Professional Documents
Culture Documents
assets of. an organisation. They can be used as a means for developin.g competitive. advantages.
In addition, manpower /people in the organisation act as Source of creativity. They can produce
unlimited ideas which can be used for the progress a..'1d prosperity of an organisation. This
suggests the signific;mce of human resources which need effective utilisation through careful
management.
The human resource is very important and useful in every organisation. It should be nurtured and
used for the benefit of the organisation. This is a challenging job before persOlmel manager /
management. The organisation can make rapid progress only when the employees are efficient,
satisfied and co-operative. On the other hand, the organisation will have to face various problems
and difficulties, if the employees are not co-operative but hostile. This indicates that human
resource is most strategic and critical determinant of growth of a business unit. Every
organisation needs loyal, efficient and satisfied labour force. For this, adequate attention should
be given to HRM.
HRM is a management function that helps managers to recruit, select, train and develop
employees for an organisation. It is concerned with the people's dimension in organisations.
CHAPTER 2
OVERVIEW OF HRM
FEATURES OF HRM:
objectives. This is natural as industrial and other activities can be conducted only with the
support of human resources. HRM aims at developing and maintaining team spirit at the
organizational level. Such team spirit brings success to the organisation.
(7) Future-oriented:
HRM is concerned with helping an organisation to achieve its objectives in the future by
providing competent and motivated employees. It makes an attempt to integrate individual
objectives of employees with the organisational objectives. HRM provides long term benefits to
individuals. (employees), organisations and the society at large.
(8) Challenging function/activity:
HRM is a challenging function/ activity as it deals with the people/employees who are always
unpredictable. Employees have emotions and sentiments and cannot be treated like machines. It
is necessary to handle them and activities related to them tactfully. In short, HRM brings
challenges before HR manager from time to time. It also provides opportunities to organisations
to grow through the efforts of efficient and devoted manpower. HRM is a key element in dealing
with the economic, technological and other problems faced by business organisations. Such
problems can be solved with the help of devoted team of employees.
SCOPE/FUNCTIONS OF HRM
6. Performance appraisal:
Once the employee has put in around 1 year of service, performance appraisal is conducted that
is the HR department checks the performance of the employee. Based on these appraisal future
promotions, incentives, increments in salary are decided.
9. Industrial relations:
Another important area of HRM is maintaining co-ordinal relations with the union members.
This will help the organization to prevent strikes lockouts and ensure smooth working in the
company.
11
OBJECTIVES OF HRM
The primary objective of HRM is to ensure the availability of a competent and willing workforce
to an organisation. In addition, HRM objectives are four fold- societal, organisational, functional
and personal.
The objectives of human resource management in any industrial organisation can be summarised
as under:
(1) To attain maximum individual development (self development) of the members of an
organisation and also to utilise available human resources (with the organisation) fully and
effectively.
(2) To mould effectively the human resources.
(3) To establish desirable working relationships between employer and employees and between
groups of employees.
(4) To ensure satisfaction to the workers so that they are freely ready to work.
(5) To improve the service rendered by the enterprise to the society through better employee
morale which leads to more efficient individual and group performance.
(6) To establish and maintain a productive and self respecting -relationship among all the
members of an organisation.
(7) To ensure the availability of a competent and willing workforce to the organisation for its
progress and prosperity.
(8) To help organisation to achieve its goals by providing well trained, efficient and properly
motivated employees.
(9) To maintain high morale and good human relations within the organisation for the benefit of
employer and employees.
(10) To secure the integration of all the individuals and groups with the organisation by
reconciling individual/group goals with those of an organisation.
12
Management itself is a challenging job. New problems and challenges developed from time to
time due to changes in the composition of business environment. This is applicable to
production, marketing, finance and other aspects of business. Every manager has to face such
challenges of change in relation to his area of operation. The same is the case with HR manager
who looks after manpower employed in his organisation. It is equally true. to say that the' area of
HR management is full of challenges in the new millennium. The future has many challenges for
the managers of tomorrow. In fact, the modem day / current challenges before HR Manager and
HRM are identical. Modem day challenges before HR managers are more complex due to the
process of liberalisation and globalisation. The overall industrial situation is fast changing.
Labour laws are amended and liberal treatment is offered to industrial units operating in special
economic zones (SEZs). In addition, multinationals are expanding their activities in India. All
such changes or rapidly changing scenario are introducing new . elements in the field of human
resource management. As a result, the challenges before to-day's HR manager are extremely
delicate and difficult.
Modem day or current challenges faced by to-day's Human Resource Manager are as explained
below:
(2) Challenges relating industrial relations: HR manager has to face many challenges in the
area of industrial relations. Cordial industrial relations are difficult to maintain due to excessive
demands of employees and lack of constructive approach on the part of trade union leadership.
13
Industrial disputes developed even due to minor causes and disturb the orderly functioning of the
industrial unit. How to maintain cordial industrial relations over a long period is one important
challenge before HR manager.
(3) Challenges relating to provision of welfare facilities: HR manager has to look after the
provision of welfare facilities to employees. He has to provide safety and security at the work
place. This responsibility also poses problems from time to time. Employees demand additional
welfare facilities. They also raise complaints regarding inefficient administration of welfare
facilities. There are financial constraints while spending money on welfare activities. This makes
the provision of welfare facilities complicated. This is one
Challenge before a HR manager.
(4) Challenges relating to manpower management: HR manger has to look after certain
functional activities such as promotions and transfers, administration of grievance procedure,
execution of labour legislations and so on. This work is also complicated and leads to
dissatisfaction among the employees. Charges of partiality and favouritism are made as regards
promotions and transfers. It is necessary to introduce fair personnel policies so as to avoid
dissatisfaction among the employees.
(5) Challenges relating information collection, storage and. ready availability when
required: HR department has to collect and store lot of information regarding the manpower
employed in the organisation. Such information may be required urgently and also in the
consolidated form. For this, computer based information system needs to be introduced. How to
introduce such information system is one challenge before a present day HR manager.
(7) Challenges relating to expansion, modernisation and automation: Along with the
expansion of business, automation and modernisation of many activities will be necessary. This
may lead to retrenchment and the problem of surplus manpower in the organisation:- The
employees and trade union may protest against such policies and may adopt an attitude of nonco-operati9n. Here, the personnel manager will have to persuade the employees to identify
themselves with the organisation and its goals. He will have to act as an agent. of change and
also sensitive to the hardships of employees. This is a new challenge before HR manager.
