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CHAPTER 1 INTRODUCTION TO HUMAN RESOURCE MANAGEMENT Introduction to Human Resource Management Organizations are made up of people and function

through people. Material resources such as money and materials are utilized through people for different purposes. People constitute the most significant resource of an organization. Human resource is most active, productive and sensitive. Employees have capacity to think and act or react accordingly. This source needs delicate handling so that it will be useful for the progress and prosperity of an organization. In the present world, all organizational resources (human and material) are important for achieving organizational objectives. Naturally, their effective utilization is necessary. Here, organizations give special attention to human resources which includes manpower working at different levels in the organization. The employees need to be efficient, highly trained and professional co-operative and loyal to the organization. They are expected to make positive contribution in achieving organizational objectives. Such useful labour force will not developed automatically but needs to be nurtured through special efforts in the form of training, career development, cordial industrial relations, participative management and so on. Human Resource Management (HRM) is concerned with the manpower employed in an organization. It is that part of management which is concerned with people at work and their relationships within the organization. HRM is one important branch of management as it touches all other aspects of business management. HRM is concerned with human resource planning, recruitment and selection of manpower, training and development of manpower, compensation payment to manpower and so on. In this introductory chapter, we propose to discuss the nature and scope of human resource management.

MEANING OF HRM CONCEPT OF HRM I WHAT IS HRM? Personnel refers to the employees working in an organization at different levels. Personnel management (also called HRM) is that aspect of total business management which deals with human relationships within an organization. Personnel represents human resources which is different from material resources. It is rightly said that organizations are not mere bricks, mortar, machineries or inventories. They are people. It is the people who staff and manage organisations. Human resources are the people and their characteristics at work. They are human factors inbusiness. 3 . Human resource is the most productive and most versatile. In addition, the manpower in an organisation needs human treatment. Employees have a capacity to feel, think and even to react. Management has to deal with the employees in a careful and tactful manner. Material resources such as land, machines, raw materials, equipment, etc. are easy to manage. This is because they have no capacity to feel or think or react. This is not the case with human resource i.e. manpower. For example, you may use a bad word for a machine or you may put your leg. on the machine . but you must not abuse a worker or put your leg on his head. This is because he has a capacity to feel, think and even react quickly in the same manner or even in a more challenging manner. In production activity, men and machines are important. However, man behind the machine is more important as he is a human being. Man and machine are not on par and must not be treated in the same manner. This is because of all the resou:rces manpower is the only resource which does not depreciate, with the passage of time. According to Peter F. Drucker, "the prosperity, if not the survival of any business depends on the performance of its managers of tomorrow. /I The material resources alone will not help the organisation to achieve its objectives. For this, effective coordination and utilisation of material and human resources are required. This suggests the importance of human resources. Human resources of an organisation function at top management, middle

management, supervisory management and at operative management levels. Human resources are most vital assets of. an organisation. They can be used as a means for developin.g competitive. advantages. In addition, manpower /people in the organisation act as Source of creativity. They can produce unlimited ideas which can be used for the progress a..'1d prosperity of an organisation. This suggests the signific;mce of human resources which need effective utilisation through careful management. The human resource is very important and useful in every organisation. It should be nurtured and used for the benefit of the organisation. This is a challenging job before persOlmel manager / management. The organisation can make rapid progress only when the employees are efficient, satisfied and co-operative. On the other hand, the organisation will have to face various problems and difficulties, if the employees are not co-operative but hostile. This indicates that human resource is most strategic and critical determinant of growth of a business unit. Every organisation needs loyal, efficient and satisfied labour force. For this, adequate attention should be given to HRM. HRM is a management function that helps managers to recruit, select, train and develop employees for an organisation. It is concerned with the people's dimension in organisations. DEFINITIONS OF HUMAN RESOURCE MANAGEMENT:

(1) According to Scott and others, "Human resource management is that branch of management which is responsible on a staff basis for concentrating on those aspects of relationship of management to employees and employees to employees and with the development of the individual and the group. The objective is to attain maximum individual development, desirable working relationship between employers and employees and employers and employees, and effective moulding of human resources as contrasted with physical resources ", (2) According to National Institute of Personnel Management of India,

"Human resource management is part of management concerned with people at work and with their relationships within the organization. It seeks to bring together men and women who make up an enterprise, enabling each to make his own best contribution to its success both as an individual and as a member of a working group ". Edwin Flippo defines HRM as planning, organizing, directing, controlling of procurement, development, compensation, integration , maintenance and separation of human resources to the end that individual, organizational and social objectives are achieved.

CHAPTER 2 OVERVIEW OF HRM FEATURES OF HRM: 1) Managing people: HRM relates to managing people at work. It covers all levels of personnels and their needs, expectations and so on. In this sense, it is a comprehensive function and is basically concerned with managing people at work. HRM has universal existence and application as it is applicable to business and other organisations - government, educational, social, and religious and so on. 2) People-oriented process: HRM is concerned with employees, both as individuals as well as a group. The aim of HRM is to get better results through their involvement, 7 motivation and co-operation. It is a people-oriented process of bringing people and organisations together so that the goals of each are met properly. Acquisition, development, motivation and maintenance of manpower /human resources are four basic functions in the HRM process. 3) Develops employees' potentialities: HRM is concerned with helping the employees to learn and develop their potentialities to the highest level for their benefits as well as for the benefits of their organisation. It is a manpower / employees development oriented subject. 4) Integral part of organisations: HRM is an integral part of all organisations. It is concerned with recruitment, selection and development of manpower available. 5) Continuous activity: HRM is a continuous activity in an organisation as personnel problems continue to exist as long as employees are working in an organisation. They need constant attention as they may disturb normal working of an organisation, if neglected.

6) Securing employee co-operation: HRM aims at securing willing co-operation of employees for achieving organisational objectives. This is natural as industrial and other activities can be conducted only with the support of human resources. HRM aims at developing and maintaining team spirit at the organizational level. Such team spirit brings success to the organisation. 7) Future-oriented: HRM is concerned with helping an organisation to achieve its objectives in the future by providing competent and motivated employees. It makes an attempt to integrate individual objectives of employees with the organisational objectives. HRM provides long term benefits to individuals. (employees), organisations and the society at large. 8) Challenging function/activity: HRM is a challenging function/ activity as it deals with the people/employees who are always unpredictable. Employees have emotions and sentiments and cannot be treated like machines. It is necessary to handle them and activities related to them tactfully. In short, HRM brings challenges before HR manager from time to time. It also provides opportunities to organisations to grow through the efforts of efficient and devoted manpower. HRM is a key element in dealing with the economic, technological and other problems faced by business organisations. Such problems can be solved with the help of devoted team of employees.

SCOPE/FUNCTIONS OF HRM 1. Human resources planning: Human resource planning or HRP refers to a process by which the company to identify the number of jobs vacant, whether the company has excess staff or shortage of staff and to deal with this excess or shortage. 2. Job analysis design: Another important area of HRM is job analysis. Job analysis gives a detailed explanation about each and every job in the company. Based on this job analysis the company prepares advertisements. 3. Recruitment and selection: Based on information collected from job analysis the company prepares advertisements and publishes them in the news papers. This is recruitment. A number of applications are received after the advertisement 9 is published, interviews are conducted and the right employee is selected thus recruitment and selection are yet another important area of HRM. 4. Orientation and induction: Once the employees have been selected an induction or orientation program is conducted. This is another important area of HRM. The employees are informed about the background of the company, explain about the organizational culture and values and work ethics and introduce to the other employees. 5. Training and development: Every employee goes under training program which helps him to put up a better performance on the job. Training program is also conducted for existing staff that have a lot of experience. This is called refresher training. Training and development is one area were the company spends a huge amount. 6. Performance appraisal: Once the employee has put in around 1 year of service, performance appraisal is conducted that is the HR department checks the performance of the employee. Based on these appraisal future promotions, incentives, increments in salary are decided.

