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 Definition 3) Global HRD Definition Concept: HRD = Human resource + Development Human Resource-> people with talents and skills available to an organization as potential contribution Development-> A process of active learming from experience leading to systematic 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 Equity Employability 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 Page 1

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 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 inventive Wage plans Incentive 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- observed sound base for systematic management of HR as early as 4th century B.C. Prior to Indus Revolution- Slavery- Serf deem-[an agricultural laborer who was tied 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 from cottage sysor home centered production system] During WWI [1917] great importance were given to PM functions by business expansion, 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.

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HRD as a separate Discipline: 1947 Kurt Lewins studies of behaviour of small groups & setting up of National Training Laboratories- foundation for HRD Profession- which till late 1940 was the domain of psychiatrists, psychologists, counselor, nurses & furthered concepts of human relation training & the experiential approach. Participants in T-groups identified problems, acquired the skills and also actively collaborated in problem solving process. T- Groups leaders unlike traditional instructors, became facilitators & focused on how individuals relates to, interacts with other individuals & groups, trained on leadership & 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- Published by 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) Health 2) Education 3) Employment 4) Actualization

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HRD at Micro Level: * Organizational behaviour-HRD [in the context of organization & individual self]. * 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 falls HRD subsystems [Eg: HRD Depts., appraisal systems] HRD processes [Eg: Role clarity, Collaboration] Ultimate outcome more 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

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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 process 2) Demand forecasting Forecasting the demand for employees at various points in future. Forecasting the demand for employees is based on the information about the 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 trends or productivity ratios. The Organization must formulate a clear- cut promotion policy Existence of mechanism to give feedback to the employee on his potential assessments. Finally the organization must link its potential appraisal system with various other sub-system of HRD.

Methods of forecasting Bottom up techniques Delphi techniques Nominal group technique Ratio- analysis

Major considerations in forecasting Absenteeism Retirement Succession planning Technology upgrading N ARUNAGIRI/ASST PROFESSOR/VT ARTS COLLEGE Page 5

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 objectives 2) Job analysis 3) Determine the purpose 4) Determine and set performance standards 5) Determine measurement methods 6) Determine appraisers and impart training 7) Evaluate measurement system 8) Conduct appraisal activities N ARUNAGIRI/ASST PROFESSOR/VT ARTS COLLEGE Page 6

9) Compare Performance and determine deviation 10) Review for errors and appraisal Interview Methods of PA: 1) Rating Methods: Putting employees on certain pre-defined scale to access performance a) Checklist Method: In this method a list consist of statement about worker and his behaviour Each statement is assigned values depending upon the importance The rater places a (+) or (-) sign or YES or NO or ? representing as to whether 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-list Separate 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 performance characteristics [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 1 1 1 1 1 1 1 1 1 Average 2 2 2 2 2 2 2 2 2 Good 3 Excellent 4

Quality of work Quality of work Job knowledge Dependability Attitude Initiative Co-cooperativeness Leadership Emotional maturity

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2) Comparative methods: Relay on relative comparison and ranking of employees performance based on certain characteristics of performance. a) Ranking Method: Simplest and oldest method Supervisor evaluates all subordinates under him on an overall basis and then 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-on one basis. Supervisor is given slips containing 2 names & he is asked to tick the one which he considers better. Total no of pairs that the supervisor has to compare are worked out using the following formula: N (N-1) where 2 N- Total no of employees to be evaluated Eg., 10 employees [10(10-1) = 10(9) = 90 = 45] 2 2 2 Hence 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 their performance Drawback rater may rate most of the employees on the higher side of their 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 %]

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10 20

40

20 10

+ 10% poor 20% Acceptable 30% Average 40% very Good 40% 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 to compare 2 essay appraisals relating to one persons.

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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 appraisal 4) 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 Goal setting 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. o Effective & ineffective job behaviors are described Steps: Performance measures for effective job performance are identified clustered into small set of key performance dimensions for a given job Behaviours are identified Critical behaviours identified are reclassified to form the definition of job dimension & best ones are kept for further development

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 Critical behaviour is assigned numerical scale values [1 to 7] each point indicating level of performance. Results of arranging various scales for difference dimensions of the job, produces a series 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 in the 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 involved Interviews: Structured one are used to know about the background, critical incidents, situational and behavioural event of employees. LGD: Small group of employees are given a problem to solve & are instructed to arrive at a group decision within a specified time format. 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. 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 interactions among 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. 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. Presentations: On vision, organizational issues, case studies, etc are extensively used for assessing employees/ participants. 360 Degree Method Page 11

2) 3) 4)

5)

6)

7) e)

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f) Balanced scorecard Method: It provides a clear idea as to what companies should measure 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 & external outcomes to continuously improve performance & results. It is a central list of numbers, which show each key part of an organizations success, 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 employees o 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 used Objectives: o Promote an employee to higher levels of jobs o 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 functions o Determination of Mechanism.

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