Monika Final Report II

7/29/2019 Monika Final Report II

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CHAPTER-1

INTRODUCTION TO THE EMPLOYEE TRAININGTraining can be defined as:

The process of increasing the knowledge and skills of the workforce to enable them to

perform their jobs effectivelyTraining is, therefore, a process whereby an individual

acquires job-related skills and knowledge.

Training costs can be significant in any business. However, many employers are

prepared to incur these costs because they expect their business to benefit fromemployees' development and progress.

Training takes place at various points and places in a business. Commonly, training is

required to:

Support new employees (induction training)

Improve productivity

Increase marketing effectiveness Support higher standards of customer service and production quality

Introduction of new technology, systems or other change

sAddress changes in legislation

Support employee progression and promotion

Effective training has the potential to provide a range of benefits for a business:

Higher quality

Better productivity

Improved motivation - through greater empowerment

More flexibility through better skills

Less supervision required (cost saving in supervision)

Better recruitment and employee retention

Easier to implement change in the business

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Effective training starts with a training strategy. The three stages of a training

strategy are:

Identify the skills and abilities needed by employees

Draw up an action plan to show how investment in training and development

will help meet business goals and objectives

Implement the plan, monitoring progress and training effectiveness

Given the costs involved, you might not be surprised to learn that many businesses donot invest enough in training. ome firms dont invest anything in training! Here are

the most common reasons for under-investment in training:They fear employees will

be poached by competitors (who will then benefit from the training)

A desire to minimize short-term costs

They cannot make a justifiable investment case

Training takes time to have the desired effect management is impatient!

Sometimes the benefits of training are more intangible (e.g. morale) than

tangible so they are harder to measure

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CHAPTER-2

TRAINING AND DEVELOPMENT

TRAINING AND DEVELOPMENT is a subsystem of an organization. It ensures

that randomness is reduced and learning or behavioral change takes place in structured

format.

TRANING AND DEVELOPMENT OBJECTIVE

the principal objective of training and development division is to make sure the

availability of a skilled and willing workforce to an organization. In addition to that,

there are four other objectives: Individual, Organizational, Functional, and Societal.

Individual Objectives help employees in achieving their personal goals, which in

turn, enhances the individual contribution to an organization.

Organizational Objectives assist the organization with its primary objective

by bringing individual effectiveness.

Functional Objectives maintain the departments contribution at a level

suitable to theorganizations needs.

Societal Objectives ensure that an organization is ethically and socially

responsible to the needs and challenges of the society.

DIFFRANCES BETWEEN THE TRADITIONAL AND MODERN

APPROACH OF TRAINING AND DEVLOPMENT

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Traditional Approach Most of the organizations before never used to believe

in training. They were holding the traditional view that managers are born and not

made. There were also some views that training is a very costly affair and not worth.

Organizations used to believe more in executive pinching. But now the scenario seemsto be changing. .

The modern approach oftraining and development is that Indian Organizations

have realized the importance of corporate training. Training is now considered as

more of retention tool than a cost. The training system in Indian Industry has been

changed to create a smarter workforce and yield the best results.

Training needs analysis and development needs analysis

Designing a training strategy to underpin corporate strategy

Audit of the training function

Designing learning and development systems tailored to the company's

specific needs

Evaluating the effectiveness of training programmes

Prioritizing of the training budget

Surveys in the area of corporate training

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CHAPTER-3

IMPACT OF EMPLOYEE COMMITMENT AND

EMPLOYEE TURNOVER

Training is of growing importance to companies seeking to gain an advantage among

competitors. There is significant debate among professionals and scholars as to theaffect that training has on both employee and organizational goals. One school of

thought argues that training leads to an increase in turnover while the other states that

training is a tool to that can lead to higher levels of employee retention. Regardless of

where one falls within this debate, most professionals agree that employee training is

a complex human resource practice that can significantly impact a companys success.

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The training industry as a whole has shown significant growth through the years.

Statistics indicate that investment in training is continuing to grow as more and more

companies realize its importance. In 1995, $7.7 billion was spent on the wages and

salaries of in-house company trainers and $2.8 billion was spent on tuition

reimbursement. The American Society for Training and Development found that in

2004, the average annual training expenditure per employee was $955, which is an

increase of $135 per employee from the previous year. The number of formal learning

hours per employee also rose from 26 hours in 2003, to 32 hours in 2004. As the

investment in various training programs continue to rise, it becomes even more

imperative for employers to understand the impact that training has on their

organization.

In addition to the direct and indirect costs described above, turnover plays a

significant role in the amount of training investment companies will assume. The

greater the chance of employee turnover, the less likely a company will invest in it. A

company loses all of its investment should an employee terminate the relationship

upon completion of training.

As a result, employers have very important decisions to make in regards to the level of

investment they are willing makein training. Training duration, specificity, relevance,

payment options, and training location are all things that employers must consider

while developing a training program.

Krueger and Rouse examined the effect that training and workplace education

programs can have on various organizations. The study included an analysis of

numerous outcome variables that may be achieved through training. Variables relating

to performance, wages, productivity, satisfaction, motivation, and absenteeism were

all examined. These variables are analogous too many of those that are commonly

scrutinized in the training and development literature. This paper seeks to move away

from the frequently assumed training outcomes and focus more on the relationship of

training and employee Brum Training and Employee Commitment 2 commitment.

