Human Resource Management Learning Outcomes! 1. Explain the purpose - - PowerPoint PPT Presentation

Human Resource Management

• 1. Explain the purpose and scope of Human Resource Management in terms of resourcing an
• rganisation with talent and skills appropriate to fulfil business objectives.
• 2. Evaluate the effectiveness of the key elements of Human Resource Management in an
• rganisation.
• 3. Analyse internal and external factors that affect Human Resource Management decision-

making, including employment legislation.

• 4. Apply Human Resource Management practices in a work-related context.

Learning Outcomes!

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Session 5 Training and Development

Training And Developing Employees

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When a new employee joins a company, what are the challenges they are likely to face?

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When a new employee joins a company, what are the challenges they are likely to face?

What is Training and Development ?

Training and development is the field which is concerned with organizational activity aimed at bettering the performance of individuals and groups in

• rganizational settings.

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Training and development definition

Training and development is considered as the most fundamental theory

• f human resources Management (HRM) which would enhance a specific

skills and ability with the intention of achieving required standard through guidance and practices (Tracey et al., 2014)

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Differences of Training and Development

Training and development are two different concepts, whereas training is practiced for a short period of time while development is a long term process (Tai, 2006) The aim of a training program is to improve the performances through systematic advancement of knowledge and objective of a development program is that to prepare employees for future challenges and meet specific objectives (Lall & Zaidi, 2008) Training includes newly joined staffs and employees from all the hierarchical level, whereas; development mainly focuses on managerial level employees (Machado & Davim, 2016)

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Comparison of training and development

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Importance of training and development

• Improved employee performance
• Improved employee satisfaction and morale
• Addressing weaknesses
• Increased productivity and adherence to quality standards
• Increased innovation in new strategies and products
• Reduced employee turnover
• Reduces absenteeism
• Enhances company reputation and profile

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Types of training

1.

Induction

2.

On-the-job

3.

Off-the-job

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Induction

Induction training is given to new employees with the purpose of helping new employees settle down quickly into the job by becoming familiar with the people, the surroundings, the job and the business.

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Induction

• It is important to give a new employee a good impression on the first day of
• work. However, the induction program should not end there.
• It is also important to have a systematic induction program, spread out over

several days, to cover all the ground in the shortest effective time

• Usually induction involves the new employee meeting and listening to different

people talk about the business. Other methods include written information, audio visuals aids and group discussion.

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Elements to cover in an effective induction program

• Introduction to the business/department and its personal/management structure
• Layout of the building (factory / office)
• Terms and conditions of the employment
• Relevant personnel policies, such as training, promotion and health and safety
• Business rules and procedure
• Arrangement for employee involvement and communication
• Welfare and employee benefits or facilities.

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Benefits and Limitations of Induction

Benefits of Induction

• Helps to build loyalty towards the business
• Help to labour turnover of new recruits
• Employees will feel more relaxed and

comfortable within the organization

• Allows quicker learning and increased

productivity Limitations of Induction

• Not may be focused on the job directly
• Must use the right staff to conduct the

training

• Expensive process
• Time consuming procedure

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On-the-job Training

Employees receive training while remaining in the workplace

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On-the-job Training Definition

• On-the-job training, also known as OJT, is a hands-on method of teaching

the skills, knowledge, and competencies needed for employees to perform a specific job within the workplace.

• Employees learn in the environment where they will need to practice the

knowledge and skills obtained during training.

• On-the-job

training uses the existing workplace tools, machines, documents, equipment, and knowledge to teach an employee how to effectively do his job.

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Benefits and Limitations of On-the-job training

Benefits of on-the-job training

• Most cost effective
• Employees are actually productive
• Opportunity to learn while performing the job
• Training alongside real colleagues

Limitations of on-the-job training

• Quality depends on ability of the trainer and time

available

• Bad habits might be passed on
• Learning environment may not be conductive
• Potential disruption to production

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Advantages and Disadvantages of On-the-job Training

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Training method Description Advantages Disadvantages Job Coaching A supervisor acts as a coach in training the individual.  The supervisor provides feedback to the trainee on his performance  Provide employees some suggestions for improvement.  Restrictions are amended on trainees to express their own ideas. Mentoring Managers appointed recently seeking the advice and guidance of highly experienced managers.  Opportunities to interact with experienced managers to improve performance.  Helps for future development.  Heavy reliance on the abilities of the mentor  Giving importance to present management techniques. Job Rotation Employees are positioned into different jobs where employees learn a range of jobs of various departments  Employee gets to know how his own and

• ther departments also function.

