hrd i unit

7/31/2019 HRD I unit

1/12

N ARUNAGIRI/ASST PROFESSOR/VT ARTS COLLEGE Page 1

UNIT I

HUMAN RESOURCE DEVELOPMENT

Definitions:HRD is the framework for helping employees develops their personal

and organizational skills, knowledge and agilities.

1) National HRD Definition [India]2) Western HRD Definition3) Global HRD DefinitionConcept:

HRD= Human resource+ Development

Human Resource-> people with talents and skills available to an organizationas potential contribution

Development-> A process of active learming from experience leading tosystematic and purposeful development of a person as a whole.

Process of development human resources:

Procure capabilities

Improvement of capabilities on a continuous basis.

Provide a suitable work place culture.

OBJECTIVE OF HRD

EquityEmployability

Adaptability / Competitiveness

Goals of Human Resource Development

Facilitating Organizational Effectiveness Enhancing Quality and productivity Promoting individual growth and development Integrating people into business

Principles of HRD

Principles of development of Organizational Capacity Principle of potential maximation Principle of Autonomy maximization Principle of Maximum delegation


2/12


Principle of Participative Decision- Making Principle of Change management Principle of Periodic review

Functions of HRD

Development Functions Maintenance function Control function

Evolution of HRD from Personnel Management:

Concept upon which HRM theory is based dates back to 400 B.C Childrens inventiveWage plansIncentive wage plans- Babylonian codes of Hammurabi 1800 B.C- Chinese

1650 B.C Principle of Divison of Labor- Span of Mgmt & related concept of

organization were well understood by Moses 1200 B.C. In India Kautilya- observedsound base for systematic management of HR as early as 4th

century B.C.

Prior to Indus Revolution- Slavery- Serf deem-[an agricultural laborer who wastied to working on a particular estate]- guild system- medieval association of

craftsmen or merchants, an ass of ppl who do the same work.

Slavery on negative incentive system

Serfdom on positive incentive system

Both were replaced by guild system involving 3 sets of ppl viz master craftsmen[owner], Journeyman [traveling worker] and apprentice.

G system marked the beginning for HR planning for selection, Tra & d of

workers, etc.Then came Indus Revolution in 19th century in Great Britan economic principal

or doctrine of laissez- faire.

A policy of leaving things to take their own course, without interfering.

New Indus Organization were characterized by factory system [change fromcottage sysor home centered production system]

During WWI [1917] great importance were given to PM functions by businessexpansion, labors strategies & higher wage rates.

Great depression of 1920-21. Hr ppl out of jobs

1920-22 various literatures came up worldwide dealing the differ areas of

personal administration.

1923 like other functions; PM also reached maturity & become a professional &was given importance.


3/12


HRD as a separate Discipline:

1947 Kurt Lewins studies of behaviour of small groups & setting up of NationalTraining Laboratories- foundation for HRD Profession- which till late 1940 was the

domain of psychiatrists, psychologists, counselor, nurses & furthered concepts ofhuman relation training & the experiential approach.

Participants in T-groups identified problems, acquired the skills and also activelycollaborated in problem solving process.

T- Groups leaders unlike traditional instructors, became facilitators & focused onhow individuals relates to, interacts with other individuals & groups, trained onleadership & its influence handling conflicts expressing feelings, gives & receives

feedback completion & co-operation, problem solving & increasing awareness of one

self & ones impact on others.

1969- Handbook of structured Experience for human relations training- Publishedby university Associates- gives structured experiences with guidelines for training &

development.Following that in 1972 & 1973 Publication of handbook for group facilitators

enhanced HRD as a recognized area of professional endeavor, delineating [describing]HRD as a new profession, including the personal function.

Development Perspective of HRD

Competition is global Competencies have gone global Technology and finances have become a relatively lesser issue Speed, Quality and cost give competitive advantage Outsourcing has become global Structures are changing fast Management technologies are easily available Knowledge is being improved Customer expectations are fast growing Brand distinctions are disappearing New business models are emerging Product innovations are on the increase

HRD at Macro & Micro Levels:

Macro HRD Level:

Social level

1) Health2) Education3) Employment4) Actualization


4/12


HRD at Micro Level:

* Organizational behaviour-HRD [in the context of organization & individualself].

* Organizational Behavior-Development of Individual self.

Outcomes of HRD

National Contexts

Builds competencies in people

Develops a skill base

Helps to Participate in productive activities

Hence Provides health living, long living and enhances Quality of life

Organizational context

Various categories of outcomes are as fallsHRD subsystems [Eg: HRD Depts., appraisal systems]

HRD processes [Eg: Role clarity, Collaboration]

Ultimate outcomemore competent people to work.

Qualities and Competencies of HRD Professional

Business skills Leadership skills Consulting skills Technical skills Interpersonal Skills Global mindset

Role and Responsibilities of HRD Manager

HRD strategic advisor HRD systems designer and developer Organization change consultant Organization design consultant Learning programme specialist Instructor/ Facilitator Individual development and career consultant Performance consultant Researcher


5/12


Importance of HRD in Present context HRD is needed to develop competencies HRD is needed to mitigate some of the evil consequences of industrialization

HRD is needed to bring about system- wide changes HRD is needed to develop a proper development climate in the organization.

