Individual change: Concept, Need, Importance

Individual change management is an understanding of how one person makes a change successfully. Whether at home, in the community or at work, individuals move through the change process in a predictable and expected path. Individual change management provides a framework for enabling one person to make a transition.

The role of the individual in the overall change process is one such factor that is gaining increasing consideration. As after all, while a new tool can be implemented on schedule and on budget it does not automatically begin generating value for an organisation until it becomes adopted and individuals begin to use it with the required level of proficiency.

With the growing recognition for enterprise change management the need to understand the change management capabilities of the organisation as whole are evident but without a solid understanding of how individuals perceive and succeed in changing there are a number of associated risks.

One of the biggest risks is the idea that the implementation process of enterprise change management is ‘recipe-driven’: a list of actions or requirements that can be simply checked off. As it is important that each and every individual achieves a successful change in behaviour and/or attitudes, focus must be given to the progress of every employee in their transition and this requires continuous measurement. 

Increased communication, although one particular indicator of enterprise change management capabilities, does not ensure an organisation can expect to send X-X-number of emails about a change and not face any resistance; these emails must also contain considerations of the individual and indeed emails may not be an individual’s preferred method of receiving messages. Increasing communications activities in an unplanned, unstructured and intangible way is evidence of an organisation ‘doing’ change management without including a focus of what they were trying to achieve or why.

The next biggest consequence of not giving consideration to individual change management is the increasing difficulty in determining when success has been achieved. Time scales and budget are success factors of project implementation; but determining how successful the people side of the change has been, requires consideration of what is expected from each individual in order to generate the true value of a project; ensuring real acceptance, adoption of new ways of working with measurable proficiency.

Desire to Participate in and Support the Change

  • What are the personal motivators and organizational drivers that would cause me to support the change?

Knowledge on How to Change

  • What knowledge, skills and behaviors are required during and after the change is implemented?

Ability to Implement Required Skills and Behaviors

  • How do I demonstrate the ability to do my job the new way?
  • What barriers may inhibit me making the change?

Reinforcement to Sustain the Change

  • What will make the change stick?
  • What are the rewards, recognition, incentives and consequences?

ADKAR is an individual model, so it describes the change process from the perspective of one impacted employee whose job is being changed as a result of a project or initiative. Whether it is a new process, a new technology, a new job role or a new behavior, a person makes the change successfully when they have awareness, desire, knowledge, ability and reinforcement. If the change impacts 1,000 people, then the change will only happen when all 1,000 people have awareness, desire, knowledge, ability and reinforcement. An individual change management model is crucial for effective change management because of the reality that change must happen one individual at a time. Each impacted employee must move from their own current state to their own future state.

ADKAR is used in a number of ways:

  • Making sense of change
  • Guiding change management plans
  • Measuring progress
  • Diagnosing gaps
  • Developing corrective actions
  • Enabling managers and supervisors

Importance

Ensures a Match Between Requirements and Results

Through change management, you are aware of how to effectively equip and support people who will drive the change and bring it to life. You also have a process to have the right people in place to ensure success.

Increases Probability of Project Success

Research is clear that the better an organization is on change management the more likely project objectives are met. Harvard Business school research shows that initiatives with excellent change management are six times more likely to meet objectives than those with poor change management.

Improves Revenues

Solves problems reduces operation cost, helps seize emerging opportunities, or aligning work with strategy.

Helps in Remaining Profitable and Relevant

By remaining competitive through innovation companies can drive sales for their products. We no longer leave in a world changes occurs after 3 years. Businesses are facing complex and fast changes than ever before. An organization must, therefore, apply change management to enable it to build competencies that grow the organization’s ability to change as soon as they need arises. Only through changes can you remain relevant today. For example, social media has really changed how businesses operate so you have to change and incorporate it into your day to day operations.

Integration and Future of Talent Management

  • Typically, labor accounts for about 65 % of every business in any industry. The percentage is more for labor intensive businesses for example those in manufacturing.
  • The performance difference between talented and lesser talented employees is huge.
  • Employees and how they are managed is the most important source of most organizational competencies and strengths.

Talent management is not only important for hiring people as per the need, it is also important for determining when to hire. In the traditional model of hiring supply meant developing people internally for future. There was an upfront investment in candidates recovered through an enhanced performance over time. This was a good perspective; there were equal chances of making and losing money by investing in your people.

Hiring from outside or temporary employment on the other hand was seen as something that cannot fetch your substantial returns and or act as potential source of knowledge and competitive advantage.

Benefits of Integrated Talent Management

Companies especially growing ones are constantly changing. Change management strategy dovetails nicely with integrated talent management to ensure that talent can respond to change and adapt to it.

Technology in Integrated Talent Management

Technology that enables easy sharing of data across departments and processes is yet another essential component of integrated talent management. In some cases it might be possible to sustain communication without a technology solution, but a technology solution is necessary for scalability as companies grow larger and larger.

Consistency of Terms and Language

Communication is only effective if all parties understand what is being communicated. One essential part of integrated talent management is using a common language or consistent terms to talk about the talent management process. This helps all parties evaluate the process and share data that can lead to improvements.

Benefits of Talent Management Review

Organization Appraiser Appraisee
  • Recognize and manage talent performance.
  • Planning and decision making.
  • Improved staff retention.
  • Framework for sharing feedback.
  • Promote career planning and benefits.
  • Feedback on management style and leadership.
  • Reflection on areas of weakness and strength.
  • Opportunity to raise issues.
  • Focus on developing individual performance.
  • Better understanding of goals and requirement.
  • Identify action plan for future development.

Talent management teams observe the following competencies while undertaking managerial talent and reward score when the requirements are met.

  • Communication: The review team analyzes communication skills among the performers. It also reviews the channels of communication in the organization.
  • Leadership: The team identifies leadership qualities and takes a note of effective and emerging leaders in the organization.
  • Resource Management: The team evaluates the resource management styles of the employees.
  • Teamwork: The team underscores team performance of individual employees.

Global Talent Management

The primary purpose of talent management is to create a motivated workforce who will stay with your company in the long run. The exact way to achieve this will differ from company to company.

A multi-year, collaborative research study set out to examine the steps global companies can take to ensure that they recruit, develop and deploy the right people.  Researchers from institutions including INSEAD, Cornell, and Cambridge University came together and analysed companies that were selected based on superior business performance and reputation.

They found that in addition to adhering to a common set of talent management principles, leading companies follow many of the same talent-related practices. During their study, they asked interviewees why they thought their company’s individual practices were effective and valuable. As a result of their responses, the authors formulated six core principles.

Adopting a set of principles rather than best practices is more effective at challenging current thinking. Moreover, best practices are only ‘best’ in the context for which they were designed; principles, on the other hand, have broad application.

Principles

  • Alignment with strategy: managers should ask themselves, given the company’s strategy, what kind of talent do we need? Strategic flexibility is important, and organizations must be able to adapt to changing business conditions and revamp their talent approach when necessary. Examples of companies that have done so include; GE and Oracle.
  • Internal consistency: implementing practices in isolation may not work and can actually be counter productive. The principle of internal consistency refers to the way the company’s talent management practices fit with each other. Consistency is crucial. The emphasis placed on consistency at companies such as BAE Systems and IBM can help to illustrate why that is paramount.
  • Cultural embeddedness: many successful companies make deliberate efforts to integrate their stated core values and business principles into talent management processes such as hiring methods, leadership development activities, performance management systems, and compensation and benefits programs. IKEA, the Sweden-based furniture retailer, for example, where applicants are selected using tools that focus on values and cultural fit. Another approach to promoting the organization’s core values and behavioural standards can through secondary socialization and training.
  • Management involvement: successful companies know that the talent management process needs to have broad ownership, not just by HR, but by managers at all levels, including the CEO. Senior leaders need to be actively involved in the talent management process and make recruitment, succession planning, leadership development and retention of key employees their top priorities. One of the most potent tools companies can use to develop leaders is to involve line managers. It means getting them to play a key role in the recruitment of talent and then making them accountable for developing the skills and knowledge of their employees. The research cites the example of Unilever to demonstrate how this can be done.
  • Balance of global and local needs: for organizations operating in multiple countries, cultures and institutional environments, managers need to figure out how to respond to local demands while maintaining a coherent HR strategy and management approach. The research found different methods of doing this, giving examples of Matsushita, Rolls Royce, Shell and others. However, among all the companies they studied, there was no single strategy.
  • Employer branding through differentiation: companies should find ways to differentiate themselves from their competitors, in order to attract employees with the right skills and attitudes. The companies studied differed considerably in how they resolve the tension between maintaining a consistent brand identity across business units and regions and responding to local demands. One-way companies are trying to get an edge on competitors in attracting talent is by stressing their corporate social responsibility activities.

