1

MANPOWER TRAINING & DEVELOPMENT

UNIT OBJECTIVES
1. MANPOWER TRAINING AND DEVELOPMENT.
2. PERFORMANCE APPRAISAL. *
3. POTENTIAL EVALUATION.
4. *JOB EVALUATION.
5. WAGE DETERMINATION.*

LEARNING OBJECTIVES
1. INTRO.
2. DEFINING TRAINING AND DEVELOPMENT.
3. NEED FOR AND BENEFITS OF TRAINING.
4. METHODS OF DETERMING TRAINING NEEDS.
5. TRAINING OBJECTIVES.
6. FORMULATION OF TRAINING POLICY.
7. PRINCIPLE OF AN EFFECTIVE TRAINING PROGRAM.
8. TRAINING METHODS.
9. PRINCIPLES.
10. MANAGEMENT DEVELOPMENT.
11. OBJECTIVE OF MANAGEMENT DEVELOPMENT.
12. TECHNIQUES OF MANAGEMENT DEVELOPMENT.
13. WHAT IS PERFORMANCE APPRAISAL?
14. JOB PERFORMANCE & PERFORMANCE MEASUREMENT.
15. VALIDITY & RELIABILITY OF PERFORMANCE APPRAISAL.
16. METHODS OF PERFORMANCE APPRAISAL.
17. MAKING PA MORE EFFECTIVE.
18. THE MEANING OF JOB DISCRIPTION, JOB ANALYSIS & JOB EVALUATION.
19. FACTORS AFFECTING JOB VALUES.
20. METHODS OF JOB EVALUATION.
21. ESTABLING PAY STRUCTURE.
22. INCENTIVE COMPENSATION PLAN.
23. EXECUTIVE COMPENSATION.
24. CONCLUSION.
25. REVIEW QUESTIONS.
26. CASE STUDY.

INTRO.
1. We have seen how a newly ‘inducted’ employee is introduced to his fellow workers, his
supervisor, the work of his dept, its relations to other dept and its place in the whole org to
the org objective, philosophy, practices & so on. The new employee then has to learn to
work most efficiently & effectively. This is through a well-thought out & planned training
program. Training is required at every stage when a person is moved from one assignment to
another of a different nature.
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DEFINING TRAINING & DEVELOPMENT

2. Training & Development program are necessary in any org for improving the quality of work
of employees at all levels, particularly in a world of fast changing technology, changing values
& environment.
3. The purpose of both is similar.
4. The main difference is in respect to the level of employees for whom these are meant for
and the content & techniques employed.
5. “Training.” Training is a short-term process utilizing a systematic and org process by which
a non-managerial person acquires technical knowledge and skills for a definite purpose.” It
refers to instructions. It is designed primarily for non-managers. It is for short duration for
a specific job-related purpose.
6. DEVELOPMENT. Development is a long-term education process utilizing a systematic and
org process by which managerial persons, get conceptual and theoretical knowledge. In
other words it refers not to technical knowledge or skills in operation but to philosophical &
theoretical concepts. It involves broader education & its purpose is long-term development.
7. BENEFITS OF TRAINING. A well planned & executed training program should result in the
following benefits:-
a) Reduction in Wastage & spoilage.
b) Improvement in method of work.
c) Reduction in learning time.
d) Reduction in supervising burden.
e) Reduction in machine breakage & maintenance costs.
f) Reduction in accident rate.
g) Improvement in quality of products.
h) Improvement in production rate.
i) Improvement in morale & reduction in grievances.
j) Improvement in efficiency & production.
k) Reduction in manpower obsolescence.
l) Enabling the org to provide increased financial incentives, opportunity for internal
promotion & raising of pay rates.
m) Personal growth,
n) Wider awareness among participants enlarged skill.

