UNIT II

INVESTMENT PERSPECTIVES OF HRM

Investment perspective of human resource management:

Employees are human assets that increase in value to the organization and the
marketplace when investments of appropriate policies and programs are applied. Effective
organizations recognize that their employees do have value, much as same as the organization’s
physical and capital assets have value. Employees are a valuable source of sustainable
competitive advantage.

Sources of Employee Value:

 Technical Knowledge :–Markets, Processes, Customers, Environment
 Ability to Learn and Grow:- Openness to new ideas
–Acquisition of knowledge and skills
 Decision Making Capabilities
 Motivation
 Commitment
 Teamwork:- Interpersonal skills
- Leadership ability

Factors influencing an organizations investment orientation:

 Management values: an organizations willingness to invest in its human resources is
determines by the “investment orientation” of its managers.
 Attitude towards risk: investment in human resources is inherently riskier due to lack of
absolute “ownership” of the asset.
 Nature of employee skills: the more likely that skills developed by employees are
marketable outside the firm, the more risky the firm’s investment in the development of
those skills.
 Utilitarian: an attempt is made to quantify employee worth to the organization through a
cost-benefit analysis. The soft benefits of HR programs and policies are difficult to
objectively quantify because they affect many different organizational areas and have
different effects on individual employees.
 Availability of outsourcing: if cost-effective outsourcing is available, investments will be
made only in HR activities producing the highest returns and largest sustainable
competitive advantage.
 HR PLANNING

Meaning:

Human resource is the most important asset of an organization. Human resources

planning are the important managerial function. It ensures the right type of people, in the right
number, at the right time and place, who are trained and motivated to do the right kind of work at
the right time, there is generally a shortage of suitable persons.

According to E.W. Vetter, human resource planning is “the process by which a

management determines how an organization should make from its current manpower position to
its desired manpower position.

Dale S. Beach has defined it as “a process of determining and assuring that the
organization will have an adequate number of qualified persons available at the proper times,
performing jobs which meet the needs of the enterprise and which provide satisfaction for the
individuals involved.”

Features of Human Resource Planning:

1. Well Defined Objectives: Enterprise’s objectives and goals in its strategic planning and
operating planning may form the objectives of human resource planning. Human resource needs
are planned on the basis of company’s goals. Besides, human resource planning has its own
objectives like developing human resources, updating technical expertise, career planning of
individual executives and people, ensuring better commitment of people and so on.
2. Determining Human Resource Reeds: Human resource plan must incorporate the human
resource needs of the enterprise. The thinking will have to be done in advance so that the persons
are available at a time when they are required. For this purpose, an enterprise will have to
undertake recruiting, selecting and training process also.
3. Keeping Manpower Inventory: It includes the inventory of present manpower in the
organisation. The executive should know the persons who will be available to him for
undertaking higher responsibilities in the near future.
4. Adjusting Demand and Supply: Manpower needs have to be planned well in advance as
suitable persons are available in future. If sufficient persons will not be available in future then
efforts should be .made to start recruitment process well in advance. The demand and supply of
personnel should be planned in advance.
5. Creating Proper Work Environment: Besides estimating and employing personnel, human
resource planning also ensures that working conditions are created. Employees should like to
work in the organization and they should get proper job satisfaction.

An HR Planning process simply involves the following four broad steps:

