I

Human Resource Management

Important Question & Answer
UNIT 3, Training and Career Planning
Training,
training refers to the process of providing employees with specific skills, knowledge, and competencies required to
perform their jobs effectively. Training is a strategic and systematic effort aimed at enhancing employees' performance,
improving their capabilities, and aligning their skills with the organization's goals.
According to Beach, “Training is the organised procedure by which people learn knowledge and skills for a definite
purpose”
Training Objectives/Importance,

1. Skill Development: Training programs are designed to impart specific skills necessary for employees to carry
out their job responsibilities. This could involve technical skills, soft skills, or a combination of both.
2. Knowledge Enhancement: Employees need to stay updated on industry trends, best practices, and any changes
relevant to their roles. Training ensures that employees have the knowledge required to meet job requirements
and contribute to the organization's success.
3. Performance Improvement: By addressing skill gaps and providing additional knowledge, training helps
improve overall job performance. This, in turn, can lead to increased productivity, efficiency, and quality of
work.
4. Adaptation to Change: Training is crucial when organizations undergo changes such as implementing new
technologies, procedures, or organizational structures. It helps employees adapt to these changes and minimizes
resistance.
5. Career Development: Training opportunities contribute to employees' professional growth and development. It
helps them acquire new skills and knowledge that can open up possibilities for career advancement within the
organization.
6. Employee Engagement and Motivation: Offering training opportunities signals to employees that the
organization values their development. This can lead to increased job satisfaction, engagement, and motivation.
7. Succession Planning: Training plays a role in identifying and developing potential leaders within the
organization. This is crucial for succession planning, ensuring a pipeline of qualified individuals for key roles.
8. Compliance and Risk Management: In industries with specific regulations and compliance requirements,
training ensures that employees understand and adhere to relevant laws, policies, and procedures, reducing the
risk of legal issues.

Training Needs,

• To Increase Productivity
• To Improve Quality
• To Help a Company Fulfil its Future Personnel Needs
• To Improve Organisational Climate
• To Improve Health and Safety
• Obsolescence Prevention
• Personal Growth
Role of Training

• Increase in Efficiency
• Increase in Morale of Employees
• Better Human Relations
• Reduced Supervision
• Increased Organisational Viability and Resilience
• Introduction of New Strategies and Working Methods in the
• Organisation
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• Advancement in Technology
• Organisational Policy
Training methods/ Techniques,

1. On-the-Job Training (OJT):

o Apprenticeships: Involves pairing a less experienced employee with a more experienced one to learn
skills on the job.
o Coaching/Mentoring: Experienced employees guide and support the development of less experienced
colleagues.
2. Off-the-Job Training:
o Workshops and Seminars: Conducted by external experts or internal trainers to provide in-depth
knowledge on specific topics.
o Conferences: Employees attend industry-related conferences to gain exposure to the latest trends and
best practices.
o Simulation Exercises: Mimic real work situations to allow employees to practice and enhance their
skills in a controlled environment.
3. E-Learning:
o Online Courses: Utilizing internet-based platforms for self-paced learning, providing flexibility for
employees to learn at their own convenience.
o Webinars and Virtual Training: Live online sessions that allow participants to interact with the trainer
and peers remotely.
4. Job Rotation:
o Employees are rotated through different roles within the organization to broaden their skills and
understanding of various functions.
5. Case Studies and Role Playing:
o Involves analysing real or hypothetical situations to develop problem-solving and decision-making
skills.
o Role-playing helps employees practice and apply new skills in a simulated environment.
6. Team Building Activities:
o Activities designed to enhance collaboration, communication, and teamwork among employees.
7. Cross-Training:
o Employees are trained in tasks or responsibilities outside their usual roles to develop a broader skill
set.
8. Cooperative Training Programs:
o Collaborative efforts with educational institutions or industry partners to provide specialized training
relevant to the organization.
9. Feedback and Performance Appraisals:
o Regular feedback and performance evaluations help identify areas for improvement, and training can
be tailored based on these assessments.

