2. The Difference Between Human Resources, Human
Capital and Human Investment
• To translate our human resources into human capital and ultimately
into human investment with the intention of reaping handsome
financial and non-financial returns.
• Human resources is a general term used to represent the people
element within organization. It is simply human potential. Potential
with infinite capabilities and capacity with the possibility of beneficial
engagement.
• Human Capital is a well employed human resource that is actively
engaged in meaningful, worthwhile work and delivering some level of
desired productivity
• Human Investment is determined by the degree to which the human
capital is productive and producing dividends. Human Investment is a
question of physicality, knowledge and application channelled towards
great returns on investment
• Capital shown in the liabilities side of the balance sheet, but
Investment shown in the assets side of the balance sheet.
12/5/2015 2
5. • Human resource development includes training an individual after he/she is
first hired, providing opportunities to learn new skills, distributing
resources that are beneficial for the employee's tasks, and any other
developmental activities.
• Human Resource Development (HRD) is the integrated use of training,
organizational development, and career development efforts to improve
individual, group, and organizational effectiveness
• A process for enabling people to develop their knowledge, skills and
attitude; for effective performance of their (paid or unpaid) work roles; for
their personal growth and for interpersonal effectiveness to; lead a fulfilled life
as individuals, develop harmonious relations in groups and thereby create a
progressive society free from conflict, poverty, ignorance and ill health.
Human Resource Development
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6. All living creatures can learn.
All people are endowed with a natural capacity for learning.
Facilitation and reinforcement promote learning.
Learner’s viewpoints should be given due consideration.
Different learning styles.
Repeated practice of a learned competency increases retention
of learning.
Learning linked with career progression.
Learning effectiveness requires a positive atmosphere.
Learning context and practice context be the same.
Effective learning requires an environment free from distraction
and disturbances.
PRINCIPLES OF HRD
Continues….
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8. • “Training is the act of increasing the knowledge and skills of an
employee for doing a particular job.” — Edwin B. Flippo
• Training - a planned effort by a company to facilitate employees’
learning of job-related competencies.
• Competencies include knowledge, skills or behavior critical for
successful job performance.
• The goal of training is for employees to master the competencies and
apply them to their day-to-day activities.
• To use training to gain a competitive advantage, a company should
view training broadly as a way to create intellectual capital.
• Intellectual capital includes basic skills and advanced skills- an
understanding of the customer or manufacturing system, and self-
motivated creativity.
What is Training?
12/5/2015 8
9. Training and Development (T&D)
• Training – improving the knowledge, skills and attitudes of
employees for the short-term, particular to a specific job or task
– e.g.,
• Employee orientation
• Skills & technical training
• Coaching & Counseling
• Development – preparing for future responsibilities, while
increasing the capacity to perform at a current job
• Management training
• Supervisor development
• Training is the act of increasing the knowledge for doing a particular
job. But development refers to the growth of an individual in all
respects
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10. Need and Importance of Training
• Important, not only for the organization, but also for the employees.
• Greater job security and an opportunity for career advancement.
• Changing Technology- continuous process to update the employees in
new methods and procedures.
• Demanding Customers- customer conscious, Intensified competition
• Thrust on Productivity- Productivity in the present times stems from
knowledge, which has to be relearned continuously.
• Improved motivation- Motivated employees have lesser turnover,
providing an organization with a stable work force.
• Accuracy of output- This reduces accidents in the organizations.
• Better Management- It helps them in reducing the costs of supervision,
wastages and industrial accidents. It also helps increase productivity and
quality.
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11. What Does Training Include?
• Udai Pareek- There are three elements of training – purpose, place
and time.
• Training without a purpose is useless because nothing would be
achieved out of it.
• After having identified the purpose of a training programme, its place
must be decided i.e. whether it has to be on the job or off the job.
• The next element is the time. Training must be provided at the right
time. A late training would provide outdated knowledge, which would
be useless for the employees.
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12. Objectives of Training
1. To increase the knowledge of workers in doing specific jobs.
2. To systematically impart new skills to the human resources so
that they learn quickly.
3. To bring about change in the attitudes of the workers towards
fellow workers, supervisor and the organization.
