HUMAN RESOURCE MANAGEMENT

Meaning

HRM – a process of bringing people & organization

together so that the goals of each are met.

It’s an art of procuring, developing & maintaining

competent work force to achieve the goals of an
organization in an effective & efficient manner.

It’s concerned with most effective use of people to

achieve organizational & individual goals, it’s a way
of managing people at work so that they give their
best to the organization.
Nature of HRM

• Pervasive Force (its present in all enterprises & all

levels of management)

• Action Oriented (emphasis on action, rather than

on record keeping, written rules or procedures)

• Individual Oriented (it helps employees to develop

their potentialities & motivates employees by the
process of recruitment, selection, T & D and wage
policies + benefits)
• People Oriented (it puts people on assigned jobs
for producing good results & hence resultant gains
are used to motivate & reward people for better
productivity)

• Development Oriented (all developmental

activities performed to improve the potentiality of
employees i.e T & D – improving quality & skills)

• Integrated Mechanism (it builds cordial

relationship b/w people at various levels & also
integrates the human assets in the best possible
manner)
• Comprehensive Function (HRM is a compiled
depiction of organizational decisions & its impact
on workforce i.e developing potentialities of
employees resulting in maximum job satisfaction +
good results in the organization)

• Auxiliary Services (HR dept assist & advice

operational managers for effective results & hence
HR manager is a specialist adviser)
• Interdisciplinary Function (it’s a multidisciplinary
activity utilizing knowledge & inputs drawn from
psychology, economics, sociology etc)

• Continuous Function (it requires a constant

alertness & awareness of HR approaches & its
significance in the routine operations)
Scope of HRM

• Personal aspect

Concerned with MPP, recruitment, selection,

placement, transfer, promotion, T&D, retrenchment,
remuneration, incentives, productivity etc.

• Welfare aspect

Concerned with working conditions & amenities i.e

cafeteria, lounge, transport & medical aids,
education, health & safety, recreational facilities.
• Industrial relations aspect

Concerned with union mgt relations, joint

consultation, collective bargaining, grievance &
disciplinary procedures, settlement of disputes etc.
Significance of HRM
HRM in an organization helps in multifarious
(diverse) ways

• At enterprise level

Good HR practices helps in attracting & retaining

best people in the organization for better
productivity & planning process alerts company to
the kind of personnel required in an organization.
• At individual level

It helps employees by; promoting teamwork & team

spirit among employees, providing growth
opportunities to its people by performance
appraisals & other basis, it allows people to work
with diligence & commitment.

• Societal level

Society on a whole is a major beneficiary of good

HR practices, employee opportunities multiply,
scarce talents put to optimal use.
Objectives of HRM
• To help the organization reach its goals

• To employ skills & abilities of the workforce

efficiently (prime objective of HRM – to make its
personnel highly productive benefiting
customers & employees)

• To provide the organization with well trained &

well motivated employees (HRM demands from
motivated employees – maximum efforts & better
results on which assessment is performed &
remunerated accordingly)
• To develop & maintain quality of work

• To increase to the fullest of employees job

satisfaction & self actualization (it prompts &
stimulates employees at work to realize their
potentials to reach the goals effectively &
efficiently)

• To communicate the HR policies to all

employees
• To help maintain ethical policies & behavior (to
practice morality in mgt to prepare people for
change, dealing with conflicts etc.)

Therefore, HRM should try to attain

economically & efficiently the organizational
goals & objectives, serve to the highest possible
degree of individual goals & pursue the general
welfare of the community.
Human Resource Functions
• Ensuring organization’s requirements &
correlating the needs
• Carrying out job analysis to identify the specific
requirements of individual jobs within the
organization
• Forecasting HR requirements necessary for
the organization to achieve the goals
• Developing & implementing a framework to
meet the requirements
•Recruiting & selecting personnel to fill specific jobs
within the organization
• Orienting & train ing employees
• Designing & implementing organizational
development programs
• Designing systems for performance appraisal
of individuals within the organization
• Assisting employees in developing career
plans
• Designing & implementing the compensation
system for all employees
Systems approach to HRM
A system is a set of a interrelated but separate
elements or parts working towards common
goal.
Product Subsystem

HR Subsystem
Finance Procurement, T&D, Marketing
Subsystem Appraisal, Rewards, Subsystem
Compensation etc

Technical Subsystem

(HRM – As a central subsystem in an enterprise)

