Profitable people ppt

PROFITABLE PEOPLE
ARE
PEOPLE ON THE RISE
:
ARISE TRAINING & RESEARCH CENTER

CHAPTER OUTLINE
 Training and
development
 Types of training
 Benefits of training and
development
 Need for training
 Planning and
strategizing for training
 Needs assessment
 Setting training
objectives
 Training design and
implementation
 Transfer of training
(learning)
 Types of training
 Training evaluation
 Integrating training
with PMS and
compensation

TRAINING: Definition
 Training is a process whereby people acquire capabilities to aid in the
achievement of organizational goals.
- Mathis And Jackson
 Training is a process of teaching a new employees the basic skills to perform
their jobs
- Garry Dessler
 A planned process to modify attitude , knowledge or skill behaviour through
learning experience to achieve effective performance in an activity or range of
activities. Its purpose, in the work situation, is to develop the abilities of the
individual and to satisfy the current and future needs of the organization.
-Manpower service commission,1981a

DEVELOPMENT
Definition:Efforts made to improve employee‟s ability to handle a variety of
assignment.
DIFFERENCE BETWEEN TRAINING AND DEVELOPMENT :
Development is broader in scope and focuses on individual‟s gaining new
capabilities useful for both present and future jobs.
TRAINING
Learn specific
behaviours and actions;
demonstrate techniques
and processes
DEVELOPMENT
Understood information
concepts and context; develop
judgment; expand capacities
for assignment.
Shorter term Longer term
Qualified people available
when needed; promotion
from within possible; HR-
based competitive advantage
Performance appraisals,
cost benefit analysis,
passing tests , or
certification
Focus
Time
frame
Effective
Measure

TYPES OF TRAINING
 Required and regular training : company with various mandated
legal requirements (e.g., occupational safety, EEO) and serves as
training for all employees (new employee orientation)
 Job/technical training: enable employees to perform their jobs,
tasks and responsibilities well (e.g. product knowledge, technical
process and procedures, customer relations)
 Interpersonal and problem solving training : address both
operational and interpersonal problems and seeks improve
organizational working relationships.
 Development and innovative training : provides a long term
focus to enhance individual and organizational capabilities for the
future (e.g. business practice, executive development, organizational
change)

 Active and passive learning : traditional training is a one way
learning process whereby a passive learner receiving information from a
lecturer, tutor or instructor.
 Interactive learning methods : there are a wide variety of
interactive learning techniques, some of them adoptions of one way
approaches-
 Interactive computer learning packages, video and audio tapes
 Workshops
 Case studies
 Role play
 Simulations
 Problem solving

BENEFITS OF TRAINING1. Benefits To The Organization
 Improved profitability.
 Improved job knowledge at all level of organization.
 Improved morale of the workforce.
 Helps people identify with organizational goal.
 Helps create a better corporate image.
 Fosters authenticity, openness and trust.
 Improves relationship between employees.
 Aids in organizational development.
 Learns from the trainee.
 Helps prepare guidelines for the work.
Contd..

BENEFITS OF TRAINING(Contd..)
 Aids in setting organizational policies.
 Provides information for future needs.
 More effectiveness in decision making and problem solving.
 Development for promotion from within
 Development of leadership, motivation, loyalty etc.
 Increase productivity and quality of work
 Keeps the cost down in any area.
 Develops a sense of responsibility.
 Improves labor-management relation.
 Reduces outside consulting cost.
 Creates an appropriate climate for growth and communication.
 Helps employees adjust to change.

2. Benefits To Individual, Thereby To Organization.
 Better decision making and effective problem solving
 Encouragement and achievement of self-development and self-confidence.
 Better stress handling, tension, frustration and conflict.
 Improvement in leadership, knowledge, skills and attitude.
 Increased job satisfaction and recognition.
 Satisfies personal needs of trainer and trainee.
 Provides avenue for growth
 Develops a sense of growth in learning.
 Eliminates fear in attempting new task

3. Benefits in personnel and human relation:
Intra and Inter Group
 Improves communication between individual and groups.
 Aids in orientation of new employees.
 Provides information on equal opportunity and affirmative action.
 Provides information on other government laws and policies.
 Improves inter personal skills.
 Makes organisational policies, rules and regulations viable.
 Improves morale.
 Builds cohesiveness in groups.
 Provides a good climate for learning, growth, and co-ordination.
 Makes the organistaion a better place to work and live.

