Module 5:- Staffing

Staffing as a Management Function:

After an organization's structural design is in place, it needs people with the right skills,
knowledge, and abilities to fill in that structure. People are an organization's most important
resource, because people either create or undermine an organization's reputation for quality in
both products and service.

In addition, an organization must respond to change effectively in order to remain competitive.

The right staff can carry an organization through a period of change and ensure its future
success. Because of the importance of hiring and maintaining a committed and competent staff,
effective human resource management is crucial to the success of all organizations.

Human resource management (HRM), or staffing, is the management function devoted to

acquiring, training, appraising, and compensating employees. In effect, all managers are human
resource managers, although human resource specialists may perform some of these activities
in large organizations. Solid HRM practices can mold a company's workforce into a motivated
and committed team capable of managing change effectively and achieving the organizational
objectives.

What is HRM?
Human Resource Management ("HRM") is a way of management that links people-related
activities to the strategy of a business or organisation. HRM is often referred to as "strategic
HRM".
It has several goals:
- To meet the needs of the business and management (rather than just serve the
interests of employees);
- To link human resource strategies / policies to the business goals and objectives;
- To find ways for human resources to "add value" to a business;
- To help a business gain the commitment of employees to its values, goals and
objectives
The link between Human Resources and Business Strategy:
All elements of the business strategy have implications for human resources, as illustrated in
the table below. The challenge for management is to identify and respond to these HR
challenges:

Examples of Key Strategy Issues Possible Human Resource Implications

What markets should the business What expertise is required in these markets? Do
compete in? existing management and employees have the
right experience and skills
Where the business should be located Where do we need our people? How many do we
to compete optimally? need?

How can we achieve improvements in How productive is the workforce currently? How
our unit production costs to remain does this compare with competitors? What
competitive? investment in the workforce (e.g. training,
recruitment) and their equipment is required to
achieve the desired improvement in
productivity?
How can the business effect cultural What are the current values of the workforce.
change? How can the prevailing culture be
influenced/changed to help implement a change
programme?
How can the business respond to rapid What technological skills does the business
technological change in its markets? currently possess? What additional skills are
needed to respond to technological change? Can
these skills be acquired through training or do
they need to be recruited?

An important part of HRM is the Human Resources Plan. The purpose of this plan is to analyse
the strategic requirements of the business in terms of manpower - and then to find a way of
meeting the required demand for labour. This is the subject of a separate revision note.

Human resource planning:

The first step in the staffing process involves human resource planning. Human resource
planning begins with a job analysis in which descriptions of all jobs (tasks) and the qualifications
needed for each position are developed.

A job description is a written statement of what a jobholder does, how it's done, and why it's
done. It typically portrays job content, environment, and conditions of employment. The job
specification states the minimum acceptable qualifications an incumbent must possess to
perform a given job successfully. It identifies the knowledge, skills, and abilities needed to do
the job effectively.
Job analysis is then followed by a human resource inventory, which catalogs qualifications and
interests. Next, a human resource forecast is developed to predict the organization's future
needs for jobs and people based on its strategic plans and normal attrition. The forecast is then
compared to the inventory to determine whether the organization's staffing needs will be met
with existing personnel or whether managers will have to recruit new employees or terminate
existing ones.

HUMAN RESOURCE MANAGEMENT - WORKFORCE PLANNING

Objective of Workforce Planning:

Workforce planning is one of the most important activities in a business.
It starts with analysis of the strategic position of the business. The results of this analysis then
feed into a forecast of the required demand for labour by the business and how this is likely to
be supplied. The final stage involves the creation and implementation of a human resources
plan which aims to deliver the right number of the right people for the business.

How strategy feeds into the workforce plan:

The strategic position and needs of the business have the most important influence on
workforce planning: for example:
 Labour environment: what is happening to the size of the labour force? What key
population and employment trends (e.g. the increasing number of women seeking part-
time work; increasing numbers of people working on temporary or short-term
contracts) affect the ability of the business to recruit staff? What provision needs to be
made for employee pensions (particularly in the light of falling stock market values);
what employment legislation
 Business objectives and scope of activities: what are the objectives of each business
unit? What products are to be sold, in which markets; using what kind of distribution?
 Business location - where is the business located? How are the various business units,
divisions, functions distributed across the various locations? What specialist skills are
essential in each location? What are the workforce implications of decisions on business
location?
 Timetables - to what extent does the strategic needs of the business require short-term
changes in the workforce - or can change be achieved over a longer period. For
example, are new retailing or distribution locations to be opened in the next 12 months
that require staff?
Forecasting Workforce Demand:
Putting a good Human Resources plan together requires a business to make a reasonably
accurate forecast of workforce size.
Key factors to consider in this forecast are:
- Demand for existing and new products
- Business disposals and product closures
- Introduction of new technology (e.g. new production equipment)
- Cost reduction programmes (most usually involve a reduction in staff numbers
somewhere within the business)
- Changes to the business organisational structure
- Business acquisitions, joint ventures, strategic partnerships

