BBS College of Engineering & Technology

Dept. of Business Administration

Semester - 2
Subject - Human Resource Management
Paper Code - BMB202
Unit - 3

Training
Training in Human Resource Management (HRM) refers to a systematic process aimed at
enhancing the skills, knowledge, and competencies of employees to improve their performance
and productivity. It involves a range of activities and programs designed to help employees
develop both their current job-related skills and their overall professional capabilities.

According to Edwin B. Flippo, “Training is the organized procedure by which a person gains
knowledge and skill for doing a particular job.”

Objectives of Training in HRM

1. Skill Enhancement: Improving the specific skills needed for an employee's current job.
2. Knowledge Update: Keeping employees informed about the latest developments,
technologies, and methodologies in their field.
3. Performance Improvement: Increasing the overall efficiency and effectiveness of
employees.
4. Career Development: Assisting employees in their professional growth and preparing
them for higher responsibilities.
5. Adaptability: Enabling employees to adapt to changes in the market, technology,
organizational structure, and job functions.

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Importance of Training
Training in Human Resource Management (HRM) is crucial for both the development of
employees and the overall success of an organization. Here are several key reasons highlighting
its importance:

1. Enhancing Employee Performance

Skill Development: Training helps employees acquire new skills and improve existing ones,
making them more proficient in their jobs.

Increased Productivity: Well-trained employees can perform their tasks more efficiently and
effectively, leading to higher productivity.

2. Boosting Employee Morale and Job Satisfaction

Confidence Building: Training increases employees' confidence in their abilities, which can
enhance job satisfaction.

Motivation: Investing in training demonstrates that the organization values its employees,
which can motivate them to perform better and remain loyal to the company.

3. Facilitating Career Development

Growth Opportunities: Training provides employees with the skills needed for career
advancement, helping them to take on new roles and responsibilities.

Retention: Employees are more likely to stay with a company that offers opportunities for
personal and professional growth.

4. Improving Adaptability and Flexibility

Change Management: Training helps employees adapt to changes in technology, processes,

and organizational structures, making the organization more flexible and responsive to market
demands.

Innovation: By learning new techniques and ideas, employees can contribute to innovative
solutions and improvements.

5. Ensuring Compliance and Reducing Risks

Regulatory Compliance: Training on legal and regulatory requirements helps ensure that
employees comply with laws and standards, reducing the risk of legal issues.

Health and Safety: Training on health and safety protocols ensures a safer workplace, reducing
accidents and associated costs.

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6. Enhancing Organizational Efficiency

Standardization: Training ensures that all employees have a uniform understanding of

procedures and practices, leading to consistent and high-quality outcomes.

Process Improvement: Continuous training can lead to improvements in processes, reducing

waste and increasing efficiency.

7. Supporting Organizational Goals

Alignment with Strategy: Training programs aligned with the organization's strategic goals
ensure that employees have the skills needed to achieve those goals.

Performance Metrics: Effective training can be linked to performance metrics, helping the
organization track and improve its overall performance.

8. Developing Leadership and Succession Planning

Leadership Development: Training programs can identify and develop future leaders within
the organization, ensuring a pipeline of qualified candidates for key positions.

Succession Planning: Training supports succession planning by preparing employees to step

into critical roles when needed, ensuring business continuity.

9. Encouraging a Learning Culture

Continuous Improvement: A strong training program fosters a culture of continuous learning

and improvement, encouraging employees to seek out new knowledge and skills.

Employee Engagement: A culture that values learning and development can lead to higher
employee engagement and commitment.

10. Addressing Specific Needs and Gaps

Customized Solutions: Training can be tailored to address specific skill gaps or areas of
improvement within the organization.

Problem-Solving: Through training, employees can learn new problem-solving techniques and
approaches, enhancing their ability to tackle challenges effectively.

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Challenges in Training
1. Cost: Training programs can be expensive in terms of time and money.
2. Resistance to Change: Employees may resist new methods or technologies introduced
through training.
3. Measuring Effectiveness: It can be difficult to measure the direct impact of training
on performance.
4. Alignment with Organizational Goals: Ensuring that training programs align with the
strategic objectives of the organization.

