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Total in detail about Training & Development
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SK Giridhar
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Thumbs up Total in detail about Training & Development - January 24th, 2009

Training And Development

Human Resource Management (HRM), a relatively new term, that emerged during the 1930s. Many people used to refer it before by its traditional titles, such as Personnel Administration or Personnel Management. But now, the trend is changing. It is now termed as Human Resource Management (HRM). Human Resource Management is a management function that helps an organization select, recruit, train and develops


Human Resource Management is defined as the people who staff and manage organization. It comprises of the functions and principles that are applied to retaining, training, developing, and compensating the employees in organization. It is also applicable to non-business organizations, such as education, healthcare, etc Human Resource Management is defined as the set of activities, programs, and functions that are designed to maximize both organizational as well as employee effectiveness…………… ……………………

Scope of HRM without a doubt is vast. All the activities of employee, from the time of his entry into an organization until he leaves, come under the horizon of HRM.
The divisions included in HRM are Recruitment, Payroll, Performance Management, Training and Development, Retention, Industrial Relation, etc. Out of all these divisions, one such important division is training and development.

TRAINING AND DEVELOPMENT is a subsystem of an organization. It ensures that randomness is reduced and learning or behavioral change takes place in structured format.


Traditional Approach – Most of the organizations before never used to believe in training. They were holding the traditional view that managers are born and not made. There were also some views that training is a very costly affair and not worth. Organizations used to believe more in executive pinching. But now the scenario seems to be changing.

The modern approach of training and development is that Indian Organizations have realized the importance of corporate training. Training is now considered as more of retention tool than a cost. The training system in Indian Industry has been changed to create a smarter workforce and yield the best results


The principal objective of training and development division is to make sure the availability of a skilled and willing workforce to an organization. In addition to that, there are four other objectives: Individual, Organizational, Functional, and Societal.

Individual Objectives – help employees in achieving their personal goals, which in turn, enhances the individual contribution to an organization.

Organizational Objectives – assist the organization with its primary objective by bringing individual effectiveness.

Functional Objectives – maintain the department’s contribution at a level suitable to the organization’s needs.

Societal Objectives – ensure that an organization is ethically and socially responsible to the needs and challenges of the society

Introduction Of Training


It is a learning process that involves the acquisition of knowledge, sharpening of skills, concepts, rules, or changing of attitudes and behaviours to enhance the performance of employees.

Training is activity leading to skilled behavior.

• It’s not what you want in life, but it’s knowing how to reach it

• It’s not where you want to go, but it’s knowing how to get there

• It’s not how high you want to rise, but it’s knowing how to take off

It may not be quite the outcome you were aiming for, but it will be an outcome

• It’s not what you dream of doing, but it’s having the knowledge to do it

• It's not a set of goals, but it’s more like a vision

• It’s not the goal you set, but it’s what you need to achieve it

Training is about knowing where you stand (no matter how good or bad the current situation looks) at present, and where you will be after some point of time.

Training is about the acquisition of knowledge, skills, and abilities (KSA) through professional development.


Importance Of Training and Development
Optimum Utilization of Human Resources – 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 Resources – Training and Development helps to provide an opportunity and broad structure for the development of human resources’ technical and behavioral skills in an organization. It also helps the employees in attaining personal growth.

• Development of skills of employees – Training and Development helps in increasing the job knowledge and skills of employees at each level. It helps to expand the horizons of human intellect and an overall personality of the employees.

• Productivity – Training and Development helps in increasing the productivity of 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 spirit, 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 organizational 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 feelings from leaders, subordinates, and peers.

• Quality – Training and Development helps in improving upon the quality of work and work-life.

• Healthy work-environment – Training and Development helps in creating the healthy working environment. It helps to build good employee, relationship so that individual goals aligns with organizational goal.

• Health and Safety – Training and Development helps in improving the health and safety of the organization thus preventing obsolescence.

• Morale – Training and Development helps in improving the morale of the work force.

• Image – Training and Development helps in creating a better corporate image.

• Profitability – Training and Development leads to improved profitability and more positive attitudes towards profit orientation.

• Training and Development aids in organizational development i.e. Organization gets more effective decision making and problem solving. It helps in understanding and carrying out organisational policies

• Training and Development helps in developing leadership skills, motivation, loyalty, better attitudes, and other aspects that successful workers and managers usually display

human intellect and an overall personality of the employees.

• Productivity – Training and Development helps in increasing the productivity of 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 spirit, 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 organizational 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 feelings from leaders, subordinates, and peers.

• Quality – Training and Development helps in improving upon the quality of work and work-life.

• Healthy work-environment – Training and Development helps in creating the healthy working environment. It helps to build good employee, relationship so that individual goals aligns with organizational goal.

• Health and Safety – Training and Development helps in improving the health and safety of the organization thus preventing obsolescence.

• Morale – Training and Development helps in improving the morale of the work force.

• Image – Training and Development helps in creating a better corporate image.

• Profitability – Training and Development leads to improved profitability and more positive attitudes towards profit orientation.

• Training and Development aids in organizational development i.e. Organization gets more effective decision making and problem solving. It helps in understanding and carrying out organisational policies

• Training and Development helps in developing leadership skills, motivation, loyalty, better attitudes, and other aspects that successful workers and managers usually display

Importance Of Training Objectives

Training objective is one of the most important parts of training program. While some people think of training objective as a waste of valuable time. The counterargument here is that resources are always limited and the training objectives actually lead the design of training. It provides the clear guidelines and develops the training program in less time because objectives focus specifically on needs. It helps in adhering to a plan. Training objectives tell the trainee that what is expected out of him at the end of the training program. Training objectives are of great significance from a number of stakeholder perspectives,
1. Trainer
2. Trainee
3. Designer
4. Evaluator

Trainer – The training objective is also beneficial to trainer because it helps the trainer to measure the progress of trainees and make the required adjustments. Also, trainer comes in a position to establish a relationship between objectives and particular segments of training.

Trainee – The training objective is beneficial to the trainee because it helps in reducing the anxiety of the trainee up to some extent. Not knowing anything or going to a place which is unknown creates anxiety that can negatively affect learning. Therefore, it is important to keep the participants aware of the happenings, rather than keeping it surprise.
Secondly, it helps in increase in concentration, which is the crucial factor to make the training successful. The objectives create an image of the training program in trainee’s mind that actually helps in gaining attention. Thirdly, if the goal is set to be challenging and motivating, then the likelihood of achieving those goals is much higher than the situation in which no goal is set. Therefore, training objectives helps in increasing the probability that the participants will be successful in training.

Designer – The training objective is beneficial to the training designer because if the designer is aware what is to be achieved in the end then he’ll buy the training package according to that only. The training designer would then look for the training methods, training equipments, and training content accordingly to achieve those objectives. Furthermore, planning always helps in dealing effectively in an unexpected situation. Consider an example; the objective of one training program is to deal effectively with customers to increase the sales. Since the objective is known, the designer will design a training program that will include ways to improve the interpersonal skills, such as verbal and non verbal language, dealing in unexpected situation i.e. when there is a defect in a product or when a customer is angry.
Therefore, without any guidance, the training may not be designed appropriately.

Evaluator – It becomes easy for the training evaluator to measure the progress of the trainees because the objectives define the expected performance of trainees. Training objective is an important to tool to judge the performance of participants

Training As Consultancy
Training consultancy provides industry professional to work with an organization in achieving its training and development objectives.

Estimation of Training Outsourcing

It has been estimated that 58% of the emerging market in training outsourcing is in customer education, while only 42 percent of the market is in employee education.

The training consultancies offer various benefits such as

Training Courses that Consultancies Offer

The various courses that consultancies offer are:
• Business Training Courses
o Management Development
 Conflict Management
 Managing Diversity
 Project Management
 Stress Management
 Time Management
 Senior Management Workshops
o Sales
 Negotiation Skills
 Sales Technique
o Customer Care
 Customer Care Training
 Managing Customers
o Human Resource
 HR Administration
 Induction Training
 Recruitment & Selection
 Successful Appraising
o Personal Development Courses
o Workshops on:
 Assertive Skills
 Building Confidence
 Coping with Change
 Interview Techniques
 Maximize Potential
o One to One Coaching
 Focused entirely on personal objectives
 Move forward at individual pace
 Material used in tailor made to specific development Need
 A strict code of confidentiality

Importance of Training Consultancies

• It helps in enhancing company’s image
• It helps in strengthening the team spirit
• It helps in applying knowledge, developing core competencies, and reducing work load
• It helps in improving the work relations
• It helps in developing focused and inspired staff
• It leads to greater chances of success

Consultants can provide help on following areas:

• Management Development
• Team Building Leadership
• Health & Safety Training
• Interpersonal Skills
• Sales Training

EXAMPLE: T.V. Rao Learning Systems is a popular training consultancy in India
Training and Human Resource Management

The HR functioning is changing with time and with this change, the relationship between the training function and other management activity is also changing. The training and development activities are now equally important with that of other HR functions. Gone are the days, when training was considered to be futile, waste of time, resources, and money. Now-a-days, training is an investment because the departments such as, marketing & sales, HR, production, finance, etc depends on training for its survival. If training is not considered as a priority or not seen as a vital part in the organization, then it is difficult to accept that such a company has effectively carried out HRM. Training actually provides the opportunity to raise the profile development activities in the organization

To increase the commitment level of employees and growth in quality movement (concepts of HRM), senior management team is now increasing the role of training. Such concepts of HRM require careful planning as well as greater emphasis on employee development and long term education. Training is now the important tool of Human Resource Management to control the attrition rate because it helps in motivating employees, achieving their professional and personal goals, increasing the level of job satisfaction, etc. As a result training is given on a variety of skill development and covers a multitude of courses.

Role of HRD Professionals in Training

This is the era of cut-throat competition and with this changing scenario of business; the role of HR professionals in training has been widened. HR role now is:

1. Active involvement in employee education
2. Rewards for improvement in performance
3. Rewards to be associated with self esteem and self worth
4. Providing pre-employment market oriented skill development education and post employment support for advanced education and training
5. Flexible access i.e. anytime, anywhere training

Models of Training
Training is a sub-system of the organization because the departments such as, marketing & sales, HR, production, finance, etc depends on training for its survival. Training is a transforming process that requires some input and in turn it produces output in the form of knowledge, skills, and attitudes (KSAs).


A System is a combination of things or parts that must work together to perform a particular function. An organization is a system and training is a sub system of the organization. The System Approach views training as a sub system of an organization. System Approach can be used to examine broad issues like objectives, functions, and aim. It establishes a logical relationship between the sequential stages in the process of training need analysis (TNA), formulating, delivering, and evaluating. There are 4 necessary inputs i.e. technology, man, material, time required in every system to produce products or services. And every system must have some output from these inputs in order to survive. The output can be tangible or intangible depending upon the organization’s requirement. A system approach to training is planned creation of training program. This approach uses step-by-step procedures to solve the problems. Under systematic approach, training is undertaken on planned basis. Out of this planned effort, one such basic model of five steps is system model that is explained below. Organization are working in open environment i.e. there are some internal and external forces, that poses threats and opportunities, therefore, trainers need to be aware of these forces which may impact on the content, form, and conduct of the training efforts. The internal forces are the various demands of the organization for a better learning environment; need to be up to date with the latest technologies.

The three model of training are:

1. System Model

2. Instructional System Development Model

3. Transitional model

System Model Training
The system model consists of five phases and should be repeated on a regular basis to make further improvements. The training should achieve the purpose of helping employee to perform their work to required standards. The steps involved in System Model of training are as follows:

1. Analyze and identify the training needs i.e. to analyze the department, job, employees requirement, who needs training, what do they need to learn, estimating training cost, etc The next step is to develop a performance measure on the basis of which actual performance would be evaluated.

2. Design and provide training to meet identified needs. This step requires developing objectives of training, identifying the learning steps, sequencing and structuring the contents.

. Develop- This phase requires listing the activities in the training program that will assist the participants to learn, selecting delivery method, examining the training material, validating information to be imparted to make sure it accomplishes all the goals & objectives.

4. Implementing is the hardest part of the system because one wrong step can lead to the failure of whole training program.

5. Evaluating each phase so as to make sure it has achieved its aim in terms of subsequent work performance. Making necessary amendments to any of the previous stage in order to remedy or improve failure practices.

Transitional Model
Transitional model focuses on the organization as a whole. The outer loop describes the vision, mission and values of the organization on the basis of which training model i.e. inner loop is executed.

Vision – focuses on the milestones that the organization would like to achieve after the defined point of time. A vision statement tells that where the organization sees itself few years down the line. A vision may include setting a role mode, or bringing some internal transformation, or may be promising to meet some other deadlines.

Mission – explain the reason of organizational existence. It identifies the position in the community. The reason of developing a mission statement is to motivate, inspire, and inform the employees regarding the organization.The mission statement tells about the identity that how the organization would like to be viewed by the customers, employees, and all other stakeholders.

Values – is the translation of vision and mission into communicable ideals. It reflects the deeply held values of the organization and is independent of current industry environment. For example, values may include social responsibility, excellent customer service, etc.

The mission, vision, and values precede the objective in the inner loop. This model considers the organization as a whole. The objective is formulated keeping these three things in mind and then the training model is further implemented

Instructional System Development Model(ISD)Model

Instructional System Development model was made to answer the training problems. This model is widely used now-a-days in the organization because it is concerned with the training need on the job performance. Training objectives are defined on the basis of job responsibilities and job description and on the basis of the defined objectives individual progress is measured. This model also helps in determining and developing the favorable strategies, sequencing the content, and delivering media for the types of training objectives to be achieved.

The Instructional System Development model comprises of five stages:

1. ANALYSIS – This phase consist of training need assessment, job analysis, and target audience analysis

2. PLANNING – This phase consist of setting goal of the learning outcome, instructional objectives that measures behavior of a participant after the training, types of training material, media selection, methods of evaluating the trainee, trainer and the training program, strategies to impart knowledge i.e. selection of content, sequencing of content, etc

3. DEVELOPMENT – This phase translates design decisions into training material. It consists of developing course material for the trainer including handouts, workbooks, visual aids, demonstration props, etc, course material for the trainee including handouts of summary.

4. EXECUTION – This phase focuses on logistical arrangements, such as arranging speakers, equipments, benches, podium, food facilities, cooling, lighting, parking, and other training accessories.

5. EVALUATION – The purpose of this phase is to make sure that the training program has achieved its aim in terms of subsequent work performance. This phase consists of identifying strengths and weaknesses and making necessary amendments to any of the previous stage in order to remedy or improve failure practices.

The ISD model is a continuous process that lasts throughout the training program. It also highlights that feedback is an important phase throughout the entire training program. In this model, the output of one phase is an input to the next phase

Methods of Training
There are various methods of training, which can be divided in to cognitive and behavioral methods. Trainers need to understand the pros and cons of each method, also its impact on trainees keeping their background and skills in mind before giving training.

