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Unit 5 staffing

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Unit 5 staffing

  1. 1. 3-1STAFFINGProf. Preeti BhaskarProf. Preeti BhaskarSymbiosis Centre for Management studies,Symbiosis Centre for Management studies,NoidaNoida
  2. 2. 3-2CHAPTER OUTLINECHAPTER OUTLINE Meaning, need and importance of staffing Steps in staffing process Recruitment- meaning and resources Selection-meaning and process Training and Development Compensation and incentives
  3. 3. 3-3StaffingStaffing It is concerned with the Human resources ofthe enterprise. It is concerned with acquiring, developing,utilizing, and maintaining human resources. It is a process of matching jobs withindividuals to ensure right man for the rightjob.
  4. 4. 3-4Definition of StaffingDefinition of StaffingAccording to Koontz and O’ Donnel“The managerial functions of staffing involvesmanning the organizational structure throughproper and effective selection, appraisal anddevelopment of personnel to fill the rolesdesigned in to the structure”
  5. 5. 3-5Importance of staffingImportance of staffing Discovering and obtaining competent employeesfor various job. Improve the quantity and quality of output byputting right man for right job. Improves job satisfaction of employees Reduces cost of personnel by avoiding wastage ofhuman resource.
  6. 6. 3-6Steps in staffingSteps in staffing
  7. 7. 3-7Step –Step –11Manpower PlanningManpower Planning
  8. 8. 3-8Step – 1 Manpower Planning/ HRPStep – 1 Manpower Planning/ HRPDetermine the requirements of the employeesA. Types of Employees (Job Analysis)B. No. of EmployeesManpower Planning Process
  9. 9. 3-9Analyzing the current manpower inventoryAnalyzing the current manpower inventoryBefore a manager makes forecast of future manpower, thecurrent manpower status has to be analyzed.For this the following things have to be noted-Type oforganizationNumber of departmentsNumber and quantity of such departmentsEmployees in these work unitsOnce these factors are registered by a manager, he goes forthe future forecasting.
  10. 10. 3-10Manpower forecasting techniquesManpower forecasting techniquesExpert Forecasts: This includes informal decisions, formal expertsurveys and Delphi technique.Trend Analysis: Manpower needs can be projected throughextrapolation (projecting past trends), indexation (using base yearas basis), and statistical analysis (central tendency measure).Work Load Analysis: It is dependent upon the nature of work loadin a department, in a branch or in a division.Work Force Analysis: Whenever production and time period hasto be analysed, due allowances have to be made for getting netmanpower requirements.Other methods: Several Mathematical models, with the aid ofcomputers are used to forecast manpower needs, like budget andplanning analysis, regression, new venture analysis.
  11. 11. 3-11Developing employment programs-Developing employment programs-Once the current inventory is compared with futureforecasts, the employment programs can be framedand developed accordingly, which will includerecruitment, selection procedures andplacement plans.
  12. 12. 3-12Design training programs-Design training programs-These will be based upon extent of diversification,expansion plans, development programs etc.Training programs depend upon the extent ofimprovement in technology and advancement totake place. It is also done to improve upon theskills, capabilities, knowledge of the workers.