Types of Training

Training methods can be broadly classified into two categories:

A. On-the-job Training

This 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 by doing the actual
work under the supervision of a trainer or experienced employee.

Key Characteristics:

 Conducted at the workplace

 Real-time application of skills
 Immediate feedback and correction

On-the-job training methods are as follows-

a) Job Rotation

 Employees move between different jobs or departments to gain a variety of experiences.

 Enhances skill flexibility and organizational understanding.
 Example: A management trainee rotates through HR, marketing, and finance to gain
cross-functional knowledge.

b) Coaching

 A supervisor or senior employee provides personalized guidance and feedback.

 Focuses on improving specific skills or performance.
 Example: A senior salesperson helps a junior develop better negotiation skills.

c) Mentoring

 A long-term relationship where a senior mentor guides a junior employee’s career and
development.
 Supports personal and professional growth.

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  Example: A senior IT professional mentors a fresher for technical growth and career
advice.

d) Job Instruction Training (JIT)

 A step-by-step approach where the trainer demonstrates the task, and the employee
practices it under supervision.
 Useful for technical or operational jobs.
 Example: A factory worker learns machine operation under expert supervision.

e) Apprenticeship Training

 Long-term training under the supervision of a skilled professional.

 Common in trades like plumbing, welding, and carpentry.
 Example: An apprentice carpenter learns furniture-making from a master craftsman.

B. Off-the-job Training

Training conducted away from the actual work environment. It involves learning in a more
formal setting, like a classroom or training center.

Key Characteristics:

 No distraction from job responsibilities

 Opportunity for group interaction and discussions
 Exposure to new ideas and broader perspectives

Off-the-job training methods are as follows-

a) Lecture/Classroom Training

 Traditional method of instruction for large groups.

 Effective for delivering general knowledge, policies, or procedures.
 Example: Employees attend a session on company ethics and compliance.

b) Case Study Method

 Real or hypothetical business situations are analyzed to develop problem-solving and

decision-making skills.
 Encourages critical thinking and group discussion.
 Example: MBA students solve a case on marketing failure to learn strategy.

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c) Role Playing

 Employees act out real-life job situations to practice communication, leadership,

negotiation, etc.
 Enhances interpersonal and behavioral skills.
 Example: Practicing how to handle customer complaints.

d) Simulation Exercises

 Replicates real-world scenarios in a controlled environment.

 Reduces risk while building skills like crisis handling or decision-making.
 Examples: Flight simulators, business games.
 Example: Airline pilots train using flight simulators.

e) E-learning/Online Training

 Uses digital platforms to deliver content.

 Can be self-paced or instructor-led.
 Benefits include flexibility, cost-efficiency, and accessibility.
 Example: Employees complete online cybersecurity training.

f) Conferences and Seminars

 Provide knowledge on current industry trends, innovations, and best practices.

 Offer networking opportunities with experts and peers.
 Example: HR personnel attend a seminar on AI in recruitment.

g) Workshops

 Interactive training with hands-on activities.

 Focuses on skill-building through group participation.
 Example: Workshop on Excel data analysis for finance staff.

Additionally, Modern/Innovative Training Methods can be utilized too. Such as

following-

a) Blended/Hybrid Learning

 Combines online and classroom methods.

 Offers flexibility with the benefits of face-to-face learning.
 Example: Leadership training that includes classroom sessions and online assignments.

b) Mobile Learning (M-learning)

 Accessing training materials through smartphones and tablets.

 Ideal for remote workers and micro-learning.
 Example: A salesperson watches product training videos on their phone.

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c) Gamification

 Uses game elements in training (points, rewards, challenges).

 Increases engagement and retention.
 Example: Employees earn badges by completing safety training modules.