4. To improve the overall performance of the organization.
5. To make the employees handle materials, machines and
equipment efficiently and thus to check wastage of time and
resources.
6. To reduce the number of accidents by providing safety training
to employees.
7. To prepare employees for higher jobs by developing advanced
skills in them.
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13. Training vs. Development
Training
1. Training means learning skills and
knowledge for doing a particular job
and increases skills required for a job.
2. Training generally imparts specific skills
to the employees.
3. Training is concerned with maintaining
and improving current job performance.
Thus, it has a short-term perspective.
4. Training is job centered in nature.
5. The role of trainer or supervisor is very
important in training.
Development
1. Development refers to the growth of
an employee in all respects. It is more
concerned with shaping the attitudes.
2. Development is more general in
nature and aims at overall growth of
the executives.
3. Development builds up competences
for future performance and has a long-
term perspective
4. Development is career-centered in
nature.
5. All development is ‘self-development’
and the executive has to be internally
motivated for the same.
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14. Roles and Responsibilities for the Trainers
• The trainer: helping people to learn, providing feedback about their
learning and adopting course designs to meet trainees’ needs.
• The provider: It involves training-needs analysis; setting objectives;
designing courses; choosing appropriate methods; testing out and
evaluating courses or training activities; and helping trainers to deliver
the training
• The consultant: As a consultant, a trainer is primarily concerned with
analysing business problems and assessing/recommending solutions,
some of which may require training.
• The innovator: As an innovator, a trainer is concerned with helping
the organizations to manage the change effectively and to solve
performance problems.
• The manager: A manager’s role in training is primarily concerned
with planning, organizing, controlling and developing the training and
development activity or function
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15. Types of Training
• Some of the methods which are usually used for training of employees are:
• (1) On The Job Training
• (2) Off-The-Job-Training
• (3) Apprenticeship Training
• (4) Vestibule Training (Training Centre Training)
• (5) Internship Training and
• (6) Induction Training.
• The method selected should be best suited to a specific organisation’s needs.
The various factors generally considered for selecting a method include—
skills required qualifications of candidates, cost, time available, depth of
knowledge etc.
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16. On The Job Training
• Under this method an employee is instructed by some experienced employee, who may be a
special instructor or supervisor.
• The success of this type of training mainly depends on the trainer.
• Usually training in crafts, trades, technical areas etc., is given by keeping the unskilled or semi-
skilled worker under the guidance of skilled workers.
• On the job training may be in the form of coaching, job rotation and special assignments.
• Advantages:
• (1) The workers learn the job in actual conditions rather than the artificial conditions. It
motivates employees to learn.
• (2) It is less expensive and consumes less time.
• (3) The training is under the supervision of supervisors who take keen interest in the training
programme.
• (4) The production does not suffer under this method.
• (5) The trainee learns rules and regulations while learning the job.
• (6) It takes less time as skill can be acquired in a short period.
Limitations:
• (i) The training is highly disorganised and haphazard.
• (ii) The supervisor may not be in a position to devote time and hence faulty training may take
place.
• (iii) The experienced trainers may not be available.
• (iv) There is a lack of motivation on the part of the trainee to receive training.
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17. Off-The-Job-Training
• Under this method, a trainee has to leave his place of work and devote his entire
time for training purposes.
• He does not contribute anything towards production during training.
• This type of training may be arranged in the enterprise or may be acquired from
specialised institutes imparting such training.
• Advantages:
• (a) Trainees receive some stipend during training.
• (b) The trainees get valuable skill which carries good demand in the market.
• (c) From employer’s point of view, it is cheap source of labour and in addition a
skilled work force is maintained.
• (d) It reduces labour cost and production cost as rate of labour turnover is very
low.
• (e) The loyality of the employees is ensured.
• Limitations:
• 1. The training period is very long and the trainee requires regular supervision
which may not be possible in a large scale concern.
• 2. Rigid standards make this method unsatisfactory.
• 3. If a worker fails to learn after long period of training he may not be absorbed.
This may create labour problem for the firm.
• 4. It is an expensive method.
