Human Resource Planning : Objectives, Need, Importance and Levels

1. Ensure adequate supply of manpower as and when required.

2. Ensure proper use of existing human resources in the organisation.

3. Forecast future requirements of human resources with different

levels of skills.

4. Assess surplus or shortage, if any, of human resources available

over a specified period of time.

5. Anticipate the impact of technology on jobs and requirements for

human resources.

6. Control the human resources already deployed in the organisation.

7. Provide lead time available to select and train the required

additional human resource over a specified time period.

Need for and Importance of HRP:

The need for human resource planning in organisation is
realised for the following reasons:
1. Human resource planning meets the organisation need for right
type of people in right number at right times.

2. By maintaining a balance between demand for and supply of human

resources, human resource planning makes optimum use of human
resources, on the one hand, and reduces labour cost substantially, on
the other.
3. Careful consideration of likely future events, through human
resource planning might lead to the discovery of better means for
managing human resources. Thus, foreseeable pitfalls might be
avoided.

4. Manpower shortfalls and surpluses may be avoided, to a large

extent.

5. Human resource planning helps the organisation create and develop

training and succession planning for employees and managers. Thus,
it provides enough lead time for internal succession of employees to
higher positions through promotions.

6. It also provides multiple gains to the employees by way of

promotions, increase in emoluments and other perquisites and fringe
benefits.

7. Some of the problems of managing change may be foreseen and

their consequences mitigated. Consultations with affected groups and
individuals can take place at an early stage in the change process. This
may avoid resistance for change.

8. Human resource planning compels management to asses critically

the strength and weaknesses of its employees and personnel policies
on continuous basis and, in turn, take corrective measures to improve
the situation.
9. Through human resource planning, duplication of efforts and
conflict among efforts can be avoided, on the one hand, and
coordination of worker’s efforts can be improved, on the other.

10. Last but no means the least, with increase in skill, knowledge,
potentialities, productivity and job satisfaction, organisation becomes
the main beneficiary. Organisation is benefitted in terms of increase in
prosperity/production, growth, development, profit and, thus, an edge
over its competitors in the market.

The HRP Process

Environmental Scanning:

It refers to the systematic monitoring of the external forces influencing the

organization. The following forces are essential for pertinent HRP.

Economic factors, including general and regional conditions. Technological

changes
 Demographic changes including age, composition and literacy,

Political and legislative issues, including laws and administrative rulings

Social concerns, including child care, educational facilities and priorities.

By scanning the environment for changes that will affect an organization,

managers can anticipate their impact and make adjustments early.

Organizational Objectives and Policies: HR plan is usually derived from the

organizational objectives. Specific requirements in terms of number and
characteristics of employees should be derived from organizational objectives

Once the organizational objectives are specified, communicated and understood

by all concerned, the HR department must specify its objective with regard to HR
utilization in the organization.

HR Demand Forecast:

Demand forecasting is the process of estimating the future quantity and quality of
people required to meet the future needs of the organization. Annual budget and
long-term corporate plan when translated into activity into activity form the basis
for HR forecast.

For eg: in the case of a manufacturing company, the sales budget will form the
basis for production plan giving the number and type of products to be produced
in each period. This will form the basis uponwhich the organization will decide
the number of hours to be worked by each skilled category of workers. Once the
number hours required is available organization can determine the quality and
quantity of personnel required for the task.

Demand forecasting is influenced by both internal factors and external factors:

external factors include-competition, economic climate, laws and regulatory
bodies, changes in technology and social factors whereas internal factors are
budget constraints, production level, new products and services, organizational
structure and employee separations.
Demand forecasting is essential because it helps the organization to 1. Quantify
the jobs, necessary for producing a given number of goods, 2. To determine the
nature of staff mix required in the future, 3. To assess appropriate levels in
different parts of organization so as to avoid unnecessary costs to theorganization,
4. To prevent shortages of personnel where and when, they are needed by the
organization. 5. To monitor compliances with legal requirements with regard to
reservation of jobs.

Techniques like managerial judgment, ratio- trend analysis, regression analysis,

work study techniques, Delphi techniques are some of the major methods used by
the organization for demand forecasting.

HR Supply Forecast:

Supply forecast determines whether the HR department will be able to procure the
required number of workers. Supply forecast measures the number of people
likely to be available from within and outside an organization, after making
allowance for absenteeism, internal movements and promotions, wastage and
changes in hours, and other conditions of work.

