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A GUEST LECTURE ON HRD AND PERSONNEL MANAGEMENT

By P.B.S. KUMAR
B.Sc.MA(PM),MA(Ind.Eco.),MBA(HR),BGL,DLL,PGDIRPM

A BRIEF NOTES ON HRD IN INDIA

STRATEGIC OVERVIEW
Human resources can be viewed as the same of knowledge, skills, attitudes, commitment values and the like of people of an organization. Development is acquisition of capabilities that are needed to do the present job, or the future expected job. Human Resource Development is a positive concept in human resource management. The purpose of Human Resource Development is to enhance an employees capacity to successfully handle greater responsibilities, through formal or informal means. Any effective HRD programme must satisfy the needs of an organization. To this end, management must outline the needs of the organization and convert them into objectives with a view to formulate a workable programme. The purpose of this chapter is to help the student understand the basic concepts, principles and practices of HRD. INTRODUCTION;

People are the real assets of an organization. If treated well, they can take organizations to commanding heights. Two plus two could be four or even ten. Organisation are generally, driven by a set of predetermined goals. They employ physical, financial and human resources in order to achieve the goals. These goals have no meaning unless people understand the underlying philosophy, translate them into concrete action plans and pur ktheir heart while realizing the targets. Organisation, thus depend on people for their survival and growth. In a similar way, people need organization . The vast majority of people work to support themselves and their families. But people work for many reasons other than economic security. HRD;

Human Resources Development (HRD) is a positive concept in human resource management. It is based on the belief that an investment in human beings is necessary and will invariably bring in substantial benefits to the organization in the long run. It aims at overall development of human resources in order to contribute to the well being of the employees, organization and the society at large.

FEATURES OF HRD

HRD is process by which the employees of an organization are help themselves and develop the organization. It has the following features: a. HRD IS A SYSTEM : It is a system having several interdependent parts or subsystems such as procurement, appraisal, development, etc., Change in any one subsystem leads to change in other parts. b. HRD ISA PLANNED PROCESS: It is a planned and systematic way of developing people. Further it is undertaken on a continuous basis. Learning, as we all know, is a lifelong process and goes on and on.

c.

HRD INVOLVES DEVELOPMENT OF COMPETENCIES: Basically it tries to develop competencies at four levels. At the individual level, employees are made to realize the importance of playing their roles in tune with overall goals and expectations of other people (regarding such roles). By enriching and redesigning jobs, the roles of employees are made more meaningful and interesting. At the interpersonal level, more stress is laid on developing relationships based on trust, confidence and help. At the group levels, task forces, cross functional teams are created to cement intergroup relations. At the organizational level, the organization is made to nurture a development climate. Where every effort is made to harness human potential while meeting organizational goals.

d. HRD IS AN INTER-DISCIPLINARY CONCEPT: HRD is an amalgamation of various ideas, concepts, principles and practices drawn from a number of soft sciences such as sociology, psychology, anthropology, economics etc. e. HRD IMPROVES QUALITY OF LIFE : HRD enable the employee discover and utilize his capabilities in service of organizational goals. He finds a new meaning in work, when managers support such initiatives through incentive plans and challenging work assignments. The whole efforts of HRD, thus, is focused on improving the quality of life of employees working at various levels in an organization. OBJECT OF HRD

HRD, basically, aims at developing : The capabilities of each employee as an individual ; The capabilities of each individual in relation to his or her present role ; The capabilities of each employee in relation to his or her expected future role (s) ; The dyadic relationship between each employee and his or her employer ; The team spirit and functioning in every organizational unit ; Collaboration among different units of the organization ; The organizations overall health, and self-renewing capabilities, which in turn increase the enabling capabilities of individuals, dyads, teams and the entire organization BENFEFITS OF HRD

HRD improves the capabilities of people. They become innovative and enterprising ever eager to take risk and get ahead. It improves the all round growth of an employees. Feedback and guidance from superiors help employees grow continually and show superior performance. HRD improves team work. Employees become more open and trust each other. The Organisational climate, too, improves a lot. HRD leads to greater organizational effectiveness. Appropriate employee-centered policies help the organization achieve its goal more efficiently. Performance related rewords help employees realize the importance of utilizing their skills fully in the service of organsational goals. The organisations overall health and self-renewing capabilities, too, improve quite singnificantly.

EVOLUTION OF THE CONCEPT OF HRD The early part of the century saw a concern for improved efficiency through careful design of work. During the middle part of the century emphasis shifted to the availability of managerial personnel and employee productivity. Recent decades have focused on the demand for technical personnel, responses to new legislation and governmental regulations, increased concern for the quality of working, total quality of management. HRD AT MACRO AND MICRO LEVEL HRD as stated earlier, is mainly concerned with developing the competencies of people. When we call it as a people-oriented concept then several questions come to mind like should the people be developed in the larger and national context or in the smaller institutional context ? Is is different at the macro level and micro level ? As things stand now, HRD applies, to both institutional (micro) as well as national (macro) issues. The main objective, however, is to develop the newer capabilities in people so as to enable them to tackle both present and future challenges whil realizing organizational goals. However, it is useful both at macro and micro levels. MACRO LEVEL: At the macro level HRD is concerned with the development of people for the nations well being. It takes health, capabilities, skills, attitudes of people which are more useful to the development of the nation as a whole. While calculating the national income and economic growth, the prospective HRD concept examines the individuals potentialities, their attitudes, aspirations, skills, knowledge etc, and establishes a concrete base for economic planning. However, HRDs contribution at a macro level has not gained popularity as yet. MICRO LEVEL : HRD has concern for grass root development in the organizations. Small wonder, then that HRD was well received by companies managements as they realised its importance and foresaw its future contribution for the individual and organizational development. HRD Vs PERSONNEL FUNCTION

Personnel Management - Personnel Management is thus basically an administrative record-keeping function, at the operational level. Personnel Management attempts to maintain fair terms and conditions of employment, while at the same time, efficiently managing personnel activities for individual departments etc. It is assumed that the outcomes from providing justice and achieving efficiency in the management of personnel activities will result ultimately in achieving organizational success.

