Personnel Management

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PERSONNEL MANAGEMENT
FOR CONSTRUCTION INDUSTRY MANAGERS

-By Sushant Sharma

SUSHANT SHARMA

CONCEPTS
• MANAGEMENT – Accomplishment of organizational objectives by utilizing physical, & financial resources through the efforts of human resources. • RESOURCES - factors/means of production that results in conversion of raw materials into useful goods/services.
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Evolution of concept of HR
1. Labour / Manpower – denotes physical abilities & capacities of employees – commodity-wages based on demand & supply 2. Personnel – persons employed in service – employees as a whole 3. HR- denotes resources of all the people who contribute their services to the attainment of organizational goals
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• Human Resources –
– HR is the total knowledge, skills, creative abilities, talents and aptitudes of an organization's workforce as well as the values, attitudes and beliefs of the individuals involved.”

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Human Resource Management • Defined as the art of procuring, developing and maintaining competent workforce to achieve goals of an organization in an effective and efficient manner.
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PERSONNEL MGT Mgmt of people employed Man is an economic resource/service exchanged for wage / salary Commodity that can be purchased & used Employees are cost centers, mgmt controls cost Used organisational benefit Auxiliary function
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HRM Mgmt of KSA, abilities, attititudes.. Man is an economic, social & psychological Treated as a valuable resource Profit centre- invest capital for development & future use Used for organisation, individual & family benefit Strategic mgmt function

OBJECTIVES OF HRM 1. Review the organization structure and firm it up in line with the Organizational goals. To introduce the Task Force concept (after due concurrence of the concerned), thus giving a objective orientation to the reporting relationships. 2. Employ the skills & abilities of the workforce efficiently

3. Provide the organization with well trained & motivated employees 4. Increase to the fullest the employee's job satisfaction & self 5. Develop & maintain a quality of work life actualization

6. Communicate HR policies to all employees. 7. Ethically & socially responsive to the needs of society.

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Functions of HRM
A. Managerial Functions: Planning, Organizing, Directing , Controlling B. Operative Functions: Procurement functions, Development functions, Motivation & compensation, Maintenance, Integration, & Separation.
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Managerial Functions
• Planning – Determine the personnel programme regd recruitment, selection, & training to achieve desired objectives. • Organizing – design structure of relationships b/w jobs, personnel and physical factors. • Directing – Getting people to do work willingly & effectively thro supervision and guidance, motivation & leadership. • Controlling – ensure accomplishment of plans correctly- measure performance thro review reports, records, Employees satisfaction survey etc.

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Operative Functions
1. 2. 3. 4. 5. 6. Procurement Function – concerned with procuring & employing people with required knowledge, skill and aptitude. Development – Increase of skills, knowledge abilities etc Motivation & compensation – inspire people to give best-through incentives & rewards Integration – of goals thro programs, re-dressal, negotiations. Maintenance – protecting & preserving physical and psychological health of employees Separation

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Procurement

Development

Motivation & Compens ation Job design

Integration

Maintenance

Separatio n Retirement

Manpower Planning Job description Job Analysis Recruitment

Induction & orientation Training

Grievance redressal Discipline

Health & safety Employee welfare Social security measures

Work schedulin g Motivation

Layoff

Executive development

Teams & teamwork

Outsourcin g

Selection

Career planning & development Human Resource development

Job evaluation

Collective bargaining

Discharge

Placement

Performance appraisal

Employee participation & empowerment

Internal Mobility

Compensation administra tion

Trade unions & associations

Incentives & SHARMA Industrial relations SUSHANT benefits.

QUALITIES & QUALIFICATIONS OF A PERSONNEL MANAGER

a. Personnel Attributes: Initiative, resourcefulness, perception, maturity, analytical ability, unbiased, thorough with labour laws, understanding of human behaviour, Patience, Understanding, empathy, Perseverance

b. Skills: educational skills, discriminating skills, executing skills, leadership skills,

c. Experience & training, Professional Attitudes - knowledge of various disciplines.
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1. PROCUREMENT

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Manpower Planning / Recruitment
To firm up the Human Resource requirements for all business units for the next one year – to be reviewed each quarter to incorporate any changes which may be required. To review recruitment procedure in the Company along with application form , assessment and other related formats. To review the recruitment sources and develop an effective process for sourcing of manpower in an optimal manner after doing a cost benefit analysis in each case.
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Manpower Planning Procedure
1. Understanding the Project – Contract conditions, Technical spec., Estimate of quantities, Construction Methods &Techniques, time Frame 2. Work out the labour &staff component in various parameters of the project. By using “Constants “, to work out the labour requirements

3. Classifying &categorizing labour requirement and various jobs by level of skill, responsibility, nature of work (office/site), Staff category reqt

4. Determining the duration of each category of job at Tendering stage Updating it during execution stage providing for lead time

Estimating the nos required in view of the anticipated rates of absenteeism and labour turnover, and the stability factor
Putting price for each job –wage/pay by considering full. factors Level of skill reqd. Job Knowledge reqd. Degree of responsibility Nature of hazards/unpleasantness in the job Minimum Wages law Relative wage structure in the Co. Area Practices –going wage rates in the industry &the area Job duration-temporary, casual Career opportunities Special attention wages Guesstimate at the tender stages Critical skills Lead Time

1. Steps of Recruitment
• • • • • • • • • Forecast of personnel requirements Manning charts and personnel inventories. Developing sources of manpower supply for all levels of the company. Registration of vacancies. Notification of vacancies to those who seek employment. Receiving applications and making master roster. Selection tests: physical tests, trade tests, personality tests, employment interview. Final selection and appointment. Job description, job analysis, job evaluation.
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ABCD is a MNC construction firm. the firm has been awarded a project of constructing a township consisting of : - 250 flats of three BHK admeasuring 1300 square feet each - 50 commercial places ad-measuring 1000 square feet for each - IT park ad-measruing 50000 square metres The project has to be completed within 3yrs. 250 flats and 50 commercial places have already been sold out. Q1 How will you do manpower planning? Q2 How will you do staffing? Q3 Identify training needs Q4 What type of incentive scheme will you propagate Q5 What procedure will you follow in handling the grievances?

