MODULE – III

Staffing

Staffing: Definition, Meaning, and Functions

What is Staffing?

Definition: Staffing can be defined as one of the most important functions of management. It
involves the process of filling the vacant position of the right personnel at the right job, at right
time. Hence, everything will occur in the right manner.

It is a truth that human resource is one of the greatest for every organization because in any
organization all other resources like- money, material, machine etc. can be utilized effectively
and efficiently by the positive efforts of human resource.

Therefore it is very important that each and every person should get right position in the
organization so as to get the right job, according to their ability, talent, aptitude, and
specializations so that it will help the organization to achieve the pre-set goals in the proper way
by the 100% contribution of manpower. Thus it can be said that it is staffing is an essential
function of every business organization. From this, we can understand what is Staffing?

Functions of Staffing

1. The first and foremost function of staffing is to obtain qualified personnel for different jobs
position in the organization.
2. In staffing, the right person is recruited for the right jobs, therefore it leads to maximum
productivity and higher performance.
 3. It helps in promoting the optimum utilization of human resource through various aspects.
4. Job satisfaction and morale of the workers increases through the recruitment of the right person.
5. Staffing helps to ensure better utilization of human resources.
6. It ensures the continuity and growth of the organization, through development managers.

Importance of Staffing

Efficient Performance of Other Functions

For the efficient performance of other functions of management, staffing is its key. Since, if an
organization does not have the competent personnel, then it cannot perform the functions of
management like planning, organizing and control functions properly.

Effective Use of Technology and Other Resources

What is staffing and technology’s connection? Well, it is the human factor that is instrumental in
the effective utilization of the latest technology, capital, material, etc. the management can
ensure the right kinds of personnel by performing the staffing function.

Optimum Utilization of Human Resources

The wage bill of big concerns is quite high. Also, a huge amount is spent on recruitment,
selection, training, and development of employees. To get the optimum output, the staffing
function should be performed in an efficient manner.

Development of Human Capital

Another function of staffing is concerned with human capital requirements. Since the
management is required to determine in advance the manpower requirements. Therefore, it has
also to train and develop the existing personnel for career advancement. This will meet the
requirements of the company in the future.

The Motivation of Human Resources

In an organization, the behaviour of individuals is influenced by various factors which are

involved such as education level, needs, socio-cultural factors, etc. Therefore, the human aspects
of the organization have become very important and so that the workers can also be motivated by
financial and non-financial incentives in order to perform their functions properly in achieving
the objectives.

Building Higher Morale

The right type of climate should be created for the workers to contribute to the achievement of
the organizational objectives. Therefore, by performing the staffing function effectively and
efficiently, the management is able to describe the significance and importance which it attaches
to the personnel working in the enterprise.

Characteristics of Staffing

People-Centered

Staffing can broadly view as people-centered function and therefore it is relevant for all types of
organization. It is concerned with categories of personnel from top to bottom of the organization.

 Blue collar workers (i.e., those working on the machines and engaged in loading, unloading etc.)
and white collar workers (i.e., clerical employees).
 Managerial and Non Managerial personal.
 Professionals (eg.- Chartered Accountant, Company Secretary)

Responsibility of Manager

Staffing is the basic function of management which involves that the manager is continuously
engaged in performing the staffing function. They are actively associated with the recruitment,
selection, training, and appraisal of his subordinates. Therefore the activities are performed by
the chief executive, departmental managers and foremen in relation to their subordinates.

Human Skills

Staffing function is mainly concerned with different types of training and development of human
resource and therefore the managers should use human relation skill in providing guidance and
training to the subordinates. If the staffing function is performed properly, then the human
relations in the organization will be cordial and mutually performed in an organized manner.
Continuous Function

Staffing function is to be performed continuously which is equally important for a new and well-
established organization. Since in a newly established organization, there has to be recruitment,
selection, and training of personnel. As we compare that, the organization which is already a
running organization, then at that place every manager is engaged in various staffing activities.

Therefore, he is responsible for managing all the workers in order to get work done for the
accomplishment of the overall objectives of an organization.

What is Human Resource Management?

Human Resource Management, or HRM, is the practice of managing people to achieve better
performance. It’s about optimizing company performance through better management of human
resources.

What is a Human Resource?

Human Resources are all the people that in one capacity or another work for or contribute to an
organization. These people can be (full-time) employees, contractors, freelancers, or any other
kind of contingent worker.

What are the basics of Human Resource Management?

Recruitment & selection, performance management, learning & development, succession

planning, compensation and benefits, Human Resources Information Systems, and HR data and
analytics are considered cornerstones of effective HRM.

Basic concepts of HRM :-

1. Recruitment & selection

2. Performance management
3. Learning & development
4. Succession planning
5. Compensation and benefits
 6. Human Resources Information Systems
7. HR data and analytics

1. Recruitment & selection

Recruitment and selection are arguably the most visible elements of HR. We all remember our
first interview, right?

Recruiting candidates and selecting the best ones to come and work for the company is a key HR
responsibility. People are the lifeblood of the organization and finding the best fits is a key task.

