3.Mod.Hrm

HUMAN RESOURCE MANAGEMENT 2nd sem BBA ISBR
MODULE NO. 3: INDUCTION, TRAINING AND COMPENSATION
MEANING, NEED, FEATURES AND PROCESS OF INDUCTION. PROBLEMS
FACED DURING INDUCTION. ESSENTIALS OF SUCCESSFUL INDUCTION.
MEANING OF INDUCTION MANUAL AND CHECKLIST. MEANING, NEED,
FEATURES, OBJECTIVES AND SIGNIFICANCE OF TRAINING.
DIFFERENCES BETWEEN TRAINING AND INDUCTION. STEPS IN
TRAINING. METHODS OF TRAINING. A BRIEF DISCUSSION OF
KIRKPATRICK MODEL. MEANING AND SIGNIFICANCE OF CAREER
DEVELOPMENT. MEANING, NEED AND TYPES OF COMPENSATION.
DIFFERENCES BETWEEN COMPENSATION AND REMUNERATION.
MEANING AND COMPONENTS OF CTC. MOTIVATION - MEANING,
IMPORTANCE, THEORIES OF MOTIVATION.

INDUCTION
According to Michael Armstrong, “Orientation or induction is the process of receiving
and welcoming an employee when he first joins a company and giving him the basic
information he needs to settle down quickly and happily and start work”.
“Induction is the process of receiving and welcoming an employee when he first joins
a company and giving him the basic information he needs to settle down quickly and
happily and start work.”
An induction is the process used within many businesses to welcome new employees
to the company and prepare them for their new role.
Induction is the process of introducing a new employee to his/her job and organization
and giving him all the necessary information required by him/her to start his work.
OBJECTIVES /FEATURES OF INDUCTION
 To Build confidence about self and the organization
 To Create the feeling of belongings and loyalty
 To Familiarize the new employee with the jobs and the job environment
 To Generate favourable attitudes with in the new employee about peers, superiors,
subordinates and the organization
 To Assist the new employee to contribute to organizational success more quickly
 To ensure that the new comer do not from false impression and negative attitude
towards the organization.
 Information him about training facilities.
 Creating the feeling of social security.
 Indicating the standards of performance and behaviour expected of him
 To reduce the possibility of a new employee being exploited by an evil co worker
COMPONENTS/ELEMENTS IN AN INDUCTION PROGRAMME

o The greeting of new employees – the new employee should have someone
designated to meet them on arrival, to carry out the necessary personal information
checks and to put in place any necessary security arrangements.
o Information – the new employee should be given information about the
company including an overview of the company’s structure, history, products,
services and other aspects of the business.
o The job – in terms of its content, how the department fits into the company as a
whole, the expected key performance indicators, how these are evaluated and an
explanation of the employee’s work colleagues including the line of reporting.
o The main terms and conditions of employment – a Written Statement of
the Main Terms and Conditions of Employment should be issued to new staff
during the induction process to include the fundamental elements of the
employment relationship i.e. pay, hours of work, holiday, sickness and notice of
termination.
o Company rules – an Employee Handbook is normally developed by professional
organisations and the rules, policies and procedures within this document should
be thoroughly explained to the new employee.
o Security – in relation to access to the workplace, passwords, document

authorisations etc.
o Health and safety – giving the employees skills and knowledge needed to do
their job safely. This will include any risk assessments for employees who describe
any physical or other issues which will affect their ability to do the job in a
particular way.
o Data protection – an explanation of the information and documents kept in
relation to the new employee should be explained.
o Training and development – should include an explanation of any
performance appraisal systems in place. Employers should assess whether the new
employee needs any short, medium or long term training for them to successfully
perform their job to the highest level.
o Employee benefits and facilities – will include information on any company
benefits, such as private medical insurance, death in service benefit etc.
o Employee representation – to include any information on any Trade Union
recognition or membership procedures that are in place.
o Layout of the workplace – to include a tour of the offices and an assimilation
of the facilities within the building. On some occasions employees will have
particular requirements especially if they are school leavers, female employees
returning after maternity leave, someone moving to a completely new position,
employees who are disabled or employees returning to work after a long period of
unemployment. In such cases specific attention should be paid within the
induction process to the individual requirements of these categories of employee.
TYPE / PHASES IN INDUCTION.

o General induction: This phase of induction conducted by HR department. In
this phase, the focus is on informing the employee about mission, vision,
philosophy of the organization. This will make employee clear about the main
purpose of the organization. In this phase, he/ she is also informed about the
facilities, remuneration policy, promotion related procedure, grievance
management, etc.
o Specific induction: Specific induction is the responsibility of employee's
supervisor or as we all know the "boss". The main focus in specific induction is to
provide information about his/ her job. The employees are introduced to their job.
Working place, condition, colleagues, resources he/ she will have, duties, authority,
responsibility related information are provided to employee in this phase. It will
help new employee to adapt to his working environment.
o Follow up induction: The third phase is called follow up induction. The purpose
of this is to know whether the employee understood all information given in above
two phases or not. Because, if he/ she doesn't understand organization fully, then
it will be tough for them to fulfil his/ her duties and responsibilities effectively. This
phase is done by superior or any specialist in industry. It will also evaluate the
effectiveness of whole induction program.
PROCEDURE OF INDUCTION TRAINING
 Warm Welcome: The foremost step of this training must be to provide a warm
welcome to their newly recruited employees, i.e., providing them starters at the
time of reporting and try to make them comfortable with the company’s
environment.
 Fulfilling Administrative Requirements: Thereafter, after providing proper
refreshment to the employees the next step should be the completion of the
formalities of the administration related work, i.e., providing information about
the probationary period, leaves, policies and procedures of the company, etc.
 Conducting departmental Orientation: Departmental orientation implies
introducing the company’s departments and their functions to the employee. As
the new employees are obviously concerned about the work they have to do, the
team leader with whom they have to work with. It also includes providing the
geographical layout of their workplace and other areas such as canteen, restroom,
etc. Such departmental orientation is performed by the immediate supervisor.
 Follow-up Interview: At last, after all formalities are fulfilled a follow-up
interview is conducted after few weeks of the joining. Such an interview is
conducted by the personnel specialist or by the supervisor. The objective behind
conducting such a follow-up interview is to identify:
1. Whether the employee is satisfied with the organization or not?
2. Whether supervisor is satisfied with the employees?
PROBLEMS OR MISTAKES MADE IN EMPLOYEE INDUCTION

 Being unprepared
 Overwhelming information
 Overwhelming paperwork
 Impersonal experience
 Small introductions
 Unclear responsibilities
 Language assumptions
 No feedback
 Training stops
 No induction platform
Being unprepared: How do you think it feels to a new employee when they turn
up on their first day and no-one is really ready? If the organisation cannot be
prepared for their first day, what is the chance the organisation will be prepared
for a performance review, promotion discussion or salary review? In the mind of
the new employee, they will already be worried. You should always be prepared for
employee induction. If a new employee is coming to start a new role, it’s the
organisation’s responsibility to ensure the new starter has everything they need to
get going as quickly and seamlessly as possible, including;
 Uniforms
 Equipment (laptops, safety equipment, tools, etc…)
 Access (login details or access codes to company systems)
 Workspace (clean, tidy and accessible)
Overwhelming information: When you overload a new employee with too
much information, it can result in them feeling disheartened. They might start to
wonder if they are a good fit for the role. So try to avoid induction consisting of a
massive day one. Instead, think of induction as a process occurring over a few
weeks. This doesn’t mean your new employee won’t be productive in the first few
days. However, the shortest path to productivity typically isn’t to dump so much
information on the new employee that they cannot think clearly! Learn a little,
practice a little, implement a little and repeat.
Overwhelming paperwork: No new employee wants to start off their new role
with a huge amount of paperwork. New employees want to be doing more exciting
things on their first day! First, update your HR and L&D platforms to automate
your paperwork as much as possible. Avoid asking employees to repeatedly input
the same information again and again for each form. Second, stagger the
paperwork a little over the first 2-3 days, rather than in the first hour of the first
day.
Impersonal experience: A second common mistake for organisations which
view employee induction as ‘tick a box’ is that the experience feels impersonal. You
want your new employees to feel like they are part of the team, not just a payroll
number.
Small introductions: This ties in exactly with our next mistake – not
introducing your new employee to the team and wider organisation. You want new
starters to feel at home as soon as possible. So ensure everyone knows who they
are, why they are there and that they are welcomed.
Unclear responsibilities: If the new starter finishes the new employee
induction or on boarding process without knowing their main responsibilities of
the new role, something wasn’t made clear to them. And that fault is on you. You
want them to have a firm understanding of how the team operates, how their role
fits into that and what their key goals will be throughout their time at the company.
Language assumptions: This mistake isn’t to do with the conversation skills of
your new employee! Rather, your organisation might not be using industry-specific
language when referring to common processes, tools or even knowledge. Don’t
assume your new employee knows what you’re talking about.
No feedback: Feedback is key for any organisation. Don’t hassle new employees
with feedback questionnaires on the first day, but do seek out feedback from them.
Start with a few brief questions at the end of the induction process and again at the
end of their probation period. Seek out some honest feedback on how they found
the process.
Training stops: If the only training an employee receives is in the first few days,
then you are setting up for failure. Just because the induction process is over, this
doesn’t mean that new employees don’t’ require further assistance with their
development. Ensure there’s always a way for them to continue learning, whether
that’s about the organisation or specific to their job role.
No induction platform: As you can probably tell from the above, it’s easy to ‘tick
the box’ on employee induction and simply spend a lot of time for no result. Having
a dedicated induction platform can certainly help you avoid these mistakes.
ESSENTIALS OF SUCCESSFUL INDUCTION.