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Job Description/ Job Analysis:
Job description is a descriptive, accurate and reasonably detailed description of the activities to be performed in each job, knowledge, skills and abilities required for the performance of these activities & the status of the job in the hierarchy of organisation (to whom the job holder reports, how many report to him).

Job Description /Job analysis
1. State the title, designation and reporting relationships. 2. Prepare a list of all duties to be performed (regularly, daily, weekly, monthly, and intermittently). 3. Describe each duty in detail (Do not say assist but state what is done in the process of assisting. Avoid vague terms). 4. State how much responsibility is carried in the job. 5. Percentage of time spent on each duty or closely related groups of duties. 6. What is/ are the most difficult duty? 7. What is the most responsible duty? 8. How much is the supervisory responsibility? 9. What are the peasant and unpleasant features of the job? 10. What is next hob to which he can be promoted?

State the knowledge and skills required

1. 2. 3.

4. 5.

Required Educational qualifications, i.e. (degree/ diploma, subject, grade etc.) Experience in past jobs Skills possessed (through technical training, in service, hands on experience) Testimonials and references to be produced. Recommendations – by whom and nature.

Officer (HRD) He/ she is responsible to cooperate / assist the higher official for execution of the personnel related job in his/her section. •He/ she should be a graduate in Commerce / Science / Arts and shall preferably have post graduate degree / diploma in HRM with the experience of around 5-10 years in the field of HRM / Personnel & Administration preferably in construction industry. •He/ she should be well conversant with the personnel & HR policies, various labour laws and statutory requirements applicable preferably in the civil engineering industries. •He/ she should be intelligent and dynamic. -He/ She should be conversant with computer applications Qualification and Experience indicated above may be relaxed at the discretion of the Management depending on nature of experience / performance record. His/her major tasks are: .

•Collection and processing of attendance inputs for the preparation of salary inputs and coordinate the MIS section for preparation of salary. •Ensure the payment of salary / bonus etc. to all personnel. •Keep the records of staff related matters. •Coordinate the interview proceedings for recruitment, confirmation, and induction trainings and other trainings, seminars, short-term special courses etc. •Co-operate the higher officials in respect of welfare, training and development of the staff and workers. •Interact with manpower consultants/placement agencies
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Job Evaluation Process of determining the worth or value pricing of a given job. through Primarily , 1. Employees themselves provide information about the jobs they are doing, trained observed and time and motion study experts are engaged to carry out scientific studies of jobs to write job descriptions and manning standards and to the job rating which secures the basis of wage fixation plans. (Data are also useful for developing wage incentive plans and performance appraisal or merit rating scales of employees. ) 3. observations can be done in-house by experienced managers. Secondary considerations in working out the worth of a job are : -Competitive wage market -Availability of persons -Labour laws -Strength of trade unions and their bargaining power SUSHANT SHARMA - and the image of the company.

Three basic methods are followed in job evaluation or determining the worth of a job. They are namely: Classification plan Point rating plan, and Factor comparison method

Brief descriptions of each method are given below: a. Classifications plan i. write job descriptions of all categories of employees ii. iii. Group them by the nature of work done (mason, carpenter, plumber, accountant, typists) Sub-classify them by the level of difficulty and degree of responsibility in handling the job Put the classifications/ categories on a scale of wages: the bottom line fixed by the statutory minimum wage and the ceiling by company needs and practices. No strict guidelines are available for the scaling, allocation is done by experience and anomalies removed as they occur.

iv. Further sub-classify by supervisory or non supervisory responsibility v.

b.

Point Rating Plan i. identify and select the common characteristics/ elements/ factors to all jobs in the organization/ project. ii. A schedule of values in “points” (usually 1 to 10) is assigned to each element/ factor. iii. Each job is then analysed to determine the degree of each element (Most important, important, not important) iv. This is converted in a wage score Factor Education (10th std.) Experience Supervision Degree of Score importance (out of 10) High Med Low

If each element has a maximum of 10 scores and there are 10 elements, then the theoretical highest score is 100. Typically an acceptable or pass score is 60. It then, the minimum wage is Rs. 40 Per day then a score of 60 = Rs. 40; of 80 = Rs. 53.33 and so on.

c.

Factor Comparison Plan i. ii. Prepare job description and performance standards Select the following 5 factors in each job: iii. Mental ability Skill requirement Physical requirements Responsibility handled Working conditions. Which are clearly defined in regard to duties, and Salaries/ wages paid are not controversial, and rank them from the lowest to the highest in terms of their relative importance and worth

Select 4/5 or as required, number of key jobs:

iv. Ask 10/15 other supervisors to verify independently the ranking done and then evolve the final ranking. v. Weight age of the 5 elements mentioned above is established on the basis of their importance

vi. Results of step IV and V are combined to evolve the rating scale. vii. Then all jobs are compared with key jobs and given a value factor. Value in money is fixed from the lowest to the highest. Value of key job multiplied by the factor gives the wage to be paid.