Cognitive methods are more of giving theoretical training to the trainees. The various methods under Cognitive approach provide the rules for how to do something, written or verbal information, demonstrate relationships among concepts, etc. These methods are associated with changes in knowledge and attitude by stimulating learning

The various methods that come under Cognitive approach are:

Behavioral methods are more of giving practical training to the trainees. The various methods under Behavioral approach allow the trainee to behavior in a real fashion. These methods are best used for skill development.

The various methods that come under Behavioral approach are:

Both the methods can be used effectively to change attitudes, but through different means.



The more future oriented method and more concerned with education of the employees. To become a better performer by education implies that management development activities attempt to instill sound reasoning processes.

Management development method is further divided into two parts:


The development of a manager’s abilities can take place on the job. The four techniques for on-the job development are:


There are many management development techniques that an employee can take in off the job. The few popular methods are:


The design of the training program can be undertaken only when a clear training objective has been produced. The training objective clears what goal has to be achieved by the end of training program i.e. what the trainees are expected to be able to do at the end of their training. Training objectives assist trainers to design the training program.

The trainer – Before starting a training program, a trainer analyzes his technical, interpersonal, judgmental skills in order to deliver quality content to trainers.

The trainees – A good training design requires close scrutiny of the trainees and their profiles. Age, experience, needs and expectations of the trainees are some of the important factors that affect training design

Training climate – A good training climate comprises of ambience, tone, feelings, positive perception for training program, etc. Therefore, when the climate is favorable nothing goes wrong but when the climate is unfavorable, almost everything goes wrong.

Trainees’ learning style – the learning style, age, experience, educational background of trainees must be kept in mind in order to get the right pitch to the design of the program.

Training strategies – Once the training objective has been identified, the trainer translates it into specific training areas and modules. The trainer prepares the priority list of about what must be included, what could be included.

Training topics – After formulating a strategy, trainer decides upon the content to be delivered. Trainers break the content into headings, topics, ad modules. These topics and modules are then classified into information, knowledge, skills, and attitudes.

Sequence the contents – Contents are then sequenced in a following manner:
• From simple to complex
• Topics are arranged in terms of their relative importance
• From known to unknown
• From specific to general
• Dependent relationship

Training tactics – Once the objectives and the strategy of the training program becomes clear, trainer comes in the position to select most appropriate tactics or methods or techniques. The method selection depends on the following factors:
• Trainees’ background
• Time allocated
• Style preference of trainer
• Level of competence of trainer
• Availability of facilities and resources, etc

Support facilities – It can be segregated into printed and audio visual. The various requirements in a training program are white boards, flip charts, markers, etc.

Constraints – The various constraints that lay in the trainers mind are:
• Time
• Accommodation, facilities and their availability
• Furnishings and equipments
• Budget
• Design of the training, etc

Training Implementation
To put training program into effect according to definite plan or procedure is called training implementation. Training implementation is the hardest part of the system because one wrong step can lead to the failure of whole training program. Even the best training program will fail due to one wrong action.

Training implementation can be segregated into:
• Practical administrative arrangements
• Carrying out of the training

Implementing Training

Once the staff, course, content, equipments, topics are ready, the training is implemented. Completing training design does not mean that the work is done because implementation phase requires continual adjusting, redesigning, and refining. Preparation is the most important factor to taste the success. Therefore, following are the factors that are kept in mind while implementing training program:

The trainer – The trainer need to be prepared mentally before the delivery of content. Trainer prepares materials and activities well in advance. The trainer also set grounds before meeting with participants by making sure that he is comfortable with course content and is flexible in his approach.

Physical set-up – Good physical set up is pre-requisite for effective and successful training program because it makes the first impression on participants. Classrooms should not be very small or big but as nearly square as possible. This will bring people together both physically and psychologically. Also, right amount of space should be allocated to every participant.

Establishing rapport with participants – There are various ways by which a trainer can establish good rapport with trainees by:

• Greeting participants – simple way to ease those initial tense moments
• Encouraging informal conversation
• Remembering their first name
• Pairing up the learners and have them familiarized with one another
• Listening carefully to trainees’ comments and opinions
• Telling the learners by what name the trainer wants to be addressed
• Getting to class before the arrival of learners
• Starting the class promptly at the scheduled time
• Using familiar examples
• Varying his instructional techniques
• Using the alternate approach if one seems to bog down

Reviewing the agenda – At the beginning of the training program it is very important to review the program objective. The trainer must tell the participants the goal of the program, what is expected out of trainers to do at the end of the program, and how the program will run. The following information needs to be included:

• Kinds of training activities
• Schedule
• Setting group norms
• Housekeeping arrangements
• Flow of the program
• Handling problematic situations

Training Evaluation

The process of examining a training program is called training evaluation. Training evaluation checks whether training has had the desired effect. Training evaluation ensures that whether candidates are able to implement their learning in their respective workplaces, or to the regular work routines.

Purposes of Training Evaluation

The five main purposes of training evaluation are:

Feedback: It helps in giving feedback to the candidates by defining the objectives and linking it to learning outcomes.

Research: It helps in ascertaining the relationship between acquired knowledge, transfer of knowledge at the work place, and training.

Control: It helps in controlling the training program because if the training is not effective, then it can be dealt with accordingly.

Power games: At times, the top management (higher authoritative employee) uses the evaluative data to manipulate it for their own benefits.

Intervention: It helps in determining that whether the actual outcomes are aligned with the expected outcomes.

Process of Training Evaluation

Before Training: The learner’s skills and knowledge are assessed before the training program. During the start of training, candidates generally perceive it as a waste of resources because at most of the times candidates are unaware of the objectives and learning outcomes of the program. Once aware, they are asked to give their opinions on the methods used and whether those methods confirm to the candidates preferences and learning style.

During Training: It is the phase at which instruction is started. This phase usually consist of short tests at regular intervals

After Training: It is the phase when learner’s skills and knowledge are assessed again to measure the effectiveness of the training. This phase is designed to determine whether training has had the desired effect at individual department and organizational levels. There are various evaluation techniques for this phase.

Techniques of Evaluation

The various methods of training evaluation are:
• Observation
• Questionnaire
• Interview
• Self diaries
• Self recording of specific incidents

Culture - Factor in Global Training Program
Communicating the information to different people from different cultures and different nationalities can give rise to many problems. Many simple things that seem simple and straightforward to communicate become difficult when it comes to communicating in different environment. Giving training in one’s own culture is quite different from giving training in different culture. Being a good trainer is not the only requirement but understanding socio-economic and cultural backgrounds has now become an important part.

Values, norms, attitude are the building blocks of culture. Values means what a group of people believes to be good, bad, right, or wrong. Norms means the social rules and guidelines that prescribe appropriate behavior. Attitude disposes a person to act in a certain way toward something in a certain situation. A trainer giving training in different culture has to keep these things in mind before delivering content.

Instances: A good case that concerns attitude towards time in different cities: People are very punctual in United States. People from US tend to come little early for any meeting, or when invited for dinner, party to someone’s home because in their culture it is considered to be polite to arrive on time. In Great Britain, people tend to come late for any appointment. If called at 5 P.M., that means come at 5.30 or 6 P.M. Even for Argentineans, coming on exact time is far too early. For instance, In US, if the trainer gets late for a scheduled training session it is treated as a breach of etiquette. And it may result in loss of trainer’s respect and failure in transfer of training

Age, Gender, and Professional Status – Different cultures give different regard to age, gender, and professional qualification. For example, in Japan, people give high regard to older people. Older people are regarded as having greater knowledge, skills, wisdom, and abilities. Respect in the sense that people are more willing to listen to and seriously consider the information. In such a culture, a young trainer might have to work harder to gain attention and face problems in executing the program and transfer of training.

Similarly, some countries are also biased about the gender. Like in Gulf countries, women’s role is limited to households only. In such a culture, it is not possible for women trainers to undergo training programs because people will not be as receptive as in other culture.

Same is with high professional status- the higher the qualification of the trainer, the more will be the importance attached to the information.

Language Problem in International Training and Development Programs
Language comprises of both spoken and unspoken means of communication. Bestest of the best training program will fail if trainer is not well versed in communicating trainees’ language. Language is one of the most important ingredients of culture.

Spoken Language– Trainees’ receiving training prefer to speak in their own language and trainer being able to speak the local language can help establishing rapport among trainees, which may be very important for the transfer of training. Language is one of the major barriers when it comes to giving training in cross-cultural environment. Chinese is the mother tongue of the largest number of people (shown below), followed buy English and Hindi

Percentage of the people speaking their first language

Unspoken Language– means non-verbal communication, a very important part of communication. It is a communication that uses body movements and gestures such as, raising eyebrows, smiling, hand movements, facial expressions, etc. A failure to understand unspoken language can lead to a failure of communication because body language is not the same in every culture.

For instance, raising eyebrows is a sign of recognition in most cultures, but in some cultures, it’s not. Similarly, making a circle with the thumb and forefinger is a friendly gesture in the US, but it is obscene invitation in Turkey and Greece. Also, thumbs-up gesture is used to indicate that “its fine” in the US and Europe, but it is vulgar gesture in Greece.

Another case of unspoken language is the amount of distance between the persons talking to each other. In Latin America, the distance adopted by parties in a business discussion is 3 to 5 feet while in the US, it is 5 to 8 feet. In the training context, if the trainer gives training in Latin America and maintains a much larger distance than desired in their culture, then in turn, it may result in a regrettable lack of rapport between the trainer and the trainee.

Therefore, using the right body language is very important in cross-cultural training.

Global Training Class – Social Structure
Social Structure refers to basic social organization. It consists of many aspects such as, the degree to which the social organization laid emphasis on the individual, as opposed to the group.

Some countries emphasizes on individual achievement. Western countries emphasize on individual performance, this in turn, leads to high level of creativity, high degree of managerial mobility, entrepreneurial activity, etc. On the other hand, encouraging individualism also make it difficult to work in teams. It may be difficult for them to co-operate which may serve as an obstruction in smooth flow of training.

Group– In most of the countries, group is the primary unit of organizations. Like in Japan, the social status of an individual is determined as much as in by standing of the group. This may lead to better cooperation; on the other hand it suppresses entrepreneurial activity, individual creativity, etc. This in turn, may result, in loss of recognition of individual achievement at work after training.

Therefore, trainer has to keep in mind the factor of the individual and the group while giving training because encouraging a particular individual in Japan might be considered as impolite or vice-versa.

Assumptions – We all make assumptions every day. It may be positive or negative, good or bad. Assumptions influence our attitudes, perceptions. Most people see what they want to see and believe what they want to believe. It some times leads to coinciding and some time clashes. This tendency to make assumptions and forming attitudes regarding certain things can be a big problem in a cross-cultural training. Differences in assumptions can some times be very problematic. As an example, trainer may believe that if the trainees do not question, they understand the content. On the other hand, trainees may believe that if they will ask question, the trainer might think they are dull.

Presumptions can some times result in disrespect, distrust or resistance to change behavior after training. For instance, trainees might misinterpret trainer because of his different accent, appearance, style, or anything. Lack of interest of trainees de motivates trainer to transfer expertise and skills. This can lead to discomfort and misjudging the other’s motives and goals. It is important to analyze the audience on the factors of customs, values, and language in case of cross-cultural training

Stake holders

Role of Organization in Training and Development
An organization has a very close relationship with the trainee and the trainer because it is the first contact for both.

The demand for the training in the organization increases when the organization wants:
• To hire new people – training as a means of training new recruits

• To Expand – When the company wants to increase its headcount

• To increase certain number of staff (in position) by a certain date

• To enhance the performance of employees

• Organization’s name to be a part of training unit

Demand for training also increases when there is change in the nature of job, change in taste of consumer, change in methods of product development, etc. The organization goes through the following steps for the transfer of training to the field.

But the problem arises when the organization outsource the training process. In this situation the organization assumes that the trainer must be aware of the type of training need s of the participants and their organization and their content will meet those needs. This leads to failure of the program, which results in collusion. Therefore, it’s a foremost duty of the organization to make the trainer and their organization aware of their culture, climate, responsibilities of organization, etc.

Trainee – Role Of Trainee in Transfer of Training
The trainee is a major stakeholder in a training program. The whole training program is developed for the trainees only. Each candidate plays an important role in the transfer of training because one participant’s attitude regarding the training influence the other participants and also each participant can assist by advancing the learning process to realize the training objectives.

Participant’s willingness to invest in the program is directly proportional to the benefits of the learning that the trainee could expect. Each participant forms their own perception towards training. Some perceptions remain the same during the program, while some faded depending upon the assessment of a program by the participant

Some personal factors that affect the trainee’s learning are:

• Family Situation
• Personal Problems
• Relation between the training program and personal objective
• Level of self esteem
• Benefits expected from training
• Comfort level with the trainer
• Learning style of trainee
• KSA of trainee
• Previous training experiences
• Desire for professional growth and development

Some environmental factors that affect the trainee’s learning are:

• Relationship with colleagues and subordinates
• Training team
• Trainer team
• Training objective
• Content of training
• Training design i.e. methods, techniques, and strategies
• Environment in the program
• Composition of training group
• Infrastructure i.e. eating facilities, tea/coffee breaks

No matter how good the training program is, in the end it is the participant only who decides whether to change his behavior or not. Trainees do not change their behavior merely because someone tells them to do. They change when they feel there is a need of it. They do it with their own learning style. The trainer and the organization can only try to remove the mental blocks of the trainee, rest depends on trainee itself.

Importance of Trainer, Role of Trainer
The effective transfer of training depends a lot on the trainer because it is the trainer only who can remove the mental block of trainee, motivate the trainee to learn, delete the negative perception of the trainee regarding the training. Besides all that, a lot depends on personality of trainer also.

The major competencies that are required to be present in a trainer are:

• Presentation Skills
• Business Skills i.e. budgeting, time management, negotiation, etc.
• Content Development i.e. material production, graphics, layouts, etc
• Self development i.e. interpersonal skills, good listening skills, flexible, accepting the share of accountability, etc
Trainer’s Skills

The skills that need to be present in a trainer are:

• Training Design
• Evaluating the training program
• Training need analysis
• Worksheet design
• Exercises design

Role of Trainer

Facilitation Of Training
Facilitation of Transfer of Training through Focus on Trainee and Organization Intervention

Focus on Trainee
Focus on Organization Intervention

Focus on Trainee

Training is successful not only with good training design and training objectives but also with the readiness and willingness of the trainees. For the training to be successful, three things are required,
1. Motivation
2. Knowledge, Skills, and Attitudes (KSAs)
3. Expectations towards Training

Expected Performance is directly proportional to the multiplication of motivation, required KSAs, and expectations towards training i.e.

Motivation – If the trainee is not motivated to learn, no learning is likely to occur no matter how good the training methods are, or how talented the trainees are. Therefore, it is important to intervene before training and provide them the information about the learning outcome that they can expect and how the learning outcome will help in achieving the objectives. This increases the motivation to learn and to be successful in training.

Expectations – Positive expectations matter a lot in a training program. If the trainee perceives the training as waste of time, and waste of resources, no learning is likely to occur. No learning is possible with negative perception. On the other hand, if the trainee believes and expects that the training would help him to improve upon his professional skills and would further help him in achieving his personal goals, the probability of training to meet the objective increases.