  13. 13. 3-13Step –Step –22RecruitmentRecruitment
  14. 14. 3-14Step – 2 RecruitmentStep – 2 RecruitmentAccording to Flippo “Recruitment is the process of attractingpotential employees and stimulating them to apply for the jobs in theorganization.”Certain influences, however, restrain a firm while choosing arecruiting source such as: Poor image Unattractive job Conservative internal policies Limited budgetary support Restrictive policies of government
  15. 15. 3-15Sources of RecruitmentSources of Recruitment The sources of recruitment may broadly bedivided into various categories: internal sourcesand external sources and third partyExternalSourcesInternalSourcesSourcesofRecruitment
  16. 16. 3-16Internal sources External SourcesTransfers Factory gate hiringPromotions Unsolicited applicantsEmployee referrals Job portals (monster.com, naukri.com)Lay-off University or institute campusCirculars Public Employment exchangeNotification Labour contractorsExtension of services Head huntersInformal Search InternshipsEmployment Agencies/ ConsultanciesPoaching / RaidingE-RecruitmentInternshipsOutsourcingWalk-in InterviewsAdvertisementTele recruiting
  17. 17. 3-17Internal MethodInternal Method Promotions and transfers:Promotion is the movement of an employee from a lower level position to a higher levelposition with increase in salaryTransfer, on the other hand, is a lateral movement within the same grade, from one job toanother. Job posting: It is a method of publicizing job openings on bulletin boards,electronic media and similar outlets by a company. Employee referrals: It is a kind of recommendation from a current employeeregarding a job applicant. Lay-off : Lay-off refers to the temporary separation of employee from theorganization .Recalling the lay off candidates to fill the vacant position
  18. 18. 3-18External RecruitmentExternal RecruitmentMeritsWide choice: The organization has the freedomto select candidates from a large pool. Personswith requisite qualifications could be picked up.Injection of fresh blood: People with specialskills and knowledge could be hired to stir up theexisting employees and pave the way forinnovative ways of working.Motivational force: It helps in motivatinginternal employees to work hard and competewith external candidates while seeking careergrowth. Such a competitive atmosphere wouldhelp an employee to work to the best of hisabilities.Long term benefits: Talented people could jointhe ranks, new ideas could find meaningfulexpression, a competitive atmosphere wouldcompel people to give of their best and earnrewards, etc.DemeritsExpensive: Hiring costs could go upsubstantially. Tapping multifarious sources ofrecruitment is not an easy task, either.Time consuming: It takes time to advertise,screen, to test and to select suitable employees.Where suitable ones are not available, the processhas to be repeated.Demotivating: Existing employees who haveput in considerable service may resist the processof filling up vacancies from outside. The feelingthat their services have not been recognized bythe organization, forces them to work with lessenthusiasm and motivation.Uncertainty: There is no guarantee that theorganization, ultimately, will be able to hire theservices of suitable candidates. It may end uphiring someone who does not ‘fit’ and who maynot be able to adjust in the new set-up.
  19. 19. 3-19Internal RecruitmentInternal RecruitmentMeritsEconomical: The cost of recruitinginternal candidates is minimal. No expensesare incurred on advertising.Suitable: The organization can pick theright candidates having the requisite skills.The candidates can choose a right vacancywhere their talents can be fully utilized.Reliable: The organization has knowledgeabout the suitability of a candidate for aposition. ‘Known devils are better thanunknown angels!Satisfying: A policy of preferring peoplefrom within offers regular promotionalavenues for employees. It motivates them towork hard and earn promotions. They willwork with loyalty, commitment andenthusiasm.DemeritsExpensive: Hiring costs could go upsubstantially. Tapping multifarious sources ofrecruitment is not an easy task, either.Time consuming: It takes time to advertise,screen, to test and to select suitable employees.Where suitable ones are not available, the processhas to be repeated.Demotivating: Existing employees who haveput in considerable service may resist the processof filling up vacancies from outside. The feelingthat their services have not been recognized bythe organization, forces them to work with lessenthusiasm and motivation.Uncertainty: There is no guarantee that theorganization , ultimately, will be able to hire theservices of suitable candidates. It may end uphiring someone who does not ‘fit’ and who maynot be able to adjust in the new set-up.
  20. 20. 3-20Alternatives to recruitingAlternatives to recruiting Overtime Subcontracting Temporary employees Employee leasing Outsourcing
  21. 21. 3-21 Overtime: Short term fluctuations in work volume could best be solved through overtime. Theemployer benefits because the costs of recruitment, selection and training could be avoided. Theemployee benefits in the form of higher pay. However, an overworked employee may prove to be lessproductive and turn out less than optimal performance. Employees may slow down their pace of workduring normal working hours in order to earn overtime daily. In course of time, overtime paymentsbecome quite routine and if, for any reason, these payments do not accrue regularly, employeesbecome resentful and disgruntled. Subcontracting: To meet a sudden increase in demand for its products and services, the firm maysometimes go for subcontracting – instead of expanding capacities immediately. Expansion becomesa reality only when the firm experiences increased demand for its products for a specified period oftime. Meanwhile, the firm can meet increased demand by allowing an outside specialist agency toundertake part of the work, to mutual advantage. Temporary employees: Employees hired for a limited time to perform a specific job arecalled temporary employees. They are particularly useful in meeting short term humanresource needs. A short term increase in demand could be met by hiring temporary handsfrom agencies specialising in providing such services. It’s a big business idea in UnitedStates these days ($3-$4 billion industry). In this case the firm can avoid the expenses ofrecruitment and the painful effects of absenteeism, labour turnover, etc. It can also avoidfringe benefits associated with regular employment. However, temporary workers do notremain loyal to the company; they may take more time to adjust and their inexperience maycome in the way of maintaining high quality.
