Competitive Advantage

Buzz word? Or Mantra!!?

• It means a superior, or distinctive

competence in some function related to
competition

• Only a strength that is superior/distinctive

relative to competition can be a competitive
advantage.

• It can either be cost advantage (e.g.) Walmart

or it can be differentiation advantage (e.g.)
Apple
Sources of competitive advantage

• Before 90’s – Cost leadership and product differentiation etc.,

• Post 90’s – Strategy and Core competencies etc.,
• Early 2000’s – Investment in Technology
• Now – “People centric approach”

In highly competitive global economy, the factors such as capital,

technology, raw materials and information are increasingly able to be
duplicated…
People resources and Competitive Advantage
• The basic idea: establishing and maintaining competitive advantage
through people.
• Competitive advantage:
• Valuable, rare, non-substitutable
• Achieved not through strategy, but strategy implementation
Evolution

Personnel • 1930s/40s
• Administrative
management linkage

Human • Early 1970s

resource • One way/Two
way linkage
management

• Early 2000s
Strategic
• Integrative
HRM linkage
What is HRM?
• Strategic approach to the effective management of people in an organization
such that they help their business gain a competitive advantage.
• Maximize employee performance in service of an employer's strategic
objectives.

• Two questions :
• For a line manager, “Does it matter?”
• If yes, “Why does it matter?”
Evolution of HRM in India
• Formal industrial organization – 1850 – Europe established factories (cotton & jute) in India. British
rulers formalised the system

• Trade Unions – Mahatma Gandhi (Textile Labour association in 1920, Ahmedabad) – Influential

• 1929- 1931 – The Royal Commission on Labour – Labour and social security legislations by
appointing labour officers (Modern times movie)

• At the same time, Tata Steel – Jamshedpur – Welfare measures – before mandated by law

• Post independence - Mixed economy as growth model – Classified industrial organization -Public and
private sectors
• 1970-80’s –Organizations had Personnel administration, IR and Labour welfare - Crisis
or Issue driven role

• Alongside, Managerial Unionism - Establishment of management training institutes

and business schools like IIMs, XLRI – Modern principles in industry

• Mid 80s – Udai Pareek and TV Rao – HRD concept and Development oriented HR
systems

• Systematic attention to HRM – Organizational effectiveness

• Involvement of line and HR managers

• 1992 – Indian companies faced MNCs competitions – Towards total HRM

• Post 2000 – Rise of ITES/BPO
The Standard Causal Model of HRM

HR will only be effective if its strategy is aligned with the

business strategy.
The Harvard Model of HRM
The Harvard model of HRM has been attributed to Michael Beer in 1984 and contributions from Paauwe
and Richardson in 1997. It takes a more holistic approach to HR and includes different levels of outcome.
The Ulrich – HR Business Partner Model
The Ulrich Model was proposed in David Ulrich’s 1996 book Human Resource Champions,
which outlines four key roles the HR function
Ulrich revised his four-role business
partner model in 2005, expanding on
the functions and adding a fifth role.
The five roles are:
1. Employee Advocate
2. Human Capital Developer
3. Functional Expert
4. Strategic Partner
5. HR Leader.
Tailoring HR Model Selection:
• Individuality of Organization:
• Each organization, workforce, and HR team is unique, with distinct needs and
goals.
• Primary Considerations:
• Business Strategy: Initiate the selection process by aligning with your business
strategy.
• Organizational Design: Assess the size, structure, and design of your organization
to determine the most effective HR model.
• Industry Dynamics: Consider the specifics of your industry and competitive
landscape, influencing the positioning of HR within the business.
• Team Capabilities: Evaluate the capabilities of your HR team, ensuring they
possess the required skills and resources for effective HR service delivery.
• Cost-Effectiveness: Analyze the cost of HR services in relation to their impact on
organizational performance and the bottom line.
Top 5 HR game changers*
• HR – Business alignment
• Multigenerational workforce
• Innovation and Risk taking culture (e.g., Eureka Forbes, Lemon
tree hotels, Kolapasi)
• https://www.ft.com/content/4257b9bc-e4e0-11e7-a685-5634466a6915
• https://www.thehindu.com/society/giving-transgenders-a-shot-at-a-normal-
career/article18455791.ece
• Developing leaders (Make not buy talent)
• Evolution of Performance Management Systems

*Randstad’s Survey – 2020

Shaping HR functions
• VUCA World– (Volatile, Uncertain, Complexity and Ambiguity) – Skill
enhancement

• Uberization of HR - SMAC (Social Media, Mobility, Analytics and

Cloud*) – Impact on Sectors/HR functions

• *69% of firms are moving to cloud to drive higher user adoption of HR

systems (NASSCOM report, 2020)
“From Paper pushers to game changers” HR – Transition Phase

• Change in Workforce • “HR to go digital”

(tech savvy, creative, less loyal) • - Anuranjita Kumar, Chief
• Employee centric HR Human Resources Officer, Citi
South Asia
(Learning & Development, Flexible working
hours, wellness programs, leadership • “Workplaces will transform”
planning) • - Piyush Mehta CHRO, Genpact
• Mobile, Big Data & Analytics • “Make, not buy, talent”
(Feedback, Entrance to exit) – Eg. Google • -K Ramkumar Executive Director,
ICICI Bank
• Employer branding
• “Learning agility to rule”
(to attract best talent, infrastructure, culture
• - Abhijit Bhaduri Chief Learning
etc.) Eg. Facebook, Amazon
Officer, Wipro
In Nutshell,

• “Strategic” – is a dynamic word and so as the process of SHRM.

