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Introduction
The practice of human resource
management (HRM) is concerned with all aspects of how people are employed and managed in the organization.
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Introduction
It covers activities such as:
Strategic HRM Human capital management Corporate social responsibility Knowledge management Resourcing (HRP, recruiting, selection, and talent
management
Performance management Learning and development Reward management
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Definition
Human
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Resource Management is concerned with the people dimension in management. Since every organisation is made up of people, acquiring their services, developing their skills, motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organisation are essential to achieving organisational objectives. This is true regardless of the type of organisation government, business, education, health, recreation or social HRM/Prof. DEBASISH DUTTA 5/26/12 action.
Definition
Human Resource Management is a
series of integrated decisions that form the employment relationship; their quality contributes to the ability of the organisations and the employees to achieve their objectives. - Milkovich and Boudreau
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Definition
Human Resource Management is
the planning, organizing, directing and controlling of the procurement, development, compensation integration, maintenance and separation of human resources to the end that individual, organisational, and social objectives are accomplished.
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Evolution of HRM
1800 years BC Babylonia 400 years BC Kautilyas
Arthashastra India
1932 Royal commission on
labour
1948 Indian Factories Act NIPM Personnel management
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Struggling Technical, Introduction to for legalistic techniques recognition Achieving Profession Regulatory, sophisticatio al, conforming, n legalistic, imposition of impersonal standard on (unfriendly other functions )
Administrativ e Managerial
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PM
HRM
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Careful dimension of Aim to go beyond written contract contract Importance of devising clear rules Impatience with rules Business need
Guide to Procedures management action Behaviour referent Managerial task vis--vis labour Key relations Initiatives Norms/ customs & practices Monitoring Labour Piecemeal
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Few
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Dimension
Conflict handling Training & Development Focus for attention for interventions Respect for employees
PM
Temporary
HRM
Climate & culture
Controlled courses Learning Organization Personnel procedures Cultural & structural strategies
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Labour a tool People are assets & expendable & to be used for replaceable benefit of organization Organization interest is uppermost Mutuality of interests Latest 5/26/12
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Shared interests
Strategy
strategy -derived from a Greek wordstrategos -meaninggeneral
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STRATEGY
-The art of war
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Strategy Defined
Strategy refers to determination of
the purpose (or mission) and basic long term objectives of an enterprise, and the adoption of course of action and allocation of resources necessary to achieve the aims.
Objectives are part of strategy
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formulation.
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Levels of Strategy
Corporate Strategy
Business Strategy
Business Strategy
Business Strategy
Functional
Strategy
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among from
the one
different set of
transferring managing
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and nurturing a portfolio of business in such a way that the overall HRM/Prof. DEBASISH DUTTA 5/26/12 corporate objectives are achieved.
courses of action adopted by a firm for each of its businesses separately to HRM/Prof. DEBASISH DUTTA 5/26/12 serve identified customer groups and
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relatively restricted plan which provides the objectives for a specific function, for the allocation of resources among different operations within that functional area and for enabling a coordination between them for an optimal contribution to the achievement of the business and corporate HRM/Prof. DEBASISH DUTTA 5/26/12 level objectives.
ideally seek to balance two sets of force: the firms external opportunities and threats on the other hand internal strength and weaknesses.
The three levels of decision making
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Advantage can be defined as any factors that allow an organisation to differentiate its product or services from those of its competitors to increase market share.
Competitive
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Strategy aims to establish a profitable and HRM/Prof. DEBASISH DUTTA 5/26/12 sustainable position against the
HR as Competitive Advantage
Competitive
Advantage lies not just in differentiating a product or service or in becoming the low cost leader but also in able to tap the companys special skills or core competencies and rapidly respond to customers need and competitors moves.
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corporate-wide technologies and production skills into competencies that empower individual business to adapt quickly to changing opportunities. HRM/Prof. DEBASISH DUTTA 5/26/12
Traditional HR vs Strategic HR
Traditional HR Responsibility of HR Staff Specialist Focus Employee relation Role of HR Initiative Time horizon Control Job design Key investments Accountability
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Strategic HR
Line Manager Partnership with internal and external customers Transactional, change follower Transformational, change leader and initiator and respondent Fast, proactive, integrated Slow, reactive, fragmented Short, med., long (as reqd) Short-term Bureaucratic roles, policies, Organic, flexible-whatever necessary to succeed procedures Broad, flexible, cross training, Tight division of labor, independence, specialization teams People Knowledge Capital and products Investment centre Cost centre
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Barriers to Strategic HR
Short term mentality/focus on
current performance
Inability to think strategically Lack of appreciation what HR can
contribute
Failure to understand Top Managers
role as HR Manager
Difficulty in quantify many HR
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Outcome of Strategic HR
Increased Performance Customer and Employee Satisfaction THROUGH Enhanced Shareholder value
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Effective management of staffing , retention, and turnover through selection of employees that fit with both strategy and culture Cost effective utilization of employees through investment in identified human capital with potential for high retention Integrated HR program and policies that clarify follow from corporate strategy Facilitation of change and adaptation through a flexible, HRM/Prof. DEBASISH DUTTA 5/26/12 more dynamic organization
1. Administrative 2. 3. 4.
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5.