Process of Training,

1. Needs Assessment:
o Identify the specific skills, knowledge, or competencies that employees need to acquire. This may
involve analyzing performance gaps, conducting surveys, and considering changes in job roles or
technology.
2. Define Objectives:
o Clearly outline the goals and objectives of the training program. What do you want participants to
learn or achieve? Objectives should be specific, measurable, achievable, relevant, and time-bound
(SMART).
3. Design Training Program:
o Develop a detailed training plan based on the identified needs and objectives. Determine the training
methods, content, materials, and resources required. Consider the most effective ways to deliver the
training, such as workshops, e-learning, on-the-job training, etc.
4. Content Development:
o Create or gather the training materials, presentations, manuals, and other resources needed to deliver
the content. Ensure that the content is relevant, engaging, and aligned with the training objectives.
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5. Select Training Methods:

o Choose the most appropriate training methods based on the nature of the content, the audience, and
the desired outcomes. Common methods include lectures, discussions, simulations, role-playing, e-
learning, and on-the-job training.
6. Implementation:
o Roll out the training program according to the plan. This involves scheduling training sessions,
assigning trainers or facilitators, and ensuring that participants have access to necessary resources.
7. Delivery of Training:
o Conduct the training sessions using effective instructional techniques. Trainers should engage
participants, encourage interaction, and ensure that the content is presented clearly and
comprehensively.
8. Feedback and Assessment:
o Gather feedback during and after the training to assess its effectiveness. This may include participant
evaluations, quizzes, or practical assessments. Use feedback to identify areas for improvement and to
measure the achievement of learning objectives.
9. Adjustments and Revisions:
o Based on feedback and assessments, make any necessary adjustments to the training program. This
might involve updating content, modifying delivery methods, or addressing specific issues identified
during the training.
10. Monitoring and Follow-up:
o Track the application of learned skills on the job. Monitor participants' progress and provide ongoing
support if needed. Follow-up sessions or additional resources may be necessary to reinforce learning.
11. Evaluation:
o Conduct a comprehensive evaluation of the training program's overall effectiveness. Assess the impact
on job performance, productivity, and organizational goals. Use this information to refine future
training initiatives.
12. Documentation and Reporting:
o Maintain records of the training process, including attendance, assessments, and feedback. Provide
reports to management or stakeholders, highlighting the success of the training program and any areas
for improvement.
13. Continuous Improvement:
o Establish a feedback loop to continuously improve the training process. Analyze the results of
evaluations and make adjustments to future training programs to better meet organizational and
employee needs.

Development,

Development is a long-term educational process utilising a systematic and organised procedure by which managerial
personnel learn conceptual and theoretical knowledge for general purpose”

In Others Words, employee development refers to the process of enhancing the skills, knowledge, and abilities of
individuals within an organization.

According to Johnson and Sorcher, “Management development focuses on developing in a systematic manner, the
knowledge base, attitudes, basic skills, interpersonal skills and technical skills of the managerial cadre.”

Objective Of Development And Need,

1. Enhance Individual Performance:

o Improve the skills, knowledge, and abilities of employees to enhance their overall performance in their
current roles.
2. Promote a Learning Culture:
o Foster a workplace culture that values continuous learning, adaptability, and innovation.
3. Improve Leadership and Management Skills:
o Develop the leadership and management capabilities of employees, including those in supervisory or
managerial roles.
4. Enhance Team Collaboration:
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o Improve communication, collaboration, and teamwork skills to enhance the overall effectiveness of
teams within the organization.
5. Adapt to Technological Changes:
o Equip employees with the skills needed to adapt to technological advancements and changes in work
processes.
6. Encourage Innovation and Creativity:
o Cultivate an environment where employees feel empowered to bring forth new ideas, innovations, and
solutions to challenges.
7. Improve Organizational Performance:
o Enhance the overall performance and effectiveness of the organization by having a skilled and
motivated workforce.
8. Promote Ethical Behaviour:
o Develop programs that reinforce ethical behaviour and a strong ethical culture within the organization.
9. Support Employee Well-being:
o Incorporate development initiatives that address the overall well-being of employees, including mental
health and work-life balance.
10. Improve Employee Morale:
o Boost employee morale by demonstrating the organization's commitment to investing in the growth and
well-being of its workforce.