Forecasting Workforce Supply

The starting point for estimating supply is the existing workforce: a business should take
account of:
- Scheduled changes to the composition of the existing workforce (e.g. promotions; job
rotation)
- Normal loss of workforce - e.g. through retirement, "normal" labour turnover
- Potential exceptional factors - e.g. actions of competitors that create problems of staff
retention
By comparing the forecast workforce demand and supply - it is possible to compile a forecast of
net workforce size. This then needs to be compared with the strategic requirements for the
business. The result is the "workforce gap" (which be a forecast of too few or too many
workers). The role of HRM is to close the gap!

HRM - Policies to Close the Workforce Gap

The key HRM activities to manage the workforce gap comprise:
- Recruitment plans (how many people, where, what type, how)
- Training plans
- Redundancy plans
- Staff Retention Plans (how the business intends to keep the staff it wants to retain)

What is recruitment?
Recruitment is an important part of a business' human resource planning.
In all businesses, people are a vital resource - and they need to be managed as such.
The overall aim of the recruitment and selection process is to obtain the number and quality of
employees that are required in order for the business to achieve its objectives.
There are three main stages in recruitment:
(1) Identify and define the requirements. This involves the preparation of job
descriptions, job specifications and person specifications
(2) Attract potential employees - there are various methods for doing this - which are
described in a separate revision note
(3) Select and employ the appropriate people from the job applicants
It is important to appreciate that recruitment is a continuous process - because of:
- Staff departures (e.g. retirements, sackings, resignations)
- Changes in business requirements (e.g. new products, markets, expanded operations)
- Changes in business location (a relocation often triggers the need for substantial recruitment)
- Promotions

Recruitment is becoming more and more important in business. In particular, this reflects the
increasing need for a well-motivated and flexible workforce that requires less management
supervision.

Recruitment - Job Analysis

The management of a business need to determine what work needs to be done. Job analysis is
a key part of this need. Job analysis concentrates on what job holders are expected to do. It
provides the basis for a job description, which in turn influences decisions taken on
recruitment, training, performance appraisal and reward systems.

What is contained in a job analysis?

A job analysis would typically contain:

Job purpose What is the job meant to do - and how does this related to other parts
of the business?
Job content Duties and responsibilities
Accountabilities What results / outputs is the job holder responsible for?
Performance criteria How will the job holder's performance be measured?
Resource requirements E.g. equipment, location

How is a job analysis carried out?

Several techniques should be used to complete an effective job analysis:
- Research business documents - e.g. procedures manuals
- Ask relevant managers about the requirements and purpose of the job; what are the
key activities; what relationships does the job have with other posts. Develop a
comprehensive profile through these discussions
- Interview the existing job holder (if the job already exists) -e.g. ask store managers in
retail stores and build a profile from asking those who actually do the job
- Observe the job holders to see what they really do
The key information that needs to be collected includes:
- Job title
- Main duties and tasks
- Targets and performance standards that the job holder is required to achieve
- The amount of supervision that is normally given / freedom of decision-making in
the job
- Skills and/or qualifications needed for the job (including personal skills)
What is a job description?
A job description sets out the purpose of a job, where the job fits into the organisation
structure, the main accountabilities and responsibilities of the job and the key tasks to be
performed.

Why is a job description important?