8. METHODS OF DETERMINIG TRAINING NEEDS.

Total need can be determined by analyzing the sit in r/o of each skill & each member of work
force. This to determine training needs one would have to analyse the following :-
a) Job Requirement.
b) Employees present job skills.
c) Training Needs.
This can be does in the following ways:-
a) Analysis of an activity.
b) Analysis of Problems.
c) Analysis of Behavior.
d) Analysis of an Org.
e) Appraisal of Performance.
f) Brainstorming.
g) Buzzing.
h) Card Sorting.
i) Committee.
j) Comparison.
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k) Confidence.
l) Consultants.
m) Counseling.
n) In-basket.
o) Incident Pattern.
p) Informal Talks.
q) Interviews
r) Observations
s) Problem Clinic.
t) Research.
u) Role-playing.
v) Self-Analysis.
w) Skill-Inventory.
x) Slip Writing.
y) Studies.
z) Survey.
aa) Tests.
bb) Task Force.
cc) Questionnaires.
dd) Workshop.

9. TRAINING OBJECTIVES
a) To prepare employees for the job meant for them while in first appointment on
training, or on promotion & impart to them the required skill and knowledge.
b) To assist the employees to function more effectively in their present position by
exposing them to the latest concepts, information techniques & developing the skills
that would be required in their particular jobs.
c) To build a second line of competent officers and prepare them to occupy more
responsible positions.

10. PRINCIPLE OF EFFECTIVE TRAINING PROGRAM.

a) The objectives & scope of a training plan should be defined before its development is begun
in order to provide a basis for common agreement & cooperative action.
b) The techniques and processes of a training program should be related directly to the needs &
objectives of the org.
c) To be effective the training must use tested principle of learning.
d) Training should be conducted in the actual job environment to the maximum possible extent.
9. TRAINING METHODS. Training for different categories of employees:-
a) Unskilled Worker.
b) Semi-skilled Worker.
c) Skilled Worker.
d) Salesmen.
e) Supervisory Staff.
10. All training methods can be broadly classified into TWO:-
a) On the job training.
b) Off the job training.
11. ON THE JOB TRAINING. An employee is placed in a new job and is told how it is to be
performed. It aims at developing skills and habits consistent with the existing practices of an org and
by orienting him to his immediate problems. Coaching & instructions is done by skilled workers,
supervisors, special training instructors. A variety of training aids & techniques are used.
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b) VESTIBULE TRAINING OR TRAINING CENTRE TRAINING. It involves class-room training imparted

with the help of equipment and machines identified to those in use at the place of work. Theoretical
training is given in the classroom & practical conducted on the production line. It is often used to
train clerks, Bank tellers, inspectors, machine operators, typists etc.
c) Simulation. It is an extension of vestibule training. The trainee works on ‘closely duplicated real job
conditions.’ This is essential when on-the-job practice is expensive, might result in serious injury, a
costly error, Destruction of properly e.g. Pilots Training.
d) Demo & Exercise. Here the trainer describes and Demonstrates how to do a certain work. He
performs the activity himself going through a step by step explanation of the ‘why’, ‘how’ ‘what’ he is
doing.
e) Apprenticeship. A major part of training is spent on the on-the job productive work. Each
apprentice is given a program of assignments according to a predetermined schedule which provides
for efficient training in trade skills appropriate for- crafts-trades & technical areas.
12. OFF-THE-JOB OR CLASS ROOM METHODS. Training on the job is not a part of everyday activity.
Location of training may be a company class-room, educational institutions or an association which is
not a part of the company. Methods include the followings:-
a) Lectures.
b) Conference.
c) Seminars/ Team Discussion.
d) Case Discussion.
e) Role Playing.
f) Programmed Instruction.