THE NEED FOR TRAINING
 Companies initially used to emphasize only on production process training
i.e. teaching technical skill required to perform jobs, such as training
assembles to solder wires or teachers to device lesson plans. however
training and development programs and their objectives change in the
1980s and 1990s.
 Employers had to adapt to rapid technological changes, improve product
and service quality, and boost productivity to stay competitive improving
quality often requires remedial-education training, since quality-
improvement programs assume employees can use critical thinking skills,
produce charts and graphs and analyse data.
 Employees must also use or acquire skills in team building, decision
making, and communication.
 As firms become more technologically advance, employees require training
in technological and computer skills (such as desk top publishing and
computer aided design and manufacturing).
Contd…

THE NEED FOR TRAINING (Contd…)
 As increased competition has put a premium on better service,
employers have turned increasingly to customer-service training to
provide employees with the tools and abilities they need to deal more
effectively with customers, such as effective listening skills.
 More employers today are also taking advantage of the fact that
training can strengthen employee commitment.this is one reason why
high commitment firms like toyota provide two weeks of training per
year for all employers-about double the national average

PLANNING AND STRATEGISING FOR
TRAINING
Planning and strategic training are two important aspects of human resource
development, whereby there are no set procedures which organisations should
strictly follow in creating a human resource development plan (HRM). However
the eight points listed bellow can act as a guidance.
A HUMAN RESOURCE DEVELOPMENT PLAN:
1. Discern the training and developing requirements from organisational strategy
and business objectives.
2. Analyse the training requirements for effective work performance in
organisational functions and jobs.
3. Analysing the existing qualities and training needs of current employees.
4. Devise an HRD plan which fills the gap between organisational requirements
and the present skills and knowledge of the employees.
5. Decide on the appropriate training and development methods to be used for
individuals and groups.
6. Decide who is to have responsibility for the plan and its various parts.
7. Implement the plan and evaluate its progress.
8. Amend the HRD plan in the light of monitoring/evaluation and changes in
business strategy.

A TRAINING CYCLE BASED ON
HRD PLAN
Organisational strategy HRM strategy
Training and development
strategy
Analysis of needs
Training programs
Monitor and Evaluate

TRAINING PROCESS
DESIGN
•Pre-test trainees
•Select training methods
•Plan training content
DELIVERY
•Schedule training
•Conduct training
•Monitor training
EVALUATION
•Measure training outcomes
•Compare outcomes to
Objectives/criteria
ASSESSMENT
•Analyse training needs
•Identify training
objectives and criteria

STRATEGIC TRAINING
 Strategic training- It focuses on efforts that develop competencies,
value and competitive advantages for the organizations which means
training must be based on organizations strategic plans and HR
planning efforts.
 Strategic training also implies that HR and training professionals
need to be involved in organizational change and strategic planning in
order to develop training plans and activities that support
management’s strategic decisions.

STRATEGISING TRAINING
Strategic Training
•Develops employee
capabilities
• Encourages change
• Promotes continuous
learning
•Creates/shares new
knowledge
• Facilitates
communication
Business
Strategies
Training
Strategies
&
Activities

NEEDS ASSESSMENT
The first step in training is to determine what training is required,
thus assessing the training needs of the new employees is important.
This is the diagnostic phase of setting training objectives.
INDIVIDUAL ORGANISATION
TRAINING AND
DEVELOPMENT

TECHNIQUES FOR IDENTIFYING NEEDS
There are two types of techniques to identify NEEDS:
1. TASK ANALYSIS
2. PERFORMANCE ANALYSIS
Task Analysis : An analysis of the job‟s requirements to determine the
training required.
It is done by TASK ANALYSIS RECORD FORM (tabular structure)
this consolidates information regarding the job‟s required tasks and
skills which are helpful in determining training requirements.

