MBA 532-Human Resource Development

Punjab Technical University

World over distance Education is fast growing mode of education because of the unique benefits it provides to the learners. Universities are now able to reach the community which has for so long been deprived or higher education due to various reasons including social, economic and geographical considerations. Distance Education provides them a second chance to upgrade their technical skills and qualifications.

Some of the important considerations in initiating distance education in a country like India, has been the concern of the government in increasing access and reach of higher education to a larger student community. As such, only 6-8% of students in India take up higher education and more than 92% drop out before reaching 10+2 level. Further, avenues for upgrading qualifications, while at work, is limited and also modular programs for gaining latest skills through continuing education programs is extremely poor. In such a system, distance education programs provide the much needed avenue for:

z Increasing access and reach of higher education;

z Equity and affordability of higher education to weaker and disadvantaged sections of the society;

z Increased opportunity for upgrading, retraining and personal enrichment of latest knowledge and know-how;

z Capacity building for national interests.

One of use important aspects of any distance education program is the learning resources. Learning material provided to the learner must be innovative, thought provoking, comprehensive and must be tailor-made for self-learning. It has been a continuous process for the University in improving the quality of the learning material through well designed course materials in the SIM format (self-instructional material). While designing the material, the university has researched the methods and process of some of the best institutions in the world imparting distance education.

About the University

Punjab Technical University (PTU) was set up by the Government of Punjab in 1997 through a state Legislative ACT. PTU started with a modest beginning in 1997, when University had only nine Engineering and thirteen Management colleges affiliated to it. PTU now has affiliated

43 Engineering colleges, 56 colleges imparting Management and Computer Application courses, 20 institutions imparting pharmacy education, 6 Architecture institutions, 2 Hotel Management and 12 Regional Centres for imparting M. Tech and Ph. D Programs in different branches of Engineering and Management. During a short span of nine years, the University has undertaken many innovative programs. The major development during this period is that University has restructured its degree program and upgraded syllabi of the course in such a way as to increase the employability of the student and also to make them self-reliant by imparting Higher Technical Education. We at Punjab Technical University are propelled by the vision and wisdom of our leaders and are striving hard to discharge our duties for the overall improvement of quality of education that we provide.

During a short span of nine years, the University has faced various challenges but has always kept the interest of students as the paramount concern. During the past couple of years, the University has undertaken many new initiatives to revitalize the educational programs imparted with the colleges and Regional centers.

Though knowledge and skills are the key factors in increasing the employability and competitive edge of students in the emerging global environment, an environment of economic growth and opportunity is necessary to promote the demand for such trained and professional manpower. The University is participating in the process of technological growth and development in shaping the human resource for economic development of the nation.

Keeping the above facts in mind Punjab Technical University, initiated the distance education program and started offering various job oriented technical courses in disciplines like information technology, management, Hotel Management, paramedical, Media Technologies and Fashion Technology since July 2001. The program was initiated with the aim of fulfilling the mandate of the ACT for providing continuing education to the disadvantaged economically backward sections of society as well as working professionals for skill up-gradation.

The University has over the years initiated various quality improvement initiatives in running its distance education program to deliver quality education with a flexible approach of education delivery. This program also takes care of the overall personality development of the students. Presently, PTU has more than 60 courses under distance education stream in more than 700 learning centers across the country.

About Distance Education Program of PTU

Over the past few years, the distance education program of PTU has gained wide publicity and acceptance due to certain quality features which were introduced to increase the effectiveness of learning methodologies. The last comprehensive syllabus review was carried out in the year 2004-05 and the new revised syllabus was implemented from September 2005. The syllabus once reviewed is frozen for a period of 3 years and changes, if any, shall be taken up in the year 2008. Various innovative initiatives have been taken, which has increased the popularity of the program. Some of these initiatives are enumerated below:

1. Making a pyramid system for almost all courses, in which a student gets flexibility of continuing higher education in his own pace and per his convenience. Suitable credits are imparted for courses taken during re-entry into the pyramid as a lateral entry student.

2. Relaxed entry qualifications ensure that students get enough freedom to choose their course and the basics necessary for completing the course is taught at the first semester level.

3. A comprehensive course on Communications and Soft Skills is compulsory for all students, which ensures that students learn some basic skills for increasing their employability and competing in the globalized environment.

4. Learning materials and books have been remodeled in the self-Instructional Material format, which ensures easy dissemination of skills and self-learning. These SIMs are given in addition to the class notes, work modules and weekly quizzes.

5. Students are allowed to take a minimum of 240 hours of instruction during the semester, which includes small group interaction with faculty and teaching practical skills in a personalized manner.

6. Minimum standards have been laid out for the learning centres, and a full time counselor and core faculty is available to help the student anytime.

7. There is a wide network of Regional Learning and Facilitation Centers (RLFC) catering to each zone, which is available for student queries, placement support, examination related queries and day-to-day logistic support. Students need not visit the University for any of their problems and they can approach the RLFC for taking care of their needs.

8. Various facilities like Free Waiver for physically challenged students, Scholarship scheme by the Government for SC/ST candidates, free bus passes for PRTC buses are available to students of the University.

The university continuously aims for higher objectives to achieve and the success always gears us for achieving the improbable. The PTU distance education fraternity has grown more than 200% during the past two years and the students have now started moving all across the country and abroad after completing their skill training with us.

We wish you a marvelous learning experience in the next few years of association with us!

DR. R. P. SINGH Dean

Distance Education

Dr. S. K. Salwan Vice Chancellor

Dr. S. K. Salwan is an eminent scientist, visionary and an experienced administrator. He is a doctorate in mechanical engineering from the IIT, Mumbai. Dr. Salwan brings with him 14 years of teaching and research experience. He is credited with establishing the Department of Design Engineering at the institute of Armament Technology, Pune. He was the founder-member of the integrated guided missile programme of defence research under His Excellency Honourable Dr. A.P.J. Abdul Kalam. He also established the high technology missile centre, RCI at Hyderabad. He has been instrumental in implementing the Rs 1000-crore National Range for Testing Missiles and Weapon Systems at Chandipore, Balance in a record time of three years. He was director of the Armament Research and Development Establishment, Pune. Dr. Salwan has been part of many high level defence delegations to various countries. He was Advisor (Strategic project) and Emeritus Scientist at the DRDO. Dr. Salwan has won various awards, including the Scientist of the Year 1994; the Rajiv Ratan Award, 1995, and a Vashisht Sewa Medal 1996, the Technology Assimilation and Transfer Trophy, 1997 and the Punj Pani Award in Punjab for 2006.

Dr. R.P. Singh Dean, Distance Education

Dr. R.P. Singh is a doctorate in physics from Canada and has been a gold medallist of Banaras Hindu University in M.Sc. Dr. Singh took over the Department of Distance Education in November 2004 and since then the University has embarked on various innovations in Distance Education.

Due to combined efforts of the department, the RLFCs and Centres, and with active support of the Distance Education Council headed by Dr. O.P. Bajpai, Director University College of Engineering Kurukshetra University the distance education program of PTU is now a structured system which empowers the learner with requisite skills and knowledge which can enhance their employability in the global market. Dr. R. P. Singh is promoting distance education at the national level also and is a founder member of Education Promotion Society of India and is member of various committees which explores innovative ways of learning for the disadvantages sections of society. The basic aim of the distance education programs has been to assimilate all sections of society including women by increasing the access. Reach, equity and affordability of higher education in the country.

HUMAN RESOURCE DEVELOPMENT

MBA-532

This SIM has been prepared exclusively under the guidance of Punjab Technical University (PTU) and reviewed by experts and approved by the concerned statutory Board of Studies (BOS). It conforms to the syllabi and contents as approved by the BOS of PTU.