The differentiated approach. Although the practice of sorting employees based on their performance and potential has generated criticism, many companies in our study placed heavy emphasis on high-potential employees. Companies favoring this approach focused most of the rewards, incentives and attention on their top talent (“A players”); gave less recog­nition, financial rewards and development attention to the bulk of the other employ­ees (“B players”); and worked aggressively to weed out employees who didn’t meet performance expectations and were deemed to have little potential (“C players”). This approach has been popularized by General Electric’s “vitality curve,” which differentiates between the top 20%, the middle 70% and the bottom 10%. The actual definition of “high potential” tends to vary from company to company, but many factor in the employee’s cultural fit and values. Novartis, the Swiss pharmaceutical company, for example, looks at whether someone displays the key values and behaviors the company wants in its future leaders.

The percentage of employees included in the high-potential group also differs across companies. For example, Unilever, the Anglo-Dutch consumer products company, puts 15% of employees from each management level in its high-potential category each year, expecting that they will move to the next management level within five years. Other companies are more selective. Infosys, a global technology services company headquartered in Bangalore, India, limits the high-potential pool to less than 3% of the total work force in an effort to manage expectations and limit potential frustration, productivity loss and harmful attrition.

The inclusive approach. Some companies prefer a more inclusive approach and attempt to address the needs of employees at all levels of the organi­zation. For example, when asked how Shell defined talent, Shell’s new head of talent management replied, Under an inclusive approach, talent management tactics used for different groups are based on an assessment of how best to leverage the value that each group of employees can bring to the company.

The two philosophies of talent management are not mutually exclusive; many of the companies we studied use a combination of both. Depending on the specific talent pool (such as senior executive, technical expert and early career high-potential), there will usually be different career paths and development strategies. A hybrid approach allows for differentiation, and it skirts the controversial issue of whether some employee groups are intrinsically more valuable than others.

Talent Management initiatives

  • Recognition: Recognising employees’ contribution and their work on individual grounds, boost up self-confidence in them.
  • Remuneration and Reward: Increasing pay and remuneration of the employees as a reward for their better performance.
  • Providing Opportunities: Giving the charge of challenging projects to the employees along with the authority and responsibility of the same, makes them more confident.
  • Role Design: The role of employees in the organisation must be designed to keep them occupied and committed, it must be flexible enough to inculcate and adapt to the employee’s talent and knowledge.
  • Job Rotation: Employees lack enthusiasm if they perform the same kind of work daily. Thus, job rotation or temporary shifting of employees from one job to another within the organisation is essential to keep them engaged and motivated.
  • Training and Development: On the job training, e-learning programmes, work-related tutorials, educational courses, internship, etc. are essential to enhance the competencies, skills and knowledge of the employees.
  • Succession Planning: Internal promotions helps identify and develop an individual who can be the successor to senior positions in the organisation.
  • Flexibility: Providing a flexible work environment to the employees makes them more adaptable to the organisation and brings out their creativity.
  • Relationship Management: Maintaining a positive workplace where employees are free to express their ideas, take part in the decision-making process, encourage employees to achieve goals and are rewarded for better performance leads to employee retention.
  • Self-motivation: Nothing can be effective if the employee is not self-determined and motivated to work.

Talent Management Introduction, Principles, Process

Talent Management is a strategic approach to attracting, developing, retaining, and utilizing the best talent within an organization to achieve its objectives. It involves identifying high-potential individuals, nurturing their skills, and providing opportunities for growth to maximize their contributions.

Key components of talent management include recruitment, onboarding, performance management, learning and development, succession planning, and employee engagement. By aligning talent strategies with organizational goals, businesses can build a competitive edge, foster innovation, and enhance overall productivity.

Effective talent management ensures that employees feel valued and supported, which improves retention rates and cultivates a motivated workforce. It is an ongoing process that adapts to changing organizational needs and market dynamics, making it a critical factor for sustainable growth and long-term success in today’s competitive business environment.

Principles of Talent Management:

  • Alignment with Organizational Goals

Talent Management strategies must align with the organization’s vision, mission, and long-term objectives. This alignment ensures that talent acquisition, development, and retention efforts directly contribute to achieving business outcomes and fostering a culture that supports organizational values.

  • Focus on Talent as a Critical Asset

Employees are the most valuable resource of any organization. Talent Management emphasizes treating employees as critical assets, investing in their skills, and creating opportunities for growth. Recognizing and nurturing talent ensures a workforce capable of meeting current and future challenges.

  • Proactive Recruitment and Retention

Effective Talent Management involves proactive efforts to attract top talent and retain high-performing employees. It includes creating an attractive employer brand, offering competitive compensation, and building a supportive work environment. Proactive retention strategies, such as career development opportunities and regular engagement initiatives, help reduce turnover.

  • Employee Development and Growth

A key principle of Talent Management is fostering continuous learning and professional development. Organizations should provide employees with training programs, mentorship opportunities, and resources to enhance their skills and advance their careers. This not only benefits employees but also strengthens the organization’s overall capabilities.

  • Data-Driven Decision Making

Talent Management relies on data analytics to identify workforce trends, measure performance, and predict future needs. By leveraging tools like performance reviews, employee feedback, and workforce analytics, organizations can make informed decisions about hiring, promotions, and training investments.

  • Diversity and Inclusion

Diversity and inclusion are integral to Talent Management. Organizations should strive to create an inclusive workplace that values diverse perspectives and ensures equal opportunities for all employees. This fosters innovation and broadens the organization’s problem-solving capabilities.

  • Succession Planning

Talent Management emphasizes preparing for future leadership needs through succession planning. By identifying and grooming high-potential employees for critical roles, organizations ensure continuity and reduce the risks associated with leadership transitions.

  • Employee Engagement and Well-Being

Engaged employees are more productive and committed to their organizations. Talent Management involves creating a positive work environment that prioritizes employee well-being, fosters strong relationships, and recognizes contributions.

  • Flexibility and Adaptability

Talent Management must be dynamic and responsive to changing market trends, workforce demographics, and organizational priorities. A flexible approach allows organizations to adapt their strategies to evolving needs and remain competitive.

Process of Talent Management:

Talent Management process is a strategic approach to attracting, developing, and retaining the best talent to meet organizational goals. It encompasses a series of interconnected steps, each contributing to building a skilled and engaged workforce.

1. Workforce Planning

The process begins with understanding the organization’s current and future talent needs. Workforce planning involves analyzing the workforce’s composition, identifying skill gaps, and forecasting future requirements based on business objectives and market trends.

2. Talent Acquisition

This stage involves attracting and recruiting the right talent. It includes crafting job descriptions, sourcing candidates through various channels, conducting interviews, and selecting individuals whose skills and values align with the organization’s needs. Building a strong employer brand is crucial to attracting top talent.

3. Onboarding

Once candidates are hired, a structured onboarding process ensures they are integrated smoothly into the organization. This includes introducing them to company culture, setting clear expectations, and providing the necessary tools and training to perform effectively. A strong onboarding process enhances employee retention and engagement.