 Prepare a checklist before induction programme: Think back to your first
day at work and prepare a checklist of items that an employee would need on
his/her first day such as computer set-up, email set- up, stationery and other items.
A few things that could be part of the induction checklist could be – Introduction
to team leader or direct manager as well as fellow team members, Work timings,
HR Policy and information regarding leaves and attendance and Training for skills
that an employee may require for his work
 An Effective Induction programme covers employee training: To make
an induction programme work wonders for your company, you have to think
beyond the usual ‘introductions’. Making sure that the employee is properly trained
and his responsibilities are clearly mentioned makes the employee be productive
faster. A simple job description can work miracles for your new joiner.
 Encourage social interaction with your team: First days on the job are
usually awkward as working in a new and strange place can be intimidating.
Research proves that social connections at work boost employee morale and
increases productivity within teams. For a successful on-boarding process, new
employees must feel welcome in their new team.
 Discuss Company Goals and Mission: It is vital that new recruits learn about
the company’s goals and mission as soon as they join the company. Clearly
communicating the company’s goals during the on-boarding process helps new
recruits work towards those collective goals as soon as they join the company.
 The organization’s philosophy, goals, goods or services: Understanding of
organization’s philosophy and goals is essential part of induction training as the
new employee should be aware of his or her career path as per company’s future.
 Personnel policies and practices: Individual behaviour is ordained as per
company’s policies and practices which are influenced by the prevalent culture in
the organization. Updating new employees under induction training process is also
essential for their quick adoption.
 Ask for Employee for feedback on the Induction programme: The best
way to create an effective induction process and improve is asking your recent hires
to provide feedback on the programme. Feedback from your recent hires can give
your insight on what changes need to be made and how the induction
programme can be made more effective for your next hires.
NEED AND IMPORTANCE OF INDUCTION

 Reducing Anxiety of New Employees – An employee’s first impression is the
last impressions. If a new employee is made to feel welcome and comfortable in the
new environment, particularly by his immediate superior and co-workers his
anxiety would reduce and he would have the positive attitude towards the
organisation and his job.
 Reducing Reality Shock – Every employee has some expectations when he joins
his new job and when these expectations do not match with the real situation, the
employee experiences a reality shock. An effective orientation programme helps in
reducing these reality shocks by providing more real expectations to the new
employees.
 Reduces Employee Turnover – If a new employee gets the impression of being
unwanted or ineffective he may react to these feelings by resigning. Turnover is
generally high during this initial period and the effective orientation in this phase
can reduce this costly reaction.
 Accommodating Employees – The orientation programme helps the new
employees to accommodate with the existing employees by developing the
understanding on the various aspects relating to the job with which the new
employee is expected to confront.
 Familiarizing the New Employees – Good orientation saves time because the
employee would become familiar with his work, supervisor, and coworkers.
Explaining the functioning of the organisation and the department during
orientation will save the colleagues’ valuable time later in explaining the job.
 Developing Realistic Expectations – Effective orientation develops realistic
expectations by letting the employee know what is expected from him in terms of
values, attitudes, work procedures, norms of behaviour and dress code. All
organisations have their own set of values, beliefs, code of conduct which expects-
their employee to follow. If the new employee learns and imbibes these during
orientation it would be much easier for him to incorporate them in his work values.
 Increases Enthusiasm – Through effective orientation the newcomer is made
aware of his job and how his job fits with the total organisation; how he can
contribute to the organisational effectiveness and to whom he may look for in case
of any problem. This creates more loyalty and enthusiasm in the mind of the
newcomer.
INDUCTION MANUAL AND CHECKLIST.

An employee induction manual is a document that consists of workplace guidelines,
rules, and regulations for a specific company.
COMPONENTS OF AN INDUCTION MANUAL AND CHECKLIST.

 Personal details: Like any other official documentation, the induction manual
template has a personal information section. The new hires complete the form by
providing their background information. The hire hires fill them; names, bank
details and next of kin, telephone, and an emergency number. The personal
information helps the company locate relatives during emergencies, beneficiaries,
and locate the employee in case of fraud.
 Mission, vision, and goals: The organization's mission, vision, and goals
should be explained. The employee becomes aware of why the company was started
and why the company is operating under some rules to attain specific goals.
 Terms of contract: The employee is informed of the type of contract they are
signing, consequences of termination, benefits of the agreement, and the duration.
The employee is informed of the department they will be working in and the tools
they will be interacting with within their daily routines. By signing, the employee
assures that they will abide by everything contained in the agreement.
 Workplace safety and health: The induction manual contains information
about the employee's wellbeing, health, and safety while on duty. This is essential
because accidents are uncertain, and it's their right to get protection from the
employer.
 Map: The employee is introduced to a new environment, and some organizations
have several departments located in different areas. The map will guide the
employee in finding the workstation and other departments with ease.
 Business plan: The employee needs to know the company's ongoing and plans.
The plan outlines the company's strategies, and it acts as a compass direction for
the employees. They understand the order they will take concerning the company's
goals.
 Work schedule: The Company needs to introduce the recruits to their work
schedule to avoid time wastage and confusion. The work schedule will act as a
timetable for the recruits.
 Routine: The Company’s management has to introduce the new hires to the
routine. When they adapt to the routine, it is possible to strategize and assign them
to new duties. Confusion and misunderstanding between supervisors and
employees are minimized.
 Training: The employee induction manual provides an outline of how training is
conducted and the time. The training team updates the new hires when they should
be available for training, brief the management to provide the required resources,
and update supervisors.
TRAINING
Training is next to selection. A worker selected / appointed in an Organization needs
proper training. This enables him to perform the job correctly and with efficiency.
Similarly, a manager needs training for promotion and for his self-improvement.
Employees are now given training immediately after appointment and thereafter from
time to time. Training is used as a tool / technique for management/executive
development. It is used for the development of human resource working in an
Organization. In fact, training is the watchword of present dynamic business world.
Training is necessary due to technological changes rapidly taking place in the
industrial field. It is also essential along with the introduction of new techniques, new
methods and so on. It is necessary for developing overall personality of employees and
for developing positive attitude towards fellow employees, job and Organization where
he is working.
Meaning and Definitions
Training means giving information, knowledge and education to develop technical
skills, social skills and administrative skills among the employees.
According to Edwin Flippo, training is "the act of increasing the knowledge and skill
of an employee for doing a particular job."
Training is the process for providing required skills to the employee for doing the job
effectively, skilfully and qualitatively.
Dale S. Beach, "Training is the organized procedure by which people learn knowledge
and Improve skill for a definite purpose.
Training implies a process of upgrading an individual’s knowledge, skills and
competencies. When an employee joins the organization, he/she is given job-related
training to ensure satisfactory performance of the tasks and duties assigned, so that
the employee can contribute more to the organization.
On the other hand, development has a long-term view. It is all about preparing
the employee for the current as well as future jobs, by providing them with learning
opportunities to increase their capacities, to undertake more challenging and complex
tasks.
TRAINING PROCESS
 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.
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. 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. 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. 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. 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.
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.
OBJECTIVES OF TRAINING:
 To provide job related knowledge to the workers.
 To impart skills among the workers systematically so that they may learn quickly.
 To bring about change in the attitudes of the workers towards fellow workers,
supervisor and the organization.
 To improve the productivity of the workers and the organization.
 To reduce the number of accidents by providing safety training to the workers,
 To make the workers handle materials, machines and equipment efficiently and
thus to check wastage of time and resources.
 To prepare workers for promotion to higher jobs by imparting them advanced skills
FEATURES OF TRAINING
 Specific Dimensions: Training is a procedure that has clear and definite