Knowledge, Skills, and Attitudes (KSAs) – It is important that the selected trainees should have the right KSAs for the training because even if the methods and contents of the training is good but the candidates do not have the right KSAs, the training program will fail. Also the training methods would not be effective if the candidates are lacking the desired skills. Therefore, proper selection technique is must that would ensure that hired have the requisite KSAs to be successful in training.


Facilitation of Training Through Organization Intervention
Failure of training is not always because of lack of KSAs but sometimes it is because of the organizational forces also. These forces also hold back the transfer of training, and learning. Therefore, it is important to keep in check those forces. For the successful transfer of training, it is necessary to have supervisor support, trainer support, peer support, reward system, climate and culture.

PEERS SUPPORT – Peer support can also help in transfer of training, for example, if the trainee is the only one who is receiving training in the department then probably the experienced peers might put pressure on trainee to forget the training and work. This situation also hampers in transfer of training. However, this situation can be avoided by involving the entire department in training, also by encouraging the learning culture in the organization.

SUPERVISOR SUPPORT – can affect their employees’ learning in number of ways, for example, if the trainee is motivated to learn and receives full support from their supervisor, then this support in turn encourages the employee to learn as much as possible. Also, supervisor can also reduce the negative factors of training, such as, the work that piles up during training that makes the employee uncomfortable and employees’ negative perception about the training program.

TRAINER SUPPORT – can also have a positive impact on the transfer of training. Gone are the days, when the trainers’ role used to get over once the training program is done. Trainers’ role is now extended to the work place also. Besides training, trainer’s role is to keep a check on how trainees are performing and help them and discuss with them if they encounter any problem in the workplace.

CLIMATE – Apart from supervisor support, peers support, trainer support, Climate factor also comprises of company polices, attitude of upper management towards employee, towards training. If these factors are positive then the climate will also support the transfer of training. It is the organizations foremost duty to make the employees realize through these factors that adequate amount of time and resources are spent on them for their professional and personal development.

CULTURE – also have the impact over the transfer of training. If the culture of the organization provides enough opportunities to its employees to implement what they have learnt in the workplace and provide them variety of others factors such as, social support, challenging jobs, etc then the likelihood of the transfer of training increases.

REWARD SYSTEMS – If the learning outcome that helps in achieving the objectives is linked to reward system then the probability of the success of training would increase.

Training as outsourcing

Benefits Of Outsourcing

The prospective benefits of training outsourcing are well recognized. Organizations go for outsourcing to save training costs, gain access to practical and technical proficiency, concentrate on core competencies and offer an overall enhanced training to their employees.

Also, outsourcing allows companies to deliver best training to their employees and get the clients the best of their abilities. The key to increase in customer turn over is customer satisfaction. With rapid globalization, increase in competition, technological innovation, increase in access to information, and improve in customer services, the customer loyalty programs have become an integral part of the organizations. Retaining existing customers is now much more important than acquiring new customers.

There is number of benefits of training outsourcing as it directly linked to the benefits like:

Some facts
• Recommendations from the existing customer is 107% greater than the fresh customer
• Loyal customer spend 33% more than fresh customer
• Selling to a prospect requires 6% more than selling to an existing customer
But what if an organization lacks the resources, expertise, and finances, then there is a need to outsource. Outsourcing is a competent tool that ensures and offers convincing Return on Investment (ROI). Outsourcing subtracts the risk in setting up a complicated function that is not a core competency. If outsourced to competitive and right consultancy then the cost savings could be as high as 50%. In addition to that, outsourcing leads to customer retention, customer loyalty, customer satisfaction, and greater efficiencies on the part of employees.

Activities Outsourced in Training

According to a recent survey, respondents reveal that there is a considerable shift in training activities outsourcing. Earlier, training outsourcing was not given much importance and was considered for the less visible back-office activities. On the other hand, when respondents were asked to rate the training activity that is outsourced in a greater percentage, training delivery (i.e. 76%) and content management (i.e. 68%) came out to be the two most commonly selected activities. These two activities emerged as the “potatoes and onions” of the training function, which indicates the changing scenario of training outsourcing i.e. organizations are now becoming confident in training outsourcing activities

Training Delivery – 76%
Strategy Development – 13%
Logistics – 9%
Vendor Management - 4%
Enroll Management – 10%
Program Oversight – 14%
Content Development – 68%
Result/Measurement – 10%
Learning Technology Management – 25%

Challenges Of Outsourcing

Where there are benefits of the training outsourcing, there are many challenges as well no matter how well the program is planned, staffed or budgeted. Below are few challenges that are faced by organizations while training outsourcing:

Many stakeholders – Outsourcing by and large involve several inner and outer stakeholders. Outsourcing programs in diverse geographic regions most of the times are managed autonomously.

Dispersed Locations – Many organizations engage training consultancies in different geographical regions that adds further complications to the delivery and scheduling of training. Most of the times, training has to be localized for different languages and cultures which also requires specific resources. Different regions also put in considerable time, expenditure, and resources to manage logistics related to training.

Budget Inadequacy – According to an Expertus (Expertus provides a variety of training outsourcing services in business consulting, technology, content, and strategic business process outsourcing) 2006 survey, budget is one the major constraints to channel training. Most of the times budget inefficiencies are caused by duplicate payments, payments with incorrect vendors, and decentralized vendor agreement management.

Know-how – According to Expertus survey, 70% of the respondents do not use LMS and those who use, almost half use different LMS for employee training. Those companies who do not use LMS have to make greater effort with registration and setting up, class follow up, evaluations, and even basic reporting. Randomly applied know-how, unplanned customization work, lack of standards, and scarcity of capable resources can twirl the knowledge support of channel training programs into a failure.

Loss of control – According to Expertus survey in 2006, loss of control was also rated as one of the major challenges to training outsourcing. Organizations going for outsourcing, are left with very little or no control over training partner. In addition to that, organizations often are not able to keep up with the consistency and quality of training across the channel.

Coverage – Measuring the results and finding the business focused information about the training consultancy is difficult or impossible to get. These challenges prevent the organizations to obtain the true insight of training consultancies.

Employment Inefficiencies – Obtaining satisfactory organizational resources is a constant problem for the organizations engaged with training consultancies. Employee Turnover and inadequate employee training can make the problem even more difficult.

Rationale Behind Training Outsourcing
In today’s competitive and global economy, developing and distributing expertise is essential to business goals accomplishment. A well planned effective training program can disseminate suitable knowledge and cut down an organization’s time to competence. Organizations that are short of these training resources and expertise often perceive outsourcing as a feasible key.

According to the respondents, cost reduction is one of the major reasons of training outsourcing for organizations. By contracting with training consultancies, a company is able to trim down the rupees it spends on training staff, training equipments or resources, and execution and process costs linked with training technologies

Eliminating Fixed Cost – 27%
Alignment with Company’s Business Strategy – 27%
Increase Competitiveness – 20%
Increase Speed-to-Market – 41%
Cost Reduction – 38%
Not a Company’s Core Competency – 20%
Others – 31%

Type Of Training Outsourcing
Type of Training Outsourcing Pursued According to the Company-Size

Selected training type – In this type, only selected training activities are outsourced.

Comprehensive total training – In this type, the entire training function is outsourced.

A general insight of training outsourcing is that it is a function that is only worth for large enterprises. The strength and dedication needed by outsourcing providers so as to be successful in a bid combined with the time-span of the sales series requires that vendors go after the big contracts with big organizations, leaving smaller companies to manage themselves. However, according to the review participants, a comprehensive training outsourcing strategy was more worthful to smaller companies than mid-sized or large companies

Selected Training Outsourcing Valuable For

Large Companies – 43%
Mid-Size Companies – 34%
Small Companies – 23%

Comprehensive Training Outsourcing Valuable For

Small Companies – 45%
Mid-Size Companies – 23%
Large Companies – 32%

Budding Training Providers in Outsourcing
The ‘Budding Training Providers in Outsourcing’ lists renowned industry leaders that have exhibited creation and quality in offering training outsourcing function in business process categories to clients.

S.No. Company Name
1 Tata Interactive Systems
2 Allen Communication Learning Services
3 Business Training Partnership, Ltd. (BTP)
4 Vangent, Inc.
5 The Training Associates
6 Disney Institute
7 Learning Tree International
8 Synaptis
9 Knowledge Planet
10 Micro Tek
11 MICOR Solutions
12 Genpact
13 Hemsley Fraser
14 Talent2 International

Qualities Looked For In Training Consultancies

When an organization decides to outsource training programs, they confront with a problem of selecting suitable consultancy from a number of outsourcing providers.

According to three-fourth of the respondents, proficiency is the most important characteristic they look for while selecting training outsource provider. After that two-third of the respondents rated, “worth of a training consultancy” as an important factor. The principal reason to pursue training outsourcing is to reduce cost; therefore, “worth i.e. price involved” would be a key criterion. The other important factors that are considered to be important while selecting training outsourcing provider are cultural fit, economic stability, industry knowledge, etc.

Activity Proficiency – 74%
Cultural Fit – 54%
Successful Case Studies – 18%
Economic Stability – 11%
Industry Acquaintance – 52%
Worth – 64%
Others – 8%

Target Audience
With a huge number of organizations recognizing the worth of giving training across the complete value chain, respondents were asked to point out who the receivers were of the outsourced training. Ninety-three percent of review participants revealed that their organizational employees were the audience of outsourced training program. Nineteen percent of the review participants said it was their clients or regular consumers. Sixteen percent mentioned that they provided outsourced training to their associates, partners or allies, and 5 % said they avail training programs for their suppliers.

The majority of review participants revealed that they provide outsourced training to internal employees, there appears to a strong number also using training outsourcing to reach partners, associates, or allies and customers, or clients. According to IDC, this represents a considerable break for both buyers and sellers of outsourcing function.

Internal Employees – 93%
Customers – 19%
Partners – 16%
Suppliers – 5%

Top 20 Training Providers
The Top 20 training providers list includes those leaders in the outsourcing industry that have recognized knowledge, skill, know-how and quality in providing educational services to a range of clients. The List is shown below:
S.No. Company Name
1 Accenture Learning
2 RWD Technologies
3 Geo Learning
4 General Physics - GP
5 NIIT, Ltd.
5 Element K
6 Adayana
7 IBM Learning Solutions
8 Delta College
9 Raytheon Professional Services
10 Affiliated Computer Services, Inc. (ACS)
11 Aptech Worldwide Corporation
12 Convergys
13 Global Knowledge
14 Intrepid Learning Solutions
15 Innovatia
16 Skill Soft
17 Lionbridge
18 Expertus

Top Specialized Training Providers
S.No. Company Name
1 Hewlett-Packard
2 Trifus
3 Siennax
4 Edista Learning
5 Harbinger Knowledge Products
6 Sify eLearning
7 LIQVID eLearning Services
8 InfoPro Learning, Inc.
9 Enhance Systems
10 MountainTop Technologies, Inc.

Training Options
There 4 training options that an organization can consider before providing training to their employees:

Outsourcing: Outsourcing exempts the organizations to concentrate on its core business. Also, with the availability of sufficient amount of know-how, proficiency in the market it does not make business sense for organizations to have a separate training division. One approach is to tie up with some reputed training or educational institutes and send employees for training. This way, company gets to avail the required expertise and high-quality training programs and saves money on content development, recruiting, and maintaining training team. The only issue in outsourcing training is that the quality of training has to be frequently tracked so as to ensure the trainer’s performance and training effectiveness.

Internal Training: A lot of questions has been raised whether to go in for training outsourcing or setting up an internal division for training. Some companies recruit external trainers and call them to the company site make them use their tools to train employees. This alternative is generally for the new joinees who are given the fundamental or job-related training in-house and then send outside for higher training.

Product-related Training: The dealer who delivers the apparatus or installs the system offers the initial training. The user may negotiate with the dealer for a regular upgradation of product-related know-how or expertise in place of a one-time training. The apparatus dealer may choose to send their trainers or recruit outside trainers.

Independent Professionals: Considering the emerging threats and opportunities, the professionals need to keep themselves updated of the developments. In this option, the responsibility of training is entirely on the individual and a better-trained professional will always have better market worth than others.


SAP is becoming increasingly popular these days as:
• SAP allows customizing the software to specific needs of the company
• SAP is user-friendly, familiar looking, and has an experience of windows based applications
• SAP can be used worldwide
• It is easy to process user transactions with SAP
• SAP increases liability
• SAP improves the effectiveness and efficiency of the employees

• SAP gives reliable, accurate, and instant information
• Old software systems do not meet the need of companies
• SAP is a affordable and no special software is required to access
• SAP supports all the fields, such as Marketing, Finance, Human Resource, Logistics, Operations, etc.

SAP in India
Importance of SAP is increasing in India as it helps in delivering solutions to number of flourishing companies. Other than that-

Growing Importance- India is a growing economy and has the world’s youngest population. GDP (Gross Domestic Product) of India is around 7%, and is expected to reach 10%. More than 65,000 of Americans live in India and are attracted by the technological and educational development.

Mismatch in student mobility- More than 70,000 Indian students are living in the US, while only 10,000 U.S. students are living in India

Information not available easily- Students of Developed nation require information on India through temporary credit based tutorials

Growing concept of studying abroad- More than 70,000 Indian students are living in the US, while only 10,000 U.S. students are living in India

Meaning of Training

Training refers to the acquisition of knowledge, skills, and competencies as a result of the teaching of vocational or practical skills and knowledge that relates to specific useful skills. It forms the core of apprenticeships and provides the backbone of content at technical colleges and polytechnics. Today it is often referred to as professional development.

Training & Development is the field concerned with workplace learning to improve performance. Such training can be generally categorized as on-the-job or off-the-job. On-the-job describes training that is given in a normal working situation, using the actual tools, equipment, documents or materials that they will use when fully trained. On-the-job training is usually most effective for vocational work. Off-the-job training takes place away from normal work situation which means that the employee is not regarded as productive worker when training is taking place. An advantage of off-the-job training is that it allows people to get away from work and totally concentrate on the training being given. This is most effective for training concepts and ideas.

Training differs from exercise in that exercise may be a one of occasional activity for fun. Training is specific and done to improve one's capability, capacity, and performance.

In organizational development, the related field of training and development (T & D) deals with the design and delivery of learning to improve performance within organizations.

In some organizations the term Learning & Development is used instead of Training and Development in order to emphasis the importance of learning for the individual and the organization. In other organizations, the term Human Resource Development is used.

Importance of Training

“Training is a very important priority for any organization. Training and developing people in an organization is one of the strategic focuses. We’re talking about winning in a highly competitive business. Objective is to drive our competitiveness through this training. Now, it’s not going to happen unless every person in the division, including the President, makes a personal investment in leadership, in learning and in development. We think this is the central concept around building quality of work life. It is the central concept around getting the best people to come to work for you, and it is the central concept around moving to the next level. It can’t be overemphasized.”

