1.

Training process

Step # 1. Identifying Training Needs:

Training need is a difference between standard performance and actual performance. Hence,
it tries to bridge the gap between standard performance and actual performance. The gap
clearly underlines the need for training of employees. Hence, under this phase, the gap is
identified in order to assess the training needs.
Step # 2. Establish Specific Objectives:
After the identification of training needs, the most crucial task is to determine the objectives
of training. Hence, the primary purpose of training should focus to bridge the gap between
standard performance and actual performance. This can be done through setting training
objectives. Thus, basic objective of training is to bring proper match between man and the
job.
Step # 3. Select Appropriate Methods:
Training methods are desired means of attaining training objectives. After the determination
of training needs and specification of objectives, an appropriate training method is to be
identified and selected to achieve the stated objectives. There are number of training methods
available but their suitability is judged as per the need of organizational training needs.
Step # 4. Implement Programs:
After the selection of an appropriate method, the actual functioning takes place. Under this
step, the prepared plans and programs are implemented to get the desired output. Under it,
employees are trained to develop for better performance of organizational activities.
Step # 5. Evaluate Program:
It consists of an evaluation of various aspects of training in order to know whether the
training program was effective. In other words, it refers to the training utility in terms of
effect of training on employees’ performance.
Step # 6. Feedback:
Finally, a feedback mechanism is created in order to identify the weak areas in the training
program and improve the same in future. For this purpose, information relating to class room,
food, lodging etc., are obtained from participants. The obtained information, then, evaluated,
and analyzed in order to mark weak areas of training programs and for future improvements.

2. Training Need Analysis

Definition: Training Needs Analysis (TNA) is the process in which the company identifies
training and development needs of its employees so that they can do their job effectively. It
involves a complete analysis of training needs required at various levels of the organisation.
Description: Technology is changing at a very fast pace and so are the training and
development needs of employees. It helps in grooming employees for the next level. It helps
the manager to identify key development areas of his/her employees. With proper training
and development, the productivity increases manifold.
Various companies have in-house experts who can train employees on various aspects of the
business. Normally, a calendar is worked out in advance in which various sessions are listed
out and which employees can pick their business requirement to enhance personal
development needs.
At times companies also send employees for various training programs outside the
organisation to train in technical know-how or a course which would be relevant to their job
profile. TNA is usually part of the appraisal process and at the end of the year an employee
has to complete all the training and development needs identified by the manager.
Training and development, which was at some point in time was not given much weightage,
is now a crucial part for any company to meet its broad goals and objectives. There are many
aspects when managers are identifying training needs of their team members.
Firstly, the managers need to identify what skill set is required to complete the job or the
process. Second, is to assess existing skill levels of the team members, and lastly, determine
the training gap.
Training gap is defined as the difference between the skills required to complete the job and
existing skill set of any particular team member.

3. Training methods

Methods of Training: On-the-job Training Method and Off-the-Job Methods

Management development is a systematic process of growth and development by which the
managers develop their abilities to manage. It is concerned with not only improving the
performance of managers but also giving them opportunities for growth and development.

There are two methods through which managers can improve their knowledge and skills. One
is through formal training and other is through on the job experiences. On the job training is
very important since real learning takes place only when one practices what they have
studied. But it is also equally important in gaining knowledge through classroom learning.
Learning becomes fruitful only when theory is combined with practice. Therefore on the job
methods can be balanced with classroom training methods (off-the-job methods).

1. On-the-job Training (OJT) Methods:

This is the most common method of training in which a trainee is placed on a specific job and
taught the skills and knowledge necessary to perform it.

The advantages of OJT are as follows:

 On the job method is a flexible method.
 It is a less expensive method.
 The trainee is highly motivated and encouraged to learn.
 Much arrangement for the training is not required.

On-the-job training methods are as follows:

1. Job rotation:
This training method involves movement of trainee from one job to another gain knowledge
and experience from different job assignments. This method helps the trainee understand the
problems of other employees.

2. Coaching:
Under this method, the trainee is placed under a particular supervisor who functions as a
coach in training and provides feedback to the trainee. Sometimes the trainee may not get an
opportunity to express his ideas.