The effect of this relationship on employee turnover will also be explored. Through an

analysis of pertinent literature and research, this paper will seek to better understand

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and clarify the impact that training has on employee commitment and employee

turnover.

The importance of ensuring employee retention following training may lie in the

strategic approach that is utilized. Companies can seek to achieve organizational goals

through a variety of human resource strategies and approaches. One such approach, a

commitment strategy, attempts to develop psychological between the company and

employee as a means of achieving goals . In an attempt to ensure that the employee

remains with the company following training, employers may implement a strategy to

training that fosters commitment. Training that attempts to increase employee

commitment may serve to counter the numerous direct and indirect costs associated

with turnover. Although a commitment strategy can be tied to all company human

resource practices; recruitment, selection, performance evaluation, and so on, the

focus of this paper will be to determine whether training can lead to an increase in

employee commitment and in turn foster employee retention.

IMPACT OF TRAINING: THE FOUR ELEMENTS OF

EMPLOYEE COMMITMENT

There is a significant body of scholarly literature relating to the impact of training on

organizational outcomes. The following sections will attempt to add to this literature

by examining the effect that training has on employee commitment. This will be

achieved by analyzing the four hypotheses discussed above in relation to the various

empirical research and literature that is available. By providing an analysis of the

empirical literature as it relates to the four hypotheses, one will be able to gain greater

insight into the impact that training has on employee commitment.

Training and Employee Investment

As discussed earlier in this paper, an investment is a contribution that an employee

makes today in anticipation that the benefit and pay off will be achieved in the

future.

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Howard Becker identified these investments as side bets. In many aspects, training

is one such side bet that may increase employee investment and commitment. The

question is how does training achieve this? Gary Becker sought to better understand

the relationship between the costs and returns to training by identifying two mutually

exclusive forms of training general training and specific training. General training is

training that provides the worker with skill development not only applicable at the

present employer, but also at other firms throughout the labor market. Some examples

of general training programs are apprenticeship trainings, general computer training,

and learning surgical techniques that could be used in other hospitals.

Educational reimbursement is also an example of general training, as the skills

acquired can be of use to many different employers. Gary Beckers model suggests

that because general training provides skill development that can be used at other

companies, the employer will not invest in it. The underlying premise is that within a

competitive labor market, employees are typically paid for their level of production.

With that, a company that provides general training will have to pay the employee a

wage that coincides with their newly learned skills and their higher level of

production. Companies that continue paying employees the pre-training rate of pay,

risk losing the employee to a firm that will provide the higher wage. As a result,

turnover would increase. By paying the higher wage, as well as paying for the general

training, the current employer would be unable to recoup its overall investment. As a

result, companies have no incentive to pay for general training and it is the workers

themselves that will need to bear this cost .

In contrast, specific on-the-job training is training that increases the workers

productivity and output only at the company that provides it. The training is specific

to that particular company only. Examples of specific training may include learning to

drive a tank or operating machinery that is company specific.

Specific on-the-job training also differs from general training in that it is typically the

company and not the individual worker that bears the cost of the training. The thought

is that because training is specific to the individual company and nontransferable, the

productivity of the worker increases for that particular company, but would remain the

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same for any other organization within the labor market. As a result, it is unlikely that

specific training would result in turnover.

Gary Beckers argument essentially states that the more specific the training the less

likely Brum Training and Employee Commitment 6 turnover will occur. As the

skills obtained are non-portable and non-transferable to other organizations, this type

of specific training is paid for by the employer. In turn, employees typically receive

less pay during the specific training period in anticipation of future wage increases.

By contrasting Beckers model with a commitment approach one can see that the

employees investment of time and the anticipation of higher wages as potentially

leading to an increase in commitment.

These results can be tied to employee commitment in a variety of ways. As indicated

above, there are many organizations that are investing in general training while

assuming the skills being taught are company specific. From an investment

perspective, commitment can be obtained due to the investment in time and energy

involved in the training process. Regardless of the specificity of the training, the time

and effort that an employee puts forth in any training program can lead to a more

committed worker. Along these lines, Krueger and Rouse found that general training

and specific skills are many times embedded in one another. They found that

employees that attended training, regardless of its specificity, became more invested

employees. These employees were shown to seek more job upgrades, receive more

performance awards, and have better job attendance than those that did not attend

training. The general skills training program which was paid completely by the

employer essentially led to less employee turnover. It can be argued that the

expenditure of effort and time led these employees to become more committed to the

organization.

In contrast to Beckers belief that companies have little reason to invest in general

training, from a commitment perspective one is able to ascertain several benefits to

doing so. As stated throughout this section, the time, energy, and effort, that

employees display in any type of training can result in a more invested and committed

employee. Training, whether it is general or specific, can be viewed by the employee

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as a current investment that may offer a greater pay off at a later date. This

increased investment on the part of the employee ties them closer to the organization.

Should the investment achieved from training become linked to part of a more global

human resource strategy within the organization, then commitment will grow even

more.

Training and Reciprocity

Reciprocity essentially states that an employee will help the company because the

company helped them. This parallels the notion of the employee having a sense of

debt toward the organization. Research on this element of commitment indicates that

training can play an integral role in building a sense of debt to the company. Training

that achieves reciprocity in the employee will foster an individuals commitment to

the organization.

Many scholars agree that organizations that train their employees consistently have

better outcomes than those that do not. When business environments change quickly

and abruptly, it is typically the companies with the best trained employees that adapt

and adjust most efficiently. Glance, Hogg, and Huberman determined these statements

to be accurate in their study that looked at training and turnover from the perspective

of evolving organizations.