The request for new hires usually starts when a new job is created or an existing job opens up.
The direct manager then sends the job description to HR and HR starts recruiting candidates. In
this process, HR can use different selection instruments to find the best person to do the work.
These include interviews, different assessments, reference checks, and other recruitment
methods.

Sometimes, when there are a lot of candidates, HR may deploy preselection tools. These tools
help to separate the wheat from the chaff when it comes to suitable candidates. The successful
candidates then continue to the next round, where they are interviewed and receive a more in-
depth assessment.

2. Performance management

Once employees are on board, performance management becomes important. Performance

management is the second HR basic. It involves helping people to become their best selves at
work, boosting the company’s bottom line.

Usually, employees have a defined set of responsibilities that they need to take care of.
Performance management is a structure that enables employees to get feedback on their
performance – to reach their best performance.

Examples are formal one-on-one performance reviews, 360-degree feedback instruments that
also take into account the evaluation of peers, clients, and other relations, and more informal
feedback.

Usually, companies work with an annual performance management cycle, which involves
planning, monitoring, reviewing, and rewarding employee performance. The outcome of this
process enables the categorization of employees in high vs. low performers and high vs. low
potentials.

Successful performance management is very much a shared responsibility between HR and

management, where usually the direct manager is in the lead and HR supports. Good
performance management is crucial. Employees who are empowered to their full potential,
improve the efficiency, sustainability, and profit margin of a business. Employees which
consistently underperform may not be a good fit for their role, or the company culture. These
employees may need to be let go.

This is also one of the basic responsibilities of HR.

3. Learning & development

People are the product of life experiences, the country and era they grow up in, and a range of
cultural influences. Within HR, learning and development ensure that employees adapt to
changes in processes, technology, and societal or legal shifts.

Learning and development helps employees to reskill and upskill. Learning & Development
(L&D) is led by HR and good policies can be very helpful in advancing the organization towards
its long-term goals.

Many organizations have pre-defined budgets for L&D efforts. This budget is then distributed
amongst employees, with trainees, future leaders, and other high potentials often receiving more
training opportunities than others. Individuals may arrive at a company with vastly different
knowledge and experience. L&D provides employees with a way in which to bridge skill gaps
and develop into leaders. A well-known framework that connects performance management with
L&D activities is the 9-Box grid. Based on people’s performance and potential ratings, HR
department together with managers can advise different development plans.

4. Succession planning

Succession planning is the process of planning contingencies in case of key employees leaving
the company. If, for example, a crucial senior manager quits his/her job, having a replacement
ready will guarantee continuity and can save the company significant money.

Succession planning is often based on performance ratings and L&D efforts. This results in the
creation of a talent pipeline. This is a pool of candidates who are qualified and ready to fill
(senior) positions in case of someone leaving. Building and nurturing this pipeline is key to good
people management.

5. Compensation and benefits

Another one of the HR basics is compensation and benefits. Fair compensation is key in
motivating and retaining employees. One of the fundamentals of human resource management
concerning pay is ensuring equity and fairness.
Making the right offer of pay is a key part of attracting the best talent. This must be balanced
with the budget and profit margins of the company. HR should monitor pay increases, and set
standards of merit. HR may also carry out a pay audit on occasions.

Compensation comprises primary compensation and secondary compensation. Primary

compensation involves directly paid money for work, which often is a monthly salary and
sometimes performance-based pay.

Secondary benefits are all non-monetary rewards. This can include extra holidays, flexible
working times, day-care, pensions, a company car and laptop, and much more.

The goal here is to reward people in ways that motivate them.

6. Human Resource Information System

The last two HR basics are not HR practices but tools to do HR better. The first is the Human
Resource Information System, or HRIS. An HRIS supports all the cornerstones we discussed
above. For example, for recruitment and selection, HR professionals often use an Applicant
Tracking System, or ATS, to keep track of applicants and hires.

For performance management, a performance management system is used to keep track of

individual goals and put in performance ratings.

In L&D, a Learning Management System (LMS) is used for the distribution of content internally,
and other HR systems are used to keep track of budgets and training approvals.

Compensation specialists often use a payroll system, and there are also digital tools that enable
effective succession planning.

All these functionalities can often be done in one single system – the HRIS. Sometimes,
however, the management of these functionalities is split up into different HR systems.

The bottom line here is that there is a significant digital element to working in HR which is why
the HRIS is the final element when we talk about the HR basics.
7. HR data and analytics

The last of the HR fundamentals revolves around data and analytics. In the last half-decade, HR
has made a major leap towards becoming more data-driven.

The Human Resource Information Systems we just discussed is essentially a data-entry system.
The data in these systems can be used to make better and more informed decisions.

An easy way to keep track of critical data is through HR metrics or HR KPIs. These are specific
measurements that answer how a company is doing on a given measurement. This is referred to
as HR reporting.

This reporting focuses on the current and past state of the organization. Using HR analytics, HR
can also make predictions. Examples include workforce needs, employee turnover intention, the
impact of the (recruitment) candidate experience on customer satisfaction, and many others.

By actively measuring and looking at this data, HR can make more data-driven decisions. These
decisions are often more objective, which makes it easier to find management support for these
decisions.