 Current HR Supply: Assessment of the current human resource availability in the
organization is the foremost step in HR Planning. It includes a comprehensive study of
 the human resource strength of the organization in terms of numbers, skills, talents,
competencies, qualifications, experience, age, tenures, performance ratings, designations,
grades, compensations, benefits, etc. At this stage, the consultants may conduct extensive
interviews with the managers to understand the critical HR issues they face and
workforce capabilities they consider basic or crucial for various business processes.
 Future HR Demand: Analysis of the future workforce requirements of the business is
the second step in HR Planning. All the known HR variables like attrition, lay-offs,
foreseeable vacancies, retirements, promotions, pre-set transfers, etc. are taken into
consideration while determining future HR demand. Further, certain unknown workforce
variables like competitive factors, resignations, abrupt transfers or dismissals are also
included in the scope of analysis.
 Demand Forecast: Next step is to match the current supply with the future demand of
HR, and create a demand forecast. Here, it is also essential to understand the business
strategy and objectives in the long run so that the workforce demand forecast is such that
it is aligned to the organizational goals.
 HR Sourcing Strategy and Implementation: After reviewing the gaps in the HR supply
and demand, the HR Consulting Firm develops plans to meet these gaps as per the
demand forecast created by them. This may include conducting communication programs
with employees, relocation, talent acquisition, recruitment and outsourcing, talent
management, training and coaching, and revision of policies. The plans are, then,
implemented taking into confidence the mangers so as to make the process of execution
smooth and efficient. Here, it is important to note that all the regulatory and legal
compliances are being followed by the consultants to prevent any untoward situation
coming from the employees.

DEMAND AND SUPPLY FORECASTING

Demand Forecasting:
Demand forecasting is a quantitative aspect of human resource planning. It is the process
of estimating the future requirement of human resources of all kinds and types of the
organization.

Forecasting of demand for human resources depends on certain factors such as:
(1) Employment trend in the organization for at least last five years to be traced
to determine the future needs.
(2) Organization has to find out the replacement needs due to retirement, death, resignation,
termination etc.
(3) Improvement in productivity is yet another factor. To improve productivity organization
needs better employees with skills and potential. Productivity leads to growth but depends on the
demands for the product of the enterprise in the market. Higher demand may lead to more
employment of skilled personnel’s.
(4) Expansion of the organization leads to hiring of more skilled persons. The base of human
resource forecast is the annual budget. Manufacturing plan depends upon the budget. Expansion
in production leads to more hiring of skills and technology.

Major methods of demand forecasting:

(1) Executive Judgment: Executive or Managerial Judgment method is the most suitable for
smaller enterprises because they do not afford to have work study technique. Under this method
the executives sit together and determine the future manpower requirements of the enterprise and
submit the proposal to the top management for approval. This approach is known as ‘bottom up’
approach. Sometimes the members of top management sit together and determine the needs on
the advice of personnel department. The forecasts so prepared sent for review to the
departmental heads and after their consent approved the need. This is known as ‘top down’
approach. The best way is the combination of the two approaches. Executives at both levels
equipped with guidelines sit together and determine the human resources need of the
organization.
(2) Work Load Forecasting: It is also known as work load analysis. Under this method the stock
of workload and the continuity of operations are determined. Accordingly the labour requirement
is determined. The workload becomes the base for workforce analysis for the forthcoming years.
Here due consideration is given to absenteeism and labour turnover. This method is also known
as work study technique. Here working capacity of each employee is calculated in terms of man-
hours. Man-hours required for each unit is calculated and then number of required employees is
calculated.
(3) Statistical Techniques: Long range demand forecasting for human resources is more
responsive to statistical and mathematical techniques. With the help of computers any data is
rapidly analyzed.
The following are the methods of forecasting used under this category:
(a) Ratio Trends Analysis: Under this method the ratios are calculated for the past data related to
number of employees of each category i.e. production, sales and marketing levels, work load
levels. Future production and sales levels, work load, activity levels are estimated with an
allowance of changes in organization, methods and jobs. The future ratios are estimated. Then
future human resources requirement is calculated on the basis of established ratios. This method
is easy to understand. Value depends upon accuracy of data.
(b) Econometric Models: Econometric models are built up on the basis of analysis of past
statistical data establishing the relationship between variables in a mathematical formula. The
variables are those factors such as production, sales, finance and other activities affecting human
resource requirement. Econometric model is used to forecast human resource requirements based
on various variables.
(d) Regression Analysis: Regression analysis is used to forecast demand for human resources at
some point of time in future by using factors such as sales, production services provided etc. This
method is used when independent and dependent variables are functionally related to each other.
Nowadays computers are used to solve regression equations for demand forecasting.
Supply Forecasting:
Supply forecasting means to make an estimation of supply of human resources taking into
consideration the analysis of current human resources inventory and future availability.
Existing Inventory:
The first step in supply forecasting is to take a stock of existing HR inventory as follows.
(a) Head Count: Count of the total number of people available department-wise, sex- wise,
designation-wise, skill-wise, pay roll-wise etc.
(b) Job Family Inventory: It consists to number and category of employees of each job family
i.e. the jobs related to same category like office staff, sales and marketing staff, production staff,
maintenance and industrial engineers, quality control engineers etc.
(c) Age Inventory: It consists of age-wise number and category of employees. This gives us age
composition of human resources. Dynamism, creative abilities innovativeness is present in
young employees while making of proper judgment and display of maturity is shown by elderly
employees. Organizations prefer both young and old employees. Human resource planning
should give due consideration to age-wise human resource mixing young and old employees in
due proportions.
(d) Inventory of skill, experience, values and capabilities: Organization should take a stock of
present inventory of skill, employees with number of years of experiences (10 yrs, 15-yrs, 20 yrs
and more etc.), values and capabilities.
(e) Inventory of Qualifications and Training: This consists of educational qualifications of the
employees academic and technical and special qualifications if any and the training received by
the employees.

