HUMAN RESOURCE DEVELOPMENT Qualities and Competencies of HRD Manager 1.

He should have faith in the capacity of people to change and develop at any stage of their life. 2. He should have constant desire to learn and develop himself. Some common ways are reading, experimenting, sharing experiences with others, attending conferences, etc. He should not be obsessed with enhancing his own knowledge that the work of the organization suffers.
3. He should have the desire to help others (A state of high level of extension

motivation). He should be prepared to sacrifice his own personal goals for group goals. 4. He should possess good communication skills to sell his ideas to others in the organization. 5. He should be a good listener. 6. He should be pro-active. 7. He should have enough patience to wait till his actions bear fruit. 8. He should be free from bias. He should not make any judgements on the basis of any sort of incidents. 9. He should have leadership qualities and should be a role model to others. 10. He should have respect and knowledge of work of his subordinates. He should have the capacity to work as a team. 11. He should maintain cordial relationship with top management and act as a liason between top level management and workers. 12. He should have understanding of individual and group behaviours.

13. He should have understanding of HRD sub-systems, how they are designed , introduced and implemented.

Some Dos and Donts of HRD Manager

1. The HRD Manager should never lose sight of his mission which is to create proper HRD

climate. Most of the HRD managers are involved in routine functions like recruitment, promotion , transfer, etc. These satisfy their ego and power needs , but they hardly find time to create proper HRD Climate.
2. The HRD manager should always be on his feet interacting with the employees and line

managers, knowing their problems, inviting suggestions and building rapport with them.
3. The HRD manager should not allow himself to be surrounded by Sycophants. Once an HRD

Manager is known to have become close to Chief Executive as a result of his direct access, people may perceive him to be a source of promotion and reward. Workers may misuse his time; tell him what they feel rather than what is correct. Sometimes, they may envy his power and may hold back co-operation and information from him.
4. The HRD manager should not over indulge him at the cost of HRD spirit. Example: The

HRD Manager should not waste his time in collecting information on how well the appraisal form is filled, number of people rotated, number of people trained,etc.
5. If the HRD Manager is invited from outside, he must work for early withdrawal. His

objective is to create right kind of organizational climate .In beginning external consultant may be necessary for a successful HRD effort because he not brings his expertise in dealing with HRD issues in the organization which an internal person may find it difficult. But later external consultant should be replaced with permanent HRD Manager. Some of the organizations where HRD Department persists are: 1) State Bank of India. 2) Larsen and Toubro. 3) Crompton and Greaves. 4) Voltas.
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5) Bank of Baroda. 6) Bharat Heavy Electricals Limited. Functions / Tasks of HRD Department
1) The foremost task of HRD Department is to be in conformity with philosophy and beliefs of

top management. If beliefs of top management are contradictory to HRD Philosphy, it should enable top management to change its belief.
2) It should supply necessary inputs to Personnel Department (or) Top Management to

formulate right type of personnel policies. 3) It should inspire line managers to learn and develop. 4) It should design and experiment with new methods and conduct human process research to build right type of organizational climate and achieve organizational goals. Task Orientation (in the form of increased production and profits) should be the emphasis of HRD managers. 5) It should monitor the working of HRD sub-systems and the state of the organizational climate by collecting feedback, organizing review workshops and so on. 6) It should make efforts to win the confidence of employees union by removing their distrust, fear and suspicion towards its activities and inspire to work for its success. MANPOWER PLANNING Essence / Concept of Manpower Planning Manpower Planning could be seen as a series of activities involving: (1) Assessment of manpower needs of the organization based on its future plans and diversification activities. (2) Understanding the availability of present manpower resources and analyzing the degree to which these resources are employed optimally. (3) Anticipating manpower problems and ensuring adequacy of manpower in the organization. (4) Planning the necessary programmes of recruitment, selection, training, development, transfer, promotion, utilization, compensation and motivation so that future manpower requirements will be met. Definition
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Strainer defines Manpower Planning as strategy for the acquisition, utilization, improvement and preservation of an enterprises human resources.

Steps in Manpower Planning (1) Analysis of the organizational plans Every business enterprise should plan for the performance of the following activities: (a) Purchase of raw materials. (b) Installation of machines and their maintainence. (c) Production. (d) Finance and Accounting. (e) Marketing. (f) Research and Development. (g) Maintainence of employees records.
Analysis of organizational plans would pave way to determine manpower

requirements of the organization. (2) Forecasting the demand for human resource Manpower requirements can be forecasted based on the following: (a) Expansion and diversification programmes of an enterprise. (b) The rate of labour turnover and absenteeism.
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(c) Technological changes. (d) Trends in the industry and job market. Quantity and quality in terms of skills, experience and knowledge of the human resource should be taken into account for forecasting human resource needs. Methods for forecasting manpower requirements are:

(A) Managerial Judgement

The Heads of various departments in an organization would be

in a position to determine manpower needs in the department after taking into consideration factors such as the general trend in the industry, expansion and diversification programmes of the enterprise and so on. The experience of the departmental heads would help them to determine manpower requirements of an organization. This method is simple and less time consuming. This limitation of this method is it is highly subjective and may not be reliable. (B) Time Study Method The Standard Time required for completing a task is used to estimate manpower needs of an organization. Example : Standard time per worker per day = 6 hours. Man-hours needed to complete weekly production target = 300 hours. Number of workers needed to complete weekly production target = Man- hours needed per week / Standard time per worker per day = 300 / 6 = 50 Workers.