Challenges faced by HRM
• Increasing size of workforce (as organization
are increasing in size & complicity – no. of
people working increases & hence managing
the workforce become a serious problem &
challenging task, since the workers are more
conscious of their rights)
• Changing psycho – social system (earlier
traditional concept of being autocratic in
performing technical functions are now
transformed into democratic humanistic system
through human participation in technical
operations)
• Satisfaction of higher level needs (evolving
appropriate techniques & strategies to motivate
workers & getting the work done)
• Equalitarian Social System (organizations of
future will give a lower emphasis on hierarchical
structure & on a long run will eliminate these &
move towards equalitarian social system)
• Technological advancements (unemployment
resulting from modernization & technological
advancements will be liquidated by properly
assessing man power needs & training of
redundant employees in alternate skills)
• Computerized information system (it has an
increasing impact on co-ordination in various
strategic levels)
• Changed in legal environment (to meet with
increasing changes in the legal environments,
adjustments could be done by utilizing the HR
personnel)
• Management of human relations (changes in the
system coupled with rising educational levels would
induce higher degree of participation in managerial
decisions)
Determinants of HR Approaches
• Globalization of business
• Social nature of man
• Emphasis on group activity & team work
• Inter cultural relations
• Technological developments
• Increasing conflict in organization
• Personnel relations
• Social change
Concepts of HR approaches
• Primary work group
• Inter-relatedness of personality
• Common goals & growth cohesiveness
• Carrying organization
• Organizational culture of trust & understanding
• Human motivation
Environment of HRM
• Late 1970s people realized productivity depends
on people. “Personnel came to be called as human
resource”.
• Sharing global thinking Indian managers &
behavioral scientists accepted & introduced certain
models & theories.
• HRM basically refers to a balanced interaction
b/w two sets of expectations.
• A HRM environment ensures harmony between
superiors & subordinates.
• However, a healthy corporate philosophy ensures
uniform policies binding all levels of an organization
& quite essential for a good HRM.

• In order to achieve an effective HRM strategy its

necessary to integrate HRM + HRD + IR + OD.

• HRM strategies of 21st century emphasizes on

better individual organization interface &
organizational effectiveness than on personnel
success.
• Environment is an important variable in the HRM
model.

• It describes all those forces, which have their

bearing on the functioning of the HR dept.

• The forces are political - legal, economic,

technological, cultural which are popularly known
as external environment and unions, organizational
culture & conflict, professional bodies are popularly
known as internal environment of HR dept.
External Forces
It includes political - legal, economic, technological
& cultural factors the influence of which on HRM is
considerable.
Political – Legal Environment: It covers the
impact of political institutions on HRM dept. In a
democratic political setup there are 3 institutions
which constitutes political environment.
• The Legislature (law making body)
• The Executive (law implementation)
• The Judiciary (watchdog)
The interface b/w political environment & labour
takes places through an array of labour laws. The
issues are related to;
• Terms & conditions of employment
• Working conditions
• Payment of wages
• Provisions relating to industrial disputes
All HR activities are affected in one or the other
way to the above mentioned issues. Eg: HR
planning, Recruitment & Selection, T & D,
Remuneration, IR etc.
Economic Forces:
It refers to all those economic forces which has a
bearing on the HR function.
Growth strategy, industrial production, agriculture,
population, national & per-capita income, money &
capital markets, suppliers, competitors etc are the
components of economic environment.
Another core component of Economic Environment
is Globalisation.
Technological Forces:
How does technology affect HR functions?
• Advent of technology persuades a job to be of
more intellectual nature & upgraded function.
• The introduction of new technology dislocates
workers unless they become user friendly with new
machines.
• User-friendly personnel jobs become challenging
& rewarding.
• With upgrading jobs, technology has its impact on
human relations.
• Job holders will become highly professionalise &
knowledgeable
Cultural Forces:
Culture refers to the complexity which includes
knowledge, belief, art, morals, customs etc
acquaint by an individual as a member of a society.
Culture influences HR function by:
• Culture creates type of people who become
member of an organization
• Attitude of workers towards work is a result of
their cultural background
• Time, dimension influencing HRM has its roots in
culture (Time = Orientation on past, present &
future)
• Finally work ethics, effort-reward expectations
which are a significant input determining individual
behavior stands as a result of culture
Internal Forces
Prominent among them are:
Unions:
• A trade union may be understood as an
association of workers formed to protect their own
individual interest.
• All HR activities are carried out in consultation
with union leaders.
Organizational Culture & Conflict:
All organizations have its own culture.
Organizational Culture reflects the past & shapes
the future. There are often conflicts b/w
organizational culture & employees attitudes.
Conflict arises because of following factors:
• Personal Goals vs Organisational Goals
• Personal Ethics vs Organisational Ethics
• Rights vs Duties
• Obedience vs Self Respect
• Discipline vs Autonomy
• Self Confidence vs Arrogance
• Authority vs Accountability
• Leadership vs Followership
• Delegation vs Abdication

