TRAINING and Wages

8/13/2019 TRAINING and Wages

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TRAINING

TRAINING IS A PLANNED PROGRAMMEDESIGNED TO IMPROVE PERFORMANCE & TO

BRING ABOUT MEASURABLE CHANGES IN KRAsOF EMPLOYEES

ACC. TO TAYLOR M.H A MEANS TO BRING

ABOUT A CONTINOUS IMPROVEMENT IN THEQUALITY OF WORK PERFORMED ,IT WOULDEQUIP THEM WITH NECESSARYKRATO

PERFORM THEIR JOBS


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DEVELOPMENT

BROADENING ANINDIVIDUALS KRAFOR FURTHERRESPONSIBILITIES. ITIS A FUTUREORIENTED TRAININGFOCUSING ONPERSONAL GROWTH OFTHE EMPLOYEES.

IT FOCUS ONTHEORITICAL SKILL&

CONCEPTUAL IDEAS.


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TRAINING VS

DEVELOPMENTTRAINING REFFERED TOTEACHING SPECIFIC SKILLSAND BEHAVIOUR

EX- USE OF COMPUTERS INBANKING SECTORS EMPLOYEESTRAINED TO OPERATE THECOMPUTERS

BUT DEV IS MORE GENERAL &CONCERNED WITH INDIVIDUALRATHER THAN ORGANISATION.IT IS FUTURE ORIENTED &FOCUSING ON THE PERSONALGROWTH OF EMPLOYEES. IT IS

MOSTLY THE RESULT OFINTERNAL MOTIVATION.


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TRAINING DEV.

IT IS REFERRED TO ASTEACHING SPECIFIC SKILL.

IT FOCUS ON TECH.MECHANICAL ORIENTEDOPERATIONS.

1 SHOT DEAL.

PREPARE FOR PRESENTJOBS.

IT IS USUALLY IMPOSED .

EVALUATION NEEDED.

IT IS RELATIVELY MOREGENERAL.

IT FOCUSES ONTHEORITICAL SKILL &CONCEPTUAL IDEAS.

CONTINUOUS.

PREPARE FOR FUTUREJOBS.

OWN OR GENERALLYSUPPLIED BY MGT DEV.PROGRAMMES, RGENERALLY VOLUNTARY.

EVALUATION NOT NEEDED


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TRAINING NEEDASSESSMENT.IT IS A WELL PLANNED ANDDESIGNED ASSESSMENT HELPS TO

ASSESS-IS TRAINING NEEDED.

WHO NEEDS IT.

WHICH METHODTRAINER?


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TRAINING NEEDS CANBE IDENTIFIED BY 3

ANALYSISORGANISATIONAL ANALYSIS

TASK ANALSIS

PERSON ANALYSIS


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ORGANISATIONAL

ANALYSIS ANALYSIS OF OBJECTIVES(LONG&SHORTTERM).

RESOURCE UTILISATION.(HUMAN,FINANCE).

ENVIRONMENTALSCANING(ECONOMIC,POLITICAL,TECH.SOCIO

-CULTURAL).

ORGANISATIONAL CLIMATE ANALSIS(ATTITUDE).


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ANALYSIS OF

TASK PERSON PROCESS OFDETERMINING WHATTHE CONTENT OFTRAINING PROGRAMME

SHOULD BE ON THEBASIS OF THE TASKAND DUTIES INVOLVED.

QUESTIONNAIRES,INTERVIEWS, REPORTS

THESEMETHODS ARE USED TOCOLLECT INFORMATION.

ASSESSMENT OFEMPLOYEE PERFOR MANCE & KNOWLEDGE &SKILL NECESSARY TOREACH THE LEVEL OFPERFORMANCE.

PERSONALOBSERVATION,

PERFORMANCE REVIEWS,SUPERVISORY REPORTSHELP TO COLLECTINFORMATION.


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LEARNING PRINCIPLES MODELLING MOTIVATION

REINFORCEMENT FEEDBACK SPACED PRACTICE WHOLE LEARNING ACTIVE PRACTICE (PRACTICE MAKES

A MAN PERFECT.)