Selection of Training Method

The selection of an appropriate training method is crucial for effective learning and skill
development. Choosing the right method ensures training is relevant, efficient, and impactful.
It depends on several factors:

1. Nature of the Job:

The type of job determines the training approach. For example, technical jobs may
require hands-on or practical training, while managerial roles may benefit more from
case studies or role-plays.
2. Learning Objectives:
The training method should align with what the training aims to achieve. For instance,
if the objective is to improve communication skills, interactive sessions may be more
suitable than lectures.
3. Number of Employees:
The size of the training group affects the method. Large groups may require seminars
or webinars, while small groups can benefit from personalized coaching or
workshops.
4. Budget and Time Availability:
Cost and time constraints influence the choice. E-learning or on-the-job training can
be cost-effective and time-saving, whereas off-site training programs may be more
expensive and time-consuming.
5. Employee Preferences:
Considering how employees prefer to learn (e.g., visual, auditory, kinesthetic) can
increase engagement and effectiveness. Adapting methods to suit these preferences
leads to better outcomes.
6. Skill Levels of Participants:
The existing skills and knowledge of participants must be considered. Beginners may
need basic instruction and guided practice, while experienced employees may benefit
from advanced workshops or problem-solving sessions.

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Career Planning

A career refers to the sequence of jobs or occupations that a person undertakes throughout
their working life or professional journey. It includes both the work one does and the path
followed for personal and professional development.

According to Schermerhorn, Hunt, and Osborn, “Career planning is a process of

systematically matching career goals and individual capabilities with opportunities for
their fulfilment.”

In simple terms, career planning is a deliberate process in which an individual identifies their
career goals, assesses their skills, and explores opportunities to achieve those goals through
structured development.

Features of Career Planning

Career planning is not just about choosing a job—it is about designing a future career path that
aligns with individual goals and organizational needs.

Key Features:

1. Goal-Oriented Process:
o Career planning involves setting long-term career goals and short-term
developmental objectives.
2. Continuous and Dynamic:
o It is an ongoing process that adapts as an individual’s interests, abilities, and
circumstances change.
3. Mutual Responsibility:
o Both the employee and the organization have roles to play—employees plan
their growth, while organizations provide opportunities.
4. Strategic Fit:
o It matches individual aspirations with organizational goals to ensure mutual
growth.
5. Self-Assessment Focused:
o Encourages employees to analyze their strengths, weaknesses, interests, and
values.
6. Development-Oriented:
o Focuses on skill enhancement and professional development through training,
mentoring, etc.
7. Employee Retention Tool:
o Helps retain talent by offering growth opportunities and career clarity.

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Objectives of Career Planning

Career planning benefits both individuals and organizations. The key objectives include:

1. To Identify Career Goals: Helps individuals define short-term and long-term

professional goals.
2. To Align Employee Aspirations with Organizational Objectives: Ensures that
employee growth supports company strategy.
3. To Facilitate Career Development: Supports learning and development to prepare
employees for future roles.
4. To Improve Job Satisfaction: Enhances motivation and morale through meaningful
career progress.
5. To Minimize Employee Turnover: Reduces attrition by offering clear growth paths
and internal opportunities.
6. To Ensure Effective Succession Planning: Prepares employees for future leadership
or critical roles.
7. To Optimize Talent Utilization: Aligns individual strengths and interests with suitable
job roles.
8. To Enhance Organizational Effectiveness: A structured career planning process
contributes to overall business success.

Benefits of Career Planning

A. For Employees:

1. Clarity of Career Path:

o Helps employees understand where they are and where they want to go
professionally.
2. Skill Development:
o Encourages continuous learning and upskilling.
3. Increased Motivation and Engagement:
o Employees are more productive when they see career growth potential.
4. Better Decision Making:
o Individuals make informed choices regarding job roles and career moves.
5. Job Security and Satisfaction:
o Career clarity leads to confidence and reduced job anxiety, maintaining job
security.

B. For Employers/Organizations:

1. Better Talent Management:

o Helps HR place the right person in the right job.
2. Improved Retention Rates:
o Employees stay longer when they see a future within the organization.

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 3. Succession Planning:
o Ensures that future leadership pipelines are prepared.
4. Organizational Stability and Growth:
o Structured career paths contribute to better employee performances and
business continuity.
5. Enhanced Employer Branding:
o Organizations known for career development attract top talent.