 Interdepartmental coordination can be improved team spirit  Less focus on employees own job specialisation.  Employees basic talents may remain under utilized Job Instruction An instruction or directions to perform a particular task or a function  Follow to provide feedback and help  assists to deliver step-by-step instruction  Helps to identify when the learner has actually understands the job  Time consuming  Independent individuals may not like this approach

Off-the-job Training

Employees are taken away from their place of work to be trained

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Off-the-job Training

The Off-the-Job Training is the training method where in the workers/employees learn their job roles away from the actual work floor.

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Benefits and Limitations of Off-the-job training

Benefits of off-the-job training

• Wide range of skills or qualifications can be obtained
• Can learn from outside specialists or experts
• Employees can be more confident when starting job

Limitations of off-the-job training

• More expensive- eg: transportation and accommodation
• Lost working time and potential output from employee
• Employees leaving after the training

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Advantages and Disadvantages of Off-the-job Training

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Methods Description Advantage Disadvantage Classroom Lectures Lecturing to a very large number of audiences.  It can be used for large groups.  Cost endured for a trainee is less.  Low popularity.  One-way communication.  No authentic feedback mechanism. Outbound training An outbound training program brings changes in both, your behaviour and thoughts.  Realize the fact that, choices have consequences  Feel a tangible difference in your thought process and behaviour  Realize the values of life  More expensive  Lost working time and potential

• utput from employee

 New employees may still need some induction training Role playing Acting out or performance a particular role of a particular context.  Improves interpersonal relationships  Build confidence and listening skills  Creative problem-solving  The role playing of highly emotionally charged situations tends to be less effective in large groups Simulation Simulation is a technique for practice and learning that can be applied to trainees.  Simulation can improve trainees’ to learn from error.  Can be set up at appropriate times and repeated as often as necessary.  Simulators can be very expensive and require constant updates and maintenance.  Not every situation can be included Management games Training courses and team building to provide a rapid experience of a particular learning.  Quick learning and enhances creativity  High knowledge retention  Builds teams cohesiveness  Develops critical thinking skills  Unless well-structured and thought-

• ut people will get bored

 Creates people to be more robotic than human

Process of Training 25

Step 1: Training need analysis

External approach

×

Training need is created due to changes in the external environment

×

Eg- changes in the technology and legal environment Internal approach

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Task analysis Assessing new employees training needs Breakdown the new job and identify the needs Performance analysis Assessing current employees training needs From the existing job, finding the weakness and then find the need for training Sources of performance analysis Individual diaries Attitude survey Self assessment questionnaire Observation Job related performance date – targets, errors Performance appraisal The Gap Concept Attitude gap – most difficult Skill gap - moderately difficult Knowledge gap – Easily adoptable

Step 2: Set the training objectives

Training objectives are the statements of what training is expected to achieve at the beginning Setting objectives process

1.

Describe the expected performance

2.

Explain the condition under which the task will be performance

3.

Set standards

4.

Use the SMART criteria

5.

Include an objective for evaluation

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Step 3: Designing the training program

Framework to design the training programe

• Program duration
• Program structure
• Instruction methods of trainers
• Trainers qualification
• Nature of trainees
• Support resources – materials and classrooms
• Training location and environment
• Criteria and methods for assessing participants learning
• Criterial and methods for evaluation of the program

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Step 4: Implementation of the training program

• Participant selection
• Group comfort
• Trainers enthusiasm and skills
• Effective communication
• Feedback mechanism
• The need to learn new training skills
• Preparation by trainers

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Step 5: Evaluation of the training program

Three levels of evaluation

• Immediate feedback – survey or interview directly after training
• Post training – trainee applying learnt task in workplace
• Post training appraisal – conducted by immediate supervisor of trainees

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Do not gather knowledge / not effective Test happens after one/two days from the training Very important/ effective/ direct evidence

Activity

× How does training and development benefits an employee and employer (P3) × Explain how training and development contributes to organisational productivity and performance (P4) × Critically evaluate the different types of training methods suitable for a Hotel Industry (M3, D2)

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Performance and Reward

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Performance and Reward

• Performance Appraisal
• Rewards Management and Compensation

Performance Appraisal

"Performance appraisal is systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development“ (Dale S. Beach)

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Performance appraisal may also be defined as a process that involves: (i) Setting work standard; (ii) Assessing the employees actual performance relative to these standards; and (iii) Providing feedback to employee with the aim of motivating that person to eliminate performance deficiencies or to continue to perform above par.

