nit- 2 (Two)

HUMAN RESOURCE PLANNING

Human Resource Planning

•      Predetermining HR needs in terms of quality & quantity

•      Estimating the size & composition of future workforce

•      Due to the dynamic nature of environment – technological change,

globalization, change in nature of job, OD, shortage & requirement of

critical skills led to importance of HRP

•      HRP is the process of determining an organization’s HR needs -

Decenzo &Robbins

Human Resource Information System

•      HRIS is a device for providing skill inventory information

•      Computer based data system for systematically track most of the

information about employee and jobs

•      Collect, analyze, store, retrieve & disseminate information about employees

&job

•      Useful for storing employment, training and compensation information on

each employee

Contents of HRIS

a)      Personal data- name, address, dob, marital status

b)      Skill data- qualification, training, special skills, capabalities, language

spoken etc

c)      Position data- current position, duties, responsibilities, occupational

history, jobs held in other organizations, work locations etc.

d)      Compensation data- current salary, salary history, bonus, overtime

payments, deduction from salary, tax information,award received etc.

e)      Performance data- current & past performance appraisal data

Uses of HRIS

•      Human resource inventory development

•      Human resource forecast

•      Human resource development

•      Job analysis

•      To make succession and replacement planning

•      To determine current & probable productivity of employee

•      Establish link between corporate objectives & strategies, corporate planning

& HR planning

Human Resource Inventory

•      Skill inventory of HR currently employed in the organization

•      It includes – names,education, training, salary level, languages spoken,

capabalities & specialized skills of all employees

From HRP viewpoint,

•      What skills are currently available in the organization

•      Can take advantage of opportunities to expand or alter the organization’s

strategies

•      Useful in- training need assessment, promotion & transfer

•      To identify current or future threats to organizations ability to perform

•      Staff turnover rate, sickness & absenteeism rate,etc.

HRP Process

1. Assessing current human resources

-          Human resource inventory, HRIS, Job analysis

2. Forecasting HR demand- external environmental forces, organizatinal

objectives, business plan, succession plan, workforce factors such as:- work

load norms, employee reallocation, seperation, turnover, contingent

workforce

-          Management judgement, expert forecasts, statistical analysis may be used

to forecast demand

3. Forecasting HR supply

-          Internal sources forecasts: potential additions & losses to HR inventory,

-          External sources forecast- education & training institute, labour market etc

4. Matching demand and supply forecast- shortage & surplus

5. Preparation of action plan

-          Recruitment action plan

-          Development action plan

-          Retention action plan

-          Redeployment action plan

-          Redundancy action plan

-          Promotion & succession action plan

Unit: 3 (Three)

JOB ANALYSIS

Job analysis:

The process of studying and collecting informations relating to the

operations and responsibilities of a specific job. The immediate product of

this analysis are job description and job specification.

It analyze the content & characteristics of the job and requirements/

qualifications needed to perform those jobs.

Job description:

Job description is an organized, factual statement of the duties and

responsibilities of a specific job.

It should tell what is to be done, how it is done, and why. It is a standard of

function. It defines the authorized content of the job. It contains : job title,

location, job summary, duties, machine, tools and equipments, materials

used, supervision given or received, working conditions, hazards etc.

Job specification

A statement of the minimum acceptable human qualities necessary to

perform a job properly. It is a standard of personnel and designates the

qualities required for acceptable performance.

A statement of human qualifications necessary to do the job. Usually

contains such items: education, experience, training, judgement, initiative,

physical effort, physical skills, communication skills, emotional

characteristics, sensory demands such as sight, smell, hearing and many

others depends upon the nature of job.

Uses of Job analysis

•      HRP- number & types of human resource are determined by the jobs which

need to be staffed. Job related information is provided by JA.

•      Recruitment & selection- an understanding of the types of skills needed

and the types of job that may open in future helps HR manager to plan

recruitment and knowledge about the work to be done and qualifications

needed helps to select right person- match the right people with the right

job.

•      Training & development- what a given job demands from the incumbents

in terms of knowledge & skills? Training & development programmes can

be designed depending on the job requirements.

•      Job evaluation- determination of relative worth of each job to determine

wage & salary differentials. Relative worth is determined mainly on the

basis of job description & specification.

•      Remuneration- remuneration should be based on relative worth of each

job. Employee need to be compensated on the grades of the job which they

occupy. Otherwise feeling of inequity may arise.

•      Performance appraisal- Job Analysis helps to fix standards for

performance in relation to which actual performance is compared and

assessed.

•      Safety & health- provides information regarding hazardous conditions,

unhealthy environmental factors. So that corrective measures can be taken

to minimize and avoid the possibility oh human injury.

•      Personnel information- planning, acquisition, development, utilization and

remuneration purpose Job Analysis helps by providing information.

Methods of collecting Job information

•      Observation- job analyst carefully observes the job holder at work and

records what & how s/he does and how much time is needed for completion

of given task.

•      Interview- job analyst interviews the job holder & supervisor about the job.

Generally structured form is used. The analyst must make judgements about

the informations to be included and its degree of importance.

•      Questionnaire- job holder fill in the given structured questionnaire, which

are then approved by their supervisor.

•      Checklists- similar to questionnaire, but the response-sheet contains fewer

subjective judgements and tends to be either yes-or-no variety. It can cover

many activities but job holder has to tick only those tasks that are included

in their jobs.

•      Technical conference method- a conference of supervisor who possess

extensive knowledge about a job are used.

•      Diary method- job holders records in detai their activities each day in a

diary.

JOB ANALYSIS TECHNIQUES

1. Job focused techniques

•      Functional job analysis (FJA) -Functional job analysis (FJA) - used to analyze the nature of jobs in terms of

data, people and things. Information collected is categorized under those

three associated functions.

•      Management position description questionnaire (MPDQ) –Management position description questionnaire (MPDQ) – designed to

analyze managerial position. Job analyst use a checklist containing 197 job

factors related to managerial concern & responsibilities. A statistical

analysis on job factors will be conducted to find the different job factors

relating to the position of individual managers.

2. Job analysis techniques

•      The hay plan- analyse managerial jobs. since executives are engaged in

numerous tasks it is difficult to specify their duties and responsibility. Hay

plan is based on interview between job analyst & the person in the job.

Information gathered using Hay plan relates to four aspects of managerial

job: i) objective of the job ii) dimensions to be covered by the job holders in

that position iii) nature & scope of the position iv) accountability

Purpose : recruitment, selection, placement, job evaluation, management

development & organizational analysis.

•      Metods analysis – analysis of non managerial job. Studies motion at work.

Method analysis is used in organizations that rely heavily on human labour

to carry out repetitive and routine tasks accurately & efficiently.