RECRUITMENT AND SELECTION

Recruitment is a process of identifying, screening, short listing and hiring potential

resource for filling up the vacant positions in an organization. It is a core function of Human
Resource Management. Recruitment is the process of choosing the right person for the right
position and at the right time. Recruitment also refers to the process of attracting, selecting, and
appointing potential candidates to meet the organization’s resource requirements.

Importance of Recruitment in an organization −

 It determines the current and future job requirement.
 It increases the pool of job at the minimal cost.
 It helps in increasing the success rate of selecting the right candidates.
 It helps in reducing the probability of short term employments.
 It meets the organization’s social and legal obligations with regards to the work force.
 It helps in identifying the job applicants and selecting the appropriate resources.
 It helps in increasing organizational effectives for a short and long term.
 It helps in evaluating the effectiveness of the various recruitment techniques.
 It attracts and encourages the applicants to apply for the vacancies in an organization.
  It determines the present futures requirements of the organization and plan according.
 It links the potential employees with the employers.
 It helps in increasing the success ratio of the selection process of prospective candidates.
 It helps in creating a talent pool of prospective candidates, which enables in selecting the
right candidates for the right job as per the organizational needs.

Selection:
The selection process can be defined as the process of selection and short listing of the right
candidates with the necessary qualifications and skill set to fill the vacancies in an organization.
The selection process varies from industry to industry, company to company and even amongst
departments of the same company.

The Employee selection Process takes place in following order-

1. Preliminary Interviews- It is used to eliminate those candidates who do not meet the
minimum eligiblity criteria laid down by the organization. The skills, academic and
family background, competencies and interests of the candidate are examined during
preliminary interview. Preliminary interviews are less formalized and planned than the
final interviews.
2. Application blanks- The candidates who clear the preliminary interview are required to
fill application blank. It contains data record of the candidates such as details about age,
qualifications, reason for leaving previous job, experience, etc.
3. Written Tests- Various written tests conducted during selection procedure are aptitude
test, intelligence test, reasoning test, personality test, etc. These tests are used to
objectively assess the potential candidate. They should not be biased.
4. Employment Interviews- It is a one to one interaction between the interviewer and the
potential candidate. It is used to find whether the candidate is best suited for the required
job or not. But such interviews consume time and money both. Moreover the
competencies of the candidate cannot be judged. Such interviews may be biased at times.
Such interviews should be conducted properly. No distractions should be there in room.
There should be an honest communication between candidate and interviewer.
5. Medical examination- Medical tests are conducted to ensure physical fitness of the
potential employee. It will decrease chances of employee absenteeism.
6. Appointment Letter- A reference check is made about the candidate selected and then
finally he is appointed by giving a formal appointment letter.