35 Types of Performance Appraisal

Types of Performance Appraisal 36

• 1. Peer appraisal

Peer appraisal is a type of feedback system in the performance appraisal process designed to monitor and improve the job performance. It is usually done by colleagues who are a part of the same team.

Types of Performance Appraisal 37

• 2. Subordinate Appraisal

The subordinate appraisal is an evaluation tool whereby employees assess the performance

• f their supervisor.

Particularly on aspects such as leadership, communication, motivation Employees may be scared to reveal the real information

Types of Performance Appraisal 38

• 3. Self Appraisal

Self appraisal is an employee's own judgment about the quality of their work, or the process

• f judging your own work

Types of Performance Appraisal 39

• 4. 360 Degree Feedback

A 360 degree appraisal is a type of employee performance review in which subordinates, co-workers, and managers all anonymously rate the employee.

Advantages of Performance Appraisals

• Documentation: A performance appraisals provides a document of employee performance over a

specific period of time. it’s a piece of paper that can be placed in an employee file.

• Structure: This process creates a structure where a manager can meet and discuss performance with

an employee. It forces the uncomfortable conversations that often need to happen.

• Feedback: Employees crave feedback and this process allows a manager the opportunity to provide

the employee with feedback about their performance and discuss how well the employee goals were

• accomplished. It also provides an opportunity to discuss employee development opportunities.
• Clarify Expectations: Employees need to understand what is expected of them and the PA process

allows for a manager to clarify expectations and discuss issues with their employee.

• Annual Planning: It provides a structure for thinking through and planning the upcoming year and

developing employee goals.

• Motivation: The process should motivate employees by rewarding them with a merit increase and as

part of a comprehensive compensation strategy.

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Disadvantages of Performance Appraisals

• Creates Negative Experience: If not done right, the performance appraisal can create a negative experience for

both the employee as well as the manager.

• Time Consuming: Performance appraisals are very time consuming and can be overwhelming to managers with

many employees. There are managers who are responsible for doing an annual PA on hundreds of employees.

• Natural Biases: Human assessment are subject to natural biases that result in rater errors. Managers need to

understand these biases to eliminate them from the process.

• Waste of Time: The entire process can be a waste of time if not done appropriately. Think about the time

investment when the end result is negative.

• Stressful Workplace: Performance appraisals can create stressful work environments for both employees and
• managers. Proper training can help to reduce the stress involved in the process

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• 1. How does performance appraisal benefits an employee and employer (P3)
• 2. Explain how performance appraisal contributes to organisational productivity and

performance (P4)

• 3. Critically evaluate the different types of performance appraisal methods suitable for a Hotel

Industry (M3, D2)

Activity

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Reward Management 43

Reward system exists in order to motivate employees to work towards achieving strategic goals which are set by entities. Reward management is not only concerned with pay and employee benefits. It is equally concerned with non-financial rewards such as recognition, training, development and increased job responsibility.

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Employee Compensation

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All forms of pay going to employees and arising from their employment Two main components

• Direct Financial Payments-Wages, salaries, incentives, commissions, and bonuses
• Indirect Financial Payments- Employer-paid insurance and vacation/leave

Payments to employees: based on increments of time or based on performance Time-based pay-forms foundation for most employers’ pay plans Hourly, Daily, Weekly, Monthly, Yearly Pay

• Formal Employment-Monthly Salary
• Informal Employment- Part Time, Day Job: Hourly, Daily Pay

Employee Compensation

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Second direct payment option is to pay for performance

• Piecework- compensation tied to production (or number of “pieces”)
• Sales commissions
• Incentives

Total Rewards

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Total Rewards

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Total Rewards

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Base Pay Basic compensation that an employee receives, usually as a wage or salary Often referred to as basic salary Wage refers to hourly payment calculated based on time worked; part time employees Salary is same payment, regardless to number of hours worked

Total Rewards

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Total Rewards

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Variable Pay

• Compensation linked directly to individual, team, or organizational performance
• Bonuses and incentive program payments
• Executives often receive longer-term rewards such as stock options

If sewing operator achieves target, receives target bonus If comes all day of month, gets attendance bonus Target quantity, days is threshold performance level If sales executive achieves monthly sales target then receives bonus on top