• People, People and people – Are the game changing resources who
make big difference in tomorrow’s world.
• In an economy where the only certainty is uncertainty, the one sure
source of lasting competitive advantage is

“HUMAN RESOURCES”
Job

• Generally defined as “a set of closely related activities

carried out for pay.”
From Specialized to Enlarged Jobs
Redesigning jobs to increase the feelings of responsibility,
achievement, growth, and recognition.

Job rotation

Job enlargement Job enrichment

Job Analysis

• Job analysis
• The procedure for determining the duties and skill requirements of a job
and the kind of person who should be hired for it.
• Job description
• A list of a job’s duties, responsibilities, reporting relationships, working
conditions, and supervisory responsibilities—one product of a job
analysis.
• Job specifications
• A list of a job’s “human requirements,” that is, the requisite education,
skills, personality, and so on—another product of a job analysis.
Job Analysis vs. Job Descriptions vs. Job
Specifications
A job analysis is an internal document that serves as the basis for
both job descriptions and job specifications.

Table 1. Job Analysis produces a Job Description and Job Specifications

Job Description Job Specifications

Job Title Qualifications
Job Location Experience
Job Summary/Duties/Responsibilities Training
Reporting to Skills
Working conditions/Hazards Emotional Characteristics
Steps in Job Analysis
Job Analysis Methods

• Questionnaires (Surveys)
• Electronic logs
• Observation
• Interviews
• Combination of methods
Job Analysis: A Basic Human Resource
Management Tool

Tasks Responsibilities Duties

▪Human Resource
Job Descriptions Planning
▪Recruitment
Job
▪Selection
Analysis Job ▪Training and
Specifications Development
▪Performance Appraisal
▪Compensation and
Benefits
Knowledge Skills Abilities
Planning and Forecasting
• HR planning
• The process of deciding what positions the firm will have to fill, and how to fill
them.
• What to forecast?
• Overall personnel needs
• The supply of inside candidates
• The supply of outside candidates
Steps in HR planning
• Personnel demand forecast
• Personnel supply forecast
• Comparison
• Personnel surplus
• Personnel shortage
Forecasting Methods
• Whether forecasting the requirement for human capital (i.e., demand forecasting), or the source of that
human capital (i.e., supply forecasting), a variety of methods are available to perform the forecast.
1. Survey-based Forecasting:
1. Involves soliciting business line input for anticipated needs.
2. Incorporates subjective decisions, including personal rules of thumb or seasonal forecasting preferences.
2. Norm-based Rules:
1. Utilizes existing assumptions derived from historical data.
2. Involves ratios of production or sales amounts to human capital needs, including trend analysis.
3. Time Series- and Regression-based Models:
1. Relies on objective data such as sales levels, marketing efforts, and historical demand.
2. Incorporates more information than norm-based rules in forecasting.
4. Mathematical and Econometric Models:
1. Can range from simple to complex models like Markov models, simulations and Structural equation modelling.
2. Highly data-driven, requiring expertise and quality data; potential benefit with evolving AI simplifying construction.
5. Qualitative Models:
1. Based on human judgment, including methods like Delphi Technique, focus groups, nominal group technique and scenario
planning.
2. Suited for high uncertainty situations or when quantitative data or expertise is lacking.
3. Examples include strategic decisions in industries like automotive transitioning to electric and autonomous vehicles.
Techniques of estimating/forecasting human resources demand

(a) Managerial Judgement

(b) Work Study Technique
(c) Ratio Analysis
(d) Econometric Models
(e) Delphi Model

26
Work- study technique
Let us assume that the estimated production of an organisation is 3.00.000 units. The standard
man-hours required to produce each unit are 2 hours. The past experiences show that the work
ability of each employee in man-hours is 1500 hours per annum. The work-load and demand of
human resources can be calculated as under:

Estimated total annual production = 300000 units

Standard man-hours needed to produce each unit = 2 hrs
Estimated man-hours needed to meet estimated annual production (i x ii) = 600000 hrs
Work ability/contribution per employee in terms of man-hour = 1500 units
Estimated no. of workers needed (iii / iv) = 600000/1500 = 400

The above example clearly shows that 400 workers are needed for the year. Further, absenteeism rate,
rate of labour turnover, resignations, deaths, machine break-down, strikes, power-failure etc. should
also be taken into consideration while estimating future demand of human resources/ manpower.
Ratio analysis

• Ratio analysis uses historic information to project future staffing needs.