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TYPES OF TRAINING

PROGRAMMESON THE JOB1. JIT

2. COACHING

3.MENTORING4.JOB ROTATION5.APPRENTISHIPTRAINING

6.COMMITTEEASSINNMENTS

OFF THE JOB1.VESTIBULE TRAINING.2.ROLE PLAYING.3.LECTURE METHODE4.CONFERENCE/

DISCUSSIONAPPROACH.

5. PROGRAMMEDINSTRUCTION.


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On-The Job(OJT): A new employee is placed on job and taught thenecessary skills to perform under an expert trainer.

Job Instruction Training (JIT): A Trainer or supervisor givesinstructions to the employee how to perform the job. Appropriate formotor skills and repetitive operations. There are FOUR steps here:

1. Preparation2. Presentation

3. Performance4. Follow ups.

Coaching: The superior teaches and guides the employees on knowledgeand skills of a specifically defined job.

Job Rotation: A trainee is moved from one job to another or one dept toanother-more appropriate for developing multiskilling, operationalflexibility and broadening the overall perspective.


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Simulation Methods: Method which duplicates , as nearly as possible, theactual conditions encountered on a job.

Vestibule Training: A system where employees learn their jobs on theequipment they will be using, but training is conducted away from theactual work floor. Used for clerical and semi-skilled grade.

Off-The Job Training: Attempt here is made to impartknowledge on any subject area covering the aspects like concepts, theoriesand Basic principles.

Lectures: Trainer provides knowledge to the trainee from prepared notesusually, in such a situation where more participation of audience is notrequired but info needs to be shared to a large number of audience.

Conferences: Trainer delivers a lecture to the trainee on a particularsubject followed by queries and discussions on problem solving skills.

Role Play: Defined roles on the basis of oral or written description on aparticular situation is made, just like acting out a given role in a stage play.

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Case methods: A case being an actual situation or event in organizationalproblem-where a trainee is asked to analyze the circumstance with anobjective to identify the problem and trace out the causes.

Management games: A game is designed in the model of a businesssituation and the employees are divided into groups and evaluated on thebasis of depth of decisions in the real life situation.

In-Basket Exercise:In a specific time limit, the trainees are said to takedecisions here, on a pack of papers and files on a tray containing

administrative problems. The decisions are then compared and finallyevaluated.

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Evaluation Of Training: It is an attempt made to obtain info andfeedback on the effects of training program and to adjuje the value oftraining in the light of that information.

The time and money spent in training underlines the need for evaluation oftraining.

Evaluation of Training aspects: A form consisting of the pertinentqueries are prepared to get the feedback or the reactions of theparticipants to how they found the training program-they underwent. Asession by session rating or an overall rating is done on all aspects here.

Assessment of Training utility: If the top management is not ready toaccept or allow innovations or experimentations by the employee-who have

just completed training, it may have no effect whatsoever it may frustrate

the employees.

Post training behavior, evaluation by the supervisors, peers, subordinates,self evaluation by the participants , quantitative and qualitativeimprovements are some of the methods to asses the training utility of the

employees.

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Performance Appraisal:

It is the process of reviewing an individuals performance and progress in ajob and assessing his potential for future improvements.

Objectives:

To identify employees for increment, promotion, transfer and lay off.To determine T & d needsTo motivate employees for feedbackTo establish a basis for research and references for personnel decisionsin future.

Uses:

Create and maintain satisfactory performance level.Contribute employees growth and developmentHelp to understand subordinatesFacilitate competition , incentives etcEnsure organizational effectiveness

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Process/Steps of Performance appraisal:

Establish performance standards

communicate performance expectation to employees

measure actual performance

Compare actual performance with standards

Discuss the appraisal with the employee

If necessary, initiate corrective action

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Methods of Performance appraisal:

Traditional Methods Modern Methods:

1. straight Ranking method 1. Assessment Centers2.Man-to-man comparison method 2.Appraisals by results or3.Grading Management by objectives4.Graphic Rating scale5.Forced Choice description method 3.Human asset accounting Method6.Forced Distribution Method 4.Begavioral anchored rating Scale7..Check List method8.Free Form essay method9.Critical incidents10.Group appraisal method11. Field review method

F d Ch i Di t ib ti M th d


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Forced Choice Distribution Method:

Attempts to correct raters tendency to give consistently high or low ratings toemployees.