  22. 22. 3-22 Employee leasing: Hiring permanent employees of another company who possesscertain specialised skills on lease basis to meet short-term requirements – althoughnot popular in India – is another recruiting practice followed by firms in developedcountries. In this case, individuals work for the leasing firm as per the leasingagreement/arrangement. Such an arrangement is beneficial to small firms because itavoids expense and problems of personnel administration. Outsourcing: Any activity in which a firm lacks internal expertise and requires onunbiased opinion can be outsourced. Many businesses have started looking atoutsourcing activities relating to recruitment, training, payroll processing, surveys,benchmark studies, statutory compliance etc., more closely, because they do nothave the time or expertise to deal with the situation. HR heads are no longer keepingactivities like resume management and candidate sourcing in their daily scrutiny.This function is more commonly outsourced when firms are in seasonal business andhave cyclical stuffing needs
  23. 23. 3-23Recruitment: Indian ExperiencesRecruitment: Indian Experiences Pepsi:Pepsi is a flat organisation. There are a maximum of fourreporting levels. Executives here emphasise achievement,motivation, the ability to deliver come what may. As thePersonnel Manager of Pepsi Foods remarked “we hirepeople who are capable of growing the business rather thanjust growing with the business”. Recruitees must be capableof thinking outside the box, cutting the cake of conventionalbarriers whenever and wherever necessary. They musthave a winner’s mindset and a passion for creating adynamic change. They must have the ability to deal withambiguity and informality.
  24. 24. 3-24 Reebok:As Reebok’s customers are young, the company places emphasis onyouth. The average age at Reebok is 26 years. Employees are expectedto have a passion for the fitness business and reflect the company’saspirations. Recruitees should be willing to do all kinds of job operations.The willingness to get one’s hands dirty is important. They must alsohave an ability to cope with informality, a flat organisation and be able totake decisions independently and perform consistently with their clearlydefined goals. Indian HotelsThe Taj group expects the job aspirants to stay with the organisationpatiently and rise with the company. Employees must be willing to say‘yes sir’ to anybody. Other criteria include: communication skills, theability to work long and stressful hours, mobility, attention to personalappearance and assertiveness without aggression.
  25. 25. 3-25Step – 3Step – 3SELECTIONSELECTION
  26. 26. 3-26SELECTIONSELECTIONSelection is the process of pickingindividuals who have relevantqualifications to fill jobs in anorganization.Selection is much more than justchoosing the best candidate. It is anattempt to strike a happy balancebetween what the applicant can andwants to do and what the organizationrequires.According to Weihirch andKoontz,”Selecting manager ischoosing among thecandidates the one who bestmeet the positionrequirements.”
  27. 27. 3-27Selection is usually a series of hurdles or steps. Each one must be successfullycleared before the applicant proceeds to the nextSteps in theSelection Process
  28. 28. 3-28Selection ProcessSelection Process ReceptionA warm, friendly and courteous reception is extended to candidates with aview to create a favorable impression. Employment possibilities are alsocommunicated honestly and clearly Screening interviewThe HR department tries to screen out the obvious misfits through thiscourtesy interview. A prescribed application form is given to candidateswho are found to be suitable. Application blankIt is a printed form completed by job aspirants detailing their educationalbackground, previous work history and certain personal data.