dimensions. It has well-defined beginning and endpoints. Training activities are
organised in such a manner that there is a noticeable progressive development and
movement of the process itself. All the activities in the training process are
coordinated cordially.
 Planned Sequence of Events: Training is a planned series of activities that
make it possible for the trainees to do things that they have not done earlier. The
whole process is supported by the programme and has certain learning objectives.
 Makes Optimal Use of Opportunities for Learning: It can also be regarded
as the process of providing ample opportunities for the employees to learn and
grow. It aims to increase the enthusiasm of the employees by polishing their skills
to do a particular task.
 Promotes Behavioural Changes: Training helps in bringing a positive change
in the behaviour of employees by imparting special skills and helping them to
perform better. It helps in improving the quality of the social and personal of
employees, which enhances their work quality and leads to self-improvement.
Thus, it expands its area of applicability much broader than the work environment.
 Enhancing Capabilities: Training maybe not be restricted to acquiring a
particular skill for doing a particular assigned task, but at the same time it is related
to the development of the overall capability to manage complex situations and
problems. A trainee should be aware of how to develop and by using his wisdom,
to accomplish the given task efficiently.
 Exploring the Inner Self: The most important aspect of the training is that it
not only improves the existing skills but also explores the hidden talent within the
employees and motivates them to perform well. It makes the employees aware of
their strengths & weaknesses. It also aims to help the employees to overcome their
weaknesses and directs them to self-development and growth.
 Removes mental blocks: Training helps in clearing the doubts and insecurities
of trainees about their job so that they can put their best possible effort to make
maximum utilisation of their potential abilities.
 Gives intended as well as unintended results: Training helps not only in
achieving those benefits that are expected but sometimes it also yields many
benefits which are not intentionally meant to be achieved. The benefit from the
training may vary from organisation to organisation and individual to individual
depending upon the type of training.
 Establishes Relationship between Theory and Practice: Training makes it
possible for the trainees to link the acquired theoretical knowledge and practical
application of their knowledge. Training facilitates this by making the employees
aware of the processes through which they can apply their learned capabilities to
their work.
METHODS OR TYPES OF TRAINING
ON-THE-JOB TRAINING
The On-the-Job Training is a technique wherein the workers, i.e., operative staff, is
given the direct instructions to perform their jobs on the actual work floor.
On-the-Job training is based on the principle of “learning by doing”, i.e. the workers
learn the job while performing it within the actual work environment. This type of
training is beneficial for both the workers and the organization.
The workers can learn the skills that are required to be performed in the actual work
conditions and also gets accustomed to the working environment.
On-the-Job Training Methods
1. Coaching: Under this method, the superior or an experienced staff gives
instructions to the workers to perform a job. It is one-to-one training designed for
the workers where they can find answers to their queries through the instructions
and demonstrations given by the superior.
2. Mentoring: This training is given to the managerial level people, wherein the
senior or the manager gives instructions to the immediate subordinate to carry out
the day to day functioning. It is again a one-to-one training method, where the
manager is considered as a mentor to the subordinate and guides him in the

situations of difficulty.
3. Job Rotation: Under the job rotation, an employee is often shifted to the other
related jobs, with the intention to make him well versed with other job
backgrounds. This helps him to escape the boredom caused by performing the
same kind of work again and again and also helps in developing a rapport with
other people in the organization.
4. Job Instructional Training: Under this training, a trainer designs a step by step
training program, wherein the worker is given the instructions to perform the job
as required. Firstly, the overview of the job along with the desired results is
explained to the trainee, and then the skills required for the job is demonstrated by
the trainer. Then a worker is allowed to perform the job as per his acquired skills
or expertise, and then finally the workers are asked to give their feedback and ask
for any query arising out of the training program.
5. Understudy: Here, the superior gives training to the subordinate as an
understudy or an assistant who is likely to perform a superior’s job in case of the
vacancy arising out of superior’s retirement, transfer, promotion or death.
6. Apprenticeship: This type of training is generally given to the people in crafts,
trade and technical fields that require a long-term learning before they actually
gain the proficiency in their respective disciplines. This training is a blend of
classroom and on-the-job training and is conducted under the close supervision.
This can be extended up to 3 to 4 years as apprentices need to go through the
learning process till they become an expert in their fields. E.g. the craftsmen job,
mechanic, electrician, plumber, tool maker, etc. have to undergo this type of
training.
OFF-THE-JOB TRAINING
The Off-the-Job Training is the training method wherein the workers/employees
learn their job roles away from the actual work floor.
Under off-the-job training, the worker concentrates only on the learning of a job and
is not accountable for the production
Simply, off-the-job training comprises of a place specifically allotted for the training
purpose that may be near to the actual workplace, where the workers are required to
learn the skills and get well equipped with the tools and techniques that are to be used
at the actual work floor.
OFF-THE-JOB TRAINING METHODS

1. Special lectures: This is also called as classroom training wherein the employees
are given lectures about the job requirements and the necessary skills required for
implementing the job. There is generally a classroom or a workshop wherein the
complete job knowledge is given to the workers by the experts or specialists from
the professional institutes. The main purpose of this training is to make the
employees well informed about their job roles and discussing their queries arising
out of the lectures.
2. Simulation: Under this training, the trainee is required to learn the operations of
machines and equipment that are reasonably designed to look similar to those
installed at the actual work floor. This is one of the most common method of
training wherein the worker learns to operate tools and machinery that look alike
to those, they would be using in the actual work environment.
3. Vestibule Training: This type of training is specifically given to the technical
staff, office staff and the employees who learn the operations of tools and
equipment assembled at a place away from the actual work floor. This type of
training is conducted to give the real feel to the trainees that they would be
experiencing at the actual plant.
4. Case Studies: Under this method, the trainees are given the situation or a
problem in the form of a case study, and are required to solve it as per their learning
from the training program.
5. Role playing: This type of training is essential in case of customer services. Under
this, the trainees assume roles and enact as per the given situations. It is also called
as socio-drama or psycho-drama, wherein the employees act as if, they are facing
the situation and have to solve it spontaneously without any guidance.
6. Management Games: Under this method, the trainees are divided into groups
and then they are presented with the simulated marketplace or the situations,
wherein they are required to apply their learning and solve the problems
accordingly.
NEED/IMPORTANCE/SIGNIFANCE OF TRAINING AND DEVELOPMENT

 Higher Productivity: It is essential to increase productivity and reduce cost of
production for meeting competition in the market. Effective training can help
increase productivity of workers by imparting the required skills.
 Quality Improvement: The customers have become quality conscious and their
requirement keep on changing. To satisfy the customers, quality of products must
be continuously improved through training of workers.
 Reduction of Learning Time: Systematic training through trained instructors
is essential to reduce the training period. If the workers learn through trial and
error, they will take a longer time and even may not be able to learn right methods
of doing work.
 Industrial Safety: Trained workers can handle the machines safely. They also
know the use of various safety devices in the factory. Thus, they are less prone to
industrial accidents.
 Reduction of Turnover and Absenteeism: Training creates a feeling of
confidence in the minds of the workers. It gives them a security at the workplace.
As a result, labour turnover and absenteeism rates are reduced.
 Technology Update: Technology is changing at a fast pace. The workers must
learn new techniques to make use of advance technology. Thus, training should be
treated as a continuous process to update the employees in the new methods and
procedures.
 Effective Management: It develops skills among workers and prepares them for
handling present and future jobs. It helps in reducing the costs of supervision,
wastages and industrial accidents. It also helps increase productivity and quality
which are the cherished goals of any modern organization.
 Increased Morale: The objective of the training is to change the attitude and
outlook of the workers besides increase in knowledge and skills. A trained worker’s
morale increases because of the support and encouragement he gets from his
superior at the workplace.
 Chances of promotion: Employees acquire skills and efficiency during training.
They become more eligible for promotion. They become an asset for the
organization.
 Less supervision- A well trained employee will be well acquainted with the job
and will need less of supervision. Thus, there will be less wastage of time and
efforts.
ADVANTAGES OF TRAINING
 Improves The Performance: Training improves the performance of the