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18. Off-The-Job-Training- Methods
• Lectures or Class Room Method: The technical or special information can
be given in a simple way through lecture system. This method is
advantageous when a large number of trainees are to be trained at a time.
• The Conference Method: The trainees explain the facts, principles or
concepts and discussion takes place. The trainees pool their knowledge and
try to find solution to the problem or develop new ideas as per the inference
of the discussion. This method is suitable for analysing problems and issues
and examining them from different viewpoints.
• Seminar or Team Discussion: In seminar method the trainees may be
asked to write papers on specific topics. The papers are read in the seminar
and then a critical discussion is held where all the trainees participate.
• Programmed Instructions: Programmed instruction is a Computer-based
training that comprises of graphics, multimedia, text that is connected to one
another and is stored in memory. It provides the participant with content,
information, asks questions, and based on the answer goes to the next level
of information i.e. if the trainee gives the correct answer; one branch moves
the trainee forward to the new information.
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19. Apprenticeship Training:
• In many industries such as metal, printing and building construction, etc., this
method of training is widely in use.
• The apprenticeship training may go on for four to five years.
• The worker is usually absorbed by the concerned industry after training period is
over.
• They get practical knowledge while working on the job and theoretical knowledge
in the class room lecture.
• Advantages:
• The trainees get valuable skill which carries good demand in the market
• From employer’s point of view, it is cheap source of labour and in addition a
skilled work force is maintained.
• It reduces labour cost and production cost as rate of labour turnover is very low.
• Limitations:
• The training period is very long and the trainee requires regular supervision which
may not be possible in a large scale concern.
• Rigid standards make this method unsatisfactory.
• If a worker fails to learn after long period of training he may not be absorbed. This
may create labour problem for the firm.
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20. Vestibule Training (Training Centre Training):
• Vestibule means a passage or room between the outer door and the interior of a building, in
order to reach the inner of a house, one must pass from vestibule.
• Under vestibule training, workers are trained on special machines in a separate location i.e.,
classrooms
• Training is given in artificial conditions which are just like the real conditions. The theoretical
training is given in the classroom.
• The supervisor is relieved of training the new employees
• Advantages:
• (a) The trainer is a specialist and possesses specialisation in training,
• (b) Since the training is given off the job, trainees can concentrate on learning.
• (c) The instructor can give individual attention as he has no other work assigned to him.
• (d) The employee learns the job in a short time.
• Disadvantages:
• (a) Training is given under artificial conditions; hence the worker may not be in position to
adjust on the machines when he is put on the actual job.
• (b) It is expensive method as duplicate equipment is required. Small concerns cannot afford
this type of training method.
• (c) If demand for workers is uneven, vestibule school may remain unused for a considerable
time.
• (d) Splitting of responsibilities may lead to organisational problems.
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21. Internship Training:
• In this method of training students get practical training while they study. A
proper liaison is established between the technical institutions and business
houses where students are sent during their vacations. Thus, there is a
balance between theory and practice and students get practical Knowledge
while studying.
• The chief drawbacks of this method are:
• (a) It can be used for training only of skilled and technical workers.
• (b) The time taken is usually long.
• An example may be given here from M.B.A. (Master of Business
Administration) courses begin and run by various institutes of India. A close
liaison is kept between the institute and industry. The students doing M.B.A.
are sent to the different industries during vacations. Thus they learn practical
work also while doing their professional course.
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22. Induction Training:
• Training provided to new employees by the employer in order to
assist in adjustment to their new job tasks and to help them become
familiar with their new work environment and the people working
around them.
• This type of training will also outline the basic overview of the
business and its services as well as the new employee's role in the
environment.
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23. Do Organizations Need Training
• The answer is “YES”
• However, we must know the
purpose and functions of training
before we can use it.
12/5/2015 23
25. Training Needs
The reasons for not
making the 1,000
cars:
• Not enough
resources
• Poor machines
• Poor staff skills
As training experts we
must analyze the
situation to determine
if:
• Expected result too high
• Target achievable
• Is training the only way to
make it happen
• Are there other factors.
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26. Exercise 1
• Imagine you are the managing director of a full service
restaurant. One day you receive a complaint letter from a
guest reporting s/he was not satisfied with the follow up
regarding their criticism of being overcharged
in one of your restaurants.