4. Performance Management

Performance management focuses on monitoring and evaluating employee performance to ensure alignment with organizational goals. It includes setting clear objectives, providing regular feedback, and conducting periodic performance reviews. Effective performance management helps identify areas for improvement and recognize high performers.

5. Learning and Development

Developing employees’ skills is a core component of Talent Management. Organizations provide training programs, workshops, and mentorship opportunities to enhance technical, leadership, and interpersonal skills. Continuous learning fosters employee growth and prepares them for future challenges.

6. Career Development and Succession Planning

Employees seek career growth, and organizations must support their aspirations. This stage involves creating personalized development plans and identifying high-potential employees for leadership roles. Succession planning ensures continuity and minimizes disruptions during leadership transitions.

7. Employee Engagement and Retention

Employee engagement strategies focus on creating a positive work environment, fostering open communication, and recognizing contributions. Retention efforts include offering competitive benefits, promoting work-life balance, and ensuring job satisfaction.

8. Exit Management

When employees leave the organization, exit management ensures a smooth transition. Conducting exit interviews provides insights into areas for improvement, and maintaining relationships with former employees helps build a strong alumni network.

Management Development Programs, Importance, Components, Evaluation

Management Development Programs (MDPs) are structured initiatives designed to enhance the managerial capabilities and leadership skills of current and future managers. These programs focus on improving decision-making, problem-solving, communication, and strategic thinking abilities. MDPs aim to groom managers for higher responsibilities, helping organizations build a strong leadership pipeline. They include a range of activities such as workshops, seminars, executive education courses, mentoring, and on-the-job training. By fostering continuous learning and professional growth, MDPs ensure that managers are well-equipped to handle complex business challenges, drive organizational success, and adapt to changing market dynamics.

Importance of Management Development Programs:

Management Development Programs (MDPs) play a critical role in enhancing managerial competencies, ensuring sustainable growth for organizations, and fostering leadership.

  • Enhances Leadership Skills

MDPs are designed to strengthen the leadership abilities of managers. They provide exposure to modern leadership techniques, helping managers inspire and guide their teams effectively. Strong leadership contributes to better decision-making, strategic vision, and improved organizational performance.

  • Increases Managerial Efficiency

Through various learning modules, MDPs equip managers with the necessary tools and skills to handle day-to-day operations efficiently. These programs focus on critical areas such as time management, problem-solving, and conflict resolution, enabling managers to enhance productivity.

  • Prepares Managers for Higher Roles

MDPs help organizations groom potential leaders for higher responsibilities. By offering training in areas like strategic planning, financial management, and cross-functional coordination, they prepare managers to take on senior-level roles, ensuring a smooth leadership transition.

  • Boosts Employee Morale and Engagement

Well-trained managers foster a positive work environment by engaging employees, addressing concerns effectively, and encouraging collaboration. MDPs help managers develop the emotional intelligence required to build trust and motivate their teams, leading to higher morale and job satisfaction.

  • Promotes Organizational Adaptability

In a rapidly changing business environment, adaptability is crucial. MDPs equip managers with the ability to anticipate changes, develop innovative solutions, and implement them effectively. This helps organizations remain competitive and thrive in dynamic markets.

  • Aligns Individual Goals with Organizational Objectives

MDPs align the personal development goals of managers with the broader organizational objectives. By improving individual competencies, they contribute to achieving strategic business goals, resulting in better overall performance and profitability.

  • Encourages Knowledge Sharing

Participating in MDPs allows managers to share knowledge, best practices, and innovative ideas. This cross-functional collaboration enhances organizational learning, fosters creativity, and promotes a culture of continuous improvement.

  • Enhances Employee Retention

Organizations that invest in the professional development of their managers create a culture of growth and learning. This leads to higher job satisfaction, reducing turnover rates among high-potential employees. Effective managers who have undergone MDPs are more likely to foster a supportive work environment, further contributing to employee retention.

Components of Management Development Programs:

1. Needs Assessment

The first and foremost component of any MDP is identifying the development needs of managers. This involves assessing the current skills, competencies, and knowledge gaps of the participants. Techniques such as performance appraisals, feedback from superiors and subordinates, and self-assessment surveys are used to determine areas for improvement. A well-conducted needs assessment ensures that the program addresses relevant managerial challenges.

2. Clear Objectives

Every MDP must have well-defined objectives that outline what the program intends to achieve. These objectives could range from enhancing leadership skills and strategic thinking to improving communication and team management. Clearly stated goals help in structuring the program content and evaluating its success.

3. Curriculum Design

The curriculum is the core component of any MDP. It includes carefully selected topics relevant to the participants’ roles and responsibilities. Common topics include leadership development, financial management, conflict resolution, organizational behavior, decision-making, and strategic planning. The curriculum should be flexible to accommodate emerging trends and industry needs.

4. Training Methods

Effective delivery of MDPs relies on a mix of training methods to enhance learning outcomes. Common methods are:

  • Lectures and Seminars: For theoretical knowledge.
  • Case Studies: To analyze real-world business scenarios.
  • Workshops and Simulations: For hands-on experience.
  • Role-Playing and Group Discussions: To develop interpersonal and problem-solving skills.

This blended approach ensures a balanced learning experience for participants.

5. Mentoring and Coaching

Mentoring and coaching are critical components of MDPs. They provide personalized guidance, helping managers apply theoretical knowledge to real-life situations. Mentors, typically senior executives, share their experiences and offer practical insights to help participants grow professionally.

6. Performance Evaluation

Evaluating participants’ performance during and after the program is essential to measure learning outcomes. This can be done through tests, assignments, or practical projects. Performance evaluation helps determine whether participants have acquired the intended skills and knowledge.

7. Follow-Up and Reinforcement

A well-designed MDP includes follow-up activities to reinforce learning. These may involve periodic reviews, refresher courses, or on-the-job training. Follow-up ensures that participants continue to apply what they have learned and improve continuously.

Evaluation of Management Development Programs:

The evaluation of Management Development Programs (MDPs) is essential to determine their effectiveness, justify the investment, and ensure continuous improvement. Since MDPs aim to enhance the managerial competencies of participants and contribute to organizational success, a systematic evaluation helps assess whether these objectives are being met.

1. Setting Clear Objectives

Before conducting an MDP, organizations should establish clear, measurable objectives. These could include skill enhancement, leadership development, increased productivity, or improved decision-making abilities. The evaluation process involves checking whether these goals have been achieved by comparing pre- and post-program performance.

2. Participant Feedback

One of the primary ways to evaluate MDPs is through participant feedback. Surveys, questionnaires, or interviews can capture participants’ perceptions about the program’s content, trainers, and overall learning experience. Positive feedback indicates that the program was well-received, while constructive criticism helps identify areas for improvement.

3. Knowledge and Skill Assessment

Assessing the knowledge and skills of participants before and after the program is a direct way to measure its impact. This can be done using:

  • Pre- and post-training tests: Comparing results shows knowledge gained.
  • Case study analysis or role-play exercises: These demonstrate participants’ ability to apply newly acquired skills to real-life scenarios.

4. Behavioral Change in the Workplace

The real test of an MDP’s effectiveness lies in its impact on the participants’ behavior in their work environment. Managers should be observed over time to see if they apply the learned skills in areas such as decision-making, communication, and team management. Tools like 360-degree feedback from peers, subordinates, and supervisors can help measure behavioral changes.

5. Impact on Organizational Performance

MDPs should ideally lead to improvements in key organizational metrics, such as productivity, profitability, employee engagement, and retention. By comparing these metrics before and after the program, organizations can evaluate the tangible benefits of the development initiative.

6. Return on Investment (ROI)

Calculating the ROI of MDPs involves comparing the cost of conducting the program with the financial gains it brings. This can include increased productivity, reduced turnover, and better decision-making that contributes to overall profitability. A positive ROI indicates that the program delivered value for money.

7. Continuous Improvement

Evaluation is not a one-time process. Regular assessments of MDPs help in refining the content, methodology, and delivery. This ensures that future programs remain relevant, effective, and aligned with the organization’s changing needs.