(C) Ratio Analysis

Forecasting of manpower is based on time series data . Eg. Total output, Total Sales, etc. Example Production level in 2009- 2010 = 50,000 units. Number of workers in 2009 -2010 =50 Ratio = No of workers: Production level = 50: 50,000 = 1:1000 Estimated Production in 2010 2011 = 60,000 units Number of workers required in 2010 -2011 = Estimated Production in current year * Ratio Calculated. = 60,000 * 1/1000 = 60 (Ans). (D) Delphi Technique
It is one of the judgemental methods in manpower planning.

It is complex and time consuming. Steps in Delphi Method are as follows: (1)Employees are asked to provide their estimates of human resource through a series of carefully designed questionnaire.
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(2) Each member anonymously and independently completes the questionnaire. (3) Results of the questionnaire are compiled at a particular location , transcribed and copied. (4)Each member receives the copy of the result. (5) After reviewing the results, members are asked to review their estimates. It triggers new estimates or cause change in original position. (6) Step 4 and 5 are repeated often unless consensus is reached. Delphi method is a collaborative effort of employees to determine human resource requirements of an organization and avoids involvement of outsiders.
It is expensive and time consuming.

(3) Forecasting Supply of Human Resources (A) Estimating future requirements of human resource Information on existing human resource inventory is gathered: (a) Department wise (production, marketing , finance , etc). (b) Job-category wise (Clerks, Cashiers,etc). (c) Age wise. (d) Skill wise. (e) Experience wise. (f) Pay scale wise. (g) Sex wise and so on.
(B)

Estimating loss of human resource

Loss of human resource can arise on account of the following reasons:

(a) Retirement, (b) Resignation, (c) Death, (d) Disablement, (e) Dismissal,
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(f) Lay-off, etc. (4) Making an estimate of net human resource requirements
A comparison between the demand and supply forecast of human resource

would indicate the net human resource requirements. It would indicate surplus or deficiency of manpower resources. Surplus implies some employees are redundant. Deficiency implies additional requirement of employees. (5) Preparing the action plan In case of surplus manpower, the excess employees may be redeployed i.e, sent to branch offices or sister concerns where there is shortage of manpower. Redeployment is prevalent in Government organization. In case of surplus, employees may be encouraged for voluntary retirement.
If there is deficiency in manpower, employees may be recruited from

outside. Need and Importance of Manpower Planning (1) Human Resource Planning is needed to meet the needs of expansion and diversification programmes of an organization. (2) It helps to plan for physical facilities like canteen, staff quarters, etc. (3) It facilitates career succession planning in the organization. (4) It helps to find out surplus man-power in the organization and timely action can be taken. (5) It creates effective utilization of human resources in the organization. (6) It is useful to anticipate cost of human resources and facilitates the process of budgeting. (7) It helps in effective use of technological progress. CONCEPT OF PERFORMANCE APPRAISAL It is a systematic evaluation of personnel by supervisors or those familiar with his performance.

 Performance appraisal is a systematic and objective way of judging the relative worth or ability of an employee in performing his task. DEFINITON Beach says Performance Appraisal is the systematic appraisal of an individual with regard to his performance on the job and his potential for development.

METHODS OF PERFORMANCE APPRAISAL (1) Rank Order Rating It is oldest and very simple method of personnel appraisal. Ranking employees one after another from one after another based on the level of job performance. It is not easy for the rater to compare several men simultaneously.
(2) Critical Incident System

This system evaluates various traits of an employee on the job like being quarrelsome with fellow employees, showing willingness to assist others, work overtime during peak periods, etc.
These critical behaviours are recorded in a specifically designed

book and behavior pattern designed on the basis of observed critical incidents. (3) Graphic Rating Scale
The employees are rated based on personality characteristics

and performance. Eg: Performance appraisal is based on job knowledge, intelligence, quality of work for employees, for a management personnel performance appraisal is based on leadership qualities, creative ability, etc.
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 Performance appraisal of employees under this method is made

in terms of the following:

(A) Excellent rating : It is given to the employee who has

mastered his present job and can perform without supervision. (B) Above Average rating : It is given to employees when the performance in terms of better quality or higher output or lesser time is above the expected standards. (C) Average rating: It means fulfillment of expected standards.
(D) Poor rating: It refers to inability to achieve the expected

standards. If it is due to defects in employee, corrective action should be taken to remedy them. Modern Methods of Performance Appraisal
(4) Management By Objectives (MBO) Result oriented appraisal is the outcome of modern management

technique known as Management By Objectives (MBO).