A job description has four main uses:
Organisation - it defines where the job is positioned in the organisation structure. Who
reports to whom?
Recruitment - it provides essential information to potential recruits (and the recruiting
team) so that they can determine the right kind of person to do the job (see person
specification)
Legal - the job description forms an important part of the legally-binding contract of
employment
Appraisal of performance - individual objectives can be set based on the job description

Contents of a Job Description:

The main contents of a job description are:
- Job Title: this indicates the role/function that the job plays within an organization, and the
level of job within that function (e.g. Finance Director would be a more senior position
than Financial Accountant - although both jobs are in the "finance department")
- Reporting responsibilities: who is the immediate boss of the job holder?
- Subordinates; who reports directly TO the job holder?
- Main purpose - who is involved in the job overall
- Main tasks and accountabilities: description of the main activities to be undertaken and
what the job holder is expected to achieve (e.g. in the case of the Management
Accountant, this might include "Complete monthly management accounts by 10th working
day of each month and prepare report on all key performance variances")
- Employment conditions
The sources of recruitment are broadly divided into internal sources and external sources
consisting of the following:

SOURCES OF RECRUITMENT

Internal sources of Recruitment:

 Present Permanent Employees : Organizations consider the candidates from this source
for higher level of jobs due to availability of most suitable candidates for jobs relatively or
equally to external sources, to meet the trade union demands and due to the policy of the
organization to motivate the present employees.
 Present temporary/casual Employees: Organizations find this source to fill the vacancies
relatively at the lower level owing to the availability of suitable candidates or trade union
pressures or in order to motivate them on present job.
 Retrenched or Retired Employees: Employees retrenched due to lack of work are given
employment by the organization due to obligation, trade union pressure etc. Sometimes
they are re-employed by the organization as a token of their loyalty to the organization or
to postpone some interpersonal conflicts for promotion.
 Dependents of Deceased, Disabled, retired and present employees: Some organizations
function with a view to developing the commitment and loyalty of not only the employee
but also his family members.
 Employee Referrals: Present employees are well aware of the qualifications, attitudes,
experience and emotions of their friends and relatives. They are also aware of the job
requirements and organizational culture of their company. As such they can make
preliminary judgment regarding the match between the job and their friends and relatives.
Merits of Internal Sources of Recruitment
 Motivates present employees when they are upgraded internally.
 Retrenched workers get an opportunity to work again.
 Dependents of the deceased get a job easily
 Morale of employees is improved
 Loyalty, commitment, security of present employees can be enhanced
 Cost of recruitment, training, induction, orientation, etc is reduced
 Trade unions can be satisfied.

Demerits of Internal Sources of Recruitment

 Trade union pressure may not always give the right candidate for the job. The
management may have to consider some concessions.
 Management’s gets a chance to postpone promotion due to interpersonal conflicts.
 Excessive dependence on this source results in in-breeding, discourages flow of new
blood into the organization.
 The organization becomes dull without innovations, new ideas, excellence and
expertise.