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

4. Committee assignments:
A group of trainees are asked to solve a given organizational problem by discussing the
problem. This helps to improve team work.

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

2. Off-the-job Methods:
On the job training methods have their own limitations, and in order to have the overall
development of employee’s off-the-job training can also be imparted. The methods of
training which are adopted for the development of employees away from the field of the job
are known as off-the-job methods.

The following are some of the off-the-job techniques:

1. Case study method:

Usually, case study deals with any problem confronted by a business which can be solved by
an employee. The trainee is given an opportunity to analyse the case and come out with all
possible solutions. This method can enhance analytic and critical thinking of an employee.

2. Incident method:
Incidents are prepared on the basis of actual situations which happened in different
organizations and each employee in the training group is asked to make decisions as if it is a
real-life situation. Later on, the entire group discusses the incident and takes decisions related
to the incident on the basis of individual and group decisions.

3. Role play:
In this case also a problem situation is simulated asking the employee to assume the role of a
particular person in the situation. The participant interacts with other participants assuming
different roles. The whole play will be recorded and trainee gets an opportunity to examine
their own performance.

4. In-basket method:
The employees are given information about an imaginary company, its activities and
products, HR employed and all data related to the firm. The trainee (employee under training)
has to make notes, delegate tasks and prepare schedules within a specified time. This can
develop situational judgments and quick decision making skills of employees.
5. Business games:
According to this method the trainees are divided into groups and each group has to discuss
about various activities and functions of an imaginary organization. They will discuss and
decide about various subjects like production, promotion, pricing etc. This gives result in co-
operative decision making process.

6. Grid training:
It is a continuous and phased programme lasting for six years. It includes phases of planning
development, implementation and evaluation. The grid takes into consideration parameters
like concern for people and concern for people.

7. Lectures:
This will be a suitable method when the numbers of trainees are quite large. Lectures can be
very much helpful in explaining the concepts and principles very clearly, and face to face
interaction is very much possible.

8. Simulation:
Under this method an imaginary situation is created and trainees are asked to act on it. For
e.g., assuming the role of a marketing manager solving the marketing problems or creating a
new strategy etc.

9. Management education:
At present universities and management institutes gives great emphasis on management
education. For e.g., Mumbai University has started bachelors and postgraduate degree in
Management. Many management Institutes provide not only degrees but also hands on
experience having collaboration with business concerns.

10. Conferences:
A meeting of several people to discuss any subject is called conference. Each participant
contributes by analyzing and discussing various issues related to the topic. Everyone can
express their own view point.

4. Designing training program

The process of designing a training program is not an easy task. Many problems occur in the
process of designing a training program. Some of the common problems are; creating training
that does not support a business goal, problems that training cannot fix, how to identify the
purpose of a training program, and sometimes all of these things.

So, how to create an effective training program for the employees? Below are the five steps
that will help you to create a more effective training program:

Step 1: Perform a Training Needs Assessment

The assessment of a training program has four-step to be followed:

 Identifying the business goal that can be supported by a training program.

 Determining the tasks that workers should perform to make the company reach its
goals.
 Conducting the training activities that will help in enhancing the learning of the
workers to perform the tasks more effectively.
 Determining the learning characteristics of the workers that will make the training
effective.

Step 2: Develop Learning Objectives

A learning objective address things that your employees can get to know like:

 What is the product flow?

 How to maintain the product flow cycle?
 Importance of good product lifecycle.
Step 3: Design Training Materials

While designing your materials, keep the following points in mind:

 Focus on the learning needs of your employees.

 Create training assessments that can directly relate to the learning objectives.
 Remember the adult learning philosophies.
 Include more hands-on practice or simulation as possible.
 Put the employees in control of the learning process.
 Do possible thing to let the employees talk and interact with the trainer and with each
other while attending the training.
 Make sure there is plenty of opportunity for opinions.
 Break your training materials into small pieces that are easier to understand.
 Use “blended learning” approach that includes training in various types.
 Appeal to your workers’ senses during the training.