SOURCES OF RECRUITMENT
We will shed some light on the secrets of hiring and recruiting methods, used by the
recruiters. Recruitment is broadly classified into two different categories − Internal Sources
and External Sources.

Internal Sources of Recruitment

 Internal sources of recruitment refer to hiring employees within the organization
internally. In other words, applicants seeking for the different positions are those who are
currently employed with the same organization. At the time recruitment of employees, the initial
consideration should be given to those employees who are currently working within the
organization. This is an important source of recruitment, which provides the opportunities for the
development and utilization of the existing resources within the organization.

 Promotions: Promotion refers to upgrading the cadre of the employees by evaluating

their performance in the organization. It is the process of shifting an employee from a
lower position to a higher position with more responsibilities, remuneration, facilities,
and status. Many organizations fill the higher vacant positions with the process of
promotions, internally.
 Transfers: Transfer refers to the process of interchanging from one job to another
without any change in the rank and responsibilities. It can also be the shifting of
employees from one department to another department or one location to another
location, depending upon the requirement of the position.
 Recruiting Former Employees: Recruiting former employees is a process of internal
sources of recruitment, wherein the ex-employees are called back depending upon the
requirement of the position. This process is cost effective and saves plenty of time. The
other major benefit of recruiting former employees is that they are very well versed with
the roles and responsibilities of the job and the organization needs to spend less on their
training and development.
 Internal Advertisements (Job Posting): Internal Advertisements is a process of
posting/advertising jobs within the organization. This job posting is an open invitation to
all the employees inside the organization, where they can apply for the vacant positions.
It provides equal opportunities to all the employees working in the organization. Hence,
the recruitment will be done from within the organization and it saves a lot of cost.
 Employee Referrals: Employee referral is an effective way of sourcing the right
candidates at a low cost. It is the process of hiring new resources through the references
of employees, who are currently working with the organization. In this process, the
present employees can refer their friends and relatives for filling up the vacant positions.
 Previous Applicants: Here, the hiring team checks the profiles of previous applicants
from the organizational recruitment database. These applicants are those who have
applied for jobs in the past. These resources can be easily approached and the response
will be positive in most of the cases. It is also an inexpensive way of filling up the vacant
positions.

External Sources of Recruitment

External sources of recruitment refer to hiring employees outside the organization

externally. In other words, the applicants seeking job opportunities in this case are those who are
external to the organization. External employees bring innovativeness and fresh thoughts to the
organization. Although hiring through external sources is a bit expensive and tough, it has
tremendous potential of driving the organization forward in achieving its goals. Let us now
discuss in detail the various external sources of recruitment.

 Direct Recruitment: Direct recruitment refers to the external source of recruitment where
the recruitment of qualified candidates are done by placing a notice of vacancy on the
notice board in the organization. This method of sourcing is also called as factory gate
recruitment, as the blue-collar and technical workers are hired through this process.
 Employment Exchanges: As per the law, for certain job vacancies, it is mandatory that
the organization provides details to the employment exchange. Employment exchange is
a government entity, where the details of the job seekers are stored and given to the
employers for filling the vacant positions. This external recruitment is helpful in hiring
for unskilled, semi-skilled, and skilled workers.
 Employment Agencies: Employment agencies are a good external source of recruitment.
Employment agencies are run by various sectors like private, public, or government. It
provides unskilled, semi-skilled and skilled resources as per the requirements of the
organization. These agencies hold a database of qualified candidates and organizations
can use their services at a cost.
 Advertisements: Advertisements are the most popular and very much preferred source of
external source of recruitment. The job vacancy is announced through various print and
electronic media with a specific job description and specifications of the requirements.
Using advertisements is the best way to source candidates in a short span and it offers an
efficient way of screening the candidates’ specific requirements.
 Professional Associations: Professional associations can help an organization in hiring
professional, technical, and managerial personnel, however they specialize in sourcing
mid-level and top-level resources. There are many professional associations that act as a
bridge between the organizations and the job-seekers.
 Campus Recruitment: Campus recruitment is an external source of recruitment, where
the educational institutions such as colleges and universities offers opportunities for
hiring students. In this process, the organizations visit technical, management, and
professional institutions for recruiting students directly for the new positions.
 Word of Mouth Advertising: Word of mouth is an intangible way of sourcing the
candidates for filling up the vacant positions. There are many reputed organizations with
good image in the market. Such organizations only need a word-of-mouth advertising
regarding a job vacancy to attract a large number of candidates.

