CHAPTER 3

HRM

Induction

An induction programme is the process used within many businesses to welcome new employees to the
company and prepare them for their new role.

Induction training should include development of theoretical and practical skills, but also meet interaction
needs that exist among the new employees.

The objectives of induction are:

1. To welcome the new employee, relieve his anxieties and make him feel at home.

2. To develop a rapport between the company and the new employee and make him feel part of the
organisation as quickly as possible.

3. To inspire the new employee with a good attitude toward the company and his job.

4. To acquaint new employees with company goals, history, management, traditions, policies, department,
divisions, products and physical layouts.

5. To communicate to new employee what is expected of them, their responsibilities and how they should
handle themselves.

6. To present the basic information the employee wants to know – rules and regulations, benefits, payday,
procedures, and general practices.

7. To encourage the new employee to have an inquiring mind, show him how to learn and assist him toward
a discipline effort in developing additional knowledge.

8. To provide basic skills, turns and ideas of the business world and help the new employee in human
relations.

Here’s the 5 key reasons induction programs are essential….

#1 – WORKPLACE CULTURE

New employees need to align and be assimilated into your workplace culture. They need to understand your
values and the behaviours that drive those values.

#2 – COMPLIANCE

Educate employees about your company policies on safety, bullying, sexual harassment, and other critical
policies. This will help to protect the business by preventing incidents and better defending any claim.

#3 – RETENTION

Inductions programs help employees to adjust to their new role, make a smoother transition into the business
and assimilate into the company culture. This ultimately helps retention of employees and saves on
recruitment costs and helps employees to feel supported.

#4 – PRODUCTIVITY
Employees learn the right way of doing things from the beginning, instead of being shown shortcuts or the
other

#5 – SAVES TIME & MONEY

Saves your business time and money in the long term as a well-developed induction program can be easily
replicated for each new employee (great systems available to automate) and added to with new information
when necessary.

Importance of induction

1. Helps to build confidence about self

An induction program helps to build employee’s confidence, and eventually, new employees become
productive employees.

2. Reduces some costs

Most of the time, some employees resign from the organization during their first month. In this case, the
orientation programs will help to reduce some costs such as the cost of extra supervision, cost of error
correction, and cost of employees pay and benefits.

3. To overcome nervousness

New employees can overcome their nervousness and shyness because of the orientation program.

4. It helps to increase commitment.

A committed employee means an employee who recognizes organizational needs and prepares himself to
work hard to accomplish them. An induction program plays a significant role in enhancing employee
commitment.

5. Maintain a good communication

The employees and management/employers can maintain good communication with the orientation program.

Problems in induction

1. Giving New Starters Too Much Information at Once

Solution: Offering Context-Rich Resources On Demand

It makes sense to want to get your new starters productive as quickly as possible, however many
organizations think this is done by overwhelming workers on day one and trying to tell them everything in
one go. Put yourself in the position of the new starters. On your first day, it’s natural to have woes and
worries about the new role, along with many questions, so adding the overwhelming feeling of having to
process everything in one day is certainly counter-productive and not a good first experience.

2. An Impersonal Induction Experience

Solution: Focus On Relevance

Not fully understanding the roles of your new starters will result in a difficult induction experience, with
generic and uninspiring content. Your workers will have their own expectations of their role, so it’s
important to acknowledge these right away and give your new starters enough information that is personal
and relevant to them.
3. Trying to Do Everything On Day One

Solution: Plan an On boarding Journey

Many companies focus on just using the new starters’ first few days to really engage them, but then struggle
to follow-up or continue the induction process in the right way. By jumping into the on boarding process
without a clear sense of direction or devoting enough time to getting new starters up-to-speed, organizations
find themselves struggling to keep their new starters interested, and there will then be a lack of excitement
when engaging with future training materials.

4. Getting Lost in The Details

Solution: Prioritize The User Experience

Many organizations find themselves focusing on only the formalities, rather than the experience for new
starters. It’s daunting starting a new role, and your employee induction training should be offering support
and comfort to your workers, and not feel like a cold, strict experience.

5. Not Utilizing Digital for Support

Solution: Use Technology to Provide On-Demand Support

It’s understandable to want to free up valuable face-to-face time and that schedules and high workloads can
get in the way of spending enough time in-person to support new starters. That’s why choosing the right
learning platform for your employee induction training is vital as a permanent point of support for your
workers.

Induction process

There are three main stages in the induction process. The stages are preparation, conduct, and evaluation.

1. Preparation

As the first stage in this process, the organization needs to welcome its new employees. In this stage, an
organization needed to find solutions for the following questions.