The above are not hypothetical conflicts, they occur

daily in organizations. HR depts. are expected to
develop & enforce policies in these areas.
Professional bodies:
Bodies like NIPM (National Institute of Personnel
Management) in connection with HR experts
organizes orientation programmes, seminars &
conferences etc. And those institutes also offers
PGDs.
Knowing the Environment
Three major concepts are evolved.
• Enacted Environment (Organization creates own
environment out of external environment)
• Domain & Domain Consensus (domains
specifies a territory of its own for an organization.
It comprises stake holders, owners, employees,
customers, government etc. Domain consensus
is formed when all these groups agree upon the
domain of the organization.)
• Task Environment (it specifies range of products
to be offered, the technology to be employed &
strategies to be used to counter competition)
Human Resource Planning
• HRP – Process of forecasting an organization’s
future demand & supply of the right type of people
in the right number.
• HRP – Subsystem in the total organizational
planning.
• HRP – Facilitates the realization of the company’s
objectives by providing the right type & right no. of
personnel.
• HRP – Called as Manpower Planning, Personnel
Planning, Employment Planning.
Definition: HRP
• Includes the estimation of how many qualified
people are necessary to carry out the assigned
activities, how many people will be available.
• It must ensure that personnel supply equals
personnel demand at the appropriate point in the
future.
• It is a process by which an organization ensures
that it has the right no. & kind of people, at the right
place, at the right time, capable of efficiently &
effectively completing those tasks that will help the
organization achieve its overall objectives.
Definition: HRP (contd…)
• HRP translates the organizations’ objectives &
plans into the no. of workers needed to meet those
objectives.
• Without a clear cut planning, estimation of an
organizations human resource need is reduced to
mere guess work.
Importance of HRP
1. Future personnel needs
• Planning helps to determine future personnel
needs.
• Eg. Surplus / Deficiency in staff strengths is the
result of the absence of or defective planning.
• All public sector enterprises find themselves
overstaffed now as they never had planning of their
personnel requirements & the factor not widely
known is the absence of succession planning in
most public sector units.
• Absence of succession planning has resulted in a
situation where many organizations function
without chief executive.
• The anatomy of surplus labour, Juxtaposed with
the lack of top executives stems from the absence
of a defective HRP)
2. Coping with changes
• HRP enables an enterprise to cope with changes
in competitive forces, markets, technology,
products & govt. regulations.
• Such changes generate changes in job content,
skill demands & no. & type of personnel.
3. Creating highly talented personnel
• Jobs – getting highly intellectual & incumbents are
getting vastly professionalized.
• HR manager must use his ingenuity to attract &
retain qualified & skilled personnel.
• Job hopping creates frequent shortages in the
organization.
• MPP helps to prevent such shortages.
• Further more technology changes will often
upgrade some jobs & degrade others.
4. Protection of weaker sections
• In matters of employment & promotions, sufficient
representation needs to be given to SC/ST
candidates, physically handicapped, OBC etc.
• These groups enjoy a given percentage of jobs,
not withstanding the constitutional provisions which
guarantees equal opportunities for all.
• A well conceived personnel planning programme
would protect the interest of such groups.
5. International strategies
• International expansion strategies depend upon
HRP with the growing trends towards global
operations, the need for HRP will grow & the need
to integrate HRP move closely into the
organizations strategic plans.
• HRP will grow increasingly important as the
process of meeting staffing needs
6. Foundation for personnel functions
• MPP provides essential info for designing &
implementing personnel functions, such as
recruitment, selection, T&D, personnel movement –
transfers, promotion etc.
7. Increasing investments in human resources
• HRP is the investment an organization makes in
its human resources.
• An employee who gradually develops his skills &
abilities becomes a more valuable resource.
8. Resistance to change & move
• There is a growing resistance among employees to
change & move.
• There is also a growing emphasis on self evaluation
& on evaluation of loyalty & dedication to the
organization.
• Certain changes makes it more difficult for
organizations to assume that it can move its
employees around anywhere & anytime it wants.
9. Other benefits
• Upper management has a better view of HR
dimensions of business decision.
• Time invested to locate talent.
Factors influencing HRP
• Type & strategy of organization
• Organizational growth cycles & planning
• Time horizons
• Type & quality of forecasting info
• Nature of jobs being filled
• Off loading the work
a. Type & strategy of organization
The type of organization is an important
consideration because it determines the production
processes involved, no. & type of staff needed &
the supervisory & managerial personnel required.
The strategic plans of the organization define the
organization’s HR needs.
Eg: Strategies of Internal Growth –
Hiring Employees, Acquisitions/Mergers, Plans to
layoffs, since some mergers create
duplication/overlapping positions which could be
handled more efficiently with fewer employees.
Primarily, organization decides either to be
proactive/reactive in HRP i.e either to carefully
anticipate the needs & systematically plan them to
fill them far in advance or it can simply react to
needs as they arise.
Secondly, the organization must determine the
breadth of the plan, organization could choose a
narrow focus by planning such as
recruitment/selection or it could make a broad
focus by planning in all areas including T&D,
remuneration etc.
Thirdly, organization could go for a formality of
plan. It can decide to have a formal/ an informal
plan.
Formal – only managers, informal – written
document, evidence etc.
Finally, the organization must make a decision on
flexibility – the ability of HR plan to anticipate &
deal with contingencies.
b. Organizational Growth Cycles & Planning
The stage of an organization’s growth can have
considerable influence on HRP.
Small organizations in the ernbryonic stage may
not have personnel planning.
Need for planning is felt when the organization
enters the growth stage.
HR forecasting becomes essential. Internal
development of people also begins to receive
attention in order to keep up with the growth.
A mature organization experiences less flexibility
and variability. Growth slows down. The workforce
becomes old as few younger people are hired.
Planning becomes more formalized and less
flexible and innovative. Issues like retirement and
possible retrenchment dominate planning.
Finally, in the declining stage, HRP takes a
different focus.
Planning is done for layoff, retrenchment and
retirement.
Since decisions are often made after serious
financial and sales shocks are experienced by the
organization, planning is often reactive in nature.
c. Time Horizons
Yet another major factor affecting personnel
planning is the time horizon.
On one hand, there are short-term plans spanning
six months to one year.
On the other hand, there are long-term plans,
which spread over three to twenty years.
The exact time -span, however, depends on the
degree of uncertainty prevailing in an
organization’s environment.
Plans for companies operating in an unstable
environment, computers for example, must be for a
short period.
Plans for others where environment is fairly stable,
for example a university plan, may be long-term.
In general, the greater the uncertainty, the shorter
the plan's time horizon and vice versa.