le em 1. 2. Employee Administrative Advocate Expert Operational ue al er HRM/Prof. DEBASISH DUTTA 5/26/12 . V os 28 Focus 5 p 28
Role of HR
Motivation HR Planning Recruitment & Industrial Relations Employee Relations Induction Employer Branding Training & Employee Branding
Selection
Development Organizational Culture Employee Appraisal Change Management Promotion & HRIS Transfer
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Definition - HRP
Human Resource planning includes
the estimation of how many qualified people are necessary to carry out the assigned activities, how many people will be available, and what, if anything, must be done to ensure that personnel supply equals personnel demand at the appropriate point in the future.
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Definition - HRP
Specifically, human resource planning is
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the process by which an organisation ensures that it has the right number and kind of people, at the right place, at the right time, capable of effectively and efficiently completing those tasks that will help the organisation achieve its overall objectives. Human resource planning translates the organisations objectives and plans into the number of worker needed to meet those objectives. Without a clear cut planning, estimation of an organisations human resource HRM/Prof. DEBASISH DUTTA 5/26/12 need is reduced to mere guesswork.
may be defined as strategy for acquisition, utilization, improvement and preservation of the human resources of an enterprise.
The objective is to provide right
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personnel for the right work and optimum utilization of the existing human resources. HRM/Prof. DEBASISH DUTTA 5/26/12
Objectives of HRP
The objectives of HRP are mainly to: Ensure optimum utilization of human
organization
Anticipate redundancies
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development (HRD)
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Importance of HRP
Future personnel needs Part of strategic planning Creating highly talented personnel International strategies Foundation for personnel function Increasing investment in human
resources
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Benefits of HRP
Proper HRP results into a
systematic manner.
Provide basis for HRD.
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HRP Process
Environment Organizational Objectives & Policies HR Programming
HRP Implementation Control and Evaluation of Programme
HR Needs Forecast
HR Supply Forecast
Surplus Restricted Hiring Reduced Hours VRS, Lay off, etc. HRM/Prof. DEBASISH DUTTA 37
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Types of Planning
Planning is generally done on
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Aggregate Planning
Aggregate planning anticipates needs for
groups of employees in specific usually lower level jobs and the general skills employees need to ensure sustained high performance.
Example: The number of
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for
following steps:
Demand forecast Supply forecast Anticipate surplus of employees
in a job category
Anticipate shortage of employees
in a job category
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Demand Forecast
It is the process of estimating the
quantity and quality of people required to meet future needs of the organization.
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Forecasting Techniques
Ratio Trend Analysis Regression Analysis Work Study Technique Delphi Technique Managerial Judgment
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Supply Forecast
Supply forecast determines
whether the HR department will be able to procure the required number of personnel. Specifically, supply forecast measures the number of people likely to be available from within and outside an organisation.
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Supply Forecast
The supply analysis
covers:
Existing human resources Internal source of supply External source of supply
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Job Analysis
Job Analysis is a process to identify
and determine in detail the particular job duties and requirements and the relative importance of these duties for a given job.
Job Analysis is a process where
Analysis is that the analysis is conducted of the Job, not the person.
While Job Analysis data may be
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collected from incumbents through interviews or questionnaires, the product of the analysis is a description or specifications of the job, DEBASISH DUTTA HRM/Prof. not a description of the person. 5/26/12
Job Analysis
It indicates what all a job involves tasks and responsibilities, job title, duties, machines, tools and equipment, working conditions and hazards.
JOB ANALYSIS
JOB DESCRIPTION Job Title Location Job summary Duties Machine tools etc Material etc Supervision Working condition Hazards HRM/Prof. DEBASISH DUTTA 49
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JOB SPECIFICATION Education Experience Training Initiative Physical effort Responsibilities Communication skills Emotional characteristics Sensory system
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Planning
Appraisal Redesign
Compensation
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This may have a performance of specificduties significant Some tasks and impact on the physical and duties. Information to be are tasks to be requirements items able to collected about performed using these perform a frequency, job. may include: specific work duration, The effort, environment may skill, and equipment conditions Job Analysisinclude unpleasant should equipment, collect complexity, tools. Equipment such as following areas: and offensive etc. standards, Supervision The knowledge, odors skills, information on themay include temperature extremes. and abilities (KSA's) givenprotective and There may Duties and Tasks to perform the required also be definite received. risks to clothing. the incumbent such as Relationship job. These Environment an incumbent may noxious fumes, items radioactive While s with to need be and substances, hostile than have specified KSA's higher in a Job internal or Tools and those required for the Equipment aggressive people, and external Analysis. dangerous explosives. job, Job Analysis people. Relationships a typically only states the minimum requirements to Requirements perform the job.