Rating elements are several sets of paired phases of adjectives (usually set ofFOUR phases-2 positive and 2 negative)

The rater is asked to indicate which of the four phases is most and leastdescriptive of the employees.

Forced Distribution Method:

It is used to eliminate raters bias, so that all employees are not placed at thehigher or lower end of the scale.

It requires the rater to appraise the employee on the basis of a pre-determineddistribution scale.

This method assumes-of the total emplyees-10 % must go to the top grade, 20%to the second , 40% to the middle, 20 % of the grade next to the second grade,

and 10 % to the lowest grade.

F th d


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Free essay method:

Here the supervisors makes a free form, open ended appraisal, of an employee inhis own words and puts down his impression about his employees. He takes note onall the parameters , he feels to be best required for appraisal of an employee.

Assessment centers:

Initially applied to military situations only

The purpose if this method is to test the employees in a social situation, using a

number of assessors and a variety of procedures.

The most imp feature is-job related simulations

The simulations involve characteristics that managers feel are important to jobsuccess.

Evaluations are done by the evaluators as they perform activities commonly foundin this higher level jobs.

H m t A ti M th d: It f t th ti it d t d t


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Human asset Accounting Method: It refers to the activity devoted toattaching money estimates to the value of a firms internal human Organization andits external customer goodwill. If able, well trained personnel leave a firm, Humanorgn is worthless, if they joins, the human assets re increased, If distrust andconflict prevails-the human enterprise is devalued. If team work and high morale

prevails, the human Organization is a very valuable asset.

Behavioral anchor rating System: This has 3 steps:

1. Generate critical incidents2. Develop performance Dimensions

3. Reallocate Incidents4. Scale of Incidents5. Develop Final Instrument.

360 Degree performance appraisal: The appraiser may be any person who hasthorough knowledge about the job done , by contents to be appraised, standards

of content, and who observes the employee by the content of job. Theappraisers are supervisors, peers, subordinate employees, users of service andconsultants. Performance appraisals by all these parties are called 360 degreeappraisal.

Pr blems f perf rmance appraisal:


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Problems of performance appraisal:

The supervisors dual role plays a confusion

Too many objectives at a time

The superior feels that the subordinate appraisal is not rewarding

A considerable time gap exists between two appraisals.

Skills required for daily administration and employee devp are in conflict

Poor communication keeps employee in darkness about service expectation

Difference of opinion between superior and subordinate about appraisal

Reluctance in transparency with subordinate about their improvement from thesuperior.

Ethics in performance appraisal:


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Ethics in performance appraisal:

Appraisal without proper reason may prove fatal

Appraise on the basis of representative information

Appraise on the basis of sufficient information

Honesty on the assessments of all the facts are mandatory

writing something and saying something different would be illegal

Not to accept anothers appraisal without knowing the basis on which it is made.

Wage: It is a general payment referring to direct monetary compensation It is


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Wage: It is a general payment referring to direct monetary compensation . It isalso used to refer payments to hourly rated productions and service workers.

Salary: Salaryrefers to weekly or monthly rates paid to clerical ,administrative and professional employees.

Objectives:

To establish fair and equitable compensation for similar work

To attract qualified and competent persons

To keep labor and administrative cost in line with the ability of the organizationto pay

To improve motivation and morale of employees and improve union-management

relationships

To minimize the chances of favoritism while assigning the wage rates.

Principles of wage and Salary distribution:


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Principles of wage and Salary distribution:

Wage and salary plans should be sufficiently flexible.

The wage and salary levels should be reasonably in line with that of theprevailing labor market

Along with other needs, even the need for self actualization should befilled up by wage and salary

Wage policy and programs should be reviewed and revised periodically inconformation with the changing needs.

Need Based Minimum wage: As per Indian Labor conference in its 95thconference-suggested that min wage should be need based and should ensure the

min human needs of the industrial worker. It consists of:1.Consideration of 3 consumption units in a family2.Min food requirements upto2700 cal3.Clothing-min consumption of 18 yards per annum4.Housing-min. rent charged by the Govt

5.Fuel, lighting and other miscellaneous should constitute 20 % of total min. wage.


