MBA

III Semester, Code: MBSC 3.1C

ELECTIVE C: HUMAN RESOURCE MANAGEMENT

COURSE: STRATEGIC HUMAN RESOURCE DEVELOPMENT

DEPARTMENT OF STUDIES & RESEARCH IN MANAGEMENT

Karnataka State Open University
MUKTHAGANGOTRI, MYSURU
Karnataka- 570 006
https://ksoumysuru.ac.in/
 Course Code: MBSC 3 .1C

COURSE: STRATEGIC HUMAN RESOURCE DEVELOPMENT

MBA
III SEMESTER (CBCS)

DEPARTMENT OF STUDIES & RESEARCH IN MANAGEMENT

Karnataka State Open University
MUKTHAGANGOTRI, MYSURU
Karnataka- 570 006
https://ksoumysuru.ac.in/
Programme: MBA Course : Strategic Human Resource Development
Semester: III Code: MBSC 3.1C Credits: 04
Expert Committee Course Editorial Board
Prof. Sharanappa V Halse, Vice Chancellor Dr. Rajeshwari H, BOS Chairperson
Prof. N Lakshmi, Dean Academic Dr. Savitha P, Chairperson
Dr. Savitha P, Chairperson Prof. C Mahadevamurthy, Internal Expert
Prof. C Mahadevamurthy, Course Co-Ordinator Prof. S J Manjunath, BIMS, External Expert
Dr. Rajeshwari H, BOS Chairperson
Course Preparation Team
Blocks Unit Writer
Block 1: HUMAN RESOURCE DEVELOPMENT
Unit 1: Introduction To HRD Dr. Akash, Ranichannamma University, Belagavi
Unit 2: HRD - Macro and Micro Level Dr. Akash, Ranichannamma University, Belagavi
Unit 3: Role and Competencies of HRD Professionals Dr. Akash, Ranichannamma University, Belagavi
Unit 4: Performance Management System Dr. Akash, Ranichannamma University, Belagavi
Block 2: HRD PROCESS
Unit 5: Human Resource Development Process Prof. Renuka Murthy, VTU PG Centre, Mysuru
Unit 6: Development of Human Capital Prof. Renuka Murthy, VTU PG Centre, Mysuru
Unit 7: Assessing HRD Needs Prof. Renuka Murthy, VTU PG Centre, Mysuru
Unit 8: Training Methods Prof. Renuka Murthy, VTU PG Centre, Mysuru
Block 3: CAREER PLANNING AND DEVELOPMENT
Unit 9: Career Planning Prof. S. Jayanna, VSK University, Bellary
Unit 10: Career Planning Process Prof. S. Jayanna, VSK University, Bellary
Unit 11: Manpower Planning Prof. S. Jayanna, VSK University, Bellary
Unit 12: Career Planning and Development
Prof. S. Jayanna, VSK University, Bellary
Block 4: EVALUATION HRD
Unit 13: Human Resource Evaluation Prof. Aisha M Sheriff, BIMS, Mysore
Unit 14: Human Resource Development Prof. Aisha M Sheriff, BIMS, Mysore
Unit 15: Organisation Development Prof. Aisha M Sheriff, BIMS, Mysore
Unit 16: Change Management Prof. Aisha M Sheriff, BIMS, Mysore
Course Editor:
Publication coordination:
Dr. Santhosh Naik R, Director, Prasaranga (University Publications), KSOU

ISBN:
© Karnataka State Open University, 2023
All rights reserved. No part of this work may be produced in any form, by mimeograph or any other means,
without permission in writings from the Karnataka State Open University.
Further information on the Karnataka State Open University courses may be obtained from the University’s
office at Muktha Gangotri, Mysuru, Karnataka, India - 570006
Or visit our website: https://ksoumysuru.ac.in/
Disclaimer: The opinions expressed in this publication are those of the authors.
Pages: 237 Cover Design and Illustrations:
Printed at:
Printed on behalf of the Karnataka State Open University, Mysuru, by Registrar, KSOU, Mysuru
570 006.
 BLOCK – I
HUMAN RESOURCE DEVELOPMENT

UNIT - 1 INTRODUCTION TO HRD

Structure:

1.0 Objectives
1.1 Concept of HRD
1.2 Meaning and Definition of HRD
1.3 Salient Features of HRD
1.4 Objectives Of HRD
1.5 Role of HRD
1.6 Evolution of HRD
1.7 Scope of HRD
1.8 Case Study
1.9 Notes
1.10 Summary
1.11 Key Words
1.12 Self Assessment questions
1.13 References
1.0 OBJECTIVES
After Studying this unit, you should be able to;
• Explain the concept and definitions of HRD at different angles
• Discuss the nature and features of HRD
• Bring out the role and objectives of HRD with present business scenario
• Explain the evolution and scope of HRD

1.1 CONCEPT OF HRD

HRD is a systematic process, it includes set of mechanisms and techniques such as
performance appraisal, counseling, training, and organization development interventions
are used to initiate, facilitate, and promote the manpower. In other words , human resource
development refers the employees of an organization are helped, in a continuous and
planned way to acquire or sharpen capabilities required to perform various functions of
organization to attain the predetermined goals of organization. Thus it is clear that from
the above HRD deals with to develop the capabilities of employees and discover and
exploit inner potentials of employees to handle the business effectively.
1.2 MEANING AND DEFINITION OF HRD
Human resources development is a branch of human resources management, which
deals with training and development of the employees in the organization. However,
many scholars have attempted to define the concept of HRD. The American Society
argues that HRD deals the process of increasing the capacity of the human resource
through develop­ment. It is thus the process of adding value to individuals, teams or an
organization as a human system’.
According to South Pacific Commission ‘human resource development is equipping
people with relevant skills to have a healthy and satisfying life’. In the word of Watkins,
‘human resource development concerned with fostering long­term work related learning
capacity at individual, group and organizational level. According to Leonard Nadler,
“Human resource development is a series of organized activities, conducted within a
specialized time and designed to produce behavioral changes.
Prof. T.V. Rao opines that, “HRD is a process by which the employees of an
organization are helped in a continuous and planned way to (i) acquire or sharpen

2
capabilities required to perform various functions associated with their present or
expected future roles; (ii) develop their journal capabilities as individual and discover
and exploit their own inner potential for their own and /or organizational development
purposes; (iii) develop an organizational culture in which superior­subordinate
relationship, team work and collaboration among sub­units are strong and contribute to
the professional well being, motivation and pride of employees.
Nadler (1970) defined HRD as a series of organized activities, conducted within a
specified period of time, and designed to produce behavioral change. Some of the common
activities he identified within HRD are training, education and development. He identified
training as those activities intended to improve performance on the job, education as
those activities intended to develop competencies not specific to any one job, and
development is preparation to help the employee move with the organization as it
develops.
According Gilley HRD is organized learning activities arranged within an
organization to improve performance and personal growth for the purpose of improving
the job, the individual, and the organization.
Smith opined that “HRD is the process of determining the optimum methods of
developing and improving the human resources of an organization and the systematic
improvement of the performance of employees through training, education and
development and leadership for the mutual attainment of organizational and personal
goals.
Thus it is clear that from the above definitions, HRD is a systematic process of
active learning from experience­leading to systematic and purposeful development of
the whole person, body, mind, and spirit and it is a integrated use of training, organizational
and career development efforts to improve individual, group, and organizational
effectiveness. Further, HRD is an integral part of Human Resource Management (HRM)
which is more concerned with training and development, career planning and development
and the organization development. The organization has to understand the dynamics of
HR and attempt to cope with changing situation in order to deploy its HR effectively and
efficiently.
1.3 SALIENT FEATURES OF HRD
 Training and Development ­ HRD involves training and developing the employees
and managers.
 Organizational Development – It deals with organizational development and it tries
to maintain good relations in the organization.
 Career Development­ It focuses on career planning and development of employees.
 Performance Appraisal – It covered performance appraisal, potential Appraisal, etc.
 Multidisciplinary ­ HRD is multidisciplinary in nature that is uses many different
subjects like education, management, psychology, communication, economics and
other.
 Continuous in Nature ­ HRD is not a onetime affair. It is a continuous process.
Development of human resources never stops. This is because continuous changes
happening in the organization and environment.
 Integrated use of sub­systems ­HRD system involves the integrated use of sub­
systems such as performance appraisal, potential appraisal, career planning, training,
etc.
 HRD places the right man in the right job. Placement is based on performance
appraisal, potential appraisal, training, etc. Proper placement gives satisfaction to
the employee, and it increases the efficiency.
 Promotions and Transfer HRD also gives promotions and transfers to the employees
based on performance appraisals, etc.
 Motivation by Rewards – It is tool for employees motivation by giving them rewards
for performing and behaving better, suggesting new ideas, etc. Financial and non­
financial rewards are given.
Other features
 It is a systematic process in which employees of the organizations are recognized
and developed.
 It assumed human capital is most valuable asset of the organization.
 It deals with development of employees of the organization to develop their general
capabilities in relation to their present jobs and expected future role.

4
 It focuses on the development and best utilization of the capabilities of individuals
in the interest of the employees and organization.
 It is for developing better inter­personal relations among employees and different
level of management.

1.4 OBJECTIVES OF HRD

HRD is needed to any organization that facilitates dynamic and growth­oriented
or to succeed in a fast­changing environment. Organizations can become dynamic and
grow only through the efforts and competencies of their human resources. Personnel
policies can keep the morale and motivation of employees high, but these efforts are
not enough to make the organization dynamic and take it in new directions. Employee
capabilities must continuously be acquired, sharpened, and used. However, the followings
are the important objectives of HRD.
 To develop necessary skills and abilities required to perform organizational activities.
As a result of which, employees can contribute for better performance in an
organization. This leads to greater organizational effectiveness
 To provides an opportunity and systematic framework for the development of human
resource in the organization.
 To development whole personality of man power so that they can show and use
their talent for the benefit of the organization.
 To facilitates planning and management of change in an organization.
 To manages conflicts through improved labor management relation.
 To develops organizational health, culture and environment which lead to change
management.
 To makes capable employees to perform their duties effectively
 To motivates the employees and improve their level of performance.
 To ensure coordination among different activities of organization by developing the
overall personalities of employees.
 To develops the spirit of teamwork; team work for it is used for the effective
cooperation and coordination of each employee which ultimately checks industrial
unrest.
 To develop skills, knowledge and competencies of individual.
 To provide proper training and development that turned to employee commitment.
 To inspire the employees for better performance, that ultimately leads to job
satisfaction.
 To recognizing every employee at par irrespective of caste, creed, religion and
language, can create a very good environment in an organization.
 To ensure that the organization creates a culture and provides equal opportunities to
all employees in matters of career planning, promotion, quality of work life, training
and development.
 To provide continuous training that develops the professional skills of employees.
1.5 ROLE OF HRD

A human resource development is set of planned and systematic activities intended

by an organization to provide opportunities to its members to learn skills necessary for
the present and future job requirements and human resource development is a vital area
for firms because ideas for innovation, quality and continuous improvement, as well as
other critically important inputs needed to compete in the modern, highly competitive
business world, come from people and not from machines. The extent to which people
will provide suggestions for improvements – in all forms – will depend, to a large extent,
on human resource development strategies within firms. Apart from the above the role
of human resource development is to support organizational goals. The cost and time
associated with development and training of employees is only worth it if it directly
helps the employees achieve increased performance, resulting in increased performance
for the organization. When employees are improving their ability and performance, an
organization achieves higher levels of success.
However, the following explanations speak about the role of human resources
development.
 It helps to makes people more competent and capable.
 HRD facilitates to develops new skill, knowledge and attitude of the people in the
concern organizations in order to discharge their obligations without fail
 Through an appropriate HRD programme the employee of organization become
more committed to their jobs.

