3.1 Training and Development- Concept and Importance

Training is viewed as a short term learning process by which employees acquire the technical knowledge and skills necessary to perform effectively their tasks and responsibilities. Wayne Cascio defines, "Training consists of planned programs undertaken to improve employee knowledge, skills, attitudes and social behaviour so that the performance of the organization improves considerably."

Development is viewed as a long term learning process by which managerial personnel acquire conceptual and theoretical knowledge and skills for enhancing general administrative abilities.

Importance of Training and Development

Training serves various purposes. Training is important to their employees as well as to the organisation. The importance of training is explained as follows:

Figure: Importance of training and development

1. Innovation:

Training facilitates innovation in the organisation. Due to training, the employees come up with innovative ideas in respect of:

Innovation gives competitive advantage to the organisation in the market.

2. Corporate Image:

Training enhances corporate image of the organisation. Due to training, the performance of the organisation improves greatly. Therefore, the image of the firm improves in the minds of various stakeholders: Customers, Employees, Suppliers, shareholders, Dealers, etc.

3. Efficiency:

Efficiency is the ratio of returns to costs. Training enables the organisation to improve efficiency of its employees. Training helps to improve the performance of the employees. Therefore, the company gets higher returns at lower costs. The returns are in the form of:

4. Team Work:

Training helps to improve knowledge, skills as well as attitude. Therefore, training facilitates team work in the organisation. Team work brings success to the organisation.

5. Optimum Use of Resources:

Training ensures optimum use of resources such as:

Optimum use of resources generates higher productivity to the organisation.

6. Motivation:

Training facilitates motivation of the employees in the organisation. Due to training, there is higher performance in terms of sales and profits. Therefore, employees are motivated by giving incentives: Monetary Incentives (salary, bonus, incentives) and Non-Monetary Incentives (working conditions welfare facilities).

7. Competitive Advantage:

Training generates competitive advantage to the organisation Due to training there can be:

Therefore, the organisation can gain competitive advantage in the market.

8. Customer Satisfaction:

Training may result in customer satisfaction. Customer satisfaction takes place when product performance matches with customer expectation. Due to training, the overall performance of the employees improves in terms of product quality, delivery of product, service performance, etc.

9. Absenteeism Reduction:

Training helps to reduce absenteeism. It takes place when employees remain absent without prior performance. Absenteeism creates problems to organisation as well as the co-workers. Training helps to develop positive attitude in workers and therefore, the absenteeism may get reduced.

10. Employee Turnover Reduction:

Training facilitates reduction in employee turnover. Employee turnover takes place when employees leave the organisation Due to training, employees become loyal to the organisation which in turn may reduce employee turnover.

11. Benefits to Employees:

Apart from benefits to the organisation, the training programmes benefit the employees in several ways:

Key takeaways-

3.2 Identifying Training and Development Needs

Training and development is provided to improve work related knowledge, attitude, skills and social behaviour, so that the performance of the trained employees and that of the organization improves considerably. Training is provided for newly appointed employees so that they perform the tasks as expected by the organization. Training is also provided to the existing employees when they are assigned new tasks or projects. Generally, a training need arises when there is a gap between expected performance of an employee (or a group of employees) and the actual performance. Training needs can be identified through performance reviews and appraisal system, feedback from the supervisors or employees, customer satisfaction surveys, etc.

For example, a sales executive is expected to achieve a target sale of 1000 units in a given period, but the sales executive actually achieves only 600 units; the gap between expected performance and actual performance is 400 units. This situation may require motivation and training to the sales executive.

Process of Identifying Training Needs:

An organization needs to identify its training and development needs so as to provide the right training (qualitative and quantitative) to the right employees and maximise the return on investment in training. The following are the steps in identifying training needs of an organization:

Figure: Process of Identifying Training Needs

1. Analyze Organizational Needs:

An organization must analyze the need for training its employees. The need for training the employees arises as new knowledge and skills may be required due to changes in:

An organization must conduct SWOT analysis to identify the organizational needs, so as to plan for its training needs.