Table in the next page…

Degree of uncertainty and length of planning period
Short Planning Period –
Uncertainty/Instability
Many new competitors
Rapid change in social & economic
conditions
Unstable product/service demand
patterns
Small organizational size, poor
management practices (Crisis
Management)
Long Planning Period –
Certainty/Stability
Strong competitive position
Evolutionary, rather than rapid
social, political & technological
change
Stable demand patterns
Strong management practices
d. Type & Quality of information
The information used to forecast personnel needs
originates from a multitude of sources.
A major issue in personnel planning is the type of
information, which should be used in making
forecasts.

Table in the next page…

Levels of HRP information
Strategic General Specific Information
Information Organizational Necessary for HRP
Information
Product Mix Organizational structure Job analysis
Customer Mix Information flows Skills inventories
Competitive Operating and capital Management inventories
emphasis budgets Available training and
Geographic limits of Functional area development
market objectives programmes
Production schedules Recruitment sources
Distribution channels Labour market analysis
Sales territories Compensation
Production processes programmes
Level of technology Constitutional provisions
Planning horizons and labour laws
Retirement plans
Turnover data
Closely related to the type of information is the
quality of data used.
The quality and accuracy of information listed in
Table depend upon the clarity with which the
organizational decision makers have defined their
strategy, organizational structure, budgets,
production schedules and so forth.