6
 It helps overall development of man power of organization
 HRD facilitates to accept the changes by employees of organization. Since the
HRD helps to improve the efficiency of employees.
 Employees found themselves better equipped with problem­solving capabilities
through HRD.
 HRD improves the team spirit among employees.
 It helps to create and develop the sound work culture among employees.
 It helps to utilize all available organizational resources.
 It encourage workers to take part indecision making process.
 It improves the role of worker and workers feel a sense of pride and achievement.
 It is crucial in promoting and sustaining the growth in particular education and
training.
 It significantly contributes economic development in terms of increased worker
productivity and income.
 It facilitates economy may be more productive, innovative and competitive through
the existence of more skilled human capability.
 The qualities of human resources development determine the success or failure of
organization.

1.6 EVOLUTION OF HRD

Human resources development usually begins as soon as an employee is hired
and continues throughout that employee’s tenure with the organization. HRD comes in
different forms, including on­the­job training or job shadowing, or online education,
growth opportunities, and compliance training etc. However, the origin of HRD was
emerged in the USA during the advent of the Industrial Revolution in 1800s. But some
writers argued that the roots of HRD emerged in 1913 when Ford Motor started training
its workers to produce mass production in the assembly line. However, a significant
historical event was suggested during the outbreak of World War Two in the 1940’s as it
was during this period that workers were trained to produce warships, machinery, and
other military equipments and armaments. Some scholars argued that HRD could have
started a century later, in the early 1930s and its roots emerged from the concept of
organization development Earlier some papers argue that the historical starting point
of HRD was during the 1950s and 1960s when theories on employees’ developmental
process was popularized. Stead and Lee believed that the development of human resources
in an organization far encompasses merely ‘training’ but also motivation and development
as. The scholar Desimone pointed out that during 1960s and 1970s, professional trainers
realized that their role extended far beyond classroom training and they were also begun
to be required to coach and counsel employees.
Nadler introduced the term HRD in 1970s and it was placed under the big structure
of human resources with the function of selection and development of employees under
the term HRD. In the year 1980s, the term HRD was approved by the American Society
for Training and Development. In the UK, Harrison argued that the historical development
of HRD is more fragmented compared to the US. The emergence of HRD began in early
1980s when the manufacturing industry was hit by a recession and a strategy was required
to overcome the crises especially in multinational companies.
The following charts also speak about the evolution of HRD.
Concept Description
The Commodity Concept Human resource was referred as ‘a commodity’ to be bought
and sold. Wages were decided on the basis of demand and
supply forces. Government also did not care much about the
work force at that time.
The Factor of Production Labor is treated as any other factor of production, viz;
Concept money, material, land, etc.
The Goodwill Concept Welfare measures like safety, first aid, lunch room, rest
room etc. These measures proved to be a source of boosting
up the Morale of workers, and enhancing their performance.
The Paternalistic Concept Management must assume a fatherly and protective attitude
towards employers. Paternalism does not mean merely
providing benefits but it signifies to satisfy various needs of
employees just as parents meet the requirements of the
children.
The Humanitarian To improve the productivity, physical, social and

8
The Humanitarian To improve the productivity, physical, social and
Concept psychological needs of workers must be fulfilled. Elton
Mayo and some other along with him stated that money is
less a factor in determining output, than group standards,
group incentives and security. The Organization is a social
system that has both economic and
Social dimensions.
The Human Resource Employees are the most valuable assets of an organization.
Concept There should be a conscious effort to realize organizational
goals by satisfying needs and aspirations of employees.
The Emerging Employees should be accepted as partners in the progress of
Concept: HRD a company. They should have a feeling that the organization
is their own. To this end, managers must offer better quality
of working life and provide opportunities to people to
exploit their potential fully. There should be opportunities

Source: Rao, V.S.P (2005), Excel Books, New­Delhi

1.7 SCOPE OF HRD
HRD concerned with developing competencies of human resource by enhancing
knowledge, building skill, changing attitude and teaching values, and at other side, creation
of conditions through public policy, programs and other interventions to help people to
apply these competencies for their own and others’ benefits and making things happen.
However, HRD is broader than human resource management viz.,it consists of several
sub­systems such as training and development, employee appraisal, counseling, rewards
and welfare, quality of work life, etc. these are the areas within its scope. The HRD
covers the following areas
 Training­ Training is an important aspect of HRD. It facilitates to develop skills
and capacity of employees to discharge their obligations and for exercise their
power to attain the organization goals.
 Career planning and development – The HRD provide proper guidance to employees
for self­development and career development. It turned to employee empowerment
and employee satisfaction, this leads to organizational development.
 Performance appraisal -A performance appraisal is a systematic and periodic process
that assesses an individual employee’s job performance and productivity in relation
to certain pre­established criteria and organizational objectives. It is an important
area of HRD, through this the organization able to take an appropriate decision
relating to employees to get the maximum work from each employees and it also
facilitate to upgrade the ability of man power. Further, the appraisal is useful for
proper placement and career development of employees. And it is needed for
developing their special qualities, which can be used fruitfully along with the
expansion and diversification of activities of the company.
 Rewards and incentives - Every organization needs a strategic reward system for
employees that address the various issues like compensation, benefits, recognition
and appreciation. Thus it is clear that, provision of rewards and incentives to
employees for encourage them to learn, to grow and to develop new qualities, skills
and experiences which will be useful for organization.
 Employees’ welfare – Employee welfare including various services, benefits and
facilities offered to employees by the employers. The welfare measures need not
be monetary but in any kind. It includes the items like allowances, housing,
transportation, medical insurance and food. Employee welfare also includes
monitoring of working conditions, creation of industrial harmony through
infrastructure for health, industrial relations and insurance against disease, accident
and unemployment for the workers and their families. Through such generous
benefits the employer makes life worth living for employees. However, employee’s
welfare is within the scope of HRD. Welfare facilities are useful for creating
efficient and satisfied labour force.
 Organizational development – It is a field of research, theory, and practice dedicated
to expanding the knowledge and effectiveness of people to accomplish more
successful organizational change and performance. However, HRD aims at providing
conflict­free operations throughout the organization. It also keeps plans ready to
deal with problems like absenteeism, turnover, low productivity or industrial disputes
etc.

10
 Human resource information system­ Human resource information system or
human resource management system (HRMS), is basically an intersection of human
resources and information technology through HR software. This allows HR
activities and processes to occur electronically. Thus it is clear from the above; it
is an information bank and facilitates human resource planning and development in
a proper manner. It facilitates quick decision­making in regard to HRD.
 Quality of work life – It refers to the favorableness’ or un­favorableness’ of a job
environment for the people working in an organization. The period of scientific
management which focused solely on specialization and efficiency, has undergone
a revolutionary change. However, the quality of work life depends on sound relations
between employer (owner) and employees. A forward looking policy on employee
benefits like job security, attractive pay, participative management and monetary
and non­monetary rewards will go a long way in improving the quality of work life.

1.8 CASE STUDY

Cold Stone Creamery (Cold Stone), an American ice cream parlor chain, had
been using video game as a training tool since 2005. Through the custom­made video
game Stone City, the company aimed to train its frontline employees on customer service
and sensitize them to ice­cream portions, inventory wastage, and their effect on
profitability. As more and more companies used video games as a training tool
considering the demographics of their entry­level workers, experts were divided on
whether video games were an effective training tool.
Issues
Training and development; training design, computer­based training
e­learning, and functional training – sales training
Cold Stone Creamery (Cold Stone), an American ice cream parlor chain, had
made a name for itself for innovative products and in­store experience. The company
used in­store made ice cream and combined it with mix­ins, candy, or other items folded
in to make new flavors. According to the chain, its competitors could replicate its ice
cream quality but not its experience.
Questions for Discussion
1. Critically analyze the Stone City training video game. Why do you think more and
more companies are using video games as a training tool?
2. Discuss the pros and cons of using video games as a training tool.
1.9 NOTES
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
………
……
………
……
……
……
………
……
………
……
……
……
………
……
………
……
……
……
………
……
………
……
……
……
………
……
………
……
……
………
……
………
……
……
……
………
……
………
……
……
……
………
……
………
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
………
……
………
……
……
……
………
……
………
……
……
……
………
……
………
……
……
……
………
……
………
……
……
……
………
……
………
……
……
………
……
………
……
……
……
………
……
………
……
……
……
………
……
………
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……

12
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
………
……
………
……
……
……
………
……
………
……
……
……
………
……
………
……
……
……
………
……
………
……
……
……
………
……
………
……
……
………
……
………
……
……
……
………
……
………
……
……
……
………
……
………
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
………
……
………
……
……
……
………
……
………
……
……
……
………
……
………
……
……
……
………
……
………
……
……
……
………
……
………
……
……
………
……
………
……
……
……
………
……
………
……
……
……
………
……
………
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
………
……
……
…
……
………
……
………
……
……
……
………
……
………
……
……
……
………
……
………
……
……
……
………
……
………
……
……
……
………
……
………
……
……
………
……
………
……
……
……
………
……
………
……
……
……
………
……
………
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
1.10 SUMMARY
From the earlier discussion, it is clear that HRD is the integrated use of training
and development, career development and organizational development to improve
individual and organizational effectiveness. However, the said units covered aspects like
concept of HRD, meaning and definition of HRD, salient features of HRD, and objectives
of HRD, role of HRD, evolution of HRD and scope of HRD.