Supply forecast is required because it is needed as it 1. Helps to quantify the

number of people and positions expected to be available in future to help the
organization realize its plans and meet its objectives 2. Helps to clarify the staff
mixes that will arise in future 3. It assesses existing staffing in different parts of
the organization. 4. It will enable the organization to prevent shortage of people
where and when they are most needed. 5. It also helps to monitor future
compliance with legal requirements of job reservations.

Supply analysis covers the existing human resources, internal sources of supply
and external sources of supply.

HR Programming:

Once an organization‘spersonnel demand and supply are forecasted the demand

and supply need to be balanced in order that the vacancies can be filled by the
right employees at the right time.

HR Plan Implementation:
HR implementation requires converting an HR plan into action. A series of action
are initiated as a part of HR plan implementation. Programmes such as recruitment,
selection and placement, training and development, retraining and redeployment,
retention plan, succession plan etc when clubbed together form the implementation
part of the HR plan.

Control and Evaluation:

Control and evaluation represent the final phase of the HRP process. All HR plan
include budgets, targets and standards. The achievement of the organization will
be evaluated and monitored against the plan. During this final phase organization
will be evaluating on the number of people employed against the established (both
those who are in the post and those who are in pipe line) and on the number
recruited against the recruitment targets. Evaluation is also done with respect to
employment cost against the budget and wastage accrued so that corrective action
can be taken in future.

Requisites for Successful HRP

(Human Resource Planning)
1. HRP must be recognized as an integral part of corporate planning
2. Support of top management is essential
3. There should be some centralization with respect to HRP responsibilities in
order to have co-ordination between different levels of management.
4. Organization records must be complete, up to date and readily available.
5. Techniques used for HR planning should be those best suited to the data
available and degree of accuracy required.

6. Data collection, analysis, techniques of planning and the plan themselves need to
be constantly revised and improved in the light of experience.
Limiting Factors / Barriers of Human Resource Planning
Manpower planning involves forecasting the demand and supply of human resources. Thus, the effectiveness
of planning depends upon the accuracy of forecasts. If the forecasts are not cent per cent accurate, planning
will not be hundred per cent accurate.

Identify Crisis:
Many human resource specialists and the managers do not understand the whole manpower planning process.
Because of this, there is generally an identity crisis. Till the specialists develop a strong sense of purpose,
planning cannot be effective.
 Support of Top Management:
Employees and trade unions resist manpower planning. They feel that the planning increases their overall
workload and regulates them through productivity bargaining. They also feel that it would lead to widespread
unemployment, especially of unskilled labor.

Insufficient Initial Efforts:

Successful human resource planning flourishes slowly and gradually. Sometimes sophisticated technologies
are forcefully introduced, just because competitors have adopted them. These may not be successful unless
matched with the needs abed environment of the particular enterprise.

Management Information System:

Effectiveness of planning depends upon the reliability of the information system,. In most of the Indian
Industries, human resource information system has not fully developed. In the absence of reliable data, it
would not be possible to have effective planning.

Uncertainties:
It is risky, to depend upon general estimates of manpower, in the face of rapid changes in the environment.
Absenteeism, turnover, seasonal employment, technological changes and market fluctuations are the
uncertainties, which serve as a constraints to manpower planning. Although discounts are made for these
factors, while preparing the plan, but these factors cannot be estimated correctly.,

Expensive and Time Consuming:

Manpower planning is an expensive and time consuming process. Employers may resist manpower planning,
feeling that I increases the cost of manpower.

Coordination with other Managerial functions:

There is generally a tendency on the part of the manpower planners, to remain aloof from other operating
managers and to become totally absorbed in their own world. To be effective, manpower planning must be
integrated with other management functions.

Unbalanced Approach:
Many human resource experts give more importance on the quantitative aspect of manpower, to ensure that
there is adequate flow of people in and out of the organization. They overlook the qualitative aspects like
career development and planning, skill levels, morale, etc. are overlooked by them. Such unbalanced approach
affects the effectiveness of manpower planning.
Thus, manpower planning suffers from two types of problems. One is inherent because of problems of
forecasting and second comes from human weaknesses.