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Methods of Wage determination: The wage/salary of the employees in theorganized sector in India is determined by a variety of factors. These areclassified into FOUR categories:

1. Wage enactments2. Prevalent wage rates3. Influence of trade unions4. Corporate philosophy on wages.

Lantham has listed the following factors that have a bearing on the formulation of

wage levels:

Cost of living

Productivity

Prevailing wage rate

Ability to pay

Attraction and Retention of employees

Demand and supply


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Government Legislation

Economy

Technological development

Job requirements

Management Strategy

Employee factors-Performance-Seniority-Experience

-Potential-Luck

Methods of wage payment: TWO basic Methods


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Methods of wage payment: TWO basic Methods

1. Payment by time:

Age old method Employee paid on the basis of time worked-per week, per day, per

month, rather then output. Wage rate predetermined by negotiation and job evaluation Earnings are predictable and steady No motivation due to no incentive.

2. Payment by results:

Payment on the basis of no. of items an employee produces in an orgnrather than the time spent on the job.

This is again done by TWO process:

1. Straight piece work: Employee is paid at a flat price per unit orpiece completed or paid for the time allowed to complete the particulartask.

2 Differential piece work: Here the wage is paid in relation to output


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2. Differential piece work: Here the wage is paid in relation to output.The rate of wages per unit of production decreases with increase ofproduction, but wage rate per hour still increases, but again not inproportion to the increased output.

Balanced Method: It is a combination of time wage and piece wagemethod. Here the worker is paid a fixed wage based on the time rate witha provision of piece wage method.

Wage Differential:: An Organization offers different jobs-hencedifferentials in wages for different jobs are inevitable. Wage differentials may bedue to the following reasons:

Occupational differences

Inter-firm differentials

Regional differentials

Inter-Industry differentials


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Inter-Industry differentials

Personal wage differences

omponents of Wage/Compensation:

Basic Wage

earness allowance

onus

ommissions

ixed Plans

iece rate wages

ign on Bonus

Profit sharing Payments


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Profit sharing Payments

Fringe Benefits

Reimbursements

Sickness benefit/pregnancy


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Wages also classified under following heads :

1. Statutory Min Wage: It is higher than the bare subsistence or

min wage providing form some measures of education, medicalrequirements and amenities.

2.Bare subsistence wage: Amount sufficient to cover bare physicalneeds of the worker, irrespective of the industrys capacity topay.

3.Living Wage: Normal needs of the average employees regardedas a human being living in a civilized society.

4.Fair Wage: Lies between min wage and living wage depending on

labor productivity, prevailing wage rates of similar occupation ,national income level and place of the industry in the economy ofthe country.


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5. Minimum Wage: It is that wage which should provide not merelyfor the subsistence of life but for the preservation of the worker.

Defn of wages under various Labor Legislations:

1. Payment of Wages Act 1936: All remunerations expressed in termsof money or capable of being so expressed which would, if the terms

of employment, expressed or implied were fulfilled, be payable to aperson employed in respect of his employment or of work done in suchemployment.

2. Minimum Wages Act 1948 : All remuneration capable of beingexpressed in terms of money, which would, if terms of the contract ofemployment, express or implied, were fulfilled be payable to a personemployed in respect of his employment , or of work done in suchemployment and includes house rent allowance.


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3.Payment of Bonus Act 1965 : All remuneration capable of beingexpressed in terms of money, which would , if the terms ofemployment, express or implied, were fulfilled, be payable to anemployee in respect of his employment or of work done in such

employment and includes dearness allowance.

4. Payment of Gratuity Act 1972 : All emoluments earned by anemployee while on duty or on leave in accordance with the terms andconditions of his employment and which are paid or are payable to him

in cash and include dearness allowance and does not include any bonus,commission, house rent allowance, overtime wages and any otherallowance.

5.Employees State Insurance Act, 1948 : All remunerations paid orpayable in cash to a woman, if the terms of the contract ofemployment, express or implied, were fulfilled.

6.Employees PF and Miscellaneous Provisions Act, 1952 : Allemoluments earned by an employee while on duty or on leave withwages according to the terms of the contract of employment and which

are paid or payable oin cash to him.