The researchers affirmed that training encourages spontaneous cooperation in many

large companies. Even in fast moving and ever evolving industries, the cooperation

that can be achieved through training could lessen the need for complicated company

policies. From a reciprocity perspective, one can ascertain that this spontaneous

cooperation which results from training is due to the training participants sense of

debt to the company.

These fast paced, ever-changing industries need to retain employees in order to

achieve company goals and gain a competitive advantage. As the study found,

organizational training can offer these employees an opportunity they may have not

been able to achieve elsewhere. This translates to the employee feeling a sense of debt

to the company and desiring to spontaneously cooperate as a means of repaying the

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reward that they received. Ronald Burke found that employees that participated in the

most number of training programs and rated the trainings they attended as most

relevant, viewed the organization as being more supportive, looked at the company

more favorably, and had less of an intent to quit. One could argue that training was

able to enhance the employees sense of debt towards the organization.

In this example, reciprocity holds that the employee received a benefit of training

from the company and will attempt to repay it in the future. In essence, the employee

will need to remain committed to the organization until the benefit is paid off .

Barrett and OConnell clearly portrayed the idea of reciprocity in their empirical

research of organizations in Ireland.

The researchers found that because of the transferability of skills that general training

offers, employees devoted greater effort and energy to general training. Barrett and

OConnell found that the outcome of training depends on the effort that the

participants put into it. The greater the sense of debt incurred with the training

program, the more of a return on the investment that organizations will secure from

the employee. From an employee perspective general training was found to be more

valuable to employees than specific. Since a great deal of research indicates that

general and specific training are many times enmeshed and intertwined in each other,

it may best serve organizations to promote and encourage participation in general

training programs. Employees many times view general training as a gift. The

sense of being an insider is displayed in the employees exertion of more effort,

improved work ethic, and increased productivity. The gift led to the development of

a sense of debt to the company. In order to repay this debt, the employee became more

committed and devoted to the organization.

Training and Social Identity

There is a significant body of literature that suggests that an individuals identity is

closely Brum Training and Employee Commitment 8 related to their employment.

In turn, training that serves to increase an employees identification with the

organization is likely to produce a more committed worker. Upon hire, training is

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typically one of the first human resource practices that organizations offer to their new

employees.

Training plays an integral role in the socialization process for many employees.

Employees enter the employment relationship with many expectations and desires.

When these expectations and desires are fulfilled, then the employee is able to better

identify with the company. The result is an employee that becomes more committed.

In turn, when a training program fails to meet these expectations, then there is usually

a negative attitude change. These unmet expectations can lead to a decrease in

commitment and a greater likelihood of turnover . The decrease in commitment can be

directly related to the employee being unable to identify with the organization. In

contrast, when employee expectations and desires are achieved through training the

worker is able to feel a greater connection.

The result is an employee that is more committed to the organization . Training that

attempts to increase identification with the organization is greatly enhanced when

used within a strategic approach to building commitment. Social support for training

is a major factor in ensuring its successful integration. Support from upper

management, middle managers, and colleagues can significantly impact the level of

investment an employee will make. Cues from these people and from company

policies can send a message to employees regarding the importance of training.

The more positive the cues, the more likely training will enhance an employees

identification with the company. As a result, employee commitment is enhanced due

to the perceived support that one receives from colleagues and managers.

Training and Lack of Alternatives

Training that serves to limit alternative employment options can be best described by

the work of Gary Becker. Beckers study of human capital in relation to general and

specific training was discussed in earlier sections of this paper. Beckers model and

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ideas related to training has been widely researched and debated among scholars.

Becker argues that general training, due to the portability of skills acquired leads to an

increase in turnover; while specific training, due to the non-transferability of skills

acquired leads to less of an impact on turnover. Holding aside the argument of the

blending of general and specific training discussed previously, Beckers theory

appears to directly apply to the role of training in limiting alternative employment

options.

There are many scholarly journals that have defended Beckers position that specific

training leads to a decrease in turnover. Lisa Lynch Schmidt Labor Research Center

Seminar Research found that young workers that participated in formal and specific

on-the-job training were much less likely to terminate the employment relationship

than workers that received off-the-job generalized training. Several studies examined

the cherry-picking phenomenon where companies wait until employees are trained

by other organizations and once trained the employees are hired away to other

companies.

It has been noted that organizations often prefer to steal these newly trained

employees because they will produce at a higher level .The company that pays for the

training though is the one that loses its entire investment should the employee be

stolen. In the end, it is non-portable specific training that is much more attractive to

organizations as it eliminates the chance that the trained employee will be hired

away .

This parallels the reasoning behind Beckers argument that organizations have little

incentive to pay for general training. Numerous other studies also support Beckers

human capital model of training. Jeffrey Groen states that companies in small markets

have a greater incentive to invest in training that is company specific. Groen argues

that as the market size expands training has a tendency to become more general and

the likelihood of turnover begins to increase.

CHAPTER-4

TYPES OF TRANING

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1.On-the-job Training and Lectures

The two most frequently used kinds of training are on-the-job training and lectures,

although little research exists as to the effectiveness of either. It is usually impossible

to teach someone everything she needs to know at a location away from the

workplace. Thus on-the-job training often supplements other kinds of training, e.g.,

classroom or off-site training; but on-the-job training is frequently the only form of

training. It is usually informal, which means, unfortunately, that the trainer does not

concentrate on the training as much as she should, and the trainer may not have a

well-articulated picture of what the novice needs to learn.

