UNIT2 – PART 2 HRM
Dr. Sonika
Assistant Professor
MBA Department
HPU RC, Dharamshala
CONTENTS
⚫ Training,
⚫ Methods of Training,
⚫ Evaluating Training Effectiveness,
⚫ Executive Development,
⚫ Performance Appraisal – Concept , Importance and
Methods
1. Training,
⚫ Training refers to the teaching and learning activities
carried on for the primary purpose of helping members
of an organization to acquire and apply the knowledge,
skills, abilities, and attitudes needed by a particular job
and organization.
⚫ Training is a systematic process through which an
organization’s human resources gain knowledge and
develop skills by instruction and practical activities
that result in improved corporate performance.
The ASK Concept
⚫
⚫
If we follow the GAP concept, training is simply
a means to use activities to fill the gaps of
performance between the actual results and the
expected results.
This GAP can be separated into 3 main themes
1. Attitude
2. Skills
3. Knowledge
IMPORTANCE OF TRAINING
⚫Trained workers can work more efficiently.
⚫There will be fewer accidents. As training improves the
knowledge of employees regarding the use of machines
and equipment.
⚫Wastage is eliminated to a large extent as
they use
tools, machines in a proper way.
⚫ Training makes employees more loyal to an organization.
⚫ They will be less inclined to leave the unit where there are
growth opportunities.
⚫ Training enables employees to secure promotions easily.
⚫ They can realize their career goals comfortably.
⚫Economical supervision- as there is less requirement for
supervision for trained employees.
Methods of Training
⚫ ON THE JOB METHODS :
1 JOB ROTATION METHOD
2. COACHING
3. MENTORING
4. JOB INSTRUCTION TRAINING (JIT)
5. APPRENTICESHIP TRAINING
6. COMMITTEE ASSIGNMENT
7. UNDERSTUDY
8. SELECTIVE READING
OFF THE JOB METHODS:
Will discuss later….
ON THE JOB TRAINING METHODS(OJT)
Most effective as the trainee is given training at work place by his
immediate supervisor.
It is “Learning by Doing”
ADVANTAGE –
•Practical Learning
•Less Expensive
•Motivate employees to learn
•No artificial set up
DISADVANTAGE –
•Chances of error is high
•High chances of wastages
•High possibility of accidents
1 JOB ROTATION METHOD
2. COACHING
3. MENTORING
4. JOB INSTRUCTION TRAINING (JIT)
5. APPRENTICESHIP TRAINING
6. COMMITTEE ASSIGNMENT
7. UNDERSTUDY
8. SELECTIVE READING
1. JOB ROTATION METHOD
This training method involves movement of trainee from
one job to another within an organization.
⚫ By rotating you can make them learn different
functional areas.
⚫ Reduces boredom
⚫ Also provides flexibility to the organization for
effective utilization of human resources.
2. COACHING METHOD
⚫ It refers to informal, unplanned training provided by
supervisor or peers to an employee
⚫ It involves daily observation and daily feedback
SUPERVISOR/COACH carry out following activities:
1. Explain him right way of doing things
2. Explain him do’s and don’t of the job
3. Stating observations accurately about employee
performance
4. Offering alternative/suggestions and follow up.
3. MENTORSHIP
It is a relationship in which a senior manager assumes the
relationship for grooming a junior manager.
Focus is on building interpersonal and political skills of the
employee
The main focus of mentor is on career advancement and
psychological maturity of the trainee. So, following are the
functions of a mentor:
1) Career Functions: Those aspects of the relationship that
enhance career advancements e.g. foreign assignments.
2) Psychological functions: those aspects that enhance
trainee’s sense of competence e.g. role modeling,
counseling and friendship.
4. JOB INSTRUCTION TRAINING
(JIT)
⚫ Also known as step-by-step training in which the
⚫
1.
2.
3.
4.
trainer explains the way of doing the job to the trainee
and in case of mistakes, corrects the trainee.
Procedure of JIT
Demonstration – the trainer demonstrates the right
way of doing the job.
Overview – Educate the trainee about the purpose
and outcome of the job.