Steps in Career Planning Process

1. Self-Assessment:
This is the first step where individuals evaluate their interests, strengths, values,
personality traits, and career aspirations. It helps in understanding what kind of career
would be most fulfilling and suitable.
2. Exploring Career Opportunities:
After self-assessment, one should research and explore different career options both
within the current organization and externally. This includes understanding job roles,
industry trends, and growth prospects.
3. Goal Setting:
Based on the insights from the first two steps, individuals should set clear short-term
(e.g., getting a certification) and long-term (e.g., becoming a team leader) career
goals to provide direction and motivation.
4. Action Plan Development:
This involves creating a detailed plan or roadmap that outlines the steps needed to
achieve career goals, such as required education, skill development, training, and
gaining relevant work experience.
5. Implementation:
In this stage, individuals start executing their career plan by actively working on the
steps laid out — attending courses, applying for new roles, gaining experience, and
seeking mentoring.
6. Feedback and Review:
Regularly reviewing progress is essential. Individuals should seek feedback, assess if
the plan is working, and make adjustments as needed due to personal growth or
changing career trends.

Promotion
Promotion in career planning within Human Resource Management (HRM) refers to the
advancement of an employee to a higher position within the organization. This progression
typically involves increased responsibilities, a higher status, and usually, a higher salary.
Promotions are an essential component of career development and are used as a tool to motivate
and retain talented employees.

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The main goals of promotion are to reward employees for their performance, provide career
growth opportunities, fill vacancies with qualified internal candidates, and enhance
organizational effectiveness.

Demotion
Demotion in career planning within Human Resource Management (HRM) refers to the
downward movement of an employee to a lower position, typically involving a reduction in
responsibilities, status, and sometimes, salary. Demotions are generally implemented as a result
of poor performance, organizational restructuring, disciplinary actions, or the employee's
request.

The main purposes of demotion can include addressing performance issues, organizational
restructuring, accommodating employee preferences, or disciplinary actions. By handling
demotions with care and transparency, organizations can maintain morale and align roles with
employee capabilities.

Transfer
In Human Resource Management (HRM), a transfer refers to the lateral movement of an
employee from one job, department, or location to another within the same organization.
Unlike promotions, transfers typically do not involve a change in rank or significant increase
in responsibilities, but they can play a crucial role in career development and organizational
strategy.

Transfers are used for various reasons, including filling staffing needs, employee development,
addressing personal employee preferences, and organizational restructuring. By effectively
managing transfers, organizations can optimize talent utilization, support employee career
growth, and maintain a dynamic and adaptable workforce.

Separation
Separation is a situation when the service agreement of an employee with his/her organization
comes to an end and the employee leaves the organization. In other words, separation is a
decision that the individual and organization part from each other.

Separation is a critical aspect of HRM as it involves managing the end of the employment
relationship and ensuring that the transition is smooth for both the employee and the
organization.

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Separation can happen through various means, including retirement, resignation, layoffs,
retrenchment (the act of removing a worker from a job as a way of saving the cost of
employing them), or dismissal.

Comparison: Promotion, Demotion, Transfer, and Separation

Basis of Comparison Promotion Demotion Transfer Separation

Termination of
Upward Lateral
Downward the
movement to a movement to a
movement to a employment
higher position different job or
Meaning lower position relationship
with greater location
with reduced between
responsibility without a
responsibilities. employee and
and pay. change in rank.
organization.
Vertical Vertical Horizontal Complete
Nature of Change
(upward) (downward) (lateral) disassociation
Generally
Usually Salary stops
Impact on Salary May decrease remains the
increases after exit
same
Remains
Impact on
Increases Decreases largely Ends
Status/Authority
unchanged
End
Reward Address poor Adjust staffing, employment
performance, performance, develop due to various
Purpose encourage restructuring, or employees, or reasons
growth, fill disciplinary accommodate (resignation,
vacancies. needs. personal needs. retirement,
dismissal).
Can be
voluntary
Usually Usually Often voluntary
(resignation,
voluntary or involuntary, but or
Voluntary/Involuntary retirement) or
performance- sometimes organizational
involuntary
based voluntary need-based
(dismissal,
layoff).
Supports skill Ends current
Enhances Can hinder enhancement, career path in
Career Implication
career growth career progress broad the
experience organization
Neutral or May cause
Motivating, Demotivating,
positive stress or relief
Emotional Impact increases may lower
depending on depending on
morale morale
circumstances situation

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 Basis of Comparison Promotion Demotion Transfer Separation
Management, Management, Management
Either
often with based on and sometimes
Decision Taken By employee or
performance performance or employee
employer
reviews discipline request
HR Executive
Assistant Manager → Employee
in Delhi → HR
Examples Manager → Assistant resigns or is
Executive in
Manager Manager terminated
Lucknow

Performance Appraisal

Performance appraisal is a systematic and periodic process of evaluating the job performance
of an employee. It involves assessing an individual's performance in relation to pre-established
standards, identifying strengths and weaknesses, providing feedback, and setting goals for
future performance.