On-the-job training is not successful when used to avoid developing a training

program, though it can be an effective part of a well-coordinated training

program.Lectures are used because of their low cost and their capacity to reach many

people. Lectures, which use one-way communication as opposed to interactive

learning techniques, are much criticized as a training device.

2. Programmed Instruction (PI)

These devices systematically present information to the learner and elicit a response;they use reinforcement principles to promote appropriate responses. When PI was

originally developed in the 1950s, it was thought to be useful only for basic subjects.

Today the method is used for skills as diverse as air traffic control, blueprint reading,

and the analysis of tax returns.

3. Computer-Assisted Instruction (CAI)

With CAI, students can learn at their own pace, as with PI. Because the student

interacts with the computer, it is believed by many to be a more dynamic learning

device. Educational alternatives can be quickly selected to suit the student's

capabilities, and performance can be monitored continuously. As instruction proceeds,

data are gathered for monitoring and improving performance.

4. Audiovisual Techniques

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Both television and film extend the range of skills that can be taught and the way

information may be presented. Many systems have electronic blackboards and slide

projection equipment. The use of techniques that combine audiovisual systems such as

closed circuit television and telephones has spawned a new term for this type of

training, teletraining. The feature on " Sesame Street " illustrates the design and

evaluation of one of television's favorite children's program as a training device.

5. Simulations

Training simulations replicate the essential characteristics of the real world that are

necessary to produce both learning and the transfer of new knowledge and skills to

application settings. Both machine and other forms of simulators exist. Machinesimulators often have substantial degrees of. physical fidelity; that is, they represent

the real world's operational equipment. The main purpose of simulation, however, is

to produce psychological fidelity, that is, to reproduce in the training those processes

that will be required on the job. We simulate for a number of reasons, including to

control the training environment, for safety, to introduce feedback and other learning

principles, and to reduce cost.

6. Business games

They are the direct progeny of war games that have been used to train officers in

combat techniques for hundreds of years. Almost all early business games were

designed to teach basic business skills, but more recent games also include

interpersonal skills. Monopoly might be considered the quintessential business game

for young capitalists. It is probably the first place youngsters learned the words

mortgage, taxes, and go to jail.Awards you International recognition for your previousacademic, and life experience in the form of a degree.

:

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CHAPTER-5

COMMITMENT AND EMPLOYEE TURNOVER

A committed employee is one that will remain with the organization. Through the

years, numerous research studies have been conducted to determine the accuracy of

this statement. In the end many have concluded that committed employees remain

with the organization for longer periods of time than those which are less committed.

Richard Steers hypothesized and found true that the more committed an employee is,

the less of a desire they have to terminate from the organization. These highly

committed employees were found to have a higher intent to remain with the

company, a stronger desire to attend work, and a more positive attitude about their

employment. Steers concluded that commitment was significantly and inversely

related to employee turnover.

Along these lines, Jeffrey Arthur conducted an empirical study of two steel

minimills; one which incorporated a human resource commitment strategy and the

other a control strategy. Arthur was able to find many productivity and business

advantages to the company that had a commitment strategy.

The study found that turnover was twice as high in the company that used a control

strategy (x = .07, s.d. = .07) than it was in the company which fostered a commitment

approach (x = .03, s.d = .03).

This exemplifies the impact that human resource strategy can have on an organization.

Job search, retention, employees desire and intent to leave, and attitude toward the

organization can all be improved with a strategy that seeks to enhance employee

commitment. The study found that employees that had a higher level of commitment

also had a higher level of turnover cognitions. These statistics are relevant as they

are representative of the inverse relationship of commitment and turnover. By

separating the trained and untrained employees, Owens was able to show that the

more committed employees are, the less likely they will consider turnover. The

aforementioned studies are representative of much of the research available relating to

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commitment and turnover. Commitment has a significant and positive impact on job

performance and on workforce retention.

Determinants of Employee Commitment?

There is a great deal of literature which seeks to define and identify the specific

characteristics of commitment. Scholars have offered many differing views and

theories regarding employee commitment. Even with these differing views it is

possible to find some consistent themes. In general there is significant supporting

research that indicates that commitment is made up of investments, reciprocity, social

identity (identification), and lack of alternatives.

Investment states that it is an employees investment and anticipation of a future

pay off that serves to tie them closer to the company. Reciprocity, in contrast,

indicates that it is the employees obligation to pay off their debt to the company

that will lead to greater commitment. Identification specifies that commitment can

grow as a result of an employees social identity becoming increasingly embedded in

their employment.

Investments.

An employee that is invested in the organization is an employee that is going to

remain with the organization. Howard Becker argued just this in his paper that

analyzed the various concepts of commitment. Becker stated that employees can

invest in a multitude of practices that can be perceived as side bets. Examples of

side bets may include attending training outside of work time, participation in an

apprenticeship program, or attaining a high degree of seniority. Side bets can becentered on time, effort, pay, benefits, and so on.

The greater the investment in any of these side bets, the more likely the employee

will remain with an organization. Due to the perceived cost of leaving being too high,

side bets can serve to actually increase the employees intent to remain . Becker states

that in order for commitment to be achieved through a side bet several elements

must exist.