• The ratio establishes a relationship between the number of employees
needed and another factor such as past staffing levels or past gross sales
revenues.
• Assumes that the relationship between the causal factor and staffing needs
is constant.
 EXAMPLE
• Newton Building Supplies hopes to generate an extra $4 million in sales
next year.
• A salesperson traditionally generates $800,000 in sales each year.
• To meet the target, how many more should be hired?
• Ratio analysis is used to make a forecast in this case based on the number
of salespeople and sales volume.
• Four million in sales/$800,000 generated by each salesperson indicates
that 5 extra salespeople should be hired by Newton.
Flipkart, amazon lead in seasonal hiring - The Hindu business line
Econometric models
• Scatter plot
• A graphical method used to help identify the relationship between two
variables.

Size of Hospital Number of

(Number of Beds) Registered Nurses
200 240
300 260
400 470
500 500
600 620
700 660
800 820
900 860

30
Determining the Relationship Between
Hospital Size and Number of Nurses
Delphi Technique
• Set of industry experts
• Facilitator to collate the answers on HR forecast
• Collated answers are circulated to the experts again for their revised
opinion.
• Procedure repeated until consensus is reached.
• Experts wont meet face-face rather communicate through the
facilitator.
 Human Resource Planning Process
External Environment
Internal Environment
Strategic Planning

Human Resource Planning

Forecasting Comparing Forecasting Human

Human Requirements and Resource
Resource Availability
Requirements Availability

Demand = Surplus of Shortage of

Supply Workers Workers

No Action Restricted Hiring, Recruitment

Reduced Hours, Early
Retirement, Layoff, Selection
Downsizing
Computerized forecasts
The use software packages to determine of future staff needs by
projecting sales, volume of production, and personnel required to
maintain a volume of output.
Generates figures on average staff levels required to meet product
demands, as well as forecasts for direct labor, indirect staff, and exempt
staff.
• https://www.ibm.com/analytics/workforce-planning

• https://www.youtube.com/watch?v=38P39-oO6pU
Differences

Recruitment Selection
• It is an activity of establishing • It is a process of picking up
contact between employers and more competent and suitable
applicants. employees.
• It is a positive approach. • It is a negative approach.
• It encourages large number of • It attempts at rejecting
Candidates for a job. unsuitable candidates.
• Hiring involves two broad groups of activities:
• Recruitment
• Selection

37
 Competency based R & S

• Competency, (plural competencies) refers to a cluster of personal

attributes relating to excellence in a specific activity.
• Competencies are made up of personality, ability, knowledge and
experience as well as interest and motivation.
 Recruiting Yield Pyramid

➢ Recruiting yield pyramid

– The historical arithmetic relationships between recruitment
leads and invitees, invitees and interviews, interviews and offers
made, and offers made and offers accepted.
Types of recruitment
• Internal recruitment
• Transfers
• Job postings (Promotions)
• Rehiring
• External recruitment
• Advertisement (Bulletin boards/Newspapers/online)/Walk-ins
• Employment exchange
• Employment agencies/Job portals (head-hunters)
• Educational institutions
• Labour contractors
• Professional and Trade Associations (eg, AOM, SHRM etc)
• Campus recruitment – Internships/PPO
• Referrals
• Softwares – Zing HR(End-end)/ textkernel (AI solution) –(possibility of bias?)
“It’s important to project three to six months ahead of
when you need to fill leadership and specialty positions.
Many tech positions take six months or longer to fill. If
your company is awarded a new client and you need to
deliver the work ASAP, it can be tough to recruit for
those positions in short turn around.”
Recruitment is a subset of TA
Changing face of R & S

• 84% of recruiters are in the process of adapting their hiring processes to

facilitate remote exchanges.
• Of these, 58% are now using social media networks like LinkedIn, Facebook
and even Instagram to connect with potential hires.
• A growing army of recruiters are also turning to videoconferencing to screen
and interview candidates, as well as AI and text messaging to connect with
candidates.

Source: https://www.cnbc.com/how-recruiters-select-and-interview-job-candidates-amid-
coronavirus.html

43
Selection Tools
• Standardized Psychometric tests
• MBTI, Thomas profiling, OPQ32, HEXACO
• Aptitude/ competence based assessments
• Group Discussion
• Interviews
• Structured –Semi structured-Unstructured
• Reference Checks
AI and Personality
• Artificial intelligence

• can predict your personality by scanning your eyes

• Machine-learning algorithms
• demonstrate links between eye movements and four of the big five personality
traits (neuroticism, extroversion, agreeableness, and conscientiousness)

Source: https://www.cnet.com/news/artificial-intelligence-can-predict-your-
personality-by-looking-at-your-eyes/
 Is AI The Answer To Recruiting Effectiveness?
• Time to hire and Quality of hire
• AI-powered Applicant Tracking System (ATS)
• Advanced artificial intelligence uses machine learning to mimic human
behavior. It takes volumes of data to achieve this effectively, and the risk
remains that AI will learn a human’s unconscious bias as well.

• https://www.reuters.com/article/us-amazon-com-jobs-automation-insight-
idUSKCN1MK08G

46
AI And Skilled Recruiters: A Winning Combination

• Clearly, artificial intelligence can improve recruiting efficiency and effectiveness.