TESTS AND INTERVIEW TECHNIQUES

 Aptitude tests: are among the most popular interview tests given to candidates as they help to
identify and effectively measure a candidates reading, writing, verbal reasoning and
 numerical ability skills. These forms of tests, like many others, can be tailored to suit your
company requirements, or can be purchased in a standard format. One of the main
advantages of using aptitude tests as part of your hiring strategy is that is reflects an accurate
account of an individual’s skills and can help you to filter a short list quickly.
 Personality tests: Introducing a personality test at interview stage is effective only where you
fully understand the exact job specification, personality traits and skills required to succeed
in the role. The test can be a combination of writing, reading, or verbal analysis, and the
results can help you identify a candidate’s suitability to the role.
 Psychometric test: This type of test is used to measure a person’s mental ability in relation to
the job vacancy. These tests allow interviewers to evaluate each candidate’s reaction to
certain situations, while also being able to closely observe a candidates behavioral pattern.
 Technical tests: Unlike aptitude tests which can be effectively used at the beginning of the
hiring stages to filter out unsuitable candidates, technical tests are more practical to use
towards the end of the hiring process. A technical test is useful when recruiting for job
vacancies that involve a high level of skill or specific technical knowledge.
 Intelligence tests: An intelligence test, or IQ test as it is commonly referred to, is a
sophisticated format by which verbal, abstract and numerical reasoning. This type of test is
particularly effective when interviewing graduates or a group of similarly skilled and
qualified candidates.
 Situational tests: If you want to observe how a candidate will perform in a real job related
situation, you can introduce situational tests to the interview. This is where a work situation
is simulated and the candidate is required to act in a way that they would if it was a real
situation. This type of test is best used towards the very end of the hiring process, as it will
help you to decide between your short list of suitable candidates as to which one will perform
best in the role. By simulating work situations, you can observe how each candidate reacts
and uses their initiative to assess their overall suitability for the job.