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One such element is that the individual is aware that a side bet was made. Another

is that the choices that were made regarding a particular decision have an effect on

other potential decisions. The side bet philosophy states that an investment is made

today with the expectation that the benefit will be achieved at some future point. Some

can view this as an employee paying their dues today in order to achieve success in

the future . Becker provides an example of his side bet theory which relates to

lower-class school teachers. The teachers side bet was that of time. When the time

arose in which these lower-class teachers were eligible for transfer to a more affluent

school, many denied the transfer.

The denial was because the teachers adjusted their approach and teaching style to that

of the lower-class. Discipline techniques, addressing issues with parents, as well as

many other issues, would have resulted in the teachers having to drastically change

their styles and approaches. . The expenditure of time by the teachers actually tied

them to the lower-class students even though more desirable teaching positions were

available. In spite of the lowered expectations, the teachers tenure resulted in them

becoming invested to a particular organization .

Reciprocity.

Barrett and OConnell argue that employees may view some human resource

practices as a gift. Training is one such practice that employees may view as a

gift. The result of this gift is that employees exert more effort, become more

productive, and have a greater sense of debt to the organization.

Social Identity.

In terms of commitment, social identity and identification are analogous to one

another. The more an employee is able to identify themselves to the organization, the

more likely they will be committed. The stronger the identification to an organization

and its goals, the stronger the commitment will be. The relative strength of

identification, the belief in goals and values, and the willingness to work on behalf of

the company are all factors that tie social identity to commitment .

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On an informal level, social identity can be observed when two long lost friends meet.

The first question that typically arises is where do you work? Within this commonly

asked question one is able to determine that people derive a great deal of their identity

from employment. The answer to the question carries with it a great deal regarding

ones status.

Lack of Alternatives.

This element of employee commitment can be best described by the earlier school

teacher example. The investment of time was a deciding factor in the school

teachersdecision to remain with the lower-class students even though more desirable

positions became available.

In addition to the side bet of time that developed, the experience of the teachers

also served to limit their alternative employment options. The teachers knowledge led

to the development of strategies and skills that would have been objectionable to

middle class parents. As a result, the teachers conformed to a low level teaching

standard that would be below that of the middle class students . The years of teaching

the lower class students actually served to limit future employment options.

Whether it is through training, job evaluation, job design, or any other human resource

practice, it is generally argued that the Schmidt Labor Research Center Seminar

Research Series 5 more specific an employees skills the less likely they will leave

the organization. This is exemplified in the above school teacher example.

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CHAPTER-6

TRAINING METHODOLOGY

On The Job Training (OJT)

The most frequently used method in smaller organizations that is on the job training.

This method of training uses more knowledgeable, experienced and skilled

employees, such as mangers, supervisors to give training to less knowledgeable,

skilled, and experienced employees. OJT can be delivered in classrooms as well.

On the job Training is characterized by following points

It is done on ad-hoc manner with no formal procedure, or content

At the start of training, or during the training, no specific goals or objectives

are developed

Trainers usually have no formal qualification or training experience for

training

Training is not carefully planned or prepared

The trainers are selected on the basis of technical expertise or area knowledge

The procedure of formal on thejob training program is:

1. The participant observes a more experienced, knowledgeable, and skilledtrainer (employee)

2. The method, process, and techniques are well discussed before, during and

after trainer has explained about performing the tasks

3. When the trainee is prepared, the trainee starts performing on the work place

4. The trainer provides continuing direction of work and feedback

5. Thetrainee is given more and more work so that he accomplishes the job

flawlessly.

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The four techniques for on the job development are:

COACHING

MENTORING

JOB ROTATION

JOB INSTRUCTION TECHNIQUE (JIT)

Coaching

Coaching is one of the training methods, which is considered as a corrective methodfor inadequate performance. According to a survey conducted by International Coach

Federation (ICF), more than 4,000 companies are using coach for their executives.

These coaches are experts most of the time outside consultants. .

.

A coach is the best training plan for the CEOs because

It is one to one interaction

It can be done at the convenience of CEO

It can be done on phone, meetings, through e-mails, chat

It provides an opportunity to receive feedback from an expert

It helps in identifying weaknesses and focus on the area that needs

improvement This method best suits for the people at the top because if we see

on emotional front, when a person reaches the top, he gets lonely and it

becomes difficult to find someone to talk to. It helps in finding out the

executives specific developmental needs. The needs can be identified through

60 degree performance reviews.

Procedure of the Coaching

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The procedure of the coaching is mutually determined by the executive and coach.

The procedure is followed by successive counseling and meetings at the

executives convenience by the coach.

1. Understand the participants job, the knowledge, skills, and attitudes, and

resources required to meet the desired expectation

2. Meet the participant and mutually agree on the objective that has to be

achieved

3. Mutually arrive at a plan and schedule

4. At the job, show the participant how to achieve the objectives, observe the

performance and then provide feedback

5. Repeat step 4 until performance improves

For the people at middle level management, coaching is more likely done by the

supervisor; however experts from outside the organization are at times used for up and

coming managers. Again, the personalized approach assists the manger focus on

definite needs and improvement.

Mentoring

Mentoring is an ongoing relationship that is developed between a senior and junior

employee. Mentoring provides guidance and clear understanding of how the

organization goes to achieve its vision and mission to the junior employee.

The meetings are not as structured and regular than in coaching. Executive

mentoring is generally done by someone inside the company. The executive can learn

a lot from mentoring. By dealing with diverse menthes, the executive is given the

chance to grow professionally by developing management skills and learning how to

work with people with diverse background, culture, and language and personality

types.

