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Unit 3 (10Hours)
• TRAINING AND EXECUTIVE DEVELOPMENT - Types of training methods
purpose benefits resistance. Executive development programs –
Common practices -Benefits – Self development – Knowledge
management.
• SUSTAINING EMPLOYEE INTEREST - Compensation plan – Reward –
Motivation – Theories of motivation – Career management –
Development of mentor -Protégé relationships.
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Compensation and Benefits
• What is equality or equity
• Different reward and its components
• Determining the components
• What impact the money has in motivation for
performance
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Equity
• Relation between
performance and
reward.
• Reward is not just
pay it might be in
other terms
• IF performance not
in proportion to
reward-
Dissatisfaction
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• Absolute Pay: Total compensation that an employee receives.
• Distributive equity: What an employee gets in relation or comparison
to other employees
• Procedural equity: How the compensation is measured for an
employee. Whether reward calculation system correct?
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Factors determining compensation
RESPONSIBILITY STRATEGIC
RELEVANCE
PERFORMANCE
QUALIFICATION MARKET COMPANY
SUCCESS
COST OF LIVING CIVIL STATUS TENURE
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Total Reward
• Different factors in
deciding
components
makes it complex
• This introduces to
the concept of
components in
rewards system
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Hay system of Job evaluation
• Benchmark Job: Job which is there in most of companies –Pay surveys
• Purchase manager
• Reception
• HR department
• Specific jobs are evaluated not only by the interpretation of the factor
descriptions
• but within the context of all other jobs in the organization.
• Each of four dimensions below are measured according to duration,
intensity and frequency.
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Hay system of Job evaluation
Know how/ knowledge
‘Know How’ is defined as the "sum total of every kind of knowledge and
skill, however, acquired, needed for acceptable job performance."
There are three dimensions in know how:
• Practical procedures, specialized techniques and knowledge within
occupational fields, commercial functions, and professional and
scientific disciplines.
• Planning, organizing, coordinating, integrating, staffing, directing and
or controlling the activities and resources associated with the function
of the unit, position, section, etc.
• Face to face skills needed for various relationships with other people.
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Problem solving
‘Problem Solving’ is "the amount and nature of the thinking required in the
job in the form of analyzing, reasoning, evaluating, creating, using judgment,
forming hypotheses, drawing inferences, arriving at conclusions, etc."
There are two dimensions in problem solving:
• The environment in which the thinking takes place.
• The challenge of the thinking to be done; the novelty and complexity of the
thinking required.
Problem solving is always expressed as a percentage of know how since it
directly relates to how one uses the knowledge which he or she must have in
the job to solve the problems which are encountered as part of that job.
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• Accountability
‘Accountability’ is "the answerability for action and its consequences.
The measured effect of the job on end results in the organization."
There are three dimensions in accountability:
• "Freedom to Act" which is the extent of personal, procedural or
systematic guidance and control on the job.
• "Job Impact on End Results" which is the degree to which the job
affects or brings about the results expected of the unit or function
being considered.
• "Magnitude" is the size of the function or unit measured in the most
appropriate fashion.
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Working conditions
‘Working Conditions’ assess the environment in which the job is performed.
Working Conditions are made up of four dimensions:
• "Physical Effort" - jobs, which may require levels of physical activity, which
may produce physical, stress or fatigue.
• "Physical Environment" - jobs which may include exposure to unavoidable
physical and environmental factors which increase the risk of accident, ill
health or discomfort to the employee.
• "Sensory Attention" - jobs which may require concentrated levels of sensory
attention (i.e. seeing, hearing, smelling, tasting, touching) during the work
process.
• "Mental Stress" - refers to exposure to factors inherent in the work process
or environment, which increase the risk of such things as tension or anxiety.
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Has analysis for Job evaluation
Weightage Design Enginner Project Manager
Functional Epertise 8 7 5
Managerial skill 7 2 7
Human relation 3 1 3
Environment 5 3 5
Challenge 4 3 4
Freedom to act 7 7 7
Impact on end results 4 3 4
Magnitude 5 5 5
43 31 40
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Having Job grades defined for the job helps
form a proper compensation structure for
the organization.