Who should give the information?

New employees understand the nature of the organization, personnel policies, procedures, and rules from the
orientation program. Therefore, the organization should select a responsible person to present that
information to the new employees. The person may be CEO, human resource manager, or a supervisor.

How to give information

The organization can use various methods to deliver information to the new employees. Some delivery
methods are employee handbooks, video films/CD/DVD, information booklets, documents, lectures,
presentations, and discussions.

Most organizations use printing materials, an official website, training events, and employee handbooks to
provide information.

Within what time of period should the information be given?

The period of time giving the information depends on the nature of the organization, the type of the job role,
and the time availability of the management.

Where should the information be given

Usually, the information is given before the staff member arrives. The organization should let other staff
members know the new employee will arrive. Therefore, the staff members can arrange a time for
introduction with the key people. Moreover, ensure about the essential work aids are available.

2. Conduct

As the second stage in this process, the organization briefly provides information to the employees. The
person or persons provide a general introduction about the company, including the company’s name, vision,
mission, functions, products, customers, top management, and company history. However, this initial
briefing should not be provided in a printed word.

After completing the initial briefing, the new employees should be taken to their workplace and introduced
to their manager/team leader.

3. Evaluation

The new employees should not be dropped by if any problems occur during the orientation period; hence,
formal and systematic follow-up is necessary for the process. The manager/supervisor should frequently
evaluate how well the new employee is doing his job.

The purpose of this evaluation stage is to make sure about the current orientation program reaching the need
of new employees and the company’s needs. Furthermore, the evaluation helps to identify new ways to
improve the current program.

Conclusion

The induction function is essential in human resource management. It plays a vital role to be familiar with
newly recruited employees.

it can be defined as a systematic and formal process of welcoming new employees to the organization.

New employees will get a better idea about the organization’s vision, mission, functions, processes, and
other organizational strategies through this HR function.

an organization accomplishes some objectives such as developing employee confidence, provide facilities,
increase productivity, effective workforce through an orientation program.

New employees will able to overcome their shyness and nervousness because of the orientation program.

The induction process consists of three main stages. It includes preparation, conduct, and evaluation.
An orientation program will help new employees to become productive employees. Moreover, it helps to
achieve organizational goals and objectives optimally.

Training and Development

Employee Training and Development in HRM is defined as a system used by an organization to improve the
skills and performance of the employees.

It is an educational tool which consists of information and instructions to make existing skills sharp,
introduce new concepts and knowledge to improve the employee performance.

An effective training & development initiative based on training needs analysis helps the company to
enhance the skills of working manpower and improve productivity.

Katz & Kahn

“Training and development is described as a maintenance subsystem, intended to improve organizational

efficiency by increasing reutilization and predictability of behaviour”.

Kllatt, Murdick & Schuster

“Training is a systematic way of altering behaviours to prepare an employee for a job or to improve the
employee’s performance on the present job, and development is preparing an employee for improving the
conceptual, decision-making, and interpersonal skills in complex, in structured situation”

Lussier
“Training is a process of acquiring the skills necessary to perform a job and development is the ability to
perform both present and future jobs”. Skills,

McLagan

“Training and development focuses on identifying, assuring and helping develop, through planned learning,
the key competencies that enable individuals to perform current or future jobs”.

Kirkpatrick

“Training refers to the teaching of specific knowledge and skills required on the individual’s present job.
The term development refers to the growth of the individual and preparations for higher-level jobs”.

Need and Importance of Employee Training and Development in HRM

In the dynamic work environment, it is important for companies to improve the skill of their manpower. It is
critical for employees to learn new things and enhance their skills to meet the work competitions in the
business environment. Thus, the training and development programs run by the company is beneficial for
both organization and employee.

What is the Need of Training and Development?

1. The training and development activity is required when company revises its objectives and goal to
adjust the changing market conditions.
2. Companies often endorse training and development programs to improve the performance of the
employees.
3. The HR training and development is needed to set up a benchmark of performance which employees
are expected to achieve in a financial year.
4. There is always a need of training and development efforts to teach the employee new skills such as
team management, communication management and leadership behaviour.
5. Training and development is also used to test new methods of enhancing organizational productivity.

What is the Importance of Training and Development?