employees. It helps them to become more skilled and more productive.
 Reduces Wastage: When the trainees learn about the right use of the products
they know how to use the machine effectively and minimize the wastage. So,
training helps to reduce wastage.
 Make Trainee Skilled: Training made the employees more skilled and more
professional. Because when an employee gets the training he learns many new
tricks which helps them to become more skilled and more professional.
 Trainees Become More Productive: After becoming more skilled and
organized. Employees become more productive because they know the right
method of using the machine, they minimize the wastage and become more
productive.
 Helps To Make Company Goodwill: When employees trained they produce
high-quality products that will be customer friendly. If their products are good, so
ultimately goodwill of the company will increase automatically.
 Improve Team Bounding: When the employees trained they will engage into
producing high-quality products, and when will engage they need the support of
many departments, they will work together. So it will improve team bonding.
 Remove Grievances: During the training of employees, they also learn about
soft skilled, which taught them how to control anger and be happy. So this kind of
training helps the employees to remove grievances.
 Trainees Became Motivated: When the employees know what to do and how
to do, they become more motivated because that time they know what the
distraction is and how to control it. This can happen because of training. So,
Trainees became motivated.
 Improve Self-Confidence: When the employees trained they know about each
process of the making products. If they are aware of everything, it will increase
their self-confidence. Ultimately it will increase productivity.
DISADVANTAGES OF TRAINING
 Effect on Concentration: When the employees work consistently on their tasks,

they do not lose concentration of the work. But sometimes they work and do
training together. Which lose their productivity and concentration as well.
 Increases Stress On Employees: In order to keep the staffs up to date with the
latest technology and trends, training employees attend hours and hours training
programs which makes them stressed.
 Long Run Process: In order to make employees updated companies give months
of training. When the employees became trained the technology that they learned
might be old.
 Too Much Of Theory: Training of some departments is full of theories than
practical. These kinds of lecture make employees learn tough. Because they are
unrealistic and hard to use.
 Trainees Lose Their Interest: At times of training sessions which lead for long
hours, employees are bored and aren’t interested in their session.
DISTINCTION BETWEEN INDUCTION AND TRAINING
BASIS OF TRAINING
INDUCTION
DISTINCTION
Process of socialization whereby a new Process of providing knowledge

Meaning employee is made familiar with his and skills for doing a particular
work environment. job.
Place of training May be outside the workplace. A At the workplace.
Once in the lifetime of an employee in

Frequency May be several times
an organisation.
Trainee A new employee Both new and existing employee
To help an employee adjust to the To improve efficiency of

Purpose
organisation employee.
THE KIRKPATRICK MODEL

The Kirkpatrick Model is a globally recognized method of evaluating the results of
training and learning programs. It assesses both formal and informal training methods
and rates them against four levels of criteria: reaction, learning, behaviour, and
results.
Using the Kirkpatrick Model creates an actionable measurement plan to clearly define
goals, measure results and identify areas of notable impact. Analysing data at each
level allows organizations to evaluate the relationship between each level to better
understand the training results— and, as an added benefit, allows organizations to
readjust plans and correct course throughout the learning process.
Level 1: Reaction: The first level of criteria is “reaction,” which measures whether
learners find the training engaging, favourable, and relevant to their jobs. This level is
most commonly assessed by an after-training survey (often referred to as a “smile
sheet”) that asks students to rate their experience. A crucial component of Level 1
analysis is a focus on the learner versus the trainer. While it may feel natural for a
facilitator to fixate on the training outcome (such as content or learning environment),
the Kirkpatrick Model encourages survey questions that concentrate on the learner’s
takeaways. The degree to which participants find the training favorable, engaging, and
relevant to their jobs
Level 2: Learning: Level 2 gauges the learning of each participant based on whether
learners acquire the intended knowledge, skills, attitude, confidence and commitment
to the training. Learning can be evaluated through both formal and informal methods,
and should be evaluated through pre-learning and post-learning assessments to
identify accuracy and comprehension. Methods of assessment include exams or
interview-style evaluations. A defined, clear scoring process must be determined in
advance to reduce inconsistencies. The degree to which participants acquire the
intended knowledge, skills, attitude, confidence, and commitment based on their
participation in the training
Level 3: Behaviour: One of the most crucial steps in the Kirkpatrick Model, Level 3
measures whether participants were truly impacted by the learning and if they’re
applying what they learn. Assessing behavioural changes makes it possible to know
not only whether the skills were understood, but if it's logistically possible to use the
skills in the workplace. Oftentimes, evaluating behaviour uncovers issues within the
workplace. A lack of behavioural change may not mean training was ineffective, but
that the organization’s current processes and cultural conditions aren’t fostering an
ideal learning environment for the desired change. The degree to which participants
apply what they learned during training when they are back on the job
Level 4: Results: The final level, Level 4, is dedicated to measuring direct results.
Level Four measures the learning against an organization's business outcomes— the
Key Performance Indicators that were established before learning was initiated.
Common KPI’s include higher return on investments, less workplace accidents, and
larger quantity of sales. The degree to which targeted outcomes occur as a result of the
training and the support and accountability package.
CAREER DEVELOPMENT
Career refers to sequential, though connected work activities, that facilitate continuity,
order, and meaning to an individual’s work life.
Career development is the series of activities in an on-going/lifelong process of
developing one’s career which includes defining new goals regularly and acquiring
skills to achieve them.
Career development usually refers to managing one’s career in an intra-organizational
or inter-organizational scenario. It involves training on new skills, moving to higher
job responsibilities, making a career change within the same organization, moving to
a different organization or starting one’s own business.
Career Planning refers to the organized process wherein the candidate establishes
goals for his career ascertains various means to reach these goals like undergoing work
education, training, and developmental exercises to get proper direction, timing, and
sequence.
In simple terms, career planning refers to the way an individual plan’s their life’s work,
by exploring, choosing, and striving to achieve their career objective.
FEATURES OF CAREER PLANNING
1. Follows bottom-up approach: It follows a bottom-up approach wherein the

process starts when the individual joins the organization from a lower position and
works, to proceed towards higher position.
2. Continuous process: Career planning is a continuous process through which an
employee determines his/her needs and the means to fulfill those needs on a
regular basis.
3. Aligns career goals with opportunities: Career planning helps in aligning the
career goals established by the employee with that of the opportunities available.
4. Means and not an end: It is a means to attain progression and organizational
efficiency and not an end in itself.
5. Collective Responsibility: It is the responsibility of both employees and the
organization as well.
6. Performed in a dynamic environment: Career planning is performed in a
dynamic environment in which there are rapid and radical changes in demand for,
and supply of labour, its characteristics, technology, environmental conditions,
and market strategies.
CAREER STAGES
The Career Stages refers to the stages of career development that an individual passes
through. Basically, there are 5 career stages, which an individual has to undergo during
his lifetime.
1. Exploration: The exploration stage is the pre-employment stage, wherein the

individuals are in their mid-twenties and enter from their college life to the work
environment. The individuals narrow down their work preferences on the basis of
the directions shown by their parents, friends, family, teachers. At this stage,
several expectations about the work are created that may be the fantasies, or
unrealistic beliefs about the work, very much before entering into the firm.
2. Establishment: At this stage, an individual actually experiences the work culture
in his first job. Here, all the expectations and fantasies come to an end, and one has
to face the reality of life. This stage covers about 10 years from the 25 years of age.
It is also called as a learning stage; wherein the fresher learns under the guidance
of a mentor. At this stage, the fresher commits many mistakes and try to learn from
these, thereby gaining a position in the society and working for his career
advancement.
3. Mid-Career: This stage covers the age period of 35 to 45 years. At this stage, the
individual is no longer considered to be a fresher and his mistakes are taken
seriously by the senior management. Here, the employee must evaluate his current
career position, i.e. whether he is advancing, or has stabilized or has started to
decline and look for the future career prospects. At this stage, an individual has to
maintain a balance between his career and his personal life i.e. spouse and
children.
4. Late-Career: At this stage, an individual reaches to a particular position in the
organization hierarchy, on the basis of his career graph which is characterized by
growth or stagnation. If an individual grows even after the mid-career (i.e. 20 years
after mid-forties), then he is considered to be having the pleasant experience with
the work. Here, an individual becomes the mentor and guide others through his
experiences.
5. Decline: This is the last stage of career development. At this stage, an individual
has to step out of his work or get a retirement from his official commitments. It is
considered as one of the difficult stages, as it is very hard for the employees to leave
the firm who are doing excellent even after their late career.
IMPORTANCE OF CAREER DEVELOPMENT