Need for Recruitment

Every Company in the world knows the important of recruitment step in increasing the performance of the
company and increasing the productivity of the products. In this part of the project we will mention some
important point about the importance of recruitment step in any organization:

1. It helps organization by found of the need of requirements by job analysis activities and personnel planning.
2. To collect many of job candidates with less cost.
3. It helps to organize application by divided them by under qualified or overqualified, to increase the possibility
of increasing and choosing the success person to the right place.
4. Employing new and better qualified staff often the only effective long-term strategy for improving operational
performance.
5. Capabilities and commitment of employees ensure an organisation’s success.
6. Raise organizational and individual value in the short term and long term.

Purpose and Importance of Recruitment

1. Determine the present and future requirements of the organization on conjunction with its personnel
planning and job analysis activities.
2. Increase the pool of job candidates at minimum cost.
3. Help increase the success rate of the selection process by reducing the number of visibly under qualified or
overqualified job applicants.
4. Help reduce the probability that job applicants, once recruited and selected, will leave the organization only
after a short period of time.
5. Meet the organization’s legal and social obligations regarding the composition of its work force.
6. Begin identifying and preparing potential job applicants who will be appropriate candidates.
7. Increase organizational and individual effectiveness in the short term and long term.
8. Evaluate the effectiveness of various recruiting techniques and sources for all types of job applicants.

Difference Between Recruitment and Selection

We know that recruitment and selection are part from the same phases of employment, each one is complete
the other but there are five points different between them:

1. Recruitment is the first part of the employment phase, which is looking and collecting more than one applicant,
the second part of the employment phase is selection which start to look for applicants and evaluate them.
2. The goal of Recruitment is to create the differentiation and creativity applicants to give the organization more
options. The main goal for selection is to choose the best one to fill the position.
3. Since recruitment searching for more employees to apply for a position, it is consider as a positive process, and
the negative process will be in selection since is reducing the applicants to one for each position.
4. The source of human resources is most important part to recruitment, but in selection the most important part
is choosing the person via interviews or through tests.
5. There no contract between applicant and organization in recruitment process, but there is an signing a contract
between an applicant and organization.

Recruitment Process
The five steps involved in recruitment process are as follows: (i)
Recruitment Planning (ii) Strategy Development (iii) Searching (iv)
Screening (v) Evaluation and Control.
1. Recruitment Planning:
The first step involved in the recruitment process is planning. Here,
planning involves to draft a comprehensive job specification for the
vacant position, outlining its major and minor responsibilities; the
skills, experience and qualifications needed; grade and level of pay;
starting date; whether temporary or permanent; and mention of
special conditions, if any, attached to the job to be filled ”

2. Strategy Development:
Once it is known how many with what qualifications of candidates are
required, the next step involved in this regard is to devise a suitable
strategy for recruiting the candidates in the organisation.

The strategic considerations to be considered may include issues like

whether to prepare the required candidates themselves or hire it from
outside, what type of recruitment method to be used, what
geographical area be considered for searching the candidates, which
source of recruitment to be practiced, and what sequence of activities
to be followed in recruiting candidates in the organisation.

3. Searching:
This step involves attracting job seekers to the organisation. There are
broadly two sources used to attract candidates.

These are:
1. Internal Sources, and

2. External Sources

4. Screening:
Though some view screening as the starting point of selection, we have
considered it as an integral part of recruitment. The reason being the
selection process starts only after the applications have been screened
and shortlisted. Let it be exemplified with an example.

In the Universities, applications are invited for filling the post of

Professors. Applications received in response to invitation, i.e.,
advertisement are screened and shortlisted on the basis of eligibility
and suitability. Then, only the screened applicants are invited for
seminar presentation and personal interview. The selection process
starts from here, i.e., seminar presentation or interview.

Job specification is invaluable in screening. Applications are screened

against the qualification, knowledge, skills, abilities, interest and
experience mentioned in the job specification. Those who do not
qualify are straightway eliminated from the selection process.
The techniques used for screening candidates vary depending on the
source of supply and method used for recruiting. Preliminary
applications, de-selection tests and screening interviews are common
techniques used for screening the candidates.

5. Evaluation and Control:

Given the considerable cost involved in the recruitment process, its
evaluation and control is, therefore, imperative.