• f salary

Sales target is threshold performance level

Variable Pay

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Individual Incentives

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Piece-rate system

• Wages are determined by multiplying the number of units produced
• Eg. Garments sewn or service calls handled by the piece rate for one unit
• Rapid increase in output, but can be quality issues, need control system to check quality,

track units produced Bonuses

• One-time payment that does not become part of the employee’s base pay
• Bonus can recognize performance by an employee, a team, or the organization as a

whole

• Festival Bonus

“Spot” Bonuses

• Unique type of bonus awarded at any time
• Extra time worked, extra efforts, or an especially demanding project
• Given in cash; some firms provide gift cards, travel vouchers, or other noncash rewards

Total Rewards

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Group/Team Results

• Pay plans for groups/teams
• Reward all members equally on the basis of group output, cost savings, or quality improvement
• Fosters team member cooperation, collective desire to fulfill organizational goals and objectives

Gainsharing

• Incentive plan that engages many or all employees
• Common effort to achieve company’s productivity objectives
• Resulting cost savings (gains) shared among employees and company

Total Rewards

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Profit sharing

• Distributes portion of organizational profits to eligible employees
• Gives employees opportunity to increase their earnings by contributing to organization’s profits
• Contributions-improving product quality, reducing operating costs, improving work methods, building goodwill
• Makes employees think and feel more like partners in the enterprise
• Concerns themselves with the welfare of the organization as a whole
• Motivate total commitment from employees rather than contribute in specific areas

Stock option plan

• Gives employees right to purchase fixed number of shares
• At a specified exercise price for a limited period of time
• Organization hopes employees will increase their productivity
• Assume a partnership role in the organization
• Thus cause the stock price to rise
• Popular way to boost morale of disenfranchised employees caught in budget cuts and downsizing
• Increase longevity of employees

Total Rewards

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Total Rewards

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Benefit

• Indirect reward given to an employee or group of employees
• As part of membership in the organization
• Often regardless of performance
• Health insurance, vacation pay, or a retirement pension
• Some required by law

Benefits often include;

• Retirement plans
• Vacations with pay
• Health insurance
• Educational assistance
• Many more programs

Benefit

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Basic Salary: LKR 15,000 Overtime Payment: LKR 5,000 Attendance Bonus: LKR 3,000 Target Payment: LKR 3,000 Annual, Casual, Medical Lunch, Breakfast, Tea Medical Allowance Accommodation Transportation Uniforms, Clothing Scholarships

Total Rewards 59

Andrea- Sales Executive LKR 50,000 Per Month Base Pay LKR 10-50,000 Every Quarter As Target Bonus Variable Pay Health Insurance, EPF, ETF, Leave Benefit Training Program, Sales Person

• f The Quarter

Non Monetary Rewards

Compensation System Design Issues

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Legal Constraints On Pay Minimum Wage Overtime payment Payment for working on holidays, Poya Day Training and travel part of working hours, time off is practiced by some companies If employee has salary of LKR 30,000 Hourly Rate? (Office Employees Work 240 Hours) If employee works 20 hours overtime in a month, additional salary? If employee works on Poya Day, additional salary? If employee works on a mercantile holiday, additional salary?

Employee Compensation

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As per regulations-Shop Office Act, Wages Board Ordinance

• 14 Days Annual Leave
• 7 Days Casual Leave
• 7 Days Medical Leave

Companies must pay for the above even though employees are not at work

Employee Compensation

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Employee Provident Fund (EPF)

• Compulsory as per labor law of Sri Lanka
• Largest social security scheme in Sri Lanka
• Employee contributes-8% and the employer-12% of the total monthly salary
• Company deducts from salary, contributes their part, pays to department every month

Employee Compensation

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Employee Trust Fund (ETF) Social security program applicable to all state and private sector companies Company contributes 3% of employees total salary Employee can claim every 5 years, or after reaching 60

Employee Compensation

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Maternity Leave- Granted to a female worker for period of 12 weeks excluding public holidays

Employee Compensation

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Gratuity Payment Completed 5 years of service with an employer employing fifteen or more workmen Entitled to gratuity in the event of termination Whether by employer or workman, or on retirement or by the death of the workman Half a month's wages or salary for each completed year of service for monthly rated workmen

Employee Compensation

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• Health Insurance
• Life Insurance
• Medical Benefits/Coverage
• Workers Compensations- income and medical benefits to work-related accident

victims or their dependents regardless of fault

Thank you

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