Human resource management is concerned with the development and implementation of people strategies, which are integrated with corporate strategies, and ensures that the culture, values and structure of the organization, and the quality, motivation and commitment of its members contribute fully to the achievement of its goals.
Human Resource Development HRM is concerned with carrying out the SAME functional activities traditionally performed by the personnel function, such as HR planning, job analysis, recruitment and selection, employee relations, performance management, employee appraisals, compensation management, training and development etc. But, the HRM approach performs these functions in a qualitatively DISTICNT way, when compared with Personnel Management.

Main Differences between Personnel Management and HRM Personnel management is workforce centered, directed mainly at the organizations employees; such as finding and training them, arranging for them to be paid, explaining managements expectations, justifying managements actions etc. While on the other hand, HRM is resource centered, directed mainly at management, in terms of devolving the responsibility of HRM to line management, management development etc.

Although indisputably a management function, personnel management has never totally identified with management interests, as it becomes ineffective when not able to understand and articulate the aspirations and views of the workforce, just as sales representatives have to understand and articulate the aspirations of the customers.

Personnel Management is basically an operational function, concerned primarily with carrying out the day-to day people management activities. While on the other hand, HRM is strategic in nature, that is, being concerned with directly assisting an organization to gain sustained competitive advantage.

HRM is more proactive than Personnel Management. Whereas personnel management is about the maintenance of personnel and administrative systems, HRM is about the forecasting of organizational needs, the continual monitoring and adjustment of personnel systems to meet current and future requirements, and the management of change.

27 Points of Difference between Personnel Management & HRD


Personnel Management Careful delineation of written contracts Importance of devising clear rules/mutuality Procedures Norms/custom & practice Monitoring Pluralist Institutionalized Human Resource Development Aim to go beyond contracts Can-do outlook; impatience with rule Business need Values/Mission Nurturing Unitarist De-emphasized

S. No. Dimension Beliefs & Assumptions 1. Contract 2. Rules

3. 4. 5. 6. 7.

Guide to management Action Behaviour Referent Managerial Task vis-vis Labour Nature of Relations Conflict

STRATEGIC ASPECTS 8. 9. 10. 11. Key Relations Initiatives Corporate Plan Speed of Decision Labour Management Piecemeal Marginal to Slow Customer Integrated Central to Fast

LINE MANAGEMENT 12. 13. 14. 15. 16. Management Role Key Managers Communication Standardisation Transactional Personnel/IR Specialists Indirect High (e.g. parity an issue) Negotiation Transformational leadership General/business/line managers Direct Low (e.g. parity not seen as relevant) Facilitation

Prized management skills KEY LEVERS 17. 18. 19. 20. 21. Selection Pay Conditions Labour Management Thrust of relations

Separate, marginal task Job Evaluation (fixed grades) Separately negotiated Collective bargaining contracts Regularized through facilities & training

Integrated, key task Performance related Harmonization Towards individual contracts Marginalized (with exception of some bargaining for change models) Few Increased flow Teamwork Manage climate & culture Learning companies Wide ranging cultural, structural & personnel strategies

22. 23. 24. 25. 26. 27.

Job categories & grades Communication Job Design Conflict Handling Training & Development Foci of attention of interventions

Many Restricted flow Division of Labour Reach temporary truces Controlled access to courses Personnel procedures

HRD MATRIX

The HRD Matrix shows the interrelationships between HRD instruments, process, outcomes and organizational effectiveness. HRD INSTRUMENTS: These include performance appraisal, counseling, role analysis, potential development, training, communication policies, job rotations, rewards, job enrichment programmes, etc, These instruments may very depending on the size of the organization, the internal environment, the support and commitment of the top management, the competitive policies, etc. HRD PROCESES : The HRD instruments lend to the generation of HRD of processes like role clarity. Performance planning, development climate, risk-taking, dynamism in employees. Such HRD processes should result in more competent, satisfied and committed people that would make the organization grow by contributing their best to it. HRD OUTCOMES: HRD instruments and processes make people more committed and satisfied, where they tend to give their best to the organization enthusiastically. ORGANISATIONAL EFFECTIVENESS: Dimensions such HRD outcomes influence that organizational effectiveness, which in turn, depends on a number of variables like environment, technology, competitors etc. HRD MECHANISMS OR SUBSYSTEMS

Many HRD mechanisms are available to develop the competencies of employees and improve the overall organization climate. The major ones are (a) Performance Appraisal (b) Potential Appraisal (c) Career planning (d) Training and Employee Development (e) Organization Development. (f) Rewards and (g) Employee welfare and quality of work life (QWL).

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