•      Person or behaviour- focused technique.

•      Position analysis questionnaire (PAQ) – to find the personal or

behavioral requirements for performing a job. PAQ contains 194 items. 194

job items are categorized in 5 job dimensions:

                                i)            Job dimension relating to decision making /communication/

social responsibilities

                              ii)            Relating to performing skilled activities

                            iii)            Relating to physical activities/ environmental conditions

                            iv)            Relating to operating vehicles/ equipment

                              v)            Job dimension relating to information processing.

All jobs are categorized under above 5 job dimensions. Information is

collected through using a position questionnaire.

1.      Person or behaviour- focused technique.

2. Physical abilities analysis (PAA) – analyse the physical abilities/

strengths required by job holders to perform the jobs.

3. The critical incident technique (CIT)- critical job incidents that

represents effective or ineffective performance. This techniques

identifies the crical incidents that occured durung last 6 to 12 months.

Desirable or undesirable.

4. Guidelines-oriented job analysis (GOZA)- GOZA techniques analses job

after completion of following steps:

                                i)            Listing the job domains of the incumbents

                              ii)            List the important or critical duties typically requiring person to

perform in a job

                            iii)            Determine how frequently these critical duties are required to be

performed & their importance

                            iv)            Determine requisite skills/ knowledge

                              v)            Determine physical characteristics

                            vi)            Describe other characteristics

JOB ANALYSIS PROCESS

Six steps in doing job analysis- According to Dessler

1. Decide how you will use the information- it helps to determine the

types of data and methods to collect.

2. Review relevant background information- such as organization chart,

process chart & job description

3. Select representative positions- because there may be too many

similar jobs to analyse. Eg. It is usually unnecessary to analyse the

jobs of 200 assembly workers when a sample of 10 jobs will do

4. Actually analyse the job- by collecting data on job activities, required

employee behavior, working conditions and human traits and abilities

needed to perform the job. Use one ore more methods and techniques

of Job Analysis.

5. Verify the job analysis information- with job holder & immediate

supervisor to confirm that informations is factually correct &

complete.

6. Develop a job description and job specification-

Unit: 4 (Four)

RECRUITMENT

Recruitment is the process of searching for and obtaining applications so as

to build a pool of job seekers from whom the right people for the right jobs

may be selected.

         The purpose of recruitment is to build a pool of applicants.

         Recruitment represents the first contact an organization makes with

potential employees.

         It is through recruitment that many individuals will come to know a

company and eventually decide whether they wish to work for it.

         It is an ongoing process because employee leave the firm in search of

greener pastures-some retire and some die in the saddle.

         More importantly, an enterprise grows, diversifies, takes over other units-

all necessitating hiring of new employees.

         In fact, the recruitment function stops only when the company ceases to

exist.

         Theoretically, recruitment process is said to end with the receipt of

application.

FACTORS AFFECTING RECRUITMENT

1)      External factors

a.      Supply and demand- If the demand for a particular skill is high relative to

the supply, an extraordinary recruiting efforts may be needed. The situation

of demand and supply of specific skills affects recruitment.

b.      Unemployment rate- If unemployment rate is high, recruitment process

becomes simpler because large number of people can be attracted with

minimum effort.

c.      Labor market- Availability of manpower in a local area, specially for non-

managerial, supervisory and middle- management positions and in the

country level for executive and professional positions has effect on

recruitment.

d.      Political-legal- Reservations of jobs for scheduled castes, scheduled

tribes, minorities and other ethnic and backward classes, child labor act

have effect on recruitment.

e.      Sons of soil- Preferences to local or people of their respective state in

matters of employment.

f.        Image- It is the perception of the job-seekers about the company that

matters in attracting qualified prospective employees.

2. Internal factors:

a.      Recruitment policy- Recruiting internally or externally, recruitment of

local citizens, policy of temporary and part time workers.

b.      Human resource planning- A company cannot attract prospective

employees in sufficient numbers and with required skills overnight. It takes

time. Effective HRP greatly facilitates the recruiting efforts.

c. Size of the firm- Bigger the size less problematic.

d. Cost- Cost incurred in recruitment process, must operate within

budgets, multiple job openings simultaneously may minimize cost.

e. Growth & expansion- An organization going on growth and

expansion will have more recruiting on hand than the one which finds

its fortune declining.

RECRUITMENT METHODS

1.       Internal methods:

  Job posting, employee referral, human resource inventory search

  Internal sources

a)      Present employees- Promotion, transfers, job rotation

b)      Employee referrals- “finders fees”, Microsoft, Wipro, Infosys, Texas

instrument

c)      Formers employees- Retired employees may be willing to come back on

part time basis, may recommend someone, people who have left the

company for some reasons or other are willing to come back and work

d)      Previous applicants- Although not truly an internal source, can be

contacted quickly to fill an unexpected opening.

2.      External methods/sources:

a)      Advertisement –

b)      Professional or trade associations-

c)      Employment exchange-

d)      University/colleges-

e)      Walk-ins, write-ins and talk-ins-

f)       Consultants-

g)      Contractors-

h)      Competitors-

i)        E-recruiting-

ALTERNATIVES TO RECRUITMENT

Organizations search for alternatives to recruitment because of the cost of

recruiting. The alternatives to recruitments are:

a)      Overtime-

b)      Employee leasing- Staff outsourcing, paying charges to a leasing company

or consulting firm that handles payroll, employee benefits and routine HR

functions for the client company.

c)      Temporary employment

Unit- 5 (Five)

SELECTION

Selection is the process of choosing among people who apply for work with

an organization. Selection process is a series of steps used to decide which

recruits should be hired.

Steps in selection:-

Application form evaluation-> selection tests-> selection interview->

reference checks-> physical examination-> hiring decision

Selection methods

Qualification and experience method, work proficiency method, written test

method, interview method, written test and interview method,

comprehensive selection method.

Selection Tests

a.      Intelligence tests

Tests of general intellectual abilities. They measures not a single trait but

rather a range of abilities such as- reasoning, vocabulary, verbal fluency,

numerical abilities, memory etc.

b.      Aptitude tests

It measures whether an individual has the capacity or latent ability to learn

a given job if given adequate training. A capacity to learn in the future. To

select person who will show a higher degree of success after the training

period. Specific capacities or aptitudes are- mechanical, clerical, linguistic,

musical, academic etc.

c.      Achievement tests

Concerned with what one has accomplished. When applicants claim to know

something, an achievement test is given to measure how well they know it.