2. Analysis of Strategies and Tasks:

Management must frame effective strategies in all functional areas (marketing, production, finance, HR, etc.). Clear goals and targets must be set for all strategies. Also, tasks or activities must be listed to achieve the goals.

At this stage, the tasks requirements must be compared with the existing employee knowledge and skills. This comparison enables to identify the potential gaps. The potential gaps will indicate that there is a need for training to improve the knowledge and skills so as to cope up with the tasks requirement. Management can conduct this analysis by setting up assessment centres, aptitude and ability tests, observation of employees undertaking key tasks, etc.

3. Analysis of Training Needs of Individual Employees:

Management needs to find out the training needs of individual employees. This is because; some employees may be fully equipped with the knowledge and skills to cope up with tasks requirements, whereas, others may lack the required knowledge and skills. This information can be obtained through l performance reviews and appraisal systems, Observation of employee performance by superiors, feedback from employees, etc.

4. Develop a Training Plan:

The HR manager needs to prepare a training plan. The training plan should indicate:

5. Decision on Training Method:

Training method is an important element of training plan. The HR manager must select the right training method depending upon the tasks requirement and the existing level of knowledge and skills of the employees. There are various methods of training which include:

6. Communication with Employees:

The HR manager needs to inform the employees of the reasons for attending certain training programmes. The findings of training needs analysis must be communicated to the employees. Also training plans need to be informed to the employees. The FR manager may invite suggestions from the employees to make training programmes more effective.

7. Implementation of Training Programme:

There must be effective implementation of training programme. Implementation of training programme involves:

8. Review of Training Outcome:

The HIR manager needs to review the outcome of the training programme. The impact of the training programme must be evaluated in terms of knowledge and skills gained by the employees, productivity outcomes, customer/client satisfaction level, and so on. The HR manager may evaluate impact of the training on the employees by comparing their performance before and after the training. The HR manager needs to provide feedback to the top management regarding the effectiveness of the training programme. Based on the review, necessary changes can be incorporated in the future training programmes.

Key takeaways

3.3 Designing Training Programmes

There seven main steps involved in designing a training programme for employees. The steps are discussed below-

Figure: Steps in training design

Step 1. Responsibility for Training:

To be effective, a training programme must be properly organised. Training is quite a strenuous task which cannot be undertaken by a single department.

The responsibility for training may be shared among the following:

(a) The Top Management:

It should frame and authorise the basic training policy, review and approve the training plans and programmes and approve training budgets.

(b) The Personnel Department:

The Personnel Department should plan, establish and evaluate instructional programmes.

(c) The Line Supervisor:

The Line Supervisor should implement and apply various developmental plans.

(d) The Employees:

The Employees should provide feedback, revision and suggestions for improvements in the programme.

Step 2. Selection and Motivation of the Trainees:

Proper selection of trainees is of great importance to obtain permanent and gainful results. It is necessary to decide who is to be a trained-new or old employee, unskilled or semi-skilled workers, supervisors or executives. Selection of candidates for training should be made only after careful screening of the prospective employees for the effectiveness of the programme. It is also necessary to create a desire for learning. The employees will be interested in training if they believe that it will benefit them personally. A trainee should be given proper background information before he starts learning new job skills and gets knowledge. The trainer should explain to the trainee the importance of the job, its relationship with the work flow and the importance of learning. The trainer should not forget the newness of the trainee to the training programme.

Step 3. Preparation of Trainer:

The success of the training programme depends upon the trainer or the instructor. Trainer must be well qualified and may be obtained from within or outside the organisation. It should be decided before hand what is to be taught and how. He should be able to divide the job into logical parts so that he may teach one part at a time without losing his perspective of the whole. As training is based upon the needs of the organisation, the trainer must have a clear cut picture of the objectives of training in mind. Trainer needs professional expertise in order to fulfill his responsibility. If he is ill informed about the training process or knows little about possible connection between training and management, he deserves the casual treatment. The trainer should explain and wherever necessary, demonstrate the operations step by step and should allow the trainees to repeat these operations. He should also encourage questions from the trainees.