Step 4: Implement the Training

Implementation can take different forms by moving forward to the training. It can be
classroom instructions, the completion of e-learning modules, or more.

Step 5: Evaluate the Training

This method involves evaluating the training at four levels. Those four levels of evaluation
are:

 Employees’ reaction to training.

 Employees’ learning through the training.
 Employee’s job behaviour post-training.
 Beneficial business results.

5. Career planning and development

Career Planning
A career is defined as a sequence of jobs in a person’s life. Career planning is defined as the
process of extensively planning your career goals, your abilities, and assessing your
opportunities. For instance, if your career goal is to become a scientist in NASA you will
have to map out a plan to get there. Career planning and development is an important part of
growing professionally and in a systematic manner. In other words, it can be said that career
planning is the process of determining which professional route is most suited to your
personality, interests, and goals. If you currently have a job that you enjoy, you may utilize
the career planning process to create short- and long-term objectives for what you want to
accomplish in the next five, ten, or twenty years. You might also consider your alternatives
and decide to change careers.

Career Development
Career development is an ongoing process. Once you have set certain goals for yourself you
can start working on career management. Career development can help you keep track of
where you see yourself in your career trajectory in order to achieve growth, sustainability,
new skills, constant learning in your career, career planning, and development.

Objectives of Career Planning and Development

The following are the primary goals of career planning and development:

 Employees’ favorable attributes must be identified.

 To raise awareness of each employee’s uniqueness.
 Recruiting skilled personnel for the company.
 Employees should be trained in team-building skills.
 To develop appropriate coping mechanisms for dealing with disputes, emotions, and
stress.
 To respect the feelings of other employees.

6. Potential appraisal

Potential Appraisal – meaning

The potential appraisal is made up of two words viz. potential and appraisal. Potential means
the abilities of an employee which are required for meeting the challenges of future
assignments while appraisal means the evaluation of that abilities in present status of an
employee.
Thus, potential appraisal is the process of evaluation of the abilities of an employees that uses
by employee in the future assignments. It is different from performance appraisal and needs
to be carried out at regular intervals. The potential appraisal refers to the appraisal involving
identification of the hidden talents and skills of a person. The person might or might not be
aware of them.

The basic objectives of potential appraisal are to:

1. Identify the abilities of an employee in order to evaluate whether that employee is suitable
for future assignments or otherwise, and
2. Occupy higher positions in the organizational hierarchy and undertake higher
responsibilities because past performance may not be a good indicator for future and higher
role.
3. Inform employees about their future roles;
4. Make suitable corrections in training efforts from time to time;
5. Inform employees about they must do something for their career prospects;
6. Help organization for suitable succession plan;
7. Improve quality and quantity of performance of an employee; and
8. Give proper feedback to the employees for their potential.

The mechanisms that could be used for potential appraisal are discussed below:
(i) Rating by Superior – The potential of a candidate could be rated by the immediate
supervisor who is acquainted with the candidate’s work and also his technical capabilities.
(ii) Psychological Tests – Managerial and behavioural dimensions can be measured through a
battery of psychological tests.
(iii) Games – Simulation games and exercises (assessment centre, business games, in-basked,
role play, etc.) could be used to uncover the potential of the candidate.
(iv) Performance Records – Performance records and ratings of the candidate on his previous
jobs could be examined carefully on various dimensions such as initiative, creativity, risk-
taking ability, etc., which might play a key role in discharging his duties in a new job.

7. Employee compensation
What is Compensation and Benefits in HRM?
Compensation and Benefits in HRM refer to the salary, monetary, and as well as non-
monetary privileges provided to the employees at the workplace by the organization. It is a
primary tool of the Human Resource Managers to bring out the best potential of the
employees in their work. It works in a way – ‘Better is the compensation & benefits, better is
the performances and retention!’ From internal motivation to the higher level of productivity,
Compensation and Benefits does it all!

Companies with better Compensation and Benefits plans are on the verge of stealing your
employees because workers always look to switch to the organization’s having better salary
structures, compensation, and other benefits like health insurance. Everything related to the
company’s work culture and benefit plans can be easily found online, especially Glassdoor.
Each experience faced by employees from monetary to non-monetary terms is present in
online reviews about the company.