Trade tests such as- electricians, typing, dictation, computer operator,

machinists etc. It helps to shows the demonstrable relationship and job

performance.

d.      Personality tests

It measures personality attributes of candidate such as emotional stability,

confirmity, agreeableness, extroversion, smartness etc.

e.      Interest tests/Vocational tests

Most organization realize that a person who is interested in a job or tasks

will do much better than who is uninterested. In this test applicants is asked

whether s/he likes, dislikes the particular occupation, activities, peoples.

Interest in specific profession and occupation is tested. Measures

candidates preference in different types of job.

f.        Situation tests

It evaluates the candidate’s behavior in a particular situation or in a

situation which is similar to some aspects of the job to be done in the

future.

g.      Test batteries

This test helps to fit candidate with wide array of jobs. This test covers

abilities such as- verbal, numerical, intelligence, finger and manual

dexterity etc.

Selection Interview

An interview is a procedure designed to obtain information from a person

through oral responses to oral inquiries.

A selection procedure designed to predict future job performance on the

basis of applicant’s oral responses to oral inquiries.

Managers uses several types of interviews, such as: selection, appraisal and

exit interviews

Types of selection interviews - Gary Dessler

1. Stuctured or Directive interview: An interview following a set

sequence of questions. The questions and acceptable responses are

specified in advance and the responses are rated for appropriateness

of content.

2. Unstructured or Nondirective interview: An unstructured

conversational- style interview in which the interviewer pursues

points of interest as they come up in response to questions. Generally

no set format to follow. Interview for the same job may or may not get

the similar questions. A few questions may be specified in advance.

3. Situational interview: A series of job related questions that focus on

how the candidate would behave in a given situation. Asks

interviewees to describe how they would react to a hypothetical

situation today or tomorrow.

4. Behavioral interview: A series of job related questions that focuses

on how the candidate reacted to actual situations in the past. Asks

interviewees to describe how they reacted to actual situations in the

past.

5. Job related interview: A series of job related questions that focuses

on relevant past job related behaviors. Asks job related questions to

draw conclusions about what the applicant’s on the job performance

will be based on his or her answers to questions about past

experiences.

6. Stress interview: An interview in which the applicant is made

uncomfortable by a series of often rude questions. This technique

helps identify hypersensitive applicants and those with low or high

stress tolerance.

7. semi-structured interview: major questions to be asked are planned

in advance and are same for all candidates but other questions vary

from candidate to candidate. Interviewer are provided some flexibility.

Puzzle questions: Recruiter for technical, finance, and other types of job

like to use them to see how candidates think under pressure. E.g. An

interviewer at Microsoft asked a tech service applicant this: ”Mike & Todd

have $ 21 between them. Mike has $ 20 more than Todd. How much money

has Mike and how much money has Todd?”

Administering interview:

•      Personal or Individual interview

•      Panel Interview

•      Serial Interview

•      Mass Interview

•      Telephone Interview

•      Computerized Interview

Reliability and Validity of Tests

•      Reliability-Reliability- It refers to the degree of consistency of results obtained. If a test

possesses high relaiability , a person who is tested a second or third time

with the same test under the same condition will obtain approximately the

same score.

•      Validity-Validity- It refers to the relationship between the test score and performance

on the job (accuracy). It is concerned with measuring important

characteristics related to job behavior.

Types of validity

        i)            Content validity-Content validity- such a test can approximate the work to be done on

the job.e.g. Typing test

      ii)            Construct validityConstruct validity- is the degree to which a particular trait is related to

successful performance on the job. Measurement of psychological quality of

applicants such as intelligence (abstract in nature). Usually conducted by

industrial psychologist by observig various behavior of the applicant and

measuring how these behavior or traits relate to the job.

    iii)            Criterion related validity-Criterion related validity- the degree to which a particular selection

device accurately predicts the important elements of work behavior.

Relationship between the test scores and job performance.

To establish criterion related validity one of two measures can be used

a)      Predictive validty-Predictive validty- the degree to which test scores determine the future job

behavior of the candidate. Present test score is compared with actual

performance of the candidate generally after a year. If no clear relationship

exists, then the test may have to be revised. (probationary period)-

training,transfer, discharge (handle).

b)      Concurrent validity-Concurrent validity- it validates tests using current employees as the

subjects. The scores from the current employees are immediately analyzed

with their previous performance appraisal report. If there is a relationship

between test scores and performance, then a valid test has been found.

Predictive validity can be used as screening device where as concurrent

validity acts on current employees.

Unit- 7 (Seven)

TRAINING AND DEVELOPMENT

Training refers to the imparting of specific skill, abilities and knowledge to

employee ( development of those employees who do not supervise activities

of others, operative level)

System and practices get outdated due to new discoveries in technology,

including technical, managerial and behavioral aspects. In this context

training enhances the knowledge, skills and attitudes of employees to

increase efficiency and effectiveness on the prsent job as well as expected

future job.

The objective of training is to achieve a change in the behavior of those

trained. It is expected that employees apply their newly acquired knowledge

& skill on the job in such a way as to aid in the achievement of

organizational goal.

Need of training

Training directly contributes to the development of human resources. It is

the most widely used HRD mechanism in the world for the development of

human resources. It plays a great role in determining the efficiency and

effectiveness of the organization.

-          Improved performance

-          Fill manpower needs

-          Prevent obsolescence

-          Aid in solving operational problems

-          Attitude formation

-          Improve health and safety

-          Benefit to employees themselves

Determining training needs

Training need is a gap between the existing capabilities of an employee and

the requirement of the job.

Job requirement – employee capability = training needs

Methods of determining training needs

1. Management audit method

Environmental assessment- environmental (political-legal, economic, socio-

cultural, technological) changes are identified to determine training needs.

•      Objectives, strategies and structure change- training needs are identified to

manage such changes.

2. Task analysis method

Collection and analysis of task related information- performance standards

for each task are set- details are found about how tasks are done- training

needs are identified for effective task performance. Job description, job

specification, job performance standard

3. Performance analysis method

        i.      Organizational performance method-Organizational performance method- specifies desired performance

standard. Overall performance such as- goal achievement, production

performance, quality control, sales performance,cost, absenteeism, labour

turnover,accident rates etc. It determines the overall training needs.

      ii.      Employee performance analysis-Employee performance analysis- identifies actual performance on the

current job. Performance deficiencies and problem faced by the employees

are identified to determine training needs through- employees performance

appraisal reviews, career planning discussion, exit interview, performance

test etc.

4. Supervisory recommendation method

In this method supervisor identify gap in knowledge and skills and

recommend needed training for the employees.

5. Training need survey method-

In this method direct questioning is used to gather opinion about training

needs through individual survey (each employee), group survey (group of

present employees, former employees and supervisors). The result of survey

becomes training needs. Competency survey- experts are asked to give

opinion on desired competencies to perform the job effectively. This desired

competencies determines training needs.