So all employees are clear with the salary
expectation for a particular job grade
Compensation should be dependent on
the responsibility
Higher responsibility higher compensation
The compensation should be on
congruency to market pay
Transparency helps Shape Equity in the
firm
Discuss about different jobs and elaborate
the job values and the contribution of the
job in company's success
Compensations also dependent on Market
value of the job
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Salaries Surveys and understanding salary data charts:
Statistical unit to carry out
salary surveys -Median
Median indicates a value
of salary where half paid
higher and half paid
lower.
Average
Chart indicates Median
salary pay of fresh
graduates and Mid career.
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Variable Component of Salary Pay
Variable Pay system
Individual
Performance
Tangible Jobs
Knowledge
Jobs
Challenges
Company
performance
Revenue
Positive
Image
Growth
Invention/Creativity
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Why companies offer benefits- Attracting ,Retaining and motivating
Company Buying
car-Saving on
taxes
Paying for lunch-
CO saves on taxes
Deferred
Compensation-
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Motivation and pay
• Can really Paying more increases performance or can u relate
motivation to pay
• Brain work – Reward will change the focus
• Brain work and hand work – Reward will motivate
• Rewards only work if don’t need to think
• Think and communicate
• While selecting your job you can decide on payments
• But getting high pay will not necessary make you perform better
• Align Employee need to Employer need
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Motivation
• A driving force to perform
• Is a Behavior led process leading to action
• Process to accomplish goals
• The term motivation refers to factors that activate, direct, and sustain
goal-directed behavior
• Motives are the “whys” of behavior – the needs or wants that drive
behavior and explain what we do.
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• Motivation can be affected by peers –
• what you think you should be doing,
• unconscious goals – things you do without really analyzing them,
• outright self-reward – looking for or working towards a determined
incentive or a reward.
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Classifying Motivation
• Primary Motive:
• Unlearned
• Physiological need based
• Hunger, thursty, sleep, Avoidance of pain
• Secondary Motive
• Learned
• Sociological, psychological needs
• Power, Achievement, Affiliation
• Security and status
• General-
• Injected / Acquired
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Motivation
• Intrinsic motivation
• Extrinsic motivation
• DO things somebody else wants you to do-Extrinsic Motivation
• Do things naturally- Intrinsic motivation
• Motivation Process-Integrated into management
• Needs- Increase profitability of firm by increasing output of HR
• Drives/commitment - Planned effort to achieve
• Incentives- Tools to inject external motivations
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• Motivation theories
• Maslow – hierarchy of needs.
• Alderfer – ERG theory: Existence needs, relatedness needs and growth
needs.
• McClelland – Need for achievement, affiliation and power.
• Herzberg – Two factor theory.
• Skinner's reinforcement theory.
• Vroom's expectancy theory.
• Adams' equity theory.
• Locke's goal-setting theory.
• Kelley, Heider, Winnies- Locus of control
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Kelley and Rotter
• Locus of control
• degree to which people believe that they, as opposed to external
forces (beyond their influence),
• have control over the outcome of events in their lives.