MBO is a philosophy of management which seeks to minimize

external control and maximize internal motivation through joint goal setting between the manager and subordinates and increasing the subordinates own control of work. Steps in MBO are as follows: 1. Joint goal setting Manager in consultation with subordinates formulates clear statement of objectives. 2. Action Planning Plans are made to achieve the desired goals. 3. Self Control It is systematic monitoring and appraisal of an employees performance. 4. Periodic progress reviews

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 Periodic Progress reviews paves way to take

corrective measures when behaviours deviate from the established standards.

(5) 360 Degree Appraisal 360 degree appraisal is the process of systematically gathering data on persons skills, abilities and behaviours from a variety of sources the manager, peers, subordinates, customers and clients.
In 360 degree appraisal, appraisal of an

employee is done by his superiors, his peers, his subordinates and clients.
The attributes / qualities of employees which

are taken into account in evaluating the performance of employees are: talents , behavior, values , technical considerations ,etc. Appraisal by Superior In 360 Degree appraisal, the superior evaluates the performance of an employee. The reason of appraisal of an employee carried out by immediate superior is as follows:
(a) He is familiar with employees performance. (b) He can understand the areas where his subordinates lack which may

be overcome by training and development. (c) The nature of authority relationship. Superiors are responsible for getting the things done which necessities the appraisal of subordinates. Appraisal by Superiors may be based on baises.
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 Superiors may not be aware of behavior of subordinates which may be important for appraisal. Appraisal by Peers
Peers are in a better position to evaluate certain aspects of behavior like

contribution to group efforts, interpersonal effectiveness, communication skills, reliability, initiative, etc. In such appraisal, biases are likely to emerge if appraisal is linked for deciding rewards. Appraisal may take the shape of give and take (reciprocal appraisal) , You rate me good , I will do the same for you. Appraisal by Subordinates Subordinates can appraise the superior in terms of how he facilitates their working, delegates authority, allocates work and resources, disseminates information, resolves interpersonal conflicts and shows fairness to them. This is based on the liberty given to subordinates to assess the performance of their superiors. Appraisal by Clients An employees performance may be evaluated by the clients who interact with employee. The clients may suppliers of inputs (or) customers of output. Clients may evaluate the employees in terms of providing services to them, his co-operation, courtesy, dependability and innovativeness. Two problems which may emerge in this appraisal are: (a) Clients do not feel motivated to evaluate the employees as they feel that this is not their responsibility. (b) Objectivity of clients is affected by how their interest is served by the employee, which may not portray the true performance of employees. Role of HRD in 360 Degree Appraisal

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 The department consolidates the appraisal inputs, identifying the point

of concensus and provides feedback to the appraise , so that they can avoid the weakness as identified in the appraisal. It acts as a facilitator for conducting performance appraisal. It devises action plan to avoid the weakness as identified in the appraisal. Evaluation of 360 degree Appraisal
(A) Positive aspects of 360 degree Appraisal

Greater self awareness of managers ; reveals strength and weakness. Reduced gap between self assessment and colleagues assessment. Team work is facilitated through peer group assessment. Facts about organizational culture and ambience are brought into light. Empowerment is facilitated.
Inflexible employees are forced to initiate self change. (B) Negative Aspects of 360 Degree Appraisal

The system may be utilized to humiliate personnel. Evaluation from colleagues and superiors may be baised. Linking rewards to appraisal may turn to be unfair. It ignores performance in terms of achieving goals. The rate may deny the truth of negative feedback. (6) Appraisal Centre The concept of assessment centre was initially applied to military stuations in German Army in 1930s and War Office Selection Board of the British Army in 1960s. The basic purpose of this method is to test candidiates in social situations using a number of methods and a variety of procedures. An assessment centre is a central location where managers come together and participate in a number of simulation exercises and on the basis of which they are evaluated by a panel of raters. The evaluation process goes through 2-3 days. Objectives of Assessment Centres
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1) To measure potential for first level supervision , upper

management positions and also higher level management positions. 2) To develop training and development needs of employees. 3) To select recent college students for entry level positions. 4) To provide more accurate human resource planning information. 5) To make an early determination potential. 6) To assist in affirmative goals. CRITERIA OF EFFECTIVE PERFORMANCE APPRAISAL 1. Clear Objective The objective of appraisal system should be clear and should be beneficial to the organization and its employees. 2. Training Evaluators should be trained in philosophy and techniques of performance appraisal.
They should be provided with knowledge and skills in

documenting appraisals, conducting post appraisal interviews, etc. 3. Mutual Trust An atmosphere of mutual trust and confidence should be created in the organization before introducing the appraisal system. It enhances the confidence of employees in the appraisal system. 4. Documentation It will encourage evaluators in making conscious efforts minimizing biasness. It helps for imparting accountability for ratings. 5. Feedback
It provides necessary feedback to know the difficulties under

which the employees work and to identify the training needs. 6. Participation The employees should actively participate in managing performance and in the on going process of evaluation.
The superior should pay the role of coach and counselor. 14

7. Review and appeal There should be mechanism to review system of performance appraisal.
It should be made by a committee consisting of line executives and personnel experts.

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