TRAINING PROCESS

1. Organizational objectives and strategies- what business are we in? At

what level of quality do we wish to provide this product or service?

Where do we want to be in the future?

2. Assessment of training needs-

Job requirement – employee capability = training needs

3. Establishment of training goals- clear behavioral standard of expected

results are necessary so that training programme can be effectively

designed and results can be evaluated. It should be SMART.

4. Designing training programme- every training programme must address

certain vital issues-

i) who are the participants or trainees

ii) who are the trainers

iii) what methods and techniques are to be used for training

iv) what should be the level of training

v) what learning principles are needed

vi) where is the programme conducted

(vi) how far the program has been useful must be judged to get feedback.

5. Implementation of training programme- once the training programme has

been designed, it needs to be implemented. Programme implementation

involves:

i) deciding the location and organizing training and other facilities

ii) scheduling the training programmes

iii) conducting the programme

iv) monitoring the progress of trainees.

6. Evaluation of the programme- since huge sum of money and time are spent

on training programme, how far the program has been useful must be

judged to get feed back.

Types of training

•      Apprenticeship training- learning by doing under the guidance of

experienced worker- craft & technical areas- mechanics, jewellers,

carpenters..

•      Job instruction training (JIT)- specially useful for preparing supervisors

to train operatives. Also known as ”training through step-by-step learning”

steps:

i) Preparation- providing informations about job, duties and responsibilities to

the trainees.

ii) Presentation- providing essential information in a clear manner by

positioning the trainees at work site, telling & showing them each step of

the job, stressing why and how each step is carried as it is shown.

iii) Practise- having the trainee try out the job to show that s/he has understood

the instructions, if there are any errors they are corrected.

iv) Follow-up- encouraging the questions and allowing the trainee to work

alone. Trainer follow up regularly.

It provides immediate feedback, quick correction of error and provision of

extra practise if required. It is based on the principle, ”if the learner has not

learned, the teacher has not taught.”

•      Internship training- trainee is trained on the job by immediate superior.

Working as a ”assistant to” type of position. Student of technical and

professional subjects are sent to organizations to get practical experience of

theoretical knowledge they have learnt in colleges. Trainee work as an

employee for specific period.

Off-the-job training

•      Lectures-

•      Seminars- small group meeting conducted according to an organizational

plan. Generally trainees sit facing one another around a conference table

where instructor introduce the topics and invites views from the

participants on problem areas related to the topics. Participants are

expected to make some views and ask questions. Learn not only from the

instructor but also from each other.

•      Role playing- trainees are assigned parts to play infront of the class. The role

players are provided either with written or oral descriptions of a situation

and the role they are to play. It provides an opprtunity for trainees to

actually put in to practise the knowledge they have observed from text

book, lectures and discussions.

•      Simulation- a techniques that duplicates as nearly as possible the actual

conditions encountered on the job. It is abstraction of real working

conditions in the lab or class room. Trainees are placed in such an artificial

environment which looks alike the real working place & condition.

Case study- from the written description of the actual business situation the

trainees determine problems, analyze causes, develop alternative solutions

and select the best alternatives as accurately as possible and implement it

as manager faces and tackles. Provides opportunity to expose their

analytical and judgemental abilities.

Evaluating training programme

The main objective of evaluating the training programme is:

•      to determine if they are accomplishing specific training objectives, that is

correcting performance deficiencies.

•      To ensure that any changes in trainee’s capability is due to training

programme and not due to any other condition.

•      To determine their cost effectiveness.

•      Finally, credibility of training is greatlt enhanced when it is proved that the

organization has benefitted tangibly from it.

Criteria for evaluation

Criteria used for evaluating training effectiveness:

1. Reaction criteria- reaction measures reveal trainees’ opinions

regarding the training programme.

2. Learning criteria- learning measures assess the degree to which

trainees have mastered the concepts, knowledge and skills of training.

3. Behavior change criteria- behavior indicates the performance of

learners. Changes in job behavior.

4. Organizational results- examine the impact of training on the work

group or the entire company.

Process of training evaluation

Steps:                    i.            Setting intended standards

                  ii.            Measuring actual outcomes

                iii.            Finding deviation

                iv.            Corrective action

Methods for evaluating training progarmmes

1. Observation method

Observation method is done by closely observed during the training

programme. Performance in practical work situation, participation in

discussion, role play, timing , presentation method. The errors are carefully

observed and recorded.

2. Test-retest method

In this method participants are given a test to establish their level of

knowledge before they enter the training programme. After the completion

of training, they retake the test. The change in test scores indicate the

change in the level of knowledge resulting from training.

3.      Pre-post performance method

The actual job of each participants is evaluated and rated prior to training.

After the training the participant’s job performance is reevaluated. Changes

in job performance is attributed to training.

4.      Experimental control group method

Two groups are formed. One group is control group whose members work

without undergoing training. Another group is experimental group whose

member undergo training. Two groups are evaluated at the end of the

training. If the performance of the experimental group improves, training is

regarded effective.

5.      Training surveys

Direct questioning to trainees to get reaction, generally after the end of

training participants are asked to fill-up form containing- physical facilities,

achievement of training objectives, contents, trainer effectiveness,

suggestions for improvement etc.

6.      Cost effectiveness analysis

It assesss total value of training benefits against total cost of training.

Training is effective if benefit exceeds costs.

MANAGEMENT DEVELOPMENT

•      All those persons who have authority over others and are responsible for

their activities & for the operations of an enterprise are managers.

•      Any activity designed to improve the performance of existing managers to

provide for a planned growth of managers to meet future requirements is

management development.

•      A systematic process of training & growth by which manegerial personnel

gain & apply skill, knowledge, attitudes & insight to manage the works in

their organization.

Purpose:

•      Increase managerial capabalities

•      Enhance managerial effectiveness

•      Facilitate environmental adaptation

•      Improve managerial decision making

•      Facilitate managerial succession & career development

•      Aid managerial job satisfaction & retention

MANAGEMENT DEVELOPMENT METHOD

1.       On the job

a.          Coaching: when manager takes an active role in guiding another

manager, it is called coaching. If the coaching is done by someone other

than immediate supervisor/manager, it is called mentoring. Coach sets goal,

tells what, how, when it is to be done, follow up suggestions & correct

errors. The effectiveness of this techniques on the ability of the coach.

b.         Understudy assignments: potential managers are assigned to work

under experienced manager with a title ”assistant to”. S/he has to learn

about the full duties & responsibilities of the position currently held by his

superior. Learns the complexities of problem that superior has faced and

how to solve them, also learns decision making process. In the absence of

superior has to work as ”acting” of superior. Organization ensures that a

fully trained persons are available to replace manager during long absence,

illness, transfer or promotion.

c.          Job rotation

transfer or movement of executives from one job to another. The purpose is

to provide diverse knowledge or overall knowledge and familiarizing with

the different sectionsl job before they are posted as managers in the

department.

d.         Committee assignments

Techniques where juniors are assigned to board or committes by the chief

executives. In these committees, real problems are discussed, different

views are debated and decisions are taken. The juniors get an opportunity

to share in managerial decision making, to learn by watching others and to

solve specific organizational problems.