7. Compensation planning and remuneration: There are various rules regarding compensation and other benefits. It is the job of the HR department to look into remuneration and compensation planning. 8. Motivation, welfare, health and safety: Motivation becomes important to sustain the number of employees in the company. It is the job of the HR department to look into the different methods of motivation. Apart from this certain health and safety regulations have to be followed for the benefits of the employees. This is also handled by the HR department. 9. Industrial relations: Another important area of HRM is maintaining co-ordinal relations with the union members. This will help the organization to prevent strikes lockouts and ensure smooth working in the company. 10. Procurement of manpower (Human- Resource Acquisition): Procurement means acquiring the manpower required by an organisation from time-to-time. For this manpower planning is necessary. In fact, manpower planning is one major function of HR management. Such procurement will be from the employment market. The basic principle in procurement for the right job". The procurement function includes manpower planning and forecasting, recruitment, selection, appointment, placement and induction of employees so as to have a team. of efficient and capable employees for the benefits of the organisation. Even promotions and transfers_ are covered by this broad personnel funding.- At present, scientific methods are used for recruitment! selection of capable manpower for the Benefit of the organisation . 11. Development of manpower: Development of manpower (human resource development) means planning and execution of the training programmes for all categories of 11 employees in order to develop new skills and qualities required for working at the higher level. Manpower development is possible through training and career development programmes and not simply by offering attractive wages to workers. Such manpower development (possible

through' systematic training programmes) is required for meeting the growing and changing needs of manpower along with the expansion and diversification of business activities. Executive development programmes are introduced for the benefit of higher level managers. Promotions and transfers are possible when manpower development programmes are introduced regularly. Similarly, future manpower requirement will be met internally through HRD programmes. This suggests the importance/significance of human resource development. It aims at educating and training employees for the improvement of overall performance of an organisation. HRD programmes are for education, training and development of existing manpower in an organisation. This is for facing new problems and I2hallenges likely to develop in the near future. 12. Performance management and compensation payment to manpower employed: Performance management involves performance planning, performance appraisal and performance counselling used for various purposes. One more function of personnel management is to pay compensation (in monetary form) to employees for the services rendered. For this, a fair system of remuneration payment (wages and salaries' needs to be introduced. Remuneration to employees should be attractive so that the labour force will be satisfied and disputes, etc. will be minimized. Fair wage payment acts as a motivating factor in compensation management 13. Integration of interests of manpower and the organisation: Manpower is interested in wage payment while organisation is interested in higher profits, consumer loyalty, market reputation and so on. Personnel management has to reconcile the interests of the individual members of the organisation with those of the organisation. OBJECTIVES OF HRM The primary objective of HRM is to ensure the availability of a competent and willing workforce to an organisation. In addition, HRM objectives are four fold- societal, organisational, functional and personal. The objectives of human resource management in any industrial organisation can be summarised as under:

(1) To attain maximum individual development (self development) of the members of an organisation and also to utilise available human resources (with the organisation) fully and effectively. (2) To mould effectively the human resources. (3) To establish desirable working relationships between employer and employees and between groups of employees. (4) To ensure satisfaction to the workers so that they are freely ready to work. (5) To improve the service rendered by the enterprise to the society through better employee morale which leads to more efficient individual and group performance. (6) To establish and maintain a productive and self respecting -relationship among all the members of an organisation. 13 (7) To ensure the availability of a competent and willing workforce to the organisation for its progress and prosperity. (8) To help organisation to achieve its goals by providing well trained, efficient and properly motivated employees. (9) To maintain high morale and good human relations within the organisation for the benefit of employer and employees. (10) To secure the integration of all the individuals and groups with the organisation by reconciling individual/group goals with those of an organisation. MODERN DAY CHALLENGES BEFORE HRM MANAGER: Management itself is a challenging job. New problems and challenges developed from time to time due to changes in the composition of business environment. This is applicable to production, marketing, finance and other aspects of business. Every manager has to face such challenges of change in relation to his area of operation. The same is the case with HR manager who looks after manpower employed in his organisation. It is equally true. to say that the' area of HR management is full of challenges in the new millennium. The future has many challenges

for the managers of tomorrow. In fact, the modem day / current challenges before HR Manager and HRM are identical. Modem day challenges before HR managers are more complex due to the process of liberalisation and globalisation. The overall industrial situation is fast changing. Labour laws are amended and liberal treatment is offered to industrial units operating in special economic zones (SEZs). In addition, multinationals are expanding their activities in India. All such changes or rapidly changing scenario are introducing new . elements in the field of human resource management. As a result, the challenges before to-day's HR manager are extremely delicate and difficult. Modem day or current challenges faced by to-day's Human Resource Manager are as explained below: (1) Challenges relating to recruitment, selection and development of manpower: HR manger is concerned with recruitment, selection, training and development of manpower. Here, he faces many challenges. For example, job seekers are' many but really capable persons (employable) are few and are in great .demand in the employment market. How to get most suitable persons and how to make them stable in the organisation is one challenge before the personnel manager. Similarly, arrangements for manpower development programmes are difficult due to inadequate supply of qualified instructors, financial constraints and inadequate co-operation of employees in the training programmes. (2) Challenges relating industrial relations: HR manager has to face many challenges in the area of industrial relations. Cordial industrial relations are difficult to maintain due to excessive demands of employees and lack of constructive approach on the part of trade union leadership. Industrial disputes developed even due to minor causes and disturb the orderly functioning of the industrial unit. How to maintain cordial industrial relations over a long period is one important challenge before HR manager. (3) Challenges relating to provision of welfare facilities: HR manager has to look after the provision of welfare facilities to employees. He has to provide safety and security at the work place. This responsibility also

poses problems from time to time. Employees demand additional welfare facilities. They also raise complaints regarding inefficient administration of welfare facilities. There are financial constraints while spending money on welfare activities. This makes the provision of welfare facilities complicated. This is one 15 Challenge before a HR manager. . (4) Challenges relating to manpower management: HR manger has to look after certain functional activities such as promotions and transfers, administration of grievance procedure, execution of labour legislations and so on. This work is also complicated and leads to dissatisfaction among the employees. Charges of partiality and favouritism are made as regards promotions and transfers. It is necessary to introduce fair personnel policies so as to avoid dissatisfaction among the employees. (5) Challenges relating information collection, storage and. ready availability when required: HR department has to collect and store lot of information regarding the manpower employed in the organisation. Such information may be required urgently and also in the consolidated form. For this, computer based information system needs to be introduced. How to introduce such information system is one challenge before a present day HR manager. (6) Challenges relating to research on personnel management: HR manager has to undertake research activities in personnel probleJJ1s, policies, procedures and practices. Such research is useful for framing personnel policies for the future period. How to conduct such research activities within the resources and manpower available in the personnel department is one challenge before HR manager. (7) Challenges relating to expansion, modernisation and automation: Along with the expansion of business, automation and modernisation of many activities will be necessary. This may lead to retrenchment and the problem of surplus manpower in the organisation:- The employees and trade union may protest against such policies and may adopt an attitude of non-co-operati9n. Here, the personnel manager will have to persuade the