Copyright Prof. N. Sambasiva Rao, 2008

No part of this publication which is material protected by this copyright notice may be reproduced or transmitted or utilized or stored in any form or by any means now known or hereinafter invented, electronic, digital or mechanical, including photocopying, scanning, recording or by any information storage or retrieval system, without prior written permission from the publisher. Information contained in this book has been published by Excel Books Pvt. Ltd. and has been obtained by its authors from sources believed to be reliable and are correct to the best of their knowledge. However, the publisher and its author shall in no event be liable for any errors, omissions or damages arising out of use of this information and specifically disclaim any implied warranties or merchantability or fitness for any particular use.

Published by Anurag Jain for Excel Books Pvt. Ltd., A-45, Naraina, Phase-I, New Delhi-110 028 Tel: 25795793, 25795794 email: [email protected]

PTU DEP SYLLABI-BOOK MAPPING TABLE MBA-532 HUMAN RESOURCE DEVELOPMENT

Syllabi Mapping in Book

Section I

Section II

Unit 1: HRD: Conceptand Benefits

(Page 3-12)

Unit 2: HRD as a Total System(Page 13-20)

Unit 6: Performance Appraisal(Page 53-67)

Unit 3: Management Developments

(Page 21-29)

HRD: Concept, benefits, pre-requisites, its distinction from HRM, HRD as a total system, modern HRD mechanisms, HRD in India. Development: Analyzing the role for development. Management development: Concept, need, and management development methods. Training: Meaning, role, assessing needs for training, organizing training programmes. Training methods, evaluation of training.

Performance appraisal: Concept, need, objectives, methods, obstacles, designing effective appraisal system, performance appraisal in Indian organisations. Potential appraisal: Concept, need, procedures, requirements of a good appraisal system. Job enrichment: Concept, principles, Steps for job enrichment, Job and Work redesign.

Unit 4: Training: Meaning, Role and Needs

(Page 31-39)

Unit 5: Training: Methodsand Evaluation

(Page 41-49)

Unit 7: Potential Appraisal(Page 69-74)

Unit 8: Job Enrichment(Page 75-82)

Quality of work life (QWL): Meaning, origin, development, and various approaches to QWL, techniques for improving QWL. Quality Circles: concept, structure, role of management, quality circles in India. HRA: Introduction, scope, limitations, methods. Management of careers.

Section III

Unit 10: Quality Circles(Page 93-101)

Unit 9: Quality of WorkLife

(Page 85-91)

Unit 11: Management of Careers

(Page 103-125)

Contents Section-I

UNIT 1 HRD: CONCEPT AND BENEFITS 3

Introduction HRD Concept Features of HRD Benefits of HRD Pre-requisites for HRD HRM and HRD Summary Keywords Review Questions Further Readings

UNIT 2 HRD AS A TOTAL SYSTEM 13

Introduction Systems Approach to HRD Mechanism or Sub-systems of HRD HRD Movement in India Role of Development in Organization Summary Keywords Review Questions Further Readings

UNIT 3 MANAGEMENT DEVELOPMENT 21

Introduction Concept of Management Development Need of Management Development Methods of Management Development Summary Keywords Review Questions Further Readings

UNIT 4 TRAINING: MEANING, ROLE AND NEEDS 31

Introduction Meaning and Role of Training Training Need Assessment Organizing Training Programmes Summary Keywords Review Questions Further Readings

UNIT 5 TRAINING: METHODS AND EVALUATION 41

Introduction Types and Techniques of Training Evaluation of Training Programmes Summary Keywords Review Questions Further Readings

Section-II

UNIT 6 PERFORMANCE APPRAISAL 53

Introduction Concept of Performance Appraisal Need and Objectives of Performance Appraisal Methods of Performance Appraisal Human Resources Accounting Limitations/Errors in Performance Appraisal Improving Performance Appraisal The Post Appraisal Interview Designing Effective System Summary Keywords Review Questions Further Readings

UNIT 7 POTENTIAL APPRAISAL 69

Introduction Concept and Need of Potential Appraisal Procedures of Potential Appraisal System Summary Keyword Review Questions Further Readings

UNIT 8 JOB ENRICHMENT 75

Introduction Job Enrichment Concept and Principles Steps in Job Enrichment Nature of Job and Job Redesign Summary Keywords Review Questions Further Readings

Section-III

UNIT 9 QUALITY OF WORK LIFE 85

Introduction Quality of Work Life Meaning and Development Approaches to Quality of Work Life Techniques for Improving the Quality of Work Life Summary Keyword Review Questions Further Readings

UNIT 10 QUALITY CIRCLES 93

Introduction Quality Circles Concept and Significance Structure and Management of Quality Circles Quality Circles in India Summary Keyword Review Questions Further Readings

UNIT 11 MANAGEMENT OF CAREERS 103

Introduction Important Terms in Career Planning Career Stages How do People Choose Careers Career Anchors Career Planning Career Development Career Management Succession Planning The Indian Scenario Succession Management Summary Keywords Review Questions Further Readings

Unit 1

HRD: Concept and Benefits

Unit 2

HRD as a Total System

Unit 3

Management Development

Unit 4

Training: Meaning, Role and Needs

Unit 5

Training: Methods and Evaluation

SECTION-I


Notes

Punjab Technical University 3

Unit 1 HRD: Concept and Benefits Unit Structure z Introduction z HRD Concept z Features of HRD z Benefits of HRD z Pre-requisites for HRD z HRM and HRD z Summary z Keywords z Review Questions z Further Readings

Learning Objectives At the conclusion of this unit you should be able to understand: z Importance of HRD z Its concepts, advantages z Pre-requisites for its success and also be aware of the differences between HRM and HRD

Introduction The introduction of modern technology necessitates modification in the method of producing goods and services with the help of new and improved tools of machinery, new techniques o utilizing machines and equipments, new materials, alteration in the production design and so on. Since the structure, the organization and the concepts of work are affected, it becomes difficult for the working force to appreciate the consequent improvement of tools and techniques unless their relationship with the work is understood and known properly. Hence, technological change results in decline of less skilled occupations and growth of more skilled occupations as well as less physical effort of persons due to better concentration and knowledge of work in many jobs and occupations. But in some new jobs and occupations serious shortages of qualified persons with improve knowledge and skills has become a menacing problem. As such, it gives rise to imbalances in jobs and occupations in the establishments. A great care is therefore needed to compact these imbalances otherwise the fruits of technological advancement can hardly be enjoyed by the society.

Technology brings along with it a new style of life; it is not possible to build up an infrastructure of technology on the plinth of traditional skills, attitudes, norms and values. The character of technological changes today raises simultaneously more serious problems of adjustment in a large number of areas of mans existence than it has in the past. A high level of aspiration, rational interest, a dynamic personality and an open society are, therefore, quite imperative for technological revolution in the developing countries like India.

Human Resource Development

Notes

4 Self-Instructional Material

One of the most talked about subjects in corporate circles, in recent times, is how to optimize the contributions of human resources in achieving organizational goals and objectives. An efficient and satisfied workforce is the most significant factor in organizational effectiveness and managerial excellence. Systematic investigations in industrial and service organizations have revealed that though individually our workers are as knowledgeable and efficient as their counterparts elsewhere thanks to the sophistication in technical training and selection methods used their collective efforts often fall short of corporate expectations. While part of this shortfall may be due to inadequate commitment and motivation, environmental pressures, attitude of trade unions etc., the contribution of management policies and practices in relation to human, technical and material resources is no less significant.