2.      Off- the- job development

a.      Sensitivity training

method to develop or changing behavior through group processess. Small

group gather in unstructured learning situation where they discuss &

interact with themselves. This discussion is facilated by professional

behavioral scientist. Objectives are:

•      Improved understanding of how & why trainees act toward others and how

their action affect others.

•      Insight in to why others act the way they do

•      Improved listening skill

•      Insight in to how group operates

•      Increased tolerance & understanding of others

•      Experimentation with new ways of acting toward people & feedback about

how these new ways affect people

Group experience designed to provide maximum possible opportunity for

the individuals to expose their behavior, give & receive feedback,

experiment with new behavior & develop awareness of self & of others.-

Chris Argyris

1.       Transactional analysis

Used to improve interpersonal relations. In TA trainess are taught to

analyze their interactions with others in terms of ego state being expressed.

Basic assumptions of TA is that every individual personality holds three ego

states: the parent, child and adult. The parent state is an ego state of

authority & superiority. They are usually dominant, scolding and

authoritative and they use frequently such words as ”should”, ”ought” and

”mustn’t”. The child contains all the influence that are natural to an infant,

that is why they are emotional and acts according to the feeling of moment.

So in this ego state person may be obedient or manipulative, charming at

one moment and repulsive the next. The adult stage is objective and

rational. The adults deals with hear & know reality, listens with an open

mind, state opinions, and actively engaged in probability estimating &

rational decision making. It has been suggested that one who generally is

low in parent, high in adult and high in child is likely to be most effective in

dealing with others.

3. Lecture/seminar course

4. Simulation exercise etc.

Unit- 8 (Eight)

CAREER PLANING AND DEVELOPMENT

•         A career is a sequence of positions occupied by a person during the course

of a lifetime.- Decenzo & Robbins

•         Career is a sequence of separate but related work activities that provides

continuity, order and meaning in a person’s life.- Edwin Flippo

•         A career is all the jobs that are held during one’s working life.

•         A career path is the sequential pattern of jobs that form a career.

•         Career goals are the future positions one strives a part of career.

•         Career planning is the process by which one selects career goals and the

path to these goals.

The main purpose of career planning is to integrate individuals’ and

organizational growth needs.

•         It helps to develop individuals and groups, provides opportunities and

challenges and strengthens work cultures.

•         To increase managerial competence

•         To attract competent person and retain them in the organization

•         To provide suitable promotional opportunities

•         To enable the employees to develop and make them ready to meet the

future challenges

•         To increase the utilization of managerial reserves within an organization

•         To correct employee placement

•         To reduce employee dissatisfaction and turnover

•         To improve motivation and morale

PROCESS OF CAREER PLANING:

1. Self-assessment by employees-

2. Exploring opportunities-

3. Identification of occupational orientation

4. Identification of high potential occupation-

5. Setting career goals to meet the career issues-

6. Setting career plans-

7. Implementing career plans-

CAREER DEVELOPMENT

•         Career development consists of personal improvements undertaken by the

individual employee, training, development and educational programs

provided by the organization and various institutes.

•         The career development is the process of guiding the placement,

movement, and growth of employees through assessment, planned training

activities and planned job assignment.

•         The most important aspect of career development is that every employee

must accept their responsibility for development.

•         Various career development actions prove useful if an employee is

committed to career development.

The career development actions are:

•         Job performance- Employee must prove that their performance on the job is

to the level of standards established, if they wants career development.

•         Exposure- They should expose their skills, knowledge, qualifications,

achievements, performance etc. to those who take the decision about the

career progress.

•         Resignation- Employee may resign the present job, if they find career

opportunities elsewhere are better than those of the present organization.

•         Change the job- Employees who put organizational loyalty above career

loyalty may change the job in the same organization if they find that career

opportunities in other jobs in the same organization are better than those of

present job.

•         Career guidance- Counseling provides, information, advice and

encouragement to switch over to other career or organization, where career

opportunities are better.

•         So, there are two types of mobility in career development actions- internal

and external mobility.

Why Career development program?

1. Growth opportunities

2. Quality of working life

3. Competition for high talent personnel

4. Avoid obsolescence

5. Retention of personnel

6. Improved utilization of personnel

Effective organizational career development techniques include:

•         Challenging initial job

•         Dissemination of career option information

•         Job postings

•         Assessment centers

•         Career development workshops

•         Continuing education and training

•         Periodic job change

•         Sabbaticals For more see: HRM-

Decenzo and Robbins

Individual career development is a three-step self-assessment

process:

•         Identification and organization- Identify and organize your skills, interests,

work-related needs, and values.

•         Conversion into general fields and a specific goals- Convert these

inventories into general career fields and specific job goals.

•         Testing against realities- Test these possibilities against the realities of the

organization or the job market.

Unit- 9 (Nine)

PERFORMANCE EVALUATION

Once the employee has been selected, trained & motivated the next step of

MGMT is to find out how effective it has been at hiring and placing. The

tools used to ascertain whether an employee has shown her/his best

performance on a given job is called performance evaluation. It is the

assessment of an individual’s performance in a systematic way against such

factors as job knowledge, quality & quantity of output, initiative, leadership

abilities, dependability, cooperation, judgement etc. The assessment is not

only concerned with past performance, it is also concerned with potentials

of the employees for future performance.

Pupose of performance evaluation

The overall objectives of PE is to improve the efficiency of an employee by

attempting to mobilize the best possible efforts from individuals employed

in it. Such evaluation achieves four objectives includiing the salary reviews;

the development & training of individuals; planning job ratation and

assistance promotion.- Cummings

PE plans are designed to meet three needs, one of the organization & the

other two of the individuals.

i) They provide systematic judgements to back up salary increases, transfers,

demotions or terminations.

ii) They are means of telling a subordinate how they are doing and suggesting

needed changes in their behavior, attitudes, skills or job knowledge. They

let them know where they stands with the boss.

iii) They are used as a base for coaching and conselling the individual by the

superior.