The costs generally incurred in a recruitment process

include:

(i) Salary of recruiters

(ii) Cost of time spent for preparing job analysis, advertisement

(iii) Administrative expenses

(iv) Cost of outsourcing or overtime while vacancies remain unfilled

(v) Cost incurred in recruiting unsuitable candidates

In view of above, it is necessary for a prudent employer to try to

answer certain questions like: whether the recruitment methods are
appropriate and valid? And whether the recruitment process followed
in the organisation is effective at all or not? In case the answers to
these questions are in negative, the appropriate control measures need
to be evolved and exercised to tide over the situation.
Sources of Recruitment:
The eligible and suitable candidates required for a particular job are
available through various sources. These sources can be divided into
two categories, as shown in Figure 5.5.

Internal Sources of Recruitment:

1. Promotions:
The promotion policy is followed as a motivational technique for the
employees who work hard and show good performance. Promotion
results in enhancements in pay, position, responsibility and authority.
The important requirement for implementation of the promotion
policy is that the terms, conditions, rules and regulations should be
well-defined.

2. Retirements:
The retired employees may be given the extension in their service in
case of non-availability of suitable candidates for the post.

3. Former employees:
Former employees who had performed well during their tenure may
be called back, and higher wages and incentives can be paid to them.

4. Transfer:
Employees may be transferred from one department to another
wherever the post becomes vacant.

5. Internal advertisement:
The existing employees may be interested in taking up the vacant jobs.
As they are working in the company since long time, they know about
the specification and description of the vacant job. For their benefit,
the advertisement within the company is circulated so that the
employees will be intimated.

Benefits of Internal Sources of Recruitment:

1. The existing employees get motivated.

2. Cost is saved as there is no need to give advertisements about the

vacancy.

3. It builds loyalty among employees towards the organization.

4. Training cost is saved as the employees already know about the

nature of job to be performed.

5. It is a reliable and easy process.

Limitations of Internal Sources of Recruitment:
1. Young people with the knowledge of modem technology and
innovative ideas do not get the chance.

2. The performance of the existing employees may not be as efficient

as before.

3. It brings the morale down of employees who do not get promotion

or selected.

4. It may leads to encouragement to favouritism.

5. It may not be always in the good interest of the organization.

External Sources of Recruitment:

1. Press advertisement:
A wide choice for selecting the appropriate candidate for the post is
available through this source. It gives publicity to the vacant posts and
the details about the job in the form of job description and job
specification are made available to public in general.

2. Campus interviews:
It is the best possible method for companies to select students from
various educational institutions. It is easy and economical. The
company officials personally visit various institutes and select students
eligible for a particular post through interviews. Students get a good
opportunity to prove themselves and get selected for a good job.

3. Placement agencies:
A databank of candidates is sent to organizations for their selection
purpose and agencies get commission in return.

4. Employment exchange:
People register themselves with government employment exchanges
with their personal details. According to the needs and request of the
organization, the candidates are sent for interviews.

5. Walk in interviews:
These interviews are declared by companies on the specific day and
time and conducted for selection.

6. E-recruitment:
Various sites such as jobs.com, naukri.com, and monster.com are the
available electronic sites on which candidates upload their resume and
seek the jobs.

7. Competitors:
By offering better terms and conditions of service, the human resource
managers try to get the employees working in the competitor’s
organization.

Benefits of External Sources of Recruitment:

1. New talents get the opportunity.

2. The best selection is possible as a large number of candidates apply

for the job.
3. In case of unavailability of suitable candidates within the
organization, it is better to select them from outside sources.

Limitations of External Sources of Recruitment:

1. Skilled and ambitious employees may switch the job more
frequently.

2. It gives a sense of insecurity among the existing candidates.

3. It increases the cost as advertisement is to be given through press

and training facilities to be provided for new candidates.

Selection process steps

As discussed in last article, selection process or selection procedure involves a series of
steps to be followed for choosing the suitable person for the vacant job. This process
starts after recruitment and divides the candidates in two parts those who will be offered
job and those will not be. There is a need of well-organized selection process because
only then right type of candidate can be selected and unsuitable candidates are
rejected. The selection process varies from organization to organization and even from
department to department within the same organization. Like in some organizations
medical examination is done after final selection while in other it may be done before
final selection. However every organization designs the selection process as per its
need. The main selection process steps are:

1. Preliminary interview: the selection process generally starts with this step where
the totally unsuitable applicant is eliminated. Thus the organization is saved from the
expenses of processing the applicant through the remaining steps of selection. The
candidates who pass this step are only asked to fill the application form.