Executives also have mentors. In cases where the executive is new to the organization,

a senior executive could be assigned as a mentor to assist the new executive settled

into his role. Mentoring is one of the important methods for preparing them to be

future executives. This method allows the mentor to determine what is required to

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improve mentees performance. Once the mentor identifies the problem, weakness,

and the area that needs to be worked upon, the mentor can advise relevant training.

The mentor can also provide opportunities to work on special processes and projects

that require use of proficiency.

Some key points on Mentoring

Mentoring focus on attitude development

Conducted for management-level employees

Mentoring is done by someone inside the company

It is one-to-one interaction

It helps in identifying weaknesses and focus on the area that needs

improvement.

Job rotation

For the executive, job rotation takes on different perspectives. The executive is

usually not simply going to another department. In some vertically integrated

organizations, for example, where the supplier is actually part of same organization or

subsidiary, job rotation might be to the supplier to see how the business operates fromthe supplier point of view. Learning how the organization is perceived from the

outside broadens the executives outlook on the process of the organization. Or the

rotation might be to a foreign office to provide a global perspective. .

For managers being developed for executive roles, rotation to different functions in

the company is regular carried out. This approach allows the manger to operate in

diverse roles and understand the different issues that crop up.

.An organized and helpful way to develop talent for the management or executive

level of the organization is job rotation. It is the process of preparing employees at a

lower level to replace someone at the next higher level. It is generally done for the

designations that are crucial for the effective and efficient functioning of the

organization. .

Benefits of Job Rotation

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Some of the major benefits of job rotation are:

It provides the employees with opportunities to broaden the horizon of

knowledge, skills, and abilities by working in different departments, business

units, functions, and countries

Identification of Knowledge, skills, and attitudes (KSAs) required

It determines the areas where improvement is required

Assessment of the employees who have the potential and caliber for filling the

position

Job Instruction Technique (JIT) uses a strategy with focus on knowledge (factual and

procedural), skills and attitudes development

Procedure of Job Instruction Technique (JIT)

JIT consists of four steps:

Plan This step includes a written breakdown of the work to be done because the

trainer and the trainee must understand that documentation is must and important for

the familiarity of work. A trainer who is aware of the work well is likely to do many

things and in the process might miss few things. Therefore, a structured analysis

And proper documentation ensures that all the points are covered in the training

program. The second step is to find out what the trainee knows and

what training should focus on .Then, the next step is to create a comfortable

atmosphere for the trainees i.e. proper orientation program, availing the resources,

familiarizing trainee with the training program, etc.

PresentIn this step, trainer provides the synopsis of the job while presenting the

participants the different aspects of the work. When the trainer finished, the trainee

demonstrates how to do the job and why is that done in that specific manner. Trainee

actually demonstrates the procedure while emphasizing the key points and safety

instructions.

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Trial This step actually a kind of rehearsal step, in which trainee tries to perform

the work and the trainer is able to provide instant feedback. In this step, the focus is on

improving the method of instruction because a trainer considers that any error if

occurring may be a function of training not the trainee. This step allows the trainee to

see the after effects of using an incorrect method. The trainer then helps the trainee by

questioning and guiding to identify the correct procedure.

Follow-up In this step, the trainer checks the trainees job frequently after the

training program is over to prevent bad work habits from developing.

OFF THE JOB TRAINING METHODS:These methods require the trainees

to leave their work place and devote theirtime for undergoing training.

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The various off the job training methods a re

Special courses and lectures:

Some organizations like TATAs and Hindustan Lever, State bank of India, LIC, have

their employees toattend course of 1 or 2 week duration conducted by the institutes of

management, admininistrative staff college of India.)

Conferences:

in this method, managers and potential managersattend the conference programmes in

which they pool their ideas and experience with certain problems, which are a

common subject ofdiscussion. For example the conference may discuss specificproblemssuch as planning, delegation etc.

Case studies:

The case study method, which is popularized by theHarvard Business School, USA, is

one of the common forms of trainingto the employees. In this method,

instructor describes the actualsituation or problems of a specific concern and the

participants areencouraged to take part in the objective discussion of the problem.Thismethod increases the trainees power of observation and also hisanalytical ability.

Simulation:

In simulation, the real situation of work environment in anorganization is presented in

the training session. In other words, insimulation, instead of taking participants into

the field is simulated inthe training session itself.

Role-playing:

is one of the common simulation methods of training. Inrole-playing the participants

play his role or those of others underspecific conditions of simulation. Role-playing

enables the participantsto increase his skill in dealing with other people. In role-

playing, theparticipants play different roles for different situation and by this; theyare

enabled to deal with several problems from various angles.

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Sensitivity training:

This method aims to influence an individuals behavior through group discussion. In-

group discussion, the traineesfreely express their ideas, beliefs and attitudes. In

sensitivity training,the trainees are enabled to see themselves as other and develop

anunderstanding of others views and behavior.

CHAPTER-7

ADVANTAGES & DISADVANTAGE OF TRANING

ADVANTAGES OF TRAINING

Improves morale of employees- Training helps the employee to get job security

and job satisfaction. The more satisfied the employee is and the greater is his morale,

the more he will contribute to organizational success and the lesser will be employee

absenteeism and turnover.

Less supervision- A well trained employee will be well acquainted with the job

and will need less of supervision. Thus, there will be less wastage of time and efforts.