Also, such information helps employees weigh the pros and cons of working with the
company, which leads to their decision-making about joining the company by evaluating the
online data. Henceforth, the new talent can either get attracted or distracted by seeing those
reviews online. The more you keep your internal employees happy with the reasonable
Compensation and Benefits programs, the more good word of mouth they will spread for
your company.

In general Human Resource terms, compensation is the benefit the employee receives in
rewards for exchanging the service he has provided to the organization.

According to Dale Yoder, – ‘Compensation and benefits simply mean paying people for
completing the task allocated to them.’

According to Cascio, – ‘The term compensation signifies paying the direct cash amounts or
an indirect amount via providing benefits to employees to strive for higher productivity in the
organization.’
Compensation plays a significant role in Human Resource Management to boost the overall
performance and effectiveness of the employees working in the organization. Compensation
is at the heart center of every company! Like heartbeat is one of the primary components for
human survival, benefits availed via settlement keep employees survive or retain for the long
term in the companies. It usually motivates employees in various unseen ways, reinforcing
them to provide more than 100% effort to earn more and more such rewards. Providing
compensation to the breadwinners in the organizations has been in practice for years now in
the industries today.

Objectives of Compensation and Benefits

The employer’s and employees’ views are pretty different concerning compensation and
benefits. The employers want to pay the amount as minimum as they can to save the
company’s cost. On the other hand, the employees want to get as much as they can.
Therefore, the objectives of the compensation management are formulated for addressing and
fulfilling the needs of the employers and the employees to come to a common point.

Multiple objectives are associated with Compensation and Benefits. Understand all of
them one by one below:

o Control the incurring costs of the organization.

o Follow the labor laws or wage system by acknowledging the legal provisions
To bring an easy understanding of salary structure and other benefits by the
staff of the company.
o To enhance the overall motivation of an employee.

o To improve the comprehensive company’s ranking on social platforms in

terms of employee motivation and satisfaction.

o Competent compensation for reinforcing the reward winning behavior Balance

in pay structure also helps in attracting the right and creative talent.

o Long Term Retention of the employee.

o Payment must meet the employees’ overall needs and expectations in return
for the work done.
Types of Compensation
Compensation can take place on Monetary and Non-Monetary terms.

Direct Compensation
It enables the employers to make sure that employees are getting paid without any biasedness
inside the premises of an organization. All the benefits, including the employees’ salary as
well as health-related benefits, are included in this type of compensation.
It keeps the threat of ‘cost incurred loss’ away from the employer’s minds that a well-trained
employee might leave the organization to the competition.

Multiple Monetary forms of compensation include the following

1. Bonus
2. Employee rewards and recognition
3. Commission on sales
4. Sharing of profits
5. Paying for working overtime

Indirect Compensation
Indirect compensation indirectly motivates the employees. It doesn’t involve the direct
transfer of the money between the two parties. Instead, the employees are helped with
multiple other beneficial things instead of getting benefits in cash. It eventually creates a
sense of belonging and admiration by the company, keeping them away from the front of
leaving the organization.

Non-Monetary forms of compensation include:

6. Internet reimbursement
7. Mobile phone reimbursement,
8. Public recognition
9. Transfer facility
10. Promotion opportunities
11. Paid house for stay by the company, as well as
12. Company car for traveling office.
13. Free scholarship for an online courses.
 8. Determinants of compensation

Many factors go into determining the specific compensation package offered to any given
person, including external factors relating to the company’s location and market as well as
factors relating specifically to the role and the candidate in question. Some considerations
that go into calculating compensation include:

 What the company can afford to pay

 Typical salary range for similar roles in the region
 How much competitors are paying
 The local cost of living
 The role—if it is a highly-skilled job, it may require higher compensation
 The candidate, their qualifications, and their compensation expectations
 Whether or not it is appropriate to use incentive compensation management, which is
a type of compensation usually used for sales roles in which the person’s
compensation is tied to their performance outcomes