Theory and Practice of HRD: HRD Concepts

Subsystems of HRD

Human Resource Planning

Steps involved in HRP

1)

Collecting Information:Knowing about both internal and external environments

This steps is conducted as part of Strategic planning process2) Demand forecasting

Forecasting the demand for employees at various points in future.

Forecasting the demand for employees is based on the information aboutthe past and present and in assumption about the future of the organization

Goal: To determine how many and what type of employees will be needed

in future.

Most forecasting methods require certain assumption regarding past trendsor productivity ratios.

The Organization must formulate a clear- cut promotion policyExistence of mechanism to give feedback to the employee on his potentialassessments.

Finally the organization must link its potential appraisal system withvarious other sub-system of HRD.

Methods of forecastingBottom up techniques

Delphi techniques

Nominal group technique

Ratio- analysis

Major considerations in forecastingAbsenteeism

Retirement

Succession planningTechnology upgrading


6/12


3) Supply Forecasting Internal supply analysis External supply analysis Gap Analysis

4) Planning and conducting needed programmes.Appropriate Programmes for recruitment and selection are planned and conducted

to fill the manpower gaps.

Performance Appraisal

Performance Appraisal is a process of systematically evaluating performance and

providing feedback upon which performance adjustment can be made

- Schermerhorn, Hunt and Osborn 2004

Objectives of PA:

To increase motivation and productivity To enhance transparency To establish meritocracy To retain top talents To develop employees To increase commitment To improve collaboration To ensure accountability and ownership

Elements of PA:

Goal setting Measures Feed back Performance Rating Performance Pay

Performance Appraisal Process:1) Organizations mission and objectives2) Job analysis3) Determine the purpose4) Determine and set performance standards5) Determine measurement methods6) Determine appraisers and impart training7) Evaluate measurement system8) Conduct appraisal activities


7/12


9) Compare Performance and determine deviation10)Review for errors and appraisal InterviewMethods of PA:

1)Rating Methods: Putting employees on certain pre-defined scale to accessperformance

a) Checklist Method: In this method a list consist of statement about worker and hisbehaviour

Each statement is assigned values depending upon the importance

The rater places a (+) or (-) sign or YES or NO or ? representing as towhether the employee possesses or does not possess the required

characteristics.

Rater can mark as many statements as possible NO restrictions.

Final rating taken as the average of scale values of all statements with +

sign or YES.

Difficult to construct a good check-listSeparate check-list is needed for each job

b) Graphic Rating Scale:Printed appraisal form is used in this process

Form lists traits [like quality & reliability] and a range of job performancecharacteristics [from poor to outstanding or excellent] for each trait.

Points will be used to rate[ 5 point scale]

Rater rates each employee by putting the score that best describes his/ her

performance or trait

Finally all assigned values are totaled

E.g.

Poor Average Good Excellent

Quality of work

Quality of work

Job knowledgeDependability

Attitude

Initiative

Co-cooperativenessLeadership

Emotional maturity

1

1

11

1

1

11

1

2

2

22

2

2

22

2

3 4


8/12


2) Comparative methods: Relay on relative comparison and ranking of employeesperformance based on certain characteristics of performance.

a) Ranking Method: Simplest and oldest method

Supervisor evaluates all subordinates under him on an overall basis andthen ranks them. [1 to 10]

b) Paired Comparison: Derived form ranking method. One trait or characteristic is taken into account and each employee is

compared with other employees on one-onone basis.

Supervisor is given slips containing 2 names & he is asked to tick theone which he considers better.

Total no of pairs that the supervisor has to compare are worked out usingthe following formula:

N (N-1) where

2

N- Total no of employees to be evaluatedEg., 10 employees [10(10-1) = 10(9) = 90 = 45]

2 2 2Hence 45 comparisons has to be made.

No of times a worker is considered better gives or makes his score. With the help of these scores the employees are ranked.

c) Grading Method: Different groups of performance are determined in advance like

Excellent, Very Good, Good, Satisfactory

Employees are placed in any of these grades according to theirperformance

Drawbackrater may rate most of the employees on the higher side oftheir performance.

d) Forced Distribution Method: Evolved to eliminate the central tendency of rating most of the

employees at a higher end of the scale. Supervisor is required to rank all the employees on a 5-point scale from

poor to excellent.

E.g.: Supervisor is forced to spread their employee performance evaluations

in a prescribed distribution[Identify & rank employees are to the following %]


9/12


10 20 40 20 10

- +10% poor

20% Acceptable

30% Average

40% very Good40% Excellent

Supervisor is forced to distribute all employees Automatically employees come under 5 categories Group of individuals are ranked

e) Forced Choice Method: Provides a list of behaviour related statement. [+ ve & -ve] Supervisor is asked to indicated one least one most. Statements carry scored or weighted [not known by the supervisor] Employees with high score are the better, those with low score poorer.