1.11 KEY WORDS

Training and development,
Career development,
Organizational development,
Organizational effectiveness

1.12 SELF ASSESSMENT QUESTIONS

1. What is HRD? Explain its relevance in modern business
2. What are the salient features of HRD? Explain in detail
3. Elucidate the objectives and scope of HRD.
4. How does HRD facilitates to develop the man power in order to grab the available
opportunities of business?.
5. HRD is a tool of man power development and organization development. Comment

1.13 REFERENCES
1. Pareek, V and Rao T.V. Designing and Managing Human Resource Systems, New
Delhi: Oxford and IBH Publishing Co., 1981.
2. Rao T.V Pereira D.F. Recent Experiences in Human Resource Development, New
Delhi: Oxford and IBH Publishing Co.,1986
3. Ulrich D – Human Resource Champions, Harvard Business School Press – 1997
4. Kalpana R. – Balance Score Card – Harvard Business Review, January­February.
(1992)

14
UNIT - 2: HRD –MACRO AND MICRO LEVEL

Structure
2.0 Objectives
2. 1 Introduction
2.2 An overview of Micro –HRD
2.3 Macro HRD –An overview
2.4 Importance of HRD in Present Context
2.5 Development of HRD
2.6 Differentiation between HRD and HRM
2.7 Case study
2.8 Notes
2.9 Summary
2.10 Keywords
2.11 Self Assessment questions
2.12 References
2.0 OBJECTIVES
After studying this unit, you should be able to;
• Highlights the overview of Micro and Macro –HRD
• Examine the importance of HRD in Present Context
• Differentiation between HRD and HRM
• Explain the development of HRD

2.1 INTRODUCTION
Human Resource Development (HRD) is the framework for helping employees
to develop their personal and organizational skills, knowledge and personal abilities.
Further a set of systematic and planned activities designed by an organization or HR
department to provide its members with the necessary skills to meet current and future
job demands. From the previous discussion it is clear that HRD facilitates for developing
the competencies of people. And the HRD required at different level like macro level
and micro level. The main objective at different level is to develop the newer capabilities
of employees so as to enable them to tackle both present and future challenges while
realizing organizational goals.

2.2 AN OVERVIEW OF MICRO –HRD

HRD is concern for development in the organizations at the grass root level.
Small wonder then, that HRD was well received by companies and managements as they
realized its importance and foresaw its future contribution for the individual and
organizational development. Generally HRD at micro level talks of the organizations’
manpower, planning, selection, training, performance appraisal, development, potential
appraisal, compensation, organizational development etc. HRD’s involvement in all these
areas is mainly with an objective to develop certain new capabilities in people concerned
to equip them to meet the present job challenges and to accept future job requirements.
Further, micro HRD is usually understood to be the actual execution of duties as mandated
at the macro level. These duties commonly include the administration of policies
regarding the selection, hiring, compensation, placement, performance management,
promotion, conflict resolution, discipline and discharge of employees. Some of the terms
commonly associated with micro HR are operations planning, practices, procedures and
administration.

16
2.3 MACRO HRD –AN OVERVIEW
At the macro level HRD is concerned with the development of people for the nation’s
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 individual’s potentialities,
their attitudes, aspirations, skills, knowledge etc, and establishes a concrete base for
economic planning. However, HRD’s contribution at macro level has not gained popularity
as yet.
In addition to above Micro level HRD is essentially the strategic function of HR
in a particular work environment. Macro HR encompasses the understanding of how
HR fits into the organization’s structure, mission and planning. Macro HR further
incorporates policy and practice development and designating who administrates HR.
Additionally, collective bargaining and union avoidance campaigns are generally
considered macro related concerns. Some of the vernacular related to macro HR is
strategic planning and organizational design and development.

2.4. IMPORTANCE OF HRD IN PRESENT CONTEXT

HRD played important role in any organization that wants to be dynamic and
growth­oriented or to succeed in globalized environment. Through successful stories
of organization, it is clear that the growth only through human resources development.
The researcher argue that sound HRD policies can keep the morale and motivation of
employees high, but these efforts are not enough to make the organization dynamic and
take it in new directions. Man power capabilities should continuously be acquired,
sharpened, and used. For this purpose, at organization level an “enable” organizational
culture is needed. When employees use their initiative, take risks, experiment, innovate,
and make things happen, the organization may be said to have an “enabling” culture.
However, the HRD have different managerial role in organization, these are as follows.
 It helps to improve knowledge skills, creative abilities, talents, aptitude, and values
and believes of an organizations workforce.
 It facilitates to enhancement of utilization value of human resource depends upon
improvement of the human resource aspects like skill, knowledge, creative liabilities
and talents and molding of other aspects like, values, beliefs aptitude and attitude in
accordance with the changing requirements of groups, organization and society at
large.
 The vitality of human resources to a nation and to industry depends upon the level
of its development.
 The Organizations be dynamic growth oriented and fast changing should develop
their human.
 The efficiency of production process and various area of management depend to a
greater extent on the level of human resources development.
 HRD assumes significance on view of the fast changing organizational environment
and used of the organizations to adopt new techniques on order to respond to the
environmental changes.
 Through the positive personnel policies and programmes motivation the
employees and it leads to commitment and loyalty of employees.
 HRD to be effective should essentially have a strong base of human resource
planning, recruitment and selection changing the fate of organization.
 HRD makes people more competes through developing new skill, knowledge and
attitude.
 Acceptability towards change can be created with the help of HRD and employees
found them­selves better equipped with problem solving capabilities.
 HRD improves team spirit in the organization and create the efficiency culture in
the organization.
 It leads to greater organizational effectiveness, resources are properly utilized and
goals are achieved in a better way.

2.5 DEVELOPMENT OF HRD

Recent economic liberalization announced by government of India lend forwards
market and economic and started creating more dynamic environment in India than ever
before HRA plays a significant and crucial role in market economics under dynamic
environment human resource development should be effective for the candidate who do
not possess potentials to perform present and future roles in organizational in dynamic
environment. HRD to be effective should essentially have a strong base of human
resource planning, recruitment and selection based on effective HRD requirement. These
part features enable the organization to develop its Human resources efficiently human
resources planning for HRD should plan for human resources not only for the present

18
and future jobs but also role, futures, human resource, planning should plan
for potentialities. Recruitment for HRD refers to searching for prospective employee
having skill, and also for development and motivates them to apply for jobs. Selection
for HRD refers to designing the selection techniques like written test, selection test,
interview etc. fit for selection the candidate suitable for future development. These base
factors influence the analysis of roles of employees as individual as member of terms
and organizations, along with the ever changing environment. Thus it clear that from the
above HRD refers to the vast field of training and development provided by organizations
to increase the knowledge, skills, education, and abilities of their employees. In many
organizations, the human resources development process begins upon the hiring of a
new employee and continues throughout that employee’s tenure with the organization.
Many employees come into an organization with only a basic level of skills and experience
and must receive training in order to do their jobs effectively. Others may already have
the necessary skills to do the job, but don’t have knowledge related to that particular
organization. HR development is designed to give employees the information they need
to adapt to that organization’s culture and to do their jobs effectively. Further, it can say
that Human resources development usually begins as soon as an employee is hired and
continues throughout that employee’s tenure with the organization. HRD comes in
different forms, including on­the­job training or job shadowing, textbook or online
education, growth opportunities, and compliance training. On­the­job training refers to
learning the aspects of a job while one is doing the job. An employee may know the
basics of what the job requires, but specifics like which forms to use, where materials
are stored, and how to access the computer systems may require on­the­job training.
Job shadowing is similar in that you watch another employee do the job in order to
develop the proper skills. Another form of development is intellectual or professional
development, which includes college or certification courses or job­specific trainings
and seminars related to how to do one’s job better. Many organizations invest heavily in
providing training and development to their employees in order to increase their
knowledge and skills. With the growth of online learning, much of this training has
become available via webinars and online courses, but it is still very common to conduct
in­person trainings or attend training seminars or conferences with other professionals
in the field. Many professionals also voluntarily take additional training and development
courses in order to be seen as experts in their fields.
2. 6 DIFFERENTIATION BETWEEN HRD AND HRM
HRD or Human Resource Development is a sort of framework that allows and
aids employees of an organization to develop their organizational and personal skills as
well as their knowledge and abilities. There are a myriad of practices and opportunities
involved in this field. Some of them can be named as performance development and
management, training career development, Mentoring, coaching succession planning,
tuition assistance, key employee identification, etc. The main goal of Human Resource
Development is to create the most superior workforce possible so that the organization
has the means to fulfill their services towards their clientele better. Human Resource
Development can be formal or informal: formal being tutored in a classroom or an
organized effort while informal may be on the job training by a manager. However, Human
Resource Management is an organizational function that has been introduced with the
aim of maximizing the performance of the employees. It focuses on policies and systems
and deals primarily in the manner in which people are managed within organizations.
HRM deals with a number of activities such as recruitment, employee training,
performance appraisal and rewarding. At the beginning of the human resources movement
in the early 20th century, HRM was defined by duties such as benefits and payroll
administration and transactional work whereas today with globalization HRM has come
to focus upon strategic initiatives such as talent management, succession planning,
industrial and employees relations and diversity management. However, the following
explanation speaks about the difference between HRM and HRD.
 HRD is a part of HRM. HRM deals with all HR initiatives while HRD only deals
with the development factor.
 HRD and HRM are both practices that deal with human resources of a company.
Usually in large organizations, there exists entire departments dedicated to HRM
where trained professionals work together solely towards the amelioration of this
aspect, dealing with both HRD and HRM functions. HRD is human resource
development. HRM is human resource management.
 HRM functions are more formal than of HRD functions.
 HRD deals with functions such as performance development and management,
training, career development, mentoring, coaching, succession planning, tuition
assistance, key employee identification, etc. HRM deals with functions such as
employee training, recruitment, performance appraisals as well as duly rewarding
the employees.