• Recruiting and talent acquisition functions have evolved past personal networks and job
boards, but AI is not the sole solution to increased proficiency.
• Used alone, it may provide data that does not prove useful, it will ignore the human
idiosyncrasies of culture fit and it may overlook qualified candidates with underachieving
resumes.
• Engaging a talent acquisition strategy that leverages today’s powerful technology with
experienced human talent acquisition professionals will prove to be the most successful way to
win the battle for top talent in the future.
 Group discussions
work best when
organizations are
hiring in volume.
"However, in the
professional hiring
space, when an
organization is
looking for niche
skills group
discussion do not
serve as the best
option,'' said
Savneet Shergill,
head – talent
acquisition, Dell
India.

http://timesofindia.indiatimes.com/articleshow/21968998.cms?utm_source=
contentofinterest&utm_medium=text&utm_campaign=cppst
Let’s see some facts
• 76% of resume rejections are due to unprofessional email addresses.
• 80% of the job offers are not posted online.
• Job interviews last between 45 minutes and 1 hour.
• 85% of people lie on their resumes.
• You only have 7 seconds to make a good first impression
• Millennials and Gen Zs will make 75% of the global workforce by 2025.
• 47% of the candidates failed the job interview because they didn’t have enough
information about the company they applied to.
• 92% of companies use social media platforms to look up candidates

Source: https://legaljobs.io/blog/interview-statistics/
Elevator Pitch
Focus on how you deliver..!
• You need to be convincing and memorable.

• Without this, the content won’t matter.

• Sound ambitious

• Sound you are seeking challenging Job

 Basic Features of Interviews
▪ Information from a person through oral responses to oral inquiries
• Types of interviews
• Selection interview
• Appraisal interview
• Exit interview
• Interviews formats
• Structured
• Semi-Structured
• Unstructured
Structured interviews
• The interviewer will not deviate from the interview schedule (except to clarify the
meaning of the question) or probe beyond the answers received.
• A structured interview is also known as a formal interview.
Advantages
• Easy to replicate as a fixed set of closed questions are used, which are easy to quantify
– this means it is easy to test for reliability.

• Fairly quick to conduct which means that many interviews can take place within a
short amount of time.
Limitations
• Lack flexibility. This means new questions cannot be asked impromptu (i.e. during the
interview) as an interview schedule must be followed.
Unstructured interviews

• Do not use any set questions, instead, the interviewer asks open-ended questions based on a
specific job profile, and will try to let the interview flow like a natural conversation.

• The interviewer modifies his or her questions to suit the candidate's specific experiences.

• Unstructured interviews are sometimes referred to as ‘discovery interviews’ and are more like a
‘guided conservation’ than a strict structured interview.

• They are sometimes called informal interviews.

Advantages
• More flexible as questions can be adapted and changed depending on the respondents’ answers.
The interview can deviate from the interview schedule.

• Unstructured interviews allows the respondent to talk in some depth, choosing their own
words. This helps the recruiter develop a real sense of a person’s understanding of a situation.

Limitations
• Time-consuming.
• Employing and training interviewers is expensive.
Interview Content: Types of Questions

• Situational interview
• How the candidate would behave in a given situation. (eg. LinkedIn)
• Behavioral interview
• How the candidate reacted to actual situations in the past.
• Job-related interview
• Relevant past job-related behaviors.
Interview Content: Types of Questions

• Stress interview
• Make the applicant uncomfortable
• Rude questions
• Spot sensitive applicants
• Low or high stress tolerance.
• Puzzle questions
• Unique (“out-of-the-box”) solutions
• How candidates think under pressure.
The Future of Recruiting Won't Have Any Resumes, and Two More Predictions From an
Expert

• The end of the resume is near—instead, technology will provide

more signals about a candidate’s potential
• Machines will power “intelligent inclusion,” reducing gender bias
• Online tools will help recruiters test for “LQ”

Source: https://business.linkedin.com/talent-solutions/blog/future-of-recruiting/2018/future-of-
recruiting-predictions
 Common interview errors
• Error #1: Not defining the job clearly
• Error #2: Stereotyping
• Error #3: Forming first impressions
• Error #4: Not preparing interview questions in advance
• Error #5: Accepting resume information at face value
• Error #6: Poor interviewing skills -Interviewer behaviour
• Error #7: Rushing to hire
(Author- Gerald Walsh)
• “Similar to me”/Affinity bias
• Confirmation bias
• Candidate order (contrast error)
• Non verbal behaviour and Impression management
How to avoid the errors
• Awareness and training
• Multiple tests
• Multiple selectors
• Structured interviews with assessment keys
 Looking for your next job?

