Chapter – 03

Theoretical Aspect
INTRODUCTION
Human resource management (HRM) includes conducting job analyses, planning personnel
needs, recruiting the right people for the job, orienting and training, managing wages and
salaries, providing benefits and incentive, evaluating performance, resolving disputes, and
communicating with all employees at all levels. Example of core qualities of HR management is
extensive knowledge of the industry, leadership, and effective negotiation skills. Formerly
Human resource management is called personnel management.

FUNCTIONS & ACTIVITIES OF HRM

In order to achieve the objectives of an organization, the HRM section or department must carry
out a number of functions. The key functions of HRM can be summarized as the acquisition,
maintenance, Development and termination of employees.

Acquisition
This is the getting phase of HRM. It includes estimating both the future demand and supply for
human resources and integrating these resources into a total human resource strategy. In other
words, the objectives and future directions of the organization must be known before any reliable
forecasts of people needs can be made. The acquiring process includes recruiting, selection and
the socialization orientation of new employees. The employee acquisition covers the following
functions of HRM:
Recruitment: Recruitment is the process of attracting, evaluating, and hiring employees for an
organization.
Selection: Selection is the process of selection a qualified job candidate for a job who can
successfully do it and add value to the organization.
Orientation: Orientation tactics exist to provide new employees enough information to adjust,
resulting in satisfaction and effectiveness in their role.

Maintenance
This is the keeping function and involves providing benefits, services and working conditions
that are needed if individuals are to remain committed to the work place (Dessler, 2005, p. 39).

Motivation
Employee motivation refers to the offering of different factors and forces those cause employees
to be inspired to the attainment of goal of the organization. It covers the following functions of
HRM:
Employee Training and Development: A core function of HR management is development,
which entails training efforts designed to improve personnel, group, or organization
effectiveness.
Performance evaluation: Performance evaluation is the process of assessing an employee’s job
performance and productivity, usually for a specified period of time.
Career development and management: Career path management requires HRM to plan and then
actively manage employee skill in the pursuit of successful professional careers (Keith &
William, 2010, p. 45).

TRAINING & DEVELOPMENT

In simple terms, training and development refers to the imparting of specific skills, abilities and
knowledge to an employee. A formal definition of training & development is any attempt to
improve current or future employee performance by increasing an employee ability to perform
through learning, usually by changing the employee’s attitude or increasing his or her skills and
knowledge. The need for training & development is determined by the employee’s performance
deficiency, computed as follows. Training & development need = standard performance – actual
performance. We can make a distinction among training, education and development. Such
distinction enables to acquire a better perspective about the meaning of the terms. Training, as
was stated earlier, refers to the process of imparting specific shills. Education, on the other, is
confined to theoretical learning in classrooms.
It is a learning process that involves the acquisition of knowledge, sharpening of skill,
concepts, rules, or changing of attitude and behaviors to enhance the performance of employees.
Training is activity leading to skill behavior.
 It’s not what you want in life, but its knowing how to reach it.
 It’s not where you want to go, but its knowing how to get there.
 It’s not how high to rise, but it knows how to take off.

Training is defined by Wayne Cascio as “Training consists of planed programs undertaken to

improve employee knowledge, skills, attitude, and social behavior so that the performance of the
organization improves considerably.” Another definition is given by Stephen and Decenzo is,
“Training is about acquisition of knowledge, skill, and abilities (KSA) through professional
development (Decenzo & Stephen, 2006, p. 63)

ADVANTAGES OF TRAINING PROGRAM

Training programs can help workers to increase their efficiency levels, improve quality and
thereby increase sales for the company. Following are the major advantages of training program:

Reduced supervision
When workers have been formally trained they need not be supervised constantly. This reduces
the work load on the supervisor and allows him to concentrate on other activities in the factory.

Reduction in wastage
The amount of material wasted by a trained worker is negligible as compared to the amount of
material wasted by an untrained worker. Due to this the company is able to reduce its cost its
cost of production.
Less turnover of labor
One of the advantages of the training program is that it increases the confidence of employees
and provides them with better career opportunities. Due to this employee generally do not leave
the company. There by reducing labor turnover.

Training helps new employees

A person, who is totally new to the company, has no idea about its working. Training helps him
to understand what is required from him and helps him to adjust to the new environment.