• developed by Julian B. Rotter in 1954,
• and has since become an aspect of personality studies ,
• Strong internal locus
• Praise or blame themselves for their performance
• Motivation & ability
• Strong External Locus:
• Blames External factors
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Attribution theory
Heider
Attribution
theory
• Logical and analytical approach to arrive at
explanation
• Internal,- motivation, Ability
• External-situation
• Actor-Observer effect (External-Internal)
Kelleys
Attribution
theory
• Covariation principle:
• Extent to which person behaves in same way
• Generalized explanation
• Consensus-Comparing with others-Creating judgement
• Consistency-Occurrence times
Weiner’s
attribution
theory
• Locus of Causality
• Stability of causes identified
• Controllability –Influence future events
• ABILITY, EFFORT, TASK DIFFICULTY, LUCK
Future Expectations,
Emotions
Performance
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Kelleys attribution theory
• an ability attribution (‘My pitch wasn’t good enough to make the
sale’)
• cause of the failure is seen as due to stable (‘I am not a good
salesperson’)
• controllable (‘I had the resources necessary to make the sale’) factors
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Locke’s Goal setting theory
• Goal setting
• Environment to execute the goals
• Reward for accomplishment
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Locke’s Goal setting theory
• Goal setting
• Provide clear goals
• Give Environment to execute the goals
• Reward & feedback for accomplishment
• There is a relationship between how specific and difficult a job is
• Performance needed to complete the task
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Adam’s Equity theory
• People maintain a fair relationship between performance and outcome
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Vroom’s Expectancy
• Expectancy
• belief that increased effort will lead to increased performance
• Having the right resources available (e.g. raw materials, time)
• Having the right skills to do the job
• Having the necessary support to get the job done (e.g. supervisor support, or correct
information on the job)
• Instrumentality
• belief that if you perform well that a valued outcome will be received.
• Clear understanding of the relationship between performance and outcomes – e.g. the rules of
the reward 'game'
• Trust in the people who will take the decisions on who gets what outcome
• Transparency of the process that decides who gets what outcome
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Vroom’s Expectancy
• Valence
• importance that the individual places upon the expected outcome.
• Positive if the person must prefer attaining the outcome to not attaining it.
• Eg- someone mainly motivated by money,
• might not value offers of additional time off.
• E>P expectancy: assessment of the probability that our efforts will lead to the
required performance level.
• P>O expectancy: assessment of the probability that our successful performance
will lead to certain outcomes.
• E- Effort, P-Performance, O-outcome
• Depends on perception which is individual:
• What as outcome>>
• Money
• Status
• Another challenge
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Journey of Employer- Employee
Need for
suitable
Employee
For see the
requirement
Locating /
attracting
reach out
Job design,
Career fares,
News papers
Screening
process
Recruitment,
Selection
Contract- Give
and take
work
expected and
compensation
Sustaining
Employee
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Training
• Definition of Training:
• Systematic approach to
• Develop competencies – knowledge, skills and abilities to do a job.
• Develop skills to acquire another responsibility/job
• Dale S. Beach defines training as
• ‘the organized procedure by which people learn knowledge and/or
skill for a definite purpose’.
• Training refers to the teaching and learning activities carried on for
the primary purpose of helping members of an organization acquire
and apply the knowledge, skills, abilities, and attitudes needed by a
particular job and organization.
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Need for training
• Global working style changes
• Updating work technologies
• Mechanization
• Computerization
• Atomization
• Updating knowledge &upgrading
• Organizational complexity
• Human relations
• Expansions/ Diversification
• Align Employee specification to Job requirement
• Changed job assignment/new job responsibility –
• Promotions,
• Organization restructuring
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Types of training
• on the job training: Seniors training on job
• Operation and Procedure manuals: Studying from the material available
• Classroom Training : Lectures by seniors
• E-learning : Can be done more effectively and cheap for companies spread
over
• Audio Visual training : Recorded videos
• Simulations : Pilots
• Blended Learning : Combination of above
• College and university programs : Freedom to enrole in Post graduation, Phd
• Coaching and Mentoring : One senior handling the development of
employees
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Resistance in training
• Feeling undervalued by their employer/Punishment aspect
• Employee Feeling not praised for performance get a feeling of being punished
• Training needed might be interpreted as not knowing
• Generational differences.
• When an employee feels they are highly experienced and overqualified, they
may resist training simply because they feel they already know everything they
need to know.
• Lack of input or voice.
• If your employees feel ignored during training
• input not valuable to the training program will be less engaged
• Intruding on their free time. E
• refuse to participate in training sessions if
• its in their time outside of the office.
• Should be in working hours
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Importance/Advantages of training
• For Employer
• improve how well employees perform their current jobs.
• prepared for future jobs in the company.
• Providing appropriate training increase the job satisfaction and help employee to
perform with higher skill, making the company more likely to achieve its goals.
• As the baby boomers retire, other workers will need to be ready to step into their
jobs.