As a brief review of terms, training involves an expert working with learners to transfer to them certain areas of knowledge or skills to improve in their current jobs. Development is a broad, ongoing multi-faceted set of activities (training activities among them) to bring someone or an organization up to another threshold of performance, often to perform some job or new role in the future.
Typical Reasons for Employee Training and Development
Training and development can be initiated for a variety of reasons for an employee or group of employees, e.g.,:
• When a performance appraisal indicates performance improvement is needed
• To "benchmark" the status of improvement so far in a performance improvement effort
• As part of an overall professional development program
• As part of succession planning to help an employee be eligible for a planned change in role in the organization
• To "pilot", or test, the operation of a new performance management system
• To train about a specific topic (see below)
Typical Topics of Employee Training
1. Communications: The increasing diversity of today's workforce brings a wide variety of languages and customs.
2. Computer skills: Computer skills are becoming a necessity for conducting administrative and office tasks.
3. Customer service: Increased competition in today's global marketplace makes it critical that employees understand and meet the needs of customers.
4. Diversity: Diversity training usually includes explanation about how people have different perspectives and views, and includes techniques to value diversity
5. Ethics: Today's society has increasing expectations about corporate social responsibility. Also, today's diverse workforce brings a wide variety of values and morals to the workplace.
6. Human relations: The increased stresses of today's workplace can include misunderstandings and conflict. Training can people to get along in the workplace.
7. Quality initiatives: Initiatives such as Total Quality Management, Quality Circles, benchmarking, etc., require basic training about quality concepts, guidelines and standards for quality, etc.
8. Safety: Safety training is critical where working with heavy equipment , hazardous chemicals, repetitive activities, etc., but can also be useful with practical advice for avoiding assaults, etc.
9. Sexual harassment: Sexual harassment training usually includes careful description of the organization's policies about sexual harassment, especially about what are inappropriate behaviors.
General Benefits from Employee Training and Development
There are numerous sources of online information about training and development. Several of these sites (they're listed later on in this library) suggest reasons for supervisors to conduct training among employees. These reasons include:
• Increased job satisfaction and morale among employees
• Increased employee motivation
• Increased efficiencies in processes, resulting in financial gain
• Increased capacity to adopt new technologies and methods
• Increased innovation in strategies and products
• Reduced employee turnover
• Enhanced company image, e.g., conducting ethics training (not a good reason for ethics training!)
• Risk management, e.g., training about sexual harassment, diversity training

Training and Development
Q) Meaning and Definition
A business' most important asset is often its people. Training and developing them can be one of the most important investments a business can make. The right training can ensure that your business has the right skills to tackle the future. It can also help attract and retain good quality staff, as well as increasing the job satisfaction of those presently with you - increasing the chances that they will satisfy your customers.
Training and development refer to the imparting to specific skills’ ability and knowledge to an employee. A formal definition of training and development is:

“… it is any attempt to improve current or future employee performance by increasing an employee’s ability to perform through learning, usually by changing the employee’s attitudes or increasing his or her skills and knowledge.”

The need for training and development is determined by the employee’s performance deficiency, computed as follows:

We can make a distinction among training, education and development. Such distinction enables us to acquire a better perspective about the meaning of the terms. Training, as was started earlier, refers to the process of imparting specific skills. Education, on the other hand, is confined to theoretical learning in the classrooms.

Training Education

Application oriented
Job experience
Specific tasks
Narrow perspective
Theoretical oriented
Classroom learning
General concepts
Broad perspective

Development refers to those learning opportunities designed to help employees grow. Development is not primarily skill-oriented. Instead, it provides general knowledge and attitudes, which will be helpful to employees in higher positions. Efforts towards development often depend on personal drive and ambition. Development activities, such as those supplied by management development programmes, are generally voluntary.


The first step in the training process in an organization is the assessment of its objectives and strategies. What business are we in? At what level of quality do we wish to provide this product or service? Where do we want to be in the future? It is only after answering these and other related questions that the organization must assess the strengths and weaknesses of its human resources.

Organizations spend vast sums of money on training and development. Before committing such huge resources, organizations would do well to assess the training needs of the employees. Organizations that implement training programmes without conducting needs assessment may be making errors.

Needs assessment occurs at two levels:
a) Individual
b) Group

An individual obviously needs training when his or her training falls short of standards, that is, when there is performance deficiency. Inadequacy in performance may be due to lack of skill or knowledge or any other problem. The problem of performance deficiency is caused by absence of skills or knowledge can be remedied by training. Faulty selection, poor job design, uninspiring supervision or some personal problem may also result in poor performance. Transfer, job redesign, improving quality of supervision, or discharge will solve the problem.
Individuals may also require new skills because of possible job transfers. Although job transfers are as common as organizational personal demands vary, they do not necessarily require elaborate training efforts. Employees commonly require an orientation to new facilities and jobs. Recently, however, economic forces have necessitated significant retraining efforts in order to assure continuous employment for many individuals.
Assessment of training needs occurs at group level too. Any change in the organization’s strategy necessitates training groups of employees. For example, when the organization decides to introduce a new line of products, sales personnel and production workers have to be trained to produce, sell and service the new products. Training can also be used when high scrap or accident rates, low morale and motivation, or other problems are diagnosed.

Needs Assessment Methods:
Several assessment methods for are available for assessing training needs. Some are useful for organizational level needs assessment and others for individual needs assessment.

Benefits of Needs Assessment:
Needs assessment helps diagnose the cause of performance deficiency of employees. Causes require remedial actions. There are specific benefits of needs assessment.
Trainers may be informed about the broader needs of the training group and their sponsoring organizations.
The sponsoring organizations are able to reduce the perception gap between the participant and his or her boss about their needs and expectations from the training programme.
Trainers are able to pitch their course inputs closer to the specific needs of the participants.

Once the training needs are assessed, training and developmental goals must be established. With out clearly set goals, it is not possible to design a training and development programme and, after it has been implemented, there will be no way of measuring its effectiveness. Goals must be tangible, verifiable, and measurable. This is easy where skill training is involved. For example, the successful trainee will be expected to type 55 words per minute with two or three errors per page. But behavioral objectives like attitudinal changes can be more difficult to state. Nevertheless, clear behavioral standards of expected results are necessary so that the programme can be effectively designed and results can be evaluated.

Every training and development programme must address the following vital issues:

1. Who are the trainees?
Trainees are selected on the basis of:
Self Nomination
 Recommendations of the Supervisor
By the HR Department itself
Whatever is the basis, it is advisable to have two or more target audiences. For example, rank-and-file employees and their supervisors may effectively learn together about a new process and their respective roles. It also helps facilitate group processes such as problem solving and decision – making.

2. Who are the trainers?
Training and development may be done by:
Immediate Supervisors
Co – workers
 Personnel Staff
Specialists in other parts of the company
Outside Consultants
Industry Associations
Faculty Members at Universities

Who among these are selected to teach, often depends on where the program is held and the skill that is being taught.

3. What Methods and Techniques of Training should be used?
A multitude of methods and techniques is used to train employees. Training techniques are the means employed in the training methods. Training methods are categorized into two groups – on-the-job methods and off-the-job methods. The most commonly used techniques are shown in the table given below.

On-the-Job Method (OJT):
Majority of industrial training is on the job training type. OJT method is mainly adopted while orienting new employees, introducing innovations in products & services and in special skills training. OJT is conducted at the work site and in the context of the job. Often, it is informal, as when an experienced worker shows a trainee how to perform the job tasks.
 Off-the-Job Training Method:
Off-the-job training is mainly adopted for orienting new employees, introducing innovations in products and services, special skills training, safety education, creative, technical & professional education and sales, administrative, supervisory and managerial education. The advantages and disadvantages of some of the important techniques of off-the-job methods are listed below:
a) Lectures:
Lecture is a verbal presentation of information by an instructor to a large audience. This method can be made effective when combined with other means of training.
b) Audio-Visuals:
These include television slides, overheads, video-types, films and LCD Projectors.
c) Programmed Instruction (PI):
Training is offered without the intervention of the trainer. Information is provided to the trainee in blocks, either in a book form or through a teaching machine. PI involves:
1. Presenting questions, facts, or problems to the learner.
2. Allowing the person to respond.
3. Providing feedback on the accuracy of his or her answers.
4. If the answers are correct, the learner proceeds to the next block.
d) Simulations:
A simulator is any kind of equipment or technique that duplicates as nearly as possible the actual conditions encountered on the job. It is an attempt to create a realistic decision – making environment for the trainee. The advantage of simulation is the opportunity to ‘create an environment’ similar to real situations the managers incur, but without the high costs involved should the actions prove undesirable.

The other techniques of training are:
Leadership games: exercises to teach different styles of leadership.
Skill Games: Tests to develop analytical skills.
Communication Games: exercises to build bias – free listening and talking.
Strategic Planners: Games to test ability to plan ahead.
Team – building games: Exercises requiring collaborative efforts.
Lateral Thinking: thinking randomly to come up with new ideas.
Cross – cultural training: Programmes to teach specifics of varied cultures.

4. What should be the level of learning?
The inputs passed on to trainees in training and development programmes can be taught at three basic levels.
Level I The trainee must acquire fundamental knowledge. This means developing a basic understanding of a field and becoming acquainted with the language, concepts and relationships involved in it. E.g. Orientation Training
Level II The goal is skill development, or acquiring the ability to perform in a particular skill area.
Level III Aims at increased operational proficiency. This involves obtaining additional experience and improving skills that have already been developed.

All the inputs of training can be offered at the three levels. How effectively they are learned depends upon several principles of learning.

5. What should be the Principles of Learning?
Training and development programmes are more likely to be effective when they incorporate the following principles of learning:

 Motivation:
Motivation to learn is the basic requisite of making training and development programmes effective. Motivation comes from awareness that training fetches some rise in status and pay. Internal pressures (self-esteem, quality of life, job satisfaction) are the most powerful motivators. At the same time the individual must also have the ability to learn.
Individual Differences:
Individuals enjoy varying learning stimuli. Ability varies from individual to individual and this difference must be considered while organizing training programmes.
Practice Opportunities:
People learn best through practice. The trainee should be given the opportunity to practice what is being taught. Practice is also essential after the individual has been successfully trained.
Reinforcement is anything that
a) Increases the strength of response
b) Tends to induce repetitions of the behavior that preceded the reinforcement.
Reinforcement could be positive and negative. Positive reinforcement strengthens and increases behavior by the presentation of desirable consequences. The reinforcement consists of a positive experience for the individual. Example: if an employee does something well and is complemented by the boss, the probability that the behavior will be repeated will be strengthened.
In negative reinforcement, the individual exhibits the desired behavior to avoid something unpleasant. Example: an employee who does something to avoid incurring a reprimand from his boss. The effect of negative reinforcement is avoidance of learning.
Knowledge of Results (feedback):
Knowledge of results is a necessary condition for learning. Feedback about the performances will enable the learner to know where he or she stands and to initiate corrective action if any deviation from the expected goal has taken place.
Goal setting can also accelerate learning, particularly when it is accompanied by knowledge of results. Individuals generally perform better and learn more quickly when they have goals, particularly if the goals are specific and reasonably difficult.
Schedules of learning:
One of the most well – established principles of learning is that distributed or spaced learning is superior to continuous learning.
Schedules of learning involve:
a) Duration of practice sessions
b) Duration of rest sessions
c) Positioning of rest pauses
All the three must be carefully planned and executed.
Meaning of material:
A definite relationship has been established between learning and meaningfulness of the subject learnt. The more meaningful the material, the better the learning process.
Transfer of Learning:
What is learnt in training must be transferred to the job. The traditional approach to transfer has been to maximize the identical elements between the training situation and the actual job. This may be possible for training skills such as maintaining a cash register, but not for teaching leadership or conceptual skills. Often, what is learnt in a training session faces resistance back at the job. Techniques for overcoming resistance include creating positive expectations on the part of trainee’s supervisor, creating opportunities to implement new behavior on the job, and ensuring that the behavior is reinforced when it occurs.
Though, it is desirable that a training and development programme incorporates all these principles, seldom is such a combination effected in practice.

6. Where to conduct the programme?
A training and development programme can be conducted:
i. At the job itself
ii. On site but not the job – for example, in a training room in the company.
iii. Off the site, such as in a university or college classroom, hotel, a resort, or a conference center.

Once the training programme has been designed, it needs to be implemented. Implementation is beset with certain problems:
a) Most managers are action oriented and frequently say they are too busy to engage in training efforts.
b) Availability of trainers is a problem. In addition to possessing communication skills, the trainers must know the company’s philosophy, its objectives, its formal and informal organizations, and the goals of the training programme. Training requires a higher degree of creativity than, perhaps, any other personnel specialty.
c) Scheduling training around the present work is another problem.

Programme implementation involves action on the following lines:
a) Deciding the location and organizing training and other facilities
b) Scheduling the training programme
c) Conducting the programme
d) Monitoring the progress of trainees

The last stage in the training and development process is the evaluation of results. Since huge sums of money are spent in training and development, how far the programme has been successful must be judged or determined. Evaluation helps determine the results of the training and development programme. In practice, however, organizations either overlook or lack facilities for evaluation.

Need for Evaluation:
The main objective of evaluating the training programmes is to determine if they are accomplishing specific training objectives, that is, correcting performance deficiencies. A second reason for evaluation is to ensure that any changes in trainee capabilities are due to the training programme and not due to any other conditions. Training programmes should be evaluated to determine their cost effectiveness. Evaluation is useful to explain programme failure, should it occur. Finally, credibility of training and development is greatly enhanced when it is proved that the organization has benefited tangibly from it.

Principles of Evaluation:
Evaluation of the training programme must be based on the following programmes:
a) Evaluation specialists must be clear about the goals and purpose of evaluation
b) Evaluation must be continuous
c) Evaluation must be specific
d) Evaluation must provide the means and focus for trainers to be able to appraise themselves, their practices, and their products.
e) Evaluation must be based on objective methods and standards.
f) Realistic target dates must be set for each face of the evaluation process. A sense of urgency must be developed, but deadlines that are unreasonably high will result in poor evaluation.
There are various approaches to training evaluation. To get a valid measure of training effectiveness, the personnel manager should accurately assess trainee’s job performance two to four months after completion of training.
Two writers have suggested that four basic categories of outcome can be measured.
a) Reaction: evaluate the trainee’s reaction to the programme. Did he like the programme? Did he think it worthwhile?
b) Learning: did the trainee learn the principles, skills and the fact that the supervisor or the trainee wanted him to learn?
c) Behavior: Whether the trainee’s behavior on the job changed because of the training programme?
d) Results: what final results have been achieved? Did he learn how to work on machine? Did scrappage costs decrease? Was turnover reduced? Are productions quotas have been met?

Questionnaires or structured interviews with the immediate supervisors of the trainees are acceptable methods for obtaining feedback on training. The supervisor is asked to rate the former trainee on job proficiency directly related to the training objectives.
Besides, pre-and-post tests be administered to the training groups. Prior to the training, a test related to the training material is applied, and the results of this pre-test are compared with results on the same or similar test administered after the programme has been completed.