External Sources of Recruitment

 Campus Recruitment: These candidates are directly recruited by the Co; from their
college/educational institution. They are inexperienced as far as work experience is
concerned.
 Private Employment Agencies/Consultants: Public employment agencies or consultants
like ABC Consultants in India perform recruitment functions on behalf of a client
company by charging fees. Line managers are relieved from recruitment functions and
can concentrate on operational activities.
 Public Employment Exchanges: The Government set up Public Employment Exchanges
in the country to provide information about vacancies to the candidates and to help the
organization in finding out suitable candidates. As per the Employment Exchange act
1959, makes it obligatory for public sector and private sector enterprises inIndia to fill
certain types of vacancies through public employment exchanges.
 Professional Organizations: Professional organizations or associations maintain
complete bio-data of their members and provide the same to various organizations on
requisition. They act as an exchange between their members and recruiting firm.
 Data Banks: The management can collect the bio-data of the candidates from different
sources like Employment Exchange, Educational Training Institutes, candidates etc and
feed them in the computer. It will become another source and the co can get the
particulars as and when required.
 Casual Applicants: Depending on the image of the organization its prompt response
participation of the organization in the local activities, level of unemployment,
candidates apply casually for jobs through mail or handover the application in the
Personnel dept. This would be a suitable source for temporary and lower level jobs.
  Similar Organizations: Generally experienced candidates are available in organizations
producing similar products or are engaged in similar business. The Management can get
potential candidates from this source.
 Trade Unions: Generally unemployed or underemployed persons or employees seeking
change in employment put a word to the trade union leaders with a view to getting
suitable employment due to latter rapport with the management.
 Walk In: The busy organization and rapid changing companies do not find time to
perform various functions of recruitment. Therefore they advise the potential
candidates to attend for an interview directly and without a prior application on a
specified date, time and at a specified place.
 Consult In: the busy and dynamic companies encourage the potential job seekers to
approach them personally and consult them regarding the jobs. The companies select
the suitable candidates and advise the company regarding the filling up of the positions.
Head hunters are also called search consultants.
 Body Shopping: Professional organizations and the hi-tech training develop the pool of
human resource for the possible employment. The prospective employers contact these
organizations to recruit the candidates. Otherwise the organizations themselves
approach the prospective employers to place their human resources. These professional
and training institutions are called body shoppers and these activities are known as
body shopping. The body shopping is used mostly for computer professionals. Body
shopping is also known as employee leasing activity.
 Mergers and Acquisitions: Business alliances like acquisitions, mergers and take over
help in getting human resources. In addition the companies do also alliances in sharing
their human resource on adhoc basis.
 E_recruitment: The technological revolution in telecommunications helped the
organizations to use internet as a source of recruitment. Organizations advertise the job
vacancies through the world wide wed (www). The job seekers send their applications
through e-mail using the internet.
 Outsourcing: Some organizations recently started developing human resource pool by
employing the candidates for them. These organizations do not utilize the human
resources; instead they supply HRs to various companies based on their needs on
temporary or ad-hoc basis.
Merits of External Sources of Recruitment
 The candidates with skill, knowledge talent etc is generally available.
 Cost of employees can be minimized.
 Expertise, excellence and experience in other organizations can be easily brought into
the organization.
 Existing sources will also broaden their personality.
 Human Resource mix can be balanced
 Qualitative human resource benefits the organization in the long run.
 Reduction in time for recruitment
 Increase in the selection ratio i.e. recruiting more candidates.
 HR professionals can concentrate on strategic issues.
Demerits of External Sources of Recruitment
 Campus recruited employees may lack work experience.
 Cost of recruitment is high and there is no confidentiality.
 Specified vacancies have to be filled by candidates referred by employment exchanges
which do not allow other candidates to be eligible.

Selection Process:-
Having the right people on staff is crucial to the success of an organization. Various selection
devices help employers predict which applicants will be successful if hired. These devices aim to
be not only valid, but also reliable. Validity is proof that the relationship between the selection
device and some relevant job criterion exists. Reliability is an indicator that the device measures
the same thing consistently. For example, it would be appropriate to give a keyboarding test to
a candidate applying for a job as an administrative assistant. However, it would not be valid to
give a keyboarding test to a candidate for a job as a physical education teacher. If a keyboarding
test is given to the same individual on two separate occasions, the results should be similar. To
be effective predictors, a selection device must possess an acceptable level of consistency.

Application forms:
For most employers, the application form is the first step in the selection process. Application
forms provide a record of salient information about applicants for positions, and also furnish
data for personnel research. Interviewers may use responses from the application for follow-up
questions during an interview.

These forms range from requests for basic information, such as names, addresses, and
telephone numbers, to comprehensive personal history profiles detailing applicants' education,
job experience skills, and accomplishments.

Managers should make sure that their application forms do not ask questions that are
irrelevant to job success, or these questions may create an adverse impact on protected
groups. For example, employers should not ask whether an applicant rents or owns his or her
own home, because an applicant's response may adversely affect his or her chances at the job.
Minorities and women may be less likely to own a home, and home ownership is probably
unrelated to job performance. On the other hand, asking about the CA exam for an accounting
position is appropriate, even if only one-half of all female or minority applicants have taken the
exam versus nine-tenths of male applicants.
Testing:
Testing is another method of selecting competent future employees. These tests must be valid
and reliable. A manager needs to make sure that the test measures only job-relevant
dimensions of applicants.

