HRM

Training
Development
Performance Management
Compensation
 Do Organizations Need Training

• The answer is “YES”

• However, we must know the
purpose and functions of training
before we can use it.

2
The Gap Concept

Expected Curve

1,000 Cars Gap

Performance/ 200 Cars
Actual Curve
Results
800 Cars

Time
In training terms this means we need to
develop programs to fill the Gap
3
Training Needs

The reasons for not making Determine if:

the 1,000 cars: • Expected result too high
• Not enough resources • Target achievable
• Poor machines • Is training the only way to make
• Poor staff skills it happen
• Are there other factors?

4
 3 Reasons to Consider Conducting
an Internal Needs Analysis

1. Employee obsolescence/out-dated –
• Technical advancements, cultural changes, new systems, computerization
2. Career plateaus
• Need for education and training programs
3. Employee Turnover
• Development plan for new employees

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Importance of Training
• Maintains qualified products / services
• Achieves high service standards
• Provides information for new comers
• Refreshes memory of old employees
• Achieves learning about new things; technology, products
/ service delivery
• Reduces mistakes - minimizing costs
• Opportunity for staff to feedback / suggest improvements
• Improves communication & relationships - better
teamwork
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 Benefits of Training

• Most training is targeted to

ensure trainees “learn”
something they apply to their
job.

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What is Training?

Training is a systematic process through which an

organization’s human resources gain knowledge and
develop skills by instruction and practical activities
that result in improved corporate performance.

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Differences between Training, Education &
Development

• Training is short term, task oriented and targeted on

achieving a change of attitude, skills and knowledge in a
specific area. It is usually job related.
• Education is a lifetime investment. It tends to be initiated by
a person in the area of his/her interest
• Development is a long term investment in human resources.

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Training and Learning
• Training is organization and job specific
• Instruction based
• Information sharing
• Learning is learner specific
• Interest based
• Information seeking
The ASK Concept
In the GAP concept, training is simply a means to use activities to fill
the gaps of performance between the actual results and the expected
results.
This GAP can be separated into 3 main themes
1. Attitude
2. Skills
3. Knowledge

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Five Principles of Learning

• Participation: involve trainees, learn by doing

• Repetition: repeat ideas & concepts to help people learn
• Relevance: learn better when material is meaningful and related
• Transference: to real world using simulations
• Feedback: ask for it and adjust training methods to audience.

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A Systematic Approach
to Training
Key Concepts in Preparing a Training Plan
Identify what:
• They must know - before they can perform job
• They should know - to improve performance
• Would be nice for them to know – but not necessary to
perform duties.

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Model of the Training Process

Assessment Stage Training Stage Evaluation Stage

Organizational
Needs Assessment

Task Need Assessment

Development of Design & Select Measure Training

Training Objectives Procedures Results

Development of Train Compare Results to

Criteria for Training Criteria
Evaluation
Feedback 14
Nine Steps in the Training Process

1. Assessing training needs

2. Preparing training plan
3. Specifying training objectives
4. Designing the training program(s)
5. Selecting the instructional methods
6. Completing the training plan
7. Implementing the training program
8. Evaluating the training
9. Planning future training
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 1) Assessing Training Needs

Conduct a training needs analysis by either one, or both, of the

following

• External approach (company, guests, society)

• Internal approach – using a staff opinion survey.

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 2) Preparing Training Plan
Consider whether to design a long (5-10 years), medium (3-5 years) or
short (1 year) term plan.
• Ask your self “What are we going to achieve in the time period?”
• Use a holistic approach by using a calendar for inputting your training
activities.

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Training Calendar Example

Training Area Month in the year

1 2 3 4 5 6 7...
Attitude
Train the trainer
Job competency
Sales techniques
Telephone manner
… 18
Individual Plans
• For individual personalized training, we must assess the trainees’
weakness and strengths first before setting up appropriate programs.
• Training areas maybe tailor-made.
• Trainee should receive an individual timetable for self progress.

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 3) Specifying Training Objectives

Training Objectives must be specific & measurable.

• What should trainees be able to accomplish after participating in
the training program?
• What is the desired level of such accomplishment, according to
industry or organizational standards?
• Do you want to develop attitudes, skills, knowledge or some
combination of these three?