20
 HRM is a subset of the entire management processes of an organization. HRD is a
subset of HRM.
 Scope of HRM is wider. Scope of HRD as compared to HRM is narrower.
HRM manages and develops the human elements of an organization in its entirety on
longer term basis. HRD focuses on those learning experiences which are organized
for a specific period to bring about the desired behavioral changes.
 HRM emphasizes that employees, their abilities and their attitudes constitute an
important organizational resource that should be used effectively and efficiently to
achieve organizational as well as employees’ goals. HRD emphasizes mainly on
training and development of employees.
 HRM takes decisions on HRD plans. HRD thus depends on the decisions of HRM.
 HRM at its center has HRD. HRD’s cooperation is important for overall success of
HRM. HRD has to work within the realm of HRM and therefore, it’s objectives
should be in tandem with the broader objectives of HRM.
 Thus, HRM and HRD are interdependent. HRM takes care of all the human needs
and tries to satisfy these needs so that the employees are motivated from all the
angles to contribute their best to achieve organizational goals.
 HRD focuses on upgrading the skills and competencies of the employees in order
to improve the performance of the employees on the job.
Thus it is clear that from the above analysis HRM stands for human resources
management, which refers to the art of managing all aspects of the human work force at
a company or organization. HRM aims at providing an optimal working environment for
employees to fully and freely utilize their skills to their best to achieve the company’s
intended output. As human resources management usually applies to big companies and
organizations, it has sub categories, among which is HRD, which stands for human
resources development. This is a component of HRM that focuses on ‘nurturing’
employee’s skills. Because the process of hiring new employees can be long, expensive
and cumbersome, most companies employ the strategy of HRD to promote longevity of
employees within the company because through this an employee is likely to
progressively scale up the managerial ladder. Human resources management of a company
is often an independent department of its own composed of various sections including
recruitment and retention, performance and appraisal management, HRD and
compensation sections. But HRD does not only focus on development of skills and
personal development of employees. Since the peoples’ needs and expectations are ever
growing and changing this section of HRM is specifically there to help employees cope
with such and prepare them for future uncertainties. Generally speaking, professionals
working within the HRM department must have excellent people skills although this is
more so with those particularly working in the HRD section. The HRD section needs to
have professionals with impeccable people management skills as they need to be able to
realize talent within people from a cross section of backgrounds. The HRD section is
concerned with identifying strengths and weaknesses among different employees and
devising training means that aim at making those skills complement the other.

2.7 CASE STUDY

Infosys Technologies Ltd. (Infosys), one of India’s leading information technology
(IT) companies started the ‘Voice of Youth’ (VoY) program in 1994 to harness the creative
energy of its young employees and also develop future leaders. As of 2008, the company
was not only considered one of the most innovative companies globally, but its (VoY)
program also catapulted it to the league of ‘Top Companies for Leaders’.
Issues
Training & development, leadership development, empowerment, motivation and
fostering innovation.
Infosys Technologies Ltd. (Infosys), one of India’s leading information technology
(IT) companies, was founded in 1981. As of early 2008, it had not only established itself
as a technology powerhouse in the global IT arena but had also earned a lot of kudos for
its innovative human resources management (HR) practices.
Questions for Discussion
1. Critically analyze Infosys’ ‘Voice of Youth’ (VoY) program
2. . Do you think such programs help in fostering innovation in the organization? Give
reasons for your answers.
3. What are the effects of such programs on the motivation level of employees?

22
2.8 NOTES
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…………………………………………………………………………………………...........
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…………………………………………………………………………………………...........
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
………
……
……
…………
……
………
………
……………
… ………
…………
………
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
……
………
……
……
…………
……
………
………
……………
… ………
…………
………
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
……
………
……
……
…………
……
………
………
……………
… ………
…………
………
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
……
………
……
……
…………
……
………
………
……………
… ………
…………
………
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
……
………
……
……
…………
……
………
………
……………
… ………
…………
………
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
……
………
……
……
…………
……
………
………
……………
… ………
…………
………
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
……
……
……
……
……
……
.…
…
.…
…
.…
…
.…
…
.…
.…
….…
…
.……
.…
…
.……
.……
………
…………
……
……
……
………
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
………
……
……
……
……
……
………
……
……
…………
……
………
………
……………
… ………
…………
………
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
……
………
……
……
…………
……
………
………
……………
… ………
…………
………
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
……
………
……
……
…………
……
………
………
……………
… ………
…………
………
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
……
………
……
……
…………
……
………
………
……………
… ………
…………
………
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
……
………
……
……
…………
……
………
………
……………
… ………
…………
………
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
……
………
……
……
…………
……
………
………
……………
… ………
…………
………
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
……
………
……
……
…………
……
………
………
……………
… ………
…………
………
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
……
………
……
……
…………
……
………
………
……………
… ………
…………
………
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
……
………
……
……
…………
……
………
………
……………
… ………
…………
………
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
……
………
……
……
…………
……
………
………
……………
… ………
…………
………
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
……
………
……
……
…………
……
………
………
……………
… ………
…………
………
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
………
………
………
…………
………
…………
….…
.…
.…
.….…
…
.…
.…
.…
.…
.…
.…
………
………
………
………
………
………
………
………
………
………
………
………
………
………
………
………
………
………
………
………
………
………
……
……
……
………
……
……
…………
……
………
………
……………
… ………
…………
………
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
……
………
……
……
…………
……
………
………
……………
… ………
…………
………
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
……
………
……
……
…………
……
………
………
……………
… ………
…………
………
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
……
………
……
……
…………
……
………
………
……………
… ………
…………
………
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
……
………
……
……
…………
……
………
………
……………
… ………
…………
………
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
……
………
……
……
…………
……
………
………
……………
… ………
…………
………
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
……
………
……
……
…………
……
………
………
……………
… ………
…………
………
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
……
………
……
……
…………
……
………
………
……………
… ………
…………
………
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
……
………
……
……
…………
……
………
………
……………
… ………
…………
………
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
……
………
……
……
…………
……
………
………
……………
… ………
…………
………
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
……
………
……
……
…………
……
………
………
……………
… ………
…………
………
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
………
……
……
………
……
……
………
……
……
………
…………………………………………………………………………………………………………………………………………………………………………………
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……

24
2.9 SUMMARY
Human Resource Development (HRD) is the framework for helping employees
to develop their personal and organizational skills, knowledge and personal abilities,
however, in this model discussed different aspects like an overview of micro –HRD,
macro HRD –an overview , importance of HRD in Present Context , development of
HRD, differentiation between HRD and HRM.

2.10 KEY WORDS

Employee’s development
Micro and Macro
Differentiation
Organization skills and knowledge.

2.11 SELF ASSESSMENT QUESTIONS

1. What is micro level HRD? Explain
2. Explain the relevance of HRD in changing business environment
3. How does macro level HRD differ from micro level HRD? Describe
4. What are the difference between HRD and HRM? Explain

2.12 REFERENCES
1. Pareek, V and Rao T.V. Designing and Managing Human Resource Systems, New
Delhi: Oxford and IBH Publishing Co., 1981.
2. Rao T.V Pereira D.F. Recent Experiences in Human Resource Development, New
Delhi: Oxford and IBH Publishing Co.,1986
3. Ulrich D – Human Resource Champions, Harvard Business School Press – 1997
4. Kalpana R. – Balance Score Card – Harvard Bkusiness Review, January­February.
(1992)
UNIT-3 : ROLE AND COMPETENCIES OF HRD
PROFESSIONALS

Structure:
3.0 Objectives
3.1 Introduction
3.2 Meaning of HRM Manger
3.3 Qualities of HRM Manger
3.4 Role and competencies of HRD Manager
3.5 Challenges before HRD Manager
3.6 Case study
3.7 Notes
3.8 Summary
3.9 Key Words
3.10 Self Assessment questions
3.11 References

26
3.0 OBJECTIVES
After studying this unit, you should be able to;
• Explain the concept and qualities of HRM Manger
• Discuss the role and competencies HRD Manager
• Highlights the challenges being facing by the HRD Manager

3.1 INTRODUCTION
HR is a product of the human relation movement of the early 20th century, when
researchers began documenting ways of creating business value through the strategic
management of the workforce. The function was initially dominated by transactional
work, such as payroll and benefits administration. However, human resource management
is a function of organizations designed to maximize employee performance in service
of an employer’s strategic objectives. It is primarily concerned with the management of
people within organizations, focusing on policies and system HR departments and units
in organizations typically undertake a number of activities, including employee benefits
design employee recruitment, training, performance appraisal and rewarding. To begin
the business trained professionals may perform HR duties. In larger companies, an entire
functional group is typically dedicated to the discipline, with staff specializing in various
HR tasks and functional leadership engaging in strategic decision­making across the
business. To train practitioners for the profession, institutions of higher education,
professional associations, and companies themselves have established programs of study
dedicated explicitly to the duties of the function. Academic and practitioner organizations
likewise seek to engage and further the field of HR, as evidenced by several field­specific
publications.
Thus it is clear that from the above, HRM, is a function in organizations designed
to maximize employee performance in service of an employer’s strategic objectives.
HR is primarily concerned with the management of people within organizations, focusing
on policies and on systems.
3.2 MEANING OF HRM MANGER
Human resource managers is person who involved with recruitment, training, career
development, compensation and benefits, employee relations, industrial relations,
employment law, compliance, disciplinary and grievance issues, redundancies etc.
Generalist HR roles are usually found in small and medium sized companies, where the
HR manager will deal with the whole range of HR activities. In large multinationals you
will often find specialists, for example in learning and development, recruitment or
employee relations. However, the followings are the activities of HRM.
 Developing HR planning strategies with line managers by considering immediate
and long­term staff requirements
 Recruiting staff by preparing job descriptions and job adverts; deciding on how best
to advertise
 Short listing applicants for interview using a variety of selection techniques
including psychometric testing Interviewing shortlisted candidates
 Advising on pay and other issues, including promotion and benefits; administer payroll
and maintain staff records
 Interpreting and advising on employment legislation; develop and implement policies
on a variety of workplace issues eg disciplinary procedures, absence management,
working conditions, performance management and equal opportunities
 Listening to grievances and implementing disciplinary procedures
 Analyzing training needs in conjunction with line managers; planning and delivering
training, including staff inductions.