Union management relations

When employees are trained and get better career opportunities. The union starts having a
possible attitude about the management. They feel that the management is genuinely interested in
workers development. This improves union management relations.

Better career opportunities

Training programs provide the latest information, develops talent and due to this the employee is
in a position to get better jobs in the same company or other companies.

High rewards
Effective training programs result in improved performance. When performance appraisal is
done excellent performance of the employee is rewarded by giving him incentives and bonus.

Increased motivation
Employees who have been trained are generally more confident as compared to others. Since
their efforts will be rewarded in future they are very much interested in improving their
performance. Therefore we can say that their motivation levels are very high.

Group efforts
Training programs are not only technical programs but are also conducted in areas like conflict
management, group dynamic (formal and informal groups), behavioral skills, stress management
etc. this enables employees to put in group effort without facing problems that groups normally
face. In other words tracing teaches people to work in a group.

Promotion
People who attend training programs learn from them and improve themselves are generally
considered for promotion. Thus training increases chances of promotion.
METHODS OF TRAINING
On-the-job training methods
A comprehensive on-the-job training program may contain multiple methods. The training is
imparted on the job and the employee gets training under the same environment where he has to
work. This system is very cost effective and popular. The following methods of training fall this
category.
Coaching: This method involves teaching by a superior about the knowledge and skills of a job
to the junior or subordinate. This superior points out the mistakes committed by the trainee and
make suggestion where and whenever necessary.
Understudy: This method involves a superior provide training to his subordinate as his
understudy. The chosen trainee subordinate is most likely to be promoted to the higher post after
the retirement or promotion of his superior under whom he is receive training. The trainee is the
boss under making. It is a kind of mentoring to help the employee to learn the skills of superior
position.
Position rotation or job rotation: This method involves moment employees to different jobs to
gain knowledge and function various jobs within the organization. The incumbent thus realizes
the problem and working of the job and develop respect for the fellow employees.
Job instruction training: In this method a superior explain the knowledge, skills and method of
doing the job to the trainee employee. The supervisor provides the feedback. This is effective
method training for the operation staff in the industrial establishment.
Committee assignment: In this method committees consisting of group of employees are given a
problem and are invited to give solution. The employees solve the problem and submit the
solution. The objective of this method is to develop teamwork among the employees.
Special meetings of the staff: Special meetings of the staff of the department are held
periodically to discuss the problems faced by the employees at work and suggestions are invited
to improve performance of the job. These meetings are conducted by taking retreat from the
work for a short while. Here employees are supervisor provide feedback.

On-the-job methods Off-the-job methods

Coaching Classroom training / Vestibule
training
Understudy assignments Lectures
Position rotation or job rotation Role playing
Job instruction training Conference and seminar
Committee assignment Adventure learning
Special meetings of the staff

Off-the-job training methods

Under this system of training a trainee is taken off from the job and separated from his work
situation so that he can fully concentrate on learning and acquiring the knowledge and skills
related to the performance of the job in a free environment. He is allowed to express freely.
Vestibule training: Under this method, training is provided in a classroom where the actual
working situation is created. The tools and equipment’s files and other related materials are used
in imparting knowledge and skills related to the job by actually performing it at the vestibule
school. This system of training is mostly suitable for the staff as clerical and semi-skilled grades.
Lecture methods: Lecture is an age old and a direct method of providing instruction. Through
lecture the information relating to rules, policies, procedures and methods is provided to the
trainers. A large group of trainees can be addressed through the lecture method. It is a cost
method.
Role playing: This method of training is used for improving human relations and development of
leadership qualities. The trainees get a description of a situation and a role of a managerial
character they have to play. They have to play their role and provide a solution to the grievances
or any such problem faced by supervisors in day to day activities. This method helps the trainee
to develop insight into his behavior and deal with others accordingly.
Conference and seminar: Conferences and seminars are the common methods of training.
Participants gain knowledge and understanding by attending these conference and seminars and
actively participating in the proceedings. Group discussions, exchange of idea and options take
place which help the participants develop leadership qualities. Two-way to communication in
this method proves to be effective. This system is more effective for employees of clerical,
professional and supervisory levels.