Step 4. Training Material:

Training material may include study notes, case studies, pamphlets, charts, brochures, manuals, movie slides etc. The material may be prepared in the training section with the help of the supervisors. The written material should be distributed among the trainees so that they may come prepared in the lecture class and may be able to understand the operation quickly and remove their doubts, if any.

Step 5. Training Period:

The length of the training period depends upon the skill of the trainees, purpose of the training, trainees’ learning capacity and the training media used. The time of training, whether before or after or during working hours, should be decided by Personnel Manager taking in view the loss of production and benefits to be achieved by training.

Step 6. Performance Tryout:

The trainee is asked to do the job several times slowly. His mistakes are corrected and if necessary the complicated steps are explained again. As soon as the trainee demonstrates that he can do the job rightly he is put on his own and training is over.

Step 7. Follow Up:

In this step, the effectiveness of the training programme is assessed. The feedback generated through follow up will help to reveal weaknesses or errors, if any. The supervisor should have a constant vigil on the person and his performance. If he is still facing any difficulty on the job, he must be given full guidance by the immediate supervisor and should be initiated to ask questions to remove the doubts. If necessary, instruction may be repeated until the trainee learns whatever has been taught to him. Follow up action reinforces the learning process. It also helps in designing future training programmes.

3.4 Role Specific and Competency Based Training

Role based training

Role-based training refers to the unique approach and customized training, depends on the specific roles and function in a company. It includes task-based and customized training including the workflow and collaboration. Role-based Training puts the training in the context of a specific role and what it takes to perform in that role. Unlike the traditional approach of training delivery which focuses on overall business process neglecting individual roles of employee, it delivers training which is close to the role of your employee. Using different technologies like eLearning, mobile and others we have delivered training in different domains and sectors like:

Competency based training

Competency-based training is a type of training that is focused on specific competencies or skills. Unlike other more traditional training methods, competency-based training is broken down into much smaller units that are focused on one single key skill. The learner must demonstrate his or her mastery of that single skill or competency before continuing to the next segment of training. The skills are put together into modules and typically at the end the learner receives some form of qualification or certification. This type of training may also be called outcome-based learning/training or skills-based learning/training. Competency models define what performance success should look like within the organization for each individual job. The model is applied to recruitment practices, talent management, training and performance assessment.

Competency examples are:

Figure: Competency based training system.

Source: https://www.valamis.com

Different types of competency based training are-

Figure: Types of competency based learning model

1. Comprehensive Competency-Based Learning Program

It is ideal for small- to medium-sized organizations, start-ups, organizational restructuring/reorganizations. It is intimately intertwined with competency mapping, which in turn is only effective when aligned with the business goals and specific objectives of individual departments or teams. The "reset" that often follows major reorganization or change to organizational structure such as downsizing or mergers can be the ideal moment to integrate a competency-based learning approach to existing or planned learning deliverables. Comprehensive competency-based learning programs require an organizational commitment and resources beyond those required for the reactive learning approach. This initial cost outlay will eventually find its way back to the organization in the form of increased ROI; competency-based learning content is inherently more stable over the long term.

2. Isolated Competency-Based Learning Program

It is ideal for new departments/teams, departments/teams undergoing reorganization/restructuring. A substantial number of our past, current, and potential clients have not established their Learning and Development initiatives around competencies but have existing libraries of learning assets. These include eLearning modules, learning videos, workshops, and Instructor-Led training that might or might not align with desired competencies. Attempting to shift the entire learning structure of an organization toward a competency-based program might be cost-prohibitive, time-consuming, or a combination of both. The opportunity usually presents itself during a period of change. This could be something along the lines of the creation of a new department or a significant reorganization of an existing structure such as a steering team or any team with a reoccurring objective. Managerial motivation to "do it right" often stems from this type of novelty.

3. Competency-Based Learning Audit and Learning Asset Review

It is ideal for organizations that sense that the learning department could be achieving better results but are understandably wary of major, dramatic change. Though many organizations have only the best intentions for their employees/learners in mind, the reality of a day-to-day business environment can impact how learning is conducted. Though the HR team and management might really be on board to overhaul the learning program, they might be constrained by having to work within the existing environment and delivering results here and now. Obsidian loves working with professionals who are pulling off this balancing act. A competency-based learning audit is a relatively short and simple exercise that usually involves the head of a department or team and an HR representative with conceptual knowledge of the employees who are part of this team.