Selection Procedure
1. Reception in employment office 2 . Preliminary Interview 3. Application blank 4. Selection Tests 5. Main employment office interview 6. Investigation of applicant’s background

7. Final selection interview by manager or supervisor

8. Medical examination 9. Induction

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2. DEVELOPMENT

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2. Induction and training
• Orientation of new employees. • Introduction to the supervisor, job, workplace, colleagues and company rules. • Training programmes - On-the-job - Workers’ training - Supervisory and foremen training - Management training - Participation in short term and weekend courses - Sponsorship programmes
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“Tell me and I forget, teach me and I remember, involve me and I learn” - Benjamin Franklin

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Training as a tool for increasing manpower productivity

Agenda
• Understanding “Training” • Purpose of Training • Training Process • Ways of discovering Training needs • Training Methods • Training Methodology • Training Benefits
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TRAINING
•Organized procedure by which people learn knowledge and/ or skills, attitude for a defined purpose
.
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PURPOSE OF TRAINING
TO MAKE PEOPLE COMPETENT BY IMPARTING FOLLIOWING SKILLS :

•TECHNICAL SKILLSIt refers to specific expertise- in market research , finance ,software programming and so forth

•INTERPERSONNEL SKILLS
-Ability to work with others- Leading &motivating teams &individuals /communications/negotiation /influencing delegation/act as coach or mentor for teams

•ORGANIZATIONAL SKILLS•Ability to communicate with other units , knowledge of the company’s political landscape &possession of a network.

•PROBLEM SOLVING SKILLS
-Ability to analyze difficult situations or impasses &to craft solution .Come with specialized trainings .Team leaders must have these.

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Training Process

Ways of Discovering Training needs
i.
Identify organisational and technical problems Low Productivity High costs Poor material control Poor quality, excessive scrap and waste Excessive labour-management strife Excessive violation of rules of conduct, poor discipline High employee turnover Excessive absenteeism Delayed production; schedules not met Analyze jobs and men Job analysis Employee appraisal Testing Collect employee and managerial opinions Interviews and questionnaires to obtain views regarding necessary and desirable training programmes Anticipate impending and future problems Expansion of business New products, new services New designs New plants New technology Organisational changes Manpower inventory – compare present manpower resources with forecasted SUSHANT SHARMA needs.

ii.

iii.

iv.

TRAINING METHODS 1. ON THE JOB 2. VESTIBULE 3. CLASSROOM A) LECTURE B) CONFERENCE C) CASE STUDY D) ROLE PLAYING 4. OTHER METHODS A) DEMONSTRATION B) SIMULATION SUSHANT SHARMA

1.JOB-Can On-The-Job Training 1. ON THE be in the form of pictures ,manuals , sample problems,
demonstrations ,oral &written explanations ,tape recordings

PROS
– – – – – – Provides realism. Allows active practice. Provides immediate feedback. High motivation. High transfer to job. Lowers training cost.

CONS • • • • • • • • • • Disruptions to operations. May damage equipment. Inconsistent across departments. Inadequate focus on underlying principles. Lack of systematic feedback. Transfer of improper procedures. Trainee stress. Quite often expensive manufacturing equipment cannott be duplicated in the classroom. Sometimes instructions are disorganized and haphazard Not appropriate for skilled , technical , professional &supervisory job s requiring educational background

• •





Teaching knowledge &skills can be learned in a relatively short time Useful for learning unskilled and semiskilled manual type jobs, clerical jobs or sales job Permits the trainee to learn on actual equipments and in the environment of the job Feeling of accomplishment is felt by the trainee

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2. VESTIBULE
-Training

in classroom for semiskilled production and clerical jobs - particularly useful where large no of employees are to be trained at same time for same kind of work. -Emphasis on learning rather than production - used for clerk , bank tellers, inspectors, machine operator ,testers ,typists , training on ERP –data entry operators etc - Learning time – few days –month - Attempt to have actual material , equipments & conditions as of real work place

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Classroom Training Skills
• Be aware of appropriate body language and speech. • Watch how you talk to employees. Covey respect and appreciation. • Handle problem behaviors in an effective manner. • Avoid time wasters. • Facilitate employee participation and discussion. • Use visual aids to avoid constantly referring to notes.
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3. Classroom Methods- Lecture
1. 2. Can be used for large group thus cost of training is Low. Can be organized rigorously so the ideas and principles relate properly to one another Efficient dissemination of large volume of information. Effective in explaining concepts, theories, and principles. Provides opportunity for discussion.

3. 4. 5.

Violates the principle of learning of doing 2. No feedback from the audience. Constitute one way communication 3. For particular level of knowledge so it might bore the advanced students /might be beyond the capabilities of slow learner 4. Doesn't confirm that the trainees would be able to apply the knowledge , as it is based on facts and figures. 5. Difficult to hold the full attention of listeners for a sustained period , lectures are tempted to jokes. Learner does not control pace or content Does not consider individual differences. Limited practice. Limited feedback. Limited transfer to job. SUSHANT SHARMA

1.

Classroom Methods-Conference
1.

1. 2.

Limited to small group Progress is often slow as all those desiring to speak on a point are generally allowed to do so

2. 3. 4.

Primarily for development of conceptual knowledge Creation &modification of attitude Case study is generally suited to this conference format Used in supervisory and executive development programmes

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Classroom Methods-Case Study
1. This gives trainees opportunity to apply knowledge to the solution of realistic problems Provides learning by doing based on real experiences and problem situations
1. These are usually conducted in a conference atmosphere .Trainees soon learn that there is no single answer to a particular problem. Usually Engrs are frustrated as instructor doesn’t tell them what is right solution

2.