1. In Human Resource Management (HRM) Training and development is important aspect when company
wants optimum utilization of their manpower.
2. Training and development is a key for the succession planning of the organization as it helps in
improvement of skills like team management and leadership.
3. HR Training and development activities are vital to motivate the employee and to increase their
productivity.
4. Training and development in HRM is significant aspect to develop a team spirit in the organization.
5. Training and development programs are also important from the safety point of view as it teaches
employee to perform job properly without any life risk.
6. From the organizational point of view, the HR training and development programs are important
performance management tool to increase profitability and enhance corporate image.

Objective and Purpose of Training & Development

1. One of the most effective methods to show your employees that you value them is to provide them
with training. It demonstrates that you care as much about their well-being and development as they
do about your company's. Employees that are well taken care of will never desire to work somewhere
else.
 2. Training can be used as a preventative measure to prepare people for expected and unforeseen
changes and challenges in the workplace. It only makes sense to keep our staff prepared in times like
ours, when trends are always changing due to online innovation.
3. There is no better way to produce future leaders than to train the most talented individuals available.
Employees will have a clear career path, resulting in lower attrition and discontent.
4. Employees are a significant and most important component of a company's assets, and caring for
them entails caring for the firm as a whole. Therefore, any business organization that invests their
time and money in its employees' education or Training & development can only succeed in
achieving their business goals and advance further.

What are Benefits of Training and Development in HRM?

1. Investing in staff training and development boosts work satisfaction and morale.
2. Employee turnover is reduced.
3. Inspires employees to work harder.
4. Improves process efficiency, resulting in financial benefit.
5. Aids in the adoption of new technology and processes.
6. Increases strategy and product innovation

Training Process

Below are the steps involved in the training process:

1. Needs Assessment
2. Defining Training Objective
3. Designing a Training Program
4. Implementation of the Training Program
5. Evaluation and Follow up
Needs Assessment

The first step in the training process is to assess the need for training the employees. It analysis what are the
long term requirements of the organization and what does the organization expects from the employees.

If there is a mismatch between the skills and knowledge required, it means there is a learning gap. To assess
this learning gap below three elements is closely examined.

1. Organization analysis: The objectives of the organization are studied. The end result that a company
wants to achieve is examined in context to how it uses its resources to achieve the same.
Organizations’ internal and environment is also considered.
2. Operation Analysis: A job requires a combination of different activities for successful completion.
Operation analysis focuses on the needs, skills, knowledge, and attitude required to efficiently
complete the job.
3. Person analysis: In-person analysis the focus is on the employee who has to perform the job. It is
analysed whether the performance of the employee is satisfactory and he is being able to achieve the
organizational goal.

Defining Training Objective

After deriving the learning gap organizations should define the learning objective. Goals and objective of
training becomes the foundation of the training initiatives.

Hence determining the training objectives gives a direction to the entire learning program.

Designing a Training Program

Once the objective of the training program is determined, it is time to analyse the factors that need to be
considered while designing a training program.

1. Who will be the trainer: As per the skill and knowledge required for effective training; it should be
decided upon who will conduct the training program. It can be a supervisor, university faculty,
Industrialist, HR staff, consultants, etc.
2. Who needs to be trained: It is to be decided who all needs to be trained to fill the learning gap. It can
be on the basis of self-motivation, recommendation by supervisors of HR department itself.
3. Training Methods: Trainer should have complete information about the participants and their profile
so that he can choose the learning methods that best suits their requirements. The training content is
prepared based on the specific areas that need development.

Implementation of the Training Program

Refers to putting the training plan into action. There should be a proper environment created which is
conducive to learning. It should be preferably a participative approach and trainer should promote role-
playing and interactive games to keep the trainees involved

Evaluation and Follow up

Training evaluation is done to check whether the goals and objectives of the training have been achieved or
not. Feedback needs to be taken from the participants on the training results.

A follow up can be done by asking the supervisors whether the participants are applying the skills learned in
the learning program on their day to day job.
Methods of Training

Training method refers to a way or technique for improving the knowledge and skills of an employee for
doing assigned jobs perfectively.

The organization has to consider the nature of the job, size of the organization & workers, types of workers,
and cost for selecting a training method.

There are different types of Training methods.

Methods of Training

1. On-the-job training or internal training

2. Off-the-job training or external training

The classification of the different types of Training method is shown following chart and explained below;

On-the-job training or internal training

These methods are generally applied in the workplace while employees are working.

This form helps develop the occupational skills necessary to manage an organization and fully understand its
products and services and how they are designed and carried out.
Following are the on-the-job methods.

1. Apprenticeship programs.
2. Job instruction training (JIT).
3. Planned progression.
4. Job rotation.
5. Creation of assistant to positions.
6. Temporary promotions.
7. Committees and junior boards.
8. Coaching.