There are a lot of benefits of this type of training—for both the employee and employer which are discussed below-

Figure: Benefits of competency based learning

Since the modules are broken down into small units, it can be less daunting to begin. Learners are able to simply complete a unit on an as-needed basis, without having to commit to a longer program all at once. This can make it easier to fit into already busy work schedules—allowing your employees to gain skills without taking them away from other tasks for too long.

2.     User-directed

These types of modules are often self-paced, which means they can be completed at the user’s discretion. This can allow more flexibility in getting an entire team trained on a particular skill without having to get the whole team together at once. It can also mean that individuals can skip ahead when they already know one component, while those who need extra time can take it.

3.     Reduced cost

With the way these types of modules are typically used, it can be  less expensive to implement than a larger training program, while still garnering many benefits for employees and employers alike. Less money is wasted on components of a program that are not as useful.

4.     Allows personalization

This type of training can be set up to allow users to “test out” of specific modules, which can mean an entire program can be modified to suit individual needs. One individual may be able to skip modules in which he or she is already knowledgeable, thus saving everyone’s time and effort. It can also mean a larger program can be completed more quickly.

5.     Flexible use

It can be used on its own or in conjunction with other learning methodologies, depending on the overall training goals. Alternatively, it can be used in remedial training situations since individual units can be taken alone and assessed.

6.     Better retention

Learners can be more focused since they are able to take the training units at times that best suit them.

7.     Workplace integration

This can be tied to career progression or to receiving pay raises in some cases. This is because this type of training is very objective in nature since it requires the learner to show competency in order to progress.

Key takeaways-

3.5 Evaluating Training Effectiveness

Training evaluation refers to an attempt to obtain relevant information on the effects of a training program. It is considered an essential aspect of a training event to be able to reflect, analyze, and improve its effectiveness and efficiency. The primary objective of evaluating any training program is to develop an understanding of whether it has achieved its stated objectives. There are several types of training evaluation methods and tools available that enterprises can use to evaluate and significantly improve the outcome of future training as well. Some of the noteworthy benefits of training evaluation are –

Figure: Benefits of evaluating training effectiveness

Training evaluation brings in greater accountability by ensuring that training programs comply with all the competency gaps, and there is no compromise on deliverables.

2.     Transparency in Feedback

Evaluation of training programs also acts as a proper feedback mechanism for the trainer and the overall training process. Since evaluation mostly assesses individuals at the level of their work, it makes it simpler to understand the loopholes of the training so that required changes in the methodology can be implemented.

3.     Cost-Efficiency

Evaluation of training and development ensures that the training programs bring in cost-efficiency in the system by effectively improving the work quality and development of new employee skills within a certain budget.

Methods of evaluating training effectiveness

There are several types of training evaluation methods to measure the effectiveness of enterprise training, such as surveys, post-training quizzes, participant case studies, and official certification exams. The top 5 proven methods that enterprises can use to measure training effectiveness are discussed below-

Figure: Models for evaluating training effectiveness

1. The Kirkpatrick Taxonomy Model

Kirkpatrick Taxonomy is one of the most widely used methods for evaluating the effectiveness of corporate training programs. Developed and designed by Don Kirkpatrick, the framework offers a comprehensive four-level strategy to evaluate the effectiveness of any training course or program. The four levels used in this are –

Figure: Levels of Kirkpatrick Taxonomy Model

This is the level where you gauge how the participants responded to the training given to them. To be able to identify if the conditions for learning were present, you can ask the participants to complete a short survey or feedback forms and gauge their reactions to training.

In the second stage, the idea is to understand what the participants learned from the training. In most cases, practical tests or short quizzes before and after the training are used to assess this.

This is the stage that takes place a while after the training. In this stage, you try to assess whether the participants actually put what they learned into practice in their job roles. This can be done either by asking participants to complete self-assessments or by asking their supervisor to formally assess them.

