Notes of HRM Unit No. 04 (Training and Development)

 Notes of Human Resource Management

UNIT NO. 04

Training and Development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Meaning of Human Resource Development

In 1970, Leonard Nadler published his book “Developing Human Resources” in which he coined the term “Human Resource Development”

Of all the resources the human resource is the most significant and only active factor in production.

Human Resource Development is the continuous process of improving the capabilities required to achieve organizational and individual goals.

Human------------ People

Resource---------- Assets

Development----- Change and Growth by continuous learning through experience and training

It includes overall physical, mental, and spiritual development.

It is a mechanism that makes/ensures an organization's human resources are skillful, knowledgeable, competent, and possess the correct behavior attitude for the present as well as the future. HRD is the set of systematic and planned activities designed by an organization to provide its members with the opportunities to learn the necessary skills to meet current and future job demands.

Human Resource Development (HRD) refers to the training and development of a company’s employees. It is part of HRM.

Definition of Human Resource Development

According  to Leonard Nadler

HRD is a series of organized activities conducted within a specialized time and designed to produce behavioral changes.

According to South Pacific Commission

HRD is equipping people with relevant skills to have a healthy and satisfying life.

 

Features of Human Resource Development

Process

It is a process of providing opportunities for employees to learn skills.

Continuous Process

HRD is a continuous process for the development of all types of skills of employees such as technical, managerial, Behavioural, and conceptual.

Pervasive in Nature

HRD is an essential subject everywhere, be it a manufacturing organization or service sector industry.

Based on Techniques

HRD embodies with techniques and processes such as performance appraisal, training, management, development, career planning, counseling, workers participation, and quality circles.

Learning

The essence of HRD is learning. The core of HRD is to enhance the quality of the workforce by creating an environment that fosters constant learning.

Career Development

HRD helps in the career development of individuals by matching employee characteristics with job requirements. The growth of the organization is achieved through the growth and development of individual employees.

Specific Duration

Any particular HRD program would have a specific duration. It could be for a short, medium, or long duration.

Development of Human Resource

It stresses the development of the human resources of the organization. It helps the employees of the organization to develop their general capabilities in relation to their present jobs and expected future roles.

Development of Team Spirit

HRD creates a healthy work environment, which helps to build team spirit and coordination among various groups and the department.

Organizational Development

HRD aims at not just the development of human resources, but at the progress of the organization as a whole. Positive changes in work culture, processes, and organizational structure are made.

Objectives of Human Resource Development

The objectives of HRD are as:

To prepare the employee to meet the present and changing future job requirements.

To prevent employee obsolescence.

To develop creative abilities and talents.

To prepare employees for higher-level jobs.

To impart new entrants with basic HRD skills and knowledge.

To develop the potentialities of people for the next level of job.

To aid total quality management.

To promote individual and collective morale, a sense of responsibility, cooperative attitudes, and good relationships.

To broaden the minds of senior managers by providing them with opportunities for an interchange of experiences within and outside.

To ensure smooth and efficient working of the organization.

To provide a comprehensive framework for HRD.

To enhance organizational capabilities.

To create a climate that enables every employee to discover, develop and use his/her capabilities to a fuller extent in order to further both individual and organizational goals.

 

Functions of Human Resource Development

Training and Development

Training is the process of providing employees with the skills and knowledge required for a particular job or task.

Development is the process of preparing employees for future work responsibilities and increasing their capacities to perform current jobs.

HRD plays an effective role in promoting the overall development of each employee working within the organization. It designs and implements various training programs that are aimed at imparting knowledge to the workforce. They are trained on how to perform efficiently using distinct tools and techniques at the workplace.  HRD facilitates workers in enhancing their skills, capabilities, and understanding of new concepts, which makes them overall qualified for performing their roles effectively.

Career Planning and Development

Career planning and development is another important function of HRD.

It is a continuous process whereby the individual improves and develops his skills.

Career development comprises two processes: career planning and career management. Career planning means the activities that employees need to perform.

Whereas, career management means steps that employees need to follow to achieve the plans.

Performance Appraisal

Employee performance appraisal or merit rating is an important function of human resource development. This is necessary for the FRD to assess the relative efficiency of various workers as reflected in their performance of their jobs. While job evaluation is concerned with the rating of the job to be performed. Performance appraisal is concerned with the rating of the workers on their jobs. HRD performs this function to analyze and classify the differences among the workers vis-à-vis job standards.