There are many types of interviews serving diverse purposes. Knowing what to expect can help
you achieve your goals.
1. Informational Interview: The objective of this interview is to ask for advice and learn more
about a particular career field, employer or particular job. Interviewing experts in their field is
one more way to become more occupationally literate. The knowledge that you gain here will
make you a sharper and more informed. You will also make a contact and further develop your
network.
2. Screening or Telephone Interview: A phone interview is a very cost effective way to screen
candidates. These can last anywhere from 10 to 30 minutes. You should prepare for it like an
open book exam. It is recommended that you have in front of you your resume, the job
description, a list of references, some prepared answers to challenging questions and perhaps
something about the company. The vast majority of communication is non-verbal. Because they
can’t see your body language, it is critically important to have positive and polished answers
with energetic tone and inflection. Be sure to ask what the next step is.
3. Individual Interview: This is the most common type and often called a “personal
interview.” It is typically a one-on-one exchange at the organizations offices. In order to best
prepare you will want to know the length of the interview which can usually range from 30 to 90
minutes. If the interview is 30 minutes you have to be concise and have a high impact with your
answers. If it is 60 or 90 minutes you will want to go into much more depth and use specific
examples to support your generalizations.
4. Small Group or Committee Interview: This is where you will be meeting with several
decision-makers at once. This can be an intimidating experience if you are not prepared. It’s an
efficient way to interview candidates and allows for different interpretations or perceptions of the
same answer. Be sure to make eye contact with everyone, no matter who asked the
question. It’s important to establish rapport with each member of the interview team. Try to
find out the names and job titles of the participants.
5. The Second or On-Site Interview: After your first interview, you may be asked back again for
a “second date.” They like you enough that you made the first round of cuts, but they would like
to know more about you before making their final decision. Second Interviews can last either a
half or full-day so it is best to check again and get an agenda. You may be meeting with three to
five individuals. This may include a representative from Human Resources, the department
head, the office staff and the department head’s supervisor. Be alert and enthusiastic at all
times! The more you know about the structure of the process, the less anxious you are going to
feel and the better you will perform. This is the last step before an offer is made.
6. Behavioral-Based Interview: The theory behind Critical Behavioral Interviewing (CBI) is that
past performance in a similar situation is the best predictor of future performance. CBI probes
much deeper than traditional interviewing techniques. You should prepare by thinking of
specific examples that demonstrate your competence in core behaviors such as teamwork,
problem-solving, communication, creativity, flexibility and organizational skills. You will want
to tell your story and structure it by stating your answers in terms of the situation, the task, what
action you took, and what was the result or outcome.
7. Task Oriented or Testing Interview: This is a problem-solving interview where you will be
given some exercises to demonstrate your creative and analytical abilities. A company may ask
you to take a short test to evaluate your technical knowledge and skills. Sometimes a
presentation to a group is necessary to determine your communication skills. Try to relax as
much as possible.
8. Stress Interview: During this rare type, the interviewer tries to bait you, to see how you will
respond. The objective is to find your weaknesses and test how you hold up to pressure. Such
tactics as weird silences, constant interruptions and challenging interrogation with antagonistic
questions are designed to push your boundaries. The question you have to ask yourself is: Do I
want to work for a company that treats me this way even before the offer is made? Rethink the
corporate culture.
 TRAINING AND DEVELOPMENT

Definition: Employee training and development implies a program in which specific knowledge,
skills and abilities are imparted to the employees, with the aim of raising their performance level,
in their existing roles, as well as providing them learning opportunities, to further their growth.

Importance of Training and Development

1. For organization:

Training and Development programme facilitates better utilization of an

organization’s resources, i.e. men, machine, material and money.
 It ensures less wastage, with respect to resources and time. When a worker is
skilled and trained enough, the amount of wastage will be less, as well as the
learning time will be reduced, and the work will be performed in very less time.
 It improves the performance of the employee which results in increased
profitability.
 The employees learn new and improved methods of performing an activity,
which helps the organization to survive, compete and grow in the market.
 It results in a reduction in employee turnover, idle time and absenteeism.
 It develops a positive attitude in employees towards the work and organization,
as well as boosts their morale, which helps them adapt themselves to the changing
environment.
For Employees:
  An individual focuses more on career than a job. And so, the skills and
knowledge acquired from the training add to their resume.
 Improved performance is a sort of motivation for an individual which encourages
them to perform much better than before and contribute to the organization’s
success, which ultimately increases their incentives.
 When an employee is trained enough, he/she will handle any situation or
problem and deal with the challenges in a better way.
 Training makes workers machine or equipment-friendly, whichreduces the
number of accidents during the process.
 It helps the employee to stay up-to-date with the technological changes.
 It results in job satisfaction and boosts employees morale.
Inputs in Training and Development
 Skills: Basic skills should be imparted to the workers, to help them operate the machinery
and other equipment correctly, with least wastage and damage.
 Education: It aims at teaching theoretical concepts along with providing a hands-on
experience to the employee. It also improves their judgement and reasoning power.
 Development: Training involves development, wherein more stress is given on
increasing knowledge, rather than the skills. Here, knowledge means an understanding of
the business environment, human relations, management, etc.
 Ethics: Ethics are the principles that regulate the conduct of an employee, at the time of
undertaking any activity. So, the training and development programme must provide
knowledge regarding ethical conduct.
 Change in attitude: One of the important benefits of training is the attitudinal changes in
employees. Attitude indicates the feelings, outlook, reaction and beliefs of the employee
towards others. It has a great impact on an employee’s morale, motivation, loyalty,
commitment and satisfaction.
  Extraordinary Skills: Apart from basic skills, training and development scheme should
impart some other skills to higher level employees such as problem-solving, decision
making, industrial analysis, etc.
 Literacy: Here literacy is not related to education, but proficiency in the corporate
language and he/she must be fully aware of the corporate culture, to deal with
international clients and customers.