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Classroom Methods-Role Playing
1. Provides oppertunities to students to actually put into practice the knowledge obtained from textbooks ,lectures and discussions Learning by doing/experiancing Helps to appreciate other point of view when roles are switched over Knowledge of results is immediate , because the role players themselves as well as the class analyze and criticize the behavior of the players

1. 2. 3. 4.

2. 3.

Primarily for development of conceptual knowledge Creation &modification of attitude Case study is generally suited to this conference format Used in supervisory and executive development programmes

4.

Good Practice –1. Shall be used in combination with lecture/ conference
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4. Video and Film
PROS CONS

• Does not consider • Provides realism. individual differences. • Adds interest. • Limited practice. • Allows scheduling • Limited feedback. • Adds additional cost. flexibility. • Allows exposure to due to: hazardous events. * Script writers * Production specialists • Allows distribution to * Camera crews multiple sites.
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5Computer Assisted Instruction
PROS CONS

• Efficient instruction. • Considers individual differences. • Allows scheduling flexibility. • Allows active practice for some tasks. • Allows learner control. • Provides immediate feedback to tasks.

• Limited in presenting theories and principles. • Limited discussion. • Transfer depends on particular job. (Good for computer work.) • High development cost (40-60 hours per hour of instruction at approx Rs. 10,000 per hour.)
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6. Simulation
PROS CONS
• Provides realism. • Cannot cover all job aspects. • Allows active • Limited number of practice. trainees. • Provides immediate • Can be very expensive feedback. (for example, “aircraft • Allows exposure to simulators” and “virtual hazardous events. reality” simulators). • High transfer to job. • No job interference. • Lowers trainee stress.
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Training Methodology
i. ii. iii. iv. v. vi. vii. viii. ix. x. The training should be in local language. The number of trainees may not exceed 15 at a time for each batch. The trainees should be able to read and write and calculate simple items. No level of education is necessary. In general it is necessary to have trained trainers. The master technicians may be given a week’s training and used as trainers. It is necessary to collect, translate, produce basic audio-visuals, pamphlets or books in local languages for different trades in hand – on experience method. It is necessary to have short video films to explain the different steps in different skills of the different trades. Necessary tools, measuring tapes, plumb bob, level, right-angle etc. should be arranged for each tradesman. Necessary building materials required by each participant have to be arranged. The number of days of training could be one week (6 days) for each module or grade and not more than 2 modules be given in one spell. Each training course may be made into 3 or 4 modules or grades to suit the requirement of skills. Each one who passes one module or grade can work as an apprentice for about a month or so and then come back for the second module or grade and so on.
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Training Methodology
xi. All the participants must, in the first few hours, be explained the objects of training, their scope of work, responsibilities, coordination with other trades and get them more involved in their training programmes. xii. Another aspect is the safety in their trades and quality and productivity in their work. For all this proper data has to be collected, analysed and given to the trainers to do a correct job. xiii. The training place should be such that the overhead projector, slide projector and video can be used. There should be enough space for stacking of materials and samples needed for each trade, proper arrangements for tools and equipment must also be made. It is also necessary that the actual work spaces are nearby so that participants can walk along and need not wait for conveyance. xiv. It is of advantage to select one or two big work sites where training and practical work can be conducted.

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Factors to consider
• • • • Training to benefit organisation Training to benefit employees Training to benefit the industry Provide a good return on investment?

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Importance of Training and Development
• Maintain skill levels • Advance skill and knowledge to improve
– Performance (efficiency) – Service delivery (error rate) – Profitability (productivity, manpower)

• Integrate new technologies into work • Establish standards for work practices
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Benefits of Training Individuals
• Do job more efficiently – learn new methods • Professional approach to work, engaged in best practice routines • Personal satisfaction – felt valued • Recognised qualification to add to CV

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The Importance of Employee Training in Increasing Sales

• What Does Employee Training Do For Your Business?
– Keeps Good Employees – Expands Your Offerings = Business – Provides Better Customer Service – Makes you MONEY!!
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The Benefits of Training
• Gives the supervisor more time to manage, standardized performance, less absenteeism, less turnover, reduced tension, consistency, lower costs, more customers, better service • Gives the workers confidence to do their jobs, reduces tension, boost morale and job satisfaction, reduces injuries and accidents, gives them a chance to advance. • Gives the business a good image and more profit.
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Benefits of Training-a summary
• • • • • • Improved customer service and public relations Fewer complaints Better morale and attitudes Less turnover and absenteeism More involved and caring employees Proactive vs. reactive employees

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Importance of Training Teaching people How to do Their Jobs:
• There are three kinds of training: Job Instruction, Retraining, and Orientation. • The big sister/ big brother system is when a old hand dominates a newcomer. • When good training is absent there is likely to be an atmosphere of tension, crisis, and conflict because nobody knows what to do.
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Training Process Model
II. Developing & Conducting Training

I. Needs Assessment

III. Evaluating Training

TRAINING PROCESS
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I. Needs Assessment

1. Organizational Level 2. Job Level 3. Individual Level
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1. Organizational Level
• Technology change. • Organizational restructuring. • Change in workforce. • Marketing Plans. • Productivity measures
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2. Job Level
• Job and task analysis. • Identify Key areas. • Review procedural and technical manuals.
Design Training Program
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3. Individual Level
Determine who needs training and what kind.

• • • •

Tests. Prior training and experience. Performance review. Career assessment.
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II. Developing and Conducting Training
1. Determine location and who will conduct the training.
o Onsite facilities vs. offsite. o Inside training staff vs. outside vendors.