employees to identify themselves with the organisation and its goals. He will have to act as an agent. of change and also sensitive to the hardships of employees. This is a new challenge before HR manager. (8) Challenges relating to collective bargaining and other techniques of labour participation in management: HR manager has to play an important role in the process of collective bargaining and workers' participation in management. Both the activities are important but difficult to introduce due to the negative attitude of employees and their trade union leadership. How to secure co-operation 'of employees and their unions in this regard is one challenge before the present day HR manager. (9) Challenges relating to the execution of personnel policies: Execution of various personnel policies is the responsibility of personnel manager. Such policies need to be fair and also acceptable to employees in general. In the absence of their support, new problems, disputes and grievances are likely to develop. Here, the challenge before HR manager is how to prepare fair personnel policies and how to secure cooperation~ of employees in their execution. (10) Challenges relating to trade union activities: The job of HR manager relates to people employed in the organisation. He has to manage them properly for the benefit of the organisation. However, human behaviour is always uncertain. Employees may not appreciate personnel policies which are actually favourable to them. They may come under the influence of trade union leaders or political leaders and oppose management as regards certain policies and programmes. This leads to new labour problems which are difficult to deal with. In short, HR manager has to face new challenges in the normal course of his functioning.

ROLE OF HR MANAGER : The HR manager is a generalist who administers and coordinates programmes cutting across functional areas. He is usually a top-ranking person at a plant or facility and, as such, is expected to know about all areas of HRM. This is because the HR manager has to oversee the implementation of HR policies at the facility and advice line managers on HR issues. The HR manager must be fair and firm, tactful, sympathetic and considerate. He needs knowledge of labour laws in order to play his role in an orderly manri.er. HR manager needs both managerial qualities (intelligence, emotional stability, analytical qualities, etc.) and job related qualities (communicative quality human relations quality, technical quality, etc.) for showing good/promising performance. We have already noted the challenges before HR manager. This suggests that his position and role in the organisation is positive and crucial. He is on par with other managers. However, he is closely connected with all other departments as he is concerned with the HR policies which remain uniform at the organisational level. The status of HR department in the total organisational structure depends on whether the unit is small or large. In most of the small organisations, there is no separate department to coordinate the activities relating to personnel manpower employed. ROLE OF HRM IN BANKING The banking industry is a highly regulated powerhouse that stabilizes the economic environment of nations around the world. Banks store sensitive, personal information about their clients, and commercial banks often house more valuable inventory -- cash -- than other retail operations. Bank employees, from executives to tellers, must have a higher level of integrity and trustworthiness than employees in most other industries, making the role of HR in banking that much more important.

Applicant Screening Certain jobs do not really require a thorough background check, but any job in a bank definitely does. Human resource departments in banks must go the extra mile to uncover the criminal and financial history of job applicants, for the safety of their clients and their organization as a whole. Banks are highly unlikely to hire candidates with financial fraud on their records, for example, due to the sheer weight of temptation a position in a bank would place on someone with that kind of history. Bank Security Human resources departments must design and monitor work processes to reduce opportunities for internal theft and collusion. HR policies separate cash receiving, storage, processing and disbursement, and record all activities via video surveillance. In the event that an employee attempts to steal from a bank, the HR department must handle the legal paperwork and administrative processes required by court proceedings. Pay Decisions As with other industries, HR professionals in banks have a hand in making decisions for pay raises and promotions. Bank workforces are unique in that they often have two methods of paying employees: salaries for back-office and other personnel, and commissions for sales employees. Promotion decisions for salespeople selling loans and other financial products differ from decisions to promote administrative staff. Banks' HR departments must manage both equitably and strategically to develop the workforce. Executive Recruitment The banking industry is highly competitive, and banks constantly navigate a legal minefield that can devastate companies that step out of line. Finding the right executives is crucial in any industry, but especially one in which competition is so fierce and legal compliance so important. Human resources professionals in banks must go the extra mile to recruit the best executive talent in the banking field, allowing their organizations to thrive and grow into the future. Human resources departments in corporations must gain approval of the board of directors before bringing

CHAPTER 3

TRAINING AND DEVELOPMENT TRAINING AND DEVELOPMENT INTRODUCTION: The concept of human resource development (HRD) has acquired special significance in the present. rapidly changing global economy. HRD may be defined as a process of increasing knowledge, skills and capability of people/employees. Such HRD is essential at the national level for rapid economic/industrial progress. In the present world, manpower is treated as an asset only when such manpower ~s educated, skilled, well trained and capable to accept new challenges from time to time. A country can make steady progress only when its human resources are well trained and well developed. The same rule of HRM is applicable to business enterprises. They need well trained, matured, motivated and loyal manpower for stability, . growth and competitive position. Business organisations give special attention to the development of human resources. They provide training and self-development facilities/ opportunities to workers, supervisory staff and top level managers. Huge money is spent for this purpose which is a type of investment for HRD. At the enterprise level, employee training (for operative staff) and executive development (for supervisory staff) are two main areas of human resource development. Training and development constitute an ongoing process in many organisations and this suggests growing importance of training and development. In this chapter, we propose to discuss different aspects of employee training and development. CONCEPT OF TRAINING (WHAT IS TRAINING?): Training comes next to recruitment, selection and -placement. It normally relates to the job assigned and is in the form of guidance/instructions for performing the job safely and efficiently. It is necessary and useful in the

case of all categories of operative employees, supervisory staff and managers. Training raises their skills and creates confidence and ability to perform the job efficiently. It also facilitates self-development and career development of employees. In fad, the main purpose of training is to develop the human resources within the organisation. The resources/talents within an employee are in a dormant form which are to be activated through the process of training. In brief, training is the watchword of present dynamic business world. Training is necessary due to technological changes rapidly taking place in the industrial field. New machines, new methods and new techniques are introduced in the production, marketing and other aspects of business. Training is a must for using new machines and new techniques. It is a process of increasing knowledge' and skills of doing a particular job. Its purpose is to raise the competence of an employee. Training is normally regarded as a short term process by which nonmanagerial! operative personnel acquire the technical knowledge and skills for efficient conduct of jobs assigned. It leads to efficient and skilled behaviour of employees. Such training i.s necessary for raising overall efficiency of an organization and also for achieving organizational objectives. Training given to managers is regarded as management development. Such management development is a continuous as well as long term process and is useful for creating a team of capable managers for the benefit of an organization. The term development is used in the case of training of managers. Training of employees is also essential along with the introduction new production techniques. Industrial training is for a short period but has wide coverage. It relates to knowledge, information, technical skills, social skills, administrative skills and conceptual skills and finally positive attitude building. Training is for developing overall personality of an employee. It also creates positive attitude towards fellow employees, job and the organisation where he is working. Training is the responsibility of the management as it is basically for rising the efficiency and productivity of employees. Expenditure on training and development is an investment ,for manpower development and gives rich dividend to