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 4) Designing the
Training Program(s)
1. Program duration 7. Training location &
2. Program structure environment
3. Instruction methods 8. Criteria & methods for
assessing participant learning
4. Trainers qualification and achievement
5. Nature of trainees 9. Criteria & methods for
6. Support resources – materials, evaluating the program
Projector, classroom

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5) Selecting Instructional Methods
On-the job-training (OJT)
• learn while you’re working
Off -the job-training
• In house, training or classroom
• External, consultancies or attending external classes
• Independent bodies, such as government talks
• Distance learning, from books or notes
• Computer-assisted learning
• Interactive-video training
• Video conferencing, same as classroom except teachers and
students are in different locations.

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 6) Completing the Training Plan
• Target group – assess your audience
• Topic – task, skill or attitude ingredient
• Method – direct (one way communication) or indirect (discussion,
games, experimental exercises…). Important as evaluation of trainees
usually lies on the perception on what they did in the training session
• Time – length, period, breaks important to consider
• Location – away from the office?

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 7) Implementing the Training Program
Besides trainers qualifications and experience:
• Participant selection
• Group comfort - physical & psychological
• Trainer enthusiasm & skills
• Effective communication
• Feedback mechanism
• The need to learn new training skills
• Preparation by trainers

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8) Evaluating the Training

Three Levels of Evaluation

1. Immediate Feedback
 Survey or interview directly after training
2. Post-Training Test
 Trainee applying learned tasks in workplace?
3. Post-Training Appraisals
 Conducted by immediate supervisors of trainees

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 9) Planning Future Training
Last step in the training process
• After taking all evaluated comments, trainers should modify the
programs to retain good things and make suggested improvements
• Even with the same topic for different trainees, trainers should address many
parts of the training process again and consider new approaches.

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Challenges in Training
• Investment
• ROI
• Forced Attendance
• Opportunity Cost
Importance of Training
CFO: ‘What if we train them and they leave’
CEO: ‘What if we don’t train, and they stay?!’
ADDIE
ADDIE Model is a popular instructional framework used by trainers and
organizations for their training processes

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ADDIE
• Analyze
• Design
• Develop
• Implement
• Evaluate

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Scenario
There are 24 Business Analysts who are being redeployed from
Insurance vertical to Healthcare vertical in an organization. Prepare a
training plan to facilitate this transition.
Of these 9 BAs are in Pune, 7 in Chennai and 10 in Coimbatore.

1:22 PM
Analyze
Who is the audience?
• What is the demographic of your learners (age, level of education, cultural
background, etc.)?
• Are they familiar with digital learning?
• Do they have desk jobs or are they skilled laborers?
• Do they have previous knowledge of the course topic?
• How much time do they have to devote to learning?
• Are there barriers for achieving their professional goals? If so—what are
they?
• What specific skills do they have, and what are the performance gaps?

1:22 PM
Analyze
What’s the learning environment?
• Do you need to offer training in multiple locations?
• Does the course content require role-playing and hands-on skill
building?
• What’s the technical situation?
• Do your learners have access to wi-fi and smart phones?
• Are there limiting factors such as technical resources, time, and
financial investment?

1:22 PM
Analyze
What problem are you trying to solve?
• Skills deficits?
• Communication issues?
• Lack of diversity awareness?

1:22 PM
Analyze
What are the expectations?
• Are learners required to take the course?
• Do they expect this course to solve a problem, help them learn a new
skill, or move up the ladder in their company?
• Would the course address the “what’s in it for me?” question?
• What do you want learners to achieve?

1:22 PM
Analyze
How do learners prefer to learn?
• Find out whether the learners prefer face-to-face learning, hands-on
skill-building, or a mixture of both [blended learning].
• The answer to this question will help determine the best delivery
tool.

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Design
• After analysing and understanding the learners’ capabilities and
expectations, the next step is to create a customized training program
• Design is use to plan all aspects of training

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Design
• Determine learning objectives
• Create content outlines
• Develop scripts
• Select the user interface and environment (Gamification?)
• Map out time frames for each activity
• Choose the course progression (linear or based on skill achievement? Can
learners opt out of parts of the course through assessment? Can learners go at
their own pace?)
• Choose the assessment method
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Develop
• Creating the courses
• Materials
• Hadrware/ Software
• Testing
• Trial Run

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Implement
• Roll out the program
• Checkpoints
• Course outcome mapping
• Active attention to every detail

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Evaluate
• Feedback
• Was the content adequate and rich enough?
• Course delivery method
• Trainer effectiveness

• Create an evaluation report, and what can be made better in future.