Training and Development,

Methods And Techniques Of Development,

1. Training Programs:
o In-House Workshops and Seminars: Conducting workshops and seminars on specific topics
relevant to job roles and organizational goals.
o External Training Courses: Sending employees to external training courses, conferences, or
workshops to learn from industry experts.
o
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2. E-Learning:
o Online Courses: Providing access to web-based training modules and courses that employees
can complete at their own pace.
o Virtual Learning Platforms: Using virtual classrooms, webinars, and online collaboration
tools for interactive learning experiences.
3. On-the-Job Training (OJT):
o Job Rotation: Rotating employees through different roles within the organization to broaden
their skills and experiences.
o Coaching and Mentoring: Pairing less experienced employees with more experienced
colleagues for guidance and support.
4. Developmental Assignments:
o Assigning employees to special projects, task forces, or cross-functional teams to expose them
to new challenges and develop specific skills.
5. Feedback and Performance Appraisals:
o Conducting regular feedback sessions and performance appraisals to provide employees with
constructive feedback on their strengths and areas for improvement.
6. Coaching and Counselling:
o Providing one-on-one coaching or counselling sessions to help employees overcome
challenges, improve performance, and set and achieve personal and professional goals.
7. Leadership Development Programs:
o Implementing programs specifically focused on developing leadership skills, including
communication, decision-making, and strategic thinking.
8. Networking Opportunities:
o Encouraging employees to participate in networking events, industry conferences, and
professional associations to expand their professional connections and stay informed about
industry trends.
9. Team Building Activities:
o Engaging in team-building exercises and activities to improve collaboration, communication,
and teamwork skills.

Career Planning,

Career planning is a systematic process of setting individual career goals and objectives and developing a
strategy to achieve them. It involves assessing one's skills, interests, values, and aspirations, and then aligning
them with career opportunities and growth within an organization or in the broader job market.

Career planning is the process by which one selects career goals and the path to these goals.

▪ The major focus of career planning is on assisting the employees achieve a better match between personal
goals and the opportunities that are realistically available in the organization

Objectives of Career Planning,

1. Self-Assessment:
o Reflect on individual capabilities and preferences to make informed career decisions.
2. Goal Setting:
o Establish clear and achievable objectives to guide career development efforts.
3. Alignment with Organizational Goals:
o Ensure that individual career aspirations contribute to the success and growth of the
organization.
4. Skills Development:
o Focus on acquiring and enhancing skills that are relevant to current and future career
opportunities.
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5. Education and Training:

o Pursue relevant educational programs or training courses to stay current in the field and
enhance qualifications.
6. Networking:
o Connect with colleagues, mentors, and industry professionals to gain insights, support, and
potential opportunities.
7. Job Exploration:
o Consider different career paths to find roles that align with skills, interests, and career goals.
8. Career Pathing:
o Develop a clear roadmap for advancing from current roles to more advanced positions over
time.
9. Adaptability:
o Be prepared to adjust career plans based on changing circumstances, industry trends, or
personal goals.
10. Work-Life Balance:
o Evaluate how career choices impact personal life and well-being, ensuring a balanced and
fulfilling lifestyle.
11. Continuous Learning:
o Embrace a mindset of lifelong learning to stay relevant and competitive in a dynamic work
environment.
12. Career Satisfaction:
o Strive for a career that brings personal fulfilment, satisfaction, and a sense of purpose.
13. Financial Planning:
o Align career choices with financial objectives, taking into account salary expectations, benefits,
and long-term financial security.
14. Leadership Development:
o Seek roles and experiences that contribute to the development of leadership skills and qualities.
15. Succession Planning:
o Prepare for future career advancements and contribute to organizational succession planning.

Career development,

Career development refers to the ongoing process of managing one's career through various stages and life
changes. It involves systematically planning, setting goals, acquiring skills, and adapting to new experiences
to achieve career aspirations.

Career development is a dynamic and lifelong journey that encompasses self-assessment, skill enhancement,
goal setting, and continuous learning.