In the last stage, you need to evaluate whether the training met the stakeholders’ expectations by determining the return on the expectations, also known as ROE.

2. The Phillips ROI Model

Very similar to the Kirkpatrick model in approach, the Phillips ROI model has an extra step, which is to evaluate the program’s return on investment (ROI) by measuring the difference between training cost and training results.

Here is the step by step procedure to calculate ROI as per this method –

Figure: Process of Phillips ROI Model

The first step here is to collect pre-program data as a baseline measure that allows you to compare metrics before and after training.

The next step is to collect post-training data through varied sources such as participants, organizational performance records, team/peer group, participants’ supervisors, and other internal/external groups.

At this stage, determine whether results discovered are actually due to the training program. Identify all the key factors that might have contributed to the performance improvement

Once you’ve isolated the effect of the program, you need to convert the data to monetary values and compare it to the overall program costs

Use the formula below to calculate the return.

ROI(%)= Net programme benefits x100/ Programme cost

In case the training results exceed the cost, it is an indication of a positive training ROI. Whereas if the cost of training is more than the results, enterprises need to change their approach.

3. Summative and Formative Evaluation

A thorough evaluation can give you the best insight into the drawbacks of your training. So, it is also important to know how to assess a training program both while it’s being developed (formative evaluation), and after it has been delivered. (summative evaluation).

How to Conduct a Formative Evaluation?

The steps to conduct a formative evaluation are –

How to Conduct a Summative Evaluation?

Some of the steps to conduct a summative evaluation are –

4.     Kaufman's Five Levels of Evaluation

Figure:  Steps of Kaufman's Five Levels of Evaluation

5. Anderson's Model of Learning Evaluation

Yet another favourite type of training evaluation method, the Anderson model, helps businesses to keep their business strategy a priority. There are three stages to the Anderson Model –

Figure: Steps of Anderson's Model of Learning Evaluation

Key takeaways-

3.6 Training Process Outsourcing

Training Process Outsourcing (TPO) is the outsourcing of a complete set of activities across the training value chain to specialized firms or to specialized business units and individuals to optimize costs, enhance available internal bandwidth, and simultaneously improve business returns. Training process outsourcing is when a business hires an external provider to manage a complete set of L&D activities or processes. Organizations usually hire a training company that provides end-to-end L&D services, such as a managed learning services provider. A managed learning company operates differently than other types of learning vendors in the training industry. More traditional training vendors vary in size and often specialize in a particular area within the industry. These providers can offer more extensive offerings than traditional training vendors. They give businesses the option to work with a single organization to handle all their training outsourcing needs. They also can help organizations fill L&D gaps and needs that other vendors may not provide. TPO has some key elements that support it including:

Functions of Training process outsourcing

The activities of training process outsourcing are discussed below-

Today many organizations are focusing on developing new learning strategies to reskill their current workforce. An experienced managed training provider will have a strategic process for developing learning strategies that maximize training ROI. The most successful training outsourcing programs and companies utilize an outcomes-based approach to create highly effective strategies that support business goals.

2.     Learning administrative services

Business process outsourcing includes services outside of the more commonly outsourced activities like delivering training and training content development. These activities must be done for training and development to run smoothly but lie outside the typical core activities.

They include administrative tasks such as scheduling, budgeting, and content management. They can also include the administration of a learning management system. Outsourcing these activities can lighten the workload of your internal teams.

3.     Instructor facilitation

Many organizations are currently working on closing talent gaps. There is an increased need for instructors for both face-to-face courses and virtual instructor-led sessions. An outsourced provider will already have a strong pipeline of learning talent. They can assist you with recruiting, on boarding, and training new learning staff. Vendor management Enterprise organizations commonly choose to outsource with multiple training industry vendors to develop and manage their training programs. Working with numerous vendors requires research, contract management, vendor integration, issue resolution, and more. Learning bpo can help streamline these activities.

4.     Measurement

Blended eLearning programs have grown in popularity in the last year. Organizations quickly converted their in-person training programs into online formats after the spread of Covid19. These custom online learning solutions can be measured and optimized with learning analytics. An outsourced provider can help streamline this process. They will already have a team of professionals who know how to use modern tools for measurement effectively.

