TRAINING AND

DEVELOPMENT

UNIT 4
LEARNING OUTCOMES
Concept and Significance of Training
Training Needs
Training Methods
Types of Training
CONCEPT AND SIGNIFICANCE
 Training and development refers to imparting of specific skills, abilities and
knowledge to an employee.

 The need for training and development is determined by the employees’

performance deficiency

 Training and development need=standard performance-actual performance

 Training refers to the process of imparting specific skills example learning analysis
function of excel, learning to fire a rifle

 Development refers to the learning opportunities designed to help employees grow

( development is not primarily skill oriented) example exploring how to leverage AI in
HR function

 Education is theoretical learning in classroom

 Though training and education differ in nature and orientation , they are
complementary
DEFINITIONS
 Dale S. Beach. :

 “Training is the organized procedure by which people

learn knowledge and or skill for a definite purpose .”
 Michael J. Jucius "Training is a process by which the
aptitudes, skills and abilities of employees to perform
specific jobs are increased .”
 Training is short term process
 Oriented towards specific job
 It also aims to refresh old skills as well as acquire new skills
 It is need based and reactive
ROLE OF TRAINING IN
ORGANIZATIONS
 Increased Productivity
 Makes one Perform Better as a Leaders
 Reduced Cost
 Reduction in Supervision
 Improved Quality of Service and Products
 SCOPE OF TRAINING AND
DEVELOPMENT
 In problem solving skill
 Human Relations skill
 Managerial and supervisory Skill
 Particular skill
 Objectives

 1) Enhance Employee Performance

 2) Update Employee skill
 3) Gain Organizational skills
 4) Prepare for Promotion and Managerial Successions
 TRAINING NEED ANALYSIS
Organizational Analysis Task or role analysis Person Analysis

Involves study of entire organization Study of job , components , its Person Analysis
in terms of its objectives, available various operations and conditions
resources, their utilization with under which it has to be performed Gauge Performance levels
respect to objective fulfillment and
pattern of interaction with Introduce changes
environment
Initiate training

Analysis of objectives ( short & Long
term objectives
Resource utilization analysis (human-
under& over manned)
Environmental scanning (PESTEL)
Organizational Climate Analysis
Focus on individual role & training
needed to perform a role ( KSA)
Questionnaires, interviews,
observation is used to collect job
related information
After this appropriate training
Programme can be designed
TRAINING NEED ANALYSIS-ORGANIZATIONAL LEVEL

 At this level, the assessment focuses on the broader performance of the organization. Some
of the steps include:
1.Identifying the existing capabilities, strengths, and areas in need of improvement.
2.Looking at each department and determining overarching needs.
3.Understanding the external factors influencing the organization, from shifting demographics
and political dynamics to technological innovations and economic trends.
4.Ensuring the workforce has the skills, knowledge, and abilities to address the organization’s
strategic goals
OCCUPATIONAL LEVEL
 Moving from the broad to the specific, occupational assessment dives deep into the requirements of
different job roles within the organization. Essential focal points include:

 Recognizing the skill discrepancies or knowledge gaps in various occupational groups, particularly
when the organization pivots in a new strategic direction.

 Exploring innovative methods to perform tasks that could resolve these gaps.

 Examining performance standards and current practices of each role.

 Ensuring that each occupational group aligns seamlessly with the organization’s overarching goals
INDIVIDUAL LEVEL
 The individual assessment highlights each employee, assessing their performance, potential, and
training needs. It involves:

 Evaluating how effectively an employee performs their current tasks.

 Gauging their potential to take on different or additional responsibilities.

 Identifying specific training or developmental needs to hone their skills or bridge knowledge gaps.