a) Lectures. Formally organized talks by an instructor on specific topics. This method is useful
when philosophy, concepts, attitudes, theories, problems have to be discussed.
b) Conference Method. Held as per an org plan. Mutual problems are discussed & participants
pool their ideas and experience in attempting to arrive at better methods of dealing with
these problems. Members teach & learn from each other. Conference may include Buzz
sessions which divide conference into small groups of 4-5 for intensive discussion. This
method is suitable for a group of 20-30 persons only.
c) Seminar or Team Discussion. The group learns through discussion of a paper on a selected
subject. The paper is written by one or more trainees.
d) Case Discussion. A real / Hypothetical business problem demanding solution is presented to
the group & members are trained to identify the problems present & suggest various
alternatives for tackling them analyse each one of these find out their component suitability
& decide for themselves the best solution. This method promotes analytical thinking.
Extensively used in professional school of law & Mgt & in supervisory & executive training
program in industry.
e) ROLE PLAYING. Also called ‘Role Reviewing’ or ‘Socio-Drama’ or ‘psychological Drama’.
Here trainees are given out a role to play as in a stages drama. No written lines no rehearsals.
Players quickly respond to ever changing situation.
13. MANAGMENET DEVELOPMENT. Is a systematic process of training & growth by which
managerial persons gain and supply skills, knowledge, attitudes & insights to manage the work in
their org effectively and efficiently.
14. Objectives of Management Developments.
a) Assure the org of availability of required numbers of managers with the required skills to
meet the present and anticipated future needs of the business.
b) To encourage managers to grow as person & in their capacity to handle greater
responsibility.
c) To improve the performance of managers throughout their career.
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15. A Dasgupta in “Business & Mgt in India” has given objectives of development of managerial
persons for various level of mgt as under:-
a) Top Mgt.
i. To improve through process and analytical ability in order to uncover and examine
problems and take decision in the best interest of the country & Org.
ii. To broaden the outlook of the executive role, position & responsibilities.
iii. To think through the problems which may confront the organization.
iv. To understand, economic, technical & institutional aspects in order to solve business
problems.
v. To acquire knowledge about problems of human relations.
(B) MIDDLE MGT.
i. To establish a clear picture of executive functions & response.
ii. To bring about an awareness of the broad aspects of mgt problems.
iii. To develop the ability to analyze problems and to take appropriate action.
iv. To develop familiarity with managerial uses of fin accounting.
v. To inculcate knowledge of human motivation & human relationships.
vi. To develop responsible leadership.
(C) MIDDLE FUNCTIONAL EXECUTIVE & SPECIALISTS.
i. To increase knowledge of business functions & operations in specific fields in marketing,
productions, finance, personnel.
ii. To increase proficiency in mgt techniques, work study, inventory control, operation research,
quality control.
iii. To simulate creative thinking.
iv. To understand the functions performed in a company.
v. To understood Human Relations problems.
vi. To develop ability to analyse the problems.

16. TECHNIQUES OF MANAGEMENT DEVELOPMENT.

a) Planned Progression.
b) Job Rotation.
c) Creation of ‘Assistant-to’ Position.
d) Under-study.
e) Coaching-Counseling.
f) Temporary Promotions.
g) Committees & Jr. Bodies of managements.
h) Syndicates.
i) Case Discussion.
j) Incident Process.
k) Role Playing.
l) Sensitivity Training.
m) Management / Business Games.
n) In-Basket exercise.
o) Transactional Analysis.

17. WHAT IS PERFORMANCE APPRAISAL?

‘Performance appraisal (PA) is the process through which an individual employee’s behavior and
accomplishments for a fixed time period are measured & evaluated.’ The main purpose of
measuring and evaluating is to assess the worth or value.
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18. ‘PERFORMANCE APPRAISAL. Is systematic & objective way of judging the relative worth of an
employee in performing his task?” Performance appraisal is thus the process of reviewing an
individual’s performance and program, in a job and assessing his potential for future improvement.
It is a systematic method of obtaining, analyzing and recording information about a person that is
needed:-
a) For the efficient Mgt of Business / Org.
b) By the manager to help him to improve the jobholders performance & plan his career.
c) By the jobholder to assist him to evaluate his own performance & develop himself.
19. PA- FROM AN ORG PERSPECTIVE. PA is led by the personnel function. PA can be viewed as 6-step
sequence as shown in Fig-1. The sequence is significant because it begins & ends with the personnel
functions & is ultimately justified by the value of PA in helping to make several administrative
decisions.
20. PA FROM A MANAGERIALS VIEW POINT. The manager shoulders the responsibility for PA. The
manager defines the demands of the employee’s position & translates these into some expectations
for the employees i.e., “I expect you to reduce absentee sum by 20%. How the employee actually
performance is observed over a fixed time-period resulting in a evaluation form. Evaluation must be
shared with a subordinate. The process ends with recommendation from you to Higher Management
for one or more administrative decisions regarding the employee as under:-
i. Promotion.
ii. Salary Increase.
iii. Training.
iv. Any Other.