Make sure your social media profiles are safe for work
because employers are screening candidates' social
media.
• The three main platforms that most employers check are LinkedIn,
Facebook and Twitter
• Most employers view LinkedIn as a secondary resume and other social
media sites such as Facebook, Twitter and Instagram as more personal.
• Since it's legal for employers to check public social media accounts, consider
making personal accounts private.
Why employers use social media?
• Nearly half of employers (47 percent) say that if they can't
find a job candidate online,
• They are less likely to call that person in for an interview –
• 28 percent say - To gather more information before calling in a candidate for an
interview;
• 20 percent say - They expect candidates to have an online presence.
More Than Half of Employers Have Found Content on Social Media That Caused
Them NOT to Hire a Candidate, According to Recent CareerBuilder Survey

• Seven in ten employers (70 percent) use social networking sites to

research job candidates during hiring process

• Nearly half of employers (48 percent) check up on current employees

on social media

• A third of employers (34 percent) have reprimanded or fired an

employee based on content found online
Background Investigations and Reference Checks
• Extent of investigations and checks
• Reference checks (87%)
• Background employment checks (69%)
• Criminal records (61%)
• Driving records (56%)
• Credit checks (35%) (Source: Gary Dessler)

• Reasons for investigations and checks

• To verify factual information provided by applicants.
• To uncover damaging information.
https://www.businesstoday.in/current/corporate/this-gurugram-based-firm-
is-changing-the-face-of-background-verification/story/410126.html
• AuthBridge is the first background verification company in India to
provide instant identity verification through Aadhar and PAN card.
 Five Principles of Learning
• Participation:
• involve trainees, learn by doing
• Repetition:
• repeat ideas & concepts to help people learn
• Relevance:
• learn better when material is meaningful and related
• Transference:
• to real world using simulations
• Feedback:
• ask for it and adjust training methods to audience.
Classification of Learning Outcome

Skill-Based Learning
▪Compilation
▪Automaticity

Learning

Cognitive Knowledge Attitudinal Learning

▪Declarative Knowledge ▪Affect/Feelings
▪Procedural Knowledge
▪Strategic Knowledge
The Purpose of Employee Orientation/Onboarding
• Welcome
• Basic information
• Understanding the organization
• Socialization
• Buddy system
The Orientation Process
• Employee handbook
• Orientation technology
• Gifts?
Is there a difference?

Orientation
Onboarding
• Focus: Role in company
• Focus: Role in department
• Duration: One-time event
• Duration: Sequence of events
• Setup: Classroom
• Setup: On-the-job
• Content: Big picture
• Content: Individualized
• Outcome: Ready for
training • Outcome: Ready to contribute

If onboarding represents an entire pie, orientation is but one slice of that pie.
The ADDIE Five-Step Training Process
• Analyze
• Design
• Develop
• Implement
• Evaluate
 The Gap Concept

200 Cars
Expected Curve

1,000 Cars Gap

Performance/ Actual Curve
Results
800 Cars

Time
In training terms this means we need to develop programs to fill the Gap
Training Needs

The reasons for not As training experts we must

making the 1,000 analyze the situation to
cars: determine if:
• Not enough resources • Expected result too high
• Poor machines • Target achievable
• Poor staff skills • Is training the only way to
make it happen
• Are there other factors.
Conducting the Training Needs Analysis
• Strategic Training Needs Analysis
• Current Training Needs Analysis
• Task Analysis
• Performance Analysis
(Competency Gap)

You should come out with: an analysis of training needs and a training plan
 Designing the Training Program

• Setting learning objectives, delivery methods and program evaluation

• Designing a motivational learning environment
• In accordance with principles of learning

You should come out with: an overview of the course design and
storyboards/prototypes.
 Developing the Program
• From design to deliverable
• Assemble training content and materials
• Training Methods
‒ iPads
‒ Workbooks
‒ Lectures
‒ PowerPoint slides
‒ Web- and computer-based activities course activities
‒ Trainer resources and manuals
‒ Support materials

‒ You should come out with: Course Content

Can you recall some of your learning
methods?
• Instructor-led classroom training
• Interactive methods
• Hands-on training
• Computer-based and e-learning (LMS) training
• Video training
• Coaching and mentoring
Types of training
On the job training refers to the methods that are used at the workplace, while
the employee is actually working. Eg. Understudy, Job rotation
Off-the-Job trainings are conducted at locations which are specifically
designed for such trainings. These locations may be near or away from the
work place.
• Corporate Universities. Eg. Mysore campus (Infosys)
• Executive Coaches
• LMS, MOOC, Social media, Mobile
• Gamification
Here are four key trends impacting how organizations must rethink training and
development:

• Remote mobile training

• AI training
• Agile learning
• Remote flexible learning models
• More than 120 million workers in the world’s 12 largest economies may need to be
retrained/reskilled in the next 3 years as a result of intelligent/AI-enabled automation
• Talent is critical: CEOs rank investment in people as the #1 way to accelerate performance.
Microlearning

• Microlearning is a set of ‘bite-sized’ amounts of information for

learners.

• Each is under 20 minutes and focuses on a single topic.