Here are key elements of career development:

1. Self-Assessment
2. Goal Setting
3. Education and Training
4. Skill Development
5. Networking
6. Job Exploration
7. Career Planning
8. Adaptability
9. Feedback and Reflection
10. Leadership Development
11. Work-Life Balance
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Unit 4,

Compensation Management & Performance Appraisal

Meaning of Compensation,

total package of rewards provided to employees in return for their work and services

Compensation is what employees receive in exchange for their contribution to the organization.

Generally, employees offer their services for three types of rewards.

• Pay refers to the base wages and salaries employees normally receive.
• Compensation forms such as bonuses, commissions and profit- sharing plans are incentives designed to encourage
employees to produce results beyond normal expectation.
• Benefits such as insurance, medical, recreational, retirement, etc., represent a more indirect type of

Nature of Compensation,

a) Base pay: It is the basic compensation an employee gets, usually as a wage or salary.

b) Variable pay: It is the compensation that is linked directly to performance accomplishments (bonuses, incentives, stock\options).

c) Benefits: These are indirect rewards given to an employee or group of employees as a part of organizational membership (health
insurance, vacation pay, retirement pension etc.)

Objectives of Compensation,

1. Attract and Retain Talent:

o Compensation should be competitive in the job market to attract candidates with the desired qualifications and
expertise. It also plays a crucial role in retaining valuable employees.
2. Motivate and Reward Performance:
o Compensation structures, such as performance bonuses and incentives, should encourage employees to excel in
their roles and contribute to the organization's success.
3. Internal and External Equity:
o Employees performing similar roles should receive similar compensation within the organization. Additionally,
compensation should be competitive with industry standards to attract and retain talent.
4. Align with Organizational Objectives:
o Compensation strategies should support organizational success by incentivizing behaviours and outcomes that
contribute to the achievement of business objectives.
5. Fair and Equitable Treatment:
o Compensation should be distributed based on objective criteria, such as job responsibilities, skills, and
performance, to promote a sense of fairness and equal treatment among employees.
6. Cost Control:
o Organizations need to manage their compensation budgets effectively while ensuring that employees are fairly
compensated for their contributions.
7. Compliance with Legal and Regulatory Requirements:
o Compensation practices should adhere to local, state, and federal laws to prevent legal issues and maintain ethical
standards.
8. Employee Satisfaction and Engagement:
o Employees who feel fairly compensated are more likely to be satisfied and engaged in their work, leading to
increased productivity and retention.
9. Risk Management:
o Effective compensation strategies can reduce the risk of losing key talent to competitors and address potential
talent shortages by creating a competitive employment proposition.
10. Flexibility and Adaptability:
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o Compensation plans should be adaptable to accommodate changes in organizational structure, market conditions,
and business strategies.
11. Enhance Employee Well-being:
o Compensation includes not only financial rewards but also benefits such as healthcare, retirement plans, and
other perks that support employees' physical, emotional, and financial well-being.
12. Communicate Organizational Values:
o Compensation practices should reflect the organization's values, culture, and commitment to treating employees
with respect and fairness.

Short notes on time wage system and piece rate system,

❖ Time Wage System:

A time wage system is a method of compensating employees based on the amount of time they spend working. In this system,
employees receive a fixed rate of pay for each hour or day worked, regardless of the quantity or quality of their output. Here are
some key points about the time wage system:

1. Fixed Pay Rates: Employees are paid a predetermined rate for each unit of time worked, such as an hourly, daily, or
monthly rate.
2. Stability and Predictability: The time wage system provides stability and predictability for both employees and
employers, as the income is fixed and known in advance.
3. Suitability for Certain Jobs: This system is often suitable for jobs where output is difficult to measure, and the
emphasis is on the amount of time spent on tasks.
4. Limited Incentives for Productivity: Since compensation is not directly tied to individual productivity, the time
wage system may provide limited incentives for employees to increase their efficiency or output.
5. Common in Administrative and Support Roles: It is commonly used in administrative roles, clerical positions,
and other jobs where output is not easily quantifiable.