3.7 Management Development

Management development is the overall concept that describes the many ways in which organizations help employees develop their personal and organizational skills, either as managers in a management job or with an eventual management job in mind. Management development is a systematic process of management training and growth by which individuals (aspiring to rise on the ladder of management) gain and apply knowledge, skills, insights, and attitudes to manage managers, workers and work organisations effectively. Management development, therefore, means any planned, guided or directed activity undertaken by a manager to help himself become more competent in his present and/or to consciously prepare himself for assuming higher and more important managerial duties and responsibilities so that he can claim promotion by merit or competence. Management development programme must be based on following principles:

Figure: Principles of mgt. Development

1. All development is self-development – It means that people are developed not so much by others as by themselves. This principle highlights the importance of an individual candidate’s inner motivation and basic abilities. The primary responsibility must rest upon the person to be developed.

2. Development is closely akin to education – Development is more closely akin to education than it is to specific training in skills because the development programme aims at overall growth of an individual to enable him/her to achieve the desired objectives.

3. Gearing to individual differences – Too much emphasis should not be laid on uniformity of development efforts. Instead, development efforts should be geared to individual differences. An individual must be helped, and the development programme should be so planned as can create an environment in which self-development is stimulated and facilitated.

4. Long-range process – An executive cannot be developed just by taking a course, holding a job, reading a book, or attending a seminar or conference. Such development is rather a long-range process with individual development programmes running into many years.

5. Adequate facilities – For encouraging self-development, it is necessary to create an effective organisational climate, making all developmental facilities available.

6. Adequate rewards – The people who display interest and activity in development should be rewarded appropriately.

7. Effective immediate supervisor – The immediate supervisor exercises a key influence. The supervisor should emphasise on high-quality performance, supportive coaching and proper counselling.

Characteristics of management development-

1. It is an organised process of learning rather than a haphazard or trial and error approach.

2. It is a long term process as managerial skills cannot be developed overnight.

3. It is an ongoing exercise rather than a “one-shot” affair. It continues throughout an executive’s entire professional career because there is no end to learning.

4. Management development aims at preparing managers for better performance and helping them to realise their full potential.

5. Executive development is guided self-development. An executive can provide opportunities for development of its present and potential managers. Bill the image for learning has to come from the executive itself. Executive development is possible only when the individual has the desire to learn and practice what he learns.

Objectives of management development-

The primary aims and objectives are:

1. To sustain better performance of managers throughout their careers.

2. To improve the existing performance of managers at all levels.

3. To encourage existing managers to increase their capacity to assume and handle greater responsibility.

4. To enable the organisation to have the availability of required number of managers with the required skills to meet the present and anticipated (future) needs of the organisation.

5. To replace elderly executives who have risen from the ranks by highly competent and academically qualified professionals.

6. To provide opportunities to the executives to fulfil their career aspirations.

7. To ensure that the managerial resources of the organisation are utilised optimally.

Importance of management development

The importance of management development are discussed below-

Figure: Importance of management development

1. Social Obligation:

Organization is a part of society. Society has expectations, demands for its growth and development from societal members including organization/s functioning in the society. Organization can fulfil societal demands / requirement if managers are capable enough to analyse social obligations to present cases as spokesperson of the society to the company, to develop a bridge between company thinking and societal expectations, to make the society aware of Contributions Company made for amelioration and well-being of the members of the society.

2. Effect of Globalization:

Because of globalization, multinational corporations (MNCs) and trans-national corporations (TNCs) have entered in the market resulting in, stiff competition amongst the market players. In such a situation, it becomes difficult for the domestic companies to survive in the context of quality goods they supply and the price they fix for the customers. It is, therefore, imperative need for the companies to have world class workers for production of world class product at reasonable cost; and the companies can have such dynamic workforce if, they have highly skilled, committed, dynamic pool of management personnel who can prepare the workers’ community according to need, requirement of the companies. So, here is the necessity of management development to face the challenges emanated from the globalization.