• It’s often delivered through apps, videos, infographics, or games

and contains an interactive section, such as a quiz.
AI and personalization of the learning experience
• Digital training methods such as augmented reality (AR), virtual
reality (VR), simulation, and gamification can optimize learning for
certain jobs and employees.
• A PwC study revealed that a VR learning environment made
learners feel 3.75 times more emotionally connected to the training
content than if they were in a classroom setting.
• Algorithms that generate personalized learning paths by analyzing
employees’ learning history, performance, and preferences.
Implementing Training Programs
• Training site – Noise, Light, chair, Laptops etc.,
• Seating – Fan shaped, Horse shoe
• Trainers – Inside/outside
• Creating learning setting- collaboration or self learning
• Group dynamics

You should come out with: Your courses are live in the classroom/LMS and learners can start
to take and complete courses
Evaluating the Training Effort
• Training Effects to Measure
‒ Reactions
‒ Learning
‒ Behavior
‒ Results

You should come out with: An evaluation report and actionable changes for the
current or future courses
Impact study
• Evaluation planning – Determine the indicators to measure impact, such as
certain types of sales data. Also, determine which training data to collect, such
as cost and participation rates.

• Data collection – Collect data from a variety of sources with specified

parameters that include both pre- and post-training statistics.

• Data analysis – Translate the data into a monetary value through the ROI
formula: Net return on investment ÷ Cost of investment ×100% = ROI

• Reporting – Finalize the impact study by creating a report that explains the
key findings with qualitative and quantitative data.
Corporate training – Some facts

• One of the best ways to manage the ADDIE model is a software tool like Trello.
https://trello.com/b/q8eaMbdp/instructional-design-addie-template
• Startups like Myntra, Swiggy, and Flipkart use the Simplilearn platform to train their employees
• The learner paced e-learning model is still dominated by Global players like Skillsoft, LinkedIn learning
(earlier Lynda), and Pluralsight to name a few.
• Coursera, Udemy, Khan Academy, edX are some more examples.

According to the LinkedIn 2020 Workplace Learning Report, 94% of employees would stay with a company
longer if there was an investment in learning.
94%! That’s huge!
If investing in learning is what it takes to keep the large majority of employees happy to stay at your company
for longer, don’t companies owe it to them to do that?
When Is Training NOT the Best Intervention?
• Training is not the best intervention when the
performance issue is a result of:
• Recruiting, selection or compensation problems.
• Policies and procedures issues.
• A lack of coaching and feedback.
• Insufficient tools, equipment or resources.
• Work environment problems.
• A lack of motivation (job-person fit; person-org
fit); a “won’t do” issue.
Let’s see some facts
• 76% of resume rejections are due to unprofessional email addresses.
• 80% of the job offers are not posted online.
• Job interviews last between 45 minutes and 1 hour.
• 85% of people lie on their resumes.
• You only have 7 seconds to make a good first impression
• Millennials and Gen Zs will make 75% of the global workforce by 2025.
• 47% of the candidates failed the job interview because they didn’t have enough
information about the company they applied to.
• 92% of companies use social media platforms to look up candidates

Source: https://legaljobs.io/blog/interview-statistics/
Performance Appraisal ⊂ Performance management

• Performance management:
• Dynamic, continuous process.
• Improves organizational effectiveness.
• Aligned with strategic goals(e.g. ideapreneurs – strategic planning )

• Performance appraisal:
• Periodic (usually annual) event.
• Formal review.
• Providing feedback with a aim to improve or help employees.
Why performance appraisals?

To identify training
needs, to correct
Opportunity to deficiencies (if any)
communicate the and to reinforce
expectations behaviours as
required by the job.
(job analysis)

To identify employee
strengths and To decide salary hikes,
weaknesses, and use promotions &
the same for career retention
planning.
Steps in Performance Appraisal

• Defining the job

• Making sure that you and your subordinate
agree on his or her duties, job standards and set
goals. (SMART goals) – MBO
• Appraising performance
• Comparing your subordinate’s actual
performance to the standards that have been set;
this usually involves some type of rating form.
• Providing feedback
• Discussing the subordinate’s performance and
progress, and making plans for any development
required.
Who Should Do the Appraising?
• The immediate supervisor
• Peers
• Rating committees
• Subordinates
• 360-Degree feedback
• Self appraisals??
 Performance Appraisal Methods

• Graphic rating scale

• A scale that lists a number of traits and a range of performance for each
that is used to identify the score that best describes an employee’s level of
performance for each trait.
 Graphic
Rating Scale
 Alternation Ranking Scale

Ranking employees
from best to worst
on a particular trait,
choosing highest,
then lowest,
until all are ranked.
 Paired Comparison Method
Ranking employees by
making a chart of all
possible pairs of the
employees for each trait
and indicating who is the
better employee of the
pair.

Note: + means “better than.” − means “worse than.” For each chart,
add up the number of 1’s in each column to get the highest-ranked
employee.
Forced distribution method
• Similar to grading on a curve; predetermined percentages of ratees
are placed in various performance categories.

• Example:
• 15% high performers
• 20% high-average performers
• 30% average performers
• 20% low-average performers
• 15% low performers
 Example of a
Behaviorally
Anchored Rating
Scale for the
Dimension
Salesmanship
Skill
Balanced score card
“The balanced scorecard retains
traditional financial measures. But
financial measures tell the story of
past events, an adequate story for
industrial age companies for which
investments in long-term
capabilities and customer
relationships were not critical for
success. These financial measures
are inadequate, however, for
guiding and evaluating the journey
that information age companies
must make to create future value
through investment in customers,
suppliers, employees, processes,
technology, and innovation.”