Q) Objectives of Training and Development
Staying ahead in today's business world is more challenging than ever. Building trust and promoting teamwork are just two expectations of any business leader.
Training and development programs are designed to keep an organization at the front of its industry maximize performance and energize every level of the organization. Training and Development is also seen to strengthen the tie between employee development and strategic operation objectives.

The objectives of Training and Development are as follows: -
Efficiency: Employees become efficient after undergoing training. Efficient employees contribute to the growth of the organization.
Fewer accidents: Accidents, scrap and damage to machinery and equipment can be avoided or minimized through training. Even dissatisfaction, complaints, absenteeism, and turnover can be reduced if employees are trained well.
Meeting manpower needs: Future needs of employees will be met through training and development programmes. Training serves as an effective source of recruitment. Training is an investment in human resource with promise of better returns in future.
 Improves quality: Better-informed workers are likely to make less operational mistakes. Quality of products or services will definitely increase. This can be well measured through the reduction in rejections.
Personal growth: Training programmes also deal with personality development of the employees (through goal setting, motivation, leadership skills, etc.) thus they personally gain through exposure to training programmes.
Obsolescence prevention: Training and development programs foster the initiative and the creativity of the employees and help to prevent the manpower obsolescence, which may be due to age, temperament, or the inability of the person to adapt himself to technological changes.

• Versatility in operations: Training makes the employees versatile in operations. All rounders can be transferred to any job. Flexibility is therefore ensured. Growth indicates prosperity, which is reflected in profits every year.

• Employee stability: Training contributes to employee stability in at least 2 ways. Employees become efficient after undergoing training. Efficient employees contribute to the growth of the organization. Growth renders stability to the work force. Further trained employees tend to stay with the organization.

Q) Effectiveness and Evaluation of Training and Development
Effectiveness of Training
Training and Development programmes are most likely to be effective when they incorporate the following principles

1.Employee Motivation-motivation to learn is the basic requisite to make training and development programmes effective. Motivation comes from awareness that training fetches some rise in status and pay. Motivation alone is not enough; the individual must have the ability to learn.

2.Recognition of individual differences
Regardless of individual differences, and whether a trainee is learning a new skill or acquiring knowledge of a given topic, the trainee should be given the opportunity to practice what he is taught. Practice is essential after individual is successfully trained.

3.Schedule of learning
Duration of practice sessions, duration of rest sessions and positioning of rest pauses are the three schedules, which must be carefully planned and executed for an effective training programme.

Besides, Training can be made effective, if action on the following lines is initiated: -

1.It should be ensured that the management commits itself to allocate major resources and adequate time to training. This is what high performing organizations do. For example XEROX, invest 300 $ million annually or about 2.5% of its revenue on training. Similarly Hewlet Packard spends about 5% of its annual revenue to train 87000 workers.

2.It should be ensured that training contributes to competitive strategies of the firm. Different strategies need different HR skills for implementation. Let training help employees at all levels acquire the needed skills.

3.Ensure that a comprehensive and systematic approach to training exists, and training and retraining are done at all levels on a continuous and ongoing basis.

4.Training can be made effective by making learning as one of the fundamental values of the company. This philosophy should percolate down to all employees in the organization.

5.It should be ensured that there is proper linkage among organizational, operational and individual training needs.

6.And finally to make training effective a system to evaluate the effectiveness of training needs to be prepared so that the shortfalls can be easily looked at.

Why Training Fails?
The benefits of training are not clear to the top management.
The top management hardly rewards the supervisors for carrying out effective training.
The top management rarely plans and budgets systematically for training
The middle management, without proper incentives from top management does not account for training in production scheduling
Without proper scheduling from above, first line supervisors have difficulty in production norms if employees are attending training programmes.
Trainers provide limited counseling and consulting services to the rest of the organization.

Evaluation of Training
Organizations are under pressure to justify various expenses. The training budget is, often, not exempted from this purview. There are a number of questions raised on the value derived from training programmes—both directly and indirectly. Business heads and training managers are under pressure to prove the effectiveness of training

Thus it can be seen,
The last and one of the most important stages in the training and development process is the evaluation of results. Since huge sums of money are spent on training and development. how far the training has been useful must be judged/determined.
Evaluation helps determine the results of the training and development programme.
In practice is however seen, organizations either overlook or lack facilities for evaluation.

Need for evaluation: -
• The main objective of evaluating the training programme is to determine if they are accomplishing specific training objectives, that is correctible performance deficiencies.
• Secondly training programme should be evaluated to determine their cost effectiveness. Evaluation is useful to explain programme failure, if it occurs.
• And finally the credibility of training and development is greatly enhanced when it is proved that the organization has benefited tangibility from it.

Principle of evaluation

Evaluation of training programme must be based ob following principles
1. The evaluation specialist must b clear about the goals and purposes of evaluation.
2. Evaluation must be continuous.
3. Evaluation must be specific.
4. Evaluation must provide the means and focus for trainers to be able to appraise themselves
5. Evaluation must be based on objective methods and standards.
6. Realistic target dates must be set for each phase of the evaluation process. A sense of urgency must be developed, but deadlines that are unreasonably high will result in poor evaluation.

Criteria for evaluation.
HR professionals should try to collect four types of data while evaluation training programmes.
I. Measures of reaction.
Reaction measures reveal trainees’ opinions regarding the training programme.

II. Learning
Learning measures assess the degree to which trainees have mastered the concepts, knowledge and skills of the training.

III. Behavioural change
Behavior indicates the performance of the learners.

IV. Organizational results
The purpose of collecting organizational results is to examine the impact of training on the work group or the entire company.

Techniques of evaluation
Several techniques of evaluation are being used in organizations. It may be stated that the usefulness of the methods is inversely proportional to the ease with which the evaluation can be done.
The following are the techniques of evaluation: -
1.Experimental and control groups.
Each group is randomly elected, one to receive training and the other not to receive training.
The random selection helps to assure the formation of the groups quite similar to each other. Measures are taken of relevant indicators of success. (E.g.-words typed per minute, pieces produced per hour etc) before and after training for both groups.
If the gain demonstrated by the experimental group is better than those by the control group, the training programme is labeled as successful.

2.Longitudinal or time series analysis
Measurements are taken before the programme begins and are continued during and after the programme is completed. These results are plotted on a graph to determine whether changes have occurred and remain as a result of training effort. To further validate, that change has occurred as a result of training and not another variable, a control group can be included.

In order to conduct a thorough evaluation of a training programme, it is important to assess the costs and benefits associated with the programme. This is a difficult task, but it is useful in convincing the management about the usefulness of the training.
Some of the costs that should be measured for a training programme include needs assessment costs, salaries of training department staff, purchase of equipment, programme development costs, trainers cost during the training period.
The benefits to be compared to the costs are rupee payback associated with the improvement in trainee’s performance, their behavioral change and the longevity of the period during which the benefit would last.

Q) Follow – Up of Training
Following-up is the last step in the training process. Here, the training program is already completed and the trainees go back to their departments or positions and start doing the work assigned. However, the management feels that training / development is a means and not the end in itself. Training is essentially for achieving certain objectives. Management will like to know actual results / benefits of training. For this, follow-up of training in the form of evaluation training is essential. Management spent huge amount of money on training of employees and this expenditure should give positive return in terms of higher efficiency, productivity, high morale, cordial industrial relations and so on. For this, critical evaluation of training program is essential. This indicates the effectiveness of the training. Even suitable modification / improvement in the training program is possible after analyzing the results available from such evaluation. In brief, evaluation helps determine the results of training and development program. Unfortunately, many organizations overlook this important step in the training process. In some companies, suitable facilities required for evolution of training are not available.
Follow-up is the key to ensuring that interventions improve performance. Various follow-up approaches in the work place are used to support trainers, supervisors, service providers and others responsible for implementing the performance improvement interventions.
The follow up technique will increase the probability that learning and behavior changes will "stick" back on the job. These techniques are easy to use, don't require large amounts of time or organizational integration and cost very little. They can be added on to existing training or designed with new training.
On the whole, follow–up action is required to ensure implementation of evaluation report at every stage of training.

Q) Importance of Training and Development

Training and development programmes help remove performance deficiencies in employees. This is particularly true when
(1) The deficiency is caused by a lack of ability rather than a lack of motivation to perform
(2) The individual(s) have the aptitude and motivation needed to learn to do the job better, and
(3) Supervisors and peers are supportive of the desired behaviors.

There is greater stability, flexibility and capacity for growth in an organization. Training contributes to employee stability in at least two ways. Employees become efficient after undergoing training. Efficient employees contribute to the growth of the organization. Growth renders stability to the work force. Further, trained employees tend to stay with the organization. They seldom leave the company. Training makes the employees versatile in operations. All rounder can be transferred to any job. Flexibility is therefore ensured. Growth indicates prosperity, which is reflected in increased profits from year to year. Nobody else but well trained employees can contribute to the prosperity of an organization.

Accidents, scrap and damage to machinery and equipment can be avoided or minimized through training. Even dissatisfaction, complaints, absenteeism, and turnover can be reduced if employees are trained well.

Future need of employees will be met through training and development programmes. Organizations take fresh diploma holders or graduates as apprentices or management trainees. They are absorbed after course completion. Training serves as an effective source of recruitment. Training and development is an investment in human resources with a promise and it serves as an effective source of recruitment. Training and development is an investment in HR with a promise of better returns in future.

A company’s training and development pays dividends to the employee and the organization. Though no single training programme yields all the benefits, the organization which devotes itself to training and development enhances its HR capabilities and strengthens its competitive edge. At the same time, the employee’s personal and career goals are furthered, generally adding to his or her abilities and value to the employer. Ultimately, the objectives of the HR department are also furthered.

How to identify training needs?

Needs assessment diagnoses present problems and future challenges to be met through training and development. Organizations spend vast sums of money (usually as a percentage on turnover) on training and development. Before committing such huge resources, organizations would do well to assess the training needs of their employees. Organizations that implement training programmes without conducting needs assessment may be making errors. For ex- ample, a needs assessment exercise might reveal that less costly interventions (e.g. selection, compensation package, job redesign) could be used in lieu of training. Needs assessment occurs at two levels group and individual. An individual obviously needs training when his or her performance falls short of standards, that is, when there is performance deficiency. Inadequacy in performance may be due to lack of skill or knowledge or any other problem. The problem of performance deficiency caused by absence of skills or knowledge can be remedied by training. Faulty selection, poor job design, uninspiring supervision or some personal problem may also result in poor performance. Transfer, job redesign, improving quality of supervision, or discharge will solve the problem. Figure illustrates the assessment of individual training needs and remedial measures.

Assessment of training needs must also focus on anticipated skills of an employee. Technology changes fast and new technology demands new skills. It is necessary that the employee be trained to acquire new skills. This will help him/her to progress in his or her career path. Training and development is essential to prepare the employee to handle more challenging tasks. Deputation to a part-time MBA programme is ideal to train and develop such employees. Individuals may also require new skills because of possible job transfers. Although job transfers are common as organizational personnel demands vary, .hey do not necessarily require elaborate training efforts. Employees commonly require only an orientation to new facilities and jobs. Recently, however, economic forces have necessitated significant retraining efforts in order to assure continued employment for many individuals. Jobs have disappeared as technology, foreign competition, and the force of supply and demand are changing the face of our industry.
Assessment of training needs occurs at the group level too. Any change in the organization’s strategy necessitates training of groups of employees. For example, when the organization decides to introduce a new line of products, sales personnel and production workers have to be trained to produce, sell and service the new products. Training can also be used when high scrap or accident rates, low morale and motivation, or other problems are diagnosed. Although training is not a cure-all, such undesirable happenings reflect poorly trained work force.
Needs Assessment Methods: How are training needs assessed? Several methods are available for the purpose. As shown in Fig. 9.4, some are useful for organizational-level needs assessment and others for individual needs assessment.

Group or Organizational Analysis
 Organizational goals and objectives
Personnel/ skill inventories
 Organizational climate indices
Efficiency indices
Exit interviews
 MBO or work planning systems
Quality circles
Customer survey/satisfaction data
Consideration of current and projected changes

Individual Analysis
Performance appraisal
Work sampling
Attitude survey
Training progress
Rating scales

Benefits of Needs Assessment: As was pointed above needs assessment helps diagnose the causes of performance deficiency in employees. Causes require remedial actions. This being a generalized statement, there are certain specific benefits of need& assessment. They are:
1. Trainers may be informed about the broader needs of the training group and their sponsoring organizations.
2. The sponsoring organizations are able to reduce the perception gap between the participant and his or her boss about their needs and expectations from the training programme.
3. Trainers are able to pitch their course inputs closer to the specific needs of the participants.

Performance appraisal

Q) Give the meaning and definition of performance appraisal and its objectives?

In simple terms, appraisal may be understood as 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.

A formal definition of performance appraisal is:
“It is the systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development.”

A more comprehensive definition is:
“Performance appraisal is a formal, structured system of measuring and evaluating an employee’s job related behaviors and outcomes to discover how and why the employee is presently performing on the job and how the employee can perform more effectively in the future so that the employee, organization, and society all benefit.”

The second definition includes employee’s behavior as part of the assessment. Behavior can be active or passive. Either way behavior affects job results. The other terms used for performance appraisal are: performance rating, employee assessment, employee performance review, personnel appraisal, performance evaluation, employee evaluation, and merit rating. In a formal sense, employee assessment is as old as the concept of management, and in an informal sense, it is probably as old as mankind. Nor performance appraisal is done in isolation. It is linked to job analysis.

Objectives of performance appraisal.

Data relating to performance assessment of employees are recorded, stored, and used for several purposes. The main purposes for employee assessment are:

1) To effect promotions based on competence and performance

2) To confirm the services of probationary employees upon their completing the probationary period satisfactorily.

3) To assess the training and development need of employees.

4) To decide upon a pay raise.

5) To let the employees know where they stand insofar as their performance is concerned and to assist them with constructive criticism and guidance for the purpose of their development.

6) To improve communication. Performance appraisal provides a format for dialogue between the superior and the subordinate, and improves understanding of personal goals and concerns. This can also have the effect of increasing the trust between the rater and the ratee.

7) Finally, performance appraisal can be used to determine whether HR programmes such as selection, training, and transfer have been effective or not.