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Development
A long term comprehensive and continuous process enabling an
individual achieve her/his full potential

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Employee Development
Employee Development refers to the initiatives of the employee as well
as the employer to upgrade the existing skills of an individual so that it
contributes to the development of the organization

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Focused Development
• Personal Development
• Leadership Development
• Management Development

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Why Continuous Talent Transformation?
• Change! Everywhere
• Enable to take up new assignments and new roles
• Effect of training erodes after some time

1:22 PM
Performance
• An execution of an action
• Fulfilment of a claim, promise, or request
Employee Performance
• How much an employee fulfills their job duties and executes their
required tasks. It refers to the effectiveness, quality, and efficiency of
their output.
• Performance also contributes to the assessment of how valuable
an employee is to the organization.
Strategy and Performance Management
Performance Management is used to ensure that employees' activities
and outcomes are congruent with the organisation's objectives and
entails specifying those activities and outcomes that will result in the
firm successfully implementing the strategy
Types of Performance
• Typical Performance
• Maximum Performance
Effective Performance Management
An effective Performance Management process establishes the groundwork
for excellence by:
• Linking individual employee objectives with the organisation's mission and
strategic plans. The employee has a clear concept on how they contribute
to the achievement the overall business objective,
• Focusing on setting clear performance objectives and expectations through
the use of results, actions and behaviours,
• Defining clear development plans as part of the process, and
• Conducting regular discussions throughout the performance cycle which
include such things as coaching, mentoring, feedback and assessment.
Performance Management
An ongoing process of identifying, measuring and developing the
performance of individuals and teams aligning their performance with
the organization’s goals
Six Elements
• Direction Sharing
• Goal Alignment
• Ongoing performance monitoring
• Ongoing feedback
• Coaching and developmental support
• Rewards and Recognition
Performance Appraisal
Evaluating an employee’s current and/or past performance relative to
her/his performance standards
3 step process
1. Setting work standards
2. Assessing the employee’s actual performance relative to those
standards
3. Providing feedback to the employee with the aim od helping to
eliminate performance deficiencies or to continue to perform above
par
Goal Setting
• The process of breaking down the organization’s objectives to map
with individual job roles
• Mutually agreed goals
• Task related and Contextual related
• SMART
Goal Setting
• MBO
• OKR
MBO
Management by objectives
(MBO) is a strategic
management model that aims to
improve the performance of an
organization by clearly defining
objectives that are agreed to by
both management and
employees
OKR
The purpose of Objectives and Key Results (OKR) are to connect
company, team, and personal goals to measurable results while having
all team members and leaders work together in one, unified direction.
OKR
• Objectives: Define 3-5 key objectives on company, team or personal
levels. Objectives should be ambitious, qualitative, time bound and
actionable by the person or team.
• Results: Under each Objective, define 3-5 measurable results. Key
results should be quantifiable, achievable, lead to objective grading
and be difficult, but not impossible. OKR results can be based on
growth, performance, or engagement. Often they are numerical, but
they can also show if something is done or undone, so a binary 0 or 1.
What to appraise
• Results
• Behaviour
• Traits
When to appraise
• Continuous
• Annual/ Half yearly
• Appraisal Cycle
Who should appraise
• Self
• Manager
• Peers
• Clients/ Customers
• Subordinates
• Committee
360 degree appraisal
Techniques of Appraisal
• Graphic Rating Scale Method
• Alternation Ranking Method
• Paired Comparison Method
• Forced Distribution Method
• Critical Incident Method
• Narrative Forms
• Behaviorally Anchored Rating Scales
• Electronic Methods
Graphic Rating Scale Method
A scale that lists a number of traits and a range of performance for
each. The employee is then rated by identifying the score that best
describes his or her level of performance for each trait.
Alternation Ranking Method
Ranking employees from best to worst on a particular trait, choosing
highest, then lowest until all are ranked.
Paired Comparison Method
Ranking employees by making a chart of all possible pairs of the
employees for each trait and indicating which is the better employee of
the pair
Forced Distribution Method
Similar to grading on a curve, predetermined percentages of ratees are
placed in various performance categories
Forced Distribution
It is also called stack ranking, forced ranking, and rank and yank.
Pioneered by GE's Jack Welch in the 1980s, it has long been a
controversial practice due to its negative effects on employee morale
and potential for bias and discrimination
Critical Incident Methods
Keeping a record of uncommonly good or undesirable examples of an
employee’s work-related behavior and reviewing it with the employee
at predetermined times
Narrative Forms
Written appraisal.

An paragraph (essay) about the employee highlighting good and poor

performances
Behaviorally Anchored Rating Scales
Combines the benefits of narrative, critical incidents and quantified
ratings by anchoring a quantified scale with specific narrative examples
of good and poor performance.