DEVELOPMENT
The concept of training employees to have a wider perspective on their position within the
workplace has been around for hundreds of years, but it is only relatively recently that the idea of
creating a simulated environment for trainees to test their abilities and skills has been developed.
The first commercially available training simulation was in 1956, and was called the top
management decision game, and was created by the American Management Association.
Since then, the market has expanded hugely, with thousands of simulations available based upon
hundreds of different industries. Initially very simple with just a few choices to make, some
simulations have become extremely complex with many different interlinking decisions. When
training simulations were first used, they involved paper forms that were filled in by the
participants and then compared by the organizer of the exercise. Nowadays, nearly all
simulations are computed based, and involve multi-stage algorithms that calculate performance
based the decisions entered. Most simulations are base around a real industry, and hence they use
real data to be as accurate as possible and provide a realistic experience. However, some remain
generic and do not model a particular industry, although these tend to be more useful for younger
players or those with absolutely no business knowledge. French (2010, p. 76)
IMPORTANCE OF TRAINING AND DEVELOPMENT
Optimum Utilization of Human Resource:
Training and development helps in optimizing the utilization of human resource that further
helps the employee to achieve the organizational goals as well as their individual goals.

Development of Human Resource:

Training and development help to provide an opportunity and broad structure for the
development of human resource technical and behavioral skills in an organization. It also helps
the employees in attaining personal growth.

Productivity:
Training and development helps in increasing the productivity f the employees that helps the
organization further to achieve its long-term goal.

Team spirit:
Training and development helps in inculcating the sense of team work. Team sprite, and inter-
team collaborations. It helps in inculcating the zeal to learn within the employees.

Organization culture:
Training and development helps to develop and improve the organization health culture and
effectiveness. It helps in creating the learning culture within the organization.

Organization climate:
Training and development helps building the positive perception and feeling about the
organization. The employees get these feeling from leaders, subordinates, and peers. Training
and development is the framework for helping employees to develop their personal and
organization skills, knowledge, and abilities. The focus al off aspects of human resource
development is on developing the most superior workforce so that the organization and
individual employees can accomplish their work goals in service to customers.
Employees of labor should enable employees to pursue training and development in a direction
that they choose and are interested in, not just in company-assigned directions. Companies
should support learning, in general, and not just in support of knowledge needed for the
employees current or next anticipated job. It should be noted that the key factor is keeping the
employee interested, attending. For every employee to perform well especially supervisors and
managers there is need for constant training and development. The right employee training,
development and education provides big payoffs for the employer in increased productivity,
knowledge, loyalty and contribution to general growth of the firm. In most cases external
training for instance provide participants with the avenue to meet set of people in the same field
and network. The meeting will give them the chance to compare issues and find out what is
obtainable in each environment.
DIFFERENCES BETWEEN TRAINING AND DEVELOPMENT
Training and development both plays significant role to develop and increase the
skill, knowledge and ability of present employee of the organization. People
sometimes merge the significance of training and development and thought both
are same. But in wide perspective there are huge difference between training and
development. Here I tried to find out some major difference between training and
development. They are following:
Basis of comparison Training Development
Meaning Training is a learning process Development is an educational
in which employees get an process in which the personnel
opportunity to develop skill, of the organization get the
competency and knowledge chance to learn the in depth
as per the job requirement. application of theoretical
knowledge for their overall
growth.
Term Short term Long term
Focus on Present Future
Concentrated Job Career
towards
Instructor Trainer Self
Objective Improve the work Prepare employees for future
performance of the challenges
employees
Number of Many Only one
individual
Aim Specific job related. Conceptual and general
knowledge.

REASONS FOR EMPLOYEE TRAINING AND DEVELOPMENT

The reasons behind employee training and development cannot be overemphasized. From our
discussions so far one can easily deduce some reasons behind firms engaging in training and
developing their staff. We will summarize some of the reasons thus.
 When needs arise as a result of finding from the outcome of performance appraisal.
 As part of professional development plan.
 As part of succession planning to help an employee be eligible for a planned change in
role in the organization.
 To imbibe and inculcate a new technology in the system.
  Increased job satisfaction and morale among employees.
 Better inter personal relationship and customer satisfaction.
 Increased efficiencies in processes, resulting in improved financial gain.
 Increased capacity to adopt new technologies and methods.
 Increased innovation in strategies and products.
 Reduced employee turnover.
 Enhanced company image.
 Better risk management and staff safety consciousness.