Q. What is the Performance Appraisal process?
The employee performance appraisal enables you to identify, evaluate and develop an individual's performance. It is a tool to encourage strong performers to maintain their high level of performance and to motivate poor performers to do better.
Other important benefits of a formal appraisal process are:
• Validation of hiring practices — are the right people in the right positions?
• Provision of an objective measuring tool on which compensation decisions, and promotions can be based
• Identification of training needs — individually, departmentally and organizationally
• Identification of employees who have the potential for advancement or who might be better suited in other areas of the organization

1. Objectives Of An Appraisal:
1. Promotion, separation, and transfer decisions
2. Feedback to the employee regarding how the organization viewed the employee's performance
3. Evaluations of relative contributions made by individuals and entire departments in achieving higher level organization goals
4. Criteria for evaluating the effectiveness of selection and placement decisions, including the relevance of the information used in the decisions within the organization
5. Reward decisions, including merit increases, promotions, and other rewards
6. Ascertaining and diagnosing training and development decisions
7. Criteria for evaluating the success of training and development decisions
8. Information upon which work scheduling plans, budgeting, and human resources planning can be used

2. Establish Job Expectations:
Goals should be realistic, i.e., practical and achievable. Realistic goals provide a "balance" between what is hard and what is easy to achieve. Goals should motivate people to improve and to reach for attainable ends. For a goal to be motivational, the person must feel that the goal can be achieved. Impossible goals de-motivate and defeat the goal-setting process. Likewise, easy goals do not motivate any more than unattainable goals. You should review your goals on a quarterly or semi-annual basis to check your progress and to make any necessary adjustments.
3. Design An Appraisal Programme:
(i) Formal versus Informal approach?
• Many organizations encourage a mixture of both formal and informal approach. The formal approach is used as the primary evaluation, where as the informal approach is used more for performance feedback.
(ii) Who are the raters?
• Immediate supervisors, specialists from the hr department, subordinates, peers, committees, clients, or a combination of many.
(iii) What problems are encountered?
• Leniency, severity, bias
(iv) How to solve the problems?
• Train the raters and appraisers
(v) What should be evaluated?
• Quality, quantity, timeliness, cost effectiveness, need for supervision, interpersonal impact.
(vi) When to evaluate?
• Once in three months, once in six months or once a year
4. Appraise Performances:
Use methods of appraisal such as psychological appraisals, assessment centers, ranking method, performance tests and observations, essay method etc.
The formal performance appraisal process is one of assessing, summarizing and developing the work performance of an employee. The performance appraisal process should include at least two meetings convened by the supervisor with the employee.
5. Performance Interview:
Once appraisal has been made of employees, the raters should discuss and review the performance with the ratees, so that they receive feed back about where they stand in the eyes of the superiors. Feedback is necessary to effect improvement in performance. Performance interview has 3 goals:
(i) To change the behavior of employees whose performance does not meet organizational requirements or their own personal goals
(ii) To maintain the behavior of employees who perform in an acceptable manner
(iii) To recognize superior performance behaviors so that they will be continued
6. Use Appraisal Data For Appropriate Purposes:
The Hr department must use the data and information generated through performance evaluation. The employers offer significant rewards to employees in the form of:
(i) Money to purchase goods and services, for luxury
(ii) Opportunities to interact with other people in a favorable working environment
(iii) Opportunities to learn grow and make full use of their potential etc.
Data & information outputs of a performance will be useful in the following areas of HRM:
(i) Remuneration administration
(ii) Validation of selection programmes
(iii) Employee training & development programmes
(iv) Promotion, transfer & lay-off decisions
(v) Grievance & discipline programmes
(vi) HR planning

Q)Methods of Evaluation of Performance Appraisal

Numerous methods have been devised to measure the quantity and quality of employee’s job performance. Each of the methods discuss could be effective for some purposes for some organization as different organizations different methods. Broadly all the approaches can be classified into past oriented and future oriented.


Rating Scales

This is the simplest and most popular method of appraising employee performance. The typical rating-scale system consists of several numeric scales, each representing a job-related performance criterion such as dependability, initiative, output, attendance, attitude and the like. Each scale ranges from excellent to poor. The rater checks the appropriate performance level on each criterion, then computes the employee’s total numerical score. The number of points scored may be linked to salary increases, whereby so many points equal a rise of some percentage.
Rating scales offer the advantages of adaptability, relatively easy use and low cost. Nearly every type of job can be evaluated with the rating scale, the only requirement being that the job performance criteria should be changed. This way a large number of employees can be rated in a short time, and the rater does not need any training to use the scale.
The disadvantages of this method are several. The raters biases are likely to influence the evaluation, and the biases are particularly pronounced on subjective criteria such as co-operation, attitude and initiative. Furthermore, numerical scoring gives an illusion of precision that is really unfounded

Man to Man comparison method:

This technique was used by the US army, during the first world war. By this method certain factors are selected for the design by the rater for each factor. A scale of man is also created for each selected factor. Each man to be rated is compared with the man in the scale, and certain scores for each factor are awarded to him. So, instead of comparing a “whole man” to a “whole man” personnel are compared to the key man in respect of one factor at a time. This method s used in job evaluation and is called the factor comparison method. In performance appraisal it is not of much use because the designing of scales is a complicated task.

360-degree system of appraisal

Where appraisal are made by peers, superiors, subordinates and clients it is called 360-degree system of appraisal. First developed at GE, US in 1992, the system has become popular in our country too. GB (India), Reliance Industries, Crompton Greaves, Godrej soaps, Infosys, Thermax and Thomas Cook are using the method with greater benefits. The Arthur Anderson survey (1997) reveal the20% of the organizations use the 360-degree method. Here, besides assessing performance, other attributes of the assesse- talents, behavioural quirks, values, ethical standards, tempers and loyalty are evaluated by people who are best placed to do it.

Peer appraisal

Peers are in a better position to evaluate certain facts of job performance which the subordinates or supervisors cannot do. Such facts include contribution to work group projects, interpersonal effectiveness, communication skills, reliability and initiative. Closeness of the working relationship and the amount of personal contacts place peers in a better position to make accurate assessments. Unfortunately, friendship or animosity may result in distortion of evaluation. Further, when reward allocation is based on peer evaluation, serious conflicts among co-workers may develop. Finally, all the peers may join together to rate each other high.



The Management by objectives concept which was conceived by Peter Drucker, reflects a management philosophy which values and utilizes employee contributions.
MBO wroks can be described in four steps:
1) The organization, superiors and subordinates together or just the superiors alone establish the goals of the employee. This goal usually the desired outcome to be achieved and it can be used to evaluate performance.

2) Second step involves setting the performance standard for the subordinates in a previously arranged time period. As subordinates perform, they know fairly well what there is to do, what has been done, and what remains to be done.

3) Then the actual level of goal attained is compared to the goals agreed upon. The evaluator figures out why the goals were not met and accordingly determines training needs.

4) The last step is establishing new goals and, possibly, new strategies for goals not previously attained. If the goals were succeeded the subordinate may have larger involvement in setting of his next goal otherwise the superior may have to do it alone.

However, this method has been criticised for not being applicable to jobs with little or no flexibility, such as assembly-line work. It works well with managerial personnel and employees who have a fairly wide range of flexibility and self control in their jobs. And if this method is linked to employee rewards, the they are more likely to take up less challenging goals so that they are more likely to achieve them. Also if the rewards are semi annual or annual, then the employees may take up short term goals and neglect the important long term goals. L&T follows MBO style of evaluation

Assessment centers:

Mainly used for executive hiring, assessment centers are now being used for evaluating executive o supervisory potential. An assessment centre is a central location where managers may come together to have their participation in job related exercises evaluated by trained observers. The basic idea is to evaluate managers over a period of time, say one to three days, by observing and evaluating their behaviour across a series of selected exercises or work samples. Assesses are requested to participate in-basket exercises, work groups (without leaders), computer simulations, role playing, and other similar activities which require the same attributes for successful performance, as in the actual job. After recording their observations, the raters meet and discuss these observations. The decision regarding the performance of each assessee is based upon this discussion of observations. Self evaluation and peer evaluation are also thrown in for final rating.

Q)What are the uses of Performance Appraisal?

• Suitable Placement: Performance appraisal is useful for evaluating performance of subordinates and also for understanding their potentials. This information is available progressively and can be us purposefully for assigning duties to employees as per their merits and potentials. Thus, placement of staff and periodical adjustment in the placement can be made scientifically.

• Assistance in Self-improvement: Performance appraisal gives the details of plus points and weaknesses of employees. In addition, they are given guidance for removing their weaknesses and also for making their plus points more conspicuous. In brief, performance appraisal assists the employees in self-development. This is possible through performance feedback to every employee periodically.

• Incentive to Grown and Develop: Performance appraisal acts as an incentive to employees to improve their performance, develop new qualities and secure higher positions in the org. the employee with merit may be given special increments or promotion to higher position. This motivates others to improve their performance and qualities for similar benefits.

• Effective training programme: performance appraisal suggests the drawbacks and other weaknesses of employees. It is possible to remove such common weaknesses and deficiencies of employees by adjusting their training programmes accordingly.

• Introduction of Sound Personnel Policies: transfers, promotions, wage rates and dismissal are the different areas of personnel management. These personnel policies are directly connected with the performance appraisal of employees. Such policies become fair, impartial and acceptable to emp. When they are based on performance appraisal.

• Cordial Employer-Employees Relation: performance appraisal avoids or at least minimizes grievances of employees as regards promotions, transfers, increments etc. Employees develop a sense of confidence that injustice will not be done to any employee as performance appraisal system is based on sound principles. Management is also not in a position to make partiality/ favouratism when performance appraisal records are maintained properly and used when required.

• Human Resource Planning and Development: performance appraisal facilitates human resource planning and development. It suggests the type of manpower available. It is also possible to train or develop the existing manpower as per the future needs of the enterprise. This is possible through training and exec. Development programmes.

• Employee Communication: performance appraisal facilitates direct communication with the employees through appraisal interview and post appraisal interviews. Such communication guides emp. And also provides more info. to the mgmt. regarding the expectations and feelings of the employees.

• High Employee Morale: scientific and impartial appraisal gets the support from the employees. They feel that the mgmt. gives due importance to them and is genuinely interested I their career development and well being, this creates positive impact on the mental make-up of employees. They treat mgmt. as their friend, guide and well wisher. This raises the morale.

Q)The meaning of Pay Structure
A company's pay structure is its method of administering its pay philosophy. The two leading types of pay structures are the internal equity method, which uses a tightly constructed grid to ensure that each job is compensated according to the jobs above and below it in a hierarchy, and market pricing, where each job in an organization is tied to the prevailing market rate.
A company needs job descriptions for positions such as executives, managers, technologists, entry-level people, and the like, so that people know where they fall within the organization. A pay structure helps answer questions about who's who, what each person's role is, and why people are compensated differently. It also helps human resources personnel administer fairly any given pay philosophy. For example, a company might want to pay everyone at market; or pay some people at market and some above it. Opportunities for incentives are also dealt with in the pay structure. For example, people with strategic roles will have opportunities for higher incentives.

In most organizations wage and salary rates are still assigned to jobs. The relationships between the pay for jobs involve pay structure decisions. Although organizations often make pay level decisions (how much to pay) and pay structure decisions (pay relationship) at the same time, these decisions and the process by which they are reached require separate treatment.

Actually, wage structures represent wage relationships of all kinds. Analysis of wage differentials of any kind (geographic, industry, community, or occupation) deals with wage structure issues. But because our primary focus is on pay decisions in organizations, our concern is with pay differences between jobs. In fact, determining the pay structure of an organization may be usefully described as putting dollar signs on jobs. Decisions on wage relationships among jobs within an organization are largely within the control of its decision makers. Wage level decisions are usually influenced more by forces external to the organization than are wage structure decisions.

Some organizations pay for skills possessed by employees rather than for the jobs employees hold. The rationale is usually serious and continual skill shortages experienced by the organization. But most organizations measure employee contributions first in terms of the jobs employees hold. One interesting analysis of organizational compensation decisions is that pay structure decisions are intended to achieve retention of employees through prevention of dissatisfaction and encouragement of employee cooperation. Pay level decisions, in this analysis, are intended to attract employees. To this analysis could be added the statement that wage structure decisions are intended to encourage employees to make a career with the organization and to accept training in preparation for higher-level jobs.
• Lower-range — pay is between minimum pay and mid-range, is appropriate for employees in the learning and development phase of their job; this range is typically for employees new to a position and whose competencies are not yet fully developed. Entry level pay falls in this range.

• Mid-range — pay is appropriate for employees who are fully proficient in their job. This is the target market-based competitive pay for employees who are fully competent, possess the full skill set necessary to perform their job well, meet job expectations, and consistently demonstrate skills needed and fulfill responsibilities and duties.

• Upper-range — pay is appropriate for employees who serve as role models, exhibiting an exceptional skill set and consistently exceeding all job expectations. These employees exemplify the best way of doing their job, go the "extra mile," share their knowledge, and leverage their strengths to benefit the Organisation.

Q)The Meaning of Pay Level
The compensation and benefit level is the average compensation paid to employees. This has two implications. The first is external: how does the organization compare with other organizations? This question is a strategic one of how the organization wishes to position itself in the marketplace. The second implication is internal. The average compensation is a reflection of the total compensation bill of the organization. Labor is one of the claimants on organizational resources. The size of the compensation and benefits bill is a reflection of who gets what within the organization.
The decision on compensation levels (how much will the organization pay?) may be the most important pay decision the organization makes. A potential employee's acceptance usually turns on this decision, and a large segment of the employer's costs are determined by it.
Compensation decisions are typically micro (individual) or macro (total organization) focused. Although organizations are under no constraint to separate these decisions, a course of study should. In practice, most unsophisticated organizations make the decision on compensation level (how much to pay) and compensation structure (relationships to competitors) at the same time. More administratively advanced organizations realize that individual decisions within a proper administrative structure are more consistent, fair, and cost-effective over time.
The compensation level decision may be considered the most important one for individuals. In terms of both employee attraction and cost considerations, it is often considered by most managers as a primary consideration. Also, it seems essential to recognize that compensation level decisions can never be completely separate from job-mix, hiring standards, personal decisions, and internal labor markets/relationships. For these reasons, compensation level decisions are typically the focus of a manager’s attention. From the organization’s perspective, however, one individual’s compensation decision typically goes unnoticed at the end of the year. Structure decisions (and the level of those structures) are what show up on an income statement.
The term compensation level simply means the average compensation paid to workers at some level of analysis, e.g. the job, the department, the employing organization, an industry, or the economy. The importance of the compensation level decision to organizations rests on its influence in getting and perhaps keeping the desired quantity and quality of employees. If the compensation level is too low, the applicant pool may dry up and recruitment efforts may meet with little success. Equally serious, some employees (often the best ones) may leave. At the extreme, the organization may experience difficulties with state and federal regulatory bodies administering minimum compensation laws and prevailing wage laws. Also, the organization may be confronted with concerted organizing drives if no union is present, or pressing compensation demands from existing unions. It is less apparent, but equally real, that a low compensation level may attract only less efficient workers, with the result that labor costs per unit of output rise.
If, on the other hand, the compensation level is too high, equally undesirable results are likely. The competitive position of the organization may suffer. Turnover rates may drop below some desirable minimum so that the organization tends toward inflexibility or stagnation. Also, if compensation and salary levels are too high during periods of compensation controls by federal authorities, trouble may be forthcoming from these officials. Frequently, compensation and benefit level decisions are hidden in the type and structure of benefit, fringe, and retirement plans.
Changes in compensation levels have the most drastic effects on total payroll. Of course, other compensation decisions have payroll effects, but usually not nearly as great. Substantial sums of money can be involved, and for this reason alone an organization must pay close attention to compensation levels (both competitively and internally).
Nor are employees and their representatives any less concerned with compensation level decisions. It is here that the absolute amount of the compensation or salary rate is determined. Also, it is here that unions exert their major effect, and here that member loyalty is built or lost.
Finally, consumers and the general public have major interests in compensation level decisions, the consumer because wages are a major element in prices, and the general public because wages and salaries represent the major portion of national income. Also, too frequent or too drastic changes in compensation levels affect the health of our economy.