Experiences in business and service organizations however, indicate that managements, comparatively speaking, bestow more time and attention to policies and systems relating to production, technology, investment, inventory, marketing, etc, than to human resources. Therefore, notwithstanding proven strengths in technical, financial, marketing and materials areas many organisations are not able to achieve as much productivity and effectiveness as they were capable of. Despite swearing by the importance of human resource, man-management problems in these organisations seem to attract much more attention in crisis times than during peace. Compulsions of modern business environment are, however, promoting corporate managements to systematically review their current attitudes, beliefs and policies towards human resources as it contribute most significantly to the survival and growth of organizations.

HRD Concept HRD is the process of helping people to acquire competencies. HRD is concerned with an organized series of learning activities, within a specified time limit, designed to produce behavioral change in the learner. From the organizational context, therefore, HRD is a process which helps employees of an organization to improve their functional capabilities for their present and future roles, to develop their general capabilities, to harness their inner potentialities both for their self and organizational development and, to develop organizational culture to sustain harmonious superior-subordinate relationships, teamwork, motivation, quality and a sense of belongingness. There are a lot of misconceptions about training, education and development functions vis--vis HRD. Essentially, HRD activities are designed to make people effective in their present job position, which is a part of the training function. But when the focus is on a future identifiable job it becomes a part of the education function. For future unidentifiable jobs, i.e., to develop capabilities for a future position or new activities within the organization, which are not very specific at the present stage, it becomes a part of the development function.

The burgeoning Human Resources Field in India is throwing up numerous business models and conflicting facts with the result that HR has become hard to define. It has come to mean diverse things to diverse businesses. Productivity, growth, talent retention, all falls under its purview.

The concept of HRD is not yet will conceived by various authors though they have defined the term from their approach as it is of recent origin and still is in the conceptualizing stage. HRD is not training and development. But many personnel managers and organizations view HRD as synonymous to training and development. Many organizations in the country renamed their training departments as HRD departments. Surprisingly, some organisations renamed their personnel department as HRD departments. Some educational institutions started awarding degrees and diplomas in HRD even though the concept is not yet crystal clear. Leonard Nadler


Notes


formally introduced the concept of HRD in 1969 in a conference organized by the American Society for Training and Development. Leonard Nadler defines HRD as those learning experiences, which are organized for a specific time and designed to bring about the possibility of behavioral change.

Human Resource Development can be defined as:

a) acquire or sharpen capabilities required to perform various tasks and functions associated with their present or future expected roles,

b) develop their general capabilities as individuals so that they are able to discover and exploit their own inner potential for their own and/or organizational purposes,

c) develop an organizational culture where superior-subordinate relationships, teamwork and collaboration among different sub-units are strong and contribute to the organizational health, dynamism and pride of employees.

It is often said that an organizations most important assets are its people, however, this does not stop many organizations failing miserably to get the best out of their employees. The challenge of having the right people in the right place with the right skills and attitudes, people who are willing and able to work to their best to achieve the objectives of the organization, and all at an affordable cost, is common to all organizations.

The times are changing and there is an increasing need to cope with the ever changing forces of competition, the technological onslaught and the growing realization of knowledge management. In this scenario the survival and growth of organizations depends on being able to build and maintain a long-term relationship with the major stakeholders. This is essentially possible by creating a win-win situation for booth the organization and the stakeholders. With this in mind, organizations are increasingly focusing, and rightly so, on the management and development of human resources. The human resource of an organization, which is one of the most important stakeholders, is not only the beneficiary but also one of the critical doers. This has led to a growing awareness that the productive utilization of human resources is the key to overall organizational success. Whether one succeeds, or whether one becomes one of the best managed organizations or whether one exists at all depends on the overall management of human resources and the human resource strategy an organization adopts.

Features of HRD Some of the important features of human resource development are mentioned here for better clarity of HRD and its importance.

z The principal virtue of human resource development is that it is a managerial responsibility.

z It is primarily and all pervasive irrespective of the activity and dynamics.

z It is highly respective and sensitive to technological changes as well as changes in human.

z It sets a target in the growth and therefore exploits future opportunities even in advance making the approach scientific and self-generic.

z It provides for continuous development conceptually and aerially its benefits reflect upon performance.

z Human resource development brings about job enrichment with better planning and evaluation.


Notes


Human resource development (HRD) has become an evolving concept for building work force performance to meet the needs of an organization. The essential elements of HRD are 1. on-going assessment of work force competency needs, 2. activities to fill those needs employee education and training, organization development, quality of work life programs, or other efforts to serve the needs, and 3. evaluation to determine whether the intended purpose has been met. Developing the competence and productivity of the work force, in reality, is a multi-faceted and direct responsibility of management. The quality of human performance is integral to the quality of organization success. And while line management must bear a direct responsibility, HRD success is heavily dependent upon effective use of the growing body of available know-how. The prudent manager would do well, in his or her own interest to get the best available professional HRD support to help build human performance.

Many companies big or small across the world are all groping for answers to the fascinating question of how retain the talented people. The rather rhetorical question, however, set the thinking process of people at the helm of affairs and now convinced about one golden rule in management organizations may invest billions in processes and technology, but what differentiates between good companies and great ones is their willingness to care for people. So what is it about these accompanies that attracts and retains talented people?

McKinsey consultants, who wrote the famous book The War for Talent, have explained the core elements that make up a winning employee value proposition (EVP). An EVP, they say, is like the companys customer value proposition; it is the compelling answer to the question, why would a talented person choose to work here? Each companys EVP will be different, but these are the core elements that managers look for exciting work, a great company, attractive compensation and opportunities to develop. A few more perks will not make the difference between a weak EVP and a strong one. Understanding this is important, as several research studies have shown that 90 per cent of Indian companies have talent retention problems. Make no mistake that most companies are willing to pony up the money for people development, as it is crucial to their success. Most also believe they are doing everything possible to improve performance. But the problem is that most also make the mistake of seeing employees as a mass and assume that policies and processes aimed at the mass will take care of the personal issues as well.

Employees are continuously helped to acquire new competencies through performance planning, feedback, training periodic review of performance, and assessment of the developmental needs, and creation of development opportunities through training, job rotation, responsibility definition and such other mechanisms.

Benefits of HRD There is nothing more exciting, more challenging, than dealing with the strategic dimensions of the Human Resource and its Development. The new economic environment has compelled the leaders and managers of organizations to look outwards to understand the rules of survival in their business; and beyond mere survival to set their organizations on the path of prosperity and growth. Alvin Tofler in his famous book Future Shock very rightly states: Change is the process which pervades our life and it is important to look at it closely, not merely from the grand perspectives of history but also from the vantage point of the living, breathing individuals who experience it. What drive the business in the next millennium are financial resources, information technology and above all, the human element. Anybody who can marshal and master these three forces will be the leader in the


Notes


corporate sector. In any area that does not require physical manufacturing, those who have the people strength and knowledge will lead from the front.

As organizations increasingly operate globally and work to remain competitive, they have realized that the one factor that can give them sustained advantage is their people. This is reflected in the fact that all over the world organizations are transforming the management of their human resources.

Many organization heads say most HR departments fail to measure the effects of people development programmes on the bottom line leading to a common impression that HR is nothing but a sinkhole of costs. But in reality, it is not true. This happens because of lack of proper understanding of the concepts of HRD and its implementation. HRD approach is not simply recruitment and selection, the major part of it development of the competencies of the people to meet the present and future challenges in the competitive world. The importance for HRD in the corporate sector is increasing and every body recognized its role and importance. Lot time and money is being spent for proper implementation of the HRD concepts.

The specific benefits of the HRD are:

1. It provides a comprehensive platform for the development of manpower in the organization.

2. It creates a climate for employees to discover, develop, and use their knowledge for the betterment of the organization.