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Recruitment
It is the process of finding and
attracting capable applicants for employment. The process begins when new recruits are sought and ends when their applications are submitted. The result is pool of applicants from which new employees are selected.
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required to successfully perform the duties of the position Description to ensure that the skills and abilities required coincide with the current expectations of the position. If they do not, then a position evaluation should be undertaken. position (i.e. salary and benefit plans, etc.)
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Internal Factors
Recruitme nt
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Recruitment
Building Pool of Candidates
Internal
External
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Recruitment
Sources of Recruitment
Internal External
Current Employee Reference From Present Employee Databank of Former Applicants Retired Employee HRM/Prof. DEBASISH 58Former Employee DUTTA HRM/Prof. DEBASISH DUTTA
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Advertising Employment Agencies Temporary Help Executive Recruiters Referrals and Walk in College Recruiting 5/26/12 Companys Website
invitees
Invitees and interviews Interviews and offers made Offers made and offers
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accepted
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New Hires Offers Made 2:1 Candidates Interviewed 3:2 Candidates Invited 4:3 Leads generated 6:1
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Internal
versus
External Recruitment
Advantages & Disadvantages
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Internal Recruitment
Advantages
1. It is less costly
Disadvantages
1. It perpetuates the old concept of doing things
2. Candidates are already 2. It abets raiding (make a oriented toward organisation person provide something) 3. Organisation have better 3. Candidates current work knowledge about the internal may be affected candidates 4. Enhancement of employee morale and motivation 5. Good performance is rewarded
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4. Politics play greater role 5. Morale problem for those not promoted
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External Recruitment
Advantages
1. Benefits of new skill, new talent and experiences to organisation
Disadvantages
1. Better morale and motivation associated with internal recruiting is denied to the organisation
2. Compliance with reservation 2. It is costly policy becomes easy 3. Scope of resentment, 3. Chances of creeping in jealousies and heartburn are false positive or false avoided negative error
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Selection
Selection
is the process of differentiating between applicants in order to identify those with a greater likelihood of success in a job.
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skill
Unemployment rate Legal and political
considerations
Companys Image
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Selection Process
R E J C T E D
Preliminary Interview Selection tests Employment Interview Reference & background Selection Decision Medical Examination Job Offer Employment Contract
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Personality tests
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Interest tests
Selection Tests
Tests Description
Thomas Profiling Identifying behavioural requirement for the job MBTI PAPI 16 PF ASUFA
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Understanding personality type Behaviour in work place Measuring personality factors Locus of control
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Interviews
Formal,
in depth conversation conducted to evaluate the applicants acceptability. to unskilled, skilled, and professional
Adapted
managerial employees.
the interviewers learn 5/26/12 about the applicant, and the applicant learns
Objectives of Interview
Helps obtain additional
information to applicant
Help build image of the
organization
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Shortcomings of Interviews
Absence of reliability Lack of validity Biases
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Types of Interview
One to one interview:
It consists only two participants
Sequential interview:
Involves series of interviews,
Panel Interview:
Two or more interviewer these are
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Placement
Placement is a process of assigning a
specific job to each of the selected candidates. It involves assigning a specific rank and responsibility to an individual. It implies matching the requirements of a job with the qualifications of the candidate.
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Placement
The significances of placement are
turnover.
It helps in reducing absenteeism. It helps in reducing accident rates. It avoids misfit between the candidate
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Induction
Once an employee is selected and
placed on an appropriate job, the process of familiarizing him with the job and the organization is known as induction.
Induction is the process of
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receiving and welcoming an employee when he first joins the company and giving him basic information he HRM/Prof. DEBASISH DUTTA needs to settle 5/26/12 down quickly and happily and stars
Induction - Objectives
Induction is designed to achieve following
objectives: -
and overcome his shyness nervousness in meeting new people in a new environment.
To give new comer necessary information such as
To build new employee confidence in the It helps in reducing labour turnover and
absenteeism.
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Induction - Advantages
The advantages of formal induction are: Induction helps to build up a two-way channel of
Induction - Contents
A formal induction programme should
Brief history and operations of the company. The companys organization structure. Policies and procedure of the company. Products and services of the company. Location of department and employee
facilities.
Safety measures.
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Grievances procedures.
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Employee Retention
Employee Retention involves taking
measures to encourage employees to remain in the organization for the maximum period of time. essential for an employer. But retention is even more important than hiring.
talented person.
There are many organizations which are
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measures.
Machinery for redressal of
grievances.
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Continued
work environment.
Employers positive attitude
management.