employees and organisation in the long run. It makes organisation capable to face new challenges from timeto-time, There are different types of training. They include: Induction/orientation training, job training, training for promotion, safety training, refresher training and remedial training. DEFINITION OF TRAINING : (1) According to Edwin Flippo, training is "the act of increasing the knowledge and skill of an employee for doing a particular job." (2) According to Wayne Cacio, "Training consists of plnn~1ed programs undertaken to i:nprove employee knowledge, skills, attitudes, and social behaviour so that the performance of the organisation improves considerably. " 23 MEANING/CONCEPT OF DEVELOPMENT : Managers/ executives constitute the most valuable assets of an organisation. The success and growth of an organisation depend on the calibre and performance of managers. Systematic education and training need to be given to them so as to raise their capacity to face adverse situation and new challenges. For this, mail.ao-ement development/executive development programmes are n:cessary and useful. In addition to training for operative staff, an organisation has to take steps for training programmes for supervisory staff and managers. Such training programmes are called management! Executive development programmes. Various methods/techniques are used under management development for improving the skills, behaviour and performance of managers. Such development programmes are necessary as every organisation needs a team of highly qualified and trained managers at the higher management levels in order to frame and execute its business plans and policies. For this, every organisation, .particularly large as well as progressive, has to take suitable steps for management development. In other words, it has to use different training methods for training its executives. Here, multi-skill training facilities (for developing technical skills, managerial skills and conceptual skills) will be offered to

trainee officers (engineers, etc.), supervisory staff and managers working at the higher levels. Continuous efforts for management. development are essential in the present highly competitive business world. Management development programme (also called Human Resources Development (HRD) programme) acts as a key factor for the survival and growth of a business unit. Management development consists of all means by which executives learn to improve their performance. It is designed to improve the effectiveness of managers in their present jobs and to prepare them for higher jobs in the future. It prepares managers to accept higher responsibilities and develops responsible leadership within the organisation. Management development facilitates replacement of senior managers (on recruitment) by well trained and competent managers available within the organization. Development aims at helping the managers to realise their full potential. Management development is a continuous process as there is no time limit for learning to occur. Secondly, management development is based on the assumption that there always exists a gap between a manager's existing performance and his potential for the performance. The untapped potential can be converted into actual performance through management development programmes/ process. Management development process involves stresses and strains. It seldom takes place in complete peaceful atmosphere. METHODS OF TRAINING MANAGERS/METHODS OF MANAGEMENT DEVELOPMENT: For management development or for training managers, several methods I techniques are used.. These methods can be divided into two broad categories, namely, (i) Internal or on the job methods or In-company programmes and (ii) extremely or off the job methods or out company

(A) Internal Training Methods/On-the-Job Methods: (1) Coaching and Counselling: Coaching: On the job' coaching is a method by which a superior teaches job knowledge and skills to a subordinate manager. He briefs the trainee executive about ~hat IS expected of him and how it can be done. The su.peno~ also checks the performance of his subordinate and gU1d~s hIm to improve his deficiencies. The superior acts as a friend and guide of his subordinate. Coaching method favours learning by doing. Its effectiveness depends on the capacity and the interest taken by the superior and also by the subordinate. The supenor should adopt a positive approach in the coaching process and help the subordinate in achieving self-development. Coaching has certain' limitations. i"or example, a trainee manager cannot develop much beyond the limits of his own superior's abilities. Similarly, the success of coaching method depends on the interest and initiative taken by the trainee manager. 25 (2) Counselling: Under this method, the subordinate wanting advice approaches his superior. Counselling is provided in matters relating to the job. However, on request from the subordinate, counselling may also be offered on matters not directly related to the job. There is two-way dialogue between the subordinate and the superior to find solution to his problem. Counselling provides emotional stability to traineesubordinate. Counselling is possible in classroom methods of training which include lectures, discussions, case study and role playing. , (3) Understudy assignment: An understudy is a trainee manager who is to assume the full duties and responsibilities of the position currently held by his superior, when the later leaves his post due to retirement, transfer or promotion. Here, a departmental manager (head) selects one of his suitable subordinates to become his understudy. As an alternative, the personnel department may make the selection of understudy. The departmental manager will guide him (i.e. understudy) to learn his job and deal with the problems that confront the' manager daily. TI1.e understudy will learn the job of his superior through observation

and participation in the decision-making. He may be. given specific problems to study and to make recommendations for solving them. The understudy will be given wider exposure and an opportunity to develop capacity to deal with difficult problems and complex situations. Advantages of understudy assignment : (a) It is a practical method emphasis, learning by doing. (b) It relieves the superior from some of his duties and responsibilities. (c) It avoids serious disadvantages to the organisation if the superior suddenly leaves the job. Disadvantages of understudy assignment : (a) The competition for promotion is over when the understudy is designated. (b) This method leads to jealousy and friction within the department. (c) The understudy may not take adequate interest in his self-development because of his prior selection. (4) Job Rotation: (5) Junior Boards: Here, a junior board of junior executives is constituted. Major problems are analysed in the junior board which makes recommendation to the Board of Directors. The young executives learn decision-making skills and the Board Receives the collective wisdom of the junior board. . Advantages of Junior Boards : (a) Junior Board facilitates group decision-making. (b) It contributes to the productivity and human relations in the organisation. (c) It identifies executive talent. (d) It is an economical method. Limitations of Junior Boards : (a) In the junior board, it is not possible to give specific attention to the developmental needs of executives. 27 (b) It follows theoretical approach to problem solving. (c) It is not suitable to lower level executives. (6) Delegation: Delegation is one more internal method of management

development. The performance of subordinates may not improve unless additional responsibility and authority are delegated to them. Making the subordinates to achieve a particular target through delegation is one way by which subordinates will learn to grow and develop independently. They will develop leadership qualities and decision-making skills, which are necessary for a good manager. (7) Appointment as 'Assistant to': A junior executive may be appointed as I Assistant to' senior executive for the purpose of training and practical experience. Here, the junior executive is given exposure to the job of senior executive and he learns new techniques while providing assistance to his boss. This broadens his viewpoint and makes him ready for future promotions. The superior executive also gets the benefit as he can delegate some of his responsibilities to the assistant and also acts as guide of his assistant. (8) Membership of Committees: Inter-departmental committees are normally created for bringing coordination in the activities of different departments. Managers from different departments are taken on such committees. Junior managers are also given membership of such committees so as to give them a broader exposure to the viewpoints of other departmental heads. Ad hoc committee of executives is also constituted and is assigned a specific problem for study. Such committee assignments offer opportunity of training to jWlior executives, as they have to study the problem in depth and make recommendations. (9) Project Assignment: In the project assignment method, a trainee manager is given a project that is closely related to the work of his department. The project relates to specific problem faced by the department. Here, the executive has to study the project on his own and make recommendations for the consideration of the departmental head. Such assignment provides valuable experience to the trainee and develops problem-solving attitude, which is one essential requirement of an executive. (10) Promotions and Transfers: Promotions and transfers are two more internal methods of management development. Promotion gives an

opportunity to a manager to acquire new skills required for the job at the higher level. It motivates him for self-improvement. Transfer also facilitates the broadening of viewpoint required for higher positions. It gives an opportunity to work at different positions and develop. (B) External Methods of Management Development/Off- The Job Methods : (1) Universities and Colleges: The universities and colleges, now, provide facilities of management education. Here, education is given through lectures, discussions, home assignments, tests and examinations. Mumbai University has its Bajaj Institute of Management for various management development courses. Colleges affiliated to the Universities also conduct DBM, MBA and other management development programmes for the executives from business sector. Candidates working at managerial levels in companies are normally selected for such training programmes. (2) Management Institutions: Along with the universities and colleges, there are management training institutions such as NITIE, Bombay Management Association, Productivity Councils and so on. These institutes run special training courses for graduates interested in management education and also orientation programmes for existing managers from public and private sector enterprises. Companies can depute their managers for short orientation courses and update the knowledge and information of their managers in specific areas. Even seminars, workshops and conferences are arranged for the training of managers by various associations such as chambers of commerce and export promotion councils. (3) Sensitivity Training: This method is also called T-Group training or laboratory training. It concentrates on face-to-face interaction. The trainees are put in open environment wherein participants discuss themselves. The discussion is guided by an expert who get opportunity to