Performance Analysis :
Verifies performance deficiency and determine whether that
deficiency should be rectified through training or some other means.
 The first step is to appraise employees‟ performance, since to
improve it, first determine person‟s current performance compared
to what it should be.
 To distinguish between can’t do and won’t do problems, their
specific causes and solutions.

SETTING TRAINING OBJECTIVES
 After analysing training needs, concrete measurable training
objectives should be set.
 Training objective is defined as “ A description of performance you
want learners to be able to exhibit before you consider them
competent .”
 Objectives specify what the trainee should be able to accomplish after
training.

TYPES OF TRAINING OBJECTIVES
Training objectives are of three types and can be set as :
 Knowledge- Impart cognitive information and details to trainees.
 Skill- Develop behaviour changes in how jobs and task requirement are
performed.
 Attitude- Create interest in and awareness of the importance of training.
The success of training should be measured in terms of objectives set.
Objectives serve as a check on internationalization, or whether the person is
able to use the training.

TECHNIQUES OF TRAINING
1. Vestibule or simulated training: training employees on
special off-the-job equipment, as in airplane pilot training,
whereby training costs and hazards can be reduced. In this it is not
necessary to rely on computer.
2. Computer based training: in this trainee uses computer-based
system to interactively increase his/her knowledge/skills. It
reduces the learning time and is cost effective.

3. Teletraining
A trainer in a central location can train a group of employees at
remote locations via television hookups.
4. Videoconferencing
An increasingly popular way to train employees defined as “a
means of joining two or more distant groups using a combination
of audio and visual equipment.” It allows people in one location to
communicate live with people in another city or country or with
groups in several other cities.

5. Audio Visual Techniques
Like films, closed-circuit television, audiotapes, and video-tapes are
used in this process. Audiovisuals are more expensive than
conventional lectures. They are used in following situation:
1. When there is a need to illustrate how a certain sequence should be
followed over time.
2. When there is a need to expose trainees to events not easily
demonstrable in live lectures.
3. When the training is going to be used organization wide.

6. E-learning : Training on-line
The use of the internet or an organizational intranet to conduct
training on-line.
Web-enable
course content
Link module
content to
training
objective
Customize for
learner centric
use
Identify e-
learning
measurement
means
Modularize
content

7. Programmed learning
Is a systematic method for teaching job skills which involves
following functions:
i. Presenting questions, facts or problems to the learner.
ii. Allowing the person to respond
iii. Providing feedback on the accuracy of answers.
Its main advantages are, first it reduces the time, second learner
learns at its own pace.

TRAINING DESIGN
Training must be designed to address the assessed need.
Effective training design comprises of :
1. Learning – The Focus Of Training
2. Transfer of training
Contd….

TRAINING DESIGN (Contd..)
1. LEARNING – The Focus Of Training
Learning is a complex psychological process that is not fully understood
by practitioners.
It comprises of -
a) Determining Learner Readiness: they must have basic skills
necessary for learning i.e. ability to learn, motivation to learn and
self-efficacy.
b) Understanding Different Learning Styles:
 Auditory learners (one who learn best by listening),
 Tactile learners (one who must get their hands on and use
training resources),
 Visual learners (one who learn most by pictures and images
c) Designing Training For Transfer.
Contd…

Training design must consider that all the trainees are adults, but
have varying learning style, experience and anxieties.
 Adult learning :
1. Adults have need to know why they are learning something.
2. Adults have self need to be self directed.
3. Adults bring more work-related experiences into the learning process.
4. Adults enter into learning experience with a problem centered
approach.
5. Adults are motivated to learn by both extrinsic and intrinsic factors.
For effective training adults should be actively engaged in learning and
problem solving process

TYPES OF PRACTICES IN LEARNING
 Active practice- occurs when trainees perform job-related task and
duties during training. It is more effective than simply reading or
passively listening
 Spaced practice- occurs when several practice sessions are spaced
over a period of hour or day.
 Massed practice- occurs when a person performs all of the practice at
once.
Contd….