Organizational Change and Development

Another main function of the HRD is organizational change and development.

It involves organizational diagnosis, team building, task force, and other structural and process interventional such as role development, job enrichment, job redesigning, etc.

Meaning of Training

Training means equipping the employees with the required skills to perform the job. The candidates are sent for training so that they can perform in an expected manner.

Training is the process of teaching new and/or present employees the basic skills they need to effectively perform their jobs.

Training is a process in which the trainees get opportunities to learn the key skills, which are required to do the job.

It helps the employees to understand the complete job requirements.

The teacher trains the students by teaching them.

Example: if an accountant is sent to learn new software for accounting to prepare the books of accounts faster and accurately. This is called training.

Training is the act of increasing the knowledge and skills of an employee for performing the job assigned to him

Training is one of the most important functions of human resource management.

According to Edwin B. Flippo

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

Definition of Training

According to Dale S. Beach

Training is the organized procedure by which people learn knowledge and/or skill for a definite purpose.

 

Importance of Training

The importance of training is emphasized by the following factors

Increased Productivity

It improves the performance of employees. Better skilled workers increase the quantity and improve the quality of output. Wastage is reduced. It reduces the learning time with resultant productivity.

Improvement in Employee Morale

Training improves needed skills, which builds up confidence and satisfaction. This, in turn, develops enthusiasm and pride. Which are indicative of high morale.

Improves skills and Knowledge

Employee training programs help improve the knowledge and skills of employees to match the various changes in the industry. These improvements will positively affect the productivity of workers, which can increase the profit and efficiency of an organization.

Prepares the employees for higher Responsibility

Training programs can also help prepare employees who are moving into higher roles and taking on more responsibilities in an organization.

Reduction in Wastage and Cost

Workers learn how to make the optimum use of resources. Training leads to the economic use of material and machinery and helps minimize the cost of operations per unit.

Increased customer Satisfaction

As the training of employees ensures that the work undertaken by the employees is done in an efficient manner, the quality of the finished product also improves.

Moreover, as the efficiency of the employee's increases, the defects in the products would be reduced. Due to all these factors, customer satisfaction is enhanced.

 

Creation of Competitive Advantage

Training can be used as a strategic tool by the organization to retain skilled employees. When the organization is able to build and retain a workforce that is loyal and capable of meeting any situation, then it can stand its competition in the market.

Team Spirit

While undergoing training generally employees interact with each other without the barriers of the organizational setup. Due to this, friendliness among them increases and a feeling of belonging to a team is created between them. As a result, cooperation increases, and the members work hard to succeed as a team.

Get Better Health and Safety

A well-trained employee can maintain good health and safety in the organization. Because the trained worker is known to have a special skill in handling machines, tools, and equipment.

Chances of Promotion

Employees acquire skills and efficiency during training. They become more eligible for the promotion. They become an asset to the organization.

Process of Training

The Training Process comprises a series of steps that need to be followed systematically to have an efficient training program.

The following are the steps that are included in the training process:

Needs of Training

This is the first step in the training process. The need could be the introduction of new skills or to update the existing skills of the employee. In the case of employees working at a higher level, the training program is introduced to improve behavior skills and ensure teamwork in the organization.

 

Goals and Objectives of Training

The second step in the training process is setting the goals and objectives of the training.

Here are different goals and objectives the organization can set before implementation of the training program i.e. to improve skills, enhance knowledge

To provide knowledge about ethical conduct, change in attitude, extraordinary skills, etc.

Training Methods

This is the third step in the training process. After the determination of training needs and specification of objectives, an appropriate training method is to be identified and selected to achieve the stated objectives. There are a number of training methods available like orientations, lectures, case studies, role-playing, simulations, computer-based training, self-instruction, audiovisual training, team-building exercises, apprenticeship, and internships, job rotation, etc. but their suitability is judged as per the need of organizational training needs.

Implementation of the training program

After the selection of an appropriate method, the actual functioning takes place. Under this step, the prepared plans and programs are implemented to get the desired output.

Under it, employees are trained to develop for better performance of organizational activities.

Evaluation of the training program

It consists of an evaluation of various aspects of training in order to know whether the training program was effective. In other words, it refers to the training utility in terms of the effect of training on employees' performance.