Process of performance evaluation

The evaluation process consists following steps:

1. Establish performance standards

2. Communicate performance expectations to employees

3. Measure actual performance

4. Compare actual performance with standards

5. Discuss the appraisal with the employees

6. If necessary, initiate corrective action

Uses of performance evaluation

1. Performance feedback

2. Reward management

3. Training & development decisions

4. Promotion, transfer, separation decisions

5. Validation of selection tests

6. Career & succession planning

7. Supervisory understanding

8. Policy formulation

Methods of performance evaluation

•      Relative standards- performance of individuals are compared against

other individuals. Major relative standards major are:

1. Individual ranking: supervisor or rater ranks the performance of

subordinates in the order of their merit, starting from the best to

worst or viceversa. Each individual gets their own rank, two or more

person can not get the same rank.

2. Group order ranking- employees are placed, grouped or ranked in to a

particular classification by the evaluator according to the selected

features such as; analytical ability, cooperativeness, dependability,

self expression, judgement, leadership & organizing capacity etc.

Such as- for outstanding A, B= very good, C= good, D= fair, E= poor

and F= hopeless or distinction, first, second & third division.

3. Paired comparison- appraiser compares each employee with every

other employee, one at a time. E.g.- there are 5 employyes named A B

C D & E. The performance of A is first compared with B and decision

is made about whose performance is better. Then A is compared with

C D & E in that order. Same procedure is repeated to other

employees. After the completion of comparision, the results can be

tabulated and a rank is created from the number of times each person

is considered to be superior.

Absolute standard

1. Essay appraisal- the appraiser describes the performance, traits,

behavior and potentiality of the employee on the job in a essay form.

2. Checklist- a checklist of statements on the traits of the employees

and their job is prepared in 2 columns that is ”yes” & ”no”. The

supervisor tick these ”yes” & ”no” column according to their

performance on given statement and forward the list to HR

department where actual evaluation is done by alloting certain point

to each ”yes”.

3. Forced choice- developed form of checklist, where two or more

statement is provided to raters and raters has to identify which

statement is most descriptive of the individuals being evaluated. The

actual assessment is done by HR department. The main advantage of

this method is that it reduces biasness because rater doesn’t know the

right answer.

4. Critical incident- this approach focuses on certain critical behavior

of an employee that makes all the differences between effective and

non effective performance on the job. Supervisor directly observes &

records examples of behavior under the categories that indicate

effective or ineffective performance frequently through out the year.

This procedure can provide a sound basis for feedback to the

individual so it is useful for devlopmental purpose. The danger is taht

it may give the employees the impression that everything they do will

be recorded which may harass them.

5. Graphic rating scale- this system consists of several numerical scales

each representing a job related performance criteria such as-

dependability, initiative, output, attendence, attitude, cooperation etc.

Each scale ranges from excellent to poor. The rater checks the

appropriate performance level on each criteria and computes the

employees total numerical score.

6. Behaviourally anchored rating scales (BARS)

Management by objective

MBO is a process that converts organizational objectives in to individual

objectives.

Steps of MBO

- Goal setting- generally supervisor & subordinates work together to establish

goals.

-          Action planning- means are determined to achieve ends.This step includes

identifying the activities necessary to accomplish the objectives,

establishing the relationship between these activities, estimating time

requirement and determining the resources required to complete each task.

-          Self control- subordinate themselves systematically monitor, measure and

review their own performance.

-          Periodic review- the actual level of goal attainment is compared with the

goals agreed upon. The evaluator explores reasons for goal that were not

met and for the goals that were exceeded. Necessary corrective actions are

taken. These reviews should take place at least two to three times a year.

Factors that can distort appraisals

•      Leniency error- every evaluator has his or her own value system which acts

as a standard against which appraisals are made. Some evaluator mark high

and others low. Positive leniency error and negative leniency error. If all

individuals in an organization are appraised by the same person there will

be no problem.

•      Halo error- tendency to rate high or low on all factors due to the

impression of high or low rating on some specific factor.

•      Similarity error- when evaluator rate other people in the same way that

the evaluators perceive themseves, then they are making similarity error.

•      Low appraiser motivation- what are the consequenses of appraisa?

Employee can be rewarde, not rewarded, punished , if evaluator knows, may

not give the realistic appraisal.

•      Central tendency- reluctance to make extreme ratings in either direction;

the inability to distinguish between and among ratees; a form of range

restriction. Central tendency error prone rater rates all employees as

average.

•      Inappropriate substitutes for performance- in many jobs it is difficult to get

consensus on what is a good job, and it is even more difficult to get

agreement on what criteria will determine performance. As a result

appraisal is frequently made by using substitutes for performance; criteria

that, it is hoped, closely approximate performance and act in its place.

Suggestions for improved performance appraisal: i) behaviorally based

measures ii) combine relative and absolute standard iii) ongoing feedback

iv) multiple raters v) selective rating, trained appraisers, peer evaluations,

post appraisal interview, rewards to accurate appraisers.

Who should do the appraising?

1. The immidiate supervisor

2. Peer appraisals

3. Rating committees

4. Self ratings

5. Appraised by subordinates

6. 360 –degree feedback- ratings are collected ”all around” an

employees, from supervisors, subordinates, peers and internal &

external customers- a complete survey on individuals

Unit- 10 (Ten)

COMPENSATION ADMINISTRATION

Compensation refers to all forms of financial returns, tangible service, and

benefits employees receive as part of an employee relationship. -

Milkovich

Designing pay structure that will attract, retain and motivate the competent

employees and which is perceived as fair by the employees, by considering

the paying capacity of the organization is compensation management.

Purpose:

•      Establish fair & equitable pay system

•      Attract & retain competent human resources

•      Improve motivation & morale of employees

•      Improve image of the organization as a ”fair pay” employer

•      Comply with legal framework related to compensation

•      Compensation administration

Determinants of compensation policy

1.      Legal framework 2. Union pressure

3. Organization’s compensation policies 4. Equity considerations

5. Job evaluation 6. Competition

7. Productivity

Establishing pay plans

Pay plan is concerned with assigning a monetary value to each job in the

organization.

Steps :

1. Job analysis- process of describing the duties of a job, authority

relationship, skills required, conditions of work and additinal relevant

informations.

2. Jobevaluation- systematically determining the value of each job in

relation to all jobs within the organization. JE seeks to rank all the

jobs in the organization & place them in a hierarchy that will reflect

the relative worth of each job.

3. Wage & salary survey- published surveys, consultant & agencies,

advertisement, informal communication.