(8) Challenges relating to collective bargaining and other techniques of labour participation
in management: HR manager has to play an important role in the process of collective
bargaining and workers' participation in management. Both the activities are important but
difficult to introduce due to the negative attitude of employees and their trade union leadership.
How to secure co-operation 'of employees and their unions in this regard is one challenge before
the present day HR manager.
(10) Challenges relating to trade union activities: The job of HR manager relates to people
employed in the organisation. He has to manage them properly for the benefit of the
organisation. However, human behaviour is always uncertain. Employees may not appreciate
personnel policies which are actually favourable to them. They may come under the influence of
trade union leaders or political leaders and oppose management as regards certain policies and
programmes. This leads to new labour problems which are difficult to deal with. In short, HR
manager has to face new challenges in the normal course of his functioning.
15
ROLE OF HR MANAGER:
The HR manager is a generalist who administers and coordinates programmes cutting across
functional areas. He is usually a top-ranking person at a plant or facility and, as such, is expected
to know about all areas of HRM. This is because the HR manager has to oversee the
implementation of HR policies at the facility and advice line managers on HR issues.
The HR manager must be fair and firm, tactful, sympathetic and considerate. He needs
knowledge of labour laws in order to play his role in an orderly manri.er. HR manager needs
both managerial qualities (intelligence, emotional stability, analytical qualities, etc.) and job
related qualities (communicative quality human relations quality, technical quality, etc.) for
showing good/promising performance.
We have already noted the challenges before HR manager. This suggests that his position and
role in the organisation is positive and crucial. He is on par with other managers. However, he is
closely connected with all other departments as he is concerned with the HR policies which
remain uniform at the organisational level.
The status of HR department in the total organisational structure depends on whether the unit is
small or large. In most of the small organisations, there is no separate department to coordinate
the activities relating to personnel manpower employed.
16
The banking industry is a highly regulated powerhouse that stabilizes the economic
environment of nations around the world. Banks store sensitive, personal information about their
clients, and commercial banks often house more valuable inventory -- cash -- than other retail
operations. Bank employees, from executives to tellers, must have a higher level of integrity and
trustworthiness than employees in most other industries, making the role of HR in banking that
much more important.
Applicant Screening
Certain jobs do not really require a thorough background check, but any job in a bank
definitely does. Human resource departments in banks must go the extra mile to uncover the
criminal and financial history of job applicants, for the safety of their clients and their
organization as a whole. Banks are highly unlikely to hire candidates with financial fraud on
their records, for example, due to the sheer weight of temptation a position in a bank would place
on someone with that kind of history.
Bank Security
Human resources departments must design and monitor work processes to reduce
opportunities for internal theft and collusion. HR policies separate cash receiving, storage,
processing and disbursement, and record all activities via video surveillance. In the event that an
employee attempts to steal from a bank, the HR department must handle the legal paperwork and
administrative processes required by court proceedings.
Pay Decisions
As with other industries, HR professionals in banks have a hand in making decisions for
pay raises and promotions. Bank workforces are unique in that they often have two methods of
paying employees: salaries for back-office and other personnel, and commissions for sales
employees. Promotion decisions for salespeople selling loans and other financial products differ
from decisions to promote administrative staff. Banks' HR departments must manage both
17
Executive Recruitment
The banking industry is highly competitive, and banks constantly navigate a legal
minefield that can devastate companies that step out of line. Finding the right executives is
crucial in any industry, but especially one in which competition is so fierce and legal compliance
so important. Human resources professionals in banks must go the extra mile to recruit the best
executive talent in the banking field, allowing their organizations to thrive and grow into the
future. Human resources departments in corporations must gain approval of the board of
directors before bringing someone in to fill an executive spot.
18
CHAPTER 3
19
INTRODUCTION:
The concept of human resource development (HRD) has acquired special significance in the
present. rapidly changing global economy. HRD may be defined as a process of increasing
knowledge, skills and capability of people/employees. Such HRD is essential at the national
level for rapid economic/industrial progress. In the present world, manpower is treated as an
asset only when such manpower ~s educated, skilled, well trained and capable to accept new
challenges from time to time. A country can make steady progress only when its human
resources are well trained and well developed. The same rule of HRM is applicable to business
enterprises. They need well trained, matured, motivated and loyal manpower for stability,
. growth and competitive position. Business organisations give special attention to the
development of human resources. They provide training and self-development facilities/
opportunities to workers, supervisory staff and top level managers. Huge money is spent for this
purpose which is a type of investment for HRD. At the enterprise level, employee training (for
operative staff) and executive development (for supervisory staff) are two main areas of human
resource development. Training and development constitute an ongoing process in many
organisations and this suggests growing importance of training and development. In this chapter,
we propose to discuss different aspects of employee training and development.
Training comes next to recruitment, selection and -placement. It normally relates to the job
assigned and is in the form of guidance/instructions for performing the job safely and efficiently.
It is necessary and useful in the case of all categories of operative employees, supervisory staff
and managers. Training raises their skills and creates confidence and ability to perform the job
efficiently. It also facilitates self-development and career development of employees. In fad, the
main purpose of training is to develop the human resources within the organisation. The
20
resources/talents within an employee are in a dormant form which are to be activated through the
process of training. In brief, training is the watchword of present dynamic business world.
Training is necessary due to technological changes rapidly taking place in the industrial field.
New machines, new methods and new techniques are introduced in the production, marketing
and other aspects of business. Training is a must for using new machines and new techniques. It
is a process of increasing knowledge' and skills of doing a particular job. Its purpose is to raise
the competence of an employee.
Training is normally regarded as a short term process by which non-managerial! operative
personnel acquire the technical knowledge and skills for efficient conduct of jobs assigned. It
leads to efficient and skilled behaviour of employees. Such training i.s necessary for raising
overall efficiency of an organization and also for achieving organizational objectives. Training
given to managers is regarded as management development. Such management development is a
continuous as well as long term process and is useful for creating a team of capable managers for
the benefit of an organization. The term development is used in the case of training of managers.
Training of employees is also essential along with the introduction new production techniques.