Conclusion

You now know the 7 Human Resource Management basics. None of these HR fundamentals are
isolated. They all interact and affect each other. Think of these 7 basics as building blocks –
strong management of each fundamental element contributes to the strength of the next.
Collectively, these HR fundamentals enable a workforce not only to perform better but to
perform at its very best.

There is a lot more to learn when it comes to HR. For more advanced HR reading, check our
articles on HR best practices, talent management, employee experience, and HR innovation.

Functions of HR Manager
The lifecycle of an employee’s time in an organization has to be managed and this means that the
HR manager is responsible for the hiring, training, appraisals, payroll, and exit interviews.
Entry to Exit: Managing the Employee Lifecycle

If we take each of these activities in turn, we find that hiring is done in conjunction with the line
managers who put out their requirements periodically on the kind of recruits they want and the
number of recruits they want. Once the request reaches the HR manager, he or she has to scour
the market for potential recruits.

Usually, the HR manager does not personally do this and outsources this function to a placement
consultancy. The next step is the interview stage after the shortlists are done and this is an
activity where the HR manager either delegates the task of assessing the potential recruits to the
staffing team or does the job personally.

In large organizations like Fidelity and Microsoft, there are dedicated teams for each of these
activities and this is something we would be discussing in detail in subsequent articles. After the
interview stage is over, the important task of fixing the salary and benefits of the successful
candidates has to be done. This is usually the time when the HR manager plays a critical role as
he or she has to determine the fit between the role and the candidate and decide on the quantum
of salary and benefits that is appropriate to the role and after examining the budgets for the same.

The Appraisal Process and the Exit Interviews

After these activities, the HR manager is also involved in conducting the last stage of appraisals
or evaluating the appraisals. In recent years, the trend is more towards the latter where the HR
manager in charge of the business unit evaluates the appraisals instead of participating in the
process directly. This is done in a manner to determine the quantum of pay hike or bonuses
keeping in mind the same principles that were discussed in the hiring activity. What this means is
that the HR manager has to work closely with the line managers to get this done.

In many organizations, employees can take their grievances to the HR managers in case they are
not satisfied with their pay hikes or the quantum of benefits. They can also complain against
their managers in a confidential and private manner.
The last activity that the HR manager is involved in is conducting the exit interviews when
employees leave the organizations. This is usually done on the last day of the employee’s stay in
the organization and this process consist of a free and frank discussion on what the employee
feels about the organization and why he or she is leaving the organization.

The exit interviews offer valuable sources of insights into organizational behavior as the
employees can vent their feelings on what works and what does not work in organizations.

Manpower Planning:-

Manpower Planning which is also called as Human Resource Planning consists of putting right
number of people, right kind of people at the right place, right time, doing the right things for
which they are suited for the achievement of goals of the organization.

Human Resource Planning has got an important place in the arena of industrialization. Human
Resource Planning has to be a systems approach and is carried out in a set procedure. The
procedure is as follows:

1. Analysing the current manpower inventory

2. Making future manpower forecasts
3. Developing employment programmes
4. Design training programmes
 Steps in Manpower Planning

1. Analysing the current manpower inventory- Before a manager makes forecast of future
manpower, the current manpower status has to be analysed. For this the following things have to
be noted-
 Type of organization
 Number of departments
 Number and quantity of such departments
 Employees in these work units

Once these factors are registered by a manager, he goes for the future forecasting.

2. Making future manpower forecasts- Once the factors affecting the future manpower forecasts
are known, planning can be done for the future manpower requirements in several work units.

The Manpower forecasting techniques commonly employed by the organizations are as

follows:

i.Expert Forecasts: This includes informal decisions, formal expert surveys and Delphi technique.
ii. Trend Analysis: Manpower needs can be projected through extrapolation (projecting
past trends), indexation (using base year as basis), and statistical analysis (central
tendency measure).
iii. Work Load Analysis: It is dependent upon the nature of work load in a department, in a
branch or in a division.
iv. Work Force Analysis: Whenever production and time period has to be analysed, due
allowances have to be made for getting net manpower requirements.
v. Other methods: Several Mathematical models, with the aid of computers are used to
forecast manpower needs, like budget and planning analysis, regression, new venture
analysis.
3. Developing employment programmes- Once the current inventory is compared with future
forecasts, the employment programmes can be framed and developed accordingly, which will
include recruitment, selection procedures and placement plans.
4. Design training programmes- These will be based upon extent of diversification, expansion
plans, development programmes,etc. Training programmes depend upon the extent of
improvement in technology and advancement to take place. It is also done to improve upon the
skills, capabilities, knowledge of the workers.
Importance of Manpower Planning

1. Key to managerial functions- The four managerial functions, i.e., planning, organizing,
directing and controlling are based upon the manpower. Human resources help in the
implementation of all these managerial activities. Therefore, staffing becomes a key to all
managerial functions.
2. Efficient utilization- Efficient management of personnels becomes an important function in the
industrialization world of today. Seting of large scale enterprises require management of large
scale manpower. It can be effectively done through staffing function.
3. Motivation- Staffing function not only includes putting right men on right job, but it also
comprises of motivational programmes, i.e., incentive plans to be framed for further participation
and employment of employees in a concern. Therefore, all types of incentive plans becomes an
integral part of staffing function.
4. Better human relations- A concern can stabilize itself if human relations develop and are strong.
Human relations become strong trough effective control, clear communication, effective
supervision and leadership in a concern. Staffing function also looks after training and
development of the work force which leads to co-operation and better human relations.
5. Higher productivity- Productivity level increases when resources are utilized in best possible
manner. higher productivity is a result of minimum wastage of time, money, efforts and energies.
This is possible through the staffing and it's related activities ( Performance appraisal, training
and development, remuneration)