3. It facilitates to attract, motivate and retain the talented people.

4. It helps to generate systematic information useful to the concern.

5. It creates an environment for better and cordial relationship among the people.

6. It is the humane approach to any problem.

7. There is strategic approach for every aspect and there is greater chance of success.

Pre-requisites for HRD Business and industry today are confronted with an ever-increasing diversity of technology, products and processes. In their concern for growth and profitability, organizations routinely undertake a critical evaluation of these areas. A great deal of time, thought and attention goes into a review of the more tangible resources such as machines and materials, but, surprisingly, the most important resource of them all the human resource- is also generally the most neglected. Employees are frequently thought of as just numbers, an expense head where costs need to be contained.

In much of Indian industry, the work ethos today is a hangover of our colonial past. Labour was viewed with suspicion and the attitude of the management was one of control and discipline, coupled with autocratic decision-making. Management and labour were cast in the role of adversaries, with contact limited to negotiations for long-term settlements once in every 3 or 4 years. A great many organizations have not yet made the effort to shake off these outdated habit patterns. It is little wonder, then, that the relationships still lack trust and each side zealously guards its boundaries of rules and regulations, trying to extract maximum capital out of every opportunity.

Fortunately, there is a growing awareness in Indian industry of the importance of human resources development. As the term suggests, the focus should be on development rather than control. The development, in turn, must take the form of an integrated approach and not merely look at any single facet out of context. Whether it is dealing with workmen staff or managerial staff, there can be no lasting resolution of issues as long as we continue to persist with various value systems borrowed from


Notes


cultures alien to our own. Far more natural and relevant to the Indian culture, and its own value systems, is the paternalistic approach, which can be seen in several families run businesses. In essence, this is an extension of the joint family concept, which has been part of our social fabric for countless generations.

An effective HRD system is perhaps the most important element in organizational effectiveness, which not only ensures present performance but also long-term survival and growth of the organization. While every other resource like technology, capital assets and even finance can be bought if one is willing to pay the right price, the only resource that cannot be bought is motivated human resources. Motivated people will have to be developed and nurtured by managerial competence.

HRD acts as a catalyst in several organizational processes aimed towards keeping the organization profitable and alive. It is an attempt to develop the entire human resource available within the organization to its full potential. It is essentially an enabling process and hence should be less visible and more effective. The level and nature of investments an organization makes on development of human resources directly indicates the level of commitment and the seriousness with which the issues of HRD is looked at in that organization. HRD should aim at maximizing the effectiveness of all the employees both the unionized as well as managerial cadres. Even though there is an enhanced awareness amongst various industries about the importance of HRD, the efforts are focused only on the supervisory level. The impact of HRD so far on the worker level is very insignificant. It is necessary to deglamorise HRD to a large extent so that its role can also be extended to improve the effectiveness of the worker category. Without a capable and highly motivated and committed workforce any amount of effort towards improving the effectiveness of supervisors, in isolation, may prove to be futile.

If HRD is to aim at playing a pivotal role in improving productivity and competitiveness of the organization, it should have a meaningful human resources management system as its base. It should cover the different aspects of the role of HRD manager its roles in strategic planning, performing, developing, motivating, processing, change agent and enabling. If HRD has to play a meaningful role in the companys effectiveness, it should begin with the business plan of the company. Unfortunately, many organizations in the country do not have even a short-term business plan. And even when it does have a business plan, HRD has no role to play in evolving the plan.

In the absence of such a linkage, HRD cannot perform a meaningful role in key activities like manpower planning, career planning, and succession planning and management development. It will then be reduced to a ritualistic role more of an activity oriented function than a result-oriented function within the total organization. One has only to check as to how any HRD personnel ever participate in the strategic planning exercise of a company. This is one of the reasons why HRD professionals do not get the kind of attention they deserve. The importance of HRDs involvement in the companys total planning activity is very vital.

HRM and HRD Modern organizational setting is characterized by constant change relating to environmental factors and human resources. As regards environmental factors, we find changes in the operating organization structure, the network of working procedures, customs or norms, and the economic, political and social patterns in which organisations exist. Moreover, there is constant change in human resources new individuals are being employed with their new ideas and expectations, while the existing work force is constantly changing vis--vis ideas, attitudes and values.


Notes


The human resources are assuming increasing significance in modern organisations. Obviously, a majority of the problems in organizational setting are human and social rather than physical, technical or economic. The failure to recognize this fact causes immense loss to the nation, enterprise and the individual. It is a truism that productivity is associated markedly with the nature of human resources and their total environment consisting of interrelated, interdependent and interacting economic and non-economic, i.e., political, religious, cultural, sociological and psychological factors.

Human resource management is an approach to the management of people, based on four fundamental principles. First, human resources are the most important assets an organization has and their effective management is the key to its success. Second, this success is most likely to be achieved if the personnel policies land procedures of the enterprise are closely liked with, and make la major contribution to, the achievement of corporate objectives and strategic plans. Third, the corporate culture and the values, organizational climate and managerial behavior that emanate from that culture will exert a major influence on the achievement of excellence. This culture must, therefore, be managed which means that organizational values may need to be changed or reinforced, and that continuous effort, starting from the top, will be required to get them accepted and acted upon. Finally, HRM is concerned with integration getting all the members of the organization involved and working together with a sense of common purpose.

HRM is a strategic approach to the acquisition, motivation, development and management of the organizations human resources. It is a specialized field that attempts to develop programmes, policies and activities to promote the satisfaction of both individual and organizational needs, goals and objectives. It is devoted to shaping an appropriate corporate culture, and introducing programmes which reflect and support the core values of the enterprise and ensure its success. HRM is proactive rather than reactive, i.e., always looking forward to what needs to be done and then doing it, rather than waiting to be told what to do about recruiting, paying or training people, or dealing with employee relations problems as they arise. The techniques for the application of HRM will include any familiar functions of personnel mangers, such as manpower planning, selection, performance appraisal, salary administration, training and management development. These will be overlaid by special programmes designed to improve communication systems, involvement, commitment, and productivity.

Human resource development, organization development and industrial relations are three important aspects of Human Resource Management in organisations. Each has developed into specialties. While some organisations have differentiated them and developed distinct roles and role linkages, there is confusion in the minds of many managers on the distinct roles of these functions in the application of principles in practice. This is understandable because a practicing manager needs a set of principles relating to Human Resource Management in totality. And the tendency to use the term HRD loosely to mean different things without clear demarcation of scope and role has further confounded the confusion.

Even the professional bodies have added to this confusion by using the term HRD for training, human resources for personnel, development in place of management. Conferences, seminars and training programmes indiscriminately use the term HRD for different aspects like training, performance appraisal and career planning, industrial relations or manpower planning. In some organisations, training department or personnel department has been renamed as HRD department, without any changer whatsoever in their roles, scope of work or responsibilities. This has disillusioned the line managers who expected greater contribution from such newly designated HRD departments. It is then no wonder that many consider HRD as old


Notes


wine in new bottle. The disappointment is no less in those training or personnel managers who were redesigned as HRD managers, but find that in substance, their role land functions did not change and continue to do the same routine jobs as before. The expectation that they might be able to contribute to improving employee competencies, their level of motivation and involvement, and help the process of organization growth has not been realized.

There are a number of organisations that have realized the need for focusing attention on human resources as the most important of resources and took steps to developing this resource to achieve higher levels of productivity and efficiency. Such organizations have organized HRD departments, with strategic role for HRD function, defined HRD roles and linkages with other key functions. In such organizations, HRD staff work with a missionary spirit, they do not lose sight of the organization goals, and they linked HRD goals and find innovative methods to achieve these goals. There is need for greater clarity on the scope of human resources function and in particular HRD. The HR function in an organization is an all-encompassing function. It should include everything that has to do with people their recruitment, induction, retention, welfare, appraisal, growth, training, skill development, attitudinal orientation, compensation, motivation, industrial relations, separation, etc. HRD is an important and complex part of the HR function. It is important because it aims at improving the competencies of people, their growth and development, their role and function and their motivation. If the growth and development of employees are linked to the growth of the organization, it is in this linkage that HRD becomes complex, because one cannot be achieved without the other.