Most tests focus on specific job-related aptitudes and skills, such as math or motor skills.
Typical types of exams include the following:
 Integrity tests measure factors such as dependability, carefulness, responsibility, and
honesty. These tests are used to learn about the attitudes of applicants toward a variety
of job-related subjects. Since the passage of the Employee Polygraph Protection Act in
1988, polygraph (lie detector) tests have been effectively banned in employment
situations. In their place, attitude tests are being used to assess attitudes about honesty
and, presumably, on-the-job behaviors.
 Personality tests measure personality or temperament. These tests are among the least
reliable. Personality tests are problematic and not very valid, because little or no
relationship exists between personality and performance.
 Knowledge tests are more reliable than personality tests because they measure an
applicant's comprehension or knowledge of a subject. A math test for an accountant
and a weather test for a pilot are examples. Human relations specialists must be able to
demonstrate that the test reflects the knowledge needed to perform the job. For
example, a teacher hired to teach math should not be given a keyboarding test.
 Performance simulation tests are increasing in popularity. Based on job analysis data,
they more easily meet the requirement of job relatedness than written tests.
Performance simulation tests are made up of actual job behaviors. The best-known
performance simulation test is known as work sampling, and other credible simulation
processes are performed at assessment centers.
 An assessment is a selection technique that examines candidates' handling of simulated
job situations and evaluates a candidate's potential by observing his or her performance
in experiential activities designed to simulate daily work.
o Assessment centers, where work sampling is often completed, utilize line
executives, supervisors, or trained psychologists to evaluate candidates as they
go through exercises that simulate real problems that these candidates would
confront on their jobs. Activities may include interviews, problem-solving
exercises, group discussions, and business-decision games. Assessment centers
have consistently demonstrated results that accurately predict later job
performance in managerial positions.
o Work sampling is an effort to create a miniature replica of a job, giving
applicants the chance to demonstrate that they possess the necessary talents by
actually doing the tasks.
Interviews:
Another widely used selection technique is the interview, a formal, in-depth conversation
conducted to evaluate an applicant's acceptability. In general, the interviewer seeks to answer
three broad questions:
1. Can the applicant do the job?
2. Will the applicant do the job?
3. How does the applicant compare with others who are being considered for the job?
Interviews are popular because of their flexibility. They can be adapted to unskilled, skilled,
managerial, and staff employees. They also allow a two-way exchange of information where
interviewers can learn about the applicant and the applicant can learn about the employer.
Interviews do have some shortcomings, however. The most noticeable flaws are in the areas of
reliability and validity. Good reliability means that the interpretation of the interview results
does not vary from interviewer to interviewer. Reliability is improved when identical questions
are asked. The validity of interviews is often questionable because few departments use
standardized questions.
Managers can boost the reliability and validity of selection interviews by planning the
interviews, establishing rapport, closing the interview with time for questions, and reviewing
the interview as soon as possible after its conclusion.

Types of Selection Interview

Type Type of Questions Application
Structured A predetermined checklist of Used for valid results
questions, usually asked to all especially when dealing with
applicants. It is also called large number of applications
guided interview
Unstructured Few, if any, planned Useful when interviewer is
questions. Questions are trying to probe personal
made up during the interview. details of the candidate to
Also, called unguided analyse why they are right for
interview the job
Mixed A combination of structured A realistic approach that yield
and unstructured questions, comparable answers plus in-
which resembles, what is depth insights.
usually done in practice
Behavioral Questions are limited to Useful to understand
hypothetical situations. applicant’s reasoning and
Evaluation is based on the analytical abilities under
solution and approach of the modest stress.
applicant.
Stressful A series of harsh, rapid fire Useful for stressful jobs such
questions intended to upset as handling customer
the applicant complaints.
Other selection techniques:-
Reference checking and health exams are two other important selection techniques that help in
the staffing decision.
 Reference checking allows employers to verify information supplied by the candidate.
However, obtaining information about potential candidates is often difficult because of
privacy laws and employer concerns about defamation lawsuits.
 Health exams identify health problems that increase absenteeism and accidents, as well
as detecting diseases that may be unknown to the applicant.

Training - Introduction
Training and personal development is an important method for a business to improve the
performance of employees.

Training starts with a strategy:

It is important that a business provides training that is consistent with the business strategy.
The main steps in developing a training strategy are to:
- Identify the skills and abilities needed by employees;
- Draw up an action plan to show how investment in training and development will help meet
business goals and objectives;
- Implement the plan, monitoring progress and training effectiveness

Benefits of training to a business:

The main benefits to a business of a well-trained workforce are:
- Better productivity (and, therefore, lower production / operating costs)
- Higher quality
- More flexibility - training helps employees develop a variety of skills. Multi-skilling is
only possible if the workforce is well trained
- Less supervision - lower supervision and management costs if employees can get on
with their jobs. This might also improve motivation - through greater empowerment
- More successful recruitment and employee retention - businesses with a good
reputation for training are likely to find it easier to attract good quality staff - and then
keep them
- Help in achieving change - businesses with strong training systems and culture find it
easier to implement change programmes