3.3 QUALITIES OF HR MANAGER

HR manager plays vital role in trading and non trading organization in order to
ensure optimum utilization of organizational resources; however the following are the
important qualities of the HR Manager
 Knowledge and expertise in Human Resources- HR Managers should possess
foundation on the functions of human resources. And not only this, successful HR
Managers have a zeal to update their knowledge on latest practices and trends in human
resources. With their knowledge and expertise, they deal with the daily challenges that
arise in the organization.
 Communicator- Communication plays a vital role in any organization and HR
takes a major role in this. HR managers play a major role in this. One of the quality of a
good communicator is to have good listening skills. Employees come to HR managers

28
on various issues. Listening to employees with full attention is one of good quality of a
successful HR Manager.
 Presenter- Great presenters attract their audiences’ attention, keep them engaged
and deliver the message in a positive manner. Presentations skills are important quality
of successful HR Managers as they handle several trainings and present the information
to management.
 Innovation- Not every issue has a same or easy or ready solution. Successful HR
Managers think out of the box and deliver the best solution to their employees and the
organization.
 Approachable- HR handles various aspects of employees. Successful HR
Managers have an open door policy and are approachable to their employees.
 Time Management and Self Discipline- Successful HR Managers are good at
managing their time. They plan their day not just to complete their day­to­day activities
but also cater time for sudden issues.
 Delegator - It’s not possible to do all the work by one person. And this is
understood by successful HR Managers. HR Managers delegate work to their team
members so that they get learned and grow as a professional.
 Decision maker- Successful HR Managers are strategic planners and take
decisions which are apt and considering all the facts. They are not afraid to make the
hard decisions for the benefit of the organization.
 Business Acumen- Business acumen is keenness and quickness in understanding
and dealing with a business situation in a manner that is likely to lead to a good outcome.
Successful HR managers possess good knowledge and understanding of the financial,
accounting, marketing and operational functions of an organization.
 Trust Advisor- Employees will open to someone they trust and seek advice on
various areas. This may not be limited to their career but also can be from their personal
life. Successful HR Managers advice employees by creating an environment of trust.
Successful HR Managers build trust through straight forward communications and
interactions.
 Motivator- Every employee has different goals and objectives to achieve.
Successful HR Managers are committed to motivate. Successful HR Managers know
and understand what motivates employees and strive to give it to them.
 Leader- A leader is one who visualizes big picture, focus on people, progress and
achievements, does the right thing and encouraging a rewarding culture. And this is what
the successful HR Managers possess.
 Metric Oriented- Successful HR Managers have a flair for metrics as these are
useful in improvising various processes in the organization.

3.4 ROLE AND COMPETENCIES OF HRD MANAGER

The business is a dynamic in nature; it always needs to work under changing
business environment and act according to changing needs of the stakeholders of
organization. However, HRD professionals play the following role.
• HRD is about improved performance and productivity through increased
knowledge, competencies, skills, and attitudes. In other words, HRD is about learning,
its effects on employees, and its impact on the organization. The manager of HRD is the
person responsible for the management of learning within the organization and the
development of programs and activities that foster growth.
• Strategic adviser to help the decision makers on issues related with HRD.
They also play the role of an HR systems designer and developer by assisting the HR
management in designing and developing HR systems in an organization to increase its
performance.
• The HRD manager is the principal evaluator of the impact of the HRD
program on overall organizational efficiency. Within this sub role, the manager is
responsible for the design, development, and implementation of program evaluations as
well as cost/benefit programs. Each of these is used to determine the effects of learning
on the employees and the organization. HRD managers are also responsible for the
evaluation of career development programs and organizational development activities.
The evaluation of the effectiveness of learning specialists, instructional designers, and
consultants is another part of this sub­role. In summary, the HRD manager is accountable
for the evaluation of all aspects of the HRD program, its results, its effectiveness, its
impacts, and its practitioners.
• They also act as organizational change agents by helping the management
in designing and implementing change strategies to transform the organization. The result
is more efficient work teams, intervention strategies, quality management and change
reports. The role of organization design consultant is also played by them when they

30
advised the management on work systems design and efficient use of available human
resources. HR professionals work as instructional designer or learning programme
specialist when they identify the needs of the employees and develop and design the
required learning programmes. They also prepare materials and other learning aids for
these programmes.
• An HRD professional dons the role of career counselor when he assists individual
employees in assessing their knowledge and skills to development realistic career
development plan for the employee. The role of a coach or a performance consultant is
played by them when they advised line managers about the appropriate intervention
designed to improve the performance of the group or an individual. HRD Professionals
act as researchers when they assess the human resource development practices and
programmes with the help of appropriate statistical procedure to find out their
effectiveness and then they communicate the results to the top level management.

3.5 CHALLENGES BEFORE HRD MANAGER

The HRD manager chair is not a bed of rose, the HRD manager facing many
challenges, these are as follows
 Culture or attitude­ Different countries have different culture and as the world has
become a global village HRD Professionals have to face the cultural challenges in
different countries or with the employees belonging to the different countries.
 Technology or skills­ The pace of technological development is very high and the
new technologies are replacing the older ones quickly. Same is the case with
techniques and technologies use for training. An HR professional has to upgrade
his skills and knowledge to meet the requirements of the new generation.
 Values of behavior­ The HRD professionals have to adjust themselves to the emerging
new values as principle centric leadership is becoming trend in the corporate world.
Values like trust credibility timeliness and the simpler rules are becoming the
corners stone of many businesses.
 Knowledge or information­ Enhancement of knowledge is also a big challenge for
HRD professional as they have to understand the different philosophies
demonstrated at different places in the world. For example the philosophy related
to leadership changes dramatically in organizations from different parts of the world
 Life style or habits­ The life style of an employee is also important for HRD
professionals because they have to understand the habits of the employees and then
decide the training that needs to be imparted for bringing a change in the habits of
the employees.
 Knowledge of new practices­An HRD professional has to be aware of the new
practices adopted by the organization around globe. An HRD professional should
know about the practices like dignity of individual, retention of employees,
leadership by examples, clear conscience relationship with employees share holder,
vendors, suppliers, customers and society at large.
 Environment­An open environment is required for the success of an organization.
The organizational environment should have meritocracy, fearless, justice, speed
imagination and accountability. It is the job of the HRD professional to inspire the
employee to perform better ones this environment is created in the organization.
 This role is often viewed as the primary role of a manager of HRD. It consists; the
five basic elements of management—planning, organizing, staffing, cc trolling, and
marketing. Each of these elements will be addressed in detail la in this chapter.
Some of the areas that will be examined include:

3.6 CASE STUDY

The purpose of this case study is to explain a specific type of intervention that is
both an interpersonal intervention, and also a techno­structural intervention. A fictitious
situation of a conflict between three senior executives (called Role Incumbents) in a
work group is presented. Through an iterative process, each of these three incumbents
lists the tasks to be performed as a part of one’s role. This is followed by an understanding
of one’s tasks in relation to the others in terms of extent of interaction. Finally, each of
these role incumbents proposes a set of behaviors expected of the other two role
incumbents, leading to successful working relation.
Issues
• Application of Role Negotiation technique,
• To Clarify job expectations and
• Resolve inter­personal conflicts in a work group

32
 Dave Franklin (Dave), Vice­President Operations, Agile Motors, knew there was
trouble brewing as soon as he stepped into the banquet hall. Instead of a glittering array
of crockery, vintage wine, and smartly dressed waiters, all he could see was chaos, and
two of his senior most executives ­Jane Anniston (Jane, Manager­Corporate Events)¸and
Tim Malkovich (Tim, Manager­Sales) engaged in an animated argument. The hors
d’oeuvres (appetizers) were there on the tables but had not been arranged.
Questions
1) What are the reasons of conflict between the three role incumbents?
2) What do you think are the work behaviors that hinder employee productivity?
3) Which of the following­ threats or positive incentives do you think will yield the
best results in a role negotiation technique?
4) Are the behavioral changes in the incumbents permanent?
5) Can role negotiation technique be applied to large work groups?

3.7 NOTES
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……………………………………………………………………………………………..
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
……
………
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…

34
3.8 SUMMARY
From the above it is clear that HRD Professionals have different role VIZ.,
evaluator of the HRD program’s impacts and effects on organizational efficiency,
management of the organizational learning system, operational manager responsible for
the planning, organizing, staffing, controlling, and coordinating of the HRD department,
strategist responsible for long­term planning and integrating of HRD into the
organization, and marketing specialist responsible for the advancement of HRD within
the organization through well defined and effective networks. However, this unit covered
aspects like who is HR Manager, Qualities of HRM manger , role and competencies
HRD manager , challenges before HRD manager , case studies etc ,qualities of HRM
manger , role and competencies HRD manager , challenges before HRD manager , case
studies etc.

3.9 KEY WORDS

Professionals
Evaluator
Organizational efficiency
Effective networks
Competencies
Challenges
Integrating and controlling
Coordinating.

3.10 SELF ASSESSMENT QUESTIONS

1. Who is HR Manager?
2. What are the qualities of HR Manager?
3. Explain the role and competency of HRD Manager under changing business
environment.
4. HRD manager job is not a bed of roses. Comment
3.11 REFERENCES
1. Pareek, V and Rao T.V. Designing and Managing Human Resource Systems, New
Delhi: Oxford and IBH Publishing Co., 1981.
2. Rao T.V Pereira D.F. Recent Experiences in Human Resource Development, New
Delhi: Oxford and IBH Publishing Co.,1986
3. Ulrich D – Human Resource Champions, Harvard Business School Press – 1997
4. Kalpana R. – Balance Score Card – Harvard Bkusiness Review, January­February.
(1992)

36
UNIT – 4: PERFORMANCE MANAGEMENT SYSTEM

Structure:
4.0 Objectives
4. 1 Introduction
4.2 Meaning of Performance Management system
4.3 Objectives of Performance Management system
4.4 Benefits of Performance Management system
4.5 Components of Performance Management system
4.6 Phases of Performance Management System
4.7 Performance appraisal and performance management
4.8 Assessment Centre
4.9 Role of Assessment Centre
4.10 Case study
4.11 Notes
4.12 Summary
4.13 Key words
4.14 Self Assessment questions
4.15 References
4.0 OBJECTIVES
After studying this unit, you should be able to;
• To study the concept and objectives of Performance Management system
• Explain the Role of Performance Management system
• Explain the Components of Performance Management system
• Discuss the Phases of Performance Management System
• Explain the Performance appraisal and performance management
• Bring out an overview of Assessment Centre

4.1 INTRODUCTION
The globalization leads cut throat competition and it is threats to business
communities, in order to overcome the threats, they needed strategic HR practices for
gaining a competitive edge over the competitors. However, a well designed performance
management system can play a crucial role in streamlining the activities of the employees
in an organization for realizing the ultimate corporate mission and vision. Many scholars
argue that performance management is a useful tool for aligning all the major
organizational functions and sub functions so that the focus is directed towards attainment
of the organizational goal. The Performance management is a much broader system as it
is linked with the processes of planning, implementing, reviewing and evaluating, for
augmenting growth and productivity at both the individual and organizational level.
However, managing the performance of the employees is one of the toughest challenges
which the organizations are facing today as this completely depends upon the employee’s
commitment, competence and clarity of performance. If managed efficiently through a
well planned reward practice and feedback mechanism, a performance management
system can serve as an important tool for employee motivation and development.

4.2 MEANING OF PERFORMANCE MANAGEMENT SYSTEM

Performance management is the term used to refer to activities, tools, processes,
and programs that companies create or apply to manage the performance of individual
employees, teams, departments, and other organizational units within their organizational
influence.