As the financial and strategic role of HR function increases, the old stereotypical personnel function as merely administrative and transactional rather than an integral part of business breaks down. Within the HRM, there are two major activities; the first is concerned with the recruitment, selection, placement, compensation and appraisal of the human resources, more commonly termed as Human Resource Utilization function. The other group of functions is directed towards working with the existing human resources in order to improve their deficiency and effectiveness. Such activities are also designed to enable the existing members of the organization to assume new roles land functions. These activities are concerned with Human Resource Development. A definite model of the HR function no longer exists. Every organization is unique and one organizations model will not work for another. It is based on the size, the structure, the industry philosophy and nature of business. In an era when many companies are decreasing long-term relationships and commitments to employees, the role of the HR function has increased substantially. Employers understand that they must manage competitive and creative HR programmes as part of long-term strategy to retain their edge in the market place and personnel/human resource management has been replaced by human resource development.

Student Activity

Assume that you are a HR manager, how can you professionalize the traditional organization by giving importance to human resource in the organization.

Summary Experiences in business and service organizations however, indicate that managements, comparatively speaking, bestow more time and attention to policies and systems relating to production, technology, investment, inventory, marketing,


Notes


etc, than to human resources. Therefore, notwithstanding proven strengths in technical, financial, marketing and materials areas many organisations are not able to achieve as much productivity and effectiveness as they were capable of. Despite swearing by the importance of human resource, man-management problems in these organisatins seem to attract much more attention in crisis times than during peace.

The HR function in an organization is an all-encompassing function. It should include everything that has to do with people their recruitment, induction, retention, welfare, appraisal, growth, training, skill development, attitudinal orientation, compensation, motivation, industrial relations, separation, etc. Human resource development, organization development and industrial relations are three important aspects of Human Resource Management in organisations. Each has developed into specialties.

To achieve the objective of human resource development in the country, newer and better functional institutions have to be thought of and worked out. These institutions must take into account the changing needs and aspirations of the people. The educational offering needs should be concentrated to develop knowledge and skills and to change the attitudes and values among the people to bring about changes in a meaningful manner. Individual should be guided properly by the universally acceptable rational norms and principles with clear-cut ideas about the technological changes and innovations. They should also be made to realize that any slackness on their part would seriously jeopardize the efforts being made for the upliftment of the people in the country. Efforts should also be made to remove regional imbalances, economic and social inequalities and to create new elite committed to the norms and value of the rational objectives. This is the clear role of the HRD department to create a culture to improve the individual and organizational effectiveness.

Human resources management deals with procurement, development, compensation, maintenance and utilization of human resources. HRD deals with development of human resources for efficient utilization of these resources in order to achieve the individual, group and organizational goals. Thus the scope of HRM is wider and HRD is part and parcel of HRM. In fact, HRD helps for the efficient management of human resources. The scope of HRD invades into all the functions of HRM.

Keywords Human Resource Management: Activities designed to provide for and coordinate the human resources of an organization.

Human Resource Development: It is a process by which the employees of an organization are helped to help themselves and the organization.

HRD Concept: HRD is the process of helping people to acquire competencies.

HRM Approach: HRM is a strategic approach to the acquisition, motivation, development and management of the organizations human resources.

HR Function: The HR function in an organization is an all-encompassing function.

HRM Functions: Human resources management deals with procurement, development, compensation, maintenance and utilization of human resources.

Scope of HRD: The scope of HRD invades into all the functions of HRM.


Notes


Review Questions 1. Discuss the importance of the HR function.

2. Define HRD and its importance.

3. Differentiate the HRM and HRD concepts.

Further Readings French Wendell L: Human Resource Management AIPD, Chennai, 1997

Werther William B, Jr and Keith Davis: Human Resources and Personnel Management, McGraw-Hill, Inc, New Delhi, 1993

Bhattacharyya, Dipak Kumar: Human Resource Management, Excel Books, Delhi, 2006

Sharma, AM: Personnel and Human Resource Management, Himalaya Publishing House, Mumbai, 2005

Saiyadain Mirza S: Human Resource Management, TMH, New Delhi, 1988

Dwivedi, RS: Managing Human Resources Personnel Management in Indian Enterprises, Galgotia Publishing Company, New Delhi, 2001


Notes


Unit 2 HRD as a Total System

Unit Structure z Introduction z Systems Approach to HRD z Mechanism or Sub-systems of HRD z HRD Movement in India z Role of Development in Organization z Summary z Keywords z Review Questions z Further Readings

Learning Objectives At the conclusion of this unit you should be able to understand: z Importance of systems approach to HRM and HRD, z Various mechanisms of HRD. z Importance and growth of HRD in India z The role of development in organisations

Introduction Today, the HR function has a more strategic role. A changing business environment can influence the outcome of current operations, stakeholders and corporate strategy as a whole. The HR function plays an important role in viewing and integrating business opportunities, stimulating employees, developing employee strengths and creating corporate teams that share the companys vision and translate this concern into profit.

For employers the value of the HR function lies in the bottom line. Greater productivity, higher quality, better customer service, positive employee relations and lower costs are among hundreds of factors that typically contribute to higher profits. Such factors are often directly improved by innovative and effective HR practices. Historically, businesses would account for HR functions as an expense and learning as a depreciable asset. Today when we are talking about value addition from every process and function, HR is viewed as an investment that can lead to future exponential gains, which was not the case earlier. What underpins the success of organisations is their ability to add value to the inputs they use. Adding value in this sense is the central purpose of business activity. A commercial organization, which adds no value whose output is worth no more than the value of its inputs in alternative uses has no long-term rationale for its existence. Many surveys have revealed that the managements perceive that the value addition by the HR function in their organization will increase in the future.


Notes


Systems Approach to HRD Possibly no century in the history of human civilization has seen as many changes as the twentieth. Change is not a contemporary phenomenon. It is inseparably associated with the passage of time and human enterprise. The advent of the industrial age may well be termed the machine age. Complex machines revolutionized the way people worked. The machine age not only changed the way people lived and worked but also how they thought about work. Performance criterion began to undergo radical changes.

A large number of scientists such as Ealton Mayo, Rothlieschberger, Merton, Maslow, Argyris and others viewed organisations as a complex of interpersonal relationships. They placed emphasis on human behaviour as the cornerstone of organizational management. The machine was only as good as the man behind it. Gradually it was felt that neither the man nor the machine but the man-machine system and its inter-linkages with other systems determined productivity. System thinking is base on the principles of synthesis rather than analysis. Analysis is the process of braking down a problem into its most elementary parts. Solutions are then found to each individual part. The results though were not wholly satisfactory. In spite of so many unit solutions, at the organizational level the problems could never be solved entirely. The sum of part solutions was never the ideal solution of the whole.

It was the application of such synthesis oriented thinking to the organization, which has placed the human resource in a holistic perspective. Men do not work in isolation of other resources in the corporation. Human resource development is not merely the study of human beings and their interpersonal problems. It needs to be considered within the organizational perspective. The organization is part of an industrial context. This in turn is part of the national economic scenario. This again is a part of the global changes. The impact of all those changes creates new challenges for the human resource. The role of HRD is to enhance the abilities of human being to meet these challenges. To determine the precise role of HRD, it is necessary to examine the various systems with which an organization reacts and within which it exists.