3. Effective Functioning of Line Management:

Line management/technocrats are well conversant with technicalities of production activities but, they may lack adequate skill, abilities in human relations development and conceptual areas of the company. For effective functioning of their work they need improvement, development of their skills in those areas where they lack. Hence, management development programmes are required to be conducted to promote enhancement of human skill and conceptual skill of technocrats, line managers of organizations so that, they can perform their job better in terms of need, requirement of the companies.

4. Excellent Quality of Work of Non-Technical Higher Management:

Technical skill is required for excellent performance by non­technical managers. Requirement of technical skill of management personnel varies in degree considering grade/strata of the management to which they belong. Higher level management may need some knowledge/skill in technical areas and so, for better functioning they need to acquire skill in this area. Management development programme designed to impart technical skill to such non-technical higher management personnel may facilitate to deliver excellent quality of work by them.

5. Use of Latest Technologies:

Every organization needs to use latest technologies in its operational and service activities so that, quality goods at minimum cost can be produced to face competition with the market players but, these latest technologies cannot be effectively used if, the managers are not given proper training to have acquaintances with technologies, its operative areas, use, effectiveness, probable problems, etc.

6. Change in Economic Policy:

Change in economic policy creates a new business climate and work culture in organization where re-inventing of management practices appears to be of much necessity. New areas are required to be explored for expansion and diversification of business; continuous improvement of quality in services and products needs to be emphasised; issues like retention of customers and search out for new customer be prioritized.

7. Smooth and Effective Functioning of Business Activities:

Workers perform business and industrial activities under the guidance and supervision of management. Management personnel play the role of guide, coach, motivator, leader of the people at work. Workers can be effective if the decisions, directions, guidance of the management are proper, perfect and accurate.

Key takeaways

3.8 Career Development

Career development involves those personal improvements that a person undertakes to achieve a personal career plan. Career management is the process of designing and implementing goals, plans and strategies to enable the organisation, to satisfy employee needs while allowing individuals to achieve their career goals. The career development involves the process of conversion of personal career plan into action in order to achieve career goals. There are three key heroes who share responsibility for an employee’s career development- the employee, the organisation, and the manager.

The following are the career development actions-

Figure: Career development actions

1. Performance of the job- In career development progress an individual employee must prove that his performance on the job is upto the standard established.

2. Employee exposure- The employees interrupting in their career groups should expose it by their skills, knowledge qualification, achievement outstanding performance etc. to the staff members to take the decision about the career development elsewhere.

3. Resignation by the employee- The employees may resign the present job in the organization, when they get better career opportunities elsewhere.

4. Change the Job- Employees those who have better career prospects in some other job in the some organizations, such employees may change the job.

5. Career guidance and counselling- It provides full information, proper advice and encouragement to move from one career to other better career in the same organization or in some other organization where better career opportunities are available.

Benefits of career development

The benefits of career development actions are discussed below-

a) Benefits of a Career Development System to Organization:

1. Once organization has a fair idea about employee’s strengths and weaknesses, attitude and behaviour, values and future aspirations and skills and competencies, they are able to make better use of employee skills and put them at the right place.

2. The organization can disseminate all important details and information at all organizational levels in order to ensure effective communication at all levels. It fosters and lays emphasis on better communication within the organization as a whole.

3. It also helps organization retain valued employees by providing them what they want. Since the organization is able to collect all necessary information about a specific individual, it can make efforts to retain them.

4. It establishes a reputation of the organization in the market. More and more working professionals see it as a people developer and get attracted towards it.

b) Benefits of a Career Development System to Employees:

1. The major benefit of career development system to employees is that they get helpful assistance and guidance with their career decisions. They get to know about their own aspirations, objectives and desires and understand how to shape their career.

2. By using this system, they can set more realistic goals and objectives that are feasible to be accomplished over the span of one’s life.

3. It fosters better communication between the employee and the manager as well as at all levels of the organization.

4. The best part is that they can get feedback on their performance. This helps them improve their working style and compels them to upgrade their skills.