❖ Piece Rate System:

A piece rate system is a method of compensation in which employees are paid based on the quantity of units they produce or tasks
they complete. The more units produced, the higher the earnings. Here are some key points about the piece rate system:

1. Payment Per Unit: Employees receive a specific rate of pay for each unit of output or task completed. This could be
based on the number of items produced, services rendered, or other measurable criteria.
2. Direct Link to Productivity: The piece rate system directly ties compensation to individual productivity, providing
a clear incentive for employees to maximize their output.
3. Suitability for Productivity-Driven Jobs: This system is often used in manufacturing, assembly, and other
production-oriented roles where output can be easily measured.
4. Potential for Increased Earnings: Employees have the potential to earn more if they are able to produce more units
within a given time frame, promoting efficiency and motivation.
5. Challenges in Quality Control: While the piece rate system encourages quantity, it may sometimes result in a
compromise in quality as employees focus on speed to increase output.
6. Requires Clear Performance Metrics: To implement a piece rate system effectively, there must be clear and objective
metrics for measuring output, and employees should have a good understanding of the expectations.

Fringe Benefits,

The term 'fringe benefits' refers to the extra benefits provided to employees in addition to the normal compensation paid in the
form of wage or salary.

Need Of Fringe Benefits,

a) Employee demands
b) Trade union demands
c) Employer's preference
d) As a social security
e) To improve human relations
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Performance Appraisal,

▪ Performance appraisal is a method of evaluating the behaviour of employees in the work spot, normally including both the
quantitative and qualitative aspects of job performance.

▪ It is a systematic and objective way of evaluating both work-related behaviour and potential of employees.

▪ It is a process that involves determining and communicating to an employee how he or she is performing the job and ideally,
establishing a plan of improvement.

What is Performance Appraisal?

➢ Identification
➢ Measurement
➢ Management

Process Of Performance Appraisal,

1. Establishing Performance Standards:

o Establish performance criteria, key performance indicators (KPIs), and job-specific
expectations. These standards should be communicated to employees at the beginning of the
performance cycle.
2. Setting Performance Goals:
o Work with employees to establish SMART goals (Specific, Measurable, Achievable, Relevant,
Time-bound) that contribute to individual and organizational success.
3. Monitoring Performance:
o Regularly observe, collect data, and document employee performance throughout the
performance cycle. Supervisors may use performance logs, metrics, and other tools to track
progress.
4. Providing Feedback:
o Schedule regular feedback sessions to discuss strengths, areas for improvement, and
progress toward goals. Feedback should be specific, timely, and focused on performance
rather than personality.
5. Self-Assessment:
o Ask employees to conduct self-assessments, where they evaluate their achievements,
challenges, and areas for growth. This can provide valuable insights for the appraisal
discussion.
6. Employee Input:
o Allow employees to share their views on their performance, challenges faced, and areas
where they believe they have excelled. This contributes to a more comprehensive evaluation.
7. Formal Appraisal Meeting:
o Schedule a dedicated meeting between the employee and supervisor to discuss the evaluation.
Review performance against established standards, discuss achievements, address areas for
improvement, and set goals for the upcoming period.
8. Documentation:
o Maintain accurate and thorough records of the appraisal discussion, including goals,
feedback, and any development plans. Documentation is crucial for performance history,
future reference, and HR purposes.
9. Performance Ratings:
o Some organizations use a numerical or categorical rating system to quantify performance.
Ratings can help in making decisions related to promotions, compensation, and professional
development.
10. Development Plans:
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o Collaboratively discuss ways to address performance gaps and develop an action plan. This
may involve additional training, mentorship, or other developmental opportunities.
11. Recognition and Rewards:
o Recognize and reward employees who have demonstrated outstanding performance. This can
be done through formal recognition programs, bonuses, promotions, or other incentives.
12. Follow-Up and Monitoring:
o Regularly monitor employee progress toward goals and address any challenges. Conduct
follow-up discussions to ensure ongoing feedback and support.
13. Continuous Feedback:
o Encourage an environment of continuous feedback, where supervisors provide ongoing
guidance, praise achievements, and address issues as they arise, rather than waiting for the
formal appraisal cycle.