Need of Manpower Planning

Manpower Planning is a two-phased process because manpower planning not only analyses the
current human resources but also makes manpower forecasts and thereby draw employment
programmes. Manpower Planning is advantageous to firm in following manner:

1. Shortages and surpluses can be identified so that quick action can be taken wherever required.
2. All the recruitment and selection programmes are based on manpower planning.
3. It also helps to reduce the labour cost as excess staff can be identified and thereby overstaffing
can be avoided.
4. It also helps to identify the available talents in a concern and accordingly training programmes
can be chalked out to develop those talents.
 5. It helps in growth and diversification of business. Through manpower planning, human resources
can be readily available and they can be utilized in best manner.
6. It helps the organization to realize the importance of manpower management which ultimately
helps in the stability of a concern.

Recruitment :-

What is the recruitment meaning?

Recruitment is the process of actively seeking out, finding and hiring candidates for a
specific position or job. The recruitment definition includes the entire hiring process, from
inception to the individual recruit's integration into the company.

Types of Recruitment
Internal Recruitment - is a recruitment which takes place within the concern or
organization. Internal sources of recruitment are readily available to an organization. Internal
sources are primarily three - Transfers, promotions and Re-employment of ex-employees.

Internal recruitment may lead to increase in employee’s productivity as their motivation level
increases. It also saves time, money and efforts. But a drawback of internal recruitment is that it
refrains the organization from new blood. Also, not all the manpower requirements can be met
through internal recruitment. Hiring from outside has to be done.

Internal sources are primarily 3

a. Transfers
b. Promotions (through Internal Job Postings) and
c. Re-employment of ex-employees - Re-employment of ex-employees is one of the
internal sources of recruitment in which employees can be invited and appointed to fill
vacancies in the concern. There are situations when ex-employees provide unsolicited
applications also.

External Recruitment - External sources of recruitment have to be solicited from outside the
organization. External sources are external to a concern. But it involves lot of time and money.
The external sources of recruitment include - Employment at factory gate, advertisements,
employment exchanges, employment agencies, educational institutes, labour contractors,
recommendations etc.

a. Employment at Factory Level - This a source of external recruitment in which the

applications for vacancies are presented on bulletin boards outside the Factory or at the
Gate. This kind of recruitment is applicable generally where factory workers are to be
appointed. There are people who keep on soliciting jobs from one place to another. These
applicants are called as unsolicited applicants. These types of workers apply on their own
for their job. For this kind of recruitment workers have a tendency to shift from one
factory to another and therefore they are called as “badli” workers.
b. Advertisement - It is an external source which has got an important place in recruitment
procedure. The biggest advantage of advertisement is that it covers a wide area of market
and scattered applicants can get information from advertisements. Medium used is
Newspapers and Television.
c. Employment Exchanges - There are certain Employment exchanges which are run by
government. Most of the government undertakings and concerns employ people through
such exchanges. Now-a-days recruitment in government agencies has become
compulsory through employment exchange.
d. Employment Agencies - There are certain professional organizations which look
towards recruitment and employment of people, i.e. these private agencies run by private
individuals supply required manpower to needy concerns.
e. Educational Institutions - There are certain professional Institutions which serves as an
external source for recruiting fresh graduates from these institutes. This kind of
recruitment done through such educational institutions, is called as Campus Recruitment.
They have special recruitment cells which helps in providing jobs to fresh candidates.
f. Recommendations - There are certain people who have experience in a particular area.
They enjoy goodwill and a stand in the company. There are certain vacancies which are
filled by recommendations of such people. The biggest drawback of this source is that the
company has to rely totally on such people which can later on prove to be inefficient.
g. Labour Contractors - These are the specialist people who supply manpower to the
Factory or Manufacturing plants. Through these contractors, workers are appointed on
contract basis, i.e. for a particular time period. Under conditions when these contractors
leave the organization, such people who are appointed have to also leave the concern.
 Selection:-

Employee Selection Process

Employee Selection is the process of putting right men on right job. It is a procedure of matching
organizational requirements with the skills and qualifications of people. Effective selection can
be done only when there is effective matching. By selecting best candidate for the required job,
the organization will get quality performance of employees. Moreover, organization will face
less of absenteeism and employee turnover problems. By selecting right candidate for the
required job, organization will also save time and money. Proper screening of candidates takes
place during selection procedure. All the potential candidates who apply for the given job are
tested.

But selection must be differentiated from recruitment, though these are two phases of
employment process. Recruitment is considered to be a positive process as it motivates more of
candidates to apply for the job. It creates a pool of applicants. It is just sourcing of data. While
selection is a negative process as the inappropriate candidates are rejected here. Recruitment
precedes selection in staffing process. Selection involves choosing the best candidate with best
abilities, skills and knowledge for the required job.