Apprenticeship programs

People seeking to enter the skilled trades to become, for example, plumbers, electricians, Ironworkers are
often required to undergo apprenticeship training before they are accepted to journeyman status.

Typically, this apprenticeship period is from two to five years. During this period, the trainee is paid less
than a qualified worker.

These programs put the trainee under the guidance of a master worker.

Job instruction training (JIT)

JIT consists of four basic steps;

preparing the trainees by telling them about the job and overcoming their uncertainties;

presenting the instruction, clearly giving essential information;

having the trainees try out the job to demonstrate their understanding; and

On their own, placing the workers into the job with a designated resource person is ready to provide the
required assistance.

Planned progression

It is a technique that gives employees a clear idea of their path of development. They know where they stand
and where they are going.

They must know the requirements for advancement and the means of achieving it.

Job rotation

It involves periodically moving people from one job to another.

The purpose of job rotation is to broaden the knowledge of managers or potential managers. It also increases
their experiences. Trainees learn about the different enterprise functions by rotating into different positions.

They may rotate through;

(1) non-supervisory work,

(2) observation assignments,

(3) various managerial training positions, and

(4) middle-level assistant positions

Such movement prevents stagnation.

Other reasons for rotating people include compensating for a labour shortage, safety, and preventing fatigue.

Creation of assistant – to positions

Assistant-to positions are frequently created to broaden the viewpoints of trainees by allowing them to work
closely with experienced managers who can give special attention to the development needs of trainees.
Managers can provide selected assignments to test the judgment of trainees.

This approach can be efficient when superiors are also qualified trainers who can guide and develop trainees
until they are ready to assume full responsibilities as managers.

Temporary promotions

Individuals are frequently appointed as acting managers when, for example, the permanent manager is on
vacation, is ill, or is making an extended business trip, or even when a position is vacant.

When the acting manager makes decisions and assumes full responsibility, the experience can be valuable.
In this way, managerial people can be trained up well.

Committees and junior boards

These give trainee’s opportunities to interact with experienced managers.

The trainees become acquainted with a variety of issues that concern the whole organization. They learn
about the relationships among different departments and the problems created by the interaction of these
organizational units.

Trainees may submit reports and proposals to the committee or the board and demonstrate their analytical
and conceptual abilities.

Coaching

On-the-job training is a never-ending process.

An excellent example of on-the-job training is athletic coaching. To be effective, which is the responsibility
of every line manager, must be done in a climate of confidence and trust between the superior and the
trainees.

Patience and wisdom are required of superiors who must delegate authority and recognize and praise for jobs
well done.

Effective coaching will develop the strengths and potentials of subordinates and help them overcome their
weakness.

Coaching requires time, but if done well, it will save time and money and will prevent costly mistakes by
subordinates; thus, in the long run, it will benefit all – the superior, the subordinates, and the enterprise.

Off-the-job training or external training

Off-the-job training is sometimes necessary to get people away from the work environment to a place where
the frustrations and buzz of work are eliminated.
Training is generally given in the form of lectures, discussions, case studies, and demonstrations. This
enables the trainee to study theoretical information or be exposed to new and innovative ideas.

Advantages of Off-the-Job Training

Off-the-job training has the following advantages:

1. It does not disrupt the normal operation.

2. Trainers are usually experienced enough to train,
3. It is systematically organized,
4. Efficiently created programs may add a lot of value.

Disadvantages of Off-the-Job Training

It is claimed that off-the-job training faces the following limitations:

1. It is not directly in the context of the job,

2. It is often formal,
3. It may not be based on experience,
4. It is expensive,
5. Trainees may not be much motivated,
6. It is artificial in nature.

Methods of Off-the-Job Training are;

1. Lectures.
2. Straight lecture.
3. Discussion method.
4. Demonstrations.
5. Seminars and conferences.
6. Reading, television, and video instructions.
7. Business Simulation.
8. Cases presentation.
9. Equipment simulators.
10. Business games.
11. Experimental exercise.
12. Role-playing.
13. Behaviour Modeling.
14. Computer modeling.
15. Vestibule training.
16. Sensitivity Training (T-groups).
17. Computer-based training.

However, there are also many off-the-job techniques for training and developing employees and managers,
such as:

Lectures

The lecture is one of the oldest forms of training, second to demonstrate. In the early days, knowledge was
transferred through demonstrations.
The lecture may be printed or oral. It is best used to understand a topic or influence attitudes through
education or training about a topic.

The lecture is merely telling someone about something. There are variations of a lecture format.