21. PROBLEM OF VALIDITY & RELIABILITY. PA is intended to evaluate the ‘Performance & Potential’
of employees. Still they may not be valid indicator of what they are intended to assess because of a
Variety of Limitations on their use:-
a) The ‘Halo’ effect. The tendency of the evaluation to base assessments of all the individual
characteristics on the rater’s overall impression of the person being evaluated is ‘Halo Effect’.
The halo effect is the tendency to generalize from a predetermine overall impression for the
appraisal of specific traits and characteristics.
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i. Bias. Appraisers Bias colors the entire appraisal base on religion, political, social,
interpersonal conflicts.
ii. Inflation of Ratings. There is a tendency to give rater higher ratings.
iii. Central Tendency. Tendency to avoid extreme ratings on both ends of scale.
iv. Strictness Error. When rater artificially assigns all or certain groups of employee low
ratings.

22. METHODS OF APPRAISAL.

a) Global Essays & Ratings.
b) Trait-rating scales.
c) Ranking Process.
d) Critical Incident Methods.
e) Behavioral based scales & BARS.
Unfortunately there are no accepted standards to determine which method of evaluation produces
best results. A range of methods & techniques are used. There are no commonly accepted norms.
a) Global Essay & Ratings. In a typical Global Rating approach the rater is asked to provide an
overall estimate of performance without making distinction among performance decisions.
“What is your overall evaluation of this individual’s performance for the past year”?
b) TRAIT-RATING-SCALES. Usually comprise a list of personality-traits. You as a rater will be
required to indicate in a numerical scale the degree to which the individuals being appraised
possesses these traits. The trait rating approach is multidimensional is usually conducted to
generate a limited number of traits appearing in the PA form. However since they lack
specific job-related definitions, trade rating scales are extremely vulnerable to errors such as
halo, strictness, central tendency & that severally affect the validity & reliability of the
ratings.
c) Ranking Process. Top 1%, Top3%, Top5%, Bottom 30%, marginal & unsatisfactory.
d) Critical Incident Methods. You must document the positive & negative behavior events that
have occurred during a given performance period. You can revise performance as services of
+Ve and –Ve behavior related to a job. This approach requires a great deal of inference on
your part as a rater to determine which incident are critical to the job performance.
e) Behaviorally based scales & BARS. Behaviorally Anchored Rating Scales (BARS) are
description of various degrees of behavior with regard to a specific performance dimension.
The behavior specifically defines and provides you the anchors for the rating scales. Although
these scales represents job relevant dimensions of performances, they still page problems
for you in determining which actually observed behavior match with specifically anchored
performance scales. Despite this, BARS are a significant improvement, since they require less
inference on your part as a rater than traditional trait-rating approach.
f) Objective & Goal-setting Procedure. There focus on outcomes. An employee is assessed on
the basis of what he produces as a result of job-performance. Goals and standard are set
evaluation is based on whether the goal has been met in relation to predetermined
standards.
23.MAKING PA MORE EFFECTIVE. If PA is to be more successful, they should:-

a) Based on performance standards.

b) Result in a face-to-face performance review and
c) Based upon multiple assignments

a)Results Oriented Scheme. These embody the principle developed by DMC Gregory &
the MBO philosophy based on Peter Drucker’s writings. Should be shifted from appraisal
to analysis MC Gregor suggested that the emphasis. Should be shifted from appraisal to
analysis. This implies a more +Ve approach. The subordinate is no longer being examined
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by the supervisor to determine the formers weakness but the subordinate is analyzing
himself-his weakness, strategies and potentials. He becomes an active not passive agent.
The aim is to relate assessments to a review of performance against specific training and
standard of performance agreed jointly by the supervisor & subordinate.