4. Compensation structure- ranking, market rates for similar job,

creation of job grades

Difference between job evaluation & performance evaluation

  Job evaluation

                    i)            The job is rated keeping in view such factors as responsibilities,

experience, qualifications, skills, working conditions etc required for

performance of the job.

                  ii)            Job is rated before employee is appointed

                iii)            Purpose is to establish satisfactory wage differentials

                iv)            Not compulsory

                  v)            JE comittee & experts does JE

  Performance evaluation

                    i)            Employee is rated on the basis of performance.

                  ii)            Performance evaluation takes place after the employees has been

hired & placed on the job.

                iii)            Purpose is to reward, award, punish, assess training need

                iv)            Compulsory & done regularly

                  v)            Performance evaluation is done by peers, employee themselves,

supervisors, group of people or combination of these.

Methods of job evaluation

1.      Ranking method-Ranking method- worth of each job is assessed on the basis of its

importance & content than compared with each other & rank of each job is

determined.

2.      Grading method-Grading method- at first,the number of grade is decided; second, factors

corresponding to these grades are developed; third, basic information about

job are collected through job analysis; fourth, after analyzing these

informations jobs are matched with the grades. The degree of skill,

responsibility and other job characteristics are taken in to consideration

while forming the job grade.

3.3.           Factor compariion method- Factor compariion method-

                    i)      Selection of key factors

                  ii)      Key factors may be- mental requirements, skills, physical efforts, job

conditions etc.

                iii)      These factors are assumed to be constant for all jobs.

                iv)      All the jobs are compared one- by- one with the key factors

                  v)      The worth of the job is obtained by adding together all the point

value.

                vi)      It uses pay rate for each compensable factors.

              vii)      Methods of job evaluation

4.      Point method-Point method- evaluates the compensable factors. Uses points instead of

pay rates according to the level/ degree of compensable factors.

                 i)         Compensable factors are determined- responsibilities, skills, efforts,

job conditions etc. Each factor is further subdivided in to sub factors.

               ii)         Determine the level of factors- several levels are created for each

factor.

             iii)         Allocate points to sub factors and levels

             iv)         Apply the point system matrix.

Unit- 11 (Eleven)

INDIECT FINANCIAL COMPENSATION

Benefits are membership based rewards offered to all employees regardless

of performance.

•      It should not be expected to motivate employees.

•      Absence of adequate benefit can contribute to employee dissatisfaction and

increased absenteeism and turnover.

•      Benefits: Something for everybody

Types of benefits

1. Legally required benefits: certain benefits must be supplied by the

organizations for its employees, regardless of whether it wants to or

not. Such as social securities,unemployment compensation, workers

compensation, disability

2. Voluntary benefits: rest period, holidays-dashain, tihar, vaccations-paid

leave, sick leave, leave of absence- 14 days, pension & gratuity

progarmmes, insurance, study leaves etc.

SERVICES

Those facilities which is provided by the organization at no cost to the

employee or a significant reduction from what might have to be paid

without the organization’s support. Such as- company sponsored events,

counselling, cultural activities, credit unions, housing, free tea/coffee,

discount, company picnic, educational assistance etc.

Trends in benefits & services:

Cafeteria style of benefits: the cafeteria approach allows employees to

pick and choose those benefits that are desirable. Core benefits are

provided to all employees, remainder of the money to be spent on benefits

left to the decision of each employee.

INCENTIVES

•      Monetary benefits paid to employees for outstanding performance.

•      Given in addition to wage & salary

•      Variable pay linked to performance

Types of incentives

1. Individual incentives: reward linked with the individual

performance. Individual incentive plans are:

a)      Piece rate- compensation is based on number of units produced. Used for

production worker.

b)      Commissions- based on sales performance in terms of value. Used for sales

personnel.

c)      Bonus- one-time lumpsum payments for meeting performance goal. Used

for managerial & professional employees.

2. Group incentives- reward linked to the combined performance. Where

task are interdependent and requires team work and the output of

individual employee canot be measured such incentive is provided. Bonus,

commission, piece rate.

3. Organizational incentives- reward linked with the overall

performance of the organization.

a)      Scanlon plan- it is based on the ratio of labor cost to productivity. All

employees are entitled to a share of saving in labor cost through bonus

payments (productivity gain sharing).

b)      Suggestion plan- reward for useful ideas for improvement of

organizational effectiveness from the employees.

c)      Employee shares some portion of profit.

Unit-12 (Twelve)

HEALTH AND SAFETY

The life of industrial workers is full of risks and hazards. Every year

thousands of workers are injured in factories and mines. The injuries may

be caused as a result of any unsafe activity, or as a result of some unsafe

work conditions or unsafe acts of employees themselves, or defective plant

or shop lay out, inadequate ventilation, unsafe and insufficient lighting

arrangements, or insufficient space for movement inside the plant. One of

the important consequences of all this is increased dangers to human life.

Partial disablement, total disablement, death.

•      Safety means freedom from the occurrence or risk of injury or loss.

•      Industrial safety or employee safety refers to the protection of workers from

the danger of industrial accidents.

•      Accident is an unplanned and uncontrolled event in which an action and

reaction of an object, a substance, a person, or a radiation results in

personal injury.

Causes of accidents:

•      Human causes- carelessness, daydreaming, intoxication, inability to do the

job, or other human deficiency etc.

•      Environmental causes– tools, equipment, physical plant & general work

environment.

Among both these sources, the human factor is more responsible for the

vast majority of accidents.

Accident prevention measures include:

•      Education

•      Skill training

•      Engineering

•      Protection

•      Regulation enforcement as

•      Health- a state of complete physical, mental and social well being and not

merely the absence of disease or infirmity.- WHO

•      Industrial health refers to a system of public health and preventive medicine

which is applicable to industrial concerns.

•      Industrial health is: i) the prevention and maintenance of physical, mental &

social well being of workers in all occupations, ii) prevention among

workers of ill health caused by the working conditions, iii) protection of

workers in their employment from risks resulting from factors adverse to

health and iv) placing and maintenance of the worker in an occupational

environment adapted to their physical & psychological equipment.

The basic objective of industrial health is the prevention of disease and

injury rather than the cure of disease.

Unit-13 (Thirteen)

LABOUR RELATIONS

•      Labor relations are the complex of interrelations among workers, managers

and government.

•      Employees, employers, their respective associations, government and

judiciary are the parties which have stakes in labour relations.

•      Employees perceives LR as a method to improve their conditions of

employment, to voice any grievances, to exchange views and ideas with

management and to share in decision making.

•      Trade unions look to LR in order to secure improved terms and conditions of

employment and to obtain improved status for the workers in their work.

•      Employers have economic power in their hands and use it to affect workers’

destiny. They understand LR as a means to motivate workers and to sustain

their commitment to work.