BARS
Electronic Methods
• Sensors and Cameras
• Remote Access
• Wearables
Balanced Score Card
Errors in Appraisal
• Unclear Standards
• Recency Error
• Halo Effect
• Stereotyping
• Central Tendency
• Strictness/ Leniency
• Bias
Appraisal Communication
• Direct discussion
• Electronic/ Paper-based
Appraisal Interview
An interview in which the supervisor and subordinate review the
appraisal and make plans to remedy deficiencies and reinforce
strengths
Four Situations
• Satisfactory – Promotable
• Satisfactory – Not promotable
• Unsatisfactory – correctable
• Unsatisfactory - uncorrectable
How to Conduct Appraisal Interview
• Preparation – collect data, anecdotes
• Planning the solution
• Talk objective
• No personal
• Encourage dialogue
• Get agreement
Communicating Bad News
• Insubordination - defiance of authority; refusal to obey orders
• Handling Defensive subordinate
• Criticizing a subordinate
What next
• Warning
• PIP
• Counselling
• Training
Errors in Appraisal
• Unclear Standards
• Recency Error
• Halo Effect
• Stereotyping
• Central Tendency
• Strictness/ Leniency
• Bias

1:24 PM 90
Unclear Standards
• What is ‘good’ performance?
• If only I knew I was supposed to do that (this way)
• You never told me that. I thought it was…
• Lack of proper SMART goals
• Forced down goals
Recency Effect
• Events that took place lately would stay afresh in the memory of
evaluator
• Earlier significant events may be forgotten
• This can be overcome by continuous appraisal or recording
contributions
Halo Effect
• Occurs when a supervisor’s rating of a subordinate on one trait biases
the rating of that person on other traits
Stereotyping
• Stereotyping occurs when managers generalize about employee’s
performance based on a group
Central Tendency
• Managers with the intention of avoiding conflict, play it safe, by
rating employees in the middle of the rating scale.
Strictness/ Leniency
• Based on the personality trait of the manager
• Strictness – stinginess in rating
• Leniency – generous in rating
Bias
• Whether manager’s like an employee or not. Personal bias or
preferences creep in the rating.
• They compare employee’s performance with their personal standards
Career
The occupational positions a person can have over many years
Career Management
The process for enabling employees to better understand and develop
their career skills and interests, and to use these skills and interests
most effectively
Career Development
The lifelong series of activities that contribute to a person’s career
exploration, establishment, success and fulfilment
Career Planning
The deliberate process through which someone becomes aware of
personal skills, interests, knowledge, motivations, and other
characteristics and establishes action plans to attain specific goals
Promotion
• Past performance based
• Future potential based
Peter Principle
The tendency in most
organizational hierarchies is for
every employee to rise in
the hierarchy through
promotion until they reach a
level of respective
incompetence
Employee Compensation
All forms of pay or rewards going
to employees and arising from
their employment

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Total Rewards
All the benefits an employee
derives by virtue of employment
in an organization

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Financial Payments
• Direct Financial Payments • Indirect Financial Payments

Wages, Salaries, Incentives, Financial benefits - insurance,

Commissions, Bonuses reimbursements

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Compensation is
• a system of rewards that motivate employees to perform
• a tool used by organization to foster values, culture and behavior
• an instrument that enables organization to achieve its objectives

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Compensation should be
• Adequate (minimum)
• Equitable (fair)
• Balanced (monetary/ non-
monetary)
• Cost effective (no overpay)
• Secure (needs to be met)
• Incentive Providing
(motivating enough)
• Acceptable (unambiguous)

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How?
• …. is the worth of a job calculated?
• … do I pay my employee?
• … is the rate of compensation calculated?

1:25 PM
What Determines Pay?
• Law
• Union
• Strategy
• Equity
Deciding Compensation Rates
• Market Based Approach
• Job Evaluation Method

1:25 PM
Market Based Approach
• Salary decision in comparison with similar jobs in the market
• Formal or Informal surveys

1:25 PM
Job Evaluation
• A systematic comparison done in order to determine the worth of
one job relative to another
• Jobs that require greater qualifications, more responsibilities and
more complex job duties should receive more pay than job with
lesser requirements

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Job Evaluation
• Compare jobs by focusing on compensable factors
Criteria used to
• Identify compensable factors evaluate a job

• Eliminate wage inequities and to establish a basis for sound salary

and wage-structure.