Overview of Career Development Concept, Scope, Importance, Need, Features

Career Development is essential for the implementation of career planning. It refers to a set of programmes designed to match an individual’s needs, abilities and goals with current or future opportunities in the organisation. It is the process through which the action plans are implemented. Developmental activities include all of the off-the-job and on-the-job training techniques.

Career development is an integral aspect of career management with major emphasis being on the enhancement of employees’ career which commensurate with the requirements of the organisation.

In the case of an employee, career planning provides an answer to his question as to where he will be in the organisation after five years or ten years or what the prospects of advancing or growth are in the organisation. Career planning is not an event or an end in itself, but a process of development of human resources. In short, it is an essential aspect of effective management of people at work.

A career path is the sequential pattern of jobs that forms a career. Career goals are the future positions one strives to reach as part of a career. Career planning is the process by which one selects career goals and the path to these goals.

The basic, if implicit, assumption underlying the focus on human resource planning and development is, thus that the organization has an obligation to utilise its employees’ abilities to the fullest and to give every employee an opportunity to grow and to realise his or her full potential.

To some experts, this means that the organization has an obligation to improve the “quality of work life” of its employees notice again though, that quality of work life” refers not just to things like working conditions or pay but also to the extent to which each employee is able to utilise fully his or her abilities, engage in interesting jobs and obtain the training and guidance that allows the person to move up to jobs that fully utilise his or her potential.

One way this trend is manifesting itself is in the increased emphasis many managers are placing on Career Planning and Development, an emphasis, in other words, on giving employees the assistance and opportunities that will enable them to form realistic career goals and realise, them.

Enabling employee to pursue expanded, more realistic career goals should be, many experts believe, the major aim of an organization’s personal system. By doing so, for the employees, satisfaction, personal development and quality of work life are the clearest benefit.

For the organization, increased productivity levels, creativity and long-range effectiveness may occur, since the organization would be staffed by a cadre of highly committed employees who are carefully trained and developed for their jobs.

Scope

  • Enhancing the Career Satisfaction:

Organizations especially design career development systems for enhancing the career satisfaction of their employees. Since they have to retain their valuable assets and prepare them for top notch positions in future, they need to understand their career requirements and expectations from their organization.

  • Creating a Pool of Talented Employees:

Creating a pool of talented employees is the main objective of organizations. After all, they need to meet their staffing needs in present and future and a career development system helps them fulfil their requirements.

  • Feedback:

Giving feedback on every step is also required within an organization to measure the success rate of a specific policy implemented and initiatives taken by the organization. In addition to this, it also helps managers to give feedback for employees’ performance so that they can understand what is expected of them.

  • Fostering Better Communication in Organization:

The main objective of designing a career development system is to foster better communication within the organization as a whole. It promotes communication at all levels of organizations for example manager and employee and managers and top management. Proper communication is the lifeblood of any organization and helps in solving several big issues.

  • Setting Realistic Goals:

Setting realistic goals and expectations is another main objective of a career development system. It helps both employees and organization to understand what is feasible for them and how they can achieve their goals.

  • Better Use of Employee Skills:

A career development system helps organization in making better use of employee skills. Since managers know their skills and competencies they are put them at a job where they will be able to produce maximum output.

  • Assisting with Career Decisions:

A career development system provides employees as well as managers with helpful assistance with career decisions. They get an opportunity to assess their skills and competencies and know their goals and future aspirations. It helps them give a direction so that they can focus on achieving their long term career goals.

Importance

  • Providing financial inducements and facilities to employees for acquisition of new skills and capabilities
  • Obtaining relevant information about individual employees’ interests and preferences
  • Providing career path information to employees to enable them to make their career plans
  • Matching individuals’ career interests and aptitudes to job requirements
  • Developing a suitable T&D programme both within the organisation and outside to help employees improve their career.

Need

  • Improving Organizational Goodwill:

It is quite natural that if employees think their organizations care about their long-term well-being through career development, they are likely to respond in kind by projecting positive images about their organizations. Career development does help organization in impressing image and goodwill.

  • Enhancing Cultural Diversity:

Fast changing scenarios in globalization reflects a varied combination of workforce representing different types of races, nationalities, religious faiths, ages and values in the workplaces. Effective career development programmes provide access to all levels of employees.

  • Reduced Employee Frustration:

Along with educational level and knowledge, the aspirational level of occupations is also increasing. When these levels are not met due to economic stagnation frustration sets in. When organizations downsize to cut costs, employee career paths, career tracks and career ladders tend to collapse resulting in aggravation of frustration. Career counseling comes a long way in reducing frustration.

  • Attracting and Retaining Talents:

There is always a scarcity for talented people and there is competition to secure their services. Talented people always prefer to work in organizations which care for their future concern and exhibit greater loyalty and commitment to organizations where there is career advancement. As career development is an important aspect of work life as well as personal life, people prefer to join firms which offer challenges, responsibility and opportunities for advancement.

  • Making Available Needed Talent:

Career development is a natural extension of strategic and employee training. Identifying staff requirements over the intermediate and long-term is necessary when a firm sets long-term goals and objectives. Career development will help organizations in putting the right people in the right job.

Features

  • It defines life, career, abilities, and interests of the employees.
  • It is an ongoing process.
  • It strengthens work-related activities in the organization.
  • It helps individuals develop skills required to fulfil different career roles.
  • It can also give professional directions, as they relate to career goals.

Career Development, Career Development Cycle

Career Development or Career Development Planning refers to the process an individual may undergo to evolve their occupational status. It is the process of making decisions for long term learning, to align personal needs of physical or psychological fulfillment with career advancement opportunities. Career Development can also refer to the total encompassment of an individual’s work-related experiences, leading up to the occupational role they may hold within an organization. Career Development can occur on an individual basis or a corporate and organizational level.

One might engage in classroom training in-house or at universities, or opt for special job or task force assignments, or especially early in the career, job rotation. Lateral moves and promotions are more difficult to use for developmental purposes. Managers with vacancies have their own objectives to meet and may be reluctant to fill openings with candidates designated for career development, rather than with those who have the best skills to do the job.

It is essential that career development be fully integrated with internal staffing activities. Career development provides a supply of talents and abilities. Individuals must be committed to and accept responsibility for their career development.

  • Growth Opportunities:

Individuals can expand their abilities by enrolling for training programmes, acquiring an additional degree, seeking new work assignments. When an opportunity arises in the organisation, employees with the required skills would be placed in that position.

  • Resignations:

When an individual sees career opportunity elsewhere which are not available in the existing organisation, resignation may be the only alternative. When used sparingly, it results in promotion, salary increase and a new learning experience.

  • Job Performance:

Career progression largely depends on the job performance; the better the performance, the higher the chances of going up the corporate ladder.

  • Mentors:

Mentors can aid career development by sharing their knowledge and insights and wisdom to help junior managers.

Process

(1) Staffing and Orientation:

This phase is composed of providing career information to the job candidate (whether internal or external) and using selection techniques so as to match potential workers with the right job. The type of career information provided may include knowledge of jobs within the organization and possible career paths for the employee.

Selection techniques that are used to match employee and employment opportunity include assessment center exercises and job posting systems even for positions that are to be filled internally (a form of self-selection).

(2) Evaluation Phase:

This phase is characterized by two important aspects, namely performance review and succession planning. The purpose of performance review, from a career development perspective, is to provide feedback to employees on their skills and knowledge, both to increase job satisfaction and to help them prepare for their next job. Succession planning links information from and about individual employees to the human resource needs of the organization.

(3) Development Phase:

During the developing phase, more visible career development strategies are employed. Tools used during this phase include career discussions between employee and supervisor, career resource centers, self- assessment and career counseling, and career planning workshops.

Career Development Planning

On an individual basis, career planning encompasses a process in which the individual is self-aware of their personal needs and desires for fulfillment in their personal life, in conjunction with the career they hold. While every person’s experiences are unique, this contributes to the different careers that people will acquire over their lifespan.