It is a crucial function of Human Resource Management that helps in improving employee

performance, making decisions about promotions, transfers, training needs, and compensation.

Objectives of Performance Appraisal:

 To assess the performance of employees against set goals.

 To identify the training and development needs of employees.
 To provide a basis for decisions regarding promotions, rewards, and compensation.
 To improve communication between employees and management.
 To support career development and succession planning.

Types of Performance Appraisal

Performance appraisal is a vital tool in human resource management. It not only helps in
evaluating and improving employee performance but also contributes to overall organizational
development. Selecting the right method of appraisal depends on the nature of the job,
organizational goals, and the level of objectivity required.

There are several methods used for appraising employee performance. These are broadly
classified into Traditional Methods and Modern Methods:

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A. Traditional Methods:

1. Ranking Method:
o Employees are ranked from best to worst on the basis of overall performance.
o It is simple but does not indicate how much better one employee is than another.
o Example: In a team of 5, the manager ranks employees as:
1st – Ramesh, 2nd – Suresh, 3rd – Meena, 4th – Anjali, 5th – Amit.
o Limitation: Does not explain how much better Ramesh is than Suresh.

2. Paired Comparison Method:

o Each employee is compared with every other employee in pairs on a particular
trait.
o The number of times an employee is rated better determines their final ranking.
o Example: Ramesh vs Suresh – Ramesh is better; Ramesh vs Meena – Meena is
better, and so on.
o Result: The employee who is better in the most comparisons ranks highest.

3. Grading Method:
o Employees are assigned grades such as A, B, C based on their performance.
o Easy to understand but subjective in nature.
o Example:

A – Excellent
B – Good
C – Average
D – Below Average
Employee Meena gets Grade A for punctuality, Grade B for communication.

4. Graphic Rating Scale:

o A scale is used to rate employees on various performance factors like
punctuality, quality of work, etc.
o Each factor is rated on a numerical or descriptive scale.
o Example:

Teamwork: 1 (Poor) to 5 (Excellent)

Amit scores: Teamwork – 4, Punctuality – 3, Initiative – 5

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 5. Checklist Method:
o A checklist of statements about employee behavior is prepared.
o The evaluator checks those that apply to the employee being rated.
o Example:

 “Completes tasks on time” – ✔

 “Needs supervision frequently” – ✘

6. Essay Method:
o The evaluator writes a detailed narrative describing the employee's strengths,
weaknesses, potential, and training needs.
o Subjective and time-consuming.
o Example:
“Ramesh is a proactive team player with strong leadership abilities but needs to
improve in time management.”

B. Modern Methods:

1. Management by Objectives (MBO):

o Goals are set jointly by the manager and employee.
o Performance is evaluated based on the achievement of these goals.
o Focuses a lot on results and outcomes.
o Example:
Goal – Increase sales by 20% in Q2.
Evaluation – Meena achieved a 22% increase, so rated "Exceeds
Expectations".

2. 360-Degree Feedback:
o Feedback is collected from supervisors, peers, subordinates, and sometimes
customers.
o Provides a comprehensive view of an employee’s performance.

Example:
Anjali receives:
Supervisor rating – 4.5
Peer rating – 4.0
Subordinate rating – 4.2
Customer feedback – Very positive

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 3. Behaviorally Anchored Rating Scales (BARS):
o Combines the benefits of narratives, critical incidents.
o Uses specific behavioral examples to anchor performance levels.

Example:
For "Customer Service":
5 – “Handles complaints with empathy and resolves within 24 hours”
3 – “Sometimes delays resolution or needs help”
Amit gets a 4 as he usually resolves issues but sometimes delays replies.

4. Human Resource Accounting Method:

o Employee performance is evaluated in terms of the contribution of human
resources in monetary terms.
o Helps determine the cost and contribution of employees.
o Example:
Ramesh’s training cost = ₹50,000, Annual contribution = ₹2,50,000.
Net Value Added = ₹2,00,000.