Contd…
In addition, the HR department must maintain well-
developed job-analysis information and HR
information systems (HRIS) that provide accurate
and timely data.
Generally speaking, organizations operating in
stable environments are in a better position to
obtain comprehensive, timely and accurate
information because of longer planning horizons,
clearer definition of strategy and objectives, and
fewer disruptions.
e. Nature of jobs being filled
Personnel planners must consider the nature of
jobs being filled in the organization.
Job vacancies arise because of separations,
promotions and expansion strategies.
It is easy to employ shop-floor workers, but a lot of
sourcing is necessary for hiring managerial
personnel.
It is, therefore, necessary for the personnel
department to anticipate vacancies, as far in
advance as possible, to provide sufficient lead time
to ensure that suitable candidates are recruited.
f. Off-loading the work
Several organizations off load part of their work to
outside parties either in the form of sub-contracting
or ancillarisation.
Off loading is a regular feature both in the public
sector as well as in the private sector.
Most organizations have surplus labour and they
do not want to worsen the problem by hiring more
people. Hence, the need for off loading.
Contd…
Some organizations are known to carry the concept
of off-loading to ridiculous lengths.
As companies outsources major part of its work,
and in the process, the regular employees sit idle.
Kickbacks from owners of ancillary units are the
cause for such ancillarisation.
HRP is rarely required in such circumstances.
 HRP Process
Environment

Organizational
Objectives & Policies

HR Needs Forecast HR Supply Forecast

HR Planning

HRP Implementation

Control & Evaluation

of Programme

Surplus Shortage
Restricted Hiring Recruitment and
Reduced Hours Selection
VRS, Lay off etc
Job Analysis & Job Design
Job Analysis = Process of collecting information
w.r.t a Job.
Defn:
JA is the process of studying & collecting info
relating to the operations & responsibilities of a
specific job.
It’s a systematic exploration of the activities within
a job. It’s a basic technical procedure used to
define the duties, responsibilities & accountabilities
of a job.
A job is a collection of tasks that can be performed
by a single employee to contribute to the
production of some product or service provided
by the organization. Each job possess certain
requirements associated with the job & JA is a
process used to identify these requirements.

The process of JA results in two sets of data i.e.

a. Job Description
b. Job Specification
 JA – Process of obtaining all potential job facts

Job Description Job Specification

* Job Title * Education

* Vacation * Experience
* Job Summary * Training
* Duties * Judgement
* Machine tools & * Physical effort & skills
equipments * Communication skills
* Materials consumed
* Working Conditions
JA involves following steps:
– Collecting & recording Job information
– Checking job info for accuracy
– Preparing job description based on info
– Using the info to determine the skills, abilities
& knowledge required for the job
– Updating info
Process of JA
Strategic Choices

Gather Information

Process Information Uses of JD & JS

* Personnel Planning
Job Description * Performance Appraisal
* Hiring
*T&D
Job Specification
* Job Evaluation &
Compensation
* Health & Safety
* Employee Discipline
* Career Plan
1. Strategic Choices: w.r.t JA, an organization is
required to make atleast 5 choices.
a. Extent of employee involvement in JA [JA =
attributing info w.r.t duties + skills +
responsibilities to perform a job. Info been
collected frequently & employees are asked to
supply vital info & now extent of involvement
becomes prime question?]
b. Level of details [Level of details required in JA
depends upon the purpose for which job details
are been collected]
c. Frequency of Analysis [JA is mostly conducted
during newly established organization, new
designation, changes in the profile of a job w.r.t
technological advancements etc.]
d. Past Oriented Vs Future Oriented [Organization
undergoing technological changes tends to follow
future oriented approach for JA. i.e,
specifications w.r.t procedure carried for
performing a job resulting in better training
facilities for personnel]
e. Source of data [direct source of information w.r.t
a job is the job holder]
2. Information gathering
• What type of data? (w.r.t work activities, job
contexts, personnel requirements etc.)
• What methods to be employed for data
collection? (observation, interview, check list,
diary method)
• Who should collect the data? (trained job
analyst, supervisors, job incumbents etc)
3. Information processing
Once job information been collected needs to be
processed so that its useful for personnel
functions. Secondly, its useful to prepare job
description & job specification.
Purpose of JA
* HRP
* Recruitment &
Selection
Job Description
*T&D
Job * Job Evaluation
Analysis * Remuneration
* Performance
Appraisal
Job Specification
* Personal
Information
* Safety & Health
Methods of Collecting Job Data