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7. Workmens Compensation Act,1923 : Any privilege or benefit whichis capable of being estimated in money, other than a travellingallowance or the value of any travelling concession or a contributionpaid by the employer of a workman towards any pension or PF or a sumpaid to a workman to cover any special expenses entailed to him my thenature of his employment.

Industrial Dispute Act, 1947 : All remunerations capable of beingexpressed in terms of money, which would, if the terms ofemployment, express or implied, were fulfilled, be payable to aworkman in respect of his employment, or of work done in such an

employment.

Job evaluation: It is the rating of job in an Organization. It is a process of


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Job evaluation It is the rating of job in an Organization. It is a process ofdetermining the relative value of every job in an Organization to determine whatthe fair basic wage for such a job should be.

Objectives:

Determines the relative worth of each job in a plant.

Determine equitable wage deferential for each job.

Eliminate wage inequalities

Ensuring like wages for like jobs

Basics for incentives and bonus plans

References for individual grievances for wage rates.

Provides information for work organizations, employees selection, placement,training etc

Benchmark for career planning of individual Organization.

Procedure for Job evaluation:


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Procedure for Job evaluation

Preliminary Stage

Planning stage

Analysis stage

Internal Evaluation stage

External evaluation stage

Design Stage

Grading Stage

Developing and Maintaining Stage


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Advantages of Job evaluation:

Developing an equitable and consistent wage and salary structure

Minimizing conflict between union and management by eliminating wagedifferentials

Simplifies wage administration by establishing uniformity in wage rates

Provides a logical basis for wage negotiations and collective bargaining.

Provides the realistic basis for wage determination

Information's generated by job evaluation are used for improvements inselection, transfer and promotion.

Disadvantages of JE:


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g f

Susceptible because of human error and subjective judgment.

Variation exists between wages fixed through JE and Market forces

Doubts created in workers mind during first implementation.

Time consuming process and need of specialized technical persons and

costly process

Very frequent evaluation of job is essential

As it leads to changes in the salary and wage structures, financial burden

is created in the organization.

Methods of Job Evaluation:


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1. Non-Quantitative Methods :

(i) Ranking or Job Comparison Method

(ii) Grading or Job Classification method

2. Quantitative Methods :

(i) Point Rating(ii) factor Comparison method

Ranking Method: Each job as a whole is compared with the other and

this comparison would go on until all the jobs have been evaluatedor ranked.

Grading method : Here the job grades or classes are established byan authorized body or committee appointed for this purpose. Jobgrades are determined on the basis of information's derived from

job analysis.

Point Rating : Here the jobs are broken down into various identifiable


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g jfactors such as skills, efforts, training, knowledge, responsibility etc.and points thereafter attached to each of the factors identified.

Factors comparison Method: It is a combination of both ranking andpoint method in the sense that it rates jobs by comparing them andmakes analysis by breaking jobs into compensable factors. Usually,this system is applied for white collar professionals and managerialpositions.

Essentials of A Job Evaluation Program:

1. Before implementing the JE program, following issues need to be

determined: employees to be covered, internal or externalconsultation of the employees and existence of a suitableatmosphere.

2. An accurate and comprehensive job analysis, job description andjob specification should be done.

3. All relevant factors both internal and external should be taken into


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account before arriving at final shape.

4. The supervisor should have the complete and concrete knowledge of theprogram

5. Solid efforts should be made to provide max. transparency inpreparation and interpretation of the program

6. The program must have the full approval and support from the top

management.

7. Job evaluation should rate the job and not the job holder.

8. Factors to be considered for job evaluation should be clearly defined.

9. The scheme should be administered by industrial relation staff.

10. Changes if any, in the evaluation method should be carried out beforethe program is installed.

Industrial relation concept: IR is concerned with the systems and


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p yprocedure used by the unions and employers to determine the rewardfor effort and other conditions of employment to protect interest ofthe employed and their employers and to regulate the wages in whichemployers treat their employees.

Scopes of IR:

Labor Relations

Employee-employer relations

The role of various practices in employer-employee relations

Conflict handling situations

Promotions and development of healthy labor

Maintenance of industrial peace.

Development and growth of industrial democracy

Objectives of IR:


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Establish and foster sound relationship between worker and management.

Avoid industrial conflicts and strikes.