Fewer accidents- Errors are likely to occur if the employees lack knowledge and

skills required for doing a particular job. The more trained an employee is, the less are

the chances of committing accidents in job and the more proficient the employee

becomes.

Chances of promotion- Employees acquire skills and efficiency during training.

They become more eligible for promotion. They become an asset for the organization.

Increased productivity- Training improves efficiency and productivity of

employees. Well trained employees show both quantity and quality performance.

There is less wastage of time, money and resources if employees are properly trained.

General advantages:-

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1 Increased job satisfaction and morale among employees

2 Increased employee motivation

3 Increased efficiencies in processes, resulting in financial gain

4 Increased capacity to adopt new technologies and methods

5 Increased innovation in strategies and product

DISADVANTAGES OF TRAINING

Probably the biggest disadvantage to employee training is that it is too

expensive.

The wrong person is doing the training. It takes a special person to be a trainer;

they have to have a passion for training and they have to know what theyre

talking about.Employees being trained can quickly ascertain if the person

doing the training is knowledgeable, competent, and approachable. The wrong

trainer can do more harm than good.

Losing control of the training content. This is especially concerning if the

training is being conducted by an outside company. If the material being

presented is not whats needed for proper training, then the expense of that

employee training is wasted.

Orientation training is not specific. Its advantageous for each portion of the

training to be presented by a person who works in that department. If its asset

control, then someone from assets protection should conduct that portion of

employee training; if the topic presented is HR related, then bring in someone

from HR to lead that training.Too often one trainer is trying to present

everything, and much information is missed.

Sufficient time is not allowed for covering all the training material, and there

is not enough time for questions and answers. If the time allotted for training is

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insufficient for the amount of information in the training program, then either

more time needs to be set aside for the training, or less material needs to be

presented. If youre going to train employees, you might as well do it right.

Different learning levels of those being trained can cause some to be bored

because its too elementary or it may cause others to be frustrated because its

too complicated and the purpose of the employee training may be lost from the

start.

CHAPTER-8

EXPENDITURE ON EMPLOYEE TRANING

EMPLOYEE TURNOVER

1.COST

When accounting for the costs (both real costs, such as time taken to select and recruit

a replacement, and also opportunity costs, such as lost productivity), the cost of

employee turnover to for-profit organizations has been estimated to be up to 150% of

the employees' remuneration package. There are both direct and indirect costs. Direct

costs relate to the leaving costs, replacement costs and transitions costs, and indirect

costs relate to the loss of production, reduced performance levels, unnecessary

overtime and low morale.

In a healthcare context, staff turnover has been associated with worse patient

outcomes

2.INTERNAL VS. EXTERNAL TURNOVER

Like recruitment, turnover can be classified as 'internal' or 'external'.[6] Internal

turnover involves employees leaving their current positions and taking new

positions within the same organization. Both positive (such as increased

morale from the change of task and supervisor) and negative (such as

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project/relational disruption, or the Peter Principle) effects of internal turnover

exist, and therefore, it may be equally important to monitor this form of

turnover as it is to monitor its external counterpart. Internal turnover might be

moderated and controlled by typical HR mechanisms, such as an internal

recruitment policy or formal succession planning.

3.SKILLED VS. UNSKILLED EMPLOYEES

Unskilled positions often have high turnover, and employees can generally be

replaced without the organization orbusiness incurring any loss of performance.

The ease of replacing these employees provides little incentive to employers to offer

generous employment contracts; conversely, contracts may strongly favour the

employer and lead to increased turnover as employees seek, and eventually find, more

favorable employment.However, high turnover rates of skilled professionals can pose

as a risk to the business or organization, due to the human capital (such as skills,

training, and knowledge) lost.

4.VOLUNTARY VS. INVOLUNTARY TURNOVER

Practitioners can differentiate between instances of voluntary turnover, initiated at the

choice of the employee, and those involuntary instances where the employee has no

choice in their termination (such as long term sickness, death, moving overseas, or

employer-initiated termination).

Typically, the characteristics of employees who engage in involuntary turnover are no

different from job stayers.However, voluntary turnover can be predicted (and in turn,

controlled) by the construct of turnover intent.

5.CAUSES HIGH AND LOW TURNOVER

High turnover often means that employees are unhappy with the work or

compensation, but it can also indicate unsafe or unhealthyconditions, or that too few

employees give satisfactory performance (due to unrealistic expectations,

inappropriate processes or tools, or poor candidate screening). The lack of career

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opportunities and challenges, dissatisfaction with the job-scope or conflict with the

management have been cited as predictors of high turnover.

Low turnover indicates that none of the above is true: employees are satisfied, healthy

and safe, and their performance is satisfactory to the employer. However, the

predictors of low turnover may sometimes differ than those of high turnover. Aside

from the fore-mentioned career opportunities, salary, corporate culture, management's

recognition, and a comfortable workplace seem to impact employees' decision to stay

with their employer.

Many psychological and management theories exist regarding the types of job content

which is intrinsically satisfying to employees and which, in turn, should minimise

external voluntary turnover.

Examples include Hertzberg's Two factor theory,McClelland's Theory of Needs, and

Hackman & Oldham's Job Characteristics ModelThomas suggests that there tends to

be a higher level ofstress with people who work with or interact with a narcissist,

which in turn increasesabsenteeism and staff turnover.