•      The role of employers’ association is relevant in as much as they represent

employers in collective bargaining and develop machinery for avoidance or

settlement of disputes.

•      The government seeks to protect the interest of both employers as well as

employees. Constitute wage boards, labour courts, tribunals, and enacted a

series of labour acts and policies.

•      The judiciary is relevant as it has the authority to settle any dispute and to

review any legislation, particularly when it is against the constitutional

provisions.

Industrial dispute

•      Industrial dispute mainly relate to the strife between employers and

employee.

•      Industrial disputes mean any dispute or differences between employers and

employers, or between employers and workmen, or between workmen and

workmen, which is connected with the employment or non-employment or

terms of employment or with the conditions of labour of any person.-

Industrial Dispute Acts, 1947, India

Methods of settlement

1. Collective bargaining- representative of employee and management sit

together and negotiate to settle the dispute. The collective bargaining

process consists the following steps: i) organizing & certification, ii)

preparation for negotiation iii) negotiation iv) ratification v) contract

administration.

2. Conciliation- a process by which representative of workers and employers

are brought together infront of third party, conciliator, with a view to

persuading them to arrive at an agreement by mutual discussion between

them. The third party may be an individual or group of people. Conciliator

works as facilitator only, does not impose its views or decisions .

3. Mediation-where third party plays more active role and suggests various

proposals for settlement of dispute but parties involved in the disputes are

free to accept or reject such proposals.

4. Arbitration- is a procedure in which a neutral third party studies the

bargaining situation, listens to both the parties and gather information and

then makes recommendations that are binding on the parties.

5. Adjudication- means a mandatory settlement of industrial dispute by a

labour court or tribunal.

Preventive measures:

1. Institution of labor welfare officer & labor welfare work

2. Works committees

3. Bipartite & tripartite bodies

4. Grievance procedures

5. Workers’ participation

6. Code of discipline, rules regulations etc.

7. Collective bargaining

Discipline

Discipline- adherence to rules, regulations, procedures, and standard of

acceptable behavior in an organizational setting.

Disciplinary problems:

•      Attendance related- late for work, absenteeism, leaving work without

permission, habitual tardiness, abuse of leave etc.

•      Job behavior related- insubordination, failure to obey safety rules, defective

work, not reporting accidents, drunk, gambling, fighting on the job,

destruction of property etc.

•      Dishonesty related- theft, information falsification, punching time card of

others, concealing defective work etc.

•      Outside activities related- unauthorized strike, working for competing firms,

outside criminal activities, embrassing speeches, wage garnishing etc.

Disciplinary action:

i) Oral warning ii) written warning iii) suspension

iv) Pay cut v) demotion vi) dismissal

Grievances

•      Grievances are employee’s perception of unfair treatment on the job.

•      When employees complaint is brought to the notice of management, it

becomes a grievance.

•      Grievance is a written complaint filed by an employee claiming unfair

treatment.

Causes of grievances

1. Interpretation differences

2. Management practices

3. Labor union practices

4. Personality traits

5. Working conditions

Handling employee grievances

1. Open door policy- Employees are invited to walk in any time and

express their grievances to higher level management.

2. Legal compliance- Management takes legalistic view in handling

grievances. It follows the contract with employees and union. Handles

the grievances as specified in the contract.

3. Grievance procedure:

•      Grievant → Supervisor (verbal complaint)

•      Grievant → Department head (written complaint)

•      Grievant → Grievance committee (appeal for review)

•      Grievant → Top management ( appeal for review)

•      Voluntary arbitration ( referred for arbitration) decisions binding on all

Unit-14 (Fourteen)

INTERNATIONAL HRM

Due to the increasing trend of globalization, number of organizations of

many countries are operating in different countries. Liberalization policy of

developing countries has attracted many foreign direct investment as well

as many multinational companies. In these companies people of many

countries work together. Due to the competition in the global market-

internationally oriented management practices have emerged and been

adapted. IHRM is now of growing concern/importance for the companies

that are operating or going to operate with the trend of globalization.

The HRM issues and problems arising from the internationalization of

business, and the human resource strategies, policies and practices which

firms pursue in response to the internationalization process.

HR issues in international business:

1. Selection & appointment

•      Recruitment policy

-          Ethnocentric: recruitment from parent country nationals

-          Polycentric: from host countries nationals

-          Geocentric: recruitment regardless of nationality

-          Regiocentric: recruitment made on the basis of regional needs

2. Criteria for selection: some of the most important criteria are-

domestic employment record, technical & management expertise, language

proficiency, family support, previous international experience & ability to

operate independently.

3. Selection system

4. Preparation & training- what sort of special training do overseas

candidates need four step approaches

Level-1: training focuses on the impact of cultural differences & on raising trainees’

awareness of such differences & their impact on business outcomes.

Level-2: aims at getting participants to understand how attitudes are formed & how

they influence behavior

Level-3: training provides factual knowledge about the target country, while

Level-4: provides skill building in areas like language and adjustment and

adaptation skills.

Trends in expatriate training- first rather than providing only predeparture

cross-cultural training, more firms are providing continuing, in-country

cross-cultural training during the early stages of an overseas assignment.

Second, employers are using returning managers as resources to cultivate

the global mind-sets of their home office staff. Third, there is also increased

use of software & internet for cross-cultural training.

5. Compensation- cost of living criteria, hardship allowances & others

•      The balance sheet approach- to equalize purchasing power across country.

The basic idea is that each expatriate should enjoy the same standard of

living s/he would have at home.

•      Incentives

6. Performance evaluation-

7. Repatriation- this is the problem of returning home after success or

failure in the foreign assignment. If an organization fails to foresee the

problems of repatriation, it will bring another big problem on the part of

expatriates as well as the organization itself.

Five factors important in international assignee success & their

components:

1. Job knowledge & motivation- managerial ability, organizational

ability, imagination, creativity, administrative skills, alertness,

responsibility, industriousness, initiative & energy, high motivation,

frankness, belief in mission & job, perseverance

2. Relational skills- respects, courtesy & fact, display of respect,

kindness, empathy, non-judgmental, integrity, confidence

3. flexibility/ adaptability- resourcefulness, ability to deal with stress,

flexibility, emotional stability, willingness to change, tolerance for

ambiguity, adaptability, independence, dependability, political

sensitivity, positive self –image

4. Extra-cultural openness- variety of out side interests, interest in

foreign culture, openness, knowledge of local languages,

outgoingness & extroversion, overseas experience

5. Family situation- adaptability of spouse and family, spouse’s positive

opinion, willingness of spouse to live abroad, stable marriage

Source- Gary Dessler