Merits:-
i. Subordinates make his own evaluation.
ii. Once job a manager is shifted from criticizing the subordinate to helping
him improve his performance.
iii. It is consistent with the belief that people work better when they have
definite I jobs they must meet in specified period.
PERFORMANCE REVIEWS. Meaningful exercise in appraisal of potential the purpose of Performance
Review if they are to achieve their prime purpose of helping people to improve and develop. Unless
carefully & sensitively handled, your subordinates become more dissatisfied after your counseling
than they were before.
i. POTENTIAL REVIEWS. A meaningful exercise in appraisal should include a review and
appraisal potential. The review of potential is concerned with forecasting the direction in
which the subordinate’s career can & should go and the rate at which he is expected to
develop. The assessment of potential requires an analysis of existing skills, qualities and
how they can be developed to the mutual advantage of the company and the employee.
There is also an important counseling aspect to the review of potential which consists of
discussion with the individual about his aspirations and how these can be best matched to
the future, increase for him. These discussions are a vital part of the procedure because
they can provide you with information about your employee’s feelings on the subject which
may have a direct impact or plans for development.
24. USING MULTIPLE APPRAISALS. To reduce the problem of validity & Reliability, it may be more
useful to use multiple ratings than single evaluation. While the rating of one supervisor may not be
valid, the overall patterns of several ratings do provide an indication of overall performance and
potential for development.
25. PEER. Ratings, self-ratings and subordinate ratings are various attempts that have been made
recently to improve the PA systems.
JOB DESCRIPTION, ANALYSIS & EVALUATION
26. Job Description. Job-Description is a broad statement of the purpose, duties & responsibilities of
a job or position. A job description should be based on a detailed job analysis.
27. Job Analysis. Job analysis refers to the process of examining a job to identify its component parts
and circumstances in which it is performed. The central concern is to treat jobs as units of org. The
purpose is to gather, analyze and utilize information about jobs. Job analysis is the foundation for job
evaluation.
28. Job evaluation and Pay structure. Job evaluation is the process of establishing the value of jobs
in a job hierarchy. Job values may be determined by negotiation or fixed on the basis of broad
assumptions about market rates and internal relativities. Job evaluation is a comparative process.
Through the process of job evaluation one is able to compare jobs by using common criteria to
define the relationship of one job to another. This gives us the basis for grading jobs and developing a
pay structure one has to remember that job evaluation is about relationship and not absolutes.
Therefore job evaluation cannot be the sole determining factor for deciding pay structures. Jobs have
intrinsic value-the laborer is worthy of his hire. What is the value in monetary terms unless we take
into account a) The pressure of Supplies & Demand b) Internal Differentials c) feelings of equity?
29. FACTOR AFFECTING JOB VALUES.
a) Market rates.
b) Negotiated Pay Scales.
c) Internal Differentials.
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d) Equity.
i) Market Rates. A job is worth what the market says it is worth. You will have difficulty in
obtaining or retaining people if their pay are not kept in line with those prevailing in the local
& National labour markets from which you recruit your employees. Some specialized jobs
within the company will be governed more by internal than external comparison. Market
rates provide data on differentials between jobs as well as actual levels pay.
ii) Negotiated Pay Scale. Many pay structures are built around pay scales negotiated either at
plant / National levels. The negotiated rates will be influenced by market rates; the relative
standards of employees of unions, the economic sit, legislation & govt anti-inflationary pay
regulations. Often one pays more than the locally or nationally negotiated minimum just to
keep ahead of market rates or in response to union pressures.
iii) Internal Relativities & Equity. Pay structures are expected to reflect differences in the relative
skill and responsibility of jobs. They should aim to achieve equity in the sense that
individuals should feel that their rewards are in balance both with their own output in the
shape of efforts, skills and contribution, and with the rewards received by others in relation
to their output.
iv) Equity is the feeling that justice & fairness are only achieved when equal pay is received for
equal work, when pay differentials can be related to finite differences in degrees of
responsibility, and when pay matches individual capacity and the level of work carried out.
25. Job evaluation is used to create TWO Dimensions of relationships. The first is vertical relationship
within the sector of an org where the basic skill is similar. Here the order of seniority may be obvious
but the spacing of the rungs on the seniority leader needs to be established. The second dimension
is lateral relationship between jobs of a different nature. Job evaluation is therefore basically the
attempt to find a measure by which the relative payments made to different jobs are internally
consistent.
SUMMARY
An understanding of all the concepts in this unit will improve the ability to understand what
motivates men and improve our ability to manage them more effectively.
26. METHODS OF JOB EVALUATION
1. Ranking Method.
2. Classification.
3. Factor Comparison.
4. Point Method.