2. Develop training curricula.
Based on job/task analysis and individual needs.

3. Select training methods.
o Considering learning principles. o Consider appropriateness and cost.
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III. Evaluating Training Effectiveness
• Formal evaluation: uses observation, interviews, and surveys to monitor training while its going on. • Summative evaluation: measures results when training is complete in five ways: 1. Reaction 2. Knowledge 3. Behavior 4. Attitudes 5.Productivity

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IV. Transfer
Transfer refers to the trainee’s application of knowledge and skills gained in training on the job. It is affected by:
• Relevance and effectiveness of the training – readiness, practice, and feedback principles. • Follow-up instruction and support. • Reinforcement to use new knowledge and skills.

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3. MOTIVATION&COMPENSATION

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MOTIVATION TECHNIQUES
1. JOB DESIGN –Frederick Taylor / goal is to achieve
max human efficiency in jobs.

2. JOB ENRICHMENT –Job to be designed
to provide opportunities for achievement ,recognition, growth and responsibility.

3. MONEY 4. PARTICIPATION 5. COMPETITION

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1. Dimensions of Job Design
Job Enrichment Making jobs meaningful, Interesting and challenging

Goal Setting Building goals, feedback, and incentives into the structure of the job

Job Design

Job Enlargement Adding more tasks to the job variety

Job Engineering Concentrates on the efficiency of the job through time and motion analysis and person-machine interfaces

Job Rotation Doing different jobs for variety

Socio-technical Approach Making a group or team responsible for the job and balancing the social and technical aspects of the job

3. Money
1. Urgent means of achieving a minimum standard of living . Need based money requirement shall be identified. 2. Means of keeping an organization adequately staffed. 3. Making sure that salaries of various managers are equitable 4. Money -as a reward for accomplishment &a way of giving people gratification – although Bonus shall be linked to individual performance

4. Participation
Means of recognition Needs for affiliation & acceptance Gives people sense of accomplishment

5. Competition
Advantages-Maximizes efforts for achieving awards . Prizes& promotion

-

Disadvantages -Common goals lead to jealousy & hostility - Poor mutual cooperation leading to destruction of teamwork -Frustration experienced by the losers –leading to aggression ,regression , resignation, ,fixation. Sublimation etc

Total rewards categories and examples of rewards Compensation Base Salary Annual Incentives Long-Term Cash Incentives Equity shares Spot Awards Project Incentives Benefits Health Care Life Insurance disability Retirement Child-Care Resources Fitness Center Development Career Planning Succession planning Professional Membership Work Environment Flexible Workweek Telecommuting Job Design Modifications

Training Programs Comfortable Workstations Annual Conferences Mentoring Program Lunch and Learns Recognition Programs Community Volunteer Programs Business Casual Dress Policy

Employee Referral On-Site Program Conveniences

Wages and salary administration
• • • • • • • Wage scales, increments Wage standardisation Salary and wage surveys and reviews Wage incentive plans Profit sharing schemes Allowances, bonus and gratuity Executive compensation and fringe benefits
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Wage – Means of providing Income for employees and the cost of doing business to the employer Principles of Wage policy 1. Competitive rate of pay and associated pay supplement to attract job applicants 2. Compensation packages with job evaluation ,pay scales, and employee classification procedure - -to control wages ,salaries &labour cost . 3. To keep employee content- to minimize quitting , reduce employee complaint &grievances due to inadequate / inequitable wage 4. Rewarding better performance – as a motivating tool
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Wage Criteria
1. Prevailing Wages -Refer to statutory min wage /ascertain what other firms pay for same class of work in same labour market 2. Ability to Pay3. Cost of Living – based on changes in Consumer Price Index prep. By Labour Bureau. 4. Productivity- Goods /service produced per manhour of labour .High productivity leading to increased dividends to stockholders , in form of retained earnings to the organization and in terms of high quality and lower prices to the owners leads to increase in wages 5. Bargaining Power- Unions organized by for purpose of collective bargaining 6.Job requirements- Jobs are graded base on relative amount of skill , effort ,responsibility , job conditions reqd. 7.Observations concerning these criteria
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Performance appraisal
Performance Appraisal is a systematic attempt to measure the performance of all employees and take steps to ensure its continuous improvement. It entails: 1.Setting clear goals & desirable behavior for all employees 2.Evaluating i.e. comparing output with the goals set 3.Evaluating i.e. comparing behavior with the scale 4.Passing a feedback 5.Recommending rewards for performers 6.Recommending a Development Plan to address skill gaps 7.Counseling to address motivational issues
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A Methodology for Performance Appraisal
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Objectives of Performance Management
It is an organization wide management program that provides a structured and scientific approach for development To communicate business strategy Establish a shared understanding of what is to be achieved and how it is to be achieved. Facilitate management of self and others Measure & motivate performance (organization & individual)
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Response (What to do?)
Vision & Mission What do we want to be? Imagining a new future

Business Strategies

What key results do we want to achieve? What do we need to be good at to accomplish this?

Strategic Objectives

Business Value Drivers

What do we need to track to know we are successful?

KPI’s Targets Measure Outcomes Reward or Redirect

What benchmarks should we be using? How are we doing? How do we compare? What do we need to change?
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Why to Measure Performance
To understand organizational objectives and plan meaningful directions. It is a tool to control the work (outputs) of an employee in order to achieve required results. It provide guidelines and standards on which the performance of and that of his employees, can be: • Monitored, Measured, Developed & Rewarded • To enhance efficiency, effectiveness and improve performance.