Industrial training is for
a short period but has wide coverage. It relates to knowledge, information, technical skills, social
skills, administrative skills and conceptual skills and finally positive attitude building. Training is
for developing overall personality of an employee. It also creates positive attitude towards fellow
employees, job and the organisation where he is working. Training is the responsibility of the
management as it is basically for rising the efficiency and productivity of employees.
Expenditure on training and development is an investment ,for manpower development and gives
rich dividend to employees and organisation in the long run. It makes organisation capable to
face new challenges from timeto-time, There are different types of training. They include:
Induction/orientation training, job training, training for promotion, safety training, refresher
training
and remedial training.
21
DEFINITION OF TRAINING:
(1) According to Edwin Flippo, training is "the act of increasing the knowledge and skill of an
employee for doing a particular job."
(2) According to Wayne Cacio, "Training consists of plnn~1ed programs undertaken to i:nprove
employee knowledge, skills, attitudes, and social behaviour so that the performance of the
organisation improves considerably. "
MEANING/CONCEPT OF DEVELOPMENT:
Managers/ executives constitute the most valuable assets of an organisation. The success and
growth of an organisation depend on the calibre and performance of managers. Systematic
education and training need to be given to them so as to raise their capacity to face adverse
situation and new challenges. For this, mail.ao-ement development/executive development
programmes are n:cessary and useful. In addition to training for operative staff, an organisation
has to take steps for training programmes for supervisory staff and managers. Such training
programmes
are
called
management!
Executive
development
programmes.
Various
methods/techniques are used under management development for improving the skills, behaviour
and performance of managers. Such development programmes are necessary as every
organisation needs a team of highly qualified and trained managers at the higher management
levels in order to frame and execute its business plans and policies. For this, every
organisation, .particularly large as well as progressive, has to take suitable steps for management
development. In other words, it has to use different training methods for training its executives.
Here, multi-skill training facilities (for developing technical skills, managerial skills and
conceptual skills) will be offered to trainee officers (engineers, etc.), supervisory staff and
managers working at the higher levels. Continuous efforts for management. development are
essential in the present highly competitive business world. Management development
programme (also called Human Resources Development (HRD) programme) acts as a key factor
for the survival and growth of a business unit.
Management development consists of all means by which executives learn to improve their
22
performance. It is designed to improve the effectiveness of managers in their present jobs and to
prepare them for higher jobs in the future. It prepares managers to accept higher responsibilities
and develops responsible leadership within the organisation. Management development
facilitates replacement of senior managers (on recruitment) by well trained and competent
managers available within the organization. Development aims at helping the managers to realise
their full potential. Management development is a continuous process as there is no time limit for
learning to occur. Secondly, management development is based on the assumption that there
always exists a gap between a manager's existing performance and his potential for the
performance. The untapped potential can be converted into actual performance through
management development programmes/ process. Management development process involves
stresses and strains. It seldom takes place in complete peaceful atmosphere.
23
For management development or for training managers, several methods I techniques are used..
These methods can be divided into two broad categories, namely, (i) Internal or on the job
methods or In-company programmes and (ii) extremely or off the job methods or out company
(2) Counselling: Under this method, the subordinate wanting advice approaches his superior.
Counselling is provided in matters relating to the job. However, on request from the subordinate,
counselling may also be offered on matters not directly related to the job. There is two-way
dialogue between the subordinate and the superior to find solution to his problem. Counselling
provides emotional stability to traineesubordinate. Counselling is possible in classroom methods
of training which include lectures, discussions, case study and role playing.
24
(3) Understudy assignment: An understudy is a trainee manager who is to assume the full
duties and responsibilities of the position currently held by his superior, when the later leaves his
post due to retirement, transfer or promotion. Here, a departmental manager (head) selects one of
his suitable subordinates to become his understudy. As an alternative, the personnel department
may make the selection of understudy. The departmental manager will guide him (i.e.
understudy) to learn his job and deal with the problems that confront the' manager daily.
TI1.e understudy will learn the job of his superior through observation and participation in the
decision-making. He may be. given specific problems to study and to make recommendations
for solving them. The understudy will be given wider exposure and an opportunity to develop
capacity to deal with difficult problems and complex situations.
(b) It relieves the superior from some of his duties and responsibilities.
(c) It avoids serious disadvantages to the organisation if the superior suddenly leaves the job.
(a) The competition for promotion is over when the understudy is designated.
(b) This method leads to jealousy and friction within the department.
(c) The understudy may not take adequate interest in his self-development because of his prior
selection.
25
(5) Junior Boards: Here, a junior board of junior executives is constituted. Major problems are
analysed in the junior board which makes recommendation to the Board of Directors. The young
executives learn decision-making skills and the Board Receives the collective wisdom of the
junior board. .
(a) In the junior board, it is not possible to give specific attention to the developmental needs of
executives.
(6) Delegation: Delegation is one more internal method of management development. The
performance of subordinates may not improve unless additional responsibility and authority are
26
delegated to them. Making the subordinates to achieve a particular target through delegation is
one way by which subordinates will learn to grow and develop independently. They will develop
leadership qualities and decision-making skills, which are necessary for a good manager.
(7) Appointment as 'Assistant to': A junior executive may be appointed as I Assistant to' senior
executive for the purpose of training and practical experience. Here, the junior executive is given
exposure to the job of senior executive and he learns new techniques while providing assistance
to his boss. This broadens his viewpoint and makes him ready for future promotions. The
superior executive also gets the benefit as he can delegate some of his responsibilities to the
assistant and also acts as guide of his assistant.
(9) Project Assignment: In the project assignment method, a trainee manager is given a project
that is closely related to the work of his department. The project relates to specific problem faced
by the department. Here, the executive has to study the project on his own and make
recommendations for the consideration of the departmental head. Such assignment provides
valuable experience to the trainee and develops problem-solving attitude, which is one essential
requirement of an executive.
(10) Promotions and Transfers: Promotions and transfers are two more internal methods of
management development. Promotion gives an opportunity to a manager to acquire new skills
required for the job at the higher level. It motivates him for self-improvement. Transfer also
facilitates the broadening of viewpoint required for higher positions. It gives an opportunity to
27
(1) Universities and Colleges: The universities and colleges, now, provide facilities of
management education. Here, education is given through lectures, discussions, home
assignments, tests and examinations. Mumbai University has its Bajaj Institute of Management
for various management development courses. Colleges affiliated to the Universities also
conduct DBM, MBA and other management development programmes for the executives from
business sector. Candidates working at managerial levels in companies are normally selected for
such training programmes.