  • Long Term Careers

Careers that are long term commitments throughout an individual’s life are referred to as ‘Steady-State Careers.’ The person will work towards their retirement with specialized skillsets learned throughout their entire life. For example, somebody would be required to complete a steady process of graduating from medical school and then working in the medical profession until they have retired. Steady-state careers may also be referred to as holding the same occupational role in an organization for an extended period and becoming specialized in the area of expertise. A retail manager who has worked in the sales industry for an extended period of their life would have the knowledge, skills, and attributes regarding managing non-managerial staff and coordinating job tasks to be fulfilled by subordinates.

A career that requires new initiatives of growth and responsibility upon accepting new roles can be referred to as ‘Linear Careers,’ as every unique opportunity entails a more significant impact of responsibility and decision making power on an organizational environment. A linear career path involves a vertical movement in the hierarchy of management when one is promoted. For example, a higher-level management position in a company would entail more responsibility regarding decision-making and allocation of resources to effectively and efficiently run a company. Mid-level managers and top-level managers/CEOs would be referred to as having linear careers, as their vertical movement in the organizational hierarchy would also entail more responsibilities for planning, controlling, leading, and organizing managerial tasks.

  • Short Term Careers

When individuals take on a short term or temporary work, these are ‘Transitory Careers’ and ‘Spiral Careers’. Transitory Careers occur when a person undergoes frequent job changes, in which each task is not similar to the preceding one. For example, a fast-food worker who leaves the food industry after a year to work as an entry-level bookkeeper or an administrative assistant in an office setting is a Transitory Career change. The worker’s skills and knowledge of their previous career will not be applicable to their new role.

A spiral career is any series of short term jobs that are non-identical to one another, but still contribute to skill-building of a specific attribute that individuals will accept over their lifetime. Many individuals can undergo slight career transitions or accept short-term contract work in the same work field, to build on different skill sets needed for them to succeed in an organizational environment. For example, an individual with a degree in Business hired to do ‘project management’ in one area of a department can be promoted or transferred to complete another task in the same department to work on ‘marketing’.

Career Development Cycle

  • Know Yourself

Interest, Values, Skills, Assets, Resources, Personality

  • Explore Possibilities

Research, try things out, Narrow choices, and explore new possibilities

  • Make Choices

Set Goals, develop a plan, Remove Barrier

  • Make it Happen

Convert plan into action, learn along the way, Achieve goals

Steps in Career Development cycle

  • Step 1: Needs:

This step involves in the conducting a needs assessment as a training programme.

  • Step 2: Vision:

The needs of the career system must be linked with the interventions. An ideal career development system known as the vision links the needs with the interventions.

  • Step 3: Action Plan:

An action plan should be formulated in order to achieve the vision. The support of the top management should be obtained in this process.

  • Step 4: Results:

Career development programme should be integrated with the organisation on-going employee training and management development programmes. The programme should be evaluated from time to time in order to revise the programme.

Career Life Cycle is a model that describes the stages of an individual’s career development. It is a useful tool for both individuals and organizations in understanding the different stages of a career and the corresponding developmental tasks that need to be accomplished at each stage. The career life cycle typically consists of four stages: exploration, establishment, maintenance, and decline.

  • Exploration:

This stage usually occurs during the early years of a career. During this stage, individuals are exploring different career options and trying to identify their interests, skills, and values. The primary developmental task during this stage is to gain self-awareness and explore different career options to find a good fit.

  • Establishment:

This stage occurs when individuals have found a career path that aligns with their interests, skills, and values. The primary developmental task during this stage is to establish oneself in a career and develop the necessary skills and competencies to succeed in that career.

  • Maintenance:

This stage occurs when individuals have established themselves in their careers and are focused on maintaining their success. The primary developmental task during this stage is to continue to develop one’s skills and competencies, expand one’s network, and take on new challenges to continue to grow and advance in one’s career.

  • Decline:

This stage occurs when individuals begin to transition out of their careers, either by choice or due to circumstances such as retirement. The primary developmental task during this stage is to plan for and manage the transition out of one’s career, including preparing for retirement or finding a new career path.

Succession Planning

Succession Planning is a process for identifying and developing new leaders who can replace old leaders when they leave, retire or die. Here the planning is usually a close process, so that those who have been selected are not likely to know that they are on a succession list or chat. Succession planning increases the availability of experienced and capable employees that are prepared to assume these roles as they become available. Succession planning is a strategy for passing on leadership roles often the ownership of a company to an employee or group of employees.

Succession planning is a process that ensures an organization has a plan in place to identify and develop internal talent to fill key leadership roles when the current leaders leave their positions. A succession planning program is a formal program that helps organizations identify and develop their future leaders.

A well-designed succession planning program involves several key steps. The first step is to identify the key leadership positions that need to be filled in the future. This involves analyzing the organization’s strategic objectives and identifying the critical roles that are necessary to achieve these objectives.

The next step is to assess the current talent within the organization to identify potential successors for these key positions. This involves evaluating the skills, experience, and potential of current employees to determine who is ready to take on leadership roles in the future.

Once potential successors have been identified, the organization can begin developing them through training, mentoring, and other development opportunities. This involves creating a development plan that outlines the specific skills and experiences that potential successors need to acquire to prepare them for future leadership roles.

In addition to developing potential successors, the organization should also establish a process for regularly reviewing and updating the succession plan. This involves monitoring the progress of potential successors, updating development plans as needed, and identifying new potential successors as the organization’s needs change.

A well-designed succession planning program has several benefits for organizations. It helps ensure continuity of leadership and reduces the risks associated with unexpected departures of key leaders. It also promotes employee engagement and retention by providing clear career paths and development opportunities.

Also known as “replacement planning,” it ensures that businesses continue to run smoothly after a company’s most important people move on to new opportunities, retire, or pass away. Succession planning can also provide a liquidity event enabling the transfer of ownership in a going concern to rising employees. Taken narrowly, “replacement planning” for key roles is the heart of succession planning.

  • In dictatorships, succession planning aims for continuity of leadership, preventing a chaotic power struggle by preventing a power vacuum.
  • In monarchies, succession is usually settled by the order of succession.
  • In business, succession planning entails developing internal people with the potential to fill key business leadership positions in the company.

Effective succession or talent-pool management concerns itself with building a series of feeder groups up and down the entire leadership pipeline or progression. In contrast, replacement planning is focused narrowly on identifying specific back-up candidates for given senior management positions. Thought should be given to the retention of key employees, and the consequences that the departure of key employees may have on the business.

Types of Succession Planning programs:

  • High-potential Program:

This program identifies employees who have the potential to fill key leadership positions in the future and provides them with targeted development opportunities to prepare them for these roles.

  • Talent Review Program:

This program involves assessing the current talent within the organization to identify potential successors for key leadership positions. The program focuses on evaluating the skills, experience, and potential of current employees to determine who is ready to take on leadership roles in the future.

  • Career Development Program:

This program helps employees identify and develop the skills and experiences they need to advance their careers within the organization. It provides employees with a clear career path and development opportunities that prepare them for future leadership roles.

  • Executive Coaching program:

This program provides one-on-one coaching and mentoring to potential successors to help them develop the skills and experience they need to take on leadership roles in the future.

  • Succession Planning Task force:

This program involves creating a task force that is responsible for overseeing the organization’s succession planning efforts. The task force is typically composed of senior leaders and HR professionals who work together to identify potential successors and develop them through training and development opportunities.

Process and Practices

Companies devise elaborate models to characterize their succession and development practices. Most reflect a cyclical series of activities that include these fundamentals:

  • Identify key roles for succession or replacement planning
  • Define the competencies and motivational profile required to undertake those roles
  • Assess people against these criteria – with a future orientation
  • Identify pools of talent that could potentially fill and perform highly in key roles
  • Develop employees to be ready for advancement into key roles; primarily through the right set of experiences.