5. The process leads to job enrichment and enhanced job satisfaction.

c) Benefits of a Career Development System to Managers/Supervisors:

1. A career development system helps managers and supervisors in improving and upgrading their skills in order to manage their own career. Even they get to where they are heading to and what their aspirations are.

2. It fosters better communication between managers and employees.

3. It helps them in retaining valued employees as they get to know about their skills and competencies and future aspirations as well.

4. It helps in discussing productive performance appraisal of employees and planning their promotions as well as their career graph.

5. It leads to greater understanding of the organization as a whole and cultivate a supportive and conducive culture in the organization.

6. It helps managers in understanding the hidden aspects of employees and guides them to allocate employees the right job that matches to their skills and competencies.

Career development process

The career development process involves the following steps-

Figure: Career development process

1. Identifying Career Needs:

Some large organizations have assessment centres or conduct career development workshops wherein a group of employees are brought together to undergo psychological testing, simulation exercises, and depth interviews. This process helps the employee to make a decision regarding career goals and the steps to be taken to put efforts to attain these goals. The HR manager also plays an important role of providing information and assistance in making decisions about the career needs of the employee.

2. Developing Career Opportunities:

Career opportunities are identified through job analysis. The manager should identify career path for employees in the organization. He/she should dis­cuss with the employees what jobs are available in the organizational hierarchy and at the same time find where the employee would want to go up in the organization in future. The employees should be provided information regarding job postings that are available in the organization and, for future reference, what requirements they will have to fulfill to achieve the promotion which they aspire.

3. Integration of Employee Needs with Career Opportunities:

It is necessary to align the needs and aspirations of the employees with career opportunities in order to ensure right people will be available to meet the organizational manpower requirements. Therefore, emphasis is placed on the training, on- and off-the-job, counselling and coaching by supervisor, and planned rotation in positions of varying functions and in different locations. The process is pursued further with the help of periodic performance appraisals. Training and counselling will be a wasteful exercise if the employee does not make progress along his/her career path.

4. Regular Monitoring:

It is necessary to regularly monitor the progress of the employee towards his/her career development plans and see that the support is being provided to develop those career plans. If there is a discrepancy, steps should be taken to reassign work as necessary to ensure that career development plans are met. In situations where career opportunities are not available due to influence of technology and economic factors, the organization should redesign jobs or make career shifts.

Techniques of career development

The tools and techniques of career development system are discussed below-

Figure: Career development techniques

1. Self-Assessment Tools:

This is the first technique that is widely used by organizations in their efforts to career management of their employees. This is a career exploration tool where individuals complete self- assessment exercises and fill information about their skills, interests, competencies, work attitudes and preferences, long and short term goals and obstacles and opportunities. The whole exercise helps them understand their own desires and aspirations and likes and dislikes.

2. Career Planning Workshops:

Once employees are through their self- assessment, they share their findings with other individuals and their supervisors in career-planning workshops. It allows them to receive feedback from others and check the reality of their plans and aspirations. They may change their plans if they find them unrealistic and move in new direction.

3. Individual Counselling:

It is one of the most common activities that are undertaken by almost all people developing organizations. Generally, individual counseling is provided by career development specialists, HR specialists or life skills development trainers. Some organizations hire them from outside while some have their own fully fledged departments where they recruit and hire trainers for full time. It helps employees in understanding their own goals, making a change in them if required and working on improving their skills and competencies.

4. Organizational Assessment Programs:

Organizational assessment programs include tools and methods for evaluating employees’ potential for growth within the organization. Johnson &, Johnson is one company that uses these programs to assess the careers of their employees and evaluate their potential in order to facilitate the staffing and development of special teams known as “tiger teams”. These special teams are formed to speed up the development of new products. The most popular programs under this category include assessment centers, psychological testing, 360 degree appraisal, promotability forecasts and succession planning.

5. Developmental Programs:

Developmental programs are used by an organization to develop their employees for future positions. They can be internal as well as external and can be performed under the supervision of human resource staff or trainers and specialists from outside. These programs include assessment centers, job rotation programs, tuition refund plans, internal training programs, external training seminars and formal mentoring programs.

Key takeaways

References

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• SanghiSeema, Human Resource Management – Vikash Publication.