express their ideas and beliefs. It is an effective method to. develop awareness of self and impact on others. (4) In-basket Exercise: In this method, the trainees are proVided with basket or tray of papers and files related to their functional area. They are expected to carefully study these and make recommendations on the problem situation. The recommendations from different trainees are compared solutions are worked out. Such solutions are put, preferably in the form of a report. It is a simple and economical method. It reduces interdepartmental conflicts. The solutions are worked out by the participants may not reflect real life Situations. (5) Role-Playing: Role-playing has been defined as "method of human interaction, which involves realistic behaviour the imaginary situations. It is particularly useful for bearing human relations and leadership trainning. Its objective is to raise the ability of trainee manager while dealing with others. In the role playing, a conflict situation is artificially created and two or more trainees are assigned different roles to play. For example, a male employee may assume the role of a female supervisor and the female supervisor may assume the role of a male employee. Then, both may be given a typical work situation and asked to respond as they expect others to do. Such role playing results in better understanding among individuals. It helps to promote interpersonal relations and attitude change... (6) Case Study: Case study method was first developed by Christopher Lang dell and Harvard Law School. A case is a written account giving certain details of the situation is relation to a specific matter. Such case study may be related to any aspect of management such as production, marketing, personnel, finance and so on. The case presented is always incomplete. This means the solution to the problem is not provided. The participants are supposed to identify the best available solution. A small group of managers is asked to study the case in the light of theoretical study already completed and is followed by open discussion in the presence of capable instructor, who can guide intelligent discussion and analysis. There is nothing like one correct answer to the case study

matter. Case study method has certain advantages. These are: (a) in-depth thinking about the matter by managers, (b) more perception in situation and greater respect for the opinions of others. (7) Conferences and Seminars: Deputing officers for conferences and 31 seminars is a method available for management development. Various matters are discussed systematically in such conferences and seminars. This provides new ~formation and knowledge to the managers. The participants 111 . such conferences and seminars are limited. As a result more persons get an opportunity to participate in such Conferences for self-development. Conferences may be directed or guided or may be for consultation and finally for problem-solving. Seminars are similar to conferences and are usually for one day or few hours. Participants are supplied notes or synopsis of lectures to be delivered. This gives additional information to participants and enables them to use the same in their daily routine. (8) Simulation:. In this method, an executive/trainee is given practical training by creating situation/environment, which closely represents the real situation at the working place. For example, activities of an organisation may be simulated and . the trainee may be asked to make a decision. in support of those activities. The results of those decisions are reported back to the trainee with an explanation. The report illustrates what would have happened if that decision was taken. The trainee learns from this feedback and improves his subsequent simulation. (9) Management/Business Games: A variety of computer. and noncomputer management/business games have been devised for training of managers. This training method is used in management development. It is a type of classroom method of training. The game is designed to represent real life situation. Employees for managerial positions are put in an exercise of actual decision-making. A problem is provided to them along with all the necessary information and constraints. The employee is asked to make a decision. The quality of this decision is judged by how well the

applicant has processed ,the information provided to him. The processing of information is supposed to be guided by knowledge of the goals and policies of the organisation. Even if mistake is made in the game, the trainee can learn a lot out of his mistake. This avoids possible mistakes while taking decisions for his company. This method develops capacity to take rational decisions by managers. (10) TV and Video Instructions: TV and Video instructions are used for training and management development programmes. At present, programmes on management problems are arranged on TV network regularly. Vid'eotapes are also available on management training. Books and periodicals are published regularly on management. Audiovisual aids (film strips, Video, tape recorders, TV, overhead projectors, etc.) are now used for training of managers. (11) Transactional analysis - It is a tool for improving human relations and interactions, and of promoting rationale and mature behaviour. It identifies 3 main behaviour:Parent (taught behaviour), Adult (thought behaviour), Child (felt behaviour) (12) Behaviour modeling - It is a technique of demonstrating and practicing a behavioral process. After the behaviour is modeled, trainees rehearse the behaviour, and the trainer provides the feedback about accuracy and effectiveness. Behaviour modeling is good for developing the interpersonal skills. (13) Structured experiences -These exercises allow trainees to learn interpersonal or communication skills. The structured experience typically focuses on generating certain interactions among the participants. PROCESS/PROCEDURE PROGRAMME : Training programme needs to be prepared properly and as per the specific needs of the organisation. Secondly, training process/ programme needs to be implemented in an orderly manner, failing which the net result of training will not be positive/ effective. Training process is lengthy and time consuming. It starts with the identification of training needs and ends when training is provided as per the needs and positive results are actually verified through evaluation technique. The steps involved in the training process/programme are as noted in the

33 chart given on the next page: (1) Identifying Training Needs: Discovering/identifying the training needs of an organisation is the first step in the systematic training process/programme. All training activities should be related to the specific needs of the organisation and also of the individual employees. The training should start only after careful assessment of the training needs, failing which training process will be misdirected and positive benefits will not be available. The effectiveness of a training process can be judged only with the help of training needs identified in advance. For the identification of training needs, the gap between the existing level of knowledge, skills, performance and aptitudes of employees and the required levels of knowledge, skills performance and aptitudes should be clearly specified, The problem areas that can be resolved through training process should also be clearly identified. Here, "the trouble spots" are to be noted where training may be needed. It should be noted that training is not a cure-all technique. ADVANTAGES OF TRAINING AND DEVELOPMENT : Advantages/Benefits of Training in Human Relations: (1) Improves internal communication: Training ensures improved communication between groups and individuals. (2) Provides better orientation: Training provides orientation for new employees at those taking new jobs through transfer or promotion. (3) Provides information to employees: Training provides information on opportunity in employment, governmental laws, administrative policies and so on. It facilitates career planning of employees and also facilitates self-development.

(4) Creates healthy work atmosphere: Training provides a good climate for learning and growth. It makes organisation a better place to work and

enjoy. (5) Improves employee morale: Training improves interpersonal . skills. It builds up a group of employees with high morale. The advantages noted above suggest the importance of training and development programmes to organisations. T &D programmes remove performance deficiencies in employees. They even motivate employees to work efficiency. (6) Increased Produtivity -, An increase in skill usually results in an increment in both quality and quantity of output. (7) Reduced Supervision - The trained employee is one who can perform with limited supervision. (8) Reduced Accidents - Proper training in both job skins and safety attitudes should contribute towards in reduction in accidents. (9) Increased Organizaltional Stability - Training results in high stability in employees to adjust in short run variations.

CHAPTER 4

CASE STUDY TRAINING AND DEVELOPMENT IN ICICI BANK INTRODUCTION Training is an important and a very moral part of ICICL Training is given to all the cadre of employees. Irrespective of their status and designation. Outbound training is provided by the bank when there is a need. * ACTIVITIES UNDERTAKEN Needs Analysis Here they assess the trainee's real needs in preparatory meetings, level testing for language courses, trainee interviews, or written questionnaires. Setting Targets Here they use the best methods available to establish where improvement is most needed. This stage results in the setting of Course Objectives and the Course Program, which is agreed upon. Course Design The best trainer/s is now selected to handle the running of the project. The Course Program is now designed to meet the objectives and needs and the COURSE STARTS..... Training Reports Trainers fill out weekly or monthly reports for each project, which are reviewed by First Class' management. The company looks for content, time management and skill development. Project Evaluation The Program Coordinators are frequently in touch with the trainee to ask for their comments. Feedback exercises are carried out twice on our longer courses.