• Both training & development help organization equip its workforce to gain a sustained
competitive advantage.
• For Employee
• Competency in employees
• Improvement in efficiency and effectiveness
• Self management
• Developing self confidence
• Take up more responsibility/ jobs
• Training is one of the top 3 benefits that employees want from their employers.
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Resistance in training
• Inability to see the relevance.
• unable to see how it relates to them or what the outcome will be
• If they feel provided training is not beneficial to their job performance,
• trainees to put into perspective what the training can do for them
• Fear of losing control/ fear of change
• Training new jobs might get a feeling of possibility of shift of
responsibility
• Fear of loosing efficiency if new responsibility/department
• The job market is fluid.
• many opportunities to change jobs.
• shorter attention spans and limited tolerance,
• To retain Employees
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Executive Development Programs
• Development is future focused and aims to prepare employees to take
on addition responsibilities in different jobs- usually at a higher level.
• Teaching computer skills to seniors- softwares, office tools
• New Technologies
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• Concept of Self-Development:
• To enable management development, managers at all levels apply the
concept of self- development (or self-control or self-management) to frame
and achieve the goals efficiently.
• According to Henry Sims, “Self-control refers to those behaviors that an
individual deliberately undertakes to achieve self-selected outcomes.
• The individual employee selects the goals and implements the procedures
to achieve those goals.”
• In self-development programmes, managers:
• Set their goals; what is to be done and how,
• Take actions to achieve those goals,
• Control the external stimuli affecting their development,
• Introduce changes when required rather than follow changes,
• Measure their progress towards development in the light of goals set by
them.
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• The process of self-development includes:
• Developing Awareness about Self
• Adopting Methods of Development after Conducting the
Awareness Analysis.
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Dynamics of inter personal relation for self assessment by Johari
Model
• developed by Joseph Luft and Harrington Ingham
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Implementation of Johari window
• analyze self and identify strengths and weaknesses.
• understand owns behavior and emotional state and try to relate it with
others.
• if analyses weaknesses,
• try to overcome them and develop as strength.
• Change is the essence of self-development.
• open to change and if he is unknown to self
• accept the advice of others
• develop a positive mind set.
• adjust behavior through change in interpersonal processes.
• change from hidden-self to open-self by sharing awareness with others,
• change from blind-self to open-self by taking feedback from others.
• be open to disclosure of his behavior by others.
• Use feedbacks for positive movement
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Knowledge Management
• Developing from the experiences of employees within
• Giving a platform to share
• Organizing the material and segregating to proper heads
• Protecting the knowledge
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Career Management
• Career Management
• structured planning and the active management choice of one's
own professional career.
• Tradition Career
• "Lifelong, self-monitored process of career planning
• Awareness about the interest ,Skill, strength weakness
• choosing and setting personal goals,
• formulating strategies for achieving the C Planning
• Identify Jobs and job opportunities
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• Traditional Career
• Sequence of position within an occupation
• Mobility within organization
• Characteristic of employee
• Protean career
• Frequently changing jobs for opportunity or wok environment
• Self driven
• Major responsibility with employee
• Psycological
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Stages in career
• Exploration
• Establishment
• Maintenance
• disengagement
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Process of career management/features
• Career resilience – Extent to which employees can cop with the
problems in their growth
• Career insight
• Developing perceptions –Interest, skill, strength, weakness
• Relating the perception to career goals
• Career identity
• Defining personal values with work
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Employer perspective of Career management of employees
• Motivate Employees For identify their career plans
• Improved productivity & commitment from employees
• Align the interest of employee with company goals
• Absorb the employee in the field of his interest resulting in better
productivity
• Focus Employee energy in direction of growth of company with growth
of the career
• Empowering/Assisting the career plans
• Shift of responsibilities
• Assigning higher responsibilities by Promotions
• Training programs
• Intermediate Performance reviews
• Mentor Portege
• Exposures /opportunities /Challenges
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Tools used for career management by HR/companies / Employees
• Career workshops
• Information on careers and job opportunities
• Career planning workbook
• Career counseling
• Career paths