38
 In contrast, performance appraisal refers to the act of appraising or evaluating
performance during a given performance period to determine how well an employee, a
vendor or an organizational unit has performed relative to agreed objectives or goals,
and this is only one of many important activities within the overall concept of performance
management.
Performance management is an ongoing process of communication between a
supervisor and an employee that occurs throughout the year, in support of accomplishing
the strategic objectives of the organization. The communication process includes
clarifying expectations, setting objectives, identifying goals, providing feedback, and
reviewing results.
Performance management is a systematic process in which it involves its employees,
as individuals and members of a group, in improving organizational effectiveness in the
accomplishment of agency mission and goals.
Performance management involves the way managers evaluate employees, how
employees evaluate their managers and fellow employees, and how individual workers
evaluate themselves. The ultimate goal of performance management is to improve the
quality of work in the most efficient manner possible.
Performance management relies on the analysis of how an organization’s
employees have historically accomplished tasks in an effort to improve future
performance. Effective managers seek to provide feedback to and receive feedback from
employees continuously, rather than rely on occasional appraisals. This allows a manager
to determine what motivates employees to work hard, evaluate what obstacles are making
it difficult for employees to effectively do their jobs, and make adjustments to employee
workloads as necessary.
Thus it is clear that from the above analysis the performance management is the
current buzzword and is the need in the current times of cut throat competition and the
organizational battle for leadership. Performance management is a much broader and a
complicated function of HR, as it encompasses activities such as joint goal setting,
continuous progress review and frequent communication, feedback and coaching for
improved performance, implementation of employee development programmes and
rewarding achievements. In addition to above the performance management
4.3 OBJECTIVES OF PERFORMANCE MANAGEMENT SYSTEM
The following are the important objectives of performance management system
 To enable the employees towards achievement of superior standards of work
performance.
 To help the employees in identifying the knowledge and skills required for
performing the job efficiently as this would drive their focus towards performing
the right task in the right way.
 Boosting the performance of the employees by encouraging employee
empowerment, motivation and implementation of an effective reward mechanism.
 Promoting a two way system of communication between the supervisors and the
employees for clarifying expectations about the roles and accountabilities,
communicating the functional and organizational goals, providing a regular and a
transparent feedback for improving employee performance and continuous coaching.
 Identifying the barriers to effective performance and resolving those barriers through
constant monitoring, coaching and development interventions.
 Creating a basis for several administrative decisions strategic planning, succession
planning, promotions and performance based payment.
 Promoting personal growth and advancement in the career of the employees by
helping them in acquiring the desired knowledge and skills.
 Developing clear job descriptions and employee performance plans which includes
the key result areas (KRA’) and performance indicators.
 Selection of right set of people by implementing an appropriate selection process.
 Negotiating requirements and performance standards for measuring the outcome
and overall productivity against the predefined benchmarks.
 Providing continuous coaching and feedback during the period of delivery of
performance.
 Identifying the training and development needs by measuring the outcomes achieved
against the set standards and implementing effective development programs for
improvement.

40
 Holding quarterly performance development discussions and evaluating employee
performance on the basis of performance plans.
 Designing effective compensation and reward systems for recognizing those
employees who excel in their jobs by achieving the set standards in accordance with
the performance plans or rather exceed the performance benchmarks.
 Providing promotional/career development support and guidance to the employees.
Performing exit interviews for understanding the cause of employee discontentment
and thereafter exit from an organization.

4.4 BENEFITS OF PERFORMANCE MANAGEMENT SYSTEM

Globalization has presented companies with new opportunities for growth, but
has also increased the complexities of managing the performance of a workforce coming
from different cultures. Managers have to ensure that employees are governed according
to a company’s policies, but must also ensure that cultural norms are taken into account.
Managers must understand what drives employees to work effectively. While monetary
compensation may be considered important in some cultures, others may consider
empathy towards the employee’s personal and familial well being to be a greater motivator.
However, the following are the benefits of performance management system
• Growth of sales, Reduce costs, Stop project over runs, Aligns the organization
directly behind the CEO’s goals and d ecreases the time to create strategic or
operational changes .
• Optimizes incentive plans to specific goals for over achievement.
• Improves employee engagement because everyone understands how they are directly
contributing to the organizations to achieve goals
Improved management control , like flexible, responsive to management needs,
displays data relationships, helps audit / comply with legislative requirement, simplifies
communication of strategic goals scenario planning, provides well documented and
communicated process documentation
4.5 COMPONENTS OF PERFORMANCE MANAGEMENT
SYSTEM
The followings are the important components of Performance management system
 Performance Planning – It is first and important components of
performance management process which forms the basis of performance appraisals.
Performance planning is jointly done by the appraisee and also the review in the beginning
of a performance session. During this period, the employees decide upon the targets and
the key performance areas which can be performed over a year within the performance
budget. Which is finalize on the basis of mutual agreement between the reporting officer
and the employees.
 Performance Appraisal and Reviewing- The appraisals are normally
performed twice in a year in an organization in the form of mid reviews and annual reviews
which is held in the end of the financial year. In this process, the appraise first offers the
self filled up ratings in the self appraisal form and also describes his/her achievements
over a period of time in quantifiable terms. After the self appraisal, the final ratings are
provided by the appraiser for the quantifiable and measurable achievements of the
employee being appraised. The entire process of review seeks an active participation of
both the employee and the appraiser for analyzing the causes of loopholes in the
performance and how it can be overcome. This has been discussed in the performance
feedback section.
 Feedback on the Performance and counseling - Feedback and counseling
is given a lot of importance in the performance management process. This is the stage in
which the employee acquires awareness from the appraiser about the areas of
improvements and also information on whether the employee is contributing the expected
levels of performance or not. The employee receives an open and a very transparent
feedback and along with this the training and development needs of the employee is also
identified. The appraiser adopts all the possible steps to ensure that the employee meets
the expected outcomes for an organization through effective personal counseling and
guidance, mentoring and representing the employee in training programmes which develop
the competencies and improve the overall productivity.
 Rewarding good performance- This is a very vital component as it will
determine the work motivation of an employee. During this stage, an employee is publicly
recognized for good performance and is rewarded. This stage is very sensitive for an

42
employee as this may have a direct influence on the self esteem and achievement
orientation. Any contributions duly recognized by an organization helps an employee in
coping up with the failures successfully and satisfies the need for affection.
 Performance Improvement Plans- In this stage, fresh set of goals are
established for an employee and new deadline is provided for accomplishing those
objectives. The employee is clearly communicated about the areas in which the employee
is expected to improve and a stipulated deadline is also assigned within which the
employee must show this improvement. This plan is jointly developed by the appraise
and the appraiser and is mutually approved.
 Potential Appraisal - Potential appraisal forms a basis for both lateral
and vertical movement of employees. By implementing competency mapping and various
assessment techniques, potential appraisal is performed. Potential appraisal provides
crucial inputs for succession planning and job rotation.

4.6 PHASES OF PERFORMANCE MANAGEMENT SYSTEM

The performance management system develop over a period of time , the followings
are the important phases of Performance Management System.
• First Phase- It was traced in the early 1960’s when the performance
appraisal systems were in practice. During this period, Annual Confidential Reports
(ACR’s) which was also known as Employee service Records were maintained for
controlling the behaviors of the employees and these reports provided substantial
information on the performance of the employees. Any negative comment or a remark
in the ESR or ACR used to adversely affect the prospects of career growth of an employee.
The assessments were usually done for ten traits on a five or a ten point rating scale
basis. These traits were job knowledge, sincerity, dynamism, punctuality, leadership,
loyalty, etc.
• Second Phase- This phase continued from late 1960’s till early 1970’s,
and the key hallmark of this phase was that whatever adverse remarks were incorporated
in the performance reports were communicated to the employees so that they could
take corrective actions for overcoming such deficiencies. In this process of appraising
the performance, the reviewing officer used to enjoy a discretionary power of overruling
the ratings given by the reporting officer.
 • Third Phase- In this phase the term ACR was replaced by performance
appraisal. One of the key changes that were introduced in this stage was that the employees
were permitted to describe their accomplishments in the confidential performance
reports. The employees were allowed to describe their accomplishments in the self
appraisal forms in the end of a year. Besides inclusion of the traits in the rating scale,
several new components were considered by many organizations which could measure
the productivity and performance of an employee in quantifiable terms such as targets
achieved, etc. Certain organizations also introduced a new section on training needs in
the appraisal form. However, the confidentiality element was still being maintained and
the entire process continued to be control oriented instead of being development oriented.
• Fourth Phase – This phase was started in mid 1970’s and its origin was in
India as great business tycoons like Larsen & Toubro, followed by State Bank of India
and many others introduced appreciable reforms in this field. In this phase, the appraisal
process was more development driven, target based (performance based), participative
and open instead of being treated as a confidential process. The system focused on
performance planning, review and development of an employee by following a methodical
approach. In the entire process, the appraise (employee) and the reporting officer
mutually decided upon the key result areas in the beginning of a year and reviewed it
after every six months. In the review period various issues such as factors affecting the
performance, training needs of an employee, newer targets and also the ratings were
discussed with the appraise in a collaborative environment.
• Fifth Phase: This phase was characterized by maturity in approach of
handling people’s issues. It was more performance driven and emphasis was on
development, planning and improvement. Utmost importance was given to culture
building, team appraisals and quality circles were established for assessing the
improvement in the overall employee productivity.

4.7 PERFORMANCE APPRAISAL AND PERFORMANCE

MANAGEMENT
The main objective of the performance appraisal system was to exercise control
over the activities of the employees through disciplinary actions and management of
rewards and promotions. The supervisors were expected to rate their employees on
certain traits ranging between a scale of unsatisfactory to outstanding performance and
these ratings were susceptible to various errors like central tendency, bias, halo effect,
etc.