Performance – The trainee will actually peroform
Follow up
5. APPRENTICESHIP TRAINING
Under this method, instructions through theoretical
and practical aspects are provided to the trainees.
⚫ It involves both on the job and classroom training.
⚫ Apprentices are trainees who spend a prescribed
amount of time working with an experienced coach
is mentor
⚫ Example – its like an internship program usually
done by engineering and commerce students.
6. COMMITTEE ASSIGNMENTS
⚫ It refers to the method in which the trainees are asked
to solve an actual organizational problem
⚫ In committee assignments , trainees have to work
together in a team and offer solution to the problem.
⚫ This method helps the trainees to develop team spirit to
achieve a common organization goal.
7. UNDERSTUDY METHOD
⚫ For example – The department head is planning to
leave organization in next two months when he/she
may pick one competent person from the department to
become his/her understudy.
⚫ This gives the understudy an opportunity to try out
his/her leadership skills
⚫ Trainees are prepared to perform the work and perform
duties of their supervisors.
⚫ It fills the position of his/her superior that is about to
leave the job due to promotion, retirement or transfer
etc.
8. SELECTIVE READING
⚫ It refers to individual self development programs that
are meant for executives.
⚫ Some organizations have a planned reading program
under which the executives are provided books,
journals and articles related to their functional areas.
⚫ This helps the executives in enhancing their knowledge
and understanding of various aspects of their business.
OFF THE JOB TRAINING METHODS
Trainee is given training away from work place.
ADVANTAGE –
•Trainees feel relaxed.
1 CASE STUDY METHOD
2. INCIDENT METHOD
3. ROLE PLAY
4. IN BASKET METHOD
5. BUSINESS GAMES
6. LECTURES
7. SIMULATION
8. VESTIBULE TRAINING
9. CONFERENCES
DISADVANTAGE –
•Lack of practical aspects
1. CASE STUDY METHOD
⚫ Trainees learn about real or hypothetical circumstances
and the actions others take under those circumstances.
⚫ Besides learning from the content of the case, a person
can develop decision-making skills.
⚫ Case method is an excellent medium for developing
analytical skills.
2. INCIDENT METHOD
⚫ In the incident method, a full detailed description of a
situation is not given.
⚫ The trainer merely presents an outline often in the form
of a complaint from a customer or a severe conflict in
the management of a business.
⚫ Trainees discuss in groups and try to convince others
with their ideas and solutions.
3. ROLE PLAY
⚫ This method was developed by Moreno, a Venetian
Psychiatrist. Role play emphasis on learning human
relations skills through practice and insight into one’s own
behaviour and its effect upon others. E.g In a situation of
strike, act as a HR Manager/workers according to a script.
⚫ It promotes analytical thinking and develops a person’s
problem-solving ability.
⚫ It encourages open mindedness and serves as a means of
integrating the knowledge obtained from different basic
disciplines.
⚫ Since, cases are usually based upon real situations problem,
the trainee’s interest in them tend to be very great.
4. IN BASKET METHOD
⚫ The in-basket simulates how managers make decisions
allocated time. The name is derived from the famous IN
and Out trays found on the table of an executive.
⚫ Usually there are 12-15 tasks in the in-basket; the entire
exercise may take two to three hours to complete. The tasks
or problems are presented to the manager in the form of
letters, memos and memoranda, all put in the IN-Tray of
the participant.
⚫ The biggest advantage of this method is that it is rooted in
the real life situation of the corporate world.
⚫ It effectively enhances skills in decision making and
problem solving.
5. BUSINESS GAMES
⚫ A business game has been described as a dynamic training
⚫
⚫
⚫
⚫
exercise utilizing a model of a business situation.
This train employees in certain skills within the rules of
the game, participants try to meet the stated objectives of
the exercise.
In these games, participants are divided into various teams
which are placed in competition with each other in
resolving some problem information which is supplied to
all teams.
Business games have been developed to simulate
interpersonal relations problems, financial budgeting
issues, and resource allocation decisions.
E.g. Treasure Hunt, Business Idea, Extempore etc.