End of Course Feedback They are very interested in the opinion of both client management and the course participants. This covers all aspects of the course, including Organization, methodology, trainer suitability and whether course objectives have been met. The employees are trained through 2 ways i.e. the bank provide training programmes to employees in 2 methods, E - Learning prouramme The employees are provided with the E Learning programme where the matter of learning is present on the computer. Here all the Functionalaspects are covered. The employee just has to open that site of E Learning and team the topics by reading it out as they are designed as per the learning convenience of the employees. The topics covered under this programme are 1. The Regulatory Environment of Banking 2. General Banking Operations 3. Retail Deposits Programs 4. Corporate Products Program 5. Law in Everyday Banking 6. Treasury Products Program 7. Retail Assets Products Program 51 8. Basis of Life Insurance 9. Audit and Compliance 10. Quality and Six Sigma for Beginners 11. Retail Internet Banking 12. Performance Feedback 13. Retail Demat Program 14. Banker's Selling Skill Program C-Learning programme : The employees are provided with the C - Learning programme which is conducted in the class room. C - learning means Class room where all the behavioural aspects are covered which requires the attention of the trainer and this training program is impossible to learn of its own by the

employee various skills are stressed in this learning program which the employee needs in every stage of Functional aspects. The topics covered under this programme are 1. Presentation & Communication Skills 2. Models for Management 3. Managing for Performance 4. Team Effectiveness 5. Negotiation Skills 6. Train the Trainer 7. Managerial Effectiveness 8. Personal Effectiveness 9. Interpersonal Effectiveness & Influencing Skills 10.Professional Communication Skills 11.0n Becoming a Manager 12.Foundations of People Management.. * METHODS OF TRAINING PROVIDED The training provided to all cadres of employees is depending upon their needs and importance of various tasks and jobs required to them. The leaders of each group or section or department find out the need for training to a particular employee discussing HR head. The functional &Behavioral training is provided to all the employees. TRANING PROGRAMMES CONDUCTED IN A YEAR Normally there are 60 training programs of Behavioural skills are conducted and 20 - 30 skills are conducted. i.e. 720 Behavioural skill program & 300 Functional skill ms are provided annually. * WHO GIVES TRAINING ? Training is given by different persons to different levels of employees. Upper class --- These employees are generally given training by the

internal trainers as company does not rely on the outsider trainers for top level employees. 53 Middle class --- They are usually trained by outside and inside trainers, they are also given training through top level managers. Lower class --- This category consists cers & clerks. These employees are given training through the supervisors and heads of the departments. *WHERE THE TRAINING PROGRAMS ARE CONDUCTED ? The ICICI has special training rooms for conducting training sessions at the office of ICICI. It has also a special training centres constructed at Khandala in Maharashtra, Delhi, and Bangalore and at Chennai for all official and managerial level training * WHO ASSES TRAINING NEED AND VENUE ? The training need is assessed by the collective discussion between the team or p head and the HR manager. The venue is decided by the HR department. Generally employees who are under training are sent to Khandala so that they can concentrate on E- Training activity only. *EMPLOYEES SUGGESTIONS FOR DESIGNING THE TRAINING PLANS The employees' suggestions are considered while designing the training plans. Suggestions are welcomed 4 days before the training program starts. The Employees can give suggestions about changing the training program timing, extra topics added stress to be given on particular topic etc.

* PREPARING TRAINING LETTER & SCHEDULE The employees are informed about the training program through e-mail. The ad, timings, venue, and topics of training are displayed on the intranet. The groups are also informed about the training through their heads. EVALUATION F TRAINING PROGRAMME The employees are evaluated through the observation way. The employees are given feedback forms during and after the training session. Executive Recruitment The banking industry is highly competitive, and banks constantly navigate a legal minefield that can devastate companies that step out of line. Finding the right executives is crucial in any industry, but especially one in which competition is so fierce and legal compliance so important. 55 Human resources professionals in banks must go the extra mile to recruit the best executive talent in the banking field, allowing their organizations to thrive and grow into the future. Human resources departments in corporations must gain approval of the board of directors before bringing someone in to fill an executive spot

Chapter 5 HUMAN RESOURCE STRATEGY IN BANKING SECTOR Introduction The global improvement already affected different business industry. The evolution of technology is one factor to contribute the advancement of every sector of the business. When it comes to human labor, the involvement of the Human Resource Management is still visible because the productivity of every employee depends on them. The human resource department is an essential foundation in building a successful business enterprise. In the view of a business, specifically in the banking industry, employees and technology usually work together. The bank feeds the information and process in acquiring technology and the employees are highly trained to drive the system. To make the harmony and standardization possible in the banking industry, the human resource fills the missing part of the story. The Role of Human Resource in Banking Industry The existence of a human resources department is vital to overall productivity and efficiency of the strong workforce in any thriving company. In most professional organizations, the role of the human resources department is not sidelined or eclipsed by other departments. In fact, good human resources can be one of the most valued and respected departments in an organization; their job is people, and people are the companys most important asset. One of the major roles of a Human Resource Department in a successful business involves a lot of observation and analysis from behind the scenes. The intelligence of the human resource staffs involves a compilation of complex data and metrics that follows the performance of individual employees. Their specific job is to make the workforce competent is a vital task. The sensitive nature of human relations and the work of human resource will adequately needed in making the

managements tough decisions. And the essential part is keeping a secret behind the close door meetings of who is going to let go, who is going to promote and who is going to hire1. Human Resource Strategy in Banking Industry The Human Resource is the only department that can measure the ability of an employee before deploying him into the actual work. The strategy of human resource manager is very reliable because he, includes the other human resource staffs, are well-trained enough to this kind of job. The human resource manager creates their own strategy depending in the nature of the business that needs them. When the banking sector goes to the human resource management to hire new employees, the first thing that a human resource manager will do is to look for the right specification of the worker that the company needed. After determining the specification and requirements, the strategy in hiring new and fresh employees are the next in the line. In the works of (1997), they set a strategy that concerns in the Human Resource Strategy in Thailand. As application on their work, the study will present the following strategy that can help for the further study or if possible, actual implementation in one banking institution1. Recruitment and Selection This is one important factor that enhances their professionalism. Other factors include the fact that there is more competition in the industry and the new generation of managers who are better educated and well-trained in their professions. In the earlier stages, when banks were first set up to provide financial services, banks used to recruit their employees who may graduate with any field of studies at all. However, over time, the business schools and vocational schools have been able to train more people in business administration. Therefore, banks can recruit and select group of personnel with required skills. This has led to the improvement of these banks operation.