Straight lecture

It is an extensive presentation of information, which the trainee attempts to absorb. The lecture is typically
thought of as a person (trainer) speaking to a group about a topic.

It is a short version of a lecture. It has the same features as the lecture but usually lasts less than twenty
minutes if done orally.

During a straight lecture, the trainee does little except listen, observe and perhaps take notes. It is useful
when a large number of people must be given a specified set of information. The oral lecture should not
contain too many learning points unless the printed text accompanies the lecture.

Discussion method

The discussion method uses a lecture to provide trainees with information supported, reinforced and
expanded through interactions between the trainees and trainers.

It provides a two-way flow of communication. Knowledge is communicated from the trainer to the trainees.
Quick feedback is ensured.

A better understanding is possible. Questioning can be done by both the trainer and the trainees.

Demonstrations

A demonstration is a visual display of how to do something or how something works. To be effective, a

demonstration should, at a minimum, be accompanied by a lecture and preferably by a discussion.

Demonstrations;

1. Break the tasks to be performed into smaller and easily learned parts;
2. Sequentially organize the parts of the tasks;
3. Complete each of the following steps for each part of the task;
4. Tell the trainees what the trainer will be doing so they understand what he will be showing them;
5. It serves to focus on the trainee’s attention on the critical aspects of the task;
6. Demonstrate the task, describes what trainees are doing while the trainer is doing it;
7. After demonstrating each part of the task, the trainer explains why it should be performed in that
way.

Seminars and conferences

Conference programs may be used in internal or external training.

During conference programs, managers or potential managers are exposed to the ideas of speakers who are
experts in their fields. A careful selection of topics and speakers will increase the effectiveness of this
training device.

Conferences can be made more successful by including discussions. Two-way communications allow
participants to ask for clarification of specific topics that are particularly relevant to them.

Reading, television, and video instructions

Another approach to training and development is the planned reading of relevant and current management
literature. This is essentially self-development.

A manager may be aided by the training department, which offers develops a reading list of valuable books.
This learning experience can be enhanced by discussing articles and books with other managers and the
superior.

Management and other topics are featured in television programs. Moreover, videotapes on a variety of
subjects are available for usage in the university or company classrooms.

Business simulation

Any training activity that explicitly places the trainee in an artificial environment that closely mirrors actual
working conditions can be considered a simulation.

Training games and simulations are designed to reproduce or simulate processes, events, and circumstances
in the trainee’s job.

Trainees can experience these events in a controlled setting to develop their skills or discover concepts that
will improve their performance. Simulation activities include case exercises,

equipment simulators, experiential exercises, complex computer modeling, role play, and vestibule training.

Cases presentation

Case studies attempt to simulate decision-making situations that trainees might find on the job. The trainee is
usually presented with a written history, key elements, and a real or imaginary organization or subunit
problem. A series of questions usually appears at the end of the case.

Typically, trainees are given time to digest the information individually. If time permits, they can also collect
additional relevant information and integrate it into their solutions.

Once individuals arrive at their solutions, they may meet in small groups to discuss the different diagnoses,
alternatives, and solutions generated.

Then the trainees meet with the trainer, who facilitates and directs further discussions. The trainer should
convey that no single solution is right or wrong, but many solutions are possible. The learning objective is to
get trainees to apply known concepts and principles and discover new ones.

Equipment simulators

Equipment simulators are mechanical devices that require the trainee to use the same procedures,
movements, or decision process they would use with equipment back on the job.

Simulators train airline pilots, air traffic controllers, taxi drivers, etc. it is important that simulators be
designed to replicate, as closely as possible, the physical aspects of the equipment operating environment
trainees will find on their job site.

Business games

Business Games are simulations that attempt to represent the way industry, company, and a subunit of a
company function. They are based on a set of relationships, rules, and principles derived from theory or
research.

However, they can also reflect the actual operations of a given department in a specific company.
Trainees are provided with information describing a situation and are asked to make decisions about what to
do. The system then provides feedback about the impact of their decisions, and they are asked to make other
decisions.

Experimental exercise

Experimental exercises are usually short, structured learning experiences where individuals learn by doing.

For example, an experimental exercise could create a conflict situation where employees have to experience
a conflict personally and work out its resolution.

After completing the exercise, the trainer typically discusses what happened and introduces the theoretical
concepts to help explain the members’ behaviour during the exercise.

Role-playing

Role-playing is a training technique in which trainees act out roles or parts in a realistic management
situation.

The aim is to develop trainees’ skills in areas like leadership and delegating. It is an enactment or simulation
of a scenario in which each participant is given a part to act out.