Research indicates that clear objectives are critical to establishing effective succession planning. These objectives tend to be core to many or most companies that have well-established practices:

  • Identify those with the potential to assume greater responsibility in the organization
  • Provide critical development experiences to those that can move into key roles
  • Engage the leadership in supporting the development of high-potential leaders
  • Build a database that can be used to make better staffing decisions for key jobs

In other companies these additional objectives may be embedded in the succession process:

  • Improve employee commitment and retention
  • Meet the career development expectations of existing employees
  • Counter the increasing difficulty and costs of recruiting employees externally

Process of Succession Planning

  • Identifying Key Business Areas and Positions:

First and foremost, the key business areas are identified, i.e. the areas which are significant with respect to the operational activities and strategic objectives. After that, those positions are identified which if vacant can cause difficulty in achieving business objectives.

  • Ascertaining Competencies for Key areas and positions:

Next, you need to determine the required competencies for key business areas and position, in order to create the selection criteria, establish performance standards and fill the difference between what the viable successors know and what they need to know, through the training and development process.It determines the knowledge, skills, ability and experience required to achieve business goals.

  • Find out the interested and potential candidates and assess them as per the competencies:

After competency is analysed, the next step is to identify among various employees working in the organization, who are interested as well as they have the capability to fill key business areas and positions. The Human Resource Manager discusses future career plans and interests with the candidates and identifies the potential successors who are ready to replace the old ones and can be trained and developed for future contingencies.

  • Develop and Implement Succession Strategies:

Strategies for learning, training, development, knowledge transfer, experience sharing is developed and implemented for potential successors.

  • Evaluate Effectiveness:

The last step to the succession planning process is to evaluate the succession planning and management, to ensure that all the key business areas and positions are covered under the succession planning. Further, it also ensures that in case of any sudden vacancies in future, key positions can be filled as soon as possible and the successors perform effectively when they hold the position.

A larger business might groom mid-level employees to one day take over higher-level positions.

  • Recruitment

Succession planning starts with proper hiring practices with the goal of choosing candidates that are capable of rising through the ranks as time goes on. For example, an experienced person from another company might be courted and groomed for an executive-level position.

  • Training

Training includes the development of skills, company knowledge, and certifications. The training might include having employees cross-train and shadow various positions or jobs in all the major departments. This process can help the person become well rounded and understand the business on a granular level. Also, the cross-training process can help identify the employees that are not up to the task of developing multiple skill sets needed to run the company.

Benefits of Succession Planning

There are several advantages for both employers and employees to having a formalized succession plan in place:

  • Shareholders of publicly traded companies benefit from proper succession planning, such as the case when the next candidate for CEO is involved in business operations and is well respected years before the current CEO retires. Also, if investors observe a well-communicated succession plan, they won’t sell the company’s stock when the CEO retires.
  • With Baby Boomer business owners and leadership retiring in huge numbers, a new generation of leaders will be needed.
  • Employees know that there is a chance for advancement and possibly ownership, which can lead to more empowerment and higher job satisfaction.
  • Management keeps better track of the value of employees so that positions can be filled internally when opportunities arise.
  • Knowing that the company is planning for future opportunities reinforces career development among employees.
  • Management’s commitment to succession planning means that supervisors will mentor employees to transfer knowledge and expertise.
  • With succession planning, leadership and employees are better able to share company values and vision.

Need for Succession Planning

Succession Planning is a part and parcel of the Human Resource Planning, which acknowledges that the employees may or may not work with the organization in the future. And so to be at the safer side, a succession plan is developed to analyse the vacancies which might take place when an employee leaves the organization, the business areas which might be affected, job requirements and the skills of the existing incumbent.

Process of Training

Training development is a five-step process in which company train their employees in specific skills and further monitor their performance constantly to help them develop overall personality.

The training and development activity starts with a question about why the training is required. While end with the evaluation of output of training and development program.

Training needs of an organization are identified by any of the following analysis.

  • Organizational analysis: It is basically a systematic study of the organization’s objectives, resources, resource allocation and utilization, growth potential and its environment. Its purpose is to determine where the emphasis for training is to be placed in the organization so that effectiveness of the organization increases.
  • Task analysis: In task analysis the main focus is on the job. It requires the study of various types of skills and training required to perform the job effectively. It is systematic analysis of jobs to identify job contents, knowledge, skills and aptitudes needed to perform the job. The important aspects are the tasks to be performed, the methods to be used, the way the employees learn these methods as well as the performance standards required from the employees.
  • Manpower analysis: Both the internal and external environments influence the quality of manpower needed by an organization. The quality of manpower also depends upon the social, economical, political and technological environments in which the organization operates. The manpower analysis is done taking into considerations these factors to determine the quality of manpower needed. Specific training needs for the manpower are determined for meeting the quality standards needed as per the manpower analysis. These needs include (i) specific areas where employees need training, (ii) the capability of present employees to learn new skills and behaviour, (iii) the time frame for imparting training, and (iv) designing and redesigning of jobs with introduction of new work methods and technologies.

Steps involved in Training and Development Process

  1. Need of training and development
  2. Goals and Objectives
  3. Method of Training
  4. Implementation of program
  5. Evaluation and constant monitoring

Step I: Need of Training and Development program

Companies often take a decision to roll out a training and development program after identifying a specific need in the organization. The need could be introduction of new skill or to update the existing skills of the employee. In the case of employees working on higher level the training and development program is introduced to improve the behavior skills and ensure team work in the organization.

Step II: Goals and Objectives of Training and Development

Here are different goals and objectives the companies can set before implementation of training and development program:

  • To impart skills: Under this objective the employees are trained to operate the equipment and machinery correctly. The goals are set to improve work efficiency and to reduce wastage of time.
  • To Educate: The objective is linked with providing information about theoretical concepts and provides hands-on experience of the task. The goal is to improve reasoning power and judgment skills of employees.
  • To Enhance Knowledge: The objective here is to improve behavioral knowledge of the employee. The goal is to enhance understanding of human relations, management and business environment among employees.
  • Ethics: The objective is to provide knowledge about ethical conduct in the organization. The goal is to regulate the conduct of the employee in the organization.
  • Change in attitude: The objective of the training is to change the attitude of the employees in terms outlook, reaction, feelings and work beliefs. The goal is to improve commitment and satisfaction of the employee by providing required motivation. 
  • Extraordinary Skills: To impart extraordinary skills such as critical decision making, problem-solving and industrial research. The goal is make employee ready to face future challenges.
  • Literacy: Objective is to improve corporate language proficiency and increase awareness about corporate culture. The goal is to make sure employees are able to handle the international clients and customer in a decent way.

Step III: Training Methods

There exist different types of training methods used by the organization based on the goals and objectives of the training and development program. Here are few commonly used training methods in corporate world:

  • Orientations: It is generally used to introduce the newly joined employee to the organizational work culture. It includes few lecture sessions, meetings with supervisor and information regarding the history of the organization. This training is used to make sure the newcomer feels welcomed in the organization and become aware about their work profile, goals and objectives of organization, policies as well as rules and regulations to be followed.
  • Lectures: This is a one-way communication method, mostly used when important information has to be conveyed to large number of employees. The information can be related to new updates in policies or any change management action in the organization.
  • Case Study: Here the participants are given a situation in terms of case study and they have to provide solutions on the stated problem in the provided case. It is a best way to impart decision making skill and sharpen the judgment skills of the employee.
  • Role Playing: A scenario is created and each participant is assigned a particular role to play out. The participant can practice their actual job work using role play method. The facilitator provides immediate feedback to the participant which helps them to improve their performance. These kinds of scenario are very effective while providing marketing and management training.
  • Simulations: It can be used as a kind of games created from real-life scenarios. The benefits of this simulations is that employee gets better understanding of whole organizational structure and can study actual day-to-day problems to get a relevant solutions on it.
  • Computer-Based Training: The employees are provided study material and instruction on the computer. It allows employees to learn on their own pace and time.
  • Self-Instruction: Individualized instruction, programmed learning, personalized systems of instruction, correspondence study and learner-controlled instruction are different types of self-instruction training. Here employees are responsible for their own learning.
  • Audiovisual Training: In this type of training films, television and videotapes are used to expose employees to the real-life situation. The presentation includes the situation and how the problem stated in the situation is resolved. It helps employee to gain knowledge about diverse corporate situations and provide them an appropriate direction to take decisions.
  • Team-Building Exercises: The training is associated with the human behavior. It includes activities which can improve group dynamics and worker-management relations. It can be in the form of outdoor exercise or brainstorming sessions in the office.
  • Apprenticeships and Internships: It is a kind of on-the-job training in which the newly joined employee works with experienced employee and learns work related skills while performing the actual job.
  • Job Rotation:  In order to enhance the understanding about the whole organization and to add skills the job rotation method of training is used. Here employees do different types of job on rotational basis and gain knowledge of different work profile.