  29. 29. 3-29Contents Of Application BlankContents Of Application Blank Personal data (address, sex, identification marks) Marital data (single or married, children, dependents) Physical data (height, weight, health condition) Educational data (levels of formal education, marks, distinctions) Employment data (past experience, promotions, nature of duties,reasons for leaving previous jobs, salary drawn, etc.) Extra-curricular activities data (sports/games, NSS, NCC, prizeswon, leisure-time activities) References (names of two or more people who certify the suitabilityof an applicant to the advertised position)
  30. 30. 3-30N a m e : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _A d d r e s s : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _P h o n e N u m b e r ( R e s ) : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _E d u c a t i o nC o l l e g e / U n i v e r s i t y A t t e n d e d : _ _ _ _ _ _ _ _ _ _ _ _ H i g h e s t D e g r e e ( a ) B A / B S c / M A / M S c / M B A / M C o m( b ) B E / B T e c h / M T e c h( c ) A n y o t h e rH i g h S c h o o l A t t e n d e d : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _W o r k E x p e r i e n c e ( L i s t m o s t r e c e n t j o b s f i r s t )N a m e o f t h e O r g a n i s a t i o n :G r o s s S a l a r y : _ _ _ _ _ _ _ _ _ _ _ _ _ _ ( a n n u a l ; b e s u r e t o i n c l u d e a n y b o n u s e s o r c o m m i s s i o n e a r n e d )J o b T i t l e : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _N a m e o f L a s t S u p e r v i s o r : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _M a y w e c o n t a c t t h i s s u p e r v i s o r ? Y e s / N oR e a s o n ( s ) f o r L e a v i n g : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _N a m e o f O r g a n i s a t i o n : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ D a t e o f E m p l o y m e n t : _ _ _ _ _ _ _ f r o m t o _ _ _ _G r o s s S a l a r y : _ _ _ _ _ _ _ _ _ _ _ ( a n n u a l ; b e s u r e t o i n c l u d e a n y b o n u s e s o r c o m m i s s i o n e a r n e d )J o b T i t l e : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _N a m e o f L a s t S u p e r v i s o r : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _M a y w e c o n t a c t t h i s s u p e r v i s o r ? Y e s / N oR e a s o n ( s ) f o r L e a v i n g : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _N a m e o f O r g a n i s a t i o n : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ D a t e o f E m p l o y m e n t : _ _ _ _ _ _ _ f r o m t o _ _ _ _G r o s s S a l a r y : _ _ _ _ _ _ _ _ _ _ _ ( a n n u a l ; b e s u r e t o i n c l u d e a n y b o n u s e s o r c o m m i s s i o n e a r n e d )J o b T i t l e : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _N a m e o f L a s t S u p e r v i s o r : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _M a y w e c o n t a c t t h i s s u p e r v i s o r ? Y e s / N oR e a s o n ( s ) f o r L e a v i n g : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _W o r k s k i l l s1 . L i s t a n y j o b - r e l a t e d l a n g u a g e s y o u a r e a b l e t o s p e a k o r w r i t e : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _2 . L i s t a n y j o b - r e l a t e d c l e r i c a l ( e . g . , t y p i n g ) o r t e c h n i c a l s k i l l s ( e . g . , c o m p u t e r p r o g r a m m i n g ) t h a t y o uh a v e :A . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ B . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _C . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _A d d i t i o n a l I n f o r m a t i o nI n c a s e o f a n e m e r g e n c y , p l e a s e c o n t a c t .N a m e : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _A d d r e s s : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _T e l e p h o n e : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _I u n d e r s t a n d t h a t f a l s i f i c a t i o n o f i n f o r m a t i o n i s g r o u n d s f o r d i s m i s s a l .I u n d e r s t a n d t h a t m y e m p l o y m e n t a t t h e c o m p a n y m a y b e d i s c o n t i n u e d a t a n y t i m e f o r a n y r e a s o ne i t h e r b y m y s e l f o r b y t h e c o m p a n y .I a g r e e t o s u b m i t t o a d r u g a n d / o r a l c o h o l t e s t a s a c o n d i t i o n o f e m p l o y m e n t .S i g n a t u r e D a t e
  31. 31. 3-31SELECTION TESTINGSELECTION TESTING A test is a standardized, objective measure of asample of behaviour. Selection tests are increasingly used bycompanies these days because they measureindividual differences in a scientific way, leavingvery little room for Individual bias.
  32. 32. 3-32Selection TestsSelection Tests Intelligence test Aptitude test Personality test Projective test Interest test Preference test Achievement test Simulation test Assessment centre The leaderless groupdiscussion Business games Individualpresentations
  33. 33. 3-33A. Intelligence tests: They measure a candidate’s learning ability andalso the ability to understand instructions and make judgements. Theydo not measure any single trait but several mental abilities (memory,vocabulary, fluency, numerical ability, perception etc)B. Aptitude tests: They measure a candidate’s potential to learn clerical,mechanical and mathematical skills. Since they do not measure acandidate’s on the job motivation, they are generally administered incombination with other tests.C. Achievement tests: These are designed to measure what theapplicant can do on the job currently, ir., whether the testee actuallyknows what he or she claims to know.D. Simulation tests: Simulation exercise is a test which duplicatesmany of the activities and problems an employee faces while at work.