(2) Management Institutions: Along with the universities and colleges, there are management
training institutions such as NITIE, Bombay Management Association, Productivity Councils
and so on. These institutes run special training courses for graduates interested in management
education and also orientation programmes for existing managers from public and private sector
enterprises. Companies can depute their managers for short orientation courses and update the
knowledge and information of their managers in specific areas. Even seminars, workshops and
conferences are arranged for the training of managers by various associations such as chambers
of commerce and export promotion councils.
(3) Sensitivity Training: This method is also called T-Group training or laboratory training. It
concentrates on face-to-face interaction. The trainees are put in open environment wherein
participants discuss themselves. The discussion is guided by an expert who get opportunity to
express their ideas and beliefs. It is an effective method to. develop awareness of self and impact
on others.
(4) In-basket Exercise: In this method, the trainees are proVided with basket or tray of papers
and files related to their functional area. They are expected to carefully study these and make
recommendations on the problem situation. The recommendations from different trainees are
compared solutions are worked out. Such solutions are put, preferably in the form of a report.
28
It is a simple and economical method. It reduces interdepartmental conflicts. The solutions are
worked out by the participants may not reflect real life Situations.
(5) Role-Playing: Role-playing has been defined as "method of human interaction, which
involves realistic behaviour the imaginary situations. It is particularly useful for bearing human
relations and leadership trainning. Its objective is to raise the ability of trainee manager while
dealing with others.
In the role playing, a conflict situation is artificially created and two or more trainees are
assigned different roles to play. For example, a male employee may assume the role of a female
supervisor and the female supervisor may assume the role of a male employee. Then, both may
be given a typical work situation and asked to respond as they expect others to do. Such role
playing results in better understanding among individuals. It helps to promote interpersonal
relations and attitude change...
(6) Case Study: Case study method was first developed by Christopher Lang dell and Harvard
Law School. A case is a written account giving certain details of the situation is relation to a
specific matter. Such case study may be related to any aspect of management such as production,
marketing, personnel, finance and so on. The case presented is always incomplete. This means
the solution to the problem is not provided. The participants are supposed to identify the best
available solution.
A small group of managers is asked to study the case in the light of theoretical study already
completed and is followed by open discussion in the presence of capable instructor, who can
guide intelligent discussion and analysis. There is nothing like one correct answer to the case
study matter.
Case study method has certain advantages. These are:
(a) in-depth thinking about the matter by managers,
(b) more perception in situation and greater respect for the opinions of others.
(7) Conferences and Seminars: Deputing officers for conferences and seminars is a method
available for management development. Various matters are discussed systematically in such
29
conferences and seminars. This provides new ~formation and knowledge to the managers. The
participants 111 . such conferences and seminars are limited. As a result more persons get an
opportunity to participate in such
Conferences for self-development. Conferences may be directed or guided or may be for
consultation and finally for problem-solving.
Seminars are similar to conferences and are usually for one day or few hours. Participants are
supplied notes or synopsis of lectures to be delivered. This gives additional information to
participants and enables them to use the same in their daily routine.
(9)
Management/Business
Games:
variety
of
computer.
and
non-computer
management/business games have been devised for training of managers. This training method is
used in management development. It is a type of classroom method of training. The game is
designed to represent real life situation. Employees for managerial positions are put in an
exercise of actual decision-making. A problem is provided to them along with all the necessary
information and constraints. The employee is asked to make a decision. The quality of this
decision is judged by how well the applicant has processed ,the information provided to him. The
processing of information is supposed to be guided by knowledge of the goals and policies of the
organisation. Even if mistake is made in the game, the trainee can learn a lot out of his mistake.
This avoids possible mistakes while taking decisions for his company. This method develops
capacity to take rational decisions by managers.
(10) TV and Video Instructions: TV and Video instructions are used for training and
management development programmes. At present, programmes on management problems are
arranged on TV network regularly. Vid'eotapes are also available on management training. Books
30
and periodicals are published regularly on management. Audiovisual aids (film strips, Video,
tape recorders, TV, overhead projectors, etc.) are now used for training of managers.
(11) Transactional analysis - It is a tool for improving human relations and interactions, and of
promoting rationale and mature behaviour. It identifies 3 main behaviour:Parent (taught
behaviour), Adult (thought behaviour), Child (felt behaviour)
31
PROCESS/PROCEDURE PROGRAMME:
Training programme needs to be prepared properly and as per the specific needs of the
organisation. Secondly, training process/ programme needs to be implemented in an orderly
manner, failing which the net result of training will not be positive/ effective. Training process is
lengthy and time consuming. It starts with the identification of training needs and ends when
training is provided as per the needs and positive results are actually verified through evaluation
technique.
The steps involved in the training process/programme are as noted in the chart given on the next
page:
32
Training needs can be identified clearly through the following types of analysis:
(a) Organisational Analysis,
(b) Operations Analysis
(c) Manpower Analysis.
(a) Organisational analysis relates to the determination of the organisation's goals, its resources
and the allocation of the resources as they relate to the organisational goals. The analysis
(detailed study) of the organisational goals establishes the framework within which training
needs can be defined more clearly. The purpose of organisational analysis is to determine where
training emphasis should be placed within the organisation. The scope of organisational analysis
is wide and includes:
(i)Analysis of objectives,
(ii)Resource utilisation analysis,
(iii)Organisation climate analysis, and
(iv)Environmental scanning.
(b) Operations analysis focuses attention on the task or job regardless of the employee doing
the job. This type of analysis manpower analysis will be necessary. Thereafter, training
objectives need to be decided. The objectives decided may be innovative, problem solving or
regular. This will be followed by selecting the methods suitable for training purpose. The
methods selected will be used for giving actual training to employers. Finally, evaluation of
training programme will be undertaken. Here, the contribution of training irl achieving training
objectives will be analysed for the introduction of remedial measures, if required. In this
sequence, training programmes can be designed for hospital staff or employees of airway, bank
or insurance company.