Step IV: Implementation of program

The management and HRM department takes a meeting with different supervisors to decide the time period of implementation of the training and development program. The implementation of orientation programs and other newcomer training programs is carried out right after joining of the employee. The specific skills training programs are launched based on the workload and free time span available to the employee. The on-the-job training program is an ongoing process and employees should be informed about it in advance.

Step V: Evaluation and constant monitoring

The evaluation of training and development program is generally carried out at the time of performance appraisal. The changes in performance and attitude are noted based on the performance review. The increase in productivity and accuracy of work indicates the success of training and development program. Improved work harmony and organizational citizenship behavior indicates the well being created by development programs. The constant monitoring of the behavior of the employee is achieved based on the monthly goal attainment and team work of the employee. Additional training programs are launched in the case of absence of any positive results in terms of improved employee performance.

Employee orientation is the procedure by which new employees learn important organizational process, qualities and standards, set up working relationship and figure out how to work inside their employments. Skills and technical training programs are organized to teach the new employee a particular skill or area of knowledge.

One of the main objectives of training is to provide learning in order to improve the performance on the present job i.e. how skillfully the individual handles the job and the level of outcomes/ result achieved.

There are various steps in training and development in order to be effective and bring about the desired results in terms of enhanced knowledge, skills and attitude. 

Training Needs Assessment

Identification of the training needs of the target group which is to be exposed to training can be done in 2 ways:

  • Training needs assessment at organization level
  • Training needs assessment at individual or employee level.
  • Training need assessment at department / functional level

Once the target group is identified, analysis the gap which needs to be bridged through training. Develop specific training objectives and targets for bringing about measurable improvement in their performance levels and enhancement in job related knowledge

Program design

  • Develop the program contents, training methods to be used, the speakers / faculty/ subject experts to be involved, the mode of instruments to be used, training aids to make the training program more result oriented.
  • Identify all training aids which are required for the desired training technique
  • Prepare the background material like write up on case, role play, incident method. Also ensure that qualitatively and quantitatively the background reading material meets the norms of delivery of the training objective

Critical preview of program

Administration and detailed physical fragments

Validation

Introduce and validate training before a representative audience. Pilot test all training aids, equipment etc to ensure perfect delivery on the D day

Program implement action

Conduct the program as planned, which each activity going as per schedule

Evaluation and Follow Up

Assess program success according to:

  • Reaction: Notify the document the learner’s immediate reaction to the training
  • Learning: use feedback devices or pre and post tests to measure what learners have actually learnt
  • Behavior: in consultation with the supervisor, observe the behavioural changes in the training. This is one way to measure the degree to which learners may apply new skills and knowledge to their jobs.

Steps in Designing of HRIS, HRIS Subsystems, Mechanisms of HRIS

Steps in Designing of HRIS

(1) Study the Present System:

In defining requirements or assessing the existing information system, three questions need to be answered; what is the present flow of information? How is the information used? How valuable is the information to decision making?

(2) Develop a Priority of Information that Managers Need:

Once the current system is understood well it is used to develop priorities. A manager must have certain information in order to make proper decisions. Other information is nice to have but is not essential to the manager’s decision-making. The HRIS must ensure provision of high priority information. Lower priority data should be generated only if the benefits exceed the costs of producing it.

One approach would be to have individual managers develop their own priority lists and then integrate them into a list for the entire organization. Certain departments will find that the information they identify as top priority would be far down the list for the organization as a whole. Here the needs of the entire organization might be the controlling factor.

(3) Develop the New Information System:

The organization wide priority list should govern the design of the HRIS. Information not worth the cost is excluded. A system of required reports should be developed and diagrammed. The entire organization is treated as a unit to eliminate duplicity of information.

(4) Choose a Computer:

Today, it is reasonable to assume that HRIS of most organizations will be computerized. Because of the increasing reliance on computers, the HR managers should be computer literate. The presence of computers is far too pervasive and their usefulness far too great for human resource managers to ignore their capabilities. Human resource software for personal computers is almost always the responsibility of the HR department.

The modern day complexities involved in managing a global labour force makes developing an effective global HRIS a necessity. Information concerning many factors affecting human resource must be shared. This information must be relevant and timely to assure that the best HR decisions are made.

HRIS Subsystems

Presently, HRIS is an integration of ‘HRM’ and the ‘Information System’. With the development of various concepts and sub-systems of the HR function, the top management’s perspective of HR has undergone a tremendous change prompting extensive use of computers that have the capability of pro­cessing, storing, and retrieving massive information of complex and diverse nature.

It helps managers to perform the HR function in a more effective, efficient, and systematic manner. It can be a potent weapon for lowering administrative costs, increasing productivity, speeding up response times, and improv­ing decision-making and customer service.

HRIS is now taken as an integration of activities of the HRM function and the information system in relation to basic HR activities, and covers people, poli­cies, procedures, and data required to manage the HR function. The most potent output of HRIS is the generation of various predesigned reports and graphical formats that help in the analysis of HR activi­ties for sound decision-making.

Top managements are increasingly making use of HRIS in various HR activities like HR planning and analysis, compensation and benefits, staffing, development of employees, performance evaluation, health, safety, and security, collective bargaining etc. Top managements are noted to have become more efficient by way of reduction in time spent on administrative work by 20 to 25 per cent and redeployment of time saved to higher tasks such as decision-making and employee development, eliminating paper and process inefficiencies.

Top managements’ horizon seems to have widened in realizing the transition of HR from an administrative department to a strategic department. Unlike in the past, the modern-day managements think of sharing data among all the functional areas to achieve organizational goals.

With that end in view, depending upon the financial constraints, choice of separate software for HR functions, and similar other considerations, an organization may choose either an integrated information technology solution like the ‘ERP System’ or a software like People Soft, SAP-HR, Abra Suite, Vantage, or Oracle-HRMS which are specifically developed for HR activities of an organization.

Mechanisms of HRIS

  1. Organizational Management Module:

It is mainly used to perform numerous business and HR processes. This module is installed before any of the aforesaid modules is introduced. The information entered in this module is regarding the jobs, tasks, positions and their relationship in the organization, job description, employees working in dif­ferent positions along with their qualifications, profiles, and tasks performed by them, and the different departments in the organization.

(1) The module creates an organizational plan which depicts the functional structure of an enterprise. By relating jobs, tasks, and positions with relationship a network that mirrors the organizational reporting structure can be created and depicted via easy-to-use graphical tools. In addition to this, relationship to objects from other components like cost centres, employee, or user can be created.

(2) When an organization changes the core business process which in turn necessitates staffing adjustments, HR people can dynamically adjust the organizational model to reflect the new situa­tion. Regular evaluation of personnel situation can help avoid qualification deficit in the future.

(3) This component can be used to match employees’ qualification profiles with job requirement pro­files on a regular basis in order to pinpoint training needs and take the measures necessary to offset it.