6. LECTURE
⚫ The lecture is a traditional and direct method of
instructions. Lectures are regarded as one of the
simplest way of imparting knowledge to the trainee,
especially when facts, concept or principles, attitudes,
theories and problem-solving abilities are to be taught.
Lectures are formal organized talks by the training
specialist.
⚫ The lecture method can be used for very large groups
which are to be trained within a short- time for
reducing the cost per trainee.
⚫ Lectures are essential when it is a question of
imparting technical or special information of a
complex nature.
7. CONFERENCE
⚫ In this method, the participating individuals ‘confer’ to
discuss points of common interest to each other. It is a
formal meeting, conducted in accordance with an
organised plan, in which the leader seeks to develop
knowledge and understanding by obtaining a
considerable amount of oral participation of trainees.
⚫ It lays emphasis on small group discussions on
organised subject matter and on the active participation
of the members involved.
8. SIMULATION METHOD
⚫ Simulation is an approach that replicates certain essential
characteristics of the real world organization so that the
trainees can react to it as if it were the real thing and then
consequently transfer what has been learned to their job. As
the name implies, simulation training is based on a
reproduction of some aspect of job reality.
⚫ The simulated environment should possess two important
characteristics. Firstly, physical fidelity i.e., the extent to
which to the training conditions (task, equipment,
surroundings etc.,) are similar to the work environment
land, secondly, psychological fidelity.
⚫ Simulations have many forms – some use expensive,
technical equipment, while others are far less costly.
9. VESTIBULE TRAINING
⚫ Vestibule
training is
one
of
the
off-the-job training where technical staff is trained on
how to use tools and machinery by creating a
simulated workplace. This training is also termed as
'near the job training' in which a simulated work setup
is created near the main production plant.
⚫ Following
are the main advantages of Vestibule
Training: (i) Training is provided by experienced and
expert trainers. (ii) It does not hinder the production
process. (iii) Both theoretical and practical training is
provided. (iv) Many people can be trained at a time.
2. Evaluating Training Effectiveness
KIRPATRICK’s Model for Evaluating
Training
In 1959, Donald Kirkpatrick gave this model and the
latest version is in 2016 –four levels of evaluating
training.
This models helps to answer following question:
⚫ How effective it’s been?
⚫ Are your people putting their learning into practice
⚫ Whether training program is positively impacting an
individual’s and organizational performance?
KIRPATRICK’s MODEL
LEVEL 1: REACTION
Key Questions:
1. Did you feel that the training was worth for you?
2. Did you think it was successful?
3. What were the strengths and weaknesses of the training?
4. Did you like the venue and presentation style?
5. Were the training activities engaging?
6. Can you apply what you learned to your job?
Track metrics such as participation rate, completion rate,
and time spent on training (useful for self-directed online
training courses). Use the feedback to identify areas for
improvement and consider possible changes for future
iterations of training program.
Level 2: Learning /Knowledge
⚫ In this level the trainer measure exactly what the
employees learned (or didn’t learn) in the training.
⚫ To do this effectively, test employees before and after
the training to measure progress. Skills-based
evaluations or interviews can be used to record
findings.
⚫ Unlike simple or subjective reactions to the training,
during this stage, specific outcomes are measured.
⚫ Identify aim of the learning outcomes or results in the
training, then test for those outcomes before and after.
Level 3: Behavior
⚫ The next step is to determine whether training has
impacted behavior. In other words, are employees
applying what they learned?
⚫ This process takes time—after all, it can take weeks or
months for employees to build confidence or have the
opportunity to apply their knowledge.
⚫ To measure behavior, conduct interviews, record
observations on the ground, and provide opportunities
(e.g., assign projects) for team members to apply the
skills they learned in the training.
Level 4: Results
⚫ The final step of the Kirkpatrick Model is measuring
results.
⚫ In this stage it is evaluated that how the behavioral
changes impacted the business and whether the
training investment resulted in a good Return on
Investment (ROI).