44
 Performance appraisals were mostly carried out annually for measuring the degree
of accomplishment of an individual and were implemented on a top down basis in which
the supervisors had a major role to play in judging the performance of an employee
without soliciting active involvement of the employee. Performance appraisals were
mostly discredited because it was backward looking concentrating largely on the
employee’s inabilities and flaws over a period of a year instead of looking forward by
identifying the development needs of the employees and improving them. Traditionally,
the performance appraisals were organized in a bureaucratic manner and suffered from
unnecessary delays in decisions and corruption. Performance appraisals were mostly
narrowly focused and functioned in isolation without bearing any linkage with the overall
organizational vision or goals. The side effects of the performance appraisal system was
it generated skepticism amongst the managers and the employees on any new initiative
of the HR.
In the present scenario, the organizations have shifted their focus from
performance appraisals to performance management as a result of internationalization
of human resources and globalization of business.
A table depicted below shows a comparison between performance appraisal and
performance management

Performance Appraisal Performance Management

Focus is on top down assessment Stresses on mutual objective setting
through a process of joint dialogue
Performed annually Continuous reviews are performed
Usage of ratings is very common Usage of ratings is less common
Focus is on traits Focus is on quantifiable objectives,
values and behaviors

4.8 ASSESSMENT CENTRE

An assessment centre is a process where candidates are assessed to determine
their suitability for specific types of employment, especially management or military
command. The candidates’ personality and aptitudes are determined by a variety of
techniques including interviews, group exercises, presentations, examination and
psychometric testing.
 An Assessment Center can be defined as “a variety of testing techniques designed
to allow candidates to demonstrate, under standardized conditions, the skills and abilities
that are most essential for success in a given job.
The term assessment center” is really a catch­all term that can consist of some or
all of a variety of exercises. Assessment centers usually have some sort of in­basket
exercise which contains contents similar to those which are found in the in­basket for
the job which is being tested. Other possibilities include oral exercises, counseling
simulations, problem analysis exercises, interview simulations, role play exercises,
written report/analysis exercises, and leaderless group exercises.
Assessment centers allow candidates to demonstrate more of their skills through
a number of job relevant situations.

4.9 ROLE OF ASSESSMENT CENTRE

Assessment centers are a combination of job­related simulation, tests, and
exercises to assess job­related behavior and performance. The use of assessment centers
in human resource management extends to recruitment, promotions, training, and
leadership development. However, the following explanation explains the role of
assessment centre in different area.
1. Recruitment
• Assessment centers make an excellent hiring tool owing for many reasons.
• Unlike other selection methods such as the interview, written tests, or group
discussions, it allows simulation of real­job situations, especially interacting with
others.
• It assesses a candidate’s “practical thinking” ability in approaching job­relevant tasks.
• It helps assess the candidate’s communication, negotiation, and interpersonal skills,
all in one go.
• It brings objectivity in the selection process, with all candidates provided with the
equal settings and tasks in the same environment.
• It allows for assessment based on behavior. As people do not know what to expect
in the assessment center, they take their own behavior. This is unlike interviews,
psychometric tests, or group discussions, where one­off behaviors can easily
influence selection outcomes

46
2. Promotions and Placements
The assessment center allows standardized evaluation of the candidate’s skills
and abilities in job­relevant situations. This makes it a good tool for promotion and
placement of existing employees. Assessment center uses also extend to succession
planning numerous studies establish that assessment center methodology has greater
validity for promotion and selection compared to traditional techniques.
3. Training and Development
Assessment centers also constitute an important method of skill enhancement
through simulations, especially interpersonal skills that cannot easily be imparted through
traditional training methods. Assessment centers provide individual­specific feedback
that helps candidates understand their own strength and weaknesses. This allows planning
of individual career paths focusing on employee core competencies, and also allowing
for framing of individual training and development plans to overcome the weaknesses.
The use of assessment centers has enabled employees to make greater use of planning
tools, strengthen their listening skills, become more open minded and proactive, and
use technology better. It has helped organizations increase goal setting, build stronger
teams, increase sensitivity, and recognize the employee’s contributions in a better way.

4.10 CASE STUDY

Rohit Narang joined Apex Computers (Apex) in November after a successful stint
at Zen Computers (Zen), where he had worked as an assistant programmer. Rohit felt
that Apex offered better career prospects, as it was growing much faster than Zen, which
was a relatively small company. Rohit joined as a Senior Programmer at Apex, with a
handsome pay hike. He joined Aparna Mehta’s five­member team. While she was efficient
at what she did and extremely intelligent, she had neither the time nor the inclination to
groom her subordinates. Time and again, Rohit found himself thinking of Suresh, his old
boss, and of how he had been such a positive influence. Aparna, on the other hand, even
without actively doing anything, had managed to significantly lower his motivation levels.
Issues
Motivation and need for recognition
Questions
1. What, according to you, were the reasons for Rohit’s disillusionment? Answer the
question using Maslow’s Hierarchy of Needs.
2. What should Rohit do to resolve his situation? What can a team leader do to ensure
high levels of motivation among his/her team members?

4.11 NOTES
…
……
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
…
……………
……………
………………
……………
………………
……………
………………
……………
………………
……………
………………
……………
………………
…………
…
……
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
…
……………
……………
………………
……………
………………
……………
………………
……………
………………
……………
………………
……………
………………
…………
…
……
……
……
………
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
………
……
…
…
……
……
……
………
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
………
……
…
…
……
………
……
………
………
……
………
……
………
……
………
……
………
……
………
……
………
……
………
……
………
……
………
………
……
………
……
………
……
………
……
………
……
………
……
………
……
………
………
……
………
…
…
……
……
……
……
……
………
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
…
…
……
……
……
……
……
………
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
…
…
……
……
……
……
……
………
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
…
…
……
……
……
……
……
………
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
…
…
………………
…………………
………………
……………
…………………
…………………
…………………
…………………
…………………
…………………
…………………
…
…
……
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
…
……………
……………
………………
……………
………………
……………
………………
……………
………………
……………
………………
……………
………………
…………
…
……
……
……
………
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
………
……
…
…
……
……
……
………
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
………
……
…
…
……
………
……
………
………
……
………
……
………
……
………
……
………
……
………
……
………
……
………
……
………
……
………
………
……
………
……
………
……
………
……
………
……
………
……
………
……
………
………
……
………
…

48
…
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
…
…
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
…
…
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
…
…
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
…
…
………………
………………
……………
…………………
…………………
…………………
…………………
…………………
…………………
…………………
…………………
…
…
……
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
…
……………
……………
………………
……………
………………
……………
………………
……………
………………
……………
………………
……………
………………
…………
…
……
……
……
………
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
………
……
…
…
……
……
……
………
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
………
……
…
…
……
………
……
………
………
……
………
……
………
……
………
……
………
……
………
……
………
……
………
……
………
……
………
………
……
………
……
………
……
………
……
………
……
………
……
………
……
………
………
………
……
…
…
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
…
…
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
…
…
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
…
…
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
…
…
………………
………………
……………
…………………
…………………
…………………
…………………
…………………
…………………
…………………
…………………
…
…
……
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
…
……………
……………
………………
……………
………………
……………
………………
……………
………………
……………
………………
……………
………………
…………
…
……
……
……
………
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
………
……
…
…
……
……
……
………
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
………
……
…
…
……
………
……
………
………
……
………
……
………
……
………
……
………
……
………
……
………
……
………
……
………
……
………
………
……
………
……
………
……
………
……
………
……
………
……
………
……
………
………
………
……
…
…
……
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
……
………
……
……
……
……
……
……
…
……………
……………
………………
……………
………………
……………
………………
……………
………………
……………
………………
……………
………………
…………
…
……
……
……
………
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
………
……
…
…
……
……
……
………
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
……
………
……
……
……
………
……
…
…
……
………
……
………
………
……
………
……
………
……
………
……
………
……
………
……
………
……
………
……
………
……
………
………
……
………
……
………
……
………
……
………
……
………
……
………
……
………
………
………
……
…
4.12 SUMMARY
Performance management system deals with aspects like managers evaluate
employees and employees evaluate their managers and fellow employees. However, this
unit attempt to explain aspects like concept performance management system, objectives
of performance management, role of performance management system , components
of performance management system, phases of performance management system and
assessment centre.

4.13 KEY WORDS

Performance management system, assessment centre, components, and
performance appraisal.

4.14 SELF ASSESSMENT QUESTIONS

1. What is performance management system? Explain
2. What are the objectives of performance management system? Explain
3. Write an analytical note on components of performance management system.
4. Distinguish between performance management system and performance appraisal
5. What is assessment centre? Explain its role in performance management.

4.15 REFERENCES
1. Pareek, V and Rao T.V. Designing and Managing Human Resource Systems, New
Delhi: Oxford and IBH Publishing Co., 1981.
2. Rao T.V Pereira D.F. Recent Experiences in Human Resource Development, New
Delhi: Oxford and IBH Publishing Co.,1986
3. Ulrich D – Human Resource Champions, Harvard Business School Press – 1997
4. Kalpana R. – Balance Score Card – Harvard Business Review, January­February.
(1992)

50
 BLOCK - 2 : HRD PROCESS
UNIT-5 : HUMAN RESOURCE DEVELOPMENT
PROCESS

Structure:
5.0 Objectives
5.1 Introduction
5.2 Meaning / Definitions of HRD
5.3 Historical Perspective of HRD
5.4 Objective of HRD
5.5 Important Characteristics of HRD
5.6 Importance of HRD
5.7 Benefits of HRD
5.8 Difference between HRM and HRD
5.9 Case study
5.10 Notes
5.11 Summary
5.12 Key words
5.13 Self Assessment Questions
5.14 References
5.0 OBJECTIVES
After studying this unit, you should able to;
• Define the Human Resource Development
• Explain the Historical Perspective of HRD
• Discuss the Emergence/ Need of HRD
• Analysis the Importance of HRD
• Discuss distinguish between HRM and HRD