What training cannot solve

it is tempting to think that training is the solution to many if not all business problems.
However, there are some things that training can rarely solve: these include:
- Poor management (although management training might help!)
- Poor job design
- Ineffective or inefficient equipment, production organisation
- Recruitment
If training is so important, why do some businesses invest so little in it?
Ideally training should be seen as an investment in the future of the business. it takes time for
the effects of training to impact business performance.
Some businesses are reluctant to spend on training because:
- They fear employees will be poached by competitors (who will then benefit from the training)
- A desire to minimise short-term costs
- They cannot make a justifiable investment case

Orientation and Training Programs:

Once employees are selected, they must be prepared to do their jobs, which is when
orientation and training come in. Orientation means providing new employees with basic
information about the employer. Training programs are used to ensure that the new employee
has the basic knowledge required to perform the job satisfactorily.

Orientation and training programs are important components in the processes of developing a
committed and flexible high-potential workforce and socializing new employees. In addition,
these programs can save employers money, providing big returns to an organization, because
an organization that invests money to train its employees results in both the employees and the
organization enjoying the dividends.

Unfortunately, orientation and training programs are often overlooked. A recent U.S. study, for
example, found that 57 percent of employers reported that although employees' skill
requirements had increased over a three-year period, only 20 percent of employees were fully
proficient in their jobs.

Orientation
Orientation programs not only improve the rate at which employees are able to perform their
jobs but also help employees satisfy their personal desires to feel they are part of the
organization's social fabric. The HR department generally orients newcomers to broad
organizational issues and fringe benefits. Supervisors complete the orientation process by
introducing new employees to coworkers and others involved in the job. A buddy or mentor
may be assigned to continue the process.

Training needs
Simply hiring and placing employees in jobs does not ensure their success. In fact, even tenured
employees may need training, because of changes in the business environment. Here are some
changes that may signal that current employees need training:
 Introduction of new equipment or processes
 A change in the employee's job responsibilities
 A drop in an employee's productivity or in the quality of output
 An increase in safety violations or accidents
 An increased number of questions
 Complaints by customers or coworkers
Once managers decide that their employees need training, these managers need to develop
clear training goals that outline anticipated results. These managers must also be able to clearly
communicate these goals to employees.

Keep in mind that training is only one response to a performance problem. If the problem is
lack of motivation, a poorly designed job, or an external condition (such as a family problem),
training is not likely to offer much help.

Types of training
After specific training goals have been established, training sessions should be scheduled to
provide the employee an opportunity to meet his or her goals. The following are typical training
programs provided by employers:

 Basic literacy training. Ninety million American adults have limited literacy skills, and
about 40 million can read little or not at all. Because most workplace demands require a
tenth- or eleventh-grade reading level (and about 20 percent of Americans between the
ages of 21 and 25 can't read at even an eighth-grade level), organizations increasingly
need to provide basic literacy training in the areas of reading and math skills to their
employees.
 Technical training. New technology and structural designs have increased the need to
upgrade and improve employees' technical skills in both white-collar and blue-collar
jobs.
 Interpersonal skills training. Most employees belong to a work team, and their work
performance depends on their abilities to effectively interact with their coworkers.
Interpersonal skills training helps employees build communication skills.
 Problem-solving training. Today's employees often work as members of self-managed
teams who are responsible for solving their own problems. Problem-solving training has
become a basic part of almost every organizational effort to introduce self-managed
teams or implement Total Quality Management (TQM).
 Diversity training. As one of the fastest growing areas of training, diversity training
increases awareness and builds cultural sensitivity skills. Awareness training tries to
create an understanding of the need for, and meaning of, managing and valuing
diversity. Skill-building training educates employees about specific cultural differences in
the workplace.
Training methods:
Most training takes place on the job due to the simplicity and lower cost of on-the-job training
methods. Two popular types of on-the-job training include the following:

 Job rotation. By assigning people to different jobs or tasks to different people on a

temporary basis, employers can add variety and expose people to the dependence that
one job has on others. Job rotation can help stimulate people to higher levels of
contributions, renew people's interest and enthusiasm, and encourage them to work
more as a team.
 Mentoring programs. A new employee frequently learns his or her job under the
guidance of a seasoned veteran. In the trades, this type of training is usually called an
apprenticeship. In white-collar jobs, it is called a coaching or mentoring relationship. In
each, the new employee works under the observation of an experienced worker.