  34. 34. 3-34E. Personality tests: They measure basic aspects of a candidate’spersonality such as motivation, emotional balance, self confidence,interpersonal behaviour, introversion etc. Projective tests: These tests expect the candidates to interpretproblems or situations based on their own motives, attitudes, valuesetc (interpreting a picture, reacting to a situation etc) Interest tests: These are meant to find how a person in testscompares with the interests of successful people in a specific job.These tests show the areas of work in which a person is mostinterested. Preference tests: These tests try to compare employeepreferences with the job and organizational requirements.F. Assessment centre: It is a standardized form of employeeappraisal that uses multiple assessment exercisessuch as in basket, games, role play etc and multiple
  35. 35. 3-35SelectionSelection PracticesPractices Of Global GiantsOf Global Giants1. Siemens India: It uses extensive psychometric instruments to evaluate short-listed candidates. The company uses occupational personality questionnaire tounderstand the candidate’s personal attributes and occupational testing to measurecompetencies.2. LG Electronics India: LG Electronics uses 3 psychometric tests to measure aperson’s ability as a team player, to check personality types and to ascertain aperson’s responsiveness and assertiveness.3. Arthur Anderson: While evaluating candidates, the company conducts criticalbehavioural interviewing which evaluates the suitability of the candidate for theposition, largely based on his past experience and credentials.4. Pepsico India: The company uses India as a global recruitment resource. Toselect professionals for global careers with it, the company uses a competency-based interviewing technique that looks at the candidate’s abilities in terms ofstrategising, lateral thinking, problem solving, managing the environment. Theseapart, Pepsi insists that to succeed in a global posting, these individuals possessstrong functional knowledge and come from a cosmopolitan background.
  36. 36. 3-36Types Of SelectionTypes Of SelectionInterviewsInterviews The nondirective interview: the recruiter asks questions as they cometo mind The directive or structured interview: the recruiter uses apredetermined set of Questions that are clearly job-related The situational interview: the recruiter presents a hypothetical incidentand asks The candidate to respond The behavioural interview: the focus here is on actual work relatedincidents and The applicant is supposed to reveal what he or she did in agiven situation Stress interview: the recruiter attempts to find how applicants wouldrespond to Aggressive, embarrassing, rule and insulting (at times)questions The panel interview: three or four interviewers pose questions to theapplicant and Examine the suitability of the candidate
  37. 37. 3-37Medical ExaminationMedical Examination To check the physical fitness for the jobconcerned . To protect the organization from infectiousdisease
  38. 38. 3-38Reference CheckingReference Checking Contacting previous employers of a job applicantto determine his or her job history. Referencecheck may also include checking with school(s)or college(s) attended by the applicant to verifyeducational qualifications.
  39. 39. 3-39Hiring decisionHiring decision?
  40. 40. 3-40Basis Recruitment SelectionMeaning Recruitment is the process of searchingthe candidates for employment andstimulating them to apply for jobs in theorganizationselection involves the series of steps by whichthe candidates arescreened for choosing the most suitable personsfor vacant posts.Purpose to create a talent pool of candidates toenable the selection ofbest candidates for the organization, byattracting more and more employees toapply in the organizationto choose the right candidate tofill the various positions in the organization.Process Recruitment is a positive process i.e.encouraging more and more employees toapplyselection is a negative process as it involvesrejection of the unsuitable candidates.Contract There is no contract of recruitmentestablished in recruitmentselection results in a contract of servicebetween the employer and the selectedemployee.Cost Factor Recruitment is not expensive. It mostlyinvolves only advertisement cost.Selection is very costly. This is because a lot ofmoney is spent on conducting different types oftests, interviews, medical examinations, etc.Similarly, the experts who conduct selectionprocedure are paid very high fees. This makesselection a very costly process
  41. 41. 3-41Step –Step –44OrientationOrientation
  42. 42. 3-42OrientationOrientation Orientation employees are made awareabout the mission and vision of the organization,the nature of operation of the organization,policies and programs of the organization. The main aim of conducting Orientation isto build up confidence, morale and trust of theemployee in the new organization, so that he becomes a productive and anefficient employee of the organization and contributes to theorganizational success. The nature of Orientation program varies with the organizational size, i.e.,smaller the organization the more informal is the Orientation and largerthe organization more formalized is the Orientation program.