2. Receiving applications: after passing the preliminary interview the candidate is

asked to fill the standard application form. The application form generally consists the
information about the age, qualification, experience etc. of the candidate on the basis of
which the interviewer gets the idea about the candidate and this information also helps
in formulating questions.

3. Screening of applications: after receiving the applications the screening committee

screens the applications. Only the candidates who qualify the criteria of the screening
committee are called for the interview. Usually the candidates selected for interview are
four to six times than the number of posts. Interview letter is sent to them or they are
called telephonically.

4. Employment test: after getting the interview letter and before going to the interview
there is one more step and that is the employment tests. These tests are done to check
the ability of the candidate. These tests vary from organization to organization and
change as per the need of the particular job. these tests are intelligence tests, aptitude
tests, trade tests, interest test, personality tests etc. these tests must be designed
properly otherwise they will not good indicator of one knowledge.

5. Employment interview: the candidates who qualify the above tests are called for the
employment interview. This interview is done to get more information about the
candidate, to give him the actual picture of what is required from him, to check the
communication skill of the candidate etc. for senior position post; a panel is prepared
who take the interview. At the end of interview of each candidate the members of panel
discuss about the candidate and give him the grades.

There may be direct interview or indirect interview. The interview should be conducted
in a room free from the noise and disturbance only than the candidates will be able to
speak freely and frankly.

6. Checking references: before selecting the employ the prospective employee

generally look out for the referees given by the candidate. To check about the
candidate’s past record, reputation, police record etc.

7. Physical examination: The organizations generally prefer medical examination to be

incurred of the person to avoid time and expenditure spend on the medically unfit
person. Sometimes the organization may ask the candidate to get them examined from
the medical expert.

8. Final selection: after all these steps the candidate is selected finally. He is appointed
by issuing appointment letter. Initially he is appointed on probation basis after finding his
work satisfactory he is appointed as permanent employee of the organization or
otherwise he may be terminated.

Salary Negotiations
Salary negotiation is done ahead of issuing an offer letter. This is the heart
of recruitment and selection process, wherein the actual worth of a right
candidate will be evaluated. The remuneration offered should be balanced,
acceptable and agreed by both the parties – the employer and the
employee.

Some organizations have salary grades, which are already assigned for
each and every position, hence the new employee also receives the salary
as per the grade for which the candidate is qualified and selected for.

A Win-Win Situation
The negotiations should be a win-win situation, where both the candidate
and the employer should benefit.

If the candidate expects and demands for a higher salary than the offered
salary, then the employer can raise the package (if the budget permits) in
the following cases −

 The candidate is highly talented with a potential to deliver great results.

 The candidate has exceptional skills which are rare in the market.

Sometimes there is high demand for a skill and the market does not have
sufficient supply of qualified candidates to fill the gap. In such cases, the HR
team offers lucrative packages in order to attract talented professionals.

Hiring managers, most of the time, have a budget for each position and
they are under pressure to hire the right candidates without overshooting
their assigned budget.
Tips for Good Salary Negotiation
Hiring managers should keep the following points in mind while negotiating
salary with a potential candidate −

 Research about the job posting well in advance and have a clear understanding
of the demand and supply of skilled professionals in the job market.

 Make the candidates understand the break-up of the total package that is
offered.

 Do not let the candidate know the maximum salary that can be offered.

 Do not reject a candidate if his expectations are beyond the budget, rather try
to make them understand the fringe benefits that is being offered in the
package.
 Training and Development
Definition: Training and Development
Training and Development is a subsystem of an organization which emphasize on the improvement
of the performance of individuals and groups. Training is an educational process which involves the
sharpening of skills, concepts, changing of attitude and gaining more knowledge to enhance the
performance of the employees. Good & efficient training of employees helps in their skills &
knowledge development, which eventually helps a company improve.
Training is about knowing where you are in the present and after some time where will you reach
with your abilities. By training, people can learn new information, new methodology and refresh
their existing knowledge and skills. Due to this there is much improvement and adds up the
effectiveness at work. The motive behind giving the training is to create an impact that lasts beyond
the end time of the training itself and employee gets updated with the new phenomenon. Training can
be offered as skill development for individuals and groups.