Sometimes, training goals cannot be met through on-the-job training; the employer needs to
look to other resources. Off-the-job training can rely on outside consultants, local college
faculty, or in-house personnel. The more popular off-the-job training methods are classroom
lectures, videos, and simulation exercises. Thanks to new technologies, employers can now
facilitate some training, such as tutorials, on the employees' own computers, reducing the
overall costs.

Regardless of the method selected, effective training should be individualized. Some people
absorb information better when they read about it, others learn best by observation, and still
others learn better when they hear the information. These different learning styles are not
mutually exclusive. When training is designed around the preferred learning style of an
employee, the benefits of training are maximized because employees are able to retain more of
what they learn.

In addition to training, employers should offer development plans, which include a series of
steps that can help employees acquire skills to reach long-term goals, such as a job promotion.
Training, on the other hand, is immediate and specific to a current job.

What is induction training?

Induction training is training given to new employees. The purpose of the induction period
(which may be a few hours or a few days) is to help a new employee settle down quickly into
the job by becoming familiar with the people, the surroundings, the job and the business.
It is important to give a new employee a good impression on the first day of work. However,
the induction programme should not end there. It is also important to have a systematic
induction programme, spread out over several days, to cover all the ground in the shortest
effective time.
What induction training involves:
Usually induction involves the new employee meeting and listening to different people talk
about aspects of the business. Other methods include written information, audio visual aids
and group discussion.
The following items should be covered in an effective induction programme:
• Introduction to the business/department and its personnel/management structure
• Layout of the buildings (factory / offices)
• Terms and conditions of employment (explaining the contract of employment)
• Relevant personnel policies, such as training, promotion and health and safety
• Business rules and procedures
• Arrangements for employee involvement and communication
• Welfare and employee benefits or facilities

Training - On the Job

As the name implies, on the job training involves employees training at their place or work.
The most common methods of on the job training are:
- Demonstration / instruction; showing the trainee how to do the job
- Coaching - a more intensive method of training that involves a close working
relationship between an experienced employee and the trainee
- Job rotation - where the trainee is given several jobs in succession, to gain experience
of a wide range of activities (e.g. a graduate management trainee might spend periods
in several different departments)
- Projects - employees join a project team - which gives them exposure to other parts of
the business and allow them to take part in new activities. Most successful project
teams are "multi-disciplinary"

Advantages of on the job training

- Generally more cost effective
- Less disruptive to the business - i.e. employees are not away from work
- Training an employee in their own working environment, with equipment they are
familiar with and people they know can help they gain direct experience to a standard
approved by the employer
- Employees may find that they have more confidence if they are supervised and guided
as they feel they are doing the job right
- Employees may feel more at ease being taught or supervised by people they know
rather than complete strangers at an external training course
- Managers or supervisors can assess improvement and progress over a period of time
and this makes it easier to identify a problem intervene and resolve problems quickly
- On the job training is also productive, as the employee is still working as they are
learning
- As training progresses and the employee begins to feel more confident, this confidence
would allow them to work at a higher standard and ultimately be more productive
- Training "on-the-job" provides an opportunity to get to know staff they might not
normally talk to
Disadvantages of on the job training
- Teaching or coaching is a specialist skill in itself; unless the trainer has the skills and
knowledge to train, this would mean that the training will not be done to a sufficient
standard
- The trainer may not be given the time to spend with the employee to teach them
properly, which would mean substandard training has been achieved and learning has
only been half done
- The trainer may possess bad habits and pass these on to the trainee

Training - off the job:-

Off the job training involves employees taking training courses away from their place of work.
This is often also referred to as "formal training". Off the job training courses might be run by
the business' training department or by external providers.

The main types of off the job training courses are:

- Day release (where the employee takes time out from normal working hours to attend
a local college or training centre)
- Distance learning / evening classes
- Revision courses (e.g. in the accountancy profession, student employees are given
blocks of around 5-6 weeks off on pre-exam courses)
- Block release courses - which may involve several weeks at a local college
- Sandwich courses - where the employee spends a longer period of time at college (e.g.
six months) before returning to work
- Sponsored courses in higher education
- Self-study, computer-based training (an increasingly popular option - given that
attendance at external courses can involve heavy cost)

Advantages of off-the-job training:

- Use of specialist trainers and accommodation
- Employee can focus on the training - and not be distracted by work
- Opportunity to mix with employees from other businesses