TYPES OF PRACTICES IN LEARNING
(Contd…)
 Behaviour Modeling – It is the most elementary way to learn. It
is learning by copying someone else‟s behaviours.It is used
extensively as the primary means for training supervisors and
managers in interpersonal skills.
 Reinforcement and immediate confirmation- Reinforcement
means people tend to repeat responses that give them some type of
positive reward and avoid actions associated with negative
consequences. Immediate confirmation means people learn best if
reinforcement and feedback is given after training.

2. Transfer of training- In transfer of training, trainers should design
training intervention for the highest possible transfer of training. This
transfer occurs when trainees actually use on the job what they learnt
in training.
Effective transfer needs following:
a) Trainees can use things learned in training and apply it to the job.
b) Employees maintain their use of the learned material overtime.

IMPLEMENTATION OF TRAINING
TRAINING TECHNIQUES :
1) ON-THE-JOB TRAINING (OJT): In this training a person
learns a job while working.
 Various types of OJT :
a) Coaching (understudy method), here employee is trained by an
experienced worker.
b) Job Rotation, here employee moves from job to job at planned
intervals.
c) Apprenticeship Training, a process by which individuals become
skilled workers through a combination of class room instruction
and OJT.

Advantages of On-The-Job Training :
a) relatively inexpensive
b) trainees learn while producing
c) no need for expensive off-job facilities
d) get quick feedback about the correctness of performance

 STEP-BY-STEP PROCEDURE of OJT :
STEP 1 – PREPARATION OF THE LEARNER
 Put the learner at ease- relieve the tension.
 Explain why he/she is being taught.
 Create interest, encourage questions, find out about the knowledge
of the learner.
 Explain the why of the job, relate it to some job the worker already
knows.
 Place the learner as close to normal working position as possible.
 Familiarize the worker with equipment, materials, tools, trade terms.
Contd…

IMPLEMENTATION OF TRAINING(Contd..)
STEP 2 – PRESENTATION OF THE OPERATION:
 Explain quantity and quality requirements.
 Go through the job at the normal work pace.
 Explain each step between operations, difficult parts or
those in which errors are likely to be made.
 Explain the key points several times.
 Make the learner explain the steps.
Contd…

(Contd…)
STEP 3 – PERFORMANCE TRYOUT
 Correct the mistakes and if necessary, repeat few complicated steps.
 Make the trainer run the job at normal pace.
 Have the learner do the job gradually building up skill and speed.
 As soon as learner demonstrate ability to do the job, let the work begin.
Contd...

IMPLEMENTATION OF TRAINING(contd..)
STEP 4 – FOLLOW-UP
 Designate to whom the learner should go for help.
 Gradually decrease supervision.
 Correct faulty work patterns that begin to creep in.
 Compliment good work, encourage the worker to meet
quality/quantity standard.

(contd..)
2) JOB INSTRUCTION TRAINING (JIT): It is listing of
each job’s basic tasks, along with key point in order to provide step-
by-step training for employees.
The steps for JIT include: what is to be done, how it is to
be done and why it is to be done.
Contd…

IMPLEMENTATION OF TRAINING (Contd..)
3) LECTURES : They are a quick and simple way of providing
knowledge to large group of trainees.
Some useful guidelines for presenting your lecture :
 Give your listeners signals to help them follow your ideas.
 Don’t start out on the wrong foot.
 Keep your conclusions short.
 Be alert to your audience.
 Maintain eye contact.
 Make sure everyone in the room can hear.
 Control your hands.
 Talk from notes rather than from a script.
 Eliminate bad habits.
 Practice.

METHODS TO INCREASE THE TRANSFER OF
TRAINING
TRANSFER OF TRAINING- Is a process whereby trainees actually
use on-the-job what they learnt in training.
a) Offering trainees an overview of the training prior to the actual
training. This helps in short term and long term transfer.
b) Ensure that the training mirrors the job context as much as possible.