  43. 43. 3-43Types of OrientationTypes of OrientationOrientation program includes-Familiarize and Introduce the companyEmployee’s layoutType of organizational structureDepartmental goalsOrganizational layoutGeneral rules and regulationsStanding OrdersGrievance system or procedureSpecific OrientationGeneral Orientation
  44. 44. 3-44Step –Step – 55TRAININGTRAININGANDANDDEVELOPMENTDEVELOPMENT
  45. 45. 3-45TRAININGTRAININGAcc. to Michael Armstrong “the systematic development ofknowledge, skills and attitudes required by an individualto perform adequately a given task of job”.Acc. to Dale S. Beach, “Training is the act of increasingknowledge and skills of an employee for doing aparticular job.”
  46. 46. 3-46Training & DevelopmentTraining & DevelopmentTRAINING Training – Top Level Training – Lower Level&DEVELOPMENT
  47. 47. 3-47DEVELOPMENTDEVELOPMENTDevelopment relates to the development and growth ofthe employees in an organization through a systematicprocess. It helps in the developments of the intellectual,managerial, and people management skills of managers.It trains managers to understand and analyze differentsituations, and to arrive at and implement the correctsolutions.
  48. 48. 3-48OBJECTIVES OF TRAINING:OBJECTIVES OF TRAINING:1. To impart the basic knowledge and skill to thenew entrants and enable them to perform theirjobs well.2. To equip the employee to meet the changingrequirements of the job and the organization.
  49. 49. 3-49Training Need and Importance of TrainingTraining Need and Importance of TrainingTraining is given on four basic grounds:New candidates who join an organization are given training. This trainingfamiliarize them with the organizational mission, vision, rules and regulations andthe working conditions.The existing employees are trained to refresh and enhance their knowledge.If any updations and amendments take place in technology, training is given tocope up with those changes. For instance, purchasing a new equipment, changes intechnique of production, computer implantment. The employees are trained aboutuse of new equipments and work methods.When promotion and career growth becomes important. Training is given so thatemployees are prepared to share the responsibilities of the higher level job.
  50. 50. 3-50BENEFITS OF TRAININGBENEFITS OF TRAININGImproving Employee PerformanceUpdating Employee SkillsAvoiding Managerial ObsolescencePreparing for Promotion and Managerial SuccessionRetaining and Motivating EmployeeCreating an Efficient and Effective OrganizationImproves morale of employeesLess supervisionFewer accidentsChances of promotion.Increased productivity
  51. 51. 3-51Methods of TrainingMethods of TrainingCase Study MethodIncident Analysis MethodLecture MethodRole Playing Method
  52. 52. 3-52Ways/Methods of TrainingWays/Methods of Training On the job training-On the job training methods are those which are given to the employeeswithin the everyday working of a concern. It is a simple and cost-effectivetraining method. The employees are trained in actual working scenario.The motto of such training is “learning by doing.” Off the job training-Off the job training methods are those in which training is provided awayfrom the actual working condition.It is generally used in case of new employees. Instances of off the jobtraining methods are workshops, seminars, conferences, etc. Such methodis costly and is effective if and only if large number of employees have tobe trained within a short time period
  53. 53. 3-53Simulation ExercisesSimulation ExercisesA. Case study:- Case studies which are prepared based on theactual experiences of organizations, help the candidates thereal problems faced by managers in organizations.B. Business Games:- The trainees are divided into differentgroups or teams. They play the roles of competing firms ina simulated market.C. Role Playing:- Participants enact roles to solve problemsthat are common in real-life situations.D. Incident Method:- This method aims to develop theintellectual ability, practical judgment and socialawareness of the employee. Each employee is given awritten incident which he analyzes, identifies the problemsand the probable causes and suggests solution.E. In-basket Method:- This method simulates the importantaspects of a manager’s job. Candidate is given documentssimilar to the items normally found in a manager’s in-basket, such as memo’s , letters, and reports.