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Performance Management Model
Vision, Mission and Purpose
CHANGES & INFLUENCES OF THE EXTERNAL ENVIRONMENT

Values
Strategy Performance Management
Measures Results

Job Descriptions - Objectives - Key Functions - Competencies - Measures

Key Result Areas (KRAs) & Key Performance Indicators (KPIs) by: - Business Verticals - Department - Employee

Outcomes Appraisals

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The Performance Management Process
Performance Management comprises of:
Planning Implementation Observation Evaluation Informal feedback Formal feedback Performance Appraisal Performance Improvement Plan - for under performers: Granting of rewards

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Performance Management – Some Definitions
Key Performance areas (KPAs):- The main / critical areas of a specific Job Key Activity: - a Collection of key actions/ tasks within a KPA Key Performance Indicators:- The end result / product (measurement tool) of a key activity Performance Assessment Criteria:- Indicates the quality and quantity of work to be executed in a specific time frame (Indicated by the rating 1 – 5)

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Benefits of setting KPAs

Clarify one's roles Align one's roles to the organization's business or strategic plan Focus on results rather than activities Set goals/objectives and plans to reach them. Prioritize one's activities, and therefore improve one's time/work management

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1. Understanding the Company’s:
Vision Statement Objectives Strategy Business Units/Departmental Plans/Strategy

Roles Accountabilities KPAs
Self Appraisal

Business Strategy Department Goals
Appraisal (Appraiser & Reviewer) •KPA’s •Competencies Rating

Performance Review

Reward & Recognition

Feedback & Counselling

Development Plan
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2. The choice of KPAs and thus KPIs will vary from year to year, subject to company's
Strategic Planning Corporate Strategies Corporate Objectives

Which in turn affects the Business Units’
Strategic Planning Strategies Objectives

KPA sleections Enlist the main day-to-day responsibilities/activities. For each activity, ask “Why do I do this?” Review the answers to the “why” questions, looking for common areas. Criterion for setting KPAs • KPAs should be 3-5 in numbers. • KPAs should describe results, not actions. KPAs should be discussed and finalized SUSHANT SHARMA with the appraiser.

3. Setting KPIs
KPIs need to be: S M A R T Specific Measurable Achievable Result-oriented Time- bound

SUSHANT SHARMA

Examples of KPAs &KPIs
Core KPAs Of Human Resource & People Development can be: Recruitment Workforce planning/ diversity Performance management Reward management Workplace management and relations Building capabilities and organization learning Effective HR management systems , support and monitoring

SUSHANT SHARMA

Examples of KPAs & KPIs
KPA 1 –Recruitment 2 KPA 2 -Hiring Rs KPI - average time taken per employee months KPI - average hiring cost per employee 10,000

KPA 3 - Workforce Planning KPI - Absenteeism rate at 5% KPA 4- Turnover KPA 5- Diversity KPI - Turnover rate at 7% KPI - 3 females to be inducted into each department

SUSHANT SHARMA

Employee gets to fill up his part of the appraisal. Superior goes through the document & puts his comments

An Effective Performance Appraisal Process

Superior holds the review meeting discusses Superior puts his final comments

SMART Goals set by employee In consultation with the superior

Head office puts the final rating

SUSHANT SHARMA

4. INTEGRATION

SUSHANT SHARMA

Grievance is any dissatisfaction or feeling of injustice in connection with one’s employment situation that is brought to the attention of management.

SUSHANT SHARMA

8. Grievance handling
The basic features of this grievance handling procedure, as of most other procedures of the purpose are stated below:

1. A grievance should be settled at the lowest level possible i.e. the supervisor of the aggrieved worker, in the department where it occurred and in the shortest possible time. It must pertain to working hours or conditions of only work. 2. A grievance must be filed in writing by the worker or by a union representative on his behalf with the supervisor of the department where the worker works. 3. The grievance procedure should be a step-ladder mechanism 4. It is filed to the immediate supervisor who should settle it in the specified time - say one week. 5. If not settled, it is forwarded to the head of the department/ section/ site where the worker works. The head should try to settle it within a specified time – say one week. 6. If still unsettled, the grievance moves up to the manager concerned who tries to settle it say one week. 7. If still unresolved, the grievance is referred to the Grievance Committee comprising workers representatives and management nominees and presided over by the personnel manager. It is expected that the grievance is settled at this forum. 8. If still unsettled it is referred to the arbitration under the law. 9. The worker should be present at the time when his grievance is considered and if he so desire, he may be accompanied by a worker’s representative or a union leader. This SUSHANT SHARMA mechanism is presented in the chart given below:

SUSHANT SHARMA

OTHER FUNCTIONS
- Transfer &Promotion - Superannuation &separation Health insurance, employees state insurance, provident fund, pension plans, gratuity Working conditions: working hours, overtime, leave, holidays, employment of women and young persons and matters specified by various statutes Health, safety and welfare on the shop floor mostly prescribed under various statutes Labour welfare services: Housing, health, education, cooperatives, transport, welfare funds and similar other voluntary programmes Dealing with trade unions Dealing with government, labour and factory departments Dealing with industry associations particularly specialised in industrial relations Filling returns, statements and other documents to various data collection agencies and national statistics set up through legislation or by government orders Personnel records, research and statistics
SUSHANT SHARMA

Discipline
• Approaches to Discipline
– Negative Discipline –
– – People gives min performance necessary to avoid punishment Rule though fear approach leading to limited success