5. Psychological Appraisals:
o Focuses on evaluating the employee’s potential rather than past work.
o Assesses attributes like leadership, intelligence, emotional stability, etc.
o Example:
Based on psychological tests and interviews, Meena shows high potential for
leadership roles in future.

Job Evaluation

Job Evaluation is a systematic process used to determine the relative worth or value of a job
in an organization. It helps in establishing a fair and equitable pay structure by assessing the
content, responsibilities, and requirements of each job.

The main objective of job evaluation is to ensure that compensation is fair internally (among
employees) and externally (compared to the market), based on the job's value and not the
person doing the job.

Objectives of Job Evaluation:

 To develop a rational and consistent wage and salary structure.

 To eliminate wage inequalities among jobs.
 To help in career planning and job design.
 To serve as a basis for performance evaluation and training.

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Methods of Job Evaluation

Job evaluation is a vital tool in Human Resource Management for determining fair
compensation and ensuring internal equity. While non-quantitative methods are simple and
easy to use, quantitative methods provide more accurate and systematic evaluations. The
choice of method depends on the size of the organization, the complexity of jobs, and the
resources available.

Job Evaluation methods can be broadly classified into two categories:

A. Non-Quantitative Methods (Traditional)

These methods rank jobs as a whole based on their importance or difficulty, without
assigning numerical values.

1. Ranking Method

 Definition: Jobs are arranged in order of their relative importance or value in the
organization.
 Process: HR and managers review job descriptions and rank them from highest to
lowest.
 Example:
Suppose in a company:
o Job A: Manager
o Job B: Supervisor
o Job C: Clerk
The ranking would be: A > B > C
 Advantages: Simple and easy to understand.
 Limitations: Subjective and not suitable for large organizations.

2. Job Classification or Grading Method

 Definition: Jobs are classified into predefined grades or classes based on their general
characteristics.
 Process: Create job grades (e.g., Grade I, II, III) and match jobs to these based on
responsibilities and skills.
 Example:
o Grade I: High-level managerial jobs
o Grade II: Mid-level technical jobs
o Grade III: Clerical or support jobs
 Advantages: Easy to implement in public sector organizations.
 Limitations: May not reflect the precise value of each job.

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B. Quantitative Methods (Analytical)

These methods assign numerical values to job components to evaluate them more objectively.

3. Point Rating Method

 Definition: Jobs are evaluated by assigning points to various factors such as skill,
effort, responsibility, and working conditions.
 Process:
1. Identify compensable factors (e.g., education, experience).
2. Assign weightage and points to each factor.
3. Make total of the points for each job.
4. Compare total points to determine job value.

 Example:

Factor Weightage Job A Job B

Education 30 25 15

Experience 25 20 10

Responsibility 25 20 15

Working Condition 20 15 10

Total 100 80 50

 Job A is valued more than Job B.

 Advantages: Detailed and objective.
 Limitations: Time-consuming and costly.

4. Factor Comparison Method

 Definition: A hybrid method that combines the ranking and point rating methods by
comparing key job factors across jobs and assigning monetary values.
 Process:
1. Select key jobs as benchmarks.
2. Identify common compensable factors.
3. Rank jobs for each factor.
4. Assign monetary values to each factor for comparison.
 Advantages: More precise than ranking or grading.
 Limitations: Complex and difficult to explain to employees.

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The Factor Comparison Method allows employers to assign specific monetary values to each
compensable factor (like skill or responsibility), making job evaluation more objective and
detailed than simple ranking or grading.

Example:
Suppose two jobs – a mechanic and a technician – are evaluated on 5 factors:

Factor Mechanic Technician Assigned Value per Factor

Skill 3rd 1st ₹4,000
Mental Effort 2nd 3rd ₹3,000
Physical Effort 1st 4th ₹2,000
Responsibility 4th 2nd ₹3,500
Working Conditions 5th 5th ₹1,500

Each factor is scored and given a rupee value based on its ranking. This allows for fine-tuned
salary decisions, helping justify why a technician may earn more than a mechanic due to higher
mental effort and skill level.

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