Keeping disputes away by enhancing economic status of workers

Opportunity for workers participation in management.

Raise productivity by curving turnover and absenteeism

Avoid unnecessary Government interference

Improvement of workers economic conditions

State control over industrial undertakings

Socialization and rationalization of industries.

Vesting of proprietary interest of the workers.

Importance of IR:


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Foster Industrial peace

Promote Industrial democracy

Benefit to workers

Benefit to management

Improve productivity

Approaches to IR: Like other behavioral subjects, both the scenarioof IR and other factors affecting it are perceived differently by different

behavioral practitioners and theorists. Some perceive IR in terms ofconflict resolving, others view it in terms of mutual cooperation , yetothers understand it in terms of competing interest of various groups andso on. The popular approaches of IR are:

1. Unitary Approach: This approach is base on the assumption that


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every one-be it an employee or an employer or Government-benefits, when the emphasis is on a common interest. Here the IRis founded on mutual cooperation, team work, shared goals and soon.

Limitations:(a) It is used as a tool for keeping the employees at bay from

unionism.(b) It is seen as exploitative and manipulative.

2. Pluralistic Approach: This was prevalent in mid 60s and early70s.Later developed by A. Fox. This approach perceives that anorganization is a coalition of competing interest groups mediated by

the management.

At times when the management is inefficient in playing the mediatingrole, the employees unite in the form of Trade Unions to protecttheir needs and claims. The main involvement of trade unions toprotect the interest groups is the focus of this approach.

Limitations: The basic assumptions that the management and the


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employees do not come at the same platform , as per this approach do nothold good for the society. This is because a society may be free, butproper distribution is not necessarily equal among the competing forces.

Radical Approach: This approach mainly followed by the Marxistsemphasizes on viewing conflict as a product of the capitalistic society,based on classes. According to Marxists, conflict arises because of divisionwithin society in terms of havs (Capitalists) and have-nots( labor)

Hence Labor-mgmt conflict as per Marxists cannot be put a solution withcollective bargaining, WPM and cooperation. For this, coercive power suchas strikes, gherao etc are initiated in this approach . This type of IRapproach is generally seen mainly in communist countries like Russia.

IR Systems: It is a complex of inter-relations among workers, managers


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and government. Based on this , there are THREE major parties:

1. Employees: Employees with their various characteristics likecommitment to work, educational and social background , attitude to wards

the management ,affect, and are also mostly affected by the IR system.They work taking the help of the Trade Union to attain the followingobjectives:

1. Redress the bargaining advantage on a one-one basis.

2. Secure stable terms and conditions of employment3. Improved work status of the workers4. Increase democratic value of decision making at various levels.

2. Employer: It is the 2nd

party which is represented by the management.According to Cole, the management has to see the IR as per thefollowing employee-employer relationships:

(i) Creating and sustaining employee motivation(ii) Ensuring employee commitments

(iii) Achieving higher efficiency levels( ) f l h l


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(iv) Negotiating terms and conditions of employment with employer(v) Starting decision making with the employees.

3. Government: With the changes in industrial environment andmanagement perspective, the role of Government has been always changing.Till 19thcentury, the Govt have adopted a policy of laissers faire type ofadministration, but towards the end of the 19thcentury, this attitude hasbeen changed. In due course, of realization, Govt intervention has become

a reality. Currently, the govt interventions has become widespread in theHR matters.

Causes of poor IR:


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Nature of work

Dissatisfactory compensation and work conditions

Dysfunctional Trade union

Non-conducive organizational Climate.

Developing sound IR:

Developing trust between Labor and Management

Existence of sound and democratic trade union

Maintenance of Industrial peace

Continuous feedback and monitoring

Professional approach

International HRM: Today the business prospective has to facei i h l b l l l Th i l d f i i l


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competition a the global level. The survival and success of an internationalbusiness depends on the competitive advantage , it had acquired. When acompany makes inroads into different markets, different cross culturalsocieties and business environment, it had to contend with the most crucial

aspect of staffing these operations.

Perspective of International HRM:

1. Cultural factors:2. Power distance3. Uncertainty avoidance4. Individualism5. Masculinity

6. Economic conditions7. Labor cost factors

Documents

TRAINING and Wages