Q) Explain the Concepts of wages.

While evolving the wage policy, three concepts of wages are generally considered, namely,
1. Minimum Wages,
2. Fair Wages, and
3. Living Wages.

Minimum Wages
Minimum wage is the one that provides not merely the bare sustenance of life but also for the preservation of the efficiency of the worker. For this purpose, the minimum wage must also provide for some measure of education, medical requirements and amenities. Minimum wage may be tied by an agreement between the management and the workers, but is usually determined through legislation. This is more so in the unorganized sector where labour is unionised. In the fixation of minimum wages, besides the needs of workers, other factors like ability of the concern to pay, nature of the jobs, and so on, are also considered.

Fair Wages
Fair wage is understood in two ways. In a narrow sense, wage is fair if it is equal to the rate prevailing in the same trade and in the neighbourhood for similar work. In a wider sense, it will be fair if it is equal to the predominant rate for similar work throughout the country and for traders in general. Irrespective of the way in which fair wage is understood, it can be fixed only by comparison with an accepted standard wage. Such a standard can be determined with reference to those industries where labour is well organized and has been able to bargain well with the employers.

Living Wages
Living wage is a step higher than fair wage. Living wage may be described as one which should enable the wage earner to provide for himself and his family not on the bare essentials of life like food, clothing and shelter, but a measure of frugal comfort including education for children; protection against ill health; requirements of essential social needs; and/or measure of insurance against the more important misfortunes including old age. A living wage must be fixed considering the general economic conditions of the country. The concept of living wage, therefore, varies from country to country. In the more advanced countries, living wage itself forms the basis for the minimum wage.
In India, minimum wage is determined mainly for sweated industries under the provisions of the Minimum Wages Act, 1948. Fair wage is fixed for other industries considering prevailing rates of wages, productivity of labour, capacity of the employer to pay, level of national income and other related factors.
Tribunals, awards and wage boards play major role in fair wage fixation. Many people are of the opinion that living wage is a luxury for a developing country like India and can therefore be deferred.


Recruitment is understood as the process of
• Searching for and
• Obtaining applicants for jobs
• From among whom the right people can be selected.

Thus, a definition of Recruitment:-
• It’s a process of finding and attracting capable applicants for employment
• It begins with soughting out the new recruits and ends when their applications are submitted.
• As a result of which, a pool of applicants is obtained from which new employees are selected.

1. To increase the pool of job applicants at a minimum cost.
2. Evaluate various techniques of recruiting i.e. in terms of effectiveness and thus identify the one that fits in best with ones particular organisation.
3. Since, the company is recruiting , the strategy for various events is worked out during recruitment, it makes the company proactive and thus lowers the occurrence of errors by obtaining the most productive methods in hand.


Broadly classified as :-
1. External forces
2. Internal forces.

These external forces are the uncontrollable variables and thus have to be taken care off while recruiting. These include the following :-
• Supply and demand :- the forces of demand and supply dictate the labour market. Eg:- in case of professionals say, programmers or cost accountants their demand is greater than their supply. Thus a company recruiting might have to make a tremendous effort to strike a balance.
• Unemployment rate :- the unemployment rate in an area is high, then the recruitment process is simpler as the company recruiting is in a better position to identify potential candidates from a better and larger pool of applicants. And if the unemployment rate drops, then the company needs to focus on exploring newer resources.
• Political and Legal:- political decisions in terms of reservation of jobs for SC’s /ST’S minorities or lesser privileged sections of the society, has to be respected by the recruiting company. Also legal considerations like for example child labour prohibition in certain employment. Notification of vacancies by employers to Employment Exchanges . recruiting companies need to abide by these legalities subjectively.
• LABOUR MARKETS :- The conditions in the labour markets affect the recruitment process. When the company is making an attempt to find answer to the question “where to Look” this factor and its current scene comes into action. Example if there is shortage of blue collared employees in the local market , organisation is compelled to conduct regional recruitment campaigns.
• SONS OF SOIL:- it implies that preference be given to the people of their respective states in matters of employment.
• COMPANY’S IMAGE:- perception of the job seekers about the company acts as a key factor in attracting qualified prospective employees.


• RECRUITING POLICY:- whether its internal or external affects the process of recruitment.
• SIZE:- large companies there is less tedious job of recruiting and vice-versa.
• COST:- Recruiters must operate within budgets.
• HRP:- Careful and tactful HRP by recruiters can minimize recruitment cost.
• GROWTH:- the Phase of the life cycle of the company is to be considered. Eg: if the company is in the growth stage it will recruit more people where as if its in the decline or maturity phase it will not employ more people.
• DOMINION STATUS:- the dominion status of the organisation i.e. whether Indian or an MNC.

The process comprises of 5 interrelated stages which are as follows:-
1. Planning
2. Strategy Development
3. Searching
4. Screening
5. Evaluation and control.


Its designing the set objectives that
1. Quantify i.e. number
2. Qualify i.e. type of applicant to be contacted.
In accordance with job vacancies and their job information.

The company ascertains how many applicants are essential to fill in a particular vacancy. These figure may be arrived by an organisation, taking into account its past recruitment process. The organisation would derive a term called as YIELD RATIOS.
Yield ratio gives the relationship between two variables. The number of applicants (say 2000) against the actual number of people hired. (say 20) Thus the Yield ratio here is 100:1 i.e. to employ one person the company needs to tap 100 competent applicants.

Yield ratio would literally be the ratio of o/p to i/p, or the ratio of what you reap is to what you sow.

People matter but the right type of people matter more. Thus, recruitment planning is to identify the type of people that need to be looked at or approached about job openings. These details would be availed through job description and job specifications.


A strategy is a “plan of action”.

Once the organisation has summed up ‘how many’ and ‘what type’ of applicants required, the other issues would be:-

1. Make or buy :- the company has to make call whether the equation would be

Hire less skilled employees + invest on training and education = ‘Make’

Hire skilled employees + little Training and immediate work benefit = “buy”

Whatever would be the best fit according to the need of the hour has to be accustomed and each has its own pros and cons.
For Eg: in case of buy—though an organisation might have an advantage with the buy decision of little time and money spent on training and benefit of immediate work handling, but due to high remuneration demanded the benefit are outweighed by it.

2. Technological Sophistication

The decision as to use the available technology in the process.
EG: due to the advent of computers, the exchange of resumes online by job seekers and employers has helped the organisation a chance to eliminate an unfit applicant right in the screening stage, thus saving on time and travel expenses.

3. ‘where to look’:-

Here the geographic distribution of labour markets among job seekers is to be considered. General strategy for an organisation :-
Top level Executives- go on to national level and even international if its an MNC.
Technical Employees - regional and local markets.
Eg:- IT people;- Banglore
Embroiders – Calcutta.
Clerical and Blue collar jobs:- Local Markets.

Also, these aren’t water tight compartments and may be modified as per demand and need. But, organisations adopt an incremental strategy in which initial efforts are concentrated in regional or local markets and expanded if these efforts fail to achieve desired results.

4. ‘How To Look”:-

This refers to the sources of recruitment. These can be external as well as internal


• Present employees:- two ways of recruitment i.e. either by promotion or transfers. Promotions and their advantages are as follows :
• It raises employee morale leading to better productivity.
• Less riskier as the employee performance is already known.
• Cheaper than going outside for recruiting .
However, it can be dysfunctional as we lose on the opportunity of hiring an outsider more competent for the job.
Also, promotion to be effective, requires using job posting, personnel records and skill banks.
JOB POSTING means notifying vacant positions by posting notices, circulating publications or announcing at staff meeting and inviting employees to apply.
PERSONNEL RECORDS help discover employees who are under performing and also employees that have the potential for further training.
SKILL BANKS list current employees who have specific skills.
ANOTHER way to recruit present employees is transfers.

• Employee referrals:- the job incumbents inform about the job vacancy to their friends and families encouraging them to apply. This source is mostly a very effective method of recruiting because the organisation is reached to many qualified people at a very low cost. Also since the existing employees are already acquainted with job requirements, organisational culture, thus they pass on the same to the potential candidates for them to decide.

• Former Employee:- the retired employees may join on a part time basis or just as advisors or may even recommend competent candidates interested in the job. Companies have a ALUNINI i.e. a platform that provides interaction between former and existing.

• Previous Applicants:- Companies (Le Meridien ) maintain data Banks where the profile of the applicants are stored which can be used in times of vacancy. Thus, it’s a quick and inexpensive way to fill in semi-skilled jobs.


• Professional or Trade Associations:- Many associations publish journals or magazines at regular intervals to be circulated amongst its members, which can be used by organisations to place ads to attract highly educated, experienced or skilled personnel.

• Advertisements :- the most popular method as its reach is very wide. Newspapers the most common medium, but the newspaper chosen to place the ad should be thoughtful in terms of the target audience.
• Three important variables that affect the response rate to ads. Are :- the identification of organisation
Labour market conditions
Degree to which specification of the jobs mentioned in the ad.
• Blind ad.:- the employer does not disclose its identity, the job seekers are asked to reply to a post box number or to a company retained consulting firm. However, there’s reluctance on the part of respondents to a blind ad due to bad reputation as company’s use it just to test the supply of workers in the community, test their popularity among job seekers or identify the current employees who are likely to fly away.
• Ads. Are released by job seekers themselves, where they sell themselves by describing the qualifications, experience and areas of interest of advertisers.
• Also, advertisers must use AIDA formula i.e. attract attention, develop interest, create desire and instigate action on the part of the job seekers.

• Campus Recruitment:- Organistions use colleges, universities, research labs as fertile grounds. Companies like HLL, Tatas, L&T, Le Meridien etc. recruit regularly every year to skim the crème of campuses. However, campus recruitment is often an expensive process, as quite possibly the ones who were recruited quit their jobs due to lack of challenge offered by the organisation.

• Walk-Ins, Write-Ins, and Talk-ins:- Direct applicants, common, least expensive approach. It provides a pool of potential employees to meet future needs. Eg.- Le Meridien fills in its junior level jobs and staff cadre through direct application.

• Consultants:- recruiting agencies lend professionalism to the hiring process also providing nationwide contacts keeping the employer and employee anonymous. However cost becomes a constraint as consultants charge fees ranging from 20-50% of first year salaries of individual placed. Eg:- Abc Consultants, Head Hunters, etc. Strategic Management Alliance (SMA) used by Le Royal Meridien. I2C uses Mindspace, Infobase..

• Displaced persons :- Such people are a source of recruitment when the project is completed.

• Radio and T.V. :- Not a very popular source in the corporate world, usually used by the government to recruit. Eg: Indian army Ads invite youth to safeguard the country.

• Mergers and Acquisitions:- a large pool of employees is available at hand that of qualified job applicants from among which the best qualified job applicants can be drawn.

• Competitors:- Rival firms can be a strong source of recruitment. Popularly called ‘poaching’ involves identifying the right people in rural companies, offering them better terms and luring them. Eg: Chief of Crisil joined George Soros, one of the largest firms in the market.

5. ‘When to Look’ :- to decide on the timings of events. Time Lapse Data is used in determining the timings. TLD shows the time lag between ads placed for vacancies till the employee on duty. Thus it shows the average time that elapses between major decision points in the recruitment process. Therefore a company can know the time it needs in hand to fill in vacancies.


Also known as the Implementation Stage.
Step 1 is Source Activation . Sources and search methods are activated which results in a flood of applications.

Step 2 is Selling . following the source activation would be the way in which the message is sent across the organisation. A thoughtful and Tactful decision in identifying the way in which the company ‘sells’ its vacancies.


Applications received in response to ads are screened and only eligible applicants are called for an interview. Once the applications are scrutinized and shortlisted , the selection process commences. The techniques used to screen applicants vary depending on the candidate sources and recruiting methods used. Eg:- interviews and application banks used to screen walk-ins.


This step where the organisation goes back to the process and analyses the effectiveness of the entire process.
Evaluation of Recruitment Process

The recruitment process has the objective of searching for and obtaining applications from job-seekers in sufficient numbers and quality. Keeping this objective in mind, the evaluation might include:
1. Return rate of applications sent out.
2. Number of suitable candidates for selection.
3. Retention and performance of the candidates selected.
4. Cost of the recruitment process.
5. Time lapsed data.
6. Comments on image projected


A philosophy of recruiting is an attempt made to enhance the effectiveness of the recruitment process by matching the needs of the organization to the needs of the applicants. Two approaches are available to bring about this match. They are
(i) Realistic job preview (RJP), and
(ii) Job compatibility questionnaire (JCQ).

1. Realistic Job Previews
Realistic job preview (RJP) provides complete picture of the job covering both positive as well as negative aspects that helps the job seekers to evaluate the compatibility among the jobs and their personal ends before hiring decisions are made. It can result in self-selection process. Research shows that it leads to lower rate of employee turnover when RJP’s implemented realistically. More beneficial for organizations hiring at the entry level. Also for more complex and higher level of job satisfaction and performance at the initial stages of employment.

2. Job Compatibility Questionnaire
The Job Compatibility Questionnaire (JCQ) was developed to determine whether an applicant's preferences for work match the characteristics of the job. The job seeker is required to collect information on job factors like absenteeism, turnover and job satisfaction etc. Thus it’s administered to jobseekers who have bare idea with the target job under study. The assumption is that JCQ is that the greater the compatibility between an applicant's preferences for a job and the characteristics of the job as perceived by the jobseeker, the greater the probability of employee effectiveness and longer the tenure.
The JCQ is a 400-item instrument that measures job factors. Items cover the following job factors: task requirements, physical environment, customer characteristics, peer characteristics, leader characteristics, compensation preferences, task variety, job autonomy, physical demands, and work schedule.


Selection is defined as the process of differentiating between applicants in order to identify (and hire) those with a greater likelihood of success in a job.

Selection is basically picking an applicant from (a pool of applicants) who has the appropriate qualification and competency to do the job.

The difference between recruitment and selection:
Recruitment is identifying n encouraging prospective employees to apply for a job.
Selection is selecting the right candidate from the pool of applicants.


Selection is crucial for the organizations effectiveness for 2 reasons:

1) Work performance: Performance of the organization is very important to the success of the company. So the organization always employs people who are well qualified and competent.
2) Cost incurred: cost incurred while selection process also plays an important role.
This can be explained with an example:
Pepsi went on a crash recruitment drive. Six people from the company took over Oberoi business center for six days. 3000 people who had responded to the advertisements earlier issued were scanned: people were asked to respond within 100hrs by fax. People selected for the interview were flown into the city.
This eg just shows how expensive selection can be. Hence cost incurred is very important for the success of the selection process.