3. Executive Development
Management development programs help in acquiring and
developing managerial skill and knowledge. Different types
of techniques are used to acquire and develop various types of
managerial skill and knowledge as given below:
1. Decision-making skill: In-basket, Business games, Case
study
2. Interpersonal skill: Role playing, Sensitivity Training
3. Job Knowledge: On-the-Job experiences, Coaching,
Understudy
4. Organizational Knowledge: Job Rotation, Multiple
Management
5.General Knowledge: Special course, Special Meeting,
Specific Reading
4. Performance Appraisal –
Concept , Importance and
Methods
60% employees say performance appraisals are a waste of
time, 70% say no idea how they are evaluated: Survey
• Organizations need to make staff appraisals more transparent and useful
as most employees are neither fully conversant with the process nor do
they see them as a worthy task to perform.
• Majority
of the employees find performance reviews in their
organizations opaque, cumbersome and a waste of time, reveals a Times
Jobs survey, 'The Performance Review Puzzle', of more than 1,200
employees in various kinds of organizations.
• Sixty per cent employees said the performance review was a waste of
time.
• Most employees are not even fully aware of the process of evaluation.
Seventy per cent said they did not know how they were evaluated. Not
surprisingly, 85 per cent were not aware of the end-to-end process of
performance review.
• Ninety per cent found performance review forms complex and
cumbersome.
• Outcome of appraisals never left 35 per cent satisfied while 25 per cent
had been rarely satisfied. Only 10 per cent said they were always
satisfied. Thirty per cent were sometimes satisfied.
Performance Appraisal
⚫ Performance
⚫ What an employee does and does not do.
⚫ Quantity of output • Quality of output
⚫ Timeliness of output
• Presence at work
⚫ Cooperativeness
⚫ Performance Appraisal (PA): The process of evaluating how
well employees perform their jobs when compared to a set of
standards, and then communicating the information to
employees.
⚫ Informal Appraisal
⚫ Day-to-day contacts, largely undocumented
⚫ Systematic Appraisal
⚫ Formal contact at regular time intervals, usually documented
⚫ Performance Management System
⚫ Processes
used to identify, encourage, measure, evaluate,
improve, and reward employee performance.
Definition of Performance Appraisal
⚫According to Newstrom, “It is the process of
evaluating the performance of employees, sharing that
information with them and searching for ways to
improve their performance’’.
⚫According to Edwin Flippo, "Performance
Appraisal is the systematic, periodic and impartial
rating of an employee's excellence, in matters
pertaining to his present job and his potential for a
better job.“
⚫According to Dale Beach, "Performance Appraisal is
the systematic evaluation of the individual with regards
to his or her performance on the job and his potential
for development."
Importance of Performance Appraisal
1. Provide a record of performance over a period of time. Enhances
motivation & productivity.
2. Provides basis for making decisions related to promotion,
demotion, termination etc.
3. Differentiates employees in job-related areas.
4. Helps ensure legal compliance and improves group relations.
5. Provide an opportunity for a manager to meet & discuss
performance
6. Provide the employee with feedback about their performance
7. Provide an opportunity for an employee to discuss issues
and to clarify expectations.
8. Can be motivational with the support of a good reward and
compensation.
Process of Performance Appraisal
Methods of Performance Appraisal
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
A. TRADITIONAL
METHODS:
Ranking Method
Paired Comparison
Grading Method
Forced Distribution Method
Forced-Choice Method
Check-List Method
Critical Incidents Method
Graphic Rating Scale
Method
Essay Method
Field Review Method
Confidential Report
B.MODERN METHODS:
1.
2.
3.
4.
5.
Management by Objectives
(MBO)
Behaviourally Anchored
Rating Scales (BARS)
Assessment Centers
360 – Degree Appraisal
Human Resource
Accounting
1.Ranking Method: It is the oldest and simplest formal
systematic method of performance appraisal in which
employee is compared with all others for the purpose
of placing order of worth. The employees are ranked
from the highest to the lowest or from the best to the
worst.
2. Paired Comparison: In this method, each employee
is compared with other employees on one- on one basis
only. The rater is provided with a bunch of slips each
coining pair of names, the rater puts a tick mark against
the employee whom he considers the better of the two.
3.Grading Method: In this method,
certain
categories of worth are established in advance and
carefully defined. There can be three categories
established for employees: outstanding, satisfactory
and unsatisfactory. The
employee is, then,
allocated to the grade that best describes his or her
performance.