5.1 INTRODUCTION
Human resource development is the process of developing the human resource working
in an organization by modernizing their knowledge and upgrading their skills, attitudes and
perceptions in order to meet out the changing trends of the globalised economy and also to
utilize those developments for the attainment of the organizational goals . In the present
scenario of globalization and liberalization, it is extremely important to understand the real
worth of the people in any organization. It is not sufficient to address people as the strategic
asset of the organization but to believe that they are the real and the most important asset in
any organization or firm. People are not just the packet of acquaintance and skills but they
are the free agents who are proficient of handling the competition and dynamism of this era
with their potential and are capable of bringing colossal values to an organization. HRD as an
activity is extremely significant in achieving organizational excellence i.e. to excel with
people, process and performance. To be a survivor in the present scenario of cut-throat
competition, the organizations have to develop some appropriate HRD strategies to manage
their work force in an organized manner and align their potential with that of their corporate
missions and objectives (Deb: 2010)
Before going into the depth of the subject, it is worthwhile to comprehend the term
clearly. The term ‘HRD” comprises of two words i.e. ‘Human Resource’ and ‘Development’
which has to be defined separately. ‘Human resources’ in a general way are the people and
their characteristics at work either at the national level or organizational level. In the words
of Megginson “ From the national point of view, human resources are knowledge, skills,
creative abilities, talents and attitudes obtained in the population; whereas from the viewpoint
of the individual enterprise , they represent the total of the inherent abilities, acquired
knowledge and skills as exemplified
in the talents and aptitudes of its employees” and ‘Development’ is the acquisition of
capabilities that are needed to perform the present job or the future expected job.
Human Resource Development aims at assisting people to acquire competencies that
are being required to perform their duties in an efficient manner and to let the organization
ripe the fruits of their know-how and talents. HRD is a process which is needed to make the
people grow continuously and growth of people will ultimately lead to the growth and
development of the organization. It is the fundamental responsibility of HRD department to
develop their manpower in a manner that could make them capable enough of handling the
managerial obligations in a pervasive way and to sharpen their know-how in direction of
meeting out the dynamic challenges of time. HRD process might have existed to some extent
in India earlier, but a professional outlook to HRD began only in 1970s. Larsen and Tourbo
was perhaps the first company in India to design and implement a far-reaching and an integrated
system of HRD in their company. Since, human resources are considered to be the lifeblood
of any innovative enterprise, their development and growth will also become the concern of
the organization they are working with. HRD as an activity and as a process plays a crucial
and noteworthy role in identifying the hidden potential of the workforce employed in the
said organization and to polish their skills, talents and technical knowledge in order to develop
them and to prepare them for facing the challenges on their own. It aligns the goals of the
individual human and of the organization for the sole purpose of their fulfillment. Human
resource is the most vital resource of any organization and with the rapidly changing market
conditions, rising expectations of employees, technological advancement and amendments
in management systems have necessitated the acknowledgement of development aspect for
human resource and to recognize the significance of their up gradation and progression.
Hence, we could say that HRD is an organized learning experience aimed at matching
the need of the organization with those of the need of the individuals for career growth and
development. It is a systematic process of producing behavioral changes in human workforce
to develop their knowledge and skills to become capable of facing the competitive edge in
today’s globalized era.

5.2 MEANING / DEFINITIONS OF HUMAN RESOURCE

DEVELOPMENT
To appreciate the significance of the term ‘HRD’ many economists, thinkers, social
scientists, and industrialists come forward to define the term from different aspects. Certain
eminent definitions of HRD are:
 “Human Resources Development (HRD) as a theory is a framework for the expansion
of human capital within an organization through the development of both the organization
and the individual to achieve performance improvement” (Kelly: 2001).
In the words of M.N. Khan “HRD is the process of increasing knowledge, skills,
capabilities and positive work attitude and values of all people working at all levels in a
business undertakings” ( Khan:1987).
According to Pareek, U: 1991, “HRD is a new systematic approach to proactively
deal with issues, related to individual employees and teams, and organizations and a movement
to develop organizational capability to manage change and challenge” (quoted by Singh:
2008).
Prof C.S. Sanker observes, “HRD is a development oriented planning efforts in the
personnel area which is basically concerned with the development of human resources in the
organization for improving the existing capabilities and acquiring new capabilities for
achievement of the corporate and individual goals” (Sanker :1984).
Dr. Len Nadler says, “HRD means an organized learning experience, with an objective
of producing the possibility of performance change” (quoted by Gupta and Gupta: 2008).
HRD in Organizational context has been rightly defined by T.V.Rao and his definition,
which has also been termed as the national definition of HRD in India.
According to Prof. T.V.Rao, HRD is a continuous process to:
 Acquire or sharpen capabilities required to perform various functions associated with
present and future needs of the job.
 Develop their general capabilities as an individual and enable them to exploit their
inner potential.
 Develop a congenial organizational climate in which dyadic relationship and team
 Collaborations among sub-units are strong and contribute to the professional wellbeing
of employees (Pareek and Rao: 1981).

5.3 HISTORICAL PERSPECTIVE OF HRD

The early part of the century witness a concern for improved efficiency through careful
design of work. Emphasis of improved efficiency had been shifted to the availability of the
managerial personnel and employee productivity during the middle of the century. Recent
decades have focused on the demands for technical personnel, responses to the new legislation
and regulatory framework of the government, increased concern for the quality of working,
Total Quality Management (TQM), and a renewed emphasis on productivity. The term HRD
has been growing at a very fast pace in the recent past. But the formal introduction of the
concept was done by Prof. Len Nadler in 1969 in American Society for Training and
Development Conference. In India, it Larsen and Toubro ltd was the first company to design
and implement this concept in 1975 among the private sector companies with an objective
of facilitating growth of employees, especially people at the lower levels. Among the public
sector government company, it was BHEL which introduced this concept in 1980. The
development of human resources in UK and USA was largely voluntary. But in India, it emerged
because of governmental interventions and compulsions. It focuses the developmental aspects
of human resources with a pragmatic and a flexible approach. The intended purpose of HRD
efforts is to gain a competitive advantage in the market place through a superior workforce.
There are several trends from which the concept of HRD has emerged. Let us look
into those trends more closely by examining the transformation of personnel function from
one stage to another in a chronological sequence.
Evolution of HRD in a Chronological Sequence
Concept Description
Human resource was referred as ‘a commodity’ to
be bought and sold. Wages were decided on the
The Commodity concept basis of demand and supply forces. Government
also did not care much about the work force at that
time.
Labour is treated as any other factor of production,
The Factor of Production Concept
viz; money, material, land, etc.
Welfare measures like safety, first aid, lunch room,
rest room etc. These measures proved to be a source
The Goodwill Concept
of boosting up the morale of workers, and
enhancing their performance.
Management must assume a fatherly and protective
attitude towards employers. Paternalism does not
The Paternalistic Concept mean merely providing benefits but it signifies to
satisfy various needs of employees just as parents
meet the requirements of the children.
To improve the productivity, physical, social and
psychological needs of workers must be fulfilled.
Elton Mayo and some other along with him stated
The Humanitarian Concept that money is less a factor in determining output,
than group standards, group incentives and security.
The Organization is a social system that has both
economic and social dimensions.
 To improve the productivity, physical, social and
psychological needs of workers must be fulfilled.
Elton Mayo and some other along with him stated
The Humanitarian Concept that money is less a factor in determining output,
than group standards, group incentives and security.
The Organization is a social system that has both
economic and social dimensions.
From the Commodity concept, going through the
factor of production, goodwill
and paternalism, the era of concepts moves towards
the humanitarian and human resource
concept and finally reaching to the concept of HRD.
Therefore, the above mentioned
The Human Resource Concept
table exhibits the chronological arrival of various
concepts that have prevailed and are
prevailing in the society at large. (Rao: 2005)There
should be a conscious effort to realize
organizational goals by satisfying needs and
aspirations of employees.
Employees should be accepted as partners in the
progress of a company. They should have a feeling
that the organization is their own. To this end,
managers must offer better quality of working life
The Emerging Concept: HRD
and provide opportunities to people to exploit their
potential fully. There should be opportunities for
self fulfillment in one’s work. The focus should be
on.

(Source: Rao, V.S.P (2005), Excel Books, New-Delhi)

 From the Commodity concept, going through the factor of production, goodwill and
paternalism, the era of concepts moves towards the humanitarian and human resource concept
and finally reaching to the concept of HRD. Therefore, the above mentioned table exhibits
the chronological arrival of various concepts that have prevailed and are prevailing in the
society at large. (Rao: 2005)
EMERGENCE/NEED OF HRD
The subject ‘HRD’ is a new and emerging concept and is of topical interest with
increasing importance. The government of India has recognized the relevance of HRD and
has created a separate ministry under the control of a fully fledged Cabinet of Ministers. The
real strength of the country lies in the development of human mind and body (Gupta and
Gupta: 2008).
It was also rightly expressed by an eminent philosopher from China, Kuang Chung Trum
(quoted by Deb: 2010) during the period of 7th Century B.C. He said,
“If you wish to plan for a year, sow seeds;
If you wish to plan for ten years, plant trees;
If you wish to plan a life time, development”
Since human resources is the life line of an organization and the process of developing
this resource is highly significant for the managers to achieve the goals and targets of the
organization. Therefore, HRD is needed by any organization that wants to be dynamic and a
survivor in the present scenario of cut-throat competition. In the rapidly changing environment,
organizations can scale new heights only through the effective and efficient use of human
resources (Deb: 2010). To keep the pace with the ever changing environment, organizations
must develop its people and allow them to grow. HRD system must be viewed as a total
system interacting with other systems of an organization. Therefore need of HRD arises to
improve working life, to develop potential of employees and utilizing the human resource in
an optimum manner to exploit their potential by availing opportunities for further development
and growth. In a nutshell,
HRD is needed because:
 It is helpful in creating a congenial environment and improves the working life of human
resource.
 It helps in facilitating effective communication to surface creative ability of
employees in full swing,
 It enables the members to attain self-actualization through systematic process of
development,
 It facilitates tapping the present and future creative abilities of the people to utilize
them for organizational development.
 It is helpful in accelerating the growth of employees and making them aware about
their strengths and weaknesses,
 It is helpful in developing the skills of work force in a way to make them competent
enough to exploit the available opportunities in an optimum manner (Sheikh: 2009).

5.4 OBJECTIVES OF HRD

Human Resource Development is basically the process of developing the work force
working in any organization by enhancing their knowledge and skills through proper training
and guidance. It ultimately aims at achieving the organizational goals by combating them
with the goals of the individuals working in an organization. There are certain objectives for
implementing HRD in any organization which aims at developing
The capabilities of each employee as individuals;
• The capabilities of each individual employee in relation to his/her present job;
• The capabilities of each individual employee in relation to his/her expected future
role;
• The superior-subordinate (dyadic) relationship;
• A cohesive and congenial atmosphere of working;
• Collaboration among different units of an organization;
• To develop the constructive mind and overall personality of employees;
• The organization’s overall health and self-renewing capabilities which in turn increase
the organizational capabilities in a comprehensive manner;
• To humanize the work in an organization; and
• To ensure better quality work, higher productivity and higher profits.
5.5 IMPORTANT CHARACTERISTICS OF HRD
HRD is a system and HRD develops the competencies at all levels.
 HRD is continuous and planned development effort.
 The ultimate object of HRD is to contribute to the professional well-being,
motivation and pride of the employees.

5.6 IMPORTANCE OF HRD

It should be self-evident: organizations consist of people, and so the development of
these people should be a key task for organizations. If you were to speak to senior-level
managers within firms they would, typically, state how important their staff are. Sadly, however,
these same senior-level managers will often concentrate on slashing budgets related to human
resource development. They may also have no qualms about downsizing the number of
employees at the same time. What is sometimes not clear, though, is that people really do
matter in organizations. People matter because in the highly competitive environment which
firms now face, human capital has become a precious commodity in gaining any