 Provides equal opportunity employment
 Improves quality of work-life of employees
 Increases the skill of the employees
 Reduces attrition of employees
 Improves the use of the employees
 Improves the organization’s overall
 Cost reduction strategies of the organization

 IT Innovations
 Economic Downsizing
 Delayering
 Provides equal opportunity employment: When considering a career

development programme, there is the possibility of equal opportunity jobs since
these programmes define each person on their merits. Highly efficient individuals
and the results shown by the individual are used as a criterion for their growth
rather than other criteria, demonstrating equal opportunity.
 Improves quality of work-life of employees: Career Development assists
workers in learning better working practices, work ethics, and other key aspects of
the job.
 Increases the skill of the employees: If an employee participates in a career
development programme, his or her skills will grow. These programmes aim to
improve different aspects of a worker’s life, allowing them to perform better at
work.
 Reduces attrition of employees: A career development programme helps to
improve employee satisfaction and, as a result, reduces the number of individuals
who plan to leave the organisation.
 Improves the use of the employees: Employees should learn more about their
jobs and grow their skills through career growth. It also assists them in effectively
managing their time and ensuring that the use of workers increases over time.
 Improves the organization’s overall: Employees have gained a better
understanding of the firm’s different operations as a result of a career development
programme. As a result, information sharing and work ethics tend to strengthen
the organisation.
 Cost reduction strategies of the organization: Organizational cost-cutting
techniques are, once again, extremely risky for those who are not prepared to
advance to the next level. If corporations must reduce their operating expenses, the
job of those persons who are unemployed or have not performed satisfactorily in
the past is jeopardised. Employees must constantly update themselves and
demonstrate their talent in order to stay in organisations for an extended period of
time.
 IT Innovations: Change is often brought about by continuous improvements and
advancements in technology. Some people can keep up with evolving technology
and are often eager to learn and implement new IT applications, while others
exhibit extreme resistance, which is unacceptable to organisations.
 Economic Downsizing: The most significant factor affecting the careers of
millions of people is economic downsizing. Organizations’ jobs are slashed, and
only the fittest of all workers survive. Employees who consistently learn new and
improved skills are less likely to be negatively impacted by economic conditions
than most people.
 Delayering: De-layering means work reclassification. This is an organisational

change effort in which a corporation chooses to reclassify jobs in a broader sense.
However, old reporting lines remain in place to keep management in control, so
certain jobs may be eliminated or reduced during the process. Individuals who are
not qualified enough to be transferred to another job of a different nature must
once again leave the group.
COMPENSATION
Compensation includes both monetary and non-monetary rewards offered to
employees by their employer in return of their services.
Compensation means pay in return for work done by employees.
Compensation is the sum total of the benefits in monetary or non-monetary form
received by an employee in return of his/her work effort.
Compensation is the reward an employee receives in return for their valuable efforts
while performing various jobs in the organization.
Compensation management deals with every type of reward and its allocation in the
most desirable way. These compensations are managed effectively to achieve equity,
transparency and consistency across the organization.
OBJECTIVES OF COMPENSATION
 To administer wages and salary.
 To attract new and skilled employees.
 To retain current employees.
 To acknowledge and recognize good work.
 To control unnecessary costs.
 To blend individual goals with organizational goals.
 To adhere to the Government laws related to remuneration.
FACTORS AFFECTING EMPLOYEE COMPENSATION

External Determinants of Compensation:
 Labour Market Conditions: employees with rare skill sets and expertise gained
through experience command higher wage and salary than the ones with ordinary
skills abundantly available in the job market. But the higher supply of human
resources for certain jobs may not lead to reduction of wages beyond a floor level
due to Government’s prescription of minimum wage levels and employee union’s
bargaining strength. Similarly, this factor by itself does not result in lower pay if
the vast majority of available resources are unemployable due to poor skill and low
talent. Thus, it is clear that law of demand and supply applies to labour market only
to a limited extent.
 Economic Conditions: Organizations having state-of-the-art technology in
place, excellent productivity records, higher operational efficiency, a pool of skilled
manpower, etc., can be better pay masters. Thus, compensation is the consequence
of the level of competitiveness .prevailing in a given industry.
 Prevailing Wage Level: Most of the organizations fix their pay in keeping with
the level for similar jobs in the industry. They frequently conduct wage survey and
accordingly seek to keep their wage level for different jobs. If a particular firm keeps
its pay level higher than those of others in the industry, its employee cost becomes
heavier which may escalate the end cost of the products. This will affect the
competitiveness of the firm. On the other hand, if a firm keeps its pay level lower
than the prevailing rates, it may not recruit the skilled and competent manpower.
 Government Control: Government through various legislative enactments such
as Minimum Wages Act, 1948, Payment of Wage Act, 1936, Equal Remuneration
Act, 1976, Payment of Bonus Act, 1965, dealing with Provident Funds, Gratuity,
Companies Act, etc., have a bearing on compensation decisions. Therefore, firms
have to decide on salaries and wages in the light of the relevant Acts.
 Cost of Living: Increase in the cost of living, raise the cost of goods and services.
It varies from area to area within a country and from country to country. The
changes in compensation are based on consumer price index which measures the
average change in the price of basic necessities like food, clothing, fuel, medical
service, etc., over a period of time. Allowances like Dearness Allowance. City
compensatory allowances are paid to meet the increasing cost of living and parity
among employees posted at different geographies.
 Union’s Influence: The collective bargaining strength of the trade unions also
influence the wage levels. Trade unions enjoy an upper hand in certain industries
like banking, insurance, transport and other public utilities. Therefore, wage
structure in such industries and in such Union-active regions, salary and wage need
to be fixed and revised in consultation with the unions for ensuring smooth
industrial relation.
 Globalization: It has ushered in an era of higher compensation level in many
sectors of the economy. The entry of multinational corporations and big corporates
have triggered a massive change in the compensation structure of companies
across sectors. There is a salary boom in sectors like information technology,
hospitality, biotechnology, electronics, and financial services and so on.
 Cross Sector Mobility: Contemporary companies find it difficult to benchmark
the salaries of their staff with others in the industry thanks to mobility of talent
across the sectors. For example, hospitality sector employees are hired by airlines,
BPOs, healthcare companies and telecom companies.
Internal Determinants of Compensation:

o Compensation Policy of the Organization: Firm’s policy regarding pay i.e.,
attitude to be an industry leader in pay or desire to pay the market rate determines
its pay structure. The former can attract better talent and achieve lower cost per
unit of labour than the ones that pay competitive pay.
o Employer’s Affordability: Those organizations which earn high profit and have
a larger market share, a large business conglomerate and multinational companies
can afford to pay higher pay than others. Besides, company’s ability to pay higher
pay is impaired by sector- specific economic recession and acute competition.
o Worth of a Job: Organizations base their pay level on the worth of a job. The
wages and salaries tend to be higher for jobs involving exercise of brain power,
responsibility laden jobs, creativity-oriented jobs, technical jobs.
o Employee’s Worth: In some organizations, time rates are granted to all
employees irrespective of performance. In such cases, employees are rewarded for
their mere physical presence on the job rather than for their performance. However
many private sector organizations follow performance-linked pay system. They
conduct performance appraisal more often than not which provides input for
determining pay levels. It distinguishes the high-performer from the low-
performer and the non-performer.
o Company’s Business Strategy: The compensation method followed by an
organisation depends to a large extent on the business strat-egy followed by them,
such as an organisation following the ag-gressive strategy for rapid growth will
maintain higher levels of compensation than their competitors. As against this,
business pursuing a defensive strategy will keep its remuneration levels at average
or below average levels than the ones prevailing in the market.
o Productivity: The employee’s salary at times is directly related to their level of
productivity. Every good management would try to bring equity between the
results and rewards of an employee. Employee’s productivity results in increasing
turnover for the organisation resulting in better revenues and ultimately an
in-crease in the salary of its employees.
TYPES OR COMPONENTS OF EMPLOYEE COMPENSATION
FINANCIAL COMPENSATION
In this form of compensation, the payment of rewards is made in monetary terms.
Financial compensation is most popular and important compensation that is given in
the form of money. It is further divided into:
1. Direct Compensation
2. Indirect Compensation
Direct Compensation: Direct compensation means compensating employees by
paying them money in the following forms:
1. Wages and Salary: The compensation paid daily is called wages. When the
payment is made monthly, it is known as a salary.
2. Incentives: Incentives is the money received by the employees other than