• Why was the complaint made?
• Is there a training need?
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27. The ASK Concept
• If we follow the GAP concept, training is simply
a means to use activities to fill the gaps of
performance between the actual results and
the expected results.
• This GAP can be separated into 3 main
themes
1.Attitude
2.Skills
3.Knowledge
12/5/2015 27
28. Exercise 2
Rank ASK by difficulty to develop in people
• Attitude
• Skills
• Knowledge
•Easy
•Moderately difficult
•Most difficult
12/5/2015 28
29. Principles of Learning
• Participation: involve trainees, learn by doing- Reaction, Motivation,
engagement, open communication
• Repetition: repeat ideas & concepts to help people learn- People
forget 90% of what they have learned within 30 days if your message
is not repeatedly reinforced.
• Relevance: learn better when material is meaningful and related
• Transference: to real world using simulations- learning it and applying
it. from prior knowledge to learning, from learning to new learning, and
from learning to application
• Feedback: ask for it and adjust training methods to audience. Positive
feedback & feedforward Negative feedback & feedforward
• Practice: practice makes a man perfect. Skills that are practiced often
are better learned and less easily forgotten.
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30. Principles of Adult Learning
• Adults must want to learn: Adult will learn only if he is convinced.
They will not learn unless they want to learn. Provide evidence!
• Adult learn only what they feel they need to learn: sticking to the
point
• Adults learn by doing: apply new skills learned and actively
participate in learning process
• Adults learn by solving practical problems: hit them with real
world problems and challenges.
• Adult learn through application of past knowledge: logical
connect of past experiences to new ways of doing things.
• Adults learn best in an informal environment: Using humour,
informal techniques to break educational stigma of the traditional
classroom.
• Adults learn best through a variety of training methods: Visual,
Auditory and kinaesthetic
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31. Model of the Training Process*
Assessment Stage Training Stage Evaluation Stage
Organizational
Needs Assessment
Task Need Assessment
Development of
Training Objectives
Design & Select
Procedures
Measure Training
Results
Development of
Criteria for Training
Evaluation
Train Compare Results to
Criteria
Feedback
*Goldstein, I. (2002) Training in Organizations 4th Ed.
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32. Nine Steps in the Training Process/
components
1. Assessing training needs
2. Preparing training plan
3. Specifying training objectives
4. Designing the training program(s)
5. Selecting the instructional methods
6. Completing the training plan
7. Implementing the training program
8. Evaluating the training
9. Planning future training
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33. 1) Assessing Training Needs
Conduct a training needs analysis by either one, or both, of the
following
• External approach (company, guests, society)
• Internal approach – using a staff opinion survey.
12/5/2015 33
34. Exercise 3
• Imagine you are the manager of a factory with 500 workers making
ice cream for export to Europe.
• What information and evidence do you need before you can say the
employees need training?
• Try to list 5 ideas.
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35. Response to exercise 3
• Accidents report
• Sick leave report
• Employee compensation
statistics
• Product quality control report
• Wastage report
• Efficiency report
• Machinery out-of-order report
• Staff discipline report
• Staff enquiries & complaints
• Guests complaints
• Refusal of orders made
• Quality of product report
• Market needs & trends
• Demographic data &
background of employees
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36. 2) Preparing Training Plan
Consider whether to design a long (5-10 years), medium (3-5 years) or
short (1 year) term plan.
• Ask your self “What are we going to achieve in the time period?”
• Use a holistic approach by using a calendar for inputting your training
activities.
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37. Training Calendar Example
1 2 3 4 5 6 7...
Attitude
Train the trainer
Job competency
Sales techniques
Telephone manner
…
Training Area Month in the year
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38. Individual Plans
• For individual personalized training, we must assess the trainees’
weakness and strengths first before setting up appropriate programs.
• Training areas maybe tailor-made.
• Trainee should receive an individual timetable for self progress.
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39. 3) Specifying Training Objectives
Training Objectives must be specific & measurable. Why? Very
difficult to measure effectiveness after course is finished.
• What should trainees be able to accomplish after participating in
the training program?
• What is the desired level of such accomplishment, according to
industry or organizational standards?