Interviews

Observation Questionnaire

Job Data

Check Lists Diary

Technical
Conference
 Recruitment & Selection Needs

Determined
HRP recruitment & JA
selection needs
Recruiting makes it possible to acquire the number &
type of people necessary to ensure the continued
operation of the organization.
Recruiting is discovering the potential applicants for
actual or anticipated organizational vacancies i.e
linking activity which brings together those with jobs
& job seekers.
Here the purpose is to locate sources of man power
to meet job requirements & job specifications and
hence considered to be an important function of
personnel administration.
Definition
It is a process of finding and attracting capable
applicants for employment. The process begins when
new recruits are sought and ends when their
applications are submitted. The result is a pool of
applicants from which new employees are selected.
Purposes & Significance
• Determining the present & future requirements of the
organization in conjunction with its personnel planning
and JA activities.
• Increasing large pool of applicants at minimum costs.
• It increases the success rate of selection process in
terms of screening.
• Evaluate the effectiveness of various recruiting
techniques & sources for all types of job applicants.
 Factors governing Recruitment

External Forces Internal Forces

* Supply & * Recruitment
demand policy
* Unemployment * HRP
rate Recruitment * Size of the firm
* Labour market * Cost
* Political - Social * Growth and
* Sons of soil expansion
* Image
 Recruitment Process

Personnel Job Employee

Planning Analysis Requisition

Job Recruitment Searching

Applicant Potential
Vacancies Planning Activation
Pool Hires
* Numbers “Selling”
* Types * Message
* Media

Strategy
Development Applicant Evaluation
* Where Population and
* How Control
* When
 SELECTION
Definition:
Selection is the process of picking individuals (out of
pool of job applicants) with requisite qualifications
and competence to fill jobs in the organization.
It is the process of differentiating between applicants
in order to identify (and hire) those with a greater
likelihood of success in a job.
Recruitment and Selection are the two crucial steps
in HR process and are often used interchangeably.
Recruitment refers to the process of identifying and
encouraging prospective employees to apply for jobs,
selection is concerned with picking the right
candidates from a pool of applicants.
Recruitment is said to be positive as it seeks to
attract as many candidates as possible. Selection on
the other hand, is negative in its approach in as
much as it seeks to eliminate as many unqualified
applicants as possible in order to identify the right
candidates.
Role of Selection
The role of selection in an organization’s
effectiveness is crucial because
• Work performance depends on individuals. The
best way to improve performance is to hire people
who have the competence and the willingness to
work.
• Cost incurred in recruiting and hiring personnel
speaks volumes about the role of selection.
Selection Process
Selection is a long process, commencing from the
preliminary interview of the applicants & ending
with the contract of employment.
 ORIENTATION & PLACEMENT
Definition
Orientation also called induction, is damaged to
provide a new employee with the information he or
she needs to function comfortably and effectively in
the organization.
A formal definition of orientation is “planned
introduction of employees to their jobs, their co-
workers & the organization”.
Purpose of Orientation
Organizations are known to spend a few weeks or
even months on orientation programmes. The idea is
to make the new employees feel ‘at home’ in the new
environment.
Effective orientation programmes reduce the anxiety
of the new employees by providing them information
on the job environment and on supervisors, by
introducing them to co-workers, and by encouraging
them to ask questions.
Orientation seeks to expose new employees to all
areas of the organization. This prevents inducts from
getting overspecialized. Induction makes new hires
become productive to the company quickly.
Finally, a good orientation programme will create a
favourable impression of the organization & its work.
PLACEMENT
Placement is understood as the allocation of people
to jobs. It’s a assignment or reassignment of an
employee to a new or a different job.
Placement includes initial assignment of new
employees and promotion, transfer or demotion of
present employees.
TRAINING & DEVELOPMENT
Training and development constitute an ongoing
process in any organization.
In simple terms, training & development refer to the
imparting of specific skills, abilities and knowledge to
an employee.

The need for training and development is determined

by the employee’s performance deficiency computed
as follows:
Training & Development need = Standard
Performance – Actual Performance
Training refers to the process of imparting specific
skills. Education, on the other hand, is confined to
theoretical learning in classrooms.