wages or salary based on individual performance. Incentive compensation is a
form of variable compensation in which a salesperson’s (or other employee’s)
earnings are directly tied to the amount of product they sell, the success of their
team, or the organization’s success.
3. Allowances: an amount of money given regularly for a specific purpose.
Different types of allowances are part of compensation management like:
 Dearness Allowance
 House Rent Allowance
 Conveyance Allowance
 Leave Travel Allowance, etc.
4. Claims: Claims are the reimbursement of bills. It is paid along with the
monthly salary. These include:
 Telephone/Mobile Allowance
 Internet Allowance
 Medical Allowance, etc.
Indirect Compensation
1. Fringe Benefits: Fringe benefits refer to the extra benefits provides to the
employees in addition to normal compensation paid in terms of wages or salary.
These are the financial benefits received by the employees. Fringe Benefits include:
 Provident Fund
 Gratuity
 Medical Care
 Accident Relief
 Insurances, etc.
2. Perquisites: These are the benefits allowed to the executives above salary.
Perquisites include:
 Company Car
 Club Membership
 Paid Holiday
 Furnished House
 Stock option schemes
NON-FINANCIAL COMPENSATION
In this form of compensation, the employees receive non-monetary rewards. Non-
Financial compensation consists of:
1. Challenging Job Responsibilities
2. Recognition of Merit
3. Growth Prospects
4. Competent Supervision
5. Comfortable Working Conditions
6. Job Sharing
7. Flexitime, etc.
DIFFERENCES BETWEEN COMPENSATION AND REMENURATION
COMPENSATION REMUNERATION
Compensation is paid to the employee in case of

Remuneration is paid to the employee for
death of employee, physical injury, or mentally
the work done for his employer
suffered during the course of employment.
Payment of the compensation is compulsory Remuneration is paid periodically to the

only in case of the death of employee, injury or employee on daily basis, weekly basis,
mentally suffered during the course of fortnightly or monthly basis for the work
employment. done.
There is separate and dedicated law for payment There is separate and dedicated law for
of compensation. payment of Remuneration.
Workmen's Compensation Act, 1923 Payment of Wages Act, 1936
Payment of the Compensation to the employee is Remuneration of the employee depends on

depended on the gravity of the injury he suffered the position of the job or grade of the
but not according to the job position or job job positioned in the organization
grade. hierarchy.
Payment of the compensation is one time Payment of the remuneration is paid to the
settlement or for a certain period of time to the employee as long as he/she works for the
employee until He or she recovers from organization starting from appointment to
suffering. retirement
Payment of the Remuneration varies from

Payment of the Compensation varies from injury
job to job position held by the employee in
to injury suffered by the employee.
the organization.
Payment of the compensation provisions are Payment of the remuneration provisions

same for all employees. are different from job to job.
Payment of the remuneration of the

Payment of the compensation depends on age of
employee depends and varies from the job
the employee and the injury he or she suffered.
title, job position or job experience
There is no other name for the word employee Other names for employee remuneration
compensation are wages or salaries.
COST TO COMPANY OR CTC

Cost to Company or CTC as it is commonly called, is the cost a company incurs when
hiring an employee.
CTC involves a number of other elements and is cumulative of House Rent Allowance
(HRA), Provident Fund (PF), and Medical Insurance among other allowances which
are added to the basic salary.
These allowances may often include free meals or meal coupons, such as Sodexo and
the like, office space rent, cab service to-and-fro office, and subsidized loans et al.
Basically, all these elements when combined, form the entire Cost to Company.
CTC in layman’s language is the total cost that the company bears for an employee.
COMPONENTS OF COST TO COMPANY (CTC)
1. Grade pay-The government sector usually pays grade pay to its employees. This
payment is based on the seniority of the employee.
2. Basic Pay-This is the main component of the CTC structure. It is a fixed
component of the salary and usually comprises 40% to 50% of the total CTC. Many
other CTC components like contribution to provident fund, gratuity and others are
determined on the basic salary.
3. Allowance-Allowance is a fixed amount provided as a part of CTC by the employer
to meet a particular type of expenditure incurred by the employee. Allowances can
be partially taxable, fully taxable or non-taxable depending on nature. Some
allowances depend on the employee’s designation, whereas some are offered to all
the employees irrespective of designation.
4. Dearness Allowance– The government employers generally provide this
allowance as a percentage of basic salary to meet the rise in inflation over a quarter.
The % of dearness allowance depends on the inflation rate of the economy.
5. HRA-HRA is known as a house rent allowance. It is provided as a part of rent
expenditure incurred by the employee for residence. The HRA component offered
is different for different cities, even by the same employer.HRA allowance is
partially exempt as allowed under the income tax act.
6. Conveyance Allowance– Allowance allowed for incurring the expenditure to
travel from home to the workplace.
7. Medical Allowance-This allowance is provided as a part of CTC. One can claim
tax exemption against this allowance by submitting medical bills in intervals
specified by the employer. Usually, the exemption for medical allowance can be
claimed for the medical expenses incurred for self, spouse, children and dependent
family members.
8. Leave Travel Allowance- Some employers provide a leave travel allowance as a
part of their CTC. An exemption is allowed for the travel fare subject to conditions
as laid down in the act. This year the government has introduced an LTC cash
voucher scheme that allows you to claim the benefit of LTA on purchasing goods
or services as specified.
9. Training, telephone, books and periodicals allowances- Many companies
provide a separate portion of the CTC for incurring external training expenditures,
mobile bill payments and purchase of books/periodicals.
10. Special allowances- Some employers offer special allowances to adjust the
amount of total CTC given to employees. This is a fully taxable allowance.
11. Provident Fund-A portion of the salary gets deposited in the PF account of the
employee. Employer and employee together contribute to the contribution. The
contribution to the PF account is 12 per cent of the basic pay.
MOTIVATION
Motivation is the desire to act in service of a goal. It's the crucial element in setting and
attaining our objectives. Motivation is one of the driving forces behind human
behaviour.
Motivation is thus an inner state of mind that directs one’s behaviour.
Definition: Motivation is a driving force which affects the choice of alternatives in
the behaviour of a person. It improves, stimulates and induces employees leading to
goal-oriented behaviour.
For example, promotion is a motivating factor as employees work to achieve preset
targets for getting a promotion. Motivation can be monetary, e.g., rewards given in the
form of a car or a hike in the salary or it can be non-monetary in the form of public
appreciation.
IMPORTANTCE OF MOTIVATION
o Motivation helps you get healthier: Exercise and healthier eating are essential
to better health. While we’re creatures of habit, we’re also capable of changing our
behaviours. We need motivation. Without something driving you to form healthier
habits, it can feel impossible to make a change. It takes time and effort to form new
patterns, and we need something that fuels us. Motivations for a healthier life can
include wanting to feel better physically, achieve certain fitness dreams, or be
around to watch your kids grow up. With these drivers, you can build healthy habits
and reap the benefits.
o Motivation improves your relationships: Relationships can be challenging.
We all have to work through misunderstandings, conflicts, and setting boundaries.
Relationships also require a lot of time and energy. If you lack motivation,
problems go unaddressed, distance is created, and everyone involved feels
neglected. If you’re motivated to improve or maintain a relationship, that
relationship is better for it.
o Motivation helps build new skills: Developing a new skill depends on two
things: motivation and habit. When you’ve done something for a while, you don’t
always need to “feel” motivated; you can power through and just do the thing out
of habit. However, while you’re still forming those habits, you need motivation. You
need a reason to stick to a new skill or hobby when you’re still bad at it. Keep
thinking back to why you started all this in the first place, trusting that eventually
it will become a habit.
o Motivation helps you learn more: Whether you want to become an expert on
a topic or just learn enough to talk about it without feeling lost, you’ll need
motivation. Most things are more complicated than they appear on the surface, so
you’ll need to do more than read one article or book. Motivation helps you weed
through what can seem like countless resources, absorb and analyze the
information, and keep learning.
o Motivation increases your productivity: If you want to be more productive,
think about your motivations. Do you have any? If you’re doing something on auto-
pilot and not thinking about why, it’s much easier to get distracted or procrastinate.
There isn’t anything fuelling your actions. If you’re motivated by something, even
if it’s a reason as simple as wanting to put away work and have dinner right at 6
pm, you’re more likely to be more productive.
o Motivation can advance your career: Do you have big career goals? Many
people think about 5-year or 10-year plans and what they hope to achieve in that
time. Advancing a career is a very common dream. There’s usually a lot of work
involved. Motivations can include the desire for a bigger pay check or
responsibilities that are more aligned with your passions. Many people hope to
move into a role that gives them more flexibility. Whatever your goals, you’ll need
to stay motivated to get there.
o Motivation inspires others: They say happiness is contagious. Motivation is,
too. If you hang around motivated people, you’re more likely to feel inspired. That
doesn’t mean you should kick “unmotivated” people out of your life. People go
through different things that affect their motivation and it isn’t fair to expect
someone to be chipper and productive at all times. That being said, if you’re looking
for some extra motivation and encouragement, think about the people you know
who’ve committed to forming new healthy habits and changing their lives for the
better. They can be good people to talk to about meeting your goals.
o Motivation gets you through hard times: When things are going well, it’s not
too difficult to stay motivated. When things get harder, however, it’s easier to lose
sight of the finish line. The stress of your situation can overwhelm you and make
you feel like you’re failing. Intentionally thinking about what motivates you is a
great way to stay afloat. You can own your feelings, but still remember that you’re
capable of getting through this time. Your motivations compel you to keep trying.
o Motivation is essential for good leadership: Leaders have a lot of
responsibilities, but one of the most important ones is motivation. If a team isn’t
motivated, their work will suffer. The leader needs to rally everyone, provide
encouragement, and keep them motivated through good times and bad. Leaders
need to study the best ways to motivate a group and avoid strategies that aren’t as
effective.
o Motivation fuels social change and justice: There’s a lot wrong in this
world. Tackling issues like poverty and equality can seem overwhelming, but
activists have been doing it for centuries. The arc of humanity seems to bend
towards justice, even when there’s opposition. How do people deal with these
seemingly impossible dreams? They want a better future for coming generations.
Without this motivation, it would make sense to give up. Motivation lights a fire in
people and has led to huge wins for the world.
Theories of Motivation
CONTENT THEORIES OF MOTIVATION: The content theories find the answer