With the HR function moving from its former labour-relations role to become a true business partner and the need to balance its day-to-day responsibility with the key to become strategic partners in corporate management, a critical need has emerged. That is to develop a new set of competencies for HR professionals. These competencies need to centre on increased strategic thinking and more effective communication with various customers. It is imperative that as the HR function faces the challenge of having to attract, retain and develop the best talent, it should be placed in its proper strategic perspective.

Human resources management is the term increasingly used to refer to the philosophy, policies, procedures, and practices related to the management of people within an organization. If we consider HRM as a system, HRD is one of the subsystems. HRM can be viewed as process-systems. The significance of process-systems view is that it:

z takes into account the interdependence of all aspects of human resources management

z recognizes the relationship between human resources activities and organizational goals.

A process is an identifiable flow of interrelated events moving toward some goal, consequence, or end. An example in human resources management is the staffing process, a flow of events that results in the continuous filling of positions within the organization. These events will normally include such activities as recruiting


Notes


applications, making hiring decisions, and managing career transitions such as transfers and promotions.

A system, on the other hand, is a particular set of procedures or devices designed to control a process in a predictable way. The staffing system of a given organization, for example, might include such devices and procedures as application blanks, interviews, reference checks, a six-month probationary period, a procedure for posting job openings with the organization, and procedures for applying for transfer. Thus, the term process refers to a combination of events that leads to some end result, and the term system identifies specific procedures and devices used to control those events. In essence, we can mention some of the important process-systems of HRM:

z Human resource planning

z Job and work design

z Staffing

z Training and development

z Performance appraisal and review

z Compensation and reward

z Employee protection and representation

z Organization improvement

To effectively manage these processes, human resources systems are planned, developed, and implemented through the combined efforts of all managers and human resources specialists and frequently all employees in an organization. Overall, the systems are intended to achieve organization-wide goals and contribute to organizational effectiveness and productivity.

HRD is concerned with the peoples dimension in the management of any organization. HRD is a continuous process comprising the function of acquisition, development, motivation and maintenance of human resources. The objective of any HRD system and process is to build a proactive organization and create an enabling environment that seeks not to respond or react to change but to create change and dynamism.

When activities are related, a system exists. A system consists of two or more parts working together as an organized whole with identifiable boundaries. For example, car is a system composed of the subsystems engine, transmission, radio, and the like. A human body is a system composed of respiratory, digestive, circulatory, and other subsystems. Human resource activities form an interconnected system with boundaries. Thinking in terms of systems is useful because it enables one to recognize the interrelationships among parts. Systems thinking also require recognition of the systems boundaries, which mark the beginning of a systems external environment. Because most systems are open systems, that is, systems that are affected by the environment, the environment is an important consideration. Organisations and people are open systems because they are affected by their environments. Systems are organized ways of making things happen. A system must be imbued with spirit and be governed by norms, values and rules. While all these can be part of a system, they cannot replace the system itself. For example, an HRD spirit is essential for effective implementation of HRD. Without spirit, no one can be committed to development.

The purpose of any HRD system is broadly to build the competencies and/or commitment of individuals, dyads, teams and the entire organization as a whole through a variety of instruments. Its objective also is to build a lasting culture so that the employees learn and give of their best on a continuous basis. Culture can be


Notes


defined in terms of values and norms. The instruments available for an organization are put into sub-systems and become HRD systems or sub-systems. Some of the sub-systems of HRD are mentioned here.

Mechanism or Sub-systems of HRD Techniques of human resources development are also called HRD methods, HRD instruments, HRD mechanisms or HRD sub-systems. They include:

z Training

z Performance appraisals

z Potential appraisals

z Rewards and recognitions

z Career planning and counseling

z Employee welfare and quality of work life

z Communication

z Organizational Development

z Role clarity

z Team building

Training: Training is linked with performance appraisal and career development. Employees generally are trained on the job or through special in-house training programmes. Some employees may be deputed for outside training to enhance, update, or develop specific skills. This is especially valuable if the outside training can provide expertise, equipment, or sharing of experiences that are not available within the organization. Managers and employees who attend in-house or outside training events are also expected to submit suggestions concerning any changes they would like to be implemented on the basis of their new knowledge.

Performance and potential appraisal: If the performance of people is to be enhanced, their performance needs to be periodically evaluated. For this purpose, performance appraisal interviews between the manager and the subordinate are to be conducted at regular intervals. Potential appraisal means the possibility of career advancement. A dynamic and growing organization needs to continuously review its structure and systems, creating new roles, land assigning new responsibilities.

Rewards and recognitions: Recognizing and awarding employee performance and behavior is an important part of HRD. Appropriate honors and awards not only recognize and motivate employees, but also communicate the organizations values to the employees. In HRD systems, innovations and use of capabilities are awarded in order to encourage the acquisition and application of positive attitude and skills.

Career planning: The HRD philosophy is that people perform better when they feel trusted and see meaning in what they are doing. People want to know the possibilities for their own growth and career opportunities. As managers have information about the growth plans of the organization, it is their responsibility to transmit information to their subordinates and to assist them in planning their careers within the organization. In the HRD system, long-term corporate growth plans are not kept secret but are made known to the employees.

Organization Development: This function includes research to ascertain the psychological health of the organization. This is generally accomplished by means of periodic employee surveys. Efforts are made to improve organizational health


Notes


through various means in order to maintain a psychological climate that is conducive to productivity. OD specialists also help any department in the organization that has problems such as absenteeism, low production, interpersonal conflict, or resistance to change.

Employee welfare and quality of work life: Employees at lower levels in the organization usually perform relatively monotonous tasks and have fewer opportunities for promotion or change. In order to maintain their work commitment and motivation, the organization must provide some welfare measures such as medical insurance, disability insurance, and holidays. Quality of work life programmes generally focus on the environment within the organization. HRD systems focus on employee welfare and quality of work life by continually examining employee needs and meeting them to the extent feasible.

The detailed discussion of the each of these subsystems will be taken in the consequent lessons. The sub-systems can be grouped for administrative convenience and also to ensure synergy in terms of value. For example, induction training and training get normally grouped to form the training system. The training system attempts to ensure that the instrument of training is used efficiently, cost-effectively, appropriately and not misused. It becomes a system by formulating its own objectives, elements, inputs, output and process. It is the inputs and the output of the systems/sub-systems that link it to the other subsystems.

HRD Movement in India India has the second largest pool of human resources in the world. According to the World Development Report, by 2020, India will be the 4th largest economy of the world in terms of GDP with the annual GDP growth rate pegged at 8.5 to 9%. This would raise the rank of India from around 11th today to 4th from the top in terms of GDP among 207 countries of the World. Thus India is witnessing its greatest growth story ever. The Indian soil is flooded with opportunities waiting to be grabbed and harnessed.

The most important question is who will drive India to achieve such a mammoth agenda. Who will ensure that India is able to achieve its potential? The vision of India in 2020 is predicated on the belief that the HR is the most important determinant of overall development. This is because the business environment will become increasingly competitive, complex and demanding and the industries that will be driving growth will all be powered by knowledge. Thus, the years to 2020 will see a substantial new agenda unfold for the HR function in India. The roles of the HR managers are going to change between now and 2020. HRM must undergo a massive transformation if it is to survive inevitable business pressures and thus the HR practitioners need to identify the skills and attributes that it will be need to respond to those changes.

Goldman Sachs report predicted Indias emergence as the worlds third largest economy by 2035. The human potential that can be utilized in our country is mind-boggling. There is no doubt that both the agriculture and the industrial sector in the country need expansion and improvement. Industry needs rapid expansion to manufacture the core and consumable products. It can certainly make use of available manpower in the country. But the greatest possibility of expansion lies in the service sector.