The Employee selection Process takes place in following order-

1. Preliminary Interviews- It is used to eliminate those candidates who do not meet the
minimum eligiblity criteria laid down by the organization. The skills, academic and
family background, competencies and interests of the candidate are examined during
preliminary interview. Preliminary interviews are less formalized and planned than the
final interviews. The candidates are given a brief up about the company and the job
profile; and it is also examined how much the candidate knows about the company.
Preliminary interviews are also called screening interviews.
2. Application blanks- The candidates who clear the preliminary interview are required to
fill application blank. It contains data record of the candidates such as details about age,
qualifications, reason for leaving previous job, experience, etc.
 3. Written Tests- Various written tests conducted during selection procedure are aptitude
test, intelligence test, reasoning test, personality test, etc. These tests are used to
objectively assess the potential candidate. They should not be biased.
4. Employment Interviews- It is a one to one interaction between the interviewer and the
potential candidate. It is used to find whether the candidate is best suited for the required
job or not. But such interviews consume time and money both. Moreover the
competencies of the candidate cannot be judged. Such interviews may be biased at times.
Such interviews should be conducted properly. No distractions should be there in room.
There should be an honest communication between candidate and interviewer.
5. Medical examination- Medical tests are conducted to ensure physical fitness of the
potential employee. It will decrease chances of employee absenteeism.
6. Appointment Letter- A reference check is made about the candidate selected and then
finally he is appointed by giving a formal appointment letter.

Difference between Recruitment and Selection

Basis Recruitment Selection

Meaning It is an activity of establishing contact It is a process of picking up more

between employers and applicants. competent and suitable employees.

Objective It encourages large number of Candidates It attempts at rejecting unsuitable

for a job. candidates.

Process It is a simple process. It is a complicated process.

Hurdles The candidates have not to cross over Many hurdles have to be crossed.
many hurdles.

Approach It is a positive approach. It is a negative approach.

Sequence It proceeds selection. It follows recruitment.

Economy It is an economical method. It is an expensive method.

Time Less time is required. More time is required.

Consuming

What is Training and Development?

Training and Development is the continuous process of improving skills, gaining knowledge,
clarifying concepts and changing attitude through structured and planned education by which the
productivity and performance of the employees can be enhanced. Training and
Development emphasize on the improvement of the performance of individuals as well as groups
through a proper system within the organization which focuses on the skills, methodology and
content required to achieve the objective. Good & efficient training of employees helps in their
skills & knowledge development, which eventually helps a company improve its productivity
leading to overall growth.

Training is about knowing where you are in the present and after some time where will you reach
with your abilities. By training, people can learn new information, new methodology and refresh
their existing knowledge and skills. Due to this there is much improvement and adds up the
effectiveness at work. The motive behind giving the training is to create an impact that lasts
beyond the end time of the training itself and employee gets updated with the new phenomenon.
Training can be offered as skill development for individuals and groups.

Organizational Development is a process that “strives to build the capacity to achieve and sustain
a new desired state that benefits the organization or community and the world around them.”

Training and Development Process

Training and development is a continuous process as the skills, knowledge and quality of work
needs constant improvement. Since businesses are changing rapidly, it is critical that companies
focus on training their employees after constantly monitoring them & developing their overall
personality.

Steps for training and development processes are:

1. Determine the need of training and development for individuals or teams

First of all the need has to be seen for training and development. it has to align with the
company's goals and objectives. If a company is trying to start a new department or strengthen
existing sales team in new products, then an appropriate training is needed.

2. Establish specific objectives & goals which need to be achieved

The goals and objectives of the training and development have to be established. Whether the
goal is awareness about new products or even installation is required to be learnt.

3. Select the methods of training

Next, methods have to be defined. The training can be done as a :

a. Classroom Training

b. Online Self paced courses

c. Course with certification

d. Instructor led online training

4. Conduct and implement the programs for employees

After the plan and methods are finalized, the training and development programs have to be
executed where courses, instructions are taught to the employees, partners or vendors.

5. Evaluate the output and performance post the training and development sessions

Training and Development is incomplete without proper monitoring. Monitoring can be done
through evaluation of the instructor as well as attendees. Instructor evaluation can be done
through feedback or ratings but attendees can be evaluated through internal or external
certifications or scores.

6. Keep monitoring and evaluating the performances and again see if more training is required

Based on the evaluation results in the previous step, management needs to ascertain that if the
training and development program was sufficient for now or more training and enablement
would be required. Also, if future trainings are to be planned.