3) Narrative Method:Rely on written statement to indicate the performance level of employees

a) Critical Incidents Method:Focus the evaluators attention on the behaviours that are key in making the

difference between executing a job effectively & ineffectively.

First a list of good & bad job behaviour is prepared. Then group of experts are assign weightage or score these incidents. Based on the rating a check-list of good and bad behaviour is prepared Checklist given for evaluating the workers. Train supervisors to take notes on critical incidents or outstanding

examples of success or failure of the subordinates in meeting the job

requirements.

b) Essay:Technique used for appraising people for professional position.

Rater is asked to write about an individual employees strengths,weaknesses, potential and so on.

Drawback- variability of account, in length & content. Difficult tocompare 2 essay appraisals relating to one persons.


10/12


c) Field Review: If there is reason to suspect rater being bias or when some raters

appear to be using higher standards than others, then essay or

graphic ratings are often combined with a systematic review process. Personal officer meets small groups of rater from each supervisory

unit & goes over each employees rating with them to Identify areas of inter-rater disagreement Help the group arrive at a consensus, Determine that each rater conceives the standards similarly

d) Confidential Report: Manager appraises the performance of the employee based on his

observations, judgments & intuitions & reports it confidentially.

The employee is not allowed to see or discuss the appraisal4) Behavioural Method:a) MBO: Subordinate & superior jointly identify objectives, define individuals

major areas of responsibility in terms of results expected & use these measures of

guides operating & measuring individual contributions.

Elements of MBO Programmes

Goalsetting Performance standards Comparison [actual with the desired] Periodic review

Limitations

Setting Immeasurable objectives

Time consuming

Difference of Opinion [between subordinate & superior]

Lack of trust

b) BARS:Combine elements of Rating scales and critical incidents methods that are

related to specific job dimensions.

oEffective & ineffective job behaviors are describedSteps:

Performance measures for effective job performance are identified clustered intosmall set of key performance dimensions for a given job

Behaviours are identifiedCritical behaviours identified are reclassified to form the definition of job dimension& best ones are kept for further development


11/12


Critical behaviour is assigned numerical scale values [1 to 7] each point indicatinglevel of performance. Results of arranging various scales for difference dimensions of the job, produces aseries of vertical scales [1 for each dimension] measured or anchored by final incidents

Each incident is positioned on the scale according to its mean value.c) HR Accounting

o Cost of involved in HR includes recruitment & selection cost,induction & placement cost, t & d, Comp & Benefits cost, etc

o Contributions include the benefits an organization derives from him/her.

o Both the cost of & contribution of HR are measured & compared inthe method

d) Assessment center Technique:o Various experts use various techniques to do assessment of several

individuals employees

Tools used:1) Psychometric tests: 3 types tests or questionnaires used- aptitude, ability &personality tests these tests are selected keeping in view

Measured objectives

Reliability & validity

Time required for administration

Cost involved2) Interviews: Structured one are used to know about the background, critical

incidents, situational and behavioural event of employees.3) LGD: Small group of employees are given a problem to solve & are instructed to

arrive at a group decision within a specified time format.4) In Basket Exercise: This represents day to day decision making situation which

a manager is likely to face, in the written form from various sources, are given to

the employee to access his activity level, problem solving skills, planning &

organizing skills, time management , delegation, etc.5) Management Games/ Simulation Exercise: A real life situation such as running a

manufacturing operation, stock trading, etc is simulated [ imitated] to the entire

group of employees.

The common factor is the relatively unstructured nature of interactionsamong the participants & the variety of actions that can be taken

It helps to access various dimensions such as strategic planning, team

work, team skills, leadership, analytical ability, etc.6) Role Playing: Method of adopting roles from real life understanding the dynamics

of the role. This method evaluates human relations places & personal attitude &

behaviour in a particular role such as conflict management, leadership skills,

group problem solving, team skills, communication, interpersonal skills, etc.

7) Presentations: On vision, organizational issues, case studies, etc are extensivelyused for assessing employees/ participants.

e) 360 Degree Method


12/12


f) Balanced scorecard Method: It provides a clear idea as to what companies shouldmeasure in order to balance the financial perspective. It is a management system helps organizations to clarify their vision and

strategy & translate them into action.

Provides feedback around both the internal business process & externaloutcomes to continuously improve performance & results.

It is a central list of numbers, which show each key part of an organizationssuccess, such as financials, people, operations, suppliers, customers & support

systems. The members should measure outcomes and factors which influence those

outcomes

g) components of BSC: Perspectives Learning & Growth perspectives Business process perspectives Customer perspectives

Financial perspectives

Potential Appraisal

o It is concerned with career enhancement possibilities of employeeso Evaluating what a person can perform or do is called potential appraisal or

evaluation

o Potential refers to the abilities present but not currently utilized or usedObjectives:

o Promote an employee to higher levels of jobso Assist the organization to allocate jobs among employees as per their

capabilities

Evaluation of Employee Potential:

The potentials of employee can be evaluated and a good PA system can be et up by

the following steps:

o Determination of roles and functionso Determination of Mechanism.

hrd i unit

Documents