India has witnessed sweeping changes in its ideological framework in the two and half decades. Although the winds of economic liberalization have been blowing across the world since the beginning of 1980s, they acquired stormy proportions with the collapse of communism, first in Eastern Europe and then in Soviet Russia. India


Notes


took its own time to respond to the changes. Even when it did, one could argue that it was not so much as a strategic change of direction but as a panic response to certain economic realities which pushed the country on to the edge of bankruptcy. Far-reaching changes are being contemplated in managing human resources. The 50s and 60s, the halcyon decades of socialism, put emphasis on employment, welfare and growth and the commanding heights of economy were to be captured through the public sector. Government and the public sector became the biggest employers and they account for over 60 per cent of employment in the organized sector today. Massive amounts were invested in Human Resource Development, almost as an end in itself. While the government loaded more and more social, economic and political objectives on PEs, the employees within sought expansion as a means of their own personal growth in career and prospects. The upshot of all this is that HRD as a movement began in the public sector land the decline of the latter, which is high in the agenda of new economic policies, may halt the momentum. Indian managers must demonstrate that they can take honest hard work from a well paid, qualified and secure workforce.

In India, a professional outlook to HRD began only in 1970s, even though the HRD processes might have existed to some extent in India earlier also. Larsen and Toubro was the first company to design and implement an integrated HRD system. Later on, this professional outlook to HRD spread to other organisations in the country. State Bank of India the single largest Indian bank and is associates decided to use the Integrated HRD systems approach and decided to create a new HRD department. Since then, by the mid-80s a large number of organizations in India had established HRD departments. By the mid-80s, HR had become an accepted role and most organizations had changed their personnel, training and other related functions to HRD. Some had differentiated human resources development from human resources departments and some had not. However, HRD has come to mean new expectations, a new body of knowledge and a new function. Number of leading educational institutes came forward to start courses on HR/HRD and research degrees. Number professional bodies shifted or started focusing on HRD philosophy in the country.

Demand for Human resource specialists has increased in industry and other organisations with rising complexity in managing people. Understanding the people on the job has assumed centre stage of late. This is due to the need of employers to keep the workforce satisfied for improving productivity and eliminating loss of man-hours for any reason, whether due to work stoppages of any kind or even due to accidents. Development of the service industry like hotels, tourism, education and entertainment, etc., has also resulted in the demand for trained HR managers. Entry of MNCs into the country resulted in intense competition for the Indian industry and CEOs are attaching more importance to people management. People power being considered the fountainhead of all ideas; organisations are making better use of human resource for competitive advantage.

Role of Development in Organization Human resource development is the approach that enables people by enhancing capacities to meet their needs. The context of human resource development is then physical, emotional and spiritual needs of people. The holistic approach however proposes that HRD has to be placed in the global context to make sense in todays world. Economic alliances are altering the dynamics of trade and commerce. The life cycle of technology gets shorter and shorter. Proliferation of information technology and telecommunications has changed the styles of business functioning.

HRD plays a crucial role in preparing and developing people to meet the external challenges, so that the organization remains in a state of dynamic equilibrium, within


Notes


and without. To cope up to the global standards and keep pace with them, Indian corporation need to understand and invest in R&D. HRD department has to create the appropriate climate for R&D to function effectively. HRD professionals should visit scientific institutes and make regular presentations on the company, its R&D facilities and career opportunities. HRD plays a crucial linking role in convincing top management as well as keeping communication channels open between them and the R&D professionals. Flexi-timing and other informal rules are created to give them enough room. HRD may conduct regular interviews with professionals and analyze their thought trends regarding the company and its work atmosphere.

The corporate mission is like a standard for the organization and the effective organization tries to get all its employees to take pride in it. HRD department has a major role in formulating the corporate mission. Through tier-by-tier exercises, they collect information on values, attitudes, aspirations and ambitions of employees about the company. HRD department, which has the requisite peoples knowledge and tools, has to make an important contribution in this planning exercise. HRDs role in an organization is multifaceted. The top management of the company is also a part of the human resource. HRD prepares people not only to handle their tasks effectively but also to represent the organization to the outside world in professional or social capacities. HRD plays a vital role in choosing and placing the right candidate with right capabilities, which leads to higher productivity. HRD also creates mechanisms for identifying ineffective employees and developing them. HRD managers play different roles like planning, decision-making, leadership, coordination and other behavioral ones for the growth and development of the organization.

Student Activity

Take any organization and discus its HRD mechanisms and their contribution for the organizational effectiveness.

Summary With the HR function moving from its former labour-relations role to become a true business partner and the need to balance its day-to-day responsibility with the key to become strategic partners in corporate management, a critical need has emerged. That is to develop a new set of competencies for HR professionals. HRD is concerned with the peoples dimension in the management of any organization. HRD is a continuous process comprising the function of acquisition, development, motivation and maintenance of human resources. The objective of any HRD system and process is to build a proactive organization and create an enabling environment that seeks not to respond or react to change but to create change and dynamism. When activities are related, a system exists. A system consists of two or more parts working together as an organized whole with identifiable boundaries. The purpose of any HRD system is broadly to build the competencies and/or commitment of individuals, dyads, teams and the entire organization as a whole through a variety of instruments.

HRD in India has a rich history and has come a long way in the last two decades. Liberalization of the economy and its movement towards globalization has brought in new challenges for Indian business in terms of business strategies, technology, and quality concerns cost of effectiveness, management systems, and so on. All these, in turn, have brought new challenges for the human resource function. If HRD was promoted as a responsibility of CEOs and the top management in the eighties, it has become a business necessity in the nineties. In the post-liberalization period, with several businesses being threatened by global competition, the focus of HRD has shifted to establishing direct links with business improvement. Hence, business


Notes


survival has become a significant and a non-negotiable goal and all HRD efforts have to be redirected towards business goals.

Keywords Open system: An open system is one that is influenced by, and is constantly interacting with, its environment.

System thinking: System thinking is base on the principles of synthesis rather than analysis.

Analysis: Analysis is the process of braking down a problem into its most elementary parts.

Solutions: Solutions are then found to each individual part.

Process: A process is an identifiable flow of interrelated events moving toward some goal, consequence, or end.

System: On the other hand, is a particular set of procedures or devices designed to control a process in a predictable way.

HRD Techniques: Techniques of human resources development are also called HRD methods, HRD instruments, HRD mechanisms or HRD sub-systems.

Training: Training is linked with performance appraisal and career development.

Performance and potential appraisal: If the performance of people is to be enhanced, their performance needs to be periodically evaluated.

Rewards and recognitions: Recognizing and awarding employee performance and behavior is an important part of HRD.

Career planning: The HRD philosophy is that people perform better when they feel trusted and see meaning in what they are doing.

Organization Development: This function includes research to ascertain the psychological health of the organization.

Employee welfare and quality of work life: Employees at lower levels in the organization usually perform relatively monotonous tasks and have fewer opportunities for promotion or change.

Review Questions 1. Discuss the systems concept of HRD.