Importance of Training and Development

For companies to keep improving, it is important for organizations to have continuous training
and development programs for their employees. Competition and the business environment
keeps changing, and hence it is critical to keep learning and pick up new skills. The importance
of training and development is as follows:

1, Optimum utilization of resources

2. Development of skills like time management, leadership, team management etc.

3. To increase the performance, productivity and motivation

4. To imbibe the team spirit

5. For improvement of organization culture

6. To improve quality

7. To increase profitability and bottom line by acquiring new skills

8. Improving brand image by having well trained employees

Relation and Difference between Training and Development

There is a relation between training and development, and there is clear difference between the
two based on goals to be achieved. Development is made to answer the training problems:

TRAINING DEVELOPMENT

Training is meant for operatives Development is meant for executives

It is reactive process It is pro- active process

AIM: To develop additional skills AIM: To develop the total personality

It is short term process It is continuous process

OBJECTIVE: To meet the present need of an OBJECTIVE: To meet the future need of an
employee employee

Initiative is taken by the management Initiative is taken by an individual.

Types of training and development :-

Training and development initiatives are educational activities within an organization that are
designed to improve the job performance of an individual or group. These programs typically
involve advancing a worker’s knowledge and skill sets and instilling greater motivation to
enhance job performance.
Training programs can be created independently or with a learning administration system, with
the goal of employee long-term development. Common training practices include orientations,
classroom lectures, case studies, role playing, simulations and computer-based training,
including e-learning.

Sometimes referred to as Human Resource Development (HRD), most employee training and
development efforts are driven by an organization’s HRD function. These efforts are roughly
divided into two types of programs:

Employee Training and Development

A strategic tool for improving business outcomes by implementing internal educational programs
that advance employee growth and retention.

Management Training and Development

The practice of growing employees into managers and managers into effective leaders by the
ongoing enhancement of certain knowledge, skills and abilities.

Need for Training and Development

Training and development of employees is a costly activity as it requires a lot quality inputs from
trainers as well as employees. But it is essential that the company revises its goals and
efficiencies with the changing environment. Here are a few critical reasons why the company
endorses training and development sessions.

1. Improvement

When management thinks that there is a need to improve the performances of employees

2. Benchmarking

To set up the benchmark of improvement so far in the performance improvement effort

3. Specific Role Requirement

To train about the specific job responsibility and skills like communication management, team
management etc.

4. Testing

To test the new methodology for increasing the productivity

Advantages of training and development

Training and development has a cost attached to it. However, since it is beneficial for companies
in the long run, they ensure employees are trained regularly. Some advantages are:

1. Helps employees develop new skills and increases their knowledge.

2. Improves efficiency and productivity of the individuals as well as the teams.

3. Proper training and development can remove bottle-necks in operations.

4. New & improved job positions can be created to make the organization leaner.

5. Keeps employees motivated and refreshes their goals, ambitions and contribution levels.

Disadvantages of training and development

Even though there are several advantages, some drawbacks of training and development are
mentioned below:

1. It is an expensive process which includes arranging the correct trainers and engaging
employees for non-revenue activities.

2. There is a risk that after the training and development session, the employee can quit the job.
Training and Development Example

Training and Development can be setup in any organization. The focus of the organization
should be to train employees on two aspects

1. Job Related Skills

2. Soft Skills

These days there are dedicated portals and self learning courses for employees to enroll and take
them as per their needs. A dedicated training department is setup in the organizations these days
to train the employees on relevant skills.

E.g. Trainings on communication skills, project management skills, AI/ML and other emerging
technologies and skills are priority of such departments.

also these departments have the following responsibilities like:

1. Tie up with training partners or create internal courses and study material

2. Create a simple portal and classroom training system for employees on site or remotely

3. System to track learning and design path for specific roles e.g. managers, sales team etc.

4. Evaluate employees on the trainings completed and reward them accordingly

Training and Development should be part of culture of any good organization and should be
taken at a strategic level. In today's competitive landscape, proper training and development
programs can go a long way in having the competitive edge.
Performance Appraisal :-

What Is a Performance Appraisal?

A performance appraisal is a systematic and periodic process of measuring an individual’s work

performance against the established requirements of the job. It’s a subjective evaluation of the
employee’s strengths and weaknesses, relative worth to the organization, and future development
potential.

Performance appraisals are also called performance evaluations, performance reviews,

development discussions, or employee appraisals.

If you conduct a successful performance appraisal, you can get a handle on what the employee
does best and identify areas that require improvement. Appraisals also come in handy for
deciding how to fill new positions in the company structure with existing employees.
What Is a Performance Appraisal: The Types of
Performance Appraisals

Performance appraisals can be broken down into four distinct significant types:

1. The 360-Degree Appraisal. The manager gathers information on the employee’s performance,
typically by questionnaire, from supervisors, co-workers, group members, and self-assessment.
2. Negotiated Appraisal. This type of appraisal uses a mediator to help evaluate the employee’s
performance, with a greater emphasis on the better parts of the employee’s performance.
3. Peer Assessment. The team members, workgroup, and co-workers are responsible for rating the
employee’s performance.
4. Self-Assessment. The employees rate themselves in categories such as work behavior, attitude,
and job performance.

Note that some organizations use several appraisal types during the same review. For instance, a
manager could consult with the employee’s peers and assign a self-assessment to the employee.
It doesn’t have to be a case of either/or.

What Is a Performance Appraisal: The Methods of

Performance Appraisals

Performance appraisals come in many forms. Managers and human resources staff responsible
for these appraisals need to choose the best methods based on the size of their organization and
what sorts of responsibilities the employees fulfill.