TRAINING METHODS AND TECHNIQUES

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 under-
stand 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.

TRAINING EVALUATION

Evaluation involves the assessment of the effectiveness of the training programs.

This assessment is done by collecting data on whether the participants were satisfied with the
deliverables of the training program, whether they learned something from the training and are
able to apply those skills at their workplace. There are different tools for assessment of a training
program depending upon the kind of training conducted.

Benefits of Training Evaluation

Evaluation acts as a check to ensure that the training is able to fill the competency gaps
within the organization in a cost effective way. This is specially very important in wake of the
fact the organizations are trying to cut costs and increase globally. Some of the benefits of the
training evaluation are as under:
  Evaluation ensures accountability - Training evaluation ensures that training programs
comply with the competency gaps and that the deliverables are not compromised upon.
 Check the Cost - Evaluation ensures that the training programs are effective in improving
the work quality, employee behaviour, attitude and development of new skills within the
employee within a certain budget. Since globally companies are trying to cut their costs
without compromising upon the quality, evaluation just aims at achieving the same with
training.
 Feedback to the Trainer / Training - Evaluation also acts as a feedback to the trainer or
the facilitator and the entire training process. Since evaluation accesses individuals at the
level of their work, it gets easier to understand the loopholes of the training and the
changes required in the training methodology.

Five Stages of Training Evaluation

Our Training Evaluation Model sets the framework for developing instruments. It
accommodates individual training programs based on the type of training, the appropriate
evaluation method, and the best way to implement the evaluation. This model has five stages and
is illustrated in the Training Evaluation Model diagram. Each stage corresponds to specific data
categories:
1. Describe the outputs. Outputs are descriptive data about the training programs and
participants, including demographic data.
2. Pre-training assessment. This step uncovers the participants’ past experience as well as
current competencies, learning needs, and expected application of learning.
3. Post-assessment (reactions). This addresses participants’ reactions to the training
experience— for example, their learning environment, format and instructor methods,
general satisfaction.
4. Post-assessment (learning). This piece is a self-assessment of knowledge or skills
gained and the participants’ expected application of learning.
5. Follow-up. This process may include several methods to assess the outcomes and effect
of training programs over time.

Our model draws from principles in Donald Kirkpatrick’s four-level model, in which evaluation
questions fall into the following categories:
Reaction: How was the training overall? What did participants like and dislike?
Learning: What knowledge and abilities did participants learn at the training?
Behavior: How have participants applied the skills they learned?
Results: What was the effect on the agency or organization?

RETENTION

Employee retention is the organizational goal of keeping talented employees and

reducing turnover by fostering a positive work atmosphere to promote engagement, showing
appreciation to employees, and providing competitive pay and benefits and healthy work-life
balance. Employers are particularly interested in retaining employees during periods of low
unemployment and heightened competition for talent. To retain employees, organizations
use human resources technology for recruiting, on boarding, engaging and recognizing workers
and offer more work flexibility and modern benefits like physical and financial wellness
programs.

