counseling service so that employees or members of their immediate family

can get counseling on various matters.

4. Employee Referral Scheme: In several companies employee referral scheme is

implemented to encourage employees to refer friends and relatives for employment in

the organization.

Approaches to Employee Welfare:

The various approaches to labour welfare reflect the attitudes and beliefs of the agencies

which are engaged in welfare activities. Welfare facilities may be provided on religious,

philanthropic or some other grounds. Moreover, the different approaches to labour welfare

reflect the evolution of the concept of welfare. In bygone days, the government of the land had

to compel the owner of an industrial establishment to provide such basic amenities as

canteens, rest rooms, drinking water, good working conditions, and so forth, for their

employees. Such compulsion was necessary because the employer believed in exploiting

labour and treating it in an unfair manner. But times have changed, and the concept of welfare,

too, has undergone changes. Many progressive managements today provide welfare facilities,

voluntarily and with enlightened willingness and enthusiasm. In fact, welfare facilities are not

restricted to the workers alone. They have now been extended to the society in general. In

other words, labour welfare has been extended to include social welfare. Tata Steel Works at

Jamshedpur, for example, spends Rs 10 crore each year on social welfare. Brooke Bond have

set up a free animal welfare clinic at Gevrai, Aurangabad, under the direct charge of a qualified

veterinary doctor. Jindal Aluminium, Bangalore, maintains the famous Naturopathy and Yogic

Sciences Centre and a public school for the benefit of the public. The Jindal Scholarship Trust

has been set up, under which deserving students are given scholarships. The Hindustan

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Machine Tools has a big playground and a community hall, which are let out for competitions

and functions.

Policing Theory -

According to this view, the factory and other industrial workplaces provide ample opportunities

for owners and managers of capital to exploit workers in an unfair manner. This could be done

by making the labour work for long hours, by paying workers low wages, by keeping the

workplaces in an unhygienic condition, by neglecting safety and health provisions, and by

ignoring the provision of elementary human amenities, such as drinking water, latrines, rest

rooms and canteens. Clearly, a welfare state cannot remain a passive spectator of this

limitless exploitation. It enacts legislation under which managements are compelled to provide

basic amenities to the workers. In short, the state assumes the role of a policeman, and

compels the managers of industrial establishments to provide welfare facilities, and punishes

the non-complier.

Religion Theory -

The religion theory has two connotations, namely, the investment and atonement aspects. The

investment aspect of the religion theory implies that the fruits of today's deeds will be reaped

tomorrow. Any action, good or bad is therefore treated as an investment. Inspired by this

belief, some employers plan and organise canteens and crèches. The atonement aspect of the

religion theory implies that the present disabilities of a person are the result of the sins

committed by him/her previously. He/she should undertake to do good deeds now to atone or

compensate for his/her sins.

Philanthropic Theory -

Philanthropy means affection for mankind. The philanthropic theory of labour welfare refers to

the provision of good working conditions, creches and canteens out of pity on the part of the

employers who want to remove the disabilities of the workers. Robert Owen of England was a

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philanthropic employer, who worked for the welfare of his workers. The philanthropic theory is

more common in social welfare. Student hostels, drinking water facilities, the rehabilitation of

crippled persons, donations to religious and educational institutions, and so forth are examples

of philanthropic deeds.

Paternalistic Theory -

According to the paternalistic theory, also called the trusteeship theory, of labour welfare, the

industrialist or the employer holds the total industrial estate, properties and the profits accruing

from them, in trust. The property which he/she can use or abuse as he/she likes is not entirely

his/her own. He/she holds it for his/her use, no doubt, but also for the benefit of his/her

workers, if not for the whole society. For several reasons, such as low wages, lack of

education, and so forth the workers are at present unable to take care of themselves. They

are, therefore, like minors, and the employers should provide for their well-being out of funds in

their control. The trusteeship is not actual and legal, but it is moral and, therefore, not less real.

Placating Theory -

This theory is based on the assumption that appeasement pays when the workers are

organised and are militant. Peace can be bought by welfare measures. Workers are like

children who are intelligent, but not fully so. As crying children are pacified by sweets, workers

should be pleased by welfare works.

Public Relations Theory -

According to this theory, welfare activities are provided to create a good impression on the

minds of the workers and the public, particularly the latter. Clean and safe working conditions,

a good canteen, creche and other amenities, make a good impression on the workers, visitors

and the public. Some employers proudly take their visitors round the plant to show how well

they have organised their welfare activities.

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Functional Theory -

Also known as the efficiency theory of labour welfare, the functional theory implies that welfare

facilities are provided to make the workers more efficient. If workers are fed properly, clothed

adequately and treated kindly, and if the conditions of their work are congenial, they will work

efficiently. Welfare work is a means of securing, preserving and increasing the efficiency of

labour.

Social Theory -

The social obligation of an industrial establishment has been assuming great significance

these days. The social theory implies that a factory is morally bound to improve the conditions

of the society in addition to improving the condition of its employees. Employee welfare, as

mentioned earlier, is gradually becoming social welfare.

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