to what motivates an individual and is concerned with individual needs and wants.
 MASLOW’S HIERARCHY OF NEEDS: Maslow classified human needs into
five basic categories as shown in the figure.
1. Physiological Needs: These needs are the basic needs, a prerequisite for the
survival of the human being. Air, water, food, sleep are the physiological needs
which must be met, in order to go further in the hierarchy. If these needs are
not met, then an individual will be highly motivated to satisfy these first, while
the other levels of needs would provide him with a little motivation.
2. Safety Needs: Once the physiological or basic needs are fulfilled, the other
needs become important. The next comes the safety or security needs. People
begin to feel the need for a safer place to live in, i.e. shelter, safe neighbourhood,
steady employment, etc. Thus, at this stage, the need for self-preservation i.e. a
need for being free of physical danger, emerges.
3. Social Needs: After the first two needs of the hierarchy are met, people tend
to move further and seeks to satisfy their social needs. Since a human being is
a social animal who lives in the society, has an urge to belong to and be accepted
by all. The need for love, affection, and belonging emerges at this stage. Thus,
the relationships are formed at this level.
4. Esteem Needs: Once the above needs are fulfilled, an individual strives to
achieve the esteem needs, concerned with self-respect, self-confidence, a feeling
of being unique, social recognition, personal worth, etc. On the satisfaction of
these needs, an individual feels the sense of power and control and becomes
more confident.
5. Self-Actualization Needs: The next and the final need on the Maslow’s Need
Hierarchy is the Self Actualization Need. It refers to the need to maximize one’s
potential. These needs are related to the development of one’s intrinsic
capabilities that can be utilized in different real life situations. It can be
rephrased as, a desire of becoming, what one is capable of becoming.
 Alderfer’s ERG Theory: Alderfer’s ERG Theory is the extension of Maslow’s

Needs Hierarchy, wherein the Maslow’s five needs are categorized into three
categories, Viz. Existence Needs, Relatedness Needs, and Growth Needs.
An American psychologist Clayton Paul Alderfer had proposed this theory and
believed that each need carries some value and hence can be classified as lower-
order needs and higher-order needs. He also found some level of overlapping in
the physiological, security and social needs along with an invisible line of
demarcation between the social, esteem and self-actualization needs. This led to
the formation Alderfer’s ERG theory, which comprises of the condensed form of
Maslow’s needs.
Existence Needs: The existence needs comprises of all those needs that relate
to the physiological and safety aspects of human beings and are a prerequisite
for the survival. Thus, both the physiological and safety needs of Maslow are
grouped into one category because of their same nature and a similar impact on
the behaviour of an individual.
Relatedness Needs: The relatedness needs refer to the social needs that an
individual seeks to establish relationships with those for whom he cares. These
needs cover the Maslow’s social needs and a part of esteem needs, derived from
the relationship with other people.
Growth Needs: The growth needs cover Maslow’s self-actualization needs as
well as a part of esteem needs which are internal to the individual, such as a
feeling of being unique, personnel growth, etc. Thus, growth needs are those
needs that influence an individual to explore his maximum potential in the
existing environment.
 Herzberg’s Motivation-Hygiene Theory: The Herzberg’s Motivation-

Hygiene Theory is given by Fredrick Herzberg and his associates, who studied the
variables that are perceived to be desirable to achieve goals and the undesirable
conditions to avoid.
In this context, the study was conducted wherein the experiences and feelings of
200 engineers and accountants were analysed. They were asked to share their
previous job experiences in which they felt “exceptionally good” or “exceptionally
bad.” Through this study, Herzberg concluded that there are two job conditions
independent of each other that affect the behaviour differently.
The first set of job conditions has been referred to as maintenance or hygiene
factor, wherein the same job conditions provide the same level of dissatisfaction,
in case the conditions are absent, however, their presence does not motivate in a
strong way.
The second set of job conditions is referred to as motivational factors, which
primarily operate to build strong motivation and high job satisfaction, but their
absence does not result in strong dissatisfaction. Based on his findings about the
different causes of satisfaction and dissatisfaction, he theorized that an individual's
job satisfaction depends on two types of factors: motivators and hygiene factors.
Motivating factors that cause satisfaction include:

 Achievement: Individuals who have a strong drive to set and accomplish goals,
enjoy working alone, are willing to take calculated risks and want to receive regular
feedback on their accomplishments and progress are often motivated by
achievement in the workplace.
 Recognition: Offering recognition and praise not only makes employees feel
accomplished and appreciated, but it also reinforces good performance and
encourages employees to continue repeating the actions that led to the
performance. The more employee behaviour is positively recognized, the more
likely they are to repeat these behaviours and remain motivated in the workplace.
 The work itself: Employees who believe that the work they are doing is
important and that their tasks are meaningful are more likely to be motivated to do
well.
 Job advancement opportunities: Ensuring employees understand a clear plan
of progression within their position in the workplace can instil motivation to work
towards a promotion, which can ultimately increase employee productivity.
 Growth opportunities: Employees often feel more motivated at work when
there are ample opportunities for growth and professional development. Giving
employees opportunities to increase their skills and become more efficient in their
positions instils a sense of accomplishment and pride that acts as a strong
motivator for employees.
Hygiene factors that can cause dissatisfaction include:
 Relationship with peers: Encouraging camaraderie among team members can
contribute to greater job satisfaction. There should be no tolerance for harassment,
and employees who are disruptive or inappropriate should be disciplined
appropriately or dismissed.
 Company policies: This can cover initiatives to promote a healthy workplace,
such as COVID-19 protocols like mask wearing and social distancing.
 Physical workspace: Some aspects of your physical working environment
include whether employees can work remotely and the actual location of the
workspace. Other factors to consider is the size of the working area and whether
there is space to physically distance, plus facilities like a gym and up-to-date
equipment and furnishings.
 Working conditions: This element includes the formal terms under which staff
members are hired, such as the rate of pay, contract of employment and length of
the workday.
 Salary: If employees believe they are not being paid fairly, they will be unhappy
working for a company. Companies should make sure the wages and benefits they
offer are competitive within their industry.
 Status: The organization should maintain the status of all employees within the
organization. Performing meaningful work can provide a sense of status.
 Security: Job security is very important to employees. They should feel like they
are not always under constant threat of being fired or let go.
 Supervision: Over supervision and micromanagement is a common complaint in