Evaluation of training and development programme is a must as it provides many benefits to the
organisation and also to trainees. Evaluation enables an organisation to monitor the training
33
programme and modify it or update it in the light of the information available from the
evaluation process. Evaluation of training provides useful information on the basis of which the
utility of training and its integration with other functions of HRM can be judged. It is rightly
argued that "Training, like any other HR function, should be evaluated to determine its
effectiveness". This statement suggests tIle need and importance of evaluation of training
programme. Every organisation has to develop its own approach and system/procedure for
evaluating the effectiveness of its training programme. Evaluation of every HR function is
necessary fo: raising its effectiveness. This rule is equally applicable to training and manpower
development programme. Simply introducing training is not adequate. It must be made effective
and purposeful. For this evaluation is essential. Such evaluation will give reliable conclusions as
regards the effectiveness of training given. IT companies as well as engineering companies like ~
& T provide quality training to their employees. This is possible because of continuous
evaluation of. training over years. Such evaluation (relating to effectiveness of training) needs to
be systematic and also by experts/well trained officers. Training is a means and not the end in
itself. Training effectiveness is the degree to which trainees are able to learn and apply the
knowledge and skills acquired in the training programme. Training needs to be effective. In the
absence of such effectiveness, Training and Development
it will be mere formality. This suggests the need and importance of evaluation of employee
training.
34
(1) Improves efficiency: Training raises the efficiency and productivity of workers and
managers. This leads to more production and profit to employer. It also improves the
performance of workers due to their motivation.
(2) Improves quality of production: Training improves the quality of production. It also
reduces the volume of spoiled work and wastages of all kinds. This reduces cost of production
along with improvement in the quality.
(3) Reduces industrial accidents:' Training reduces accidents as trained employees work
systematically and avoid mistakes in the work assigned. This protects life of workers and the
property of the employer.
(5) Provides stable labour force: Training brings stability to labour force by reducing labour
turnover among workers and managerial personnel. It is rightly observed that "Nothing binds the
entire workforce to the company as effectively as opportunities to be trained, especially on skills
beyond their daily operations".
(6) Creates cordial industrial relations: Training moulds attitudes of employees and develops
cordial labour management relations. In fact, scientific recruitment and selection as well as
employee training play a useful role m developing and maintaining cordial industrial relations.
Training makes employees responsible and disciplined. It develops adaptability and co-operative
35
outlook among workers. This avoids frequent disputes, strikes and work stoppages. This also
ensures cordial industrial relations and industrial peace.
(7) Reduces labour absenteeism: Training reduces absenteeism among workers as trained
employees find their job interesting and prefer to remain present on all working days. Training
creates attraction for the job and work environment. An employee prefers to remain in the same
organisation over years because of promotion and other benefits. Training reduces labour
turnover to some extent and facilitates employee retention.
(8) Facilitates the introduction of new management techniques: Training facilitates the
introduction of new management I techniques and also new production techniques including
automation and computer technology.
(9) Creates a pool of capable employees: Training creates a pool of trained, competent and
capable personnel from which replacements can be drawn to fill up the loss of key personnel due
to retirement, resignation, etc. Training and development I act as ~ source of competitive
advantage.
(10) Provides guidance to newly appointed executives: Training provides guidance to newly
appointed executives and assists them to adjust properly with the job and the organisation.
Training develops a feeling of belonging towards the organisation and the work assigned.
(1) Creates confidence among employees: Training creates a feeling of confidence in the-minds
of employees. It gives personal safety and security to them at the work place. Due to training,
managers can motivate their subordinates and get the things done as per the requirements of the
organisation.
(2) Develops skills among employees: Training develops skills , which act as a valuable
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personal assets oJ employees. They remain permanently with the employees for use.
(3) Quick promotion: Training provides opportunity for quick . promotion and self-development
to managers.
(4) Offers monetary benefits: Training provides attractive remuneration and other. monetary
benefits to employees. Trained workers draw more salary than untrained workers.
(5) Creates adaptability among employees: Training develops adaptability among employees.
It also up-dates their information, knowledge and skills and keeps them .fresh. It actually
refreshes the mental outlook of employees:
(6) Facilitates self-management: Training develops positive attitude towards work assigned and
thereby creates interest and attraction for the job and the work place. Employees look after their
duties on their own and not due to external force i.e. supervision.
(7) Develops co-operative outlook: Training creates an attitude of mutual co-operation . and
understanding among the managers. Such attitude of co-operation is useful not only at the work
place but also in the social life.
(8) Updates knowledge: Training up-dates the information and skills of employees and makes
them capable to face all types of situations.
(9) Creates positive attitude: Training develops positive attitude towards work and creates
attraction for the workplace.
(10) Creates a pool of trained personnel: Continuous and updated training helps in creating a
pool of trained personnel from which replacements can be made to fill the loss of key personnel
at any time.
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(2) Provides better orientation: Training provides orientation for new employees at those
taking new jobs through transfer or promotion.
(4) Creates healthy work atmosphere: Training provides a good climate for learning and
growth. It makes organisation a better place to work and enjoy.
(5) Improves employee morale: Training improves interpersonal . skills. It builds up a group of
employees with high morale.
The advantages noted above suggest the importance of training and development programmes to
organisations. T &D programmes remove performance deficiencies in employees. They even
motivate employees to work efficiency.
(6) Increased Produtivity -, An increase in skill usually results in an increment in both quality
and quantity of output.
(7) Reduced Supervision - The trained employee is one who can perform with limited
supervision.
(8) Reduced Accidents - Proper training in both job skins and safety attitudes should contribute
towards in reduction in accidents.
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OBJECTIVES OF TRAINING
Provide opportunities for self development and thereby motivate for promotion and other
monetary benefits;
Teaching, on the other hand, is different. Here, as opposed to the training, the teacher
decides for himself as to what the objective of the learners should be. In the process, he imposes
his objectives on them, thereby losing track of real life applcation.
Training is the act of improving one's knowledge and skill to improve his / her job
performance. Training is job-oriented. It brings the gap between what the employee has and what
the job demands. For that matter, imparting training to employees working in all organized
sectors of human activity is no longer a matter of debate. As a matter of fact, of late, the need for
training has been recognized as an essential activity not only in the business organisations, but
also in academic institutions, professional bodies and the government departments. Several
conditions have contributed to make the organisations realize and recognize the need for
imparting training to their employees. They are as follows:
The ever widening gap between planning, implementation and completion of projects.
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To harness the human potential and give expression to their creative urges.
To bridge the gap between what employees has in terms of knowledge and skills and
what his / her job actually demands.