EVALUATION AND MONITORING OF
TRAINING
The penultimate stage in the training strategy is the evaluation and
monitoring of training. It is the most important and often the most
neglected or least adequately carried out part of the training process.
It is both-Simplistic and Complicated.
 Simplistic because monitoring is a process whereby information is gleaned
from trainee and then the course and the program are amended in the light
of these comments.
 Complicated because there are other „stakeholders‟ in the process besides
the trainees, i.e. designers of the courses, the trainers and the sponsors.

 Questionnaires (Feedback forms) or ‘happiness sheets’ are common way
of eliciting trainee response programs.
Tests or examinations are common on formal courses which provide a
certificate, e.g. diploma in word processing skills although end-of-course
tests can be provided after short courses to check the progress of trainees.
Projects initially seen as learning methods but they can also be provide
valuable information to instructors.
Structured exercises and case studies are opportunities to apply learned
skills and techniques under the observation of tutors and evaluators.
Tutor reports. It is important to have the opinions of those who deliver the
training. This gives a valuable assessment from a different perspective.
contd…

METHODS OF EVALUATION(contd…)
 Interviews of trainees post course or instruction period. These can be
informal or formal, individual or group or by telephone.
 Observation of courses and training by those devising training
strategies in the training department is very useful and information
from these observations can be compared with trainee responses.
 Participation and discussion during training needs people who are
adept at intercepting responses as this can be highly subjective.

LEVELS OF TRAINING EVALUATION:
As identified by Donald L. Kirkpatick
Reaction
Learning
Behaviour
Results
DIFFICULTEASY
LOW
HIGH
BASIS OF EVALUATION
VALUETOORGANISATION

It is best to consider how training is to be evaluated before it begins. As shown
in the figure in last slide, evaluating training becomes successively more
difficult as evaluation moves from reaction to learning to behaviour, and
then to results measures.
 REACTIONS: Oganisations evaluate the reaction levels of trainees by
conducting interviews or by administrating questionnaires to the trainees.
 LEARNING: Learning levels can be evaluated by measuring how well
trainees have learned facts, ideas, concepts, theories and attitudes. Tests on
the training material are commonly used for evaluating learning. Of course,
learning enough to pass a test does not guarantee trainee will remember the
training content months latter or will change job behavior.
 BEHAVIOUR: Evaluating training at the behavioural level means:
(1) Measuring the effect of training on job performance through interview of
trainee and their co-workers.
(2) Observing job performance.
However, behaviours are more difficult to measure than reaction and learning.
Even if behaviurs do change, the resultsthat management desires may not be
obtained. ARISE TRAINING & RESEARCH CENTER

RESULTS: Employees evaluate results by measuring the effect of training on the
achievement of organisational objectives. Because results such as productivity,
turnover, quality, time, sales, and cost are relatively concrete, this type of
evaluation can be done by comparing records before and after training.
The difficulty with measuring results is pin-pointing whether
changes were actually the results of training or other factors of major impact.

INTEGRATING TRAINING WITH PMS
PMS: Performance Management System
 It is the process used to identify, encourage, measure, evaluate, improve
and reward employee performance.
 It is defined as a performance appraisal system that does not force
managers to give false or misleading measurement and instead facilitates
open, job-related discussion between the supervisor and the employee.
 It is the integration of performance appraisal system with broader human
resource systems as a means of aligning employees‟ work behaviours with
organisation‟s goals.
contd…

INTEGRATING TRAINING WITH PMS
(contd…)
Functions of PMS:
1. Links organisational strategy to the results
2. Provides information to the employees about their performance.
3. Clarifies what the organisation expects.
4. Identifies development needs.
5. Documents performance for personnel records.

PERFORMANCE
Performance is essentially what an employee does or does not do.
It includes following elements:
 Quality of output
 Quantity of output.
 Timeliness of output.
 Presence at work.
 Cooperativeness.

PERFORMANCE MEASUREMENT
There are three basic categories of performance information and its
measurement:
1. Trait-based assessment systems assesses or identifies the abilities or a
subjective character trait of employee such as-attitude, initiative or
creativity. e
2. Behaviour-based systems measures the extent to which an employee
engages in specific, relatively well defined behaviours while at the job,
which leads to success.
3. Results-based systems measures the bottom line associated with an
employees work and his/her accomplishments.