True Positive Error
False Negative Error

True Negative Error False Positive error



Success Failure
Predicted Prdeicted
Outcomes of the selection process

There are 4 outcomes of the selection decisions

1) True positive error: True positive is when the company predicts success and the result is a success ie when they select the right employee for the right job.

2) True negative error: True negative is when a company predicts failure and the result is a failure i.e when they reject a candidate appropriately.

3) False positive error: This happens when a company predicts success and results in failure. That is when they select a wrong/ incompetent employee for a job.

4) False negative error: This happens when a company predicts failure when the result could have been a success. That is when they an employee who is very competent due to wrong perceptions.

Types of cost incurred due to wrong selection decision:
1) cost of selection
2) cost of training
3) cost of re employment


It is easier for applicant because they can send their applications to a single centralized department/agency.
It facilitates contacts with applicants because issues pertaining to employment can be cleared through one central location.
It helps operating managers to concentrate on their operating responsibilities. This is helpful during peak operating period.
It can provide for better selection because hiring is done by specialist trained in staffing techniques.
The applicant is better assured of consideration for a greater variety of jobs.
Hiring cost may be cut because duplication of efforts is minimized.
With increased government regulations on the selection process, it is important that people who know about these rules handle a major part of the selection process.

Selection Process: The selection process consists of the following steps: (Diagram provided on next page)

1. Selection from the internal and the external environment: Several internal factors such as the company policy, HRP and cost of hiring as well as external factors such as supply and demand of specific skills in the labour market, unemployment rate, labour market conditions, legal and political considerations, company’s image etc., are among the major factors which are considered while selecting and employee at any level of the organization.

2. Preliminary Interview: The next step that tag along the selection procedure is a preliminary interview the wherein the applications are scrutinized so as to eliminate unqualified applications.

3. Selection Tests: After passing through the interview the next stage that the applicant has to prove himself on is the selection tests. There are different types of selection tests for different levels of the organization and that too is further differentiated within different types of organizations. Some of the most common and well-known tests that an applicant has to go through are:
(a) Ability test
(b) Aptitude test
(c) Personality tests: which is common mostly for the higher level of management are given to measure a prospective employee’s motivation to function in a particular working environment. There are various tests to Asses a candidate’s personality. Some of them are:

1.Bernsenter Personality Inventory Measures one’s self-efficiency, neurotic tendency, sociability, introversion & extroversion, locus of control & self-confidence.
2.Thematic Appreciation Test Assesses individual’s achievement and motivational skills.

(d) Interest Test: to measure an individual’s activity preferences.
(e) Graphology Test: is an art wherein the individual’s handwriting is seen and accordingly his personality traits are derived by the way he writes.
Eg: If he writes slant – Leadership Quality
If he writes big letters and capital letter emphasis – Tendency towards domination and competitiveness.
The selection process can be represented as in the diagram below:

External Environment

Internal Environment

Preliminary Interview

Selection Tests

Employment Interview

Reference and Background Analysis

Selection Decision

Physical Examination

Job Offer

Employment Contract




(f) Polygraph Test: are designed to ensure accuracy of the information given in the applications.
(g) Medical Tests: reveal physical fitness of a candidate.
(h) Drug Test: help to ensure the presence of illegal or performance-affecting drugs.

Factors considered while choosing Appropriate Tests

(A) Reliability: means standardization of administrating and scoring the test results. Eg: The test should be such that if a person gives the test today and get a score of 50 and if he gives the same test after 6 months he should have a score of just around 50.

(B) Validity: is a test, which helps to predict whether a person will be successful in a given job. A test that has been validated can be helpful in differentiating between prospective employees who will be able to perform the job well and those who will not.

Eg: In the figure below individuals who score 40 and above are successful employees. Those who score less than 40 are unsuccessful. The test in not absolutely accurate. A small number of workers who score below 40 are good workers. Also some applicants scoring above 40 are less successful.
20 30 40 50 60

Successful Employees

Unsuccessful Employees

Results of a validated test

(C) Objectivity: When two or more people can interpret the results of the same tests and derives the same conclusion(s), the test is said to be objective otherwise the test evaluators subjective opinions may render the test useless.

(D) Standardized: The test should be administered under standard conditions to a large group of persons who are representatives of the individuals for whom it is intended. The purpose of standardization is to obtain norms or standards, so that a specific test score can be meaningful when compared to other sources in the group.

(4) Employment Interview: The interview can be (1) one to one; (2) sequential; (3) panel interview. These can be divided into the following types:

Type Description
1. Structured A predetermined checklist of questions usually asked of all applicants
2. Unstructured Questions are made up during the interview.
3. Mixed A combination of structured and unstructured questions. This is mostly practiced.
4. Behavioral Questions limited to hypothetical situations. Evaluation is based on the solution and approach of the applicant.
5. Stress A series of harsh, rapid-fire questions intended to upset the applicant.

Common Interview Problems:
Regardless of the type, several problems are inherent in interviews. Selection specialists must be aware of these problems and need to be trained to overcome them. The problems are:
1. Interviewer often is often not aware the conditions under which the job is performed.
2. Interviewers may make snap judgments early in the interview. Consequently, they block out further potentially useful information.
3. Interviewers permit one trait or job related attribute to influence their evaluation of the remaining qualities of an applicant. This process is called the halo effect.
4. Interviewers have a tendency to be swayed by the negative information about the applicants.
5. There often is no coordination between the interviewers while taking the interview.
6. Interviewers judgments are often affected by the pressure to favour a candidate or fill the position hence they lower their judgments.
7. Interviewers judgment regarding an applicant is often affected by the list of available applicants. For instance a horse will always stand out from a group of donkeys.
8. Sex, race and attitudes similar to those of the interviewer mat lead to favorable evaluations.

Steps to avoid these problems:

1. Plan the interview
2. Establish an easy and informal relationship
3. Encourage the candidate to talk
4. Cover the ground as planned
5. Probe where necessary
6. Analyse career and interests to reveal strengths, weakness and patterns of behaviour.
7. Maintain control over the direction and time taken for the interview.
8. Always use a structured form of questions to be asked in the interview.
9. Evaluate the interviewee immediately after the interview.
10. Focus on traits accurately assessed in the interviews.
11. Get the interviewee to talk
12. Respect the reservation policy of the concerned government.

5. References and Background Checks: Many employer request names, address, and telephone numbers or references for the purpose of verifying information and, perhaps, gaining additional background information on an applicant.

6. Selection Decision: After collecting data from all the preceding steps, this is the most crucial step in the entire selection process. The main difference between the preceding stages and this is that former is used to short list the number of candidates and later one is to make a final decision from the pool of individuals who pass the tests, interviews and reference checks.
The view of line manager will be generally considered in the final selection because it is he/she who is responsible for the performance of the new employee. The HR manager plays a crucial role in the final decision.

7. Physical Examination: After the selection decision and before the job offer is made, the candidate is required to undergo a physical fitness test. The result of the medical fitness test is recorded in a statement and is preserved in the personal records. The main objectives of this test are as follows:
1. To detect if the individual carries any infectious diseases.
2. To determine whether an applicant is physically fit to perform the work.
3. It helps to determine if there are any physical capabilities which differentiate successful and less successful employees.
4. Medical check up protects applicants with health defects from undertaking work that could be detrimental to them or might otherwise endanger the employer’s property.
5. Last, but not the least such examination will protect the employer from workers compensation claims that are not valid because the injuries or illness was present when the employee was hired.

8. Job Offer: The next step in selection process is Job offer for those applicants who had passed previous stages. Job offer is made through a letter of appointment. Such letter usually contains the date by which the appointee must report on duty. Appointee must be given a reasonable time for reporting because it may be quite possible that appointee is employed in some other company or must be residing in some other city and for such other reasons. Company may also want the appointee to delay in joining the job because the job may require undergoing some training program.
Decency demands that rejected applicants must be informed about their non-selection. These applicants’ data must be used for future references.

9. Contracts Of Employment: After the job offer is made and the candidates accept the offer, certain documents need to be executed by the employer and the candidate. One such document is Attestation Form. This form contains vital details about the candidate, which are authenticated and attested by him/her, which could be used for future reference.
Another document is Contract of Employment. This document contains the Terms and Conditions of employment like designation, perks, term of job and so on. The information written in the contract may vary according to the level of the job.
The main drawback of the contract is that it is difficult to enforce them.

10. Concluding the selection Process: The selection process will not end with executing the employment contract. The step is reassuring the candidates who have not been selected. Such candidates must be told that they were not selected, not because of any serious deficiencies in their personalities, but because their profiles did not match the requirements of the organisation.

11. Evaluation of selection process: The broad test if the effectiveness of the selection process is the quality of the personnel hired. An organization must have competent and committed personnel. The selection process, if properly done, will ensure avability of such employees. How to evaluate the effectiveness of a selection programme? A periodic audit is the answer. Audit must be conducted by the people who work independent of the HR department.


The main objective of selection is to hire people who have competence and commitment. This objective is often defeated due to certain barriers. The barriers to effective selection are:

Perception: The inability to understand others is the most fundamental barrier in selecting the right candidate. Selection demands an individual or a group of people to assess the respective competencies of others with the aim of choosing the right person for the job. But their personal bias may affect their judgement. For example their likes and dislikes about a persons hairstyle, dress etc. may make them change their decision.

 Projection: Error of projection arises when an interviewer expects his own knowledge ,skills and values in a candidate. Therefore he is likely to select candidates who resemble him.

Constant error : Such error arises because the interview of previous candidate unduly influence the interviewer in favour or against the candidate. For instance, a qualified candidate may be underrated because the previous candidate was very brilliant.

Leniency: it implies the tendency to assign high scores. It is normally associated with lack of confidence and interest in rating. This may arise due to exaggerated expectation , lack of contact with people and generally rigid personality.

 Fairness: Selection requires that no individual should be discriminated on the basis of race, religion, region or gender. But the low number of female employees, discrimination on the basis of age proves the efforts to minimize inequity have not been very effective.

Validity: Validity is supposed to help in predicting the job performance of an incumbent. A validated test helps in differentiating between the employees who will perform and who will not. However it is not an accurate performance and only increases the possibility of success.

Reliability: A reliable method is one that will produce consistent results when repeated in similar situations. But such method may have varying results. A reliable test may fail to predict job performance with precision. It is more to do with consistency.

 Pressures: Politicians, bureaucrats, relatives, and friends of the candidate bring pressure on the selectors. Candidates selected due to such compulsions are not the right ones. Such selections are more in case of public sector undertakings.


360 degree selection or Participative selection: In this method subordinates participate in the selection of their co-workers and supervisors. The idea is that such participation will improve quality, increase support for the selected supervisors and co-workers and improve employee morale. For example for the selection of a sales manger, assistant sales manger will also take part in the selection process along with the hr manager.

Employee leasing: The client company leases employees from a third party, not on temporary basis but on a full time basis and for long help. An interesting feature is that the client company need not perform personnel activities such as hiring compensation or record keeping. Employees working elsewhere are leased. They are not directly employed by the company where they are working. Employees not recruited by one client is sent to another.

Selection in India

Conditions of labour market largely determine the selection process. We have a strange paradox in our country. On one hand there is large-scale unemployment and on the other hand there is shortage of skilled labour. At one place we have ‘no vacancy boards and at other places we have ‘wanted employees’ boards. Unemployment is more among people who do not have specific skills. Corruption and influence is used in hiring such employees. Selection is therefore not systematic and at times bizarre in India


Orientation is basically a training given to employee before they start working in the organization
It is a programme develop to provide information to employee so that he could able to work comfortably and efficiently in the organisation.

A formal defination of orientation is “…planned introduction of employees to their jobs,their coworkers and the organisation.”

Purpose of orientation

Purpose of orientation is to reduce the anxiety level and to increase the comfort level so that employee work comfortably . this will make them approach their colleague ,their senior with out hesitation and this will definitely bind them as a team and the aim of organisation ie. growth is achieved because of it.

Orientation could be of a day ,weeks, depending on the organisation

Orientation Programme

Formal or informal

In case of formal orientation the programme is very much structured . it is very systematic way . Everything in programme is lays down previously and the flow is very much according to that
This is done when you are hiring an executive.

In case of informal the orientation programme is very much unstuctured . this actually gives a big room for creativity which is the basic aim of such orientation

Individual or collective

As the name suggest individual is orienting one at a time while collective is orienting a group as a whole.
Individual is both time consuming and expensive than collective.
In case of of high level jobs or for say some specialised jobs company provides individual orientation while in case of low or middle level its generally collective.
Moreover a small company prefer an individual orientation as they hire very few staff at a time.

Serial or Disjunctive

In case of serial an experinced employee gives training to new employee .Here the new employee look at senior one as role model , as a benchmark and try to follow him . While in case of Disjunctive there is no predecessor to guide him
Each has its own advantages and disadvantages. In case of serial the new employee act and follw the experienced one which lead to consistency in delivery mechanism but one of the biggest shortfall is there is no room for creativity .
In case of Disjunctive though there is high room for creativity but when every try to adopt its own unique way then in extreme case there is no coordination and the overall objective of company is lost

Investiture or Divestiture

The company decide whether to maintain or dismantle new hires position .
In case of investiture the company seeks to benefit from the new hire. This happens in case of high level appointees and company gives the freedom to him or her to change the environment like furniture , give him the choice to select a team anything which effects his or her performance.

In case of Divestiture the organisation mould the employee according to its work culture. This is done to seek better fit between new member and orgnisation Divestiture strategies are followed for inducing hires into military , proffesional footbal , police academy. The premise behind divestiture strategy is to dismantle the old mindset of the new member so that instilling a new set of norms and values becomes easy.


1)Prepare for new employee

2)Determine information new employee wants to know

3)Determine how to present information

4)Completion of paper work


‘Placement’ is a process of placing the right people in the right place so as to obtain the maximum benefit. The process is fully dependent on specialization so as the right person is placed at the right job to avoid any wastage of valuable resources in the organization. It is usually carried out after orientation depending upon different companies and is considered the final step.

There are three different types of Placement techniques:

1. Individual: In this type all the emphasis is based on a particular individual as his actions are not dependent on anyone and he is solely responsible for the outcome of the results. Such type of individuals is placed in salesmanship, giving deliveries of goods and services.

2. Assembly line: in this type the one particular individual is depended on the work carried out by the people ahead of him or after him. Everyone shares the outcomes responsibility as the work is carried out in a sequential process. Eg: the coordination between the different department in the organizations.

3. Pooled: In the type a group is formed and a particular project is given and the project is to be carried out by the entire group and it is held responsible for its outcome. This is one of the most practiced forms in the organization.

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Re: Total in detail about Training & Development - April 14th, 2009

thanks, its good information....................
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Re: Total in detail about Training & Development - September 26th, 2009

Wow the whole process in detail. This is a comprehensive data. keep up the good work

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Re: Total in detail about Training & Development - February 4th, 2010

this is a great help to al of usssssssssssssssssssssssss keep it up
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Re: Total in detail about Training & Development - October 26th, 2011

thanks...good information...

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