 This personalized evaluation helps to identify how training solutions should be designed for each
employee and helps to develop growth opportunities within the organization
TYPES OF TRAINING
 ON-THE-JOB TRAINING (OJT) METHODS: On-the job training method is provided when
the employee are taught knowledge, skills and abilities at the actual workplace. On-the-job
training as takes place at the actual work station, thus the task very often contributes directly to
the output of the department
 Job Instructional Technique
 Mentoring
 Coaching
 Job Rotation
 Apprenticeships And Internships
 Committee Assignment
 Off the job training method is the learning of the employee in a place away from their actual
workplace of the person. Off-the-job training has the advantage that it allows employee to get away
from work and concentrate more thoroughly on the training itself
 Lectures or Class Room method
 Conferences & Seminars
 Audio Visual Method
 Case Study Method
 Vestibule
 Role Playing
 Simulation
 Programmed Instruction
 Computer Based Instructions
 Sensitivity Training
PERFORMANCE APPRAISAL
 Concept of Performance Appraisal
 Purpose of performance appraisal
 Process
 Methods of Performance Appraisal
 Major Issues in Performance Appraisal
PERFORMANCE APPRAISAL
 According to Flippo :―Performance Appraisal is the systematic, periodic and
an impartial rating of an employee‘s excellence in matters pertaining to his
present job and his potential for a better job‖.
 According to Heyel:―Performance Appraisal is the process of evaluating the
performance and qualifications of the employees as per the requirements of the
job for which he is employed, for purposes of administration including
placement, selecting for promotion, providing financial rewards and other
actions which require differential treatment among the members of the group
as distinguished from actions affecting all members equally‖.
 PURPOSE OF PERFORMANCE APPRAISAL
 It help organization to clearly inform the employees about what they want from them.

 It helps to convert organizational mission into achievable objectives.

 It gives the insight details about the work and employees.

 It helps to provide timely feedback to employee on their performance, thereby help employees to know
where they stand in the organization in terms of their performance

 5. It actually serves as the basis for promotion or job change, transfer or training of the employee depending
upon the caliber and performance of employee.

 6. It helps in identifying the strengths and weakness of the employees according to which HR can formulate
suitable training and development program.
 7. It serve as the basis for establishing the compensation – salary and wages of employee in relation to their
work

 8. It helps to establish a healthy and fair environment within the organization.

 9. Performance Appraisal helps in motivating and boosting the morale of employees.

 10. It provides useful information to supervisors and management about their employees.

 11. It increases confidence among employees.

 12. It even helps to reduce overburden or overlap of job duties and ensure effective use of employee skills.

 13. Performance appraisal helps to provide new ideas and information from staff.
 14. It helps for skills and career development of employees.
PROCESS OF PERFORMANCE
APPRAISAL
 1. Establishing the Performance Standards

 The performance appraisal process starts with formulating the standards or criteria, to be used for judging
the performance of employees.

 The criteria are prepared with the help of job analysis which gives the main requirements of a job and should
also be discussed with the supervisors so as to ensure that all the relevant factors have been included.

 These criteria should be clear, objective and in writing - ie who has to do the appraisal and how frequently
appraisal is to be done should also be clearly decided.
 Example of setting performance standard like profit margin, sales , growth in revenue, lead response time,
time to fill a vacant position , number clients served in a day, number of work delivery made in a day etc can
be communicated
EXAMPLE OF PERFORMANCE
STANDARD
 Sustainability: Nike may set targets for store executives to reduce the environmental impact
of their stores. This could involve tracking energy consumption, waste reduction, or water
usage to ensure sustainable operations

 Diversity and Inclusion: Nike may set targets for store executives to promote diversity and
inclusion within their teams. This could involve tracking the representation of diverse groups
within the workforce, as well as implementing initiatives to support diversity and inclusion
efforts
2.Communicating the Standards
 The performance standards which are specified in the first step need to be communicated or informed and
explained to the employees so that they get to know what is expected from them.

 3. Measuring Performance
 Once the performance standards are prepared and explained, the next stage is to measure the actual
performance of the employee. This requires selecting the right techniques for measuring employee
performance, besides that identifying the internal and external factors which have the influence on the
performance of employee and finally collecting information on results achieved
4. Comparing the Actual with the Standards
 In the next stage actual performance of the employee collected in previous step is compared with the pre
decided performance standards specified in the step 1.Such comparison will reveal the difference or the
deviations which may be positive or negative. Positive deviations occur when the performance of the
employee exceeds the standards. On the other hand, negative deviations suggest that excess of standard
performance over the actual performance.

 5. Discussing the Appraisal

 The result of the appraisal step 4 is communicated to and discussed with the employees. Not only the
deviations, but also the reasons behind them are also-analyzed and discussed. Such discussion will help an
employee to know his weaknesses and strengths. Therefore, he will be motivated to improve himself.
 6. Taking Corrective Actions

 In the final step through mutual discussions with employees, the steps required
to improve performance are identified and initiated.