• Do you want to develop attitudes, skills, knowledge or some
combination of these three?
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40. 4) Designing the Training Program(s)
1. Program duration
2. Program structure
3. Instruction methods
4. Trainers qualification
5. Nature of trainees
6. Support resources –
materials, OHP, classroom
7. Training location &
environment
8. Criteria & methods for
assessing participant
learning and achievement
9. Criteria & methods for
evaluating the program
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41. 5) Selecting Instructional Methods
Note: This is the most important step
On-the job-training (OJT)
• learn while you’re working
Off -the job-training
• In house, training or classroom
• External, consultancies or attending external classes
• Independent bodies, such as government talks
• Distance learning, from books or notes
• Computer-assisted learning
• Interactive-video training
• Video conferencing, same as classroom except teachers and students
are in different locations.
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42. Exercise 4
• Imagine you are the training manger of a hotel that will open next year.
Your GM asks you to develop a training program that aims to boost the
team spirit of the newly formed Executive Committee Members.
• Your GM suggests you organize a two-day course in a resort location
from 9 to 5 for both days.
• Your task is to suggest 3 training methods that suit the training theme
described above.
Hint: this is attitude, not skills nor knowledge training
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43. Response to exercise 4
Remember your training theme
was to change the individuals
attitudes
Employ exercises that trainees
can:
• Participate in
• React to
• Provide feedback in
• Receive inspiration to move on
Suitable training methods you
might have listed:
• Role-play
• Games
• Simulation exercises
• Discussion/debate formats
• Experiential exercises
• Self evaluation (e.g. video tape
trainees performance & let them
evaluate their own behaviors).
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44. 6) Completing the Training Plan
• Target group – assess your audience
• Topic – task, skill or attitude ingredient
• Method – direct (one way communication) or indirect (discussion,
games, experimental exercises…). Important as evaluation of
trainees usually lies on the perception on what they did in the training
session
• Time – length, period, breaks important to consider
• Location – away from the office?
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45. 7) Implementing the Training
Program
Besides trainers qualifications and experience:
• Participant selection
• Group comfort - physical & psychological
• Trainer enthusiasm & skills
• Effective communication
• Feedback mechanism
• The need to learn new training skills
• Preparation by trainers
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46. 8) Evaluating the Training
Three Levels of Evaluation
1. Immediate Feedback
Survey or interview directly after training
2. Post-Training Test
Trainee applying learned tasks in workplace?
3. Post-Training Appraisals
Conducted by immediate supervisors of trainees
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47. 9) Planning Future Training
Last step in the training process
• After taking all evaluated comments, trainers should modify the
programs to keep good things and make suggested improvements
• Remember, even with the same topic for different trainees, trainers
should address many parts of the training process again and
consider new approaches.
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48. A Training Lesson Plan
• Topic
• Summary of Key Points
• Training Objectives
• Duration of Each Activity in Each Session
• Training Contents
• Training Methods / Activities
• Break(s)
• Exercise to Warm Up
• Questions to test Understanding
• Conclusion
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49. e.g. New Employee Orientation
Time Topic Method Activity
9:00-9:30 AM Welcome Speech
by GM
Speech Talk & hand shake
9:30-10:00 AM Intro to Company
Background
Slide
Presentation
Slide Show &
Video Tape
3:00-4:00 PM Fire Safety Talk Security
Manager
Fire Drill &
Equipment
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50. Training as a CompetitiveAdvantage
• Training becomes a competitive advantage when:
• It is linked to business strategy and organization goals.
• It focuses on the organization’s future.
• Employees are trained in the knowledge, skills and abilities
required to achieve that future.
• It moves from basic skills to learning, creating and sharing
knowledge.
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51. Assignment no:1
• Developing an Integrated Approach of Learning in
Training Programme.
• Sub Contents:
• Introduction
• Integrated approach of learning in organisations
• Role of training in organisations
• Integration of training and learning in organisations.
• Conclusion
12/5/2015 51
Notas del editor
THRD-160-2
Well-trained employees can be a competitive advantage for an organization when employee training focuses on the skills and knowledge needed by employees to achieve the organization’s strategic plan.