Training Education
Application Theoretical Orientation
Job Experience Classroom Learning
Specific Tasks General Concepts
Narrow Perspective Broad Perspective
IMPORTANCE OF TRAINING AND
DEVELOPMENT
Training and development programmes help to
remove performance deficiencies in employees. It
is required when a
• The deficiency is caused by the lack of ability
rather than a lack of motivation to perform.
• The individuals involved have the aptitude &
motivation need to learn to do the job better.
• Supervisors & peers are supportive of the desired
behaviors.
Training Process

Organisational Objectives
& Strategies

Assessment of Training Needs

Establishing of Training Goals

Devising Training Programme

Implementation of
Training Programme

Evaluation of Results
 Methods of Training
On the job training Off the job training
Orientation Training Vestibule
Job instruction training Lecture
Internship Films
Job rotation Conference or Discussion
Coaching Case study
Role Playing
Programmed Instruction
Laboratory training
ON THE JOB TRAINING

Orientation Training – It is given to the new hires for

adapting himself to the new environment.

Job Instructing Training – Step by step training

process w.r.t way of performing jobs, job
knowledge & skills.

Internship – To be associated with an organization

for a short period to have a technical knowhow of
the industry.
Job Rotation – Movement of trainee from one
job to another & receives job knowledge &
experience in different departments &
assignments.

Coaching – Placed under a particular

supervisor who coaches the trainee. He
provides suggestions for improvement in work
for the trainee.
OFF THE JOB TRAINING

Vestibule – Actual work conditions are simulated in a

classroom. Commonly used for training clerical &
semi-skilled jobs.

Lecture – A traditional & a direct method of

instruction where the instructor organizes materials &
gives it to a group of trainees in the form of a talk.

Films – Documentaries, clippings etc.

Conference or Discussion – A group of people who

pose ideas, examine & share facts & draw
conclusions which contributes to job performance.
Case Study – This analysis helps to examine
situations & encourage decision making capabilities
of the analyst.

Role Playing – Human interaction that involves

realistic behavior in imaginary situations.

Programmed Instruction – Subject matter to be

learned is presented in a series of planned
sequential units. The trainee answers questions / fill
in the blanks by crucial examination.

Laboratory Training – Helps in self examination to

test reliability & validate the statement / theory.
PERFORMANCE APPRAISAL
Performance Appraisal is the assessment of an
individual’s performance in a systematic way, the
performance being measured against such factors
as job knowledge, quality and quantity of output,
initiative, leadership abilities, supervision,
dependability, co-operation, judgment, versatility,
health and the like.
Assessment should not be confined to past
performance alone. Potentials of the employee for
future performance must also be assessed.
It is the systematic evaluation of the individual w.r.t
his / her performance on the job & his / her potential
for development.

PA is a formal structured system of measuring &

evaluating an employees job related behaviors &
outcomes to discover how & why the employee is
presently performing on the job & how the employee
can perform more effectively in the future so that the
employee, organization & society all benefits.
Objectives of Performance Appraisal
• To effect promotions based on competence &
performance.
• To confirm the services of probationary employees
upon their work getting completed satisfactorily.
• To assess T&D needs of employees.
• To decide upon a pay rise where regular pay
scales are not fixed.
• To improve communication as it improves
communication amongst the superiors & the
subordinates & helps them to understand personal
goals & concerns.
 Appraisal Process

Objectives of PA

Establish Job Expectations

Design & Appraisal Program

Appraise Performance

Performance Interview

Use appraisal data for appropriate

purposes
 Methods of Performance Appraisal
Methods

Past Oriented Future Oriented

Confidential Report Management by objectives
Graphic Scale Method 360-Degree appraisal
Straight Ranking Method Behaviorally Anchored
Paired Comparison Method Methods
Grading System HR Accounting
Forced Distribution Method Assessment centre
Checklist Method
Critical Incident Method
Free Essay Method
Group Appraisal
Field Review Method
Nominations
MBO
Refers to a comprehensive organization wise goal
setting & appraisal programme that includes:
• Set organizational goals
• Set departmental goals
• Determine expected results
• Performance review
• Provide feedback
360 – Degree Appraisal
It involves systematic collection of performance data
on an individual or a group, derived from a no. of
stake holders being the immediate supervisors, team
members, customers, peers & self.
The appraiser should be capable of determining
what is more important & relatively less important
factors.
He should prepare reports & make judgments
without getting biased.
BARS
A scale with specific behavioral examples of good or
poor performance.
The method employs individuals who are familiar
with a particular job to identify its major components.
They then rank & validate specific behaviors for
each of the components like:
• Collecting critical incidents
• Identifying performance appraisal
• Classifying incidents
• Assigning scale values
• Producing final results.