-Kaplan & Norton

The New Trend: Get Rid of the Performance Review

The main reasons for their decisions to change how they do

performance management are:
• Time Costs: HR and managers spend way too much time on
them that could be well spent elsewhere.
• ROI: Companies are not seeing them have enough of a
positive impact on performance.
• Morale: As the comics below show, there’s a lot of ways for
them to end up causing more harm than good.
Computerized and Web-Based
Performance Appraisal

• Performance appraisal software programs

(eg. BambooHR, Zoho people, etc)
https://www.bamboohr.com/performance-management/
• Keep notes on subordinates during the year.
• Electronically rate employees on a series of performance traits.
• Generate written text to support each part of the appraisal.

Electronic performance monitoring (EPM)

• Having supervisors electronically monitor the amount of
computerized data an employee is processing per day, and
thereby his or her performance.
Appraisal Interviews
• Types of appraisal interviews
• Satisfactory—Promotable
• Satisfactory—Not promotable
• Unsatisfactory—Correctable
• Unsatisfactory—Uncorrectable
• How to conduct the appraisal interview
• Talk in terms of objective work data.
• Don’t get personal.
• Encourage the person to talk.
• Constructive feedback.
 Potential Errors in Appraisals
• Central tendency - Rating employees as average.
• Halo/horns effect - Letting one negative work factor or behaviour you
dislike color your opinion of other factors or Letting one positive work
factor you like affect your overall assessment of performance.
• Favouritism. Overlooking the flaws of favoured or "nice" employees,
especially those whom everyone likes.
• Guilt by association. Rating someone on the basis of the company they
keep, rather than on the work they do.
• Holding a grudge. A dangerous luxury that may result in your ending up
in court. Never try to make employees pay for past behaviour.
• Recency. Rating only recent performance, good or bad.
CORPORATE FACTS - EXAMPLE

• Adobe, Deloitte : Use “check-ins”—ongoing discussions between managers and employees to set
expectations for the upcoming week, review priorities, comment on recent work, and provide
course correction, coaching, or important new information.
• GE: Rather than a formal, once-a-year review, managers and their direct reports hold regular,
informal “touchpoints” where they set or update priorities that are based on customer needs.
• Walmart: Uses an extensive “MBO participatory approach” to manage the performance of its top,
middle, and first-line managers.
• RBS, Sainsbury’s, G4S, PwC: Use “360-degree”, multi-rater performance feedback to measure
employee performance.
• Microsoft, Philips: Use the “assessment centre” practice to evaluate performance and identify
future leaders in their workforce
• McKinsey: Use “Self appraisals” followed by peer/supervisor review to evaluate performance of
employees.
How to Avoid Appraisal Problems
• Train supervisors to reduce rating errors such as halo, leniency, and central
tendency.
• Have raters compile positive and negative critical incidents as they occur.
• 360° Reviews
• Custom forms -Use the right appraisal tool. Each tool has its own pros and
cons.
• Automated performance management systems
Incentives – Pay for performance

• Commissions
• Annual Bonus
• ESOPs
• Gain sharing plans (Specific group members)
• Profit sharing plans (All members)
• Golden parachutes
The Cafeteria Approach

Types of plans
• Flexible spending
-Debit cards
(medical services)
• Core plus options
Flexible Work Schedules
• Flextime
• Telecommuting
• Compressed Workweek
• Job Share
• Work from home
 Employees prefer bonus to ESOPs in compensation:
Experts – (Economic times)

• With a number of start ups collapsing mid-way, many employees are now
preferring bonuses instead of Employee Stock Option Plans (ESOPs) as part
of their compensation package, industry experts said.

This trend is seen across the start up industry, including e-commerce, food,
technology, logistics and financial services

Bonuses are generally short term component, paid either yearly or quarterly,
and is becoming an attractive option even if it is one-third or one-fourth of the
value as compared to the ESOPs
A Zero wage increase again?
• Psychological contract
• Organizational justice
• Bounded rationality
• Performance linked compensation
• Motivational theories
Motivation and PAY
• Vroom’s Expectancy Theory

• Motivation =

• If any factor (E, I, or V) is zero, then there is no motivation to

work toward the reward.
• Employee confidence building and training, accurate appraisals,
and knowledge of workers’ desired rewards can increase employee
motivation.
Equity and its Impact on Pay Rates

• Equity Theory of Motivation - is once a person

perceives an inequity a tension or drive will develop
that motivates him or her to reduce the tension and
perceived inequity.
Equity and its Impact on Pay Rates (2 of 2)

Type of Equity
1. External
2. Internal
3. Individual
4. Procedural
 Equity Theory

• External equity
• How a job’s pay rate in one company compares to the job’s pay rate in other companies.
(Salary surveys)
• Internal equity
• How fair the job’s pay rate is, when compared to other jobs within the same company (Job
analysis and job evaluation)
• Individual equity
• How fair an individual’s pay as compared with what his or her co-workers are earning for the
same or very similar jobs within the company. (Performance appraisal and incentive pay)
• Procedural equity
• The perceived fairness of the process and procedures to make decisions regarding the allocation
of pay. (Communications, grievance mechanisms, and employees’ participation)
Goal-Setting Theory (MBO)

• Goals tell an employee what needs to be done and how much effort is
needed.
• Evidence suggests:
• Specific goals increase performance.