1. Organizational Development:
Organizational development is clearly one of the sterling achievements at the present time in
training, and indeed, inclusive of far more active and potent intervention than the word training
and education implies.
Management by Objectives (MBO): MBO is a way of managing people that emphasis the
integration of personal objectives and organizational objectives and is built upon self control.
2. Personal Development:
Programmes that provide orientation or basic training for new supervisors or managers
and teach them the mechanics or basic knowledge and skills.
Training programmes for managers that provide the further training and additional skills
for people and administration skills for job.
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Such program are designed to enable quality productions for entry level positions in specific
occupational categories and to meet the special skill training needs of designated groups of
adults.
5. Communication Training:
Effective communication training is skill training when its best done. It gives its participants
increased skills in the communication medium they are working. Communication training in an
organization should be training to produce people who can generate useful message-with a
thoughtful content expressed in a use full style.
The various training programmed in communication skills is listed:
Writing skills, Oral communication skills, Listening skills, Reading skills, Reading skills,
Interviewing Skills, Multiple skill programmers
6. Social skill:
The training in this area is broader in scope embracing many aspects. This category of training
aims at the development of individuals and team work
7. Experience:
It is cannot be taught or imparted in the training room. it is gained by putting knowledge ,skills,
techniques ,and attitude into use over a period of time in different work situations. education
makes one perfect
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A systematic & integrated approach to training should consist of various interrelated components
as shown below:
ORGANISATIONAL ANALYSIS
MANPOWER ANALYSIS
Identification of gap between existing and required level of knowledge, skills & attitudes.
Isolate problem areas amenable to resolution through training.
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METHODS OF TRAINING
OBJECTIVE MODEL
(Training methods)
Large group methods
Lectures
Some television
Video films
group discussion
syndicates
T-groups
Active learning
Individual methods
Programmed learning
Distance learning
Computer based
- Project assignment
- Brain storming
- Problem solving
- Simulation, games
- Tutorials
- Workshops
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Chapter 4
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Introduction
The global improvement already affected different business industry. The evolution of
technology is one factor to contribute the advancement of every sector of the business. When it
comes to human labor, the involvement of the Human Resource Management is still visible
because the productivity of every employee depends on them. The human resource department is
an essential foundation in building a successful business enterprise.
In the view of a business, specifically in the banking industry, employees and technology usually
work together. The bank feeds the information and process in acquiring technology and the
employees are highly trained to drive the system. To make the harmony and standardization
possible in the banking industry, the human resource fills the missing part of the story.
The existence of a human resources department is vital to overall productivity and efficiency of
the strong workforce in any thriving company. In most professional organizations, the role of the
human resources department is not sidelined or eclipsed by other departments. In fact, good
human resources can be one of the most valued and respected departments in an organization;
their job is people, and people are the companys most important asset.
One of the major roles of a Human Resource Department in a successful business involves a lot
of observation and analysis from behind the scenes. The intelligence of the human resource staffs
involves a compilation of complex data and metrics that follows the performance of individual
employees. Their specific job is to make the workforce competent is a vital task. The sensitive
nature of human relations and the work of human resource will adequately needed in making the
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managements tough decisions. And the essential part is keeping a secret behind the close door
meetings of who is going to let go, who is going to promote and who is going to hire1.
The Human Resource is the only department that can measure the ability of an employee before
deploying him into the actual work. The strategy of human resource manager is very reliable
because he, includes the other human resource staffs, are well-trained enough to this kind of job.
The human resource manager creates their own strategy depending in the nature of the business
that needs them. When the banking sector goes to the human resource management to hire new
employees, the first thing that a human resource manager will do is to look for the right
specification of the worker that the company needed. After determining the specification and
requirements, the strategy in hiring new and fresh employees are the next in the line. In the
works of (1997), they set a strategy that concerns in the Human Resource Strategy in Thailand.
As application on their work, the study will present the following strategy that can help for the
further study or if possible, actual implementation in one banking institution1.
This is one important factor that enhances their professionalism. Other factors include the fact
that there is more competition in the industry and the new generation of managers who are better
educated and well-trained in their professions. In the earlier stages, when banks were first set up
to provide financial services, banks used to recruit their employees who may graduate with any
field of studies at all. However, over time, the business schools and vocational schools have been
able to train more people in business administration. Therefore, banks can recruit and select
group of personnel with required skills. This has led to the improvement of these banks
operation.
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Most banks provide orientation programs for their new employees. Later on, these employees are
expected to be acculturated into the banks system through on-the-job training. For the human
resource development program, it has been found earlier that banks generally provide formal
training programs for employees at the supervisory level and up (1989).
All banks now prefer to hire their employees with bachelors degree. However, with the
competition from non-bank institutions in the labour market for the same pool of labour, many
banks lowered their requirement for the qualifications of their employees to those with
vocational college diploma in business administration area. This certainly necessitates these
banks to focus more on human resource development activities to maintain the banks
competitiveness. To ensure that the human resource will recuperate their investment in training
their personnel, some banks have requested their employees to sign the contract or create some
bonding contract that requires the personnel which will receive a certain training to pay back to
the bank in terms of time or cash if they would like to quit the organization.
Performance Appraisal
Most of the banks have an annual performance appraisal. Some, however, have the performance
appraisals done twice a year. This is for the human resource development purpose for some
banks. Most banks use their performance appraisals for the administrative purpose such as for
pay raise and promotion consideration. Large banks generally have very elaborate systems of
performance appraisal, such self-evaluation vs. supervisor evaluation. However, this is not very
common.
Large banks whose systems are very well-designed provide feedback to their employees after
they have been evaluated. If the subordinates do not agree on any points, they can appeal to their
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supervisor and to the upper management. All banks have formal system of employee
performance appraisal in that they have forms designed to measure or appraise employees for
particular qualities or competencies. Some may emphasize teamwork, creativity, and business
code of ethics, etc. other than interpersonal skills or managerial skills, or technical skills.