6. Feedback

Finally, a feedback mechanism is created in order to identify the weak areas in the training program and improve the same in the future. For this purpose, information relating to classrooms, food, lodging, etc. are obtained from participants. The obtained information, is then, tabulated, evaluated, and analyzed in order to mark weak areas of training programs and for future improvements.

Methods of Training

Training method refers to a way or technique for improving the knowledge and skills of an employee for doing assigned jobs perfectively. The organization has to consider the nature of the jobs, size of the organization & workers, types of workers, and cost of selecting a training method. The HR department is responsible for the choice and selection of training methods used for the entire organization.

There are two methods of training

On-the-job/internal/hands-on training

Off-the-job training

On–the–job training

On-the-job training is based on the principle of learning by doing. It is the oldest and most prevalent method of training. It refers to the training which is given to the employee at the workplace by his experienced and skilled workers or immediate supervisor.  When the employees are trained while they are performing their job it is known as on-job training. The method is suitable only for technical jobs.

Job Rotation

This training method involves the movement of trainees from one job to another to gain knowledge and experience from different job assignments. This method helps the trainee understand the problems of another employee.

Coaching

Under this method, the trainee is placed under a particular supervisor who functions as a coach in training and provides feedback to the trainee. Sometimes the trainee may get an opportunity to express his ideas.

 

Job Instructions

Also known as step-by-step training in which the trainer explains the way of doing the jobs to the trainee and in case of mistakes, corrects the trainee.

Committee Assignments

A group of trainees is asked to solve a given organizational problem by discussing the problem. This helps to improve teamwork.

Internship Training

Under this method, instructions through theoretical and practical aspects are provided to the trainee. Usually, students from engineering and commerce colleges receive this type of training for a small stipend.

Off-the-job Training

The off-the-job training is the training method wherein the workers/employees learn their job roles away from the actual workplace. Where the workers are required to learn the skills and get well-equipped with the tools and techniques that are to be used at the actual workplace.

Classroom Lectures

This is also knowns as special lectures wherein the employees are given lectures by experts or specialists from professional institutes about the job requirements and the necessary skills required for implementing the job. The main purpose of this training is to make the employees well informed about their job roles and discuss their queries arising out of the lectures.

Simulation

Under this method, the trainee is required to learn the operations of machines and equipment, that look alike to those they would be using in the actual work environment.

 

 

Case Studies

Under this method, the trainees are given a situation or a problem in the form of a case study and are required to solve it as per their learning from the training program.

Role Playing

This type of training is essential in the case of customer service. Under this, the trainees assume roles and enact as per the given situations.  It is also called socio-drama or psycho-drama, wherein the employees act as if, they are facing the situation and have to solve it spontaneously without any guidance.

Field Trip

A field trip method or field work or training in the field is a journey undertaken by a group of employees/trainees to a place away from their actual work site. They are taken to actual workplaces/sites/facilities to gain exposure and knowledge.  They have explained the process of work by the supervisor/manager of the facility visited by the participants.

Group Discussion

Under this method, participants are divided into various groups. They were provided a particular issue for discussion. Each group has to prepare a solution after a deep discussion with their group members. The group leader has to present the solution to the audience which will be discussed or deliberated by other groups. Moderator will give the final solution after listening to divergent viewpoints.

Seminar/Conference Method

This method enables the trainees to listen to the lecture/ talk delivered on specific topics and provides opportunities for participants to interact with the speaker and get their doubts clarified or select participants may be allowed to present papers with the audio-visual aids as delegates.

For example, Doctor conferences, Salesman conferences, etc. This is the oldest method, but still a favorite training method.

E-learning Method

The E-learning method is the use of the technological process to access a traditional classroom or office. E-learning is also often referred to as online learning or web-based training. This type of web-based training is anywhere and anytime information can pass over the internet and it saves lakhs and lakhs of rupees for an organization.

Demonstration Training Method

This method is a visual display of how something works or how to do something. Demonstration involves showing by reason or proof explaining or making clear by the use of examples or experiments.

As an example, the trainer shows the trainees how to perform or how to do the task of the job.

Meaning of Performance Appraisal

The performance appraisal of employees has been used for the first time during the First World War when Walter Dill Scott, the US Army adopted the ‘Man-to-Man’ rating system for evaluating the performance of military personnel. During 1920-30, merit rating programs were used for employees of industrial units.

In every organization, there is a need to understand the abilities of the employees to perform and grow.

Performance appraisal acts as a tool to check development opportunities for employees. 