• Difficult goals, when accepted, result in higher performance than do

easy goals.

• Feedback leads to higher performance than does non-feedback.

Reasons -Mergers & Acquisitions
• Increasing Profitability.
• Expand & Gain Market Share.
• Cross-Selling.
• Gain synergies and innovate
• Acquiring new technology.
• Improved Market Reach and Industry visibility.
• Overcome trade barriers by entering into international partnerships
• Identify business opportunities in new countries
• Access new resources for business development
• Achieve economies of scale
• Achieve sustainable competitive advantage.
 Types of Mergers
• Horizontal – HP and Compaq – similar products/services in same market, decreases market
competition.

• Vertical – eBay and PayPal– Two companies join forces in the same industry but they are
at different points on the supply chain.

• Conglomerate – Phillip Morris and Miller Brewing -to gain synergy and to expand their product
range
Issues during M&A
• Profitability (Finance issues)
• Resource Optimization (Operational Issues)
• Market Study (Marketing Issues)
• Technological Issues (IT Issues)

Human Related Issues ???

Actions from HR
Actions from HR Psychological & Cultural Impact on Employees
Communication Raises questions among employees
What is Happening?
Business Strategy Employees Question the rational
Why is it Happening?
Organization Structure Employees Question their Short –term Future
Where will I be in 6 months?
Appointments & Exits Employees Question their Long term prospects
Will I have a job?
Terms and Conditions Doubts raised about financial benefits
Will I loose out? to gain synergy and to expand their product
range
Managing performance Questions about management expectations from
personnel
What is expected of me?
Training & Development Further questioning the future
Do I have a future?
M&A Phases
Pre-combination
Step 1: Step 2: Due Step 3: Step 4: Step 5: Post-
Pre-Deal Diligence Integration Implementation Deal
Planning

• HR is on the M/A Deal Team

• Each step is a new level of commitment towards the deal and requires more
information and analysis
Case Study – 1998 – Daimler Benz and Chrysler

• Daimler Benz bought Chrysler in 1998 and combined to form Daimler

Chrysler, a $37 billion automotive giant that had a massive presence both
sides of the Atlantic.
• However, cultural clashes between the two companies were cited as a key
reason for the failure that led Daimler to selling Chrysler in 2007 for $7
billion.
• In this case, the “efficient, conservative and safe” culture of Daimler
clashed with the “daring, diverse and creating” culture of Chrysler. The
due diligence work carried up front had not properly assessed the
challenge both organizations faced in working with each other.
• Also, the transaction was described as a “merger of equals” and this was
not the reality within the new organization. Chrysler had obviously been
taken over and there was little trust between the two organizations.
Daimler-Chrysler (DCX) Merger
Clash of Cultures.

• Daimler Benz • Chrysler Corporation

• Germany • U.S.
• Planned & methodical way • Carefree Attitude, individual instincts & ideas
• Experimentation ,Trial & error Approach
• Stuck to their plans & frowned on failure. • Flat Structure
• Hierarchical ,Top-Down structure
• Bureaucratic • Highly Decentralized
• Spoke only German • Hardly knew German
• Formal Dress Code • Casual Dress Code
• Lower Compensation • Higher Compensation
After the Merger

• Compensation system was restructured- Chrysler employees did not like the lower
salaries after merger.

• Daimler started exerting pressure on Chrysler employees to adopt most of its policies
& Procedures.

• Chrysler was slowly overshadowed by Daimler in almost all areas.

• Daimler employees were in key positions & took most of the key decisions

DCX went through major crisis.

Air India and Indian Airlines merger
• Two government owned airlines – failed to generate the expected
outcomes by early 2013
• On July 15, 2007, AIL and IAL were merged to form a new
company the National Aviation company of India limited (NACIL)
• The reason for merger was to solve dipping profits, increase of fleet,
to overcome the competition from new entrants
Failed Merger: Possible reasons
• Leadership crisis
• Unplanned aircraft purchases
• mishandling of the strikes
• lack of experience – Management team
• improper handling for human resource integration
• HR integration issue
• Different HR policies
• Bloated headcount
• Lack of synergy
• Disparate and incompatible entities
• No proper due diligence
• Financial projections were not properly validated before the merger
• Time of merger is an issue
• Type of entity (Marriage between two incompatible individuals)
• Lack of IT integration
• AIL’s and IAL’s implemented IT systems were not integrated, increasing costs and
resulting in inefficient aircraft utilization
6 golden rules of M& A
• Setting rationale
• Letting the “Why” and inform the “how”
• Fusing at full speed
• Keeping customers (internal/external) at forefront
• Communicating the vision
• Managing three phases of integration
So if people issues are so critical, why are they neglected?

• Possible reasons include:

• The focus of attention in M & A activity is on other
activities such as finance, accounting, and
manufacturing
• The belief that they are too soft, and, therefore, can be managed
• Lack of awareness or consensus that people issues are critical