Organizational Development is a process that “strives to build the capacity to achieve and sustain a
new desired state that benefits the organization or community and the world around them.” (From the
Organizational Development Network website).

Relation between Training and Development

There is a relation between training and development, and there is clear difference between the two
based on goals to be achieved. Development is made to answer the training problems:

TRAINING DEVELOPMENT
Training is meant for operatives Development is meant for executives

It is reactive process It is pro- active process

AIM: To develop additional skills AIM: To develop the total personality

It is short term process It is continuous process

OBJECTIVE: To meet the present need of an OBJECTIVE: To meet the future need of an
employee employee

Initiative is taken by the management Initiative is taken by an individual.

Importance of Training and Development

For companies to keep improving, it is important for organizations to have continuous training and
development programs for their employees. Competition and the business environment keeps
changing, and hence it is critical to keep learning and pick up new skills. The importance of training
and development is as follows:
• Optimum utilization of Human resources
• Development of skills like time management, leadership, team management etc
• To increase the productivity and enhance employee motivation
• To provide the zeal of team spirit
• For improvement of organization culture
• To improve quality, safety
• To increase profitability
• Improve the morale and corporate image

Need for Training and Development

Training and development of employees is a costly activity as it requires a lot quality inputs from
trainers as well as employees. But it is essential that the company revises its goals and efficiencies
with the changing environment. Here are a few critical reasons why the company endorses training
and development sessions.
• When management thinks that there is a need to improve the performances of employees
• To set up the benchmark of improvement so far in the performance improvement effort
• To train about the specific job responsibility and skills like communication management, team
management etc
 • To test the new methodology for increasing the productivity

Advantages of training and development

Training and development has a cost attached to it. However, since it is beneficial for companies in
the long run, they ensure employees are trained regularly. Some advantages are:
1. Helps employees develop new skills and increases their knowledge.
2. Improves efficiency and productivity of the individuals as well as the teams.
3. Proper training and development can remove bottle-necks in operations.
4. New & improved job positions can be created to make the organization leaner.
5. Keeps employees motivated and refreshes their goals, ambitions and contribution levels.

Disadvantages of training and development

Even though there are several advantages, some drawbacks of training and development are
mentioned below:
1. It is an expensive process which includes arranging the correct trainers and engaging employees
for non-revenue activities.
2. There is a risk that after the training and development session, the employee can quit the job.

Training Process
Definition: The Training Process comprises of a series of steps that needs to be followed
systematically to have an efficient training programme. The Training is a systematic activity
performed to modify the skills, attitudes and the behavior of an employee to perform a particular
job.

1. Needs assessment: The first step in the training process is to assess the need
for training the employees. The need for training could be identified through a
diagnosis of present and future challenges and through a gap between the
employee’s actual performance and the standard performance.

The needs assessment can be studied from two perspectives: Individual and
group. The individual training is designed to enhance the individual’s efficiency
when not performing adequately. And whereas the group training is intended to
inculcate the new changes in the employees due to a change in the
organization’s strategy.

2. Deriving Instructional Objectives: Once the needs are identified, the objectives
for which the training is to be conducted are established. The objectives could be
 based on the gaps seen in the training programmes conducted earlier and the
skill sets developed by the employees.
3. Designing Training Programme: The next step is to design the training
programme in line with the set objectives. Every training programme
encompasses certain issues such as: Who are the trainees? Who are the
trainers? What methods are to be used for the training? What will be the level of
training? etc.Also, the comprehensive action plan is designed that includes the
training content, material, learning theories, instructional design, and the other
training requisites.
4. Implementation of the Training Programme: Once the designing of the
training programme is completed, the next step is to put it into the action. The
foremost decision that needs to be made is where the training will be conducted
either in-house or outside the organization.

Once it is decided, the time for the training is set along with the trainer who will
be conducting the training session. Also, the trainees are monitored continuously
throughout the training programme to see if it’s effective and is able to retain the
employee’s interest.

5. Evaluation of the Training Programme: After the training is done, the

employees are asked to give their feedback on the training session and whether
they felt useful or not. Through feedback, an organization can determine the
weak spots if any, and can rectify it in the next session.The evaluation of the
training programme is a must because companies invest huge amounts in these
sessions and must know it’s effectiveness in terms of money.