4. . Forced-Choice Method: Under this method,
the rater is forced to answer the ready-made
statements as given in the blocks of two or more,
about the employees in terms of true or false. Once
he is done with the list, it is forwarded to the HR
department for the final assessment of the
employee.
5. Forced Distribution Method: This method assumes
that employees performance level confirms to a normal
statistical distribution i.e. 10,20,40,20 and 10 per cent.
This is useful for rating a large number of employees’
job performance and promo ability. It tends to eliminate
or reduce bias.
6. Weighted Check-List Method: The basic purpose of
utilizing check-list method is to ease the evaluation
burden upon the rater. In this method, a series of
statements, i.e., questions with their answers from 1 to
5 rating . The check-list is, then, presented to the rater
to tick appropriate score relevant to the appraise. Each
question carries a weight-age in relationship to their
importance.
7. Critical Incidents Method:
The critical incident method requires the rater to record
statements that describe extremely good or bad
behavior related to job performance. The statements
are called critical incidents and are usually recorded
by the supervisor during the evaluation period for each
subordinate. Recorded incidents include a brief
explanation of what happened.
8. Graphic Scale Rating Method: It is one of the most
popular and simplest
techniques
for
appraising
performance. It is also known as linear rating scale. In
this method, the printed appraisal form is used to
appraise each employee.
9. Essay Method: It is the simplest one among various
appraisal methods available. In this method, the rater
writes a narrative description on an employee’s
weaknesses, past performance, strengths, potential and
suggestions for improvement. Its positive point is that
it is simple in use. It does not require complex formats
and extensive/specific training to complete it.
10. Field Review Method: This is an appraisal done
by someone outside employees, own department
usually from corporate or HR department.
11. Confidential Report: It is the traditional way of
appraising employees mainly in the Government
Departments. Evaluation is made by supervisor or the
immediate boss for giving effect to promotion and
transfer. Usually a structured format is devised to
collect information on employee’s attitude, strength,
character, weakness, intelligence,
attendance,
discipline, etc.
Behaviorally Anchored Rating Scales (BARS): BARS are
designed to bring the benefits of both qualitative
and
quantitative data to the employee appraisal process. BARS
compare an individual’s performance against specific examples
of behavior that are anchored to numerical ratings.
PROCESS OF BARS:
STEP1: Generate Critical incidents – Specific illustrations of
effective and ineffective performance.
STEP 2: Develop Performance standards.- Cluster the incidents
into dimensions.
STEP 3: Reallocate incidents – Reallocate and reassign each
incident to the cluster which fits best.
STEP 4: Scale the incidents – A scale is developed to rate the
behavior on each incident.
STEP 5: Develop final instruments. – A subset of the incidents is
used as behavioral anchors for each dimension.
1.
2. Management by Objectives (MBO):
⚫ In 1954, Peter F. Drucker gave the concept
of MBO - “It is a process whereby the
superior and subordinates of an organization
jointly identify its common goals, define
each individual’s major
areas of
responsibility in terms of results expected of
him, and use these measures as guides for
operating the unit and assessing the
contribution of each its members”.
Assessment Centre
An assessment center is a central location where the
managers are evaluated by expert observers and
psychologists in job related exercises.
The principle idea is to evaluate managers over a
period of time, by observing and later evaluating
their behavior.
An
assessment
center
generally
assesses
interpersonal skills, communication skills,
assertiveness, persuasive ability, self-confidence,
resistance to stress, mental alertness etc.
It is a time consuming and expensive method.
4. 360 – Degree Appraisal:
In
360-degree
appraisal
system, an employee is
appraised by his supervisor,
subordinates, peers,
and
customers with whom he
interacts in the course of his
job performance.
All these appraisers give
information or feedback on an
employee by completing
survey
questionnaires
designed for this purpose.
TRIVIA
-
WHAT
IS
720
5. Human Resource Accounting:
Human Resource Accounting method attaches
money values to the value of a firms internal human
resources and its external customer good will.
Under this method, performance is judged in terms
of costs and contributions of employees.
Difference between the cost and contribution will
reflect the performance of the employees.