2. Explain various sub-systems of HRD.

3. Briefly discuss the HRD movement in India.

4. Discuss the role of HRD department.

Further Readings Bhattacharyya, Dipak Kumar: Human Resource Management, Excel Books, Delhi, 2006

Sharma AM: Personnel and Human Resources Management, Himalaya Publishing House, Mumbai, 2005

Saiyadain Mirza S: Human Resource Management, TMH, New Delhi, 1988

Dwivedi, RS: Managing Human Resources Personnel Management in Indian Enterprises, Galgotia Publishing Company, New Delhi, 2001


Notes


Unit 3 Management Development

Unit Structure z Introduction z Concept of Management Development z Need of Management Development z Methods of Management Development z Summary z Keywords z Review Questions z Further Readings

Learning Objectives

At the conclusion of this unit you should be able to understand: z Importance of management development z Basic concepts, and the need for development and also know the various methods of

development

Introduction The managers or executives are the most important and valuable assets of an organization. Their development has become one of the most important and complex tasks of human resource management. Since World War II, tremendous emphasis has been laid on the development of executive talent in the field of management. The dramatic change in the area of management development has been named as Management Revolution. It has now been well recognized that qualified executives needed throughout the industry and trade do not just emerge from labour force without consciously planned action on the part of the organization. Good organizations select the talented employees and develop them to have adequate inventory of management skill for use in the future to achieve the desired objectives of the organization.

The process of development and training are often confused. Training means learning the basic skill and knowledge for a particular job or a group of jobs and there is no choice with the employer whether to train or not. The only choice is that of the method to be employed. It occurs as a result of controlled external stimulation but development takes place when the individual is internally motivated. Development means self development and organization is only to provide the necessary conditions for the development. The initiative for development would be taken by the individual himself. Moreover, it develops the overall personality of the individual while on the other hand; the training programme seeks to develop the skills and knowledge for a particular job.

The planning of management development programmes deserves the utmost attention. At the very outset, objectives of the programme should be defined. Specifically, these programmes purport to bring managers up-to-date in respect of


Notes


technological land scientific advancements, provide knowledge of business responsibilities develop a broader perspective and provide understanding people. Each organization must design its own programme to suit the climate of the firm and the needs of the organization. Management development programmes should be carefully evaluated with a view to determining effective methods, procedures and devices. Attempts should be made to assess the extent to which these programmes have accomplished the objectives and needs.

Concept of Management Development The training and development plans aimed at developing talents to perform effectively in the present and future higher levels on more challenging work situations. The T&D activities are the techniques of encasing on the human capital whose potential is much more than any other resources in the organization. The rapid increase in the size of the organization and the technological advancement has resulted in delegating the authorities and responsibilities to the supervisors and managers.

Management development is more future oriented, and more concerned with education, than is employee training. By education, we mean that management development activities attempt to instill sound reasoning processes, i.e., enhance ones ability to understand and interpret knowledge rather than imparting a body of serial facts or teaching a special set of motor skills. Development, therefore, focuses more on the employees personal growth. Successful managers have analytical, human, conceptual, land specialized skill. Training per se cannot overcome a managers or potential managers inability to understand cause-and effect relationships, to synthesize from experience, to visualize relationships, or to think logically. Therefore, management development is predominantly an education process rather than a training process.

In contrast to what is being stated above, certain activities that managers engage in are programmable, and training can be helpful. Managers need good listening skills, interviewing competence, and the ability to read, analyze and classify types of employee behavior. Training can improve these types of skills. Unfortunately, effective management requires considerably more than the acquisition of any specific or specialized skills. For the most part, therefore, the methods of developing executives that will be considered are educational and are intended to foster the managers analytical and conceptual abilities.

The need for management development has been keenly felt since the beginning of this century. Earlier, only a few chosen persons were picked up to fill the key posts, but now business and industry concentrate on the development of all those who are in management positions, or who are fresh from management institutions and have a potential for development. If management development programmes are not evolved, the managerial personnel would become obsolete.

Management Development Process Management development is concerned with developing the experience, attitudes, and skills necessary to become or remain an effective manager. To be successful, it must have he full support of the organizations top executives. Management development should be designed, conducted, and evaluated on the basis of the objectives of the organization, the needs of the individual managers who are to be


Notes


developed and anticipated changes in the organizations management team. The total management development process is being explained here:

1. Defining organizational objectives

2. Appraisal of present managerial talent

3. Creating a management skill inventory and succession plan

4. Estimate the probable changes in the management team

5. Systematic analysis of the specific management needs and assessment

6. Establish the management development objectives

7. Design the management development programmes

8. Evaluation of programmes systematically

Objectives of Management Development After the management development needs of the organization have been determined, objectives for the overall management development program and for individual programs must be established to meet those needs. Both types of objectives should be expressed in writing and should be measurable. The way the training objectives are being set and in the same way management development objectives can be categorized within three broad areas: instructional, organizational and departmental, land individual performance and growth. The primary or continuing objectives of management development are as follows:

z To improve the overall knowledge and conceptual and decision making skills for managers

z To ensure the optimum utilization of managerial resources of the organization

z To make executives as change agents in the change process

z To create and provide the various opportunities to satisfy the executives career ambitions

z To make the executives up to date with the latest knowledge to avoid the obsolescence

z To create a good succession planning to avoid the future crises

z To develop the managers at all levels

z To broaden the outlook of the executive regarding his role position and responsibilities

z To stimulate creating thinking

z To understand the problems of human relations and improve human relations skills

z To increase the cohesiveness among the executive group

z To understand the ever changing economic and technological changes

Need of Management Development In their search for building competitive advantage corporate bodies, today, underpin their core competencies. In other words, they centre core competences for building competitive advantage. Governmental policy on gradual liberalization/deregulation ever since the 1980s has brought in a distinct paradigm shift among entrepreneurs to


Notes


meet the emerging challenges of the market-led economy. Employers have felt the need to educate their contemporary managers on how to be effective on the job to meet ongoing challenges. Some organizations like Wipro, the computer giant have a detailed leadership; development programme for its potential managers, to convert them into more successful managers. Some of these managers also take up positions as CEOs in industry. Management development is taken as an essential strategic function of contemporary CEOs and directors of organisations in the best interest of the business of the company. People are treated as the most valuable capital of every organization. Managers, being the active components in organizational strategy, exploit and integrate the competencies skill, knowledge, technology, and brand/operational systems to organizational benefit. And, in order to define, create and harness the resources, a manager needs to have a combination of personal competencies of a high order. Creating or developing the combination of competencies is the function of management development.

Organisations need managers of a certain type with certain skills and competence, which are normally acquired through proper training and developmental interventions. Entrepreneurs look for candidates who can fit into the job. It is quite possible that those who have come up through their own efforts/personal trait/experience may be able to partially meet the specifications of the job, in the context of the contemporary search for talents. The search for talents is like a war on talents and employers want to take the best of the lot. The situation is highly competitive. In the backdrop of the contemporary competitive market scenario, it only goes to establish that a managers position calls for technical knowledge/skill and so certain competencies can be acquired through training and management development related activities to fill in the gaps. Managers, therefore, definitely need to bridge the gaps; to enrich their experience and give them the training needed to perform as effective managers. Managers are professionals and for that they need professional training and expertise.

Some of the specific reasons for the management development programmes are:

z To orient the non-managerial people with managerial skills

z To meet the intensive competition where requires talented managerial cadre to evolve strategies to survive

z To give knowledge in multi-skills

z To create awareness of the changes in view of entry of MNCs

Needs Assessment Every organization has physical, financial, and human resource needs. Needs relate to what the organization must have to achieve its objectives. A fundamental need of any organization is the need for an effective management team. One method of meeting this need is the use of a well-organized management development program. However, before management development activities are undertaken, the specific development needs of the managers in the organization must be determined. Thus needs assessment is a systematic analysis of the specific management development activities the organization requires to achieve its objectives. The management development needs of any organization result from the overall need of the organization and the development needs of individual managers.

Basically, four methods exist to determine management development needs: training needs survey, competency studies, task analysis, and performance analysis.

z Training needs survey focuses on the knowledge and skills required in performing the job.


Notes


z Competency studies examine the competencies required in performing the mana

MBA 532-Human Resource Development

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