Investments

Alternatively, low turnover may indicate the presence of employee 'investments' (alsoknown 'side bets') in their position: certain benefits may be enjoyed while the

employee remains employed with the organization, which would be lost upon

resignation (e.g. health insurance, discounted home loans, redundancy packages, etc.).

Such employees would be expected to demonstrate lower intent to leave than if such

'side bets' were not present.

6.HOW TO PREVENT TURNOVER

Employees are important in any running of a business; without them the business

would be unsuccessful. However, more and more employers today are finding that

employees remain for approximately 23 to 24 months, according to the 2006 Bureau

of Labor Statistics.

The Employment Policy Foundation states it costs a company an average of $15,000

per employee, including separation costs, paperwork, unemployment; vacancy costs,

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including overtime or temporary employees and replacement costs including

advertisement, interview time, relocation, training and decreased productivity when

colleagues depart.

Providing a stimulating workplace environment, which fosters happy, motivated and

empowered individuals, lowers employee turnover and absentee rates.] Promoting a

work environment that fosters personal and professional growth promotes harmony

and encouragement on all levels, so the effects are felt company wide.

Continual training and reinforcement develops a work force that is competent,

consistent, competitive, effective and efficient. Beginning on the first day of work,

providing the individual with the necessary skills to perform their job is important.

Before the first day, it is important the interview and hiring process expose new hires

to an explanation of the company, so individuals know whether the job is their best

choice. Networking and strategizing within the company provides ongoing

performance management and helps build relationships among co-workers.

It is also important to motivate employees to focus on customer success, profitable

growth and the company well-being . Employers can keep their employees informedand involved by including them in future plans, new purchases, policy changes, as

well as introducing new employees to the employees who have gone above and

beyond in meetings.

Early engagement and engagement along the way, shows employees they are

valuable through information or recognition rewards, making them feel included.

When companies hire the best people, new talent hired and veterans are enabled to

reach company goals, maximizing the investment of each employee. Taking the timeto listen to employees and making them feel involved will create loyalty, in turn

reducing turnover allowing for growth.

7.CALCULATION

Labour turnover is equal to the number of employees leaving, divided by the average

total number of employees, multiplied by 100 (in order to give a percentage value).

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The number of employees leaving and the total number of employees are measured

over one calendar year.

For example, in a business with an average of 300 employees over the year, 21 of

whom leave, labour turnover is 7%. This is derived from (21/300)*100.

CHAPTER-9

CONCLUSION

Enterprises often distinguish themselves by offering excellent training

opportunities, thereby attracting the best applicants and creating the most

productive employees. Unfortunately, a new study claims that employers may

actually be increasing turnover by making their employees more qualified for

job opportunities elsewhere.

Employee training can be the difference between a trim, efficient workforce and a

bloated, incompetent one that wastes enterprise resources and ultimately shrinks the

bottom line. As a result, U.S. businesses spend about $134 billion yearly training theirworkers. Unfortunately, a new study at the University of Iowa maintains that much of

that money is wasted, since it merely makes employees more qualified to take better

paying jobs at other companies.

Compounding the problem is the fact that by increasing turnover, the additional

expense of finding, hiring and training new employees is increased as well, driving up

costs and further sinking the bottom line.The problem, according to University of

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Iowa professor Scott Seibert, is that employee training does not by itself instill loyalty.

Professional development by itself merely creates the hunger for better opportunities.

The key to making employee training programs pay off, is to couple professional-

development programs with a clear path to career advancement.

"Only those employees who can see a way forward in their careers will stay with an

employer," said Seibert. "Otherwise, professional-development opportunities might

simply make their workers more employable by other firms."

Seibert and fellow professor Maria Kraimer based their conclusions on a survey of

246 employees, who were asked whether their company had provided adequate

professional-development programs as well as whether the company also had career-

advancement opportunities in-house. The results showed that the employees who took

advantage of professional-development programs planned to stay on only if the

training was coupled with attractive career possibilities. Otherwise, they were happy

to receive the training, but felt no obligation to stay on; in fact, they felt the opposite

way and started almost immediately looking for career-advancement opportunities

elsewhere.

"When career opportunities are low, development support was not related to

performance, and it actually increased turnover," said Kraimer.

The enterprise that coupled training with a clear path to career advancement, on the

other hand, was able to retain their employees and boost their company's overall

productivity.

The most surprising finding of that study was that "career advancement" did not

correlate directly with promotions and raises. In fact, many employees said that job

rotation, mentoring opportunities and an improved relationship with their boss created

the feeling that career opportunities were available.

"Career opportunities are perceptual in nature, so raising perceived career

opportunities for employees may be largely a matter of letting employees know more

about the range of possibilities that are already available within the organization," the

researchers wrote in their study entitled: "Antecedents and Outcomes of

Organizational Support for Development: The Critical Role of Career Opportunities."

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The study, co-authored by professors Sandy Wayne and Robert Liden of the

University of Illinois-Chicago and professor Jesus Bravo of Arizona State University,

will be published in the Journal of Applied Psychology.

BIBLOGRAPHY

Referred sites :

www.google.com/employeerecord.html

www.wikipedia/turnoverresult

Research Paper :

The Economic Journal by Acemogl.D. and Pischke.J.Iss.Deyand .

Job Openings and labour Turnover Survey by Bureau Of LabourStatistics.
http://www.google.com/employeerecord.htmlhttp://www.wikipedia/turnoverresulthttp://www.google.com/employeerecord.htmlhttp://www.wikipedia/turnoverresult

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