Disadvantages of off-the-job training:

- Employee needs to be motivated to learn
- May not be directly relevant to the employee's job
- Costs (transport, course fees, examination fees, materials, accommodation)
Evaluating Employee Performance:
Employee performance should be evaluated regularly. Employees want feedback—they want to
know what their supervisors think about their work. Regular performance evaluations not only
provide feedback to employees, but also provide employees with an opportunity to correct
deficiencies. Evaluations or reviews also help in making key personnel decisions, such as the
following:

 Justifying promotions, transfers, and terminations

 Identifying training needs
 Providing feedback to employees on their performance
 Determining necessary pay adjustments

Most organizations utilize employee evaluation systems; one such system is known as a
performance appraisal. A performance appraisal is a formal, structured system designed to
measure the actual job performance of an employee against designated performance
standards. Although performance appraisals systems vary by organizations, all employee
evaluations should have the following three components:

 Specific, job-related criteria against which performance can be compared

 A rating scale that lets employees know how well they're meeting the criteria
 Objective methods, forms, and procedures to determine the rating

Traditionally, an employee's immediate boss conducts his or her performance appraisal.

However, some organizations use other devices, such as peer evaluations, self-appraisals, and
even customer evaluations, for conducting this important task.

The latest approach to performance evaluation is the use of 360-degree feedback. The 360-
degree feedback appraisal provides performance feedback from the full circle of daily contacts
that an employee may have. This method of performance appraisal fits well into organizations
that have introduced teams, employee involvement, and TQM programs.

Employee Appraisal - 360 Degree Feedback:

In the revision note on appraisal and performance review we concentrated on the assessment
of employees by managers. But how should management be assessed? After all, key
management have a vital impact on the performance of a business – and they too will have
development and training needs.
One increasingly popular method of managerial assessment is 360-degree feedback.
360-degree feedback is an assessment process used to improve managerial effectiveness by
providing the manager with a more complete assessment of their effectiveness, and their
performance and development needs. The process involves obtaining feedback from the
manager's key contacts.
These would normally include:
• The manager him/herself
• Subordinates (employees who work for the manager)
• Peers (fellow managers)
• Manager (senior management)
• Customers
• Suppliers
Feedback is normally obtained by using a questionnaire which asks participants to rate the
individual according to observed behaviours - usually managerial or business-specific
competencies. The 360-degree process will not suit all companies. You should assess how well
it would fit with your current culture before launching a scheme and a pilot scheme is worth
building into your programme. Communicating the scheme, it's purpose and benefits to all
those involved will be a key factor in reducing the participants' fears and gaining their
commitment to any new scheme. Presenting the results of the appraisal to managers in a
constructive way is critical to the success of the process. All feedback, positive and critical,
should be presented, with the aim of highlighting and acting on areas for development.
Results can be aggregated to give you some feedback on organisational strengths and
weaknesses in relation to your business objectives and training strategy

Compensating Employees:-
Employee compensation refers to all work-related payments, including wages, commissions,
insurance, and time off.

Wages and salaries are the most obvious forms of compensation and are based on job
evaluations that determine the relative values of jobs to the organization. Under the hourly
wage system, employees are paid a fixed amount for each hour they work. The system is
generally used for lower skilled occupations. Salaried employees receive a fixed sum per week
or month, no matter how many hours they work. Most professional positions are salaried; the
reality is that these jobholders typically work in excess of a “minimum” 40-hour workweek.

Some occupations are compensated through incentive pay programs. Salespeople typically
receive commissions based upon the quantities of goods they sell. Some sales compensation
plans contain elements of both a salary and commission. A production worker's pay may be
based upon some combination of an hourly wage and an incentive for each “piece” he or she
makes. Some employees are offered merit awards as a reward for sustained superior
performance.
Employee benefits are supplements to wages or pay. Some benefits, such as unemployment
and worker's compensation, are legally mandated. Other benefits are optional and help build
employee loyalty to an organization, including the following:

 Health insurance
 Pension plans
 Employee discounts
 Vacation, sick, and personal days
 Bonuses (incentive money paid to employees in addition to their regular compensation)
 Profit-sharing (money from a portion of the company profits used to supplement regular
compensation)
 Stock options (a plan that permits employees to buy shares of stock in the employee's
firm at or below the present market value)

A top management executive is given benefits unique to his or her status. Additional executive
benefits are termed perquisites (perks).