Compensation
Compensation in the banks nowadays varies. Most banks follow the market rate in each market
segment. Thus, in order to be able to attract the job applicants, most banks will follow the market
rates and will vary their fringe benefits to make their offers more attractive than their
counterparts in the banking industry. The issue of external equity of pay seems to be an important
one at the entry level. However, once become employees of a bank, the employees will also be
compensated for their special skills, such as computer programming, accounting, or some other
scarce skills. In general, for the Thai local banks, promotion from within practice has created a
large internal labor market. All banks provide bonuses to their employees but generally no other
financial gains. They do not have profit sharing plans and some incentive plans can be observed
in the fact that most banks now considered their branches as their selling points and have these
operate as profit centers.
Labor-management Relations
Most banks in our sample have unions. However, unions are usually organized at the bank tellers
and non-supervisory level. It can be said that unions in the banking industry are generally weak
and their collective bargaining with the employers mainly include wages and fringe benefits.
There have been no strikes. The unions are not very militant. The formation of bank unions is
usually through bank employees network. Unions are said to be establish because the
employees relationship with the management has been collaborative.
However, some cultural elements seem to facilitate their relationship with the management. The
union representatives addressed the manager by their seniority in age and work experience in
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their interaction with the management. Thus, a certain level of consideration was given to the
management side. This makes the management feels that they can negotiate and work out the
agreement which would satisfy the needs of both sides. In todays situation, some banks have
also brought unions into their participative system of management.
They do have some employee involvement activities and currently many banks have set up
empowered work groups. It is noteworthy though that the re-engineering process of the large
banks has somewhat created a sense of job insecurity among some employees particularly those
at the lower level. This could lead to a negotiation of the labor and management in the banking
industry. A new unionism maybe expected for the next decade if this organizational restructuring
process spreads out to other industries which are now faced with inefficiency of operation when
entering into the global market.
IT in Human Resource:
The Human Resource is also updated in the technological change. The technology gives a great
help in every business industry. The importance of a technology is being shared in every parts of
the organization to promote the accuracy and efficiency.
Acquiring a technology that can process the works of the human resource staff can make a
difference and can finish the job in less than an hour. But the information system of the human
resource department differs in the other field of business industry. And the appropriate process is
a good partner in the business industry that includes the human resource department.
Recently, HR-IT has gained significance since most organizations have been using technology to
transform HR, to increase HR productivity, to improve employee experience and to maximize
the value of the company's most important asset- employees by aligning their skills, activities,
and benefits with business objectives and strategies3.
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The process that makes the work of a human resource staff that involves technology is usually
covering the business role. These business roles are like Payroll Application, HR Application
Outsourcing, Enterprise Learning Management, Portal Implementation/Integration and HR
Analytics are key components of the solution set. The use of technology in terms of payroll will
secure that every entry are protected and cannot be manipulated. Still, the processes are set from
the beginning of its acquisition that usually compacted in a template and uses security code for
protection from the outsiders.
Conclusion:
To make a business successful, the right selection of right person in right department is one
factor that can create a great impact. The Human Resource is the only department that somehow
brings the first impression in the attitudes of every applicant. The human resource are fully
equipped and armed with a psychological knowledge that can interpret any persons action and
gesture. Through many behavioural exams and series of personal evaluation, the human resource
manager can analyze and judge well the applicant. Being a human resource manager is
sometimes deceiving. Why? Because most of the human resource department has a good
ambience and the attitude of the human resource can affect the others moods. The reason is to
keep the chain between the employees and the higher management intact and to make an inviting
communication.
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CHAPTER 5
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Traditionally over the years we have experienced the fresh recruitees were subjected for
induction training to acquire desired skill for combating the job situation. Also the personnel
were placed regularly under development programme to enable them to acquire or to renew their
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managerial skill. Quite often the company management remains generous to sponsor their men
for long term campus programme and also for foreign tour involving considerable money to
enable the employee concerned to acquire expertise and competency to meet future objectives of
the Company.
However, the volatile nature of manpower, raise the much talked about question of ROI (return
on Investment) of those employee friendly initiatives. Thus, the HRD department became often
skeptical for nominating any person for a course involving considerable time and money on fear
of losing the man after being trained. Well, definitely HRD department saved some money for
the organization by such decision but then had it played its role for the organization to reach its
larger business objectives? This managerial contradiction is there; across the industries, and
could only be handled efficiently if not eradicated completely if the organization have an
integrated HRM system having HRD department under its fold. The basic issue here is not the
reluctance of nomination for the high value programme but fear of losing the man due to lack of
Organization capabilities to capture the output on return after completion of programme.
There are considerable shift in approach for tackling HR from keep them happy to make them
productive. We have argument and counter argument on happy are productive. But the issue of
Productivity road for all-round happiness is probably most relevant for the age. If the man is
leaving is only leaving out of his value proposition to the competitor of the organization and
HRM department should foresee it and get equipped with the retention tool.
Whether Out-source or In-source
It is evident that the smaller Company prefers to outsource the T&D process. However, the
potential problem is how to align the business process of the concerned Company with the
generalized stereo typed training content of the trainer. Obviously due to budget constraint HRD
department cannot absorb the R&D cost of the trainer to enable them to learn the complete
business process and customize the course content to make it fit to organization requirement.
To handle this delicate but important issue one of the strategy may be development of a process
for vendor selection. Rather than adopting a casual approach of opting for need based vendor
select a dedicated Training Provider having experience in the vertical of the Industry and develop
a contract on medium term basis say for 2-3 years. The resultant advantage of adopting such
system is Assimilation of In-house system as well as the people with the trainer. These just not
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only meet traditional training objectives ? rather induce the management to sit down with the
trainer to discuss strategic goals & objectives of the organization ? also it specifies the skills and
knowledge needed to achieve them.
Macro & Micro level assessment
A detail inventory of the available skill sets of the prevailing talents is necessary to analyze the
GAP. These finally help the organization to customize training module. The requirements need to
be aligned with strategic goals of the organization and need to be assessed at three levels,
1. Organizational level training needs to be congruent with organizations goals without this
consideration, training may be working at cross-purposes to the organization.
2. Departmental level Differentiate between tasks that need to be learned on the job, and ones
that require training.
3. Individual level at individual level further micro assessment need to be made to develop a
full proof TNA system. ie, initiated by performance problems or change. Assessment done to
clarify problem, determine if training is the solution, analyze performance and characteristics and
competence of trainees.
Beyond ROI the other metrics
Training ROI is a hot topic on the speaking circuits at many of the training conferences.