  54. 54. 3-54DIFFERENCE b/w TRAINING &DIFFERENCE b/w TRAINING &DEVELOPMENTDEVELOPMENTLEARNINGDIMENSIONSTRAINING DEVELOPMENTWHO? NON-MANAGERS MANAGERSWHAT? TECHNICAL-MECHANICALOPERATIONSTHEORETICAL-CONCEPTUAL IDEASWHEN? SPECIFIC JOB RELATEDINFORMATIONGENERAL KNOWLEDGEWHY? SHORT TERM LONG RUN
  55. 55. 3-55Step –Step – 66CompensationCompensation
  56. 56. 3-56A Definition . . .A Definition . . . All forms offinancial return,Non-financialIncentives that employees receive aspart of their employmentrelationshipCash, Bonuses, Insurance,Cash, Bonuses, Insurance,Vacation, HolidaysVacation, HolidaysPerks, RecognitionPerks, Recognition
  57. 57. 3-57WagesWagesA wage is a sum of money paid under contract byan employer to a worker for services renderedBenhamTime WagePaymentmethodIncentivewage paymentmethodPiece wagePaymentMethodMethods
  58. 58. 3-58Factors that Influence Wage LevelsFactors that Influence Wage LevelsWAGEMIXConditions ofLabor MarketArea WageRatesCost ofLivingCollectiveBargainingLegalRequirementsCompensationPolicy ofOrganizationWorth ofJobEmployee’sRelative WorthEmployer’sAbility to Pay
  59. 59. 3-59Time WagePaymentmethodIncentivewage paymentmethodPiece wagePaymentMethodMethodsWage = Time * rateWage = Time * rate Wage =No. of Units * rate per unitWage =No. of Units * rate per unitFinancial =•Profit sharing•Co partnership•Commission•BonusNon-Financial =•Job security•Promotion•Praise & recognitionFinancial =•Profit sharing•Co partnership•Commission•BonusNon-Financial =•Job security•Promotion•Praise & recognition
  60. 60. 3-60FinancialFinancial Directwages, salaries, commissions, bonuses Indirectinsurance plans life, health, dental, disabilitysocial assistance benefits retirement plans, social security, workers’ comppaid absences vacations, holidays, sick leave
  61. 61. 3-61INCENTIVESINCENTIVESBASED COMPENSATIONBASED COMPENSATION Incentives are monetary benefits paid to workmenin recognition of their outstanding performance. They are defined as variable rewards grantedaccording to variations in the achievement ofspecific results.
  62. 62. 3-62Advantages of Incentive basedcompensations1. Incentives are important for inducement andmotivation of workers for higher efficiency andgreater output.2.Employee earnings go up3.Enhanced standard of livings of employees4.Reduction in total unit cost of production,5.Productivity increases.7.Reduced supervision
  63. 63. 3-63Step –Step – 77PerformancePerformanceevaluation andevaluation andAppraisalAppraisal
  64. 64. 3-64Performance AppraisalPerformance Appraisal“Performance Appraisal is an objectiveassessment of an individual’s performanceagainst well defined benchmarks.”
  65. 65. 3-65Performance AppraisalPerformance AppraisalKey Points Evaluation ComparisonActual v/s. Standards Results Rewards Corrective Action
  66. 66. 3-66Use of Performance AppraisalsUse of Performance Appraisals1.Promotions2.Confirmations3.Training and Development4.Compensation reviews5.Competency building6.Improve communication7.Evaluation of HR Programs8.Feedback & Grievances
  67. 67. 3-67Objective of Performance AppraisalObjective of Performance Appraisal To effect promotions based on competence and performance To confirm the services of probationary employees upon theircompleting the probationary period satisfactorily. To assess the training and development needs of employees. To decide upon a pay raise where regular pay scales have notbeen fixed
  68. 68. 3-68Contd…Contd… To let the employees know where they stand insofar astheir performance is concerned and to assist them withconstructive criticism and guidance for the purpose oftheir development. Finally, PA can be used to determine whether HRprograms such as selection, training, and transfers havebeen effective or not. To improve communication. PA provides a format fordialogue between the superior and the subordinate, andimproves understanding of personal goals andconcerns.
  69. 69. 3-69

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