Training and Development Most banks provide orientation programs for their new employees. Later on, these employees are expected to be acculturated into the banks system through on-the-job training. For the human resource development program, it has been found earlier that banks generally provide formal training programs for employees at the supervisory level and up (1989). All banks now prefer to hire their employees with bachelors degree. However, with the competition from non-bank institutions in the labour market for the same pool of labour, many banks lowered their requirement for the qualifications of their employees to those with vocational college diploma in business administration area. This certainly necessitates these banks to focus more on human resource development activities to maintain the banks competitiveness. To ensure that the human resource will recuperate their investment in training their personnel, some banks have requested their employees to sign the contract or create some bonding contract that requires the personnel which will receive a certain training to pay back to the bank in terms of time or cash if they would like to quit the organization. Performance Appraisal Most of the banks have an annual performance appraisal. Some, however, have the performance appraisals done twice a year. This is for the human resource development purpose for some banks. Most banks use their performance appraisals for the administrative purpose such as for pay raise and promotion consideration. Large banks generally have very elaborate systems of performance appraisal, such self-evaluation vs. supervisor evaluation. However, this is not very common. Large banks whose systems are very well-designed provide feedback to their employees after they have been evaluated. If the subordinates do not agree on any points, they can appeal to their supervisor and to the upper management. All banks have formal system of employee performance appraisal in that they have forms designed to measure or appraise employees for particular qualities or competencies. Some may emphasize teamwork, creativity, and business code of ethics, etc. other than

interpersonal skills or managerial skills, or technical skills. Compensation Compensation in the banks nowadays varies. Most banks follow the market rate in each market segment. Thus, in order to be able to attract the job applicants, most banks will follow the market rates and will vary their fringe benefits to make their offers more attractive than their counterparts in the banking industry. The issue of external equity of pay seems to be an important one at the entry level. However, once become employees of a bank, the employees will also be compensated for their special skills, such as computer programming, accounting, or some other scarce skills. In general, for the Thai local banks, promotion from within practice has created a large internal labor market. All banks provide bonuses to their employees but generally no other financial gains. They do not have profit sharing plans and some incentive plans can be observed in the fact that most banks now considered their branches as their selling points and have these operate as profit centers. Labor-management Relations Most banks in our sample have unions. However, unions are usually organized at the bank tellers and non-supervisory level. It can be said that unions in the banking industry are generally weak and their collective bargaining with the employers mainly include wages and fringe benefits. There have been no strikes. The unions are not very militant. The formation of bank unions is usually through bank employees network. Unions are said to be establish because the employees relationship with the management has been collaborative. However, some cultural elements seem to facilitate their relationship with the management. The union representatives addressed the manager by their seniority in age and work experience in their interaction with the management. Thus, a certain level of consideration was given to the management side. This makes the management feels that they can negotiate and work out the agreement which would satisfy the needs of 61 both sides. In todays situation, some banks have also brought unions into their participative system of management.

Employee Involvement and Job Security : They do have some employee involvement activities and currently many banks have set up empowered work groups. It is noteworthy though that the re-engineering process of the large banks has somewhat created a sense of job insecurity among some employees particularly those at the lower level. This could lead to a negotiation of the labor and management in the banking industry. A new unionism maybe expected for the next decade if this organizational restructuring process spreads out to other industries which are now faced with inefficiency of operation when entering into the global market. IT in Human Resource: The Human Resource is also updated in the technological change. The technology gives a great help in every business industry. The importance of a technology is being shared in every parts of the organization to promote the accuracy and efficiency. Acquiring a technology that can process the works of the human resource staff can make a difference and can finish the job in less than an hour. But the information system of the human resource department differs in the other field of business industry. And the appropriate process is a good partner in the business industry that includes the human resource department. Recently, HR-IT has gained significance since most organizations have been using technology to transform HR, to increase HR productivity, to improve employee experience and to maximize the value of the company's most important asset- employees by aligning their skills, activities, and benefits with business objectives and strategies3. The process that makes the work of a human resource staff that involves technology is usually covering the business role. These business roles are like Payroll Application, HR Application Outsourcing, Enterprise Learning Management, Portal Implementation/Integration and HR Analytics are key components of the solution set. The use of technology in terms of payroll will secure that every entry are protected and cannot be manipulated. Still, the processes are set from the beginning of its acquisition that usually compacted in a template and uses security code

for protection from the outsiders. Conclusion: To make a business successful, the right selection of right person in right department is one factor that can create a great impact. The Human Resource is the only department that somehow brings the first impression in the attitudes of every applicant. The human resource are fully equipped and armed with a psychological knowledge that can interpret any persons action and gesture. Through many behavioural exams and series of personal evaluation, the human resource manager can analyze and judge well the applicant. Being a human resource manager is sometimes deceiving. Why? Because most of the human resource department has a good ambience and the attitude of the human resource can affect the others moods. The reason is to keep the chain between the employees and the higher management intact and to make an inviting communication. CHAPTER 6 63 TRAINING & DEVELOPMENT AN INTEGRATED HRM CHALLENGE TRAINING & DEVELOPMENT AN INTEGRATED HRM CHALLENGE With the opening up of various sectors to the market economy during last 10 years massive technological changes, process simplification, changes in managerial practice and above all delay ring of organization has taken place across the industry. Every now and then a company is buying other, thus issues like merger, de-merge With the opening up of various sectors to the market economy during last 10 years massive technological changes, process simplification, changes r, acquisitions etc are no more that much talked about eventualities at corporate corner. Both management and employees representatives started realizing that only bold and agile term to retain the market share are ?Internal Capacity Building?. To gain further part of pie, the company needs to capture customer confidence and the same is only possible if the company

continuously maintain a pool of creative talent. The big Industry houses have their HRD department to conduct much structured? Induction Training? for budding Managers as well as fresh Graduates and Diploma holders. The practice of a small session on? What to do and what not to do? By the recruiter and placing the trainee under a seasoned campaigner to handle daily routine work on behalf of the person concerned is also prevalent in the Industry. The smaller corporate entity focused at Core business however generally resort to outsource the function to some professional trainer. However, one-time short structured Induction training for different functional areas like Production, Operation, HR, Marketing, Finance etc is one issue but when it comes to a scheduling a comprehensive programme involving sizeable money, time and effort .Days are gone when people used to prefer a single employer throughout ones career. In the advent of aggressive job advertisement, availability of Job Portals, movement of recruitment consultancy and above all relentless poaching by Head hunters the employee inventory of the organization also became extremely volatile. In fact building a succession plan for departmental head became a nightmare and the Industries are fighting hard to retain New Born Baby of the Organization. Both the big and small Industry house whether operating in Public or Private, are facing the same 65 difficulty irrespective of the sector thus have their own T&D challenges to address. While imparting T&D programme the Companies remain in the corridor of uncertainty unsure about retaining the person within the Co. fold and get result out of the new skills the person acquired out of the programme. Strategically, no organization can think even to act as nursery for his competitor. At the same time if the organization remain reluctant to acquire new skill through T&D effort, at a later date it will find acute skill gap which will be hard to replenish. So, the million dollar question is what the organization would do ? will it stop train its people with a presumption that the employee may leave after acquiring new skills or it will take a chance.