Trainees are provided with a description of the context-usually a topic area, a general description of the
situation, a description of their roles, and the problem they face. Role plays may be structured and
spontaneous.

(I) Structured role

Structured role-plays provide trainees with more detail about the situation and more detailed descriptions of
each character’s attitudes, needs, opinions, and so on. This type of role-playing is used primarily to develop
interpersonal skills such as communication, conflict resolution, and group decision-making.

(II) Spontaneous role

Spontaneous role plays are loosely constructed interactions in which one participant plays himself while the
others play people with whom the first trainee interacted in the past. This type of role-playing focuses on
attitudes, develops insight into one’s own behaviour, and impacts others rather than developing specific
skills.

Behaviour modeling

Behaviour modeling uses the tendency for people to observe others learn how to do something new. This
technique is most frequently used in combination with some other techniques. The modelled behaviour is
typically videotaped and then watched by the trainees.

The behaviour modeling process can be summarized as follows:

1. Define the key skill deficiencies;

2. Provide a brief overview of relevant theories;
3. Specify key learning points or critical behaviours to watch for;
4. Use an expert to model the appropriate behaviours;
5. Encourage trainees to practice the appropriate behaviours in structured role-playing;
6. Provide opportunities for the trainer and Other trainees to give reinforcement of appropriate imitation
of the model’s behaviour;
 7. Ensure the trainee’s supervisor reinforces appropriate demonstration of behaviour on the job.’

Computer modeling

Complex computer modeling simulates the work environment by programming a computer to imitate some
of the realities of the job. It is widely used by airlines in the training of pilots.

The computer simulates the number of critical job dimensions. It allows learning to occur without the risk or
high costs incurred if mistakes were made in a real-life-flying situation.

An error during a simulation offers an opportunity to learn through one’s mistakes. A similar error under
real-life conditions might cost several lives and the loss of a multimillion-dollar aircraft.

Vestibule training

In vestibule training, employees learn their jobs with the requirement they will be using, but the training is
conducted away from the workplace. While expensive, vestibule training allows employees to get a full feel
for doing tasks without real-world pressures. It minimized transferring learning to the job since vestibule
training uses the same equipment the trainee will use on the job.

Sensitivity Training (T-groups)

Sensitivity training, also called T-group, is basically a technique for management development. It is
concerned with the real problems existing within the group itself. It is not an imagined problem living
outside the organization. It is not a program of teaching skills or improving the understanding of
participants.

In this program, an attempt is made to change the attitude and behaviour of people in the group. It is used in
building team efforts. This is done by introspection, self-criticism, and genuine arguments, and through free
and frank discussion, one comes to know how others feel about him and his behaviour.

It is a means of providing a mirror in which one can see his mental makeup, attitude, and behaviour towards
others. This will give the best method of motivation for self-development. The objective of this training
includes:

1. Better insight into one’s own behaviour and the way one appears to others;
2. A better understanding of group processes;
3. Members learn more about themselves, especially their weakness and emotional stability;
4. Development of skills in diagnosing and intervening group processes;
5. Find a better method and means of behaviour for effective interpersonal relationships without power
over others.

Computer-based training

Many companies are implementing computer-based training as an alternative to classroom training to

accomplish the goal. Some of the reasons for this shift are demonstrated in the following beliefs many
companies hold about CBT:

1. Reduces trainee learning time

2. Reduces the cost of training
3. Provides instructional consistency
4. Affords privacy of learning
5. Allows the trainee to master learning
 6. In a safe method for learning hazardous tasks
7. Increases access to training.

Career development

Career development is the process of improving an individual's abilities in anticipation of future

opportunities for achieving career objectives.

A formal approach taken by an organization to help its people acquire the skills and experiences needed to
perform current and future jobs is termed as career development.

Objectives of career development

1. Best use of employee skills

An objective of career development helps the organization to better utilize staff efficiency. Since the
managers know their skills and potentiality and so, they can put them in a profession where they can gain the
highest output. Using employee skills is one of the purposes, benefits, and objectives of career development
goals.

2. Realistic viewpoint for Future

Self-awareness relates to knowledge of the difference between real and perceived carrier progress
restrictions. The future of the employees greatly depends on the right approach to career development. By
examining the available opportunities and honest evaluation of an employee’s skill, career development
wants to give every employee a realistic viewpoint in the future.