– Positive Discipline/Constructive dicipline
– – – – Develops willing adherence to necessary rules &regulations of the Co. Positive support &reinforcement for approved action for learning Aim is not to harm the individual, to develop personal responsibility and self discipline Pre-requeste to +ve discipline- communicating reqt of job, rules and regulations of theCo, fair and attainable targets , consistent from job to job , rules reasonable &few in nos



Principles for Administration of Disciplinary Action
– Definite Policy & Procedure

– Communication of Rules- Employee handbook – Burden of Proof- Employer to show that worker is guilty of alleged offence – – – – – Consistency of Treatment Circumstances of the Case Progressive Penalties Reasonable Rules & Standares Right of Appeal

SUSHANT SHARMA

Discipline (Contd.)
• Offences – Minor or Moderate Offences – Serious Offences – Meaning of Indiscipline – Dealing with Indiscipline – Approaches to Discipline – Punishment – Termination – Preserve Findings • Summary
SUSHANT SHARMA

Industrial relations
Method covered in standing order
1. Type of workmen – Permanent, Temporary, Badlis, Probations ,casual, Apprentice 2. Manners of intimating to workmen period & hours of works, holiday, days, pay days & wages rates. 3. Shift working 4. Attendance & Late coming 5. Condition of procedure in apply for & the authority which may grant, lean & hole days. 6. Requirement to enter premises by certain gates, & liabilities co search. 7. Closing & reopening of sections of the industrial establishment & temporary stoppage of work & rights & liabilities of employer & workmen arising there form. 8. Termination of employment & notice thereof to be given top employer & workmen. 9. Suspension on dismissal for nonconducte & act on omissions which constitutes misconduct. 10. Age of superannuation: Any other matter which may be prescribed.
SUSHANT SHARMA

PROCEDURE OF HOLDING ENQUIRY AGAINST A WORKER
The first and primary step is to carry out a preliminary investigation before the employer holds a disciplinary enquiry in order to find out whether a prima facie case of misconduct is evident. Thus the enquiry should be the result of a preliminary investigation and should not be adopted merely as a matter of course. After the preliminary investigation is carried out and a prima facie case of misconduct is established, the following stages of disciplinary enquiry should be followed: i. Issue and service of a charge sheet calling upon the employee to submit an explanation. ii. Consideration of the explanation. iii. Giving notice of an enquiry into the charges in case of unsatisfactory explanation. iv. Suspension with or without pay, pending enquiry (if needed) v. Enquiry into the change: Deciding as to who should conduct Deciding as how to proceed Deciding about the order of examining witnesses

PROCEDURE OF HOLDING ENQUIRY AGAINST A WORKER
vi. Recording of findings by the enquiry officer vii. Punishment – decision viii. Communication of punishment. Let us examine each step in detail. Issue of a charge-sheet As soon as misconduct is observed and confirmed through preliminary investigation a manager should frame a charge-sheet which contains charges or a description of misconduct, and an explanation should be asked for. A manager has to be very careful in framing the charge-sheet because if the punishment awarded is not in consonance with the charges it would be invalidated. The following points should be considered while framing the charge-sheet: i. The charge-sheet should be properly worded and loose language should not be used so as to create apprehension and confusion in the mind of the concerned workman.

PROCEDURE OF HOLDING ENQUIRY AGAINST A WORKER
ii. While stating the offence, the date, time and place of its commission and all other relevant details should be given. iii. If in a firm, standing orders are in force, then the wording of the charges should be inconsonance with the wording in the standing orders. iv. The proposed punishment may be mentioned. v. It should call upon the worker to submit an explanation in writing within a specified time or date. vi. The charge-sheet should be issued under the signature of the disciplinary authority and not of the enquiry officer. vii. The charge-sheet should be properly served and there should be strict proof of issue and delivery so that later the worker may not deny it. The following alternatives exists: (a) when the workman is present, hand over and obtain signature on duplicate copy, (b) if he refuses to sign, then duplicate may be signed by the manager and two witnesses, (c) deliver it to him by registered post, (d) if the registered charge-sheet is returned unserved, then it should be displayed, when removed, etc, and (e) in appropriate cases, the charge-sheet should be published in a local newspaper having sufficient circulation or coverage.

PROCEDURE OF HOLDING ENQUIRY AGAINST A WORKER
Consideration of the Explanation The workman receiving the charge-sheet may: 1. Submit his explanation admitting the charge and ask for leniency even if such an admission is unqualified and unambiguous the enquiry should be held before awarding the punishment. In such an enquiry, the enquiry officer need not record evidence but should record findings on the basis of the admission of charges in the worker’s presence and his signature may obtained. Submit his explanation refusing the charge-sheet. Then it is to be carefully examined, to find out whether the explanation is satisfactory or not. A further decision about proceeding in the matter and a detailed enquiry is to be taken on that basis. Apply for an extension of time for submitting and explanation. If such an extension is reasonable then it should be given, so as to avoid further controversy. Fail to submit his explanation, the employer may follow further proceedings of enquiry.

2.

3.

4.

PROCEDURE OF HOLDING ENQUIRY AGAINST A WORKER
Notice of Enquiry The enquiry should be normally hold within a reasonable time of receiving the explanation. Proper and sufficient advance notice should be given indicating the date, time and venue of the enquiry and name of the enquiry officer, so that the workman can prepare his case. It should also be notified that he should be ready with oral and documentary evidence on the date of enquiry and bring witnesses to prove his case. In certain cases, the following steps may be observed previously mentioned: Issue of show cause notice Consideration of explanation, and Issue of charge-sheet and notice of enquiry instead of those

While framing the notice, care should be taken not to make a statement which would indicate that the workman’s case has been prejudged, e.g. statement that the explanation was false etc. should not be made.