Imparting T &D and shared responsibility Traditionally over the years we have experienced the fresh recruitees were subjected for induction training to acquire desired skill for combating the job situation. Also the personnel were placed regularly under development programme to enable them to acquire or to renew their managerial skill. Quite often the company management remains generous to sponsor their men for long term campus programme and also for foreign tour involving considerable money to enable the employee concerned to acquire expertise and competency to meet future objectives of the Company. However, the volatile nature of manpower, raise the much talked about question of ROI (return on Investment) of those employee friendly initiatives. Thus, the HRD department became often skeptical for nominating any person for a course involving considerable time and money on fear of losing the man after being trained. Well, definitely HRD department saved some money for the organization by such decision but then had it played its role for the organization to reach its larger business objectives? This managerial contradiction is there; across the industries, and could only be handled efficiently if not eradicated completely if the organization have an integrated HRM system having HRD department under its fold. The basic issue here is not the reluctance of nomination for the high value programme but fear of losing the man due to lack of Organization capabilities to capture the output on return after completion of programme. There are considerable shift in approach for tackling HR from keep them happy to make them productive. We have argument and counter argument on happy are productive. But the issue of Productivity road for all-round happiness is probably most relevant for the age. If the man is leaving is only leaving out of his value proposition to the competitor of the organization and HRM department should foresee it and get equipped with the retention tool. Whether Out-source or In-source It is evident that the smaller Company prefers to outsource the T&D process. However, the potential problem is how to align the business process of the concerned Company with the generalized stereo typed

training content of the trainer. Obviously due to budget constraint HRD department cannot absorb the R&D cost of the trainer to enable them to learn the complete business process and customize the course content to make it fit to organization requirement. To handle this delicate but important issue one of the strategy may be development of a process for vendor selection. Rather than adopting a casual approach of opting for need based vendor select a dedicated Training Provider having experience in the vertical of the Industry and develop a contract on medium term basis say for 2-3 years. The resultant advantage of adopting such system is Assimilation of In-house system as well as the people with the trainer. These just not only meet traditional training objectives ? rather induce the management to sit down with the trainer to discuss strategic goals & objectives of the organization ? also it specifies the skills and knowledge needed to achieve them. Macro & Micro level assessment A detail inventory of the available skill sets of the prevailing talents is necessary to analyze the GAP. These finally help the organization to customize training module. The requirements need to be aligned with strategic goals of the organization and need to be assessed at three levels, 1. Organizational level training needs to be congruent with organizations goals without this consideration, training may be working at 67 cross-purposes to the organization. 2. Departmental level Differentiate between tasks that need to be learned on the job, and ones that require training. 3. Individual level at individual level further micro assessment need to be made to develop a full proof TNA system. ie, initiated by performance problems or change. Assessment done to clarify problem, determine if training is the solution, analyze performance and characteristics and competence of trainees. Beyond ROI the other metrics Training ROI is a hot topic on the speaking circuits at many of the training conferences. However research findings suggest that not more than 6-10 % of expenditures in training actually result in transfer to the

job. Also the concept of measuring any single department for its ROI is offensive to the team concept of an organization. Even if one remains determined to prove the effect training alone has on the profitability of the organization, the outcome unfortunately remains flawed. The Success of training thus preferred by assessment of effective and appropriateness of training that is applicable to the organizations needs in an efficient manner. Instead of chasing the elusive and meaningless training ROI, other training metrics are better suited to demonstrate trainings impact. 1. Effectiveness: The effectiveness of training is a measurement of learning. It is determined by comparing post-test scores with pre-test scores and then measuring the net change. 2. Efficiency: The efficiency of training shows how much training was delivered per some unit, ie, the number of training hours per year per employee. 3. Applicability: The applicability ratio derived out of feedback of the participants shows how the training is aligned with the business objectives. It is pertinent to decide raising employee skill ratings and putting more employees through a training programme if the organization does not need those skills? 4. Appropriateness: The appropriateness ratio derived out of feedback of the participants ensures that the right learning objects are delivered to the right people. An excellent training turns wasted if not imparted at right end and level. Thus to maintain competitiveness the organization must appreciate the related expenses as investment and continue design professional development programs so that it can build competency of the employee in developing the leadership skills and styles required to deal with job situations under dynamic market situation. Rather than filling pressure out of employee attrition better the management concentrate on introspection on the inherent causes and develop retention strategy otherwise incapability may led to complete collapse of the system and organization, forget about profitability. In times of economic downfall, companies need to get the most out of their employees in order to maintain market superiority and continued

profit. The human resources (HR) department faces many challenges in a workforces training and development, from ensuring the stability of the high performing individuals who drive the company to coaxing success from untapped potential employees and underachievers alike. Developing Employee Potential: Helping existing employees grow in their abilities benefits a companys ability to perform. Without fostering employee growth, a company can become stagnate and lose the ability to separate itself from competitive companies. Employees will also be unprepared for upward movement in the company, which can lead to failing at promotions or disenfranchisement over the lack of career advancement. HR can encourage growth by pairing employees with a mentor in their target position or moving out of their comfort zone - as their knowledge and experience base grows, the company grows as well. Managing Performance: Managing the workforce is more than encouraging high performers. The low performing individuals can spread negativity regarding the organization, potentially infecting others and bringing down the potential of an entire office. Without proper performance management, employees may not meet goals in a timely manner and cause office-wide progress to slow, which can lead to higher than necessary terminations and new hire training costs. HR should attempt to build an understanding of the employees, setting clear goals and maintain timely reviews to create clear communication of what is 69 required. Identifying High Potential: High potential employees are those who demonstrate an ability to contribute at a greater level. Identifying these individuals, especially the high potentials who, for whatever reason, are not high performing employees, is vital to HRs success in getting the best contributions from the workforce. In a company whose product base involves employee performance, such as sales, allowing high potential employees to perform under their potential constitutes a monetary loss. Managers should use assessment tools including maintaining a high level of competence, consisting tangible results that exceed expectations and ensuring the completion of team goals to identify high potential

employees. Engaging People: Disengaged employees represent a distinct challenge to workforce productivity which can be costly for any company. Keeping employees engaged in their jobs means keeping them comfortable in their positions, respected and engaged in furthering their own personal goals as well as the companys goals. Happy, engaged employees are more likely to have a personal stake in the companys progress, which, in turn, can lead to higher production, sales, or a better bottom line. Work Ethics: Work ethics is one of the Challenges facing Human Resource Training and Development. People are still influenced on their backgrounds and the employees dont judge people by their expertise and skills but their tribal background. At other causes employees still believe that if a person from their community becomes a CEO somewhere it is their time to get rich and be employed and therefore dont concentrate on their work. Limited Training Resources: Limited training resources are one of the Challenges facing Human Resource Training and Development. When training, organization must have budgeted funds for accommodation, travelling and this needs money and the organization may not have the funds to facilitate this. Recognition of Human Resource Management: One of the Challenges facing Human Resource Training and Development is recognition of human resource management towards contribution to business access and achievement of organization objectives. Human Resource managers are not appreciated in companies and their role is not clearly defined in the business. Trade Unions: Trade unions are one of the Challenges facing Human Resource Training and Development. Trade unions can be very ruthless when it comes to negotiation and they include the employees to strike. This affects the Human Resource practice because the Human Resource managers are supposed to provide good working and conducive environment for workers. Retrenchment and Downsizing: Another of the Challenges facing Human Resource Training and Development is retrenchment and

downsizing. When the economy becomes bad the companies are supposed to reduce the employees in the organization which affects the management. Limited Research Work in Human Resource Management: Limited research work in Human Resource Management is one of the Challenges facing Human Resource Training and Development. There are very few publications in Human Resource Management. Conclusion Human Resource Managers should focus on these challenges and make them their strengths in order to gain a competitive advantage over their competitor companies. Thus the Challenges facing Human Resource Training and Development 71 QUESTIONAIRE 1. What are the activities undertaken under training and development in your bank? 2. What are the methods of training provided to the employees? 3. Who gives training and where the training programs are conducted? 4. Who assesses the training needs and venue? 5. What is the duration of the programs conducted? 6. Are there employees suggestions for designing the training programs? CONCLUSION After studying about HRM in detail, it can be seen that there are many challenges in HRM which have to be faced, but there are many ways to overcome these challenges. While studying about Training and Development, 73

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