 Training, coaching, counseling, etc. are the examples of corrective actions that
help to improve performance
 METHOD OF PERFORMANCE
APPRAISAL
Unstructured method of appraisal : The rater or appraiser has to give his opinions about the
employee

Straight Ranking Method evaluator gives ranks to all the employees working in the
same work unit doing the same job
Paired Comparison Method each and every employee is compared with all others in the
group
Grading Method Explained in next slides*
Graphic Rating Scales
Checklist Method
Free Essay Method
Critical Incidents Method
 Straight ranking method  Paired comparison method
 employees of a group are compared with
one another at one time
 Grading Method  Graphic method

The approach is multi-dimensional and very

effective as several characteristics of the job are
considered( employee‘s quality and quantity of
work is judged on graphic scale)
 Checklist method  Critical incident method
 MODERN METHODS
 Assessment Centres (1930s) used in German
Army
 A group of trained experts uses variety of
group and individual exercises to evaluate the
performance of multiple employees
 This concept of assessment centre is of a recent
origin in India, companies like Crompton
Greaves, Eicher, Hindustan Lever and Modi
Xerox have adopted this technique to evaluate
the performance of their employees
 In this method individuals from different
departments are brought together and reviewed
by team of senior managers, HR experts and
psychologists
 360 Degree appraisal
 This method was first developed and formally used
by General Electric Company of USA in 1992
 In India, companies like Reliance Industries, Wipro
Corporation, Infosys Technologies use this method
 multi-rater feedback
 All these appraisers provide information or give
feedback on an employee‘s skills, abilities and
behaviours by filling the structured questionnaires
designed for this purpose
 MBO Technique  Human Resource Accounting
 This concept of Management by Method
Objectives (MBO) was given by Peter F.  Human resource accounting method is
Drucker in 1954 used to find the relative worth of human
 MBO involves following four stages: goal assets of the organization in the terms of
setting, performance standard, money
comparison, and periodic review  The Difference between cost and
contribution will shows the performance
of employee
 Psychological Appraisal
 Psychological Appraisals include in depth
interviews, psychological tests
discussions with supervisors
 Intellectual abilities
 Emotional stability
 Reasoning and analytical abilities.
 Sociability
 Interpretation and judgment skills
 Motivational responses
 Ability to foresee the future
 Behaviourally Anchored Rating Scale-
 It consists of predetermined critical areas
and of job performance or sets of behavioral
statements explaining the important job
performance qualities as good or bad
 for e g. The qualities like inter-personal
relationships, adaptability and reliability,
job knowledge etc).
 These statements are prepared from
critical incidents.
 The Balance Score Card method
measures performance, by taking into
consideration number of different
perspectives which are – a financial
perspective, a customer perspective, an
internal business process perspective, and
an innovation and learning perspective.
 With the help of these different
perspectives, the BSC is able to come to
conclusion in terms of both leading and
lagging performance measures, thus helps
in providing a more ―balanced‖ view of
company performance
CHALLENGES OF PERFORMANCE
APPRAISAL
 Halo effect: The halo error happens due to
the tendency of judging employee on one
aspect, which influences the employee‘s
overall performance
 For Example If a worker has very few
absences, his supervisor might give the
worker a high rating in all other areas of
work because he comes on the duty
regularly
 Constant Error: It is general tendency of
some of the raters to be very lenient while
rating while some others are very strict in
assessing performance.
 Thus in the first case, performance will be
overrated (leniency error) while in the
second case it is underrated (strictness
error).
 Stereotyping: Stereotyping or Negative
Effect is a tendency of giving low or high
rating because of mental picture that an
individual holds about a person because of
his age, religion, caste etc
 Poor appraisal forms: Sometimes the
appraisal process used by the rater might
have incorrect appraisal form or method
which affects the appraisal system
 Personal Bias: Sometimes the
Performance appraisal may get affected by
personal prejudices or biasness of the
rater, like he may rate poorly to the
employee or vice versa because the rater
dislikes or likes an employee
 Central Tendency: It a tendency of some
of the raters to give average ratings to all
the employees so as to avoid any kind of
justification or commitment or
involvement