1:25 PM
Compensable Factor
• A fundamental , compensable element of a job, such as skills, effort,
responsibility, and working conditions

1:25 PM
Job Evaluation
• JD/JS
• Job Grading: ranking of jobs as a result of job analysis
• Job Classification: grouping jobs according to their worth
• Job Assessment: ascription of monetary value on the basis of job
grading

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Benchmark Jobs
• Benchmark Jobs are representative of the entire range of jobs the
employer need to evaluate

1:25 PM
Job Evaluation
Two ways:
• Assumptions and unscientific decisions
• Compensable factors

1:25 PM
Methods of JE
• Ranking
• Classification
• Points Rating
• Factor Comparison

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Ranking Method
• Worth of Job Descriptions
• Ranked in the order of complexity, responsibility and effort (demand)
• Identify two extreme jobs (Min – Max)
• Place all other jobs in between accordingly

1:25 PM
Classification Method
• Limited Number of job grades are established
A job grade is a grouping that encompasses
positions with the same or similar values in order to
assign compensation rates and structures

• Grades are defined in terms of general functions and qualifications

required.
• Match JD with grades

1:25 PM
Broadbanding
• Consolidating salary grades and ranges into just a few wide levels or
‘bands’, each of which contains a relatively wide range of jobs and
salary levels

1:25 PM
At NTPC (sample)
Scale Pay Scale (Rs.) Representative Designation
Code
S1 16000-35500 Jr. Controller/Jr. Foreman/ Jr. Supervisor/Jr. Accountant

S2 17000-37000 Assistant Controller Gr.II/ Foreman Gr.II/Supervisor Gr. II Accountant

Gr.II/Private Secretary Gr. II

S3 18500-40000 Assistant Controller Gr.I/ Foreman Gr. I/Supervisor Gr.I/ Accountant Gr.
I/Private Secretary Gr.I

S4 20000-42500 Sr. Asst. Controller/Sr. Fore- man/Sr. Supervisor/Sr. Accountant/Sr.

Private Secretary

SG 20500-44500 Selection Grade (w.e.f 25.1.2001)

1:25 PM
Point Rating Method
• Create important criteria and subcriteria
• Eg: Timeline adherence (Job completion time)
• These criteria (also called factors) are given points, according to the
degree of complexity
• Worth of job is calculated arithmetically

1:25 PM
Common Factors
• Skill
• Education and training required, Breadth/depth of experience required,
Social skills required, Problem-solving skills, Degree of discretion/use of
judgment, Creative thinking
• Responsibility/Accountability
• Breadth of responsibility, Specialized responsibility, Complexity of the work,
Degree of freedom to act, Number and nature of subordinate staff, Extent of
accountability for equipment/plant, Extent of accountability for
product/materials
• Effort
• Mental demands of a job, Physical demands of a job, Degree of potential
stress

1:25 PM
Factor Comparison Method
• Compare two or more jobs (internal or external)
• The degree to which each compensable factor is present in each job
• Find the relative worth by comparative analysis

1:25 PM
A few more methods of JE
• Time Span of Discretion Method
• Decision Band Method
• Direct Consensus Method
• Guide Chart Profile Method (Hay)
• Urrwick-Orr Profile Method

1:25 PM
Time Span of Discretion Method
• The time span of decision with reference to a job profile is considered
as the basis
• The longest possible time for which discretion could be exercised
without direct managerial review
• Worker: few hours/ C-suite: few years

1:25 PM
Decision Band Method
• Bands are created according to the decision making authority and
power
• Strategic/ Tactical/ Operational Decisions
• Banding –> Grading –> Sub-Grading

1:25 PM
Direct Consensus Method
• Between workman and evaluator
• Reaching a consensus about the worth of the job

1:25 PM
Guide Chart Profile Method
• Also known as Hays method
• Widely used in managerial jobs
• Know-How, Problem Solving, Accountability and Working Conditions
• Compares internal job evaluation with external market rates

1:25 PM
Urwick-Orr Profile Method
• Point & Ranking Method AND consensus method

1:25 PM
1:25 PM
Pay Plan
• In a market competitive pay plan, the compensation for a job reflects
the job’s value in the company, as well as what other employers are
paying for similar jobs in market place

• Point method (Point-factor method)

1:25 PM
Creating a Market-Competitive Pay Plan
• Choose Benchmark Jobs
• Select Compensable Factors
• Assign Weights to Compensable Factors
• Review JD and JS
• Evaluate the Job
• Draw the Current (Internal) Wage Curve
• Conduct a Market Analysis: Salary Surveys
• Draw the Market (External) Wage Curve
• Compare and Adjust Current and Market Wage Rates for Jobs
• Develop Pay Grades
• Establish Rate Ranges
• Address Remaining Jobs
• Correct Out-of-Line Rates

1:25 PM
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Salary Surveys

1:25 PM
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