However research findings suggest that not more than 6-10 % of expenditures in training actually
result in transfer to the job. Also the concept of measuring any single department for its ROI is
offensive to the team concept of an organization. Even if one remains determined to prove the
effect training alone has on the profitability of the organization, the outcome unfortunately
remains flawed. The Success of training thus preferred by assessment of effective and
appropriateness of training that is applicable to the organizations needs in an efficient manner.
Instead of chasing the elusive and meaningless training ROI, other training metrics are better
suited to demonstrate trainings impact.
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Work Ethics: Work ethics is one of the Challenges facing Human Resource Training and
Development. People are still influenced on their backgrounds and the employees dont judge
people by their expertise and skills but their tribal background. At other causes employees still
believe that if a person from their community becomes a CEO somewhere it is their time to get
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Trade Unions: Trade unions are one of the Challenges facing Human Resource Training and
Development. Trade unions can be very ruthless when it comes to negotiation and they include
the employees to strike. This affects the Human Resource practice because the Human Resource
managers are supposed to provide good working and conducive environment for workers.
Retrenchment and Downsizing: Another of the Challenges facing Human Resource Training
and Development is retrenchment and downsizing. When the economy becomes bad the
companies are supposed to reduce the employees in the organization which affects the
management.
Limited Research Work in Human Resource Management: Limited research work in Human
Resource Management is one of the Challenges facing Human Resource Training and
Development. There are very few publications in Human Resource Management.
Conclusion
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Human Resource Managers should focus on these challenges and make them their strengths in
order to gain a competitive advantage over their competitor companies. Thus the Challenges
facing Human Resource Training and Development
CHAPTER 6
CASE STUDY
TRAINING AND DEVELOPMENT IN ICICI
BANK
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CASE STUDY
INTRODUCTION
Training is an important and a very moral part of ICICL Training is given to all the cadre
of employees. Irrespective of their status and designation. Outbound training is provided by the
bank when there is a need.
ACTIVITIES UNDERTAKEN
Needs Analysis
Here they assess the trainee's real needs in preparatory meetings, level testing for language
courses, trainee interviews, or written questionnaires.
Setting Targets
Here they use the best methods available to establish where improvement is most needed.
This stage results in the setting of Course Objectives and the Course Program, which is agreed
upon.
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Course Design
The best trainer/s is now selected to handle the running of the project. The Course Program
is now designed to meet the objectives and needs and the COURSE STARTS.....
Training Reports
Trainers fill out weekly or monthly reports for each project, which are reviewed by First
Class' management. The company looks for content, time management and skill development.
Project Evaluation
The Program Coordinators are frequently in touch with the trainee to ask for their comments.
Feedback exercises are carried out twice on our longer courses.
They are very interested in the opinion of both client management and the course
participants. This covers all aspects of the course, including
Organization, methodology, trainer suitability and whether course objectives have been met.
The employees are trained through 2 ways i.e. the bank provide training programmes to
employees in 2 methods,
E - Learning prouramme
The employees are provided with the E Learning programme where the matter of learning is
present on the computer. Here all the Functional- aspects are covered. The employee just has to
open that site of E - Learning and team the topics by reading it out as they are designed as per the
learning convenience of the employees.
The topics covered under this programme are
1. The Regulatory Environment of Banking
2. General Banking Operations
3. Retail Deposits Programs
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C-Learning programme :
The employees are provided with the C - Learning programme which is conducted in the
class room. C - learning means Class room where all the behavioural aspects are covered which
requires the attention of the trainer and this training program is impossible to learn of its own by
the employee various skills are stressed in this learning program which the employee needs in
every stage of Functional aspects.
The topics covered under this programme are
1. Presentation & Communication Skills
2. Models for Management
3. Managing for Performance
4. Team Effectiveness
5. Negotiation Skills
6. Train the Trainer
7. Managerial Effectiveness
8. Personal Effectiveness
9. Interpersonal Effectiveness & Influencing Skills
10.Professional Communication Skills
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TRAINING TO EMPLOYEES
Traning is provided to all the cadre of employees as per their needs of the job.
The training provided to all cadres of employees is depending upon their needs and importance
of various tasks and jobs required to them. The leaders of each group or section or department
find out the need for training to a particular employee discussing HR head. The functional &
Behavioral training is provided to all the employees.
Normally there are 60 training programs of Behavioural skills are conducted and 20 - 30 skills
are conducted. i.e. 720 Behavioural skill program & 300 Functional skill ms are provided
annually.
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Upper class --- These employees are generally given training by the internal trainers as company
does not rely on the outsider trainers for top level employees.
Middle class --- They are usually trained by outside and inside trainers, they are also given
training through top level managers.
Lower class --- This category consists cers & clerks. These employees are given training
through the supervisors and heads of the departments.
The ICICI has special training rooms for conducting training sessions at the office of ICICI. It
has also a special training centres constructed at Khandala in Maharashtra, Delhi, and Bangalore
and at Chennai for all official and managerial level training
The training need is assessed by the collective discussion between the team or p head and the HR
manager. The venue is decided by the HR department. Generally employees who are under
training are sent to Khandala so that they can concentrate on E- Training activity only.
Upper class
The training plans are changed annually. There is flexibility in changing training plans but they
are changed on annual basis.
The employees' suggestions are considered while designing the training plans. Suggestions are
welcomed 4 days before the training program starts. The Employees can give suggestions about
changing the training program timing, extra topics added stress to be given on particular topic
etc.
The employees are informed about the training program through e-mail. The ad, timings, venue,
and topics of training are displayed on the intranet. The groups are also informed about the
training through their heads.
The employees are evaluated through the observation way. The employees are given feedback
forms during and after the training session.
Executive Recruitment
The banking industry is highly competitive, and banks constantly navigate a legal minefield that
can devastate companies that step out of line. Finding the right executives is crucial in any
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industry, but especially one in which competition is so fierce and legal compliance so important.
Human resources professionals in banks must go the extra mile to recruit the best executive
talent in the banking field, allowing their organizations to thrive and grow into the future. Human
resources departments in corporations must gain approval of the board of directors before
bringing someone in to fill an executive spot
QUESTIONAIRE
1. What are the activities undertaken under training and development in your bank?
3. Who gives training and where the training programs are conducted?
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CONCLUSION
After studying about HRM in detail, it can be seen that there are many challenges in HRM
which have to be faced, but there are many ways to overcome these challenges. While studying
about Training and Development,
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