Methods of Training: On-the-job Training Method and

Off-the-Job Methods!
Management development is a systematic process of growth and
development by which the managers develop their abilities to
manage. It is concerned with not only improving the
performance of managers but also giving them opportunities for
growth and development.

There are two methods through which managers can improve

their knowledge and skills. One is through formal training and
other is through on the job experiences. On the job training is
 very important since real learning takes place only when one
practices what they have studied.

But it is also equally important in gaining knowledge through

classroom learning. Learning becomes fruitful only when theory is
combined with practice. Therefore on the job methods can be balanced
with classroom training methods (off-the-job methods).

1. On-the-job Training (OJT) Methods:

This is the most common method of training in which a trainee is
placed on a specific job and taught the skills and knowledge necessary
to perform it.

The advantages of OJT are as follows:

1. On the job method is a flexible method.

2. It is a less expensive method.

3. The trainee is highly motivated and encouraged to learn.

4. Much arrangement for the training is not required.

On-the-job training methods are as follows:

1. Job rotation:
This training method involves movement of trainee from one job to
another gain knowledge and experience from different job
assignments. This method helps the trainee understand the problems
of other employees.
2. Coaching:
Under this method, the trainee is placed under a particular supervisor
who functions as a coach in training and provides feedback to the
trainee. Sometimes the trainee may not get an opportunity to express
his ideas.

3. Job instructions:
Also known as step-by-step training in which the trainer explains the
way of doing the jobs to the trainee and in case of mistakes, corrects
the trainee.

4. Committee assignments:
A group of trainees are asked to solve a given organizational problem
by discussing the problem. This helps to improve team work.

5. Internship training:
Under this method, instructions through theoretical and practical
aspects are provided to the trainees. Usually, students from the
engineering and commerce colleges receive this type of training for a
small stipend.

2. Off-the-job Methods:
On the job training methods have their own limitations, and in order
to have the overall development of employee’s off-the-job training can
also be imparted. The methods of training which are adopted for the
development of employees away from the field of the job are known as
off-the-job methods.

The following are some of the off-the-job techniques:

1. Case study method:
Usually case study deals with any problem confronted by a business
which can be solved by an employee. The trainee is given an
opportunity to analyse the case and come out with all possible
solutions. This method can enhance analytic and critical thinking of an
employee.

2. Incident method:
Incidents are prepared on the basis of actual situations which
happened in different organizations and each employee in the training
group is asked to make decisions as if it is a real-life situation. Later
on, the entire group discusses the incident and takes decisions related
to the incident on the basis of individual and group decisions.

3. Role play:
In this case also a problem situation is simulated asking the employee
to assume the role of a particular person in the situation. The
participant interacts with other participants assuming different roles.
The whole play will be recorded and trainee gets an opportunity to
examine their own performance.

4. In-basket method:
The employees are given information about an imaginary company, its
activities and products, HR employed and all data related to the firm.
The trainee (employee under training) has to make notes, delegate
tasks and prepare schedules within a specified time. This can develop
situational judgments and quick decision making skills of employees.
5. Business games:
According to this method the trainees are divided into groups and
each group has to discuss about various activities and functions of an
imaginary organization. They will discuss and decide about various
subjects like production, promotion, pricing etc. This gives result in
co-operative decision making process.

6. Grid training:
It is a continuous and phased programme lasting for six years. It
includes phases of planning development, implementation and
evaluation. The grid takes into consideration parameters like concern
for people and concern for people.

7. Lectures:
This will be a suitable method when the numbers of trainees are quite
large. Lectures can be very much helpful in explaining the concepts
and principles very clearly, and face to face interaction is very much
possible.

8. Simulation:
Under this method an imaginary situation is created and trainees are
asked to act on it. For e.g., assuming the role of a marketing manager
solving the marketing problems or creating a new strategy etc.

9. Management education:
At present universities and management institutes gives great
emphasis on management education. For e.g., Mumbai University has
started bachelors and postgraduate degree in Management. Many
management Institutes provide not only degrees but also hands on
experience having collaboration with business concerns.

10. Conferences:
A meeting of several people to discuss any subject is called conference.
Each participant contributes by analyzing and discussing various
issues related to the topic. Everyone can express their own view point.