PROCEDURE OF HOLDING ENQUIRY AGAINST A WORKER
Suspension with or without Pay Pending Enquiry if Needed Where the nature of misconduct is grave and serious, and if it is in the interest of security and safety and maintenance of good order and discipline in the establishment, the worker may be suspended with or without pay till disciplinary proceedings are completed. A manager may suspend a worker even before the charge-sheet is issued or an order of suspension may be given along with the charge-sheet. In a case where standing orders limit the period of suspension, the enquiry must either be completed within the period or wages should be paid for the time exceeded. Conduct of the Enquiry Who should hold the enquiry?

PROCEDURE OF HOLDING ENQUIRY AGAINST A WORKER
Enquiry Officer Standing orders may provide as to who should hold the enquiry. Otherwise an assistant manager, or administrative officer, or labour welfare officer may be nominated. Thus he may be either a member of the management, or an outsider, or an employer’s lawyer or the manager of another business, but not a person who is himself involved in the incident. He has to collect information and arrive at a conclusion. He should not act as a prosecutor or an inquisitor. There should be no personal bias, otherwise the principle of natural justice is violated. The enquiry officer has authority to give an adjournment to the charge-sheeted workman. Request for Adjournment: if the workman concerned requests for further time on reasonable grounds then another enquiry date should be fixed and conveyed. Nominee of the Accused Workman: if the charge-sheeted employee would like another employee to represent and assist him in the conduct of his defense, the enquiry officer should allow this. However, if is left to the discretion of the management to allow a non-employee union official to act as a nominee of the workman at the enquiry.

PROCEDURE OF HOLDING ENQUIRY AGAINST A WORKER
Interpreter: he may be needed when the workman is not familiar with the language of the enquiry officer. The enquiry officer should record preliminary statements pertaining to the date of holding the enquiry, persons present, statement of charges, statement that the enquiry procedure was explained to the workman: In the presence of the accused workman, witnesses should be examined one by one so that prospective witnesses do not know what the previous witness has said. Each witness should be first examined by the party which has called him (examination in chief) and then be opposite party (cross-examination). The evidence may preferably be recorded by the enquiry officer in a narrative form. Order of examination of witnesses: in the presence the workman of the workman, first the management witnesses should be examined. Then fair opportunity should be given to the workman to cross-examine the management witnesses. Documentary evidence should also be produced through witness and be made a party of the enquiry proceedings.

PROCEDURE OF HOLDING ENQUIRY AGAINST A WORKER
At the end of the recording of evidence given by a witness, he should be asked to sign and then the enquiry officer should also sign the evidence. After that the worker’s witnesses including the worker should be examined. They can be cross examined, and the records should be signed. Expartite Enquiry: when the workman does not turn up for the enquiry without notice or reasonable cause or refuses to participate or walks out then the enquiry officer may proceed to hold the enquiry ex parte. Finding of the Enquiry Officer At the conclusion of the enquiry proceedings, by applying his mind to all the facts that emerged at the enquiry, the enquiry officer should decide as the whether the charges made are valid or not along with reasons for his findings. He may or may not recommend punishment. As far as possible he should refrain from awarding punishment and leave it to the decision of the appropriate authority.

PROCEDURE OF HOLDING ENQUIRY AGAINST A WORKER
Awarding of Punishment This is a management task and punishment awarded should be based on the findings of the enquiry and past record of the employee. The gravity of misconduct should be taken into account. Communication of Punishment After a decision is taken regarding punishment, it should be communicated to the concerned workman as expeditiously as possible. the latter communicating the punishment should contain: Reference to the letter of charge issued to the employee Reference to the enquiry Reference to the findings of the enquiry Decisions whether to punish or not and Date from which the punishment is to be effective

When it is necessary to have the approval or prior permission of the conciliation officer, court or tribunal for effecting the order of punishment as provided under Section 33 of the industrial Disputes Act, a slightly different procedure is to be followed.

PROCEDURE OF HOLDING ENQUIRY AGAINST A WORKER
In such a case the letter communicating punishment should mention permission obtained or being obtained. This so in case of prior permission. If the punishment is dismissal or discharge and permission is yet to be obtained, then the letter should mention this and the concerned workman should be placed under suspension. In cases where prior approval is necessary the order of punishment is effective at once because only an application to the concerned authority for approval is to be sent by the management along with the payment of one month’s wages to the concerned workman.

Welfare activities
Conducting family get together. Organizing at least two retreats for senior management where they would be made aware of the important developments in the organization and the futuristic policies envisaged. Conducting a talent contest among employees and their families. Encouraging the children's of employees by awarding them for their academic as well as extracurricular achievements
SUSHANT SHARMA

ROLE OF PERSONNEL MANAGER 1. Administrative Roles Policy maker - develop personnel policies Administrative expert - record keeping, databases, processing benefits/claims, leave, medical facilities. Advisor - to line managers , grievance redressal, conflict resolution, selection & training Housekeeper - recruiting, testing, ref check, employee surveys, salary & wage admin Counselor - on various personal and professional problems Welfare officer - provides & maintains canteens, hospitals, clubs, libraries, transportation, coop societies. Legal consultant - settling disputes, handling disciplinary cases, collective bargaining. 2. Operational Roles Recruiter Trainer, developer, motivator Coordinator mediator 3. Strategic Roles Change Agent - translate vision statements into meaningful format. Strategic partner - training centre, design centre..
SUSHANT SHARMA

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