Methods of performance appraisals include:

 720-Degree feedback: You could say that this method doubles what you would get from the 360-
degree feedback! The 720-degree feedback method collects information not only from within the
organization but also from the outside, from customers, investors, suppliers, and other financial-
related groups.
 The Assessment Center Method: This method consists of exercises conducted at the company's
designated assessment center, including computer simulations, discussions, role-playing, and
other methods. Employees are evaluated based on communication skills, confidence, emotional
 intelligence, mental alertness, and administrative abilities. The rater observes the proceedings and
then evaluates the employee's performance at the end.
 Behaviorally Anchored Rating Scale (BARS): This appraisal measures the employee’s
performance by comparing it with specific established behavior examples. Each example has a
rating to help collect the data.
 Checklist Method: This simple method consists of a checklist with a series of questions that have
yes/no answers for different traits.
 Critical Incidents Method: Critical incidents could be good or bad. In either case, the supervisor
takes the employee’s critical behavior into account.
 Customer/Client Reviews: This method fits best for employees who offer goods and services to
customers. The manager asks clients and customers for feedback, especially how they perceive
the employee and, by extension, the business.
 Field Review Method: An HR department or corporate office representative conducts the
employee's performance evaluation.
 Forced Choice Method: This method is usually a series of prepared True/False questions.
 General Performance Appraisal: This method involves continuous interaction between the
manager and the employee, including setting goals and seeing how they are met.
 Human Resource Accounting Method: Alternately called the “accounting method” or “cost
accounting method,” this method looks at the monetary value the employee brings to the
company. It also includes the company’s cost to retain the employee.
 Management By Objective (MBO): This process involves the employee and manager working as
a team to identify goals for the former to work on. Once the goals are established, both parties
discuss the progress the employee is making to meet those goals. This process concludes with the
manager evaluating whether the employee achieved the goal.
 Performance Tests and Observations: This method consists of an oral test that measures
employees' skills and knowledge in their respective fields. Sometimes, the tester poses a
challenge to the employee and has them demonstrate their skills in solving the problem.
 Project Evaluation Review: This method involves appraising team members at the end of every
project, not the end of the business year.
 Ratings Scales: These ratings measure dependability, initiative, attitude, etc., ranging from
Excellent to Poor or some similar scale. These results are used to calculate the employee's overall
performance.

What Are the Objectives of a Performance Appraisal?

Although we've already mentioned some of the objectives and methods of performance
appraisals, let's clearly delineate them in their easy-to-understand section. First, a performance
appraisal aims to:

 Provide helpful information to help make decisions regarding transfers, promotions, terminations,
etc.
 Supply the necessary data to identify employee training and development program requirements.
 Help make confirmation/acceptance decisions regarding employees who have completed a
probationary period.
 Help make decisions regarding raising an employee's salary, offering incentives, or changing
variable pay.
 Clarify expectations and facilitate communication between managers and subordinates.
 Help employees realize their whole potential performance level.
 Collect relevant employee data and keep the records for various future organizational purposes.

What Is a Performance Appraisal: The Importance of

Performance Appraisals

Organizations need performance appraisals to accurately gauge every employee's performance

and confirm that they are working in the right area and doing the job they were hired for. In
addition, good performance appraisals increase efficiency and help cut costs.

Regular performance appraisals also help assure that credit is given where it’s due, which helps
keep morale high.

The Benefits of Performance Appraisals

Here is a list of advantages that performance appraisals bring to the table:

 They help supervisors plan promotions for solid, performing employees and dismiss inefficient
workers.
 They help the organization decide how to compensate the employees best. Also, companies can
use performance appraisal records to help determine extra benefits and allowances.
 They can call attention to employee weaknesses and help set up training programs in-house.
  The performance appraisals can help make changes in the selection process which inevitably help
hire better employees.
 Performance reviews effectively communicate the employee's performance status and provide a
great way to give feedback on how the employee is doing at their job.
 Performance evaluations are a great motivational tool, providing a snapshot of the employee's
efficiency. This snapshot, in turn, can incentivize the individual to improve their performance.

Suggested Tips and Techniques for Performance Appraisals

Here are three valuable tips and techniques to maximize the effectiveness of your performance
appeals.

 Document your appraisal sessions: Document your employee performance appraisal meetings and
store the notes in your go-to database system. By documenting and keeping these notes, you will
have easy access when you need them to make decisions about an employee or conduct follow-up
meetings.
 Use outlines: Create an outline template to be used for all your company’s performance
appraisals. This practice promotes a consistent company-wide review structure and helps
employees better prepare for the appraisal meeting.
 Check in with your employees more frequently: Nothing is more dispiriting and frustrating for an
employee who performs their jobs in a particular way, only to be told at the end of the year that
they’ve been doing it all wrong and it will affect their performance reviews. Teams need to know
if they’re doing well and on the right track, so consider conducting performance appraisals at
shorter intervals.

Job Evaluation and Merit Rating

JOB EVALUATION:-

Definition :-
Job evaluation is the process of comparing jobs with other jobs in terms of wages
a worker should be paid for performing the task. Thus, it is a rating of job. It can
also be defined
as “the procedure to determine the relative values of the job in a plant and to
determine the
basic wages for the job”.