workplaces. Employee should be given as much autonomy as possible.
 McClelland’s Needs Theory: McClelland’s Needs Theory was proposed by

a psychologist David McClelland, who believed that the specific needs of the
individual are acquired over a period of time and gets moulded with one’s
experience of the life. McClelland’s Needs Theory is sometimes referred to
as Three Need theory or Learned Needs Theory.
McClelland has identified three basic motivating needs, Viz. Need for Power, Need
for Affiliation and Need for Achievement and, along with his associates performed
a considerable research work on these basic needs.
 Need for Power (n-pow): What is Power? Power is the ability to induce or
influence the behaviour of others. The people with high power needs seek high-
level positions in the organization, so as to exercise influence and control over
others. Generally, they are outspoken, forceful, demanding, practical/realistic-not
sentimental, and like to get involved in the conversations.
 Need for Affiliation (n-affil): People with high need for affiliation derives
pleasure from being loved by all and tend to avoid the pain of being rejected. Since,
the human beings are social animals, they like to interact and be with others where
they feel, and people accept them. Thus, people with these needs like to maintain
the pleasant social relationships, enjoy the sense of intimacy and like to help and
console others at the time of trouble.
 Need for Achievement (n-ach): McClelland found that some people have an
intense desire to achieve. He has identified the following characteristics of high
achievers:
 High achievers take the moderate risks, i.e. a calculated risk while performing
the activities in the management context. This is opposite to the belief that high
achievers take high risk.
 High achievers seek to obtain the immediate feedback for the work done by
them, so as to know their progress towards the goal.
 Once the goal is set, the high achiever puts himself completely into the job, until
it gets completed successfully. He will not be satisfied until he has given his
100% in the task assigned to him.
 A person with a high need for achievement accomplishes the task that is
intrinsically satisfying and is not necessarily accompanied by the material
rewards. Though he wants to earn money, but satisfaction in the

accomplishment of work itself gives him more pleasure than merely the cash
reward. Hence, McClelland’s Needs Theory posits that the person’s level of
effectiveness and motivation is greatly influenced by these three basic needs
PROCESS THEORY OF MOTIVATION:

The process theories deal with “How” the motivation occurs, i.e. the process of
motivation. This involves the following three theories:
o Equity theory: Individuals are motivated by fairness, so if they perceive a fair

environment, they will be motivated, and if they feel that the work environment is
unfair they will be demotivated. In simple words, discrimination acts as a
demotivating factor for employees in an organization. The Adam’s Equity
Theory posits that people maintain a fair relationship between the performance
and rewards in comparison to others. In other words, an employee gets de-
motivated by the job and his employer in case his inputs are more than the outputs.
The Adam’s Equity Theory was proposed by John Stacey Adams, and is based on
the following assumptions:
 Individuals make contributions (inputs) for which they expect certain rewards
(outcomes).
 To validate the exchange, an individual compares his input and outcomes with
those of others and try to rectify the inequality.
VROOM’S EXPECTANCY THEORY: Vroom studied people’s motivation and

arrived at a conclusion that it depends on three factors, expectancy, instrumentality
and motivation.
According to Vroom,
Expectancy is the belief that the more efforts you put in, the better will be the
result or performance. There are two types of expectancy: The Effort-
Performance expectancy and the Performance-Outcome expectancy.
Instrumentality is a notion that if you perform well, a desirable result will be
received.
Valence is the priority one gives to the expected outcome or result. Vroom
differentiated between efforts people put in, their performance and the
outcome. This principle works on perception.
o Porter-Lawler Model: This is an extended and polished version of Vroom’s

expectancy model. It states that an individual’s motivation to finish an activity is
driven by reward they expect to get on completion of the activity. The Porter-Lawler
model is presented in the figure.
According to this model, efforts may not certainly produce job performance for the
following reasons: Firstly, an employee may not be capable enough to perform the
task assigned and the second may be that the employee lacks clarity of his job role.

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HUMAN RESOURCE MANAGEMENT 2nd sem BBA ISBR

MODULE NO. 3: INDUCTION, TRAINING AND COMPENSATION

MEANING, NEED, FEATURES AND PROCESS OF INDUCTION. PROBLEMS

FACED DURING INDUCTION. ESSENTIALS OF SUCCESSFUL INDUCTION.

MEANING OF INDUCTION MANUAL AND CHECKLIST. MEANING, NEED,

FEATURES, OBJECTIVES AND SIGNIFICANCE OF TRAINING.

DIFFERENCES BETWEEN TRAINING AND INDUCTION. STEPS IN

TRAINING. METHODS OF TRAINING. A BRIEF DISCUSSION OF

KIRKPATRICK MODEL. MEANING AND SIGNIFICANCE OF CAREER

DEVELOPMENT. MEANING, NEED AND TYPES OF COMPENSATION.

DIFFERENCES BETWEEN COMPENSATION AND REMUNERATION.

MEANING AND COMPONENTS OF CTC. MOTIVATION - MEANING,

IMPORTANCE, THEORIES OF MOTIVATION.

COMPONENTS/ELEMENTS IN AN INDUCTION PROGRAMME

o Security – in relation to access to the workplace, passwords, document

TYPE / PHASES IN INDUCTION.

PROCEDURE OF INDUCTION TRAINING

PROBLEMS OR MISTAKES MADE IN EMPLOYEE INDUCTION

ESSENTIALS OF SUCCESSFUL INDUCTION.

NEED AND IMPORTANCE OF INDUCTION

INDUCTION MANUAL AND CHECKLIST.

COMPONENTS OF AN INDUCTION MANUAL AND CHECKLIST.

 Specific Dimensions: Training is a procedure that has clear and definite

METHODS OR TYPES OF TRAINING

manager is considered as a mentor to the subordinate and guides him in the

OFF-THE-JOB TRAINING METHODS

NEED/IMPORTANCE/SIGNIFANCE OF TRAINING AND DEVELOPMENT

 Improves The Performance: Training improves the performance of the

 Effect on Concentration: When the employees work consistently on their tasks,

DISTINCTION BETWEEN INDUCTION AND TRAINING

Process of socialization whereby a new Process of providing knowledge

Place of training May be outside the workplace. A At the workplace.

Once in the lifetime of an employee in

Trainee A new employee Both new and existing employee

To help an employee adjust to the To improve efficiency of

THE KIRKPATRICK MODEL

FEATURES OF CAREER PLANNING

1. Follows bottom-up approach: It follows a bottom-up approach wherein the

1. Exploration: The exploration stage is the pre-employment stage, wherein the

IMPORTANCE OF CAREER DEVELOPMENT

 Cost reduction strategies of the organization

 Provides equal opportunity employment: When considering a career

 Delayering: De-layering means work reclassification. This is an organisational

FACTORS AFFECTING EMPLOYEE COMPENSATION

Internal Determinants of Compensation:

TYPES OR COMPONENTS OF EMPLOYEE COMPENSATION

2. Incentives: Incentives is the money received by the employees other than

DIFFERENCES BETWEEN COMPENSATION AND REMENURATION

Compensation is paid to the employee in case of

Payment of the compensation is compulsory Remuneration is paid periodically to the

Payment of the Compensation to the employee is Remuneration of the employee depends on

Payment of the Remuneration varies from

Payment of the compensation provisions are Payment of the remuneration provisions

Payment of the remuneration of the

COST TO COMPANY OR CTC

CONTENT THEORIES OF MOTIVATION: The content theories find the answer

 Alderfer’s ERG Theory: Alderfer’s ERG Theory is the extension of Maslow’s

 Herzberg’s Motivation-Hygiene Theory: The Herzberg’s Motivation-

Motivating factors that cause satisfaction include:

 Supervision: Over supervision and micromanagement is a common complaint in

 McClelland’s Needs Theory: McClelland’s Needs Theory was proposed by

rewards. Though he wants to earn money, but satisfaction in the

PROCESS THEORY OF MOTIVATION:

o Equity theory: Individuals are motivated by fairness, so if they perceive a fair