MANAGEMENT DEVELOPMENT PROGRAM

To improve your skills and effectiveness as a managing director or owner manager, help you
cope with the complexity of running a growing business and delivered without you having to
spend time away from the business. We have developed an executive level training course that
Will equip you with the essential theoretical background of management and support you
through the application of theory into practice. This highly tailored approach appraises what
would be appropriate for the situation faced by the participant and the level of experience and
expertise they already have. The program is rests on three pillars.

Analysis
Understanding the external and internal business environment. Selecting and applying
appropriate business models and tools.

Synthesis
Drawing together the results of the analysis into a competitive strategy. Applying management
theory to choose a strategy that will provide competitive advantage and premium prices.

Implementation
Planning and putting the strategy into effect. Change management tools and techniques,
alternative organizational structures and selecting the most suitable. Measuring, monitoring, and
modifying plans. This program is aimed at senior managers, managing directors and owner
managers of growing businesses.

TRAINING EVALUATION
Providing a sound definition more than a lexicographic exercise; Ii can clarify and refine
concepts, generating a framework within which to develop a pragmatic approach to the subject.
Evaluation is no exception, and the apparent confusion in the minds of many as to the purposes
and functions of evaluation corresponds to the ignorance or misunderstanding of what is meant
by this and related terms such as research, validation, and assessment. A variety of definitions
can be found in the literature, many of them simulative, and the inconsistencies in the use of the
terminology has “Muddied the waters” of training evaluation a great deal, affecting the success
of evaluation efforts. Bramley & New by (1984) summarize the diversity of terminology used
over the past decade, and offer a most helpful comprehensive table showing the
interrelationships between various concepts of evaluation. Rackham (1974, 454) offer perhaps
the most amusing and least academic definition of evaluation, referring to it as a form of training
archaeology where one is obsessively digging up the past in a manner unrelated to the future!

Training evaluation can be best implemented through maintaining following method:

I. Describe the outputs: Outputs are descriptive data about the training programs and
participants, including demographic data.
II. Pre-training assessment: This step uncover the participants’ past experience as well as
current competencies, learning needs and expected application of learning.
III. Post-assessment (reaction): This addresses participants’ reactions to the training
experience for example, their learning environment, format and instructor methods,
general satisfaction.
IV. Post-assessment (learning): This piece is self-assessment of knowledge or skills gained
and the participants’ expected application of learning.
V. Follow-up: This process may include several methods to assess the outcomes and effect
of training programs over time.

In the literature reviewed, where a definition of evaluation is given, the majority of writers tend
to view it as the gathering of information in order to make value judgments about the program,
such as necessary changes or the possible cessation of the program. Williams (1976, 12) defines
evaluation as the assessment of value or worth. Harper & Bell (1982, 24) refer to the planned
collection, collation and analysis of information to enable judgments about value and worth.
However, as Williams (1976, 12) observes, value is a rather vague concept, and this has
contributed to the different interpretations of the term evaluation.
TRAINING EVALUATION PROCESS
Organizing a successful training program is complex. Most of the time the actual objectives of
training program are not achieved because of lack of knowledge about process and error
evaluation. Here I include a modern process for conducting training evaluation:

Counduct Need Analysis

Develop a measurable learning objectives and analyis transfer of

learining

Develop outcome measures

Chose and evaluation startegy

Paln and execute the evalution process and control

Diagram: Training evaluation process

PURPOSE OF EVALUATION
As well as the lack of agreed-on definition of evaluation, there is an equally broad range of
opinions as to the purpose of evaluation. More than 20% of the writers neither describe nor
imply a purpose for the evaluation. Where purposes are outlined, they provide some telling
sights. For example, 15% see the purpose of evaluation as justifying the training departments
existence and providing evidence of cost benefit to the organization. While a mere 2% consider
assessing trainee reaction to be the purpose of evaluation, and 50% see the purpose as judging
the quality and worth of the program in order to effect improvements and or identify the benefits
of the training it should be remembered that studies already referred to provide evidence that
many trainers are not evaluation beyond the level of trainee reactions.