Performance appraisal is the combination of two words

Performance means the act of performing or a particular action

Appraisal refers to the act of estimating or evaluating the nature or value of something.

Thus, “Performance appraisal” is the method of evaluating an employee’s skills, achievement, and growth.

Performance appraisal refers to all those procedures that are used to evaluate the personality, performance, and potential of group members.

Performance appraisal is a systematic evaluation of the employee's (rate) performance at work. It is also known as an annual review or performance review or employee appraisal.

The performance appraisal is often used to justify the decisions related to promotions, pay hikes, bonuses, and termination of employees. They can be conducted by an appraisal committee or rater at any given time but tend to be annual, semiannual, or quarterly.

Definition of Performance Appraisal

According to Dale S. Beach, “Performance appraisal is the systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development.

According to New Strom, “It is the process of evaluating the performance of employees, sharing that information with them, and searching for ways to improve their performance.

Objectives of Performance Appraisal

Maintain the Record

The performance appraisal system maintains the records which are used to determine the compensation and wage structure of the employee.

To determine Strengths and Weaknesses

It is very useful to determine the strengths and weaknesses of the employees and helps to place the right person at the right job.

Growth and Development

It provides access to the potential in the person for future growth and development.

Provides Feedback

This process provides feedback to workers regarding their performance. Performance appraisal suggests ways for enhancing their efficiency.

Identify Training Needs

It guides the HR department about the training needs of the employees.

Influence the Working Habits

It influences the working habits of the employees and makes them work-oriented.

Promotion Decisions

Performance appraisal is a tool, which helps managers to take promotion or demotion decisions. This method assesses the performance level of employees. Efficient workers can be promoted to a higher level whereas inefficient ones can be demoted.

Motivates Employees

The motivation of employees towards their role is a must for attaining desired goals. This method by checking the efficiency of workers and awarding them accordingly motivates them to better performance.

Compensation decisions

It plays an effective role in deciding various compensation decisions for employees.  Managers take decisions like a hike in employee pay or incentives by judging their performance level.

Process of Performance Appraisal

There are six steps in process of performance appraisal. They are:

Setting Performance Standards

The appraisal process begins with setting up standards for appraising the performance of employees. They must be measurable after a certain period. There should be some base on which one must say that the performance is good, average, or bad.

Communicate Performance Expectations to Employees

After setting the performance standards of the job, the next step is to communicate and explain these standards to the employees so that the employees should know what is expected from them.

Measure Actual Performance

Now the next activity is to measure the actual performance of the appraisee on the job after a certain period. Generally, an appraiser to measure actual performance, personal observation, statistical reports, oral reports, and written reports use four common sources.

Compare Actual Performance with Standards

The fourth activity is the comparison of actual performance with standards.  Sometimes actual performance may be better than standards and sometimes it may go off track.  Any deviations between actual performance and standard performance may be noted carefully for the next activity.

Discuss the Appraisal with the Employee

The result of the appraisal is discussed periodically with the employees were good points, weak points, and difficulties are indicated and discussed so that performance is improved.

If Necessary, Initiate Corrective Action

This is the final or last activity of the performance appraisal process.  In this stage, two types of corrective action may be recommended by the appraiser. One is positive means a salary increase or promotion if the actual performance of the appraisee is up to the mark and the second is negative means coaching and counseling may be done if the performance is poor. If necessary appraisee may be deputed for formal training courses

Methods of Performance Appraisal

There are two major methods of performance appraisal

1. Traditional Methods       2. Modern Methods

Traditional Methods

Confidential Report

This method is mostly used in government organizations to make decisions regarding the promotion and transfer of employees. A confidential report is a report prepared by the employee’s immediate supervisor. It covers strengths and weaknesses, main achievements and failures, and the personality and behavior of the employees. The report is supposed not to be revealed to anyone. It is sent in a sealed cover to the concerned officials who appraise the employee on the basis of this report and take decisions accordingly.

Essay Method

Under this method, the evaluator writes a short essay on employee performance on the basis of the overall impression.

Ranking Method

It is a popular traditional method of performance appraisal. In this method, a rating scale is created to evaluate the performance of the employee against certain parameters such as his attitude, attendance, punctuality, and interpersonal skills.  Employees are ranked from the best to the poorest on the basis of overall performance.

Paired Comparison Method

Herein, each employee is compared with all the others in pairs. The number of times an employee is judged better than the other determines his rank.