(4) It also gives instant access to information on number of vacant positions, their associated job descriptions, activity and requirement profiles of the position, and when the vacancies must be filled. With organizational development and the organizational structure model in place an enterprise can swiftly and efficiently determine current and future staffing requirements.

(5) This module gives reliable information on the staffing position in the organization along with the reports on staff assignments, existing jobs, positions, and tasks in the organization.

2. Recruitment Module:

It is a powerful tool which optimizes the recruitment procedure and reduces administrative overheads, time, and money spent on handling job applications. By automating routine tasks and delegating them to the system, it relieves the strain of the HR department. Information regarding the advertisement of job vacancies, basic data of the applicants, minimum requirements of the job, and standard text for letter of receipt, letter of rejection, and contract of employment are entered in this module.

(1) Using the SAP-HR recruitment model the organization can advertise a job vacancy on the internet.

(2) When applicant data are entered, it also checks to see if any of the applicants are former employ­ees or are currently employed in the company. This module automatically provides the existing master records of these applicants. It also passes the electronic documents submitted by these applicants to the HR administrator.

(3) The status of the application can be found by the applicant by using the applicant number and password.

(4) The applicants are given a confirmation that the application has been received. When an applicant’s data are entered, this module automatically generates a confirmation of receipt of the applicant. The applicants can receive a letter of rejection generated automatically by the system.

(5) The application documents are scanned into the system and archived. This means that the applica­tion documents can be called upon directly from the system.

(6) This module reports the applicants transferred to the applicant pool who do not fulfill require­ments of the position advertised but have a qualification profile. It also reports the list of unsolic­ited applicants and the applicants put on hold.

(7) When a candidate is selected, a contract of employment is offered to the selected candidate. The HR manager completes the selection procedure by entering the data of hiring and information by transferring them to the personnel administration module and the HR master data.

(8) The system can create statistical reports or lists on applications received, vacancies, and adver­tisement. It finds the cost of recruitment and replacement. It studies the sources from which employees were drawn and correlates this with success on the job to see if some sources should be dropped or added. The skill database is maintained, allowing retrieval of a potential candidate for a specified job.

(9) This module is integrated with personnel development and training and enables the management to determine whether the applicant requires further training in certain areas.

3. Personnel Administration Module:

It creates and processes employee data precisely and efficiently. This module deals with employee-related personnel activities which are called ‘personnel actions’. The basic personnel activities such as hiring, organizational assignment or leaving are handled in the Master Data Administration in this system.

The personal data of each of the employees is entered—his name, date of birth, marital status, family mem­bers, blood group, email address, emergency contact phone numbers, permanent and temporary address, etc. Besides this, date of hiring, official assignments, dates of promotion, change of pay, date of leaving, etc. are also entered in this module.

(1) It tracks the chronology of data of all times and forms the basis for sound HR decisions at all levels.

(2) Through this system every type of employee information can be saved using HR info types. Info types are data entry screens. They contain separate items of information entered into fields.

(3) The system automatically adjusts all relevant employee data to actual entry data of the employee. If the employee moves to another cost centre of the company the organizational assignment of employee also changes.

(4) This software ensures consistent data at all times. This module allows automatic monitoring of data for HR processes that require follow-up activities. For example, when hiring an employee, the HR manager can specifically be reminded when the probation period ends so that necessary follow-up activities can be done.

(5) Optical archiving allows scanning original documents such as work contracts, performance appraisal, or employee photo and archive them in the system.

(6) The top management can evaluate lists like employees’ directory, family members, bank details, anniversaries of years of service, and statistical information like staffing levels, nationality, age, wage, and seniority. SAP Business Graphics enables to the editing of evaluation results in a graph­ical form.

(7) It gives the ‘personnel action’ list of employees regarding his hiring, organizational assignment, reassignment to another cost centre, change of pay, termination, and re-entry.

  1. Payroll and Time Management Module:

It is an automatic planning table that is in-built in the system, and provides an overview of HRs available at a given moment. It helps in planning shifts, absenteeism management, recording working times, and compliance of labour laws. The country-wise versions are available to handle the payroll function. This can take care of multiple factors such as valuation of time data, partial payment calculation, reduction of company loans, etc.

Payroll is integrated with personnel administration, time management, and account­ing. Standardized data retention enables to use most of the data and payroll data from the personnel administration module. Time data entered via time management are automatically included in the pay­roll and valued during the payroll run.

The master file is composed of discrete pieces of information called data elements. Data are keyed into the system, updating the data elements. The elements on the master file are combined in different ways to make up reports of interest to the management and govern­ment agencies and pay cheques sent to employees.

(1) It calculates pay and includes tax tables in accordance with compensation regulations.

(2) The information on expenses and payables from the payroll is posted for accounting directly in financial accounting and it becomes easier to assign the costs to the appropriate cost centres.

(3) The system calculates gross and net pay which comprises individual payments and deductions that are calculated during the payroll period and received by an employee.

(4) The payroll system keeps track of money paid to the employee.

(5) The system generates pay cheques or direct deposits which are electronic transfers of compensa­tion funds from the company’s bank account to those of the employees.

(6) It determines the optimal health and retirement plans for each employee based on factors such as marital status, age, and other data.

2. Personnel Development Module:

It ensures that employees develop in line with the company’s goals, and at the same time enables to take individual preference of the employees into account. Personnel development has two important objec­tives. One is to ensure that there are enough qualified employees and managers in the organization; the other is to show all employees the career opportunities that are open to them, and to promote their work-related and social skills.

The career and succession planning components of the personnel develop­ment module provide powerful planning tools that help to achieve these aims. The data regarding career planning, succession planning, and performance appraisal are entered into this module. This module uses career planning to show employees what career opportunities are available if they perform well and prove suitable.

Pre-defined careers provide employees and applicants with the information on how they can progress within the organization. It can portray vertical and horizontal movements within the organizational structure and thus create all kinds of career paths for the employees.

Succession planning identifies candidates who are qualified in all respects to occupy a post at the present moment or in the future. In succession planning, the system enters information about qualifica­tions, career preferences of employees, estimated potential of employees, dislikes, and a pre-defined career.

(1) The system helps in obtaining the suitability of the potential successor and also gives concrete proposals for the training measures that need to be taken for individual candidates.

(2) The module reports the employees’ current suitability and personal preferences and forecasts what they are likely to be in the future. This system provides a powerful reporting and evaluation system.

(3) By performing various targets/actual comparisons the module helps in obtaining a realistic over­view of the company’s staffing structure.

(4) It helps in comparing employees’ profiles and displays the results in various formats so that analy­sis becomes easier.

(5) It can search through the entire company for persons with a particular qualification. This module is flexible and can be tailored to meet the company’s specific needs and personnel development strategy.

(6) It helps in identifying succession planning gaps in an organizational unit.

The organization can use this module for performance appraisal of employees. The appraisals are con­ducted using standardized criteria, thus ensuring maximum objectivity when results are calculated. It standardizes the process of employee evaluation by providing step-by-step guidelines to writing per­formance reviews, a check list of performance areas to be included in the evaluation and compute sub­totals of each category and weighted grade which can then be electronically stored as part of employees’ records.

(1) The system reports whether an employee was appraised in a given time period or not.

(2) It helps in determining which of the employees in an organizational unit have been appraised and by whom. It gives a list of the appraisals which have not been completed.

(3) It identifies persons who are over-qualified or under-qualified.

(4) It also identifies suitable applicants for a vacancy. As a personnel development instrument, an employee’s appraisal provides clear and reliable information to plan and monitor personnel development measures.

The additional modules in SAP-HR are travel management, training and event management, intranet employee self-service, and business workflow. SAP-HR is an integrated tool which is highly useful in multi-unit organizations whose operations are spread geographically.

Many of the HR decisions are data-based and fool proof maintenance of the same is imperative. Thus, integration of data helps an orga­nization to save on duplication efforts, man hours, and consequential financial cost. Circulation of data, transparency, and on-line employee communication are in-built benefits with this system.

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