a) Ranking Method. Ranking Method requires a committee typically composed of both

management and employee representatives to arrange jobs in a simple work order, from
highest to lowest. 2 jobs are compared and it is judged as to which one is more important /
difficult. Then they compare another job with the first two and so on until all the jobs have
been evaluated and ranked.
Difficulties-
i. How do you rank hundreds & thousands of jobs?
ii. ii) No objectivity in standards of judging two jobs.
b) Classifications Method- Classification grade are established by identifying some common
denominator-skills, knowledge, responsibilities-with the desired goal being the creation of a
number of distinct classes or grades of jobs. Examples – shop jobs, clerical jobs or grade of
jobs, depending on the type of jobs in the org once classifications are established, they are
ranked in an overall order of importance according to the criteria chosen and each job is
placed in its appropriate classifications. The classification method shares most of the
disadvantages of the ranking approach, plus the difficulty of writing classification description
judging which jobs go where.
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c) FACTOR COMPARISON METHOD. This is a sophisticated and quantitative ranking method. The
evaluators select key jobs in the org as standards. These jobs chosen should be well known,
with establish pay rates in the community and they should consist of a cross-section of all
jobs that are being evaluated “from the lowest to the highest paid job, from the most
important to the least important and cover the full range of requirements of each factor, as
agreed upon by a committee representing workers & management. “Typically 10-25 key jobs
are selected by the committee”. What factors in the key jobs will the other jobs are
compared against? These criteria are usually mental requirements, skill requirements,
physical requirements, responsibility & working conditions. Once the key jobs are taken &
criteria chosen, committee members rank the key jobs on the criteria. In the next step, the
committee members agrees upon the base rate for each of the key jobs & then allocate this
base rate among the 5 criteria. The final step is to compare its overall judgments and resolve
any discrepancies. The system is in place when the allocations to the key jobs are clear &
understood, and high agreement has been achieved in committees members judgments
about him much of each criteria every job has.
Drawbacks-
i) Complexity.
ii) Use of same 5 criteria to assess all jobs when in fact jobs differ across and within
organization.
iii) POINT METHOD. This method breaks down chosen jobs based on various
identifiable criteria-such as skill, efforts, and responsibility and then allocates
points to each of these criteria. Depending upon the importance of each criteria
to performing the job appropriate weightage are given points are summed, and
jobs with similar points totals are placed in similar pay grades.
Merits.
The point method offers the greatest stability of the four approaches. Jobs may change over time but
the rating scales establish under the point method stay intact. Also there is a minimum of rating
errors.
Demerits.
i. Complex.
ii. Costly & time consuming to develop. The point method is the most widely used method.
27. Establish Pay Structure. Once the job evaluation is complete, its data become the nucleus for
the development of the org pay structure. This means establish pay rates or ranges that are
compatible with the ranks, classifications, or points arrived at through job evaluation.
a) Wage Surveys. Most org use surveys to gather factual information on pay practices
within specific communities and among firms in their industry. This information is
used for comparison purposes. It can tell management if the org wages are in line
with those of other employees and in cases where there is a short supply of
individuals to fill certain position may be used to actively set wage levels. Org obtain
data by carrying out its own surveys & tapping information from ‘National Bureau
of labor statistics.’
b) Wage curves. When management arrives at point totals from job evaluation and
obtains survey data on what comparable org are paying for similar jobs then a wage
curve can be fitted on to the data. This example assumes usage of the point method
and plots point totals and wage data. A separate wage curve can be constructed
based on survey data & compared for discrepancies.