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Training
Training can be described as the
acquisition of skills, concepts or attitudes that result in improved performance within the job environment.
Training refers to the methods
used to give new or present employees the skill they need to perform their jobs.
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Process of Training
Identifying training needs Organising training programme Conduct of training programme Presentation of operation and
knowledge
Evaluation of training
programme
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Fixed, current skill deficit Prepare for future work demands Management Specific job related Immediate Individual General knowledge Long term
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Objectives of Training
To impart the new entrants the basic
knowledge and skills they need for intelligent performance of definite tasks. effectively in their present positions by exposing them to the latest concepts, information and techniques and developing the skills they will need in their particular fields.
by providing them with opportunities for an inter-change of experiences within and HRM/Prof. DEBASISH DUTTA 5/26/12 outside with a view to correct the
skill obsolescence.
increased the need for integrating employees into different corporate cultures.
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employers more often, necessitating HRM/Prof. DEBASISH DUTTA more new hires. 5/26/12 the training of
educational courses or activities should be provided to employees to improve their work productivity. Focus should be placed on needs as opposed to desires. gap between what is required of a person to perform their work competently and what they actual know.
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is needed To determine causes of poor performance To determine content and scope of training To determine desired training outcomes HRM/Prof. DEBASISH DUTTA To provide a basis of 5/26/12
Methods of Training
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type of training is usually adopted where jobs are too varied to permit the establishment of group instruction. It is also used where machinery to be provide to trainees is too costly. Generally the training is imparted to the new employee by the older and experienced employee. This type of training is reasonable alternative for a company where there are almost as many jobs as HRM/Prof. DEBASISH DUTTA 5/26/12 there are employees.
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developing an employee skills and habits consistent with the existing practices of an HRM/Prof. DEBASISH DUTTA 5/26/12 organisation and orienting him
The trainee learns on the actual equipment in use and in true environment of the job. He gets a feel of actual production conditions and requirements. Since the training is given by immediate supervisor it is highly economical as additional resources are not required.
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Learning of rules, regulations and procedures is done by observation of the day to day applications thereby it HRM/Prof. DEBASISH DUTTA 5/26/12 is easy for the management to size up
This type of training is often carried out in a haphazard manner and not properly supervised. At times inexperienced trainer are given this job who are unable to impart skills to the trainee. Lack of motivation on the part of trainer to impart skills as well lack of motivation on the part of the trainee to receive training.
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Learners are often distracted to the HRM/Prof. DEBASISH DUTTA 5/26/12 noisy shop floor.
Apprentice Training
Apprenticeship
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training is the oldest and most commonly used methods. It is a training in crafts, trades and in technical areas. For example: they could be draughtsman, machinist, printer, mechanic, jeweler, electrician etc. Major part of training time is spent on the production work. Each apprentice is given a programme of assignments according to a HRM/Prof. DEBASISH DUTTA 5/26/12 predetermined schedule, which
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from training. A good workmanship can be anticipated hence enhancement in quality. Hiring cost is low because of reduced turnover and lower production cost. Increased loyalty of employee and opportunity for growth are frequent. Higher production can be expected. Satisfied customer. HRM/Prof. DEBASISH DUTTA 5/26/12 Opportunity for youth.
Stipend to paid to various trainees. Period of training is also prescribed. Penalty in case of default on the part of
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Vestibule Training
It refers to job skill training which is
shorter than the apprenticeship training. It is designed to equip the learner to only one phase of training, to operate one machine or to perform a single operation. The training is imparted at the miniature situation of the real plant so that trainee can practice those skill which he will later use on the job. Sometime practical training is imparted on the shop floor when no shift is working.
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generally done
The correct method can be taught
without fear of supervisor as well HRM/Prof. DEBASISH DUTTA 5/26/12 co-worker's observation & their
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Simulation
Simulation method is a technique
which duplicates the actual conditions encountered on a job. This method is essential in case in which actual on the job practice might result in a serious injury or a costly error.
The technique is very expensive
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one. Trainees interest and motivation are high in this kind of HRM/Prof. DEBASISH DUTTA 5/26/12 training because the action of
simplest way of imparting knowledge to trainees. and problem solving abilities are taught. training in short time which in turn reduces the cost per trainee.
Concepts, principles, attitudes, theories Method is useful for large group for
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discussions, interactions, film shows, case studies, role playing and HRM/Prof. DEBASISH DUTTA 5/26/12 demonstrations.
Advantages of Lecture
The most important uses of
lecture in training:
Reducing anxiety about upcoming
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Limitations of Lecture
The limitations are
The learners are passive not
active.
preparation time.
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It emphasises of memorisation of
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individual confers to discuss points of common interest to each other. participative group centered method of development.
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conducted with a organised plan in which the leader seeks to develop knowledge and understanding by obtaining a considerable amount of oral participation from the trainees. HRM/Prof. DEBASISH DUTTA
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