EFFECTIVE PERFORMANCE MANAGEMENT
Performance Management is used to develop employees as resources. It can
lead to higher employees motivation and satisfaction. But in an era of
continuous improvement, and ineffective PMS poses a huge liability. To be
effective a PMS should be:
 Consistent with strategic mission of the organisation.
 Beneficial as a development tool.
 Useful as an administrative tool.
 Legal and job-related.
 Viewed as generally fair by employees.
 Effective in documenting employees performance .

ENHANCING PMS
PMS can be improved by training supervisors in doing performance appraisals.
Training should center around minimising rater errors and providing a common
frame of reference on how raters observe and recall information. Skills of
employees also affects performance rating because employees use “upward
influence”.
Training evaluators and giving them feedbacks are ways to improve raters‟ ability
to make accurate assessment. Training programs are classified into:
 Rater-error Training: It means to reduce rating errors, such as leniency,
severity, central errors and halo-errors.
 Frame-of-Reference Training: It is a common frame of reference in
evaluating performance of employees into good or poor depending upon actual
behaviour of employee in the organisation.
 Information-Processing Approach: It is an approach where raters are
trained to be accurate in observing and rememberig the behaviour and
performance of employees. It comprises of Observation Training and Decision-
making Training.

PERFOMANCE MEASUREMENT CYCLE
Administrative decisions:
• Promotion
•Transfer
•Discipline
•Pay raise
4. Monitor goal progress,
undertake development
3. Coaching by
supervisor throughout
the year
2. Monitor goal progress,
undertake development
1. Set clear, measurable
performance goals and
make developmental
plans.
5. Annual appraisal
against goals.
Adjust goals and plan
for the next year.

PMS LINK WITH STRATEGY AND RESULTS
Organisational Strategy
Performance Management Practices
•Identify
•Encourage
•Measure
•Provide feedback
•Provide assistance
•Reward
Employee Performance
Performance Management Outcomes
•Development
•Productivity
•Advancement
•Discipline
•Pay raises
•Termination
Organisational Results

COMPONENTS OF COMPENSATION
Compensation
Indirect Direct
Base Pay Merit Pay
Salary Wages
Protection
Programs
•Medical
Insurance
•Life insurance
•Pension
•Society
security
Pay For Time
Not Worked
•Vacations
•Holidays
•Sick leave
•Jury duty
Service and
Perquisites
•Recreational
•Facilities
•Car
•Financial planning
•Low cost or free
Meal
Incentive Pay
•Bonus
•Commission
•Piece rate
•Profit sharing
•Stock option
•Shift differential
Deferred Pay
•Saving plans
•Stock
purchase
•Annuity

INTEGRATING TRAINING WITH
COMPENSATION
Compensation : employee compensation refers to all forms of pay or
rewards going to employees and arising from their employment. It is
an important factor affecting how and why people chose to work at
one organization over others. It helps in attracting and retaining
employees in a competitive manner.

TYPES OF COMPENSATIONRewards can be both Intrinsic and Extrinsic.
 Intrinsic Rewards include praise for completing a project. It
includes psychological and social effects of compensation.
 Extrinsic Rewards include tangible (monetary and non-
monetary) forms. It is of two types.
1. Direct Compensation : monetary rewards for work done. Ex.-
Base Pay (Wages, Salaries), Variable Pay (bonuses, incentives,
stock options)
2. Indirect Compensation : based on membership in an
organization and consist of benefits. Ex.- Medical/Life Insurance,
Paid Time Off, Retirement Pension.

TRAINING AND COMPENSATION
 Compensation is basically based on entitlement (indirect),
performance (direct) and company‟s policies.
 Performance can be enhanced by proper training whereby increasing
the compensation.
 Company‟s policies are set by HR managers who can be trained so as
to utilize human resource in best proper way.
 Current trends in compensation are Skill-Based, where skill can be
enhanced by proper training.

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