Objectives:-
1. Its main object is to estimate the correct wages for the work performed.
2. It is means to reduce wage imbalance in the factories.
3. It can be used to resolve wage disputes.
4. It helps in standardization.
5. It helps to establish a method for future promotion of workers.

Procedure of Job Evaluation:-

1. Identify the jobs to be evaluated.
2. Describe and analyze the requirements of the job. Write down the skill statement
and the responsibilities involved.
3. Compare the job with the pre-identified key jobs and decide its level or value
(with
respect to key jobs).
4. Use the information supplied by (3) above to arrive at a suitable wage structure
for
the job.

Methods for Job Evaluation:-

There are non-analytical and analytical job evaluation methods that are employed
by
the organizations to realize the worth of a set of jobs.
Non-analytical Job Evaluation Methods:
1. Ranking Method:
The different jobs, depending upon their requirements, responsibilities, involved
and
their importance to the organization, are ranked, graded or placed from top to
bottom. It is
very simple method and results can be obtained very quickly. But this method does
not give
actual information that how much one job differs from other.

2. Classification or grading Method:

Jobs are classified or graded in groups or levels of equal skill, difficulty,
responsibility,
importance and other requirements. It may be a production job, a sales job or an
office job;
each job family can be broken into a number of grades. For example, office job
may be
classified into six grades from grade A to grade F. Grade A involves simple tasks
like sorting
whereas grade F deals with those tasks which require high responsibility and
judgment.
This method is simple and can be easily mastered and administered. But it is not
useful for large organization. It is cumbersome and time consumable.

Analytical Job Evaluation Methods:

1. Factor comparison Method:
Under this method, the job is evaluated, and the ranks are given on the basis of a
series of factors Viz. Mental effort, physical effort, skills required supervisory
responsibilities,
working conditions, and other relevant factors. These factors are assumed to be
constant for each
set of jobs. Thus, each job is compared against each other on this basis and is
ranked
accordingly.
The advantage of this method is that it is consistent and less subjective, thus
appreciable by all. But however it is the most complex and an expensive method.

2. Point-Ranking Method:
Under this method, each job’s key factor is identified and then the sub factors are
determined. These sub-factors are then assigned the points by its importance. For
example, the
key factor to perform a job is skills, and then it can be further classified into sub-
factors such as
training required, communication skills, social skills, persuasion skills, etc.
The point ranking method is less subjective and is an error free as the rater sees the
job from all the perspectives. But however it is a complex method and is time-
consuming since
the points and wage scale has to be decided for each factor and the sub factors.

MERIT RATING
Definition:-
Merit Rating is a systematic and orderly approach to assess the relative worth of an
employee working in an organization in terms of his job performance, integrity,
leadership,
intelligence, behavior, etc.
Merit Rating is commonly referred to as Employee Rating, Employee Appraisal or
Staff Reporting.

Objectives:-
1. It is commonly used to justify wage increases.
2. This is one of the method for deciding whether employees engaged on
production
are to be confirmed or not.
3. It helps the supervisor in deciding, which person is to be given which task.
4. It helps in deciding that which employee deserves promotion.
5. It can be used as a scale by the selection office to judge whether their selection
are
successful.
6. It protects the employee from discrimination, favoritisms etc.

Methods for Merit Rating:-

1. Straight Ranking Method:
In this method each worker is ranked in his group against each other. Comparison
between employees is made, ranking them from poorest to best one.
2. Description or Essay Type Merit Rating:
Generally this type of merit rating is used for the person of supervisory cadre. In
this,
incharge writes an essay on his subordinates. The essay must cover the following
factors.
(a) Relation with subordinates and fellow persons.
(b) Job knowledge and capacity to understand.
(c) Knowledge about industrial engineering aspects.
(d) Knowledge about safety precautions and first aid.
(e) Organizations and planning ability.
(f) Explanation power
(g) Physical aptitude.

Difference Between Merit Rating and Job Evaluation

1. Rating or job/Employees:

Job evaluation is related with the rating of the job whereas merit rating is a systematic process or
evaluation of the capacities and abilities of the man doing the job.

2. Purpose:

The purpose of the job evaluation is to fix wages for the jobs by considering certain factors such
as skill, responsibility etc. In case of merit rating, the purpose is to evaluate the employee for the
purpose of promotion, training, pay increase or incentives etc.

3. Job difference/Individual differences:

Job evaluation considers the differences in jobs whereas merit rating recognizes the individual
differences.

4. Objectives/Subjective Qualities:
The type of factors to be considered are objective in case of job evaluation, whereas in case of
merit rating subjective qualities are considered.

5. Performance of individual versus job:

Job evaluation becomes the basis of determining wages whereas merit rating is undertaken to
find out the efficiency of the individual for doing specific jobs.

6. Test of worth versus merit:

In job evaluation, an attempt is made to know the worth of a job in terms of certain factors such
as responsibility and effort (mental as well as physical). Merit rating identifies the capacity and
capability of an individual for doing specific job.

7. Uses:

Job evaluation is meant for determining the wages on an employee. On the other hand, merit
rating is utilized for placement and training etc.