Ways to improve employee retention

Every area of the employer-employee relationship in your organization deserves your

attention. Embrace these key strategies to improve your organization's employee retention and
boost employee  satisfaction:
 On boarding and orientation — every new hire should be set up for success from the
very start, from the first day of work to the first week and beyond. The job  orientation is
just one component of on boarding, which can last for weeks or months, depending on
your organization. Aim to develop an on boarding process where new staff members not
only learn about the job but also the company culture and how they can contribute and
thrive, with ongoing discussions, goals and opportunities to address questions and issues
as they arrive.
 Mentorship programs — Pairing a new employee with a mentor is a great idea for on
boarding. New team members can learn the ropes from a veteran with a wealth of
resources, and the new hire offers a fresh viewpoint  to experienced staff. Mentors
shouldn't be work supervisors, but they can offer guidance and be a sounding board for
newcomers, welcoming them into the company culture. 
 Employee compensation — It's absolutely essential in this competitive labor market for
companies to offer attractive compensation packages. That includes salaries, of course,
but also bonuses, paid time off, health benefits, retirement plans and all the other perks
that can distinguish one workplace from another. Every employee should have a full
understanding of all the benefits they receive from your organization. 
 Recognition and rewards systems — Every person wants to feel appreciated for what
they do. Make it a habit to thank your direct reports when they go the extra mile, whether
it's with a sincere email, a gift card or an extra day off. Show your employees you
appreciate them, and share how their hard work helps the  organization. Some companies
set up rewards systems that incentivize great ideas and innovation, but you can institute
recognition programs even on a small team with a small budget.
 Work-life balance — What message is your company culture sending? If staff are
expected to regularly work long hours and be at your beck and call, you'll likely run into
issues with employee retention. Burnout is real. A healthy work-life balance is essential,
and people need to know that management understands its importance. Encourage staff to
take vacation time, and if late nights are necessary to wrap up a project, see if you can
offer late arrivals or an extra day off to compensate and increase job satisfaction. Many
 companies offer telecommuting or flexible schedules to improve work-life balance for
their employees.
 Training and development — In any position and industry, professionals want the
possibility for advancement. Smart managers invest in their workers' professional
development and seek opportunities for them to grow. Ask each of your direct reports
about their short- and long-term goals to determine how you can help achieve them.
Some companies pay for employees to attend conferences or industry events each year, or
provide tuition reimbursement or continuing education training. 
 Communication and feedback — Keeping open lines of communication is essential for
employee retention. Your direct reports should feel that they can come to you with ideas,
questions and concerns, and likewise, they expect you to be honest and open with them
about improvements they need to make in their own performance. Make sure you connect
with each staff member on a regular basis — don't let issues build up for the annual
review. 
 Dealing with change — Every workplace has to deal with unpleasant changes
occasionally, and the staff looks to leadership for reassurance. If your organization is
going through a merger, layoffs or other big changes, keep your staff informed as much
as you can to avoid feeding the rumor mill. Make big announcements face to face, and
make sure you allow time for their questions.
 Fostering teamwork — When people work together, they can achieve more than they
would have individually. Foster a culture of collaboration that accommodates individuals'
working styles and lets their talents shine. Do this by clarifying team objectives, business
goals and roles, and encouraging  everyone to contribute ideas and solutions.
 Team celebration — Celebrate major milestones for individuals and for the team.
Whether the team just  finished that huge quarterly project under budget or an employee
brought home a new baby, seize the chance to celebrate together with a shared meal or
group excursion. 

A final tip: Remember to assess your employee retention strategies at least once a year. You’ll
want to stay current on market salary rates and benefits, and best practices in developing
workplace culture and manager-employee relations. Doing so will help you keep staff morale
high and turnover low while guaranteeing your organization’s success.

JOB ANALYSIS