3. Feedback

It is also necessary for the measurement of the implementation rate of each specific policy and the measures
taken by the organization. In addition, it helps the manager to respond to the performance of the employees
so that they can understand what they expect from them. Asking for feedback is one of the purposes,
benefits, and objectives of career development goals.

4. Resourceful & Growth trends

As a real form of training for career development, the field of research and training for workers, primarily
concerned with the increase in the production of improved staff and the potential for staffing. Career
development programs can help provide workers with the skills and tools to work in unemployed
employment or in an organization, corporation, or organization.

5. Setting realistic goals

Setting realistic goals and expectations is one of the main goals of a career development process. It helps
both employees and agencies understand what is possible for them and how they can achieve their goals.
Setting realistic goals is one of the purposes, benefits, and objectives of career development goals.

6. Learning

Education is among the more straightforward objectives of career development. Employers try to give access
to information about options such as program employees, or potential employees, job opportunities, and skill
training. It is also an important purpose because the learning process provides a way to measure the
effectiveness of programs that work for employee development.

7. Boost up job satisfaction

Organizations specially design career development systems to increase their working life satisfaction. Since
they have to maintain their valuable assets and prepare them for the top position in the future, they need to
understand the needs of their career and the expectation of the organization. Boosting up job satisfaction is
one of the purposes, benefits, and objectives of career development goals.

8. Ensure good communication between organizations

An objective of designing a career development strategy is to fully encourage good communication among
the organization. It is for example the manager and staff and managers and top management for all level
communications of the organization. Accurate communication helps to solve the life of the organization and
various major problems.

10. Grow Self-awareness

One of the main objectives of any career development program is to provide a higher knowledge of self-
awareness for participants. Employees should be able to identify their skills and weaknesses, to apply
effectively more effectively. Employees are useful in understanding where the understanding focus is on the
efforts towards improving understanding.

11. Building a pool of talented employees

The main focus of the companies building a pool of gifted employees After all, their current and future needs
to meet the needs of their employees, and a career development system will help them meet their needs.
Building a pool of talented employees is one of the purposes, benefits, and objectives of career development
goals.

12. Grow leadership

An objective of career development recommends growing the leadership skills of the employees, who will
be leading an organization by attaining the senior position. Leadership is a vast thing that needs proper
attention. Not everyone is a leader. Picking up the right pool of talents as future leaders, the organization
goes for a continuous career development process till its ultimate success.

Compensation

Compensation refers to the remuneration that an employee receives in return for his/her services to the
organization.

Compensation management is an integral part of human resource management and helps in motivating the
employees and improving organizational effectiveness.

Compensation is a comprehensive term which includes everything an employee receives in return for his
work such as wages, salaries, allowances, benefits and services.

Compensation management is the process of managing, analysing, and determining the salary, incentives,
and benefits each employee receives. Compensation managers aim to attract, retain, and engage employees
by offering broad and competitive compensation plans within the company budget.

Objectives of Compensation Management

The basic objective of compensation management can be briefly termed as meeting the needs of both
employees and the organization.

Employers want to pay as little as possible to keep their costs low. Employees want to get as high as
possible.

Objectives of compensation management are;

1. Acquire qualified personnel.

2. Retain current employees.
3. Ensure equity.
4. Reward desired behaviour.
5. Control costs.
6. Comply with legal regulations.
7. Facilitate understanding.
8. Further administrative efficiency.
9. Motivating Personnel.
10. Consistency in Compensation.
11. To be adequate.

Compensation management tries to strike a balance between these two with specific objectives;

Acquire qualified personnel

Compensation needs to be high enough to attract applicants. Pay levels must respond to the supply and
demand of workers in the labour market since employees compare for workers.

Premium wages are sometimes needed to attract applicants working for others.
Retain current employees

Employees may quit when compensation levels are not competitive, resulting in higher turnover.

Employees serve organizations in exchange for a reward. If pay levels are not competitive, some employees
quit the firm. To retain these employees, pay levels must be competitive with that of other employers.

Ensure equity

To retain and motivate employees, employee compensation must be fair. Fairness requires wage and salary
administration to be directed to achieving equity. Compensation management strives for internal and
external equity.

Internal equity requires that pay be related to the relative worth of a job so that similar jobs get similar pay.

External equity means paying workers what other firms in the labour market pay comparable workers.

Reward desired behaviour

Pay should reinforce desired behaviours and act as an incentive for those behaviours to occur in the future.
Effective compensation plans reward performance, loyalty, experience, responsibility, and other behaviours.

Good performance, experience, loyalty, new responsibilities, and other behaviours can be rewarded through
an effective compensation plan.