Forced-choice Method

In this technique, the manager is forced to distribute employees on the basis of their performance on all points of the bell-shaped scale. Some fall into the outstanding zone, some into average, and some into the bottom region of the curved scale.

 

Graphic Rating Scale

It is a numerical scale indicating the different degrees of a particular trait. The rater is given a printed form for the employee to be rated. The form contains several characteristics relating to the personality and performance of employees.

Check List Method

A checklist method is a list of statements that describe the characteristics and performance of employees on the job. Each statement has two options, Yes or No or True or False. The rater can choose one out of two options, which he thinks correctly, and describes the behavior of the employee.

Field Review Method

In the field review method, the HR specialist can ask senior to answer questions related to employees’ employment and appraises the employee on the basis of feedback received from the superiors. 

Modern Methods of Performance Appraisal

Modern appraisal methods are conventionally classified into seven types. These seven types of methods are as:

Management by Objectives

This is one of the modern appraisal methods. Peter Drucker first introduced that in his book 1954, The Practice of Management. According to him, the performance of an employee can be assessed on the basis of the targets achieved by him as set by the management of an organization. Firstly, the management sets the goals and communicates the same to the employees, and then the performance of an employee is compared against these set goals and is evaluated on this basis.

Psychologist Appraisal

Under this method, the psychologist conducts the in-depth interview, psychologist tests, discussions with the supervisors, and reviews of other evaluations. This assessment is done to determine the intellectual, emotional, motivational, and other related characteristics of an employee that is necessary to predict his potential for future performance.

360 Degree Feedback

It is the feedback method wherein the details of an employee’s performance are gathered from other stakeholders such as superiors, peers, team members, and self. In this method, the peers and team members are asked about assesses performance through which the employee knows about what others feel about him and can overcome his disbelief if any.

Behaviorally Anchored Rating Scale

This method breaks down the job into different behaviors on the behaviorally anchored rating scale. Then the behaviors of the employee are compared with the behaviors rated on the scale.

For example, in a company, the positive behaviors of a customer care executive job are to receive the call within five seconds, and greet the customer in a polite way. So, the employees who are showing these behaviors will be anchored to excellent numerical ratings on the scale, and who is not will be anchored to poor numerical ratings on the scale.

Assessment Center Method

An assessment center is a place where several activities are organized for the employees by the management to evaluate job-related skills. These activities usually include social events, assignments, business games, and role-play. This technique mainly gives emphasis on evaluating interpersonal skills, intelligence, and planning and organizing skills. The potential of an employee for a new job as well as his training and development needs are evaluated by this method.

 

 

 

Cost Accounting Method

Under this method, the employee’s performance is translated into an organizational balance sheet of profit and loss. The cost accounting method is among the most popular methods of performance appraisal in HRM.

720 Degree Method

Under this method, the assessment is done by groups outside the organization. The groups who assess the employee’s performance are customers, investors, suppliers, and other financial institutions. It is one of the most crucial modern methods of performance appraisal because this is the only group that determines the success of the organization as a whole.

Differences between Training and Development

Process

Training is a process of increasing knowledge and skills.

Development is a process of learning and growth.

Duration

Training is a short-term process i.e. 3 to 6 months.

Development is a continuous process, and so it is for the long term.

Focus

Training focuses on developing skills and knowledge for the current job.

The development focuses on building knowledge, understanding, and competencies for overcoming future challenges.

Methods 

It is imparted through on-the-job methods like coaching, job rotation, vestibule training, etc.

It is based more on off-the-job methods such as lectures, conferences, sensitivity training, etc.

 

Scope

Training has a limited scope; it is specific job oriented.

Development is career oriented and hence its scope is comparatively wider than training.

Who leads?

In training, the trainees get a trainer who instructs them at the time of training.

In development, the manager self-directs himself for future assignments.

Number of People

Many individuals collectively attend the training program.

Development is a self-assessment procedure, and hence, one person himself is responsible for one’s development.

Changed

The skills level is changed through training.

The behavior level is changed through development.

Aim

Training is to enable the employee to do the job better.

Development is to enable the overall growth of the employee.

Suitability

It is more suitable for technical staff.

It is more suitable for managerial staff.

Instruction

Training refers only to instruction in technical and mechanical operations.

Development refers to philosophical, theoretical, and educational concepts.

Result

It improves employees’ on-the-job efficiency and productivity.

It results in the overall growth and development of employees making them suitable for higher responsibilities.