Control costs

A rational compensation system helps the organization obtain and retain workers’ reasonable costs. Without
effective compensation management, workers could be overpaid or underpaid.

Comply with legal regulations

A sound wage and salary system considers the legal challenges imposed by the government and ensures
employers comply.

Facilitate understanding

The compensation management system should be easily understood by human resource specialists, operating
managers, and employees.

Further administrative efficiency

Wage and salary programs should be managed efficiently, making optimal use of the HRIS, although this
objective should be a secondary consideration with other objectives.

Motivating Personnel

Compensation management aims at motivating personnel for higher productivity.

Monetary compensation has its own limitations in motivating people for superior performance. Besides
money, people also want praise, promotion, recognition, acceptance, status, etc., for motivation.

Consistency in Compensation
Compensation management tries to achieve consistency-both internal and external in compensating
employees. Internal consistency involves a payment based on the criticality of jobs and employees’
performance on jobs.

Thus, higher compensation is attached to higher-level jobs. Similarly, higher compensation is attached to
higher performers in the same job.

To be adequate

Compensation must be sufficient so that the needs of the employee are fulfilled substantially.
Direct compensation

Direct compensation is a financial (or monetary) form of compensation. Here are the four main types of
direct compensation:

Hourly

Hourly wages are often provided to unskilled, semi-skilled, temporary, part-time, or contract workers in
exchange for their time and labour.

Jobs where some employees receive hourly wage include the retail, hospitality, and construction industries.

Employees who receive hourly wages are usually able to earn overtime pay. This pay consists of any
additional hours worked outside of their set contract.

When setting your employees’ wages, you need to be compliant with the local minimum wage legislation.

Salary

Annual salaries are typically provided to most full-time employees or skilled employees and those who fill
management positions. A salary often indicates that the organization has invested in this employee for the
long-term future.

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Examples of employees who receive a salary include teachers, accountants, doctors, and retail and
hospitality managers.

Both hourly wages and salary make up an employee’s base pay or base salary.

Commission

Commission is a common form of compensation provided to employees in sales roles. It will usually be
based on a predetermined quota or target. The higher the quota reached, the higher the commission will be.

Commission rates are often based on various specified factors, including revenue and profit margins.

Some employees will work on commission only or obtain a salary with commission.

Bonuses

Companies often offer bonuses to employees based on year-end business results or the individual meeting
their set goals. Sometimes, the decision is at the manager’s discretion.

Bonuses can be paid annually, quarterly, or even after the completion of each project.

Both commission and bonuses fall under incentive pay, along with piece rate, profit sharing, stock options,
and shift differentials.

However, bonuses can also be paid without an employee meeting a particular target. For example, if the
business has had a great year and decides to reward everybody. In this case, the bonus would be classified as
variable pay.

Tips are also a common form of compensation in people-based industries, particularly hospitality.

Another umbrella of direct compensation is deferred pay which includes savings plans and annuity.

Merit pay is often given to an employee who meets their targets or performs well in their role.

Indirect compensation

Indirect compensation is still a financial form of compensation since it has a financial value. However,
employees do not directly receive it in cash form. That’s why certain types of indirect compensation are
viewed as monetary, while others are deemed non-monetary. This often varies between organizations.

Indirect compensation is often known as employee benefits or perks of the job.

 Here are some common examples of indirect compensation.

Equity package

Equity as part of a compensation package essentially means the employee is offered equity (ownership) in
the company, either through shares of stock or the option to buy such shares.

An equity package is common at start-up companies. These businesses may be low on cash or funding and
need other incentives to attract and retain employees.

Stock options
This form of compensation entitles employees to purchase a set number of shares at a fixed price after a
certain period. This is different from an equity package because the employee will not have any ownership
in the company.

Many stock options require employees to work between three to five years before they can access this
compensation.

Benefits

Typical employee benefits usually include health insurance, life insurance, retirement plans, disability
insurance, legal insurance, and pet insurance.

Healthcare is a common benefit in the US, as discussed, since it’s expensive to purchase. Whereas, in the
UK, healthcare is free on the NHS.

Retirement funds and pension plans are also common benefits that employees look for when considering a
new role at a new organization.

A survey found that 48% of job seekers in the US said they would be more likely to apply for a job that
came with good benefits. So although the base pay you offer is important, thinking about your overall
compensation package is essential.

Non-monetary compensation

Non-monetary compensation includes benefits like:

1. paid or non-paid time off

2. flexi-time
3. learning and development opportunities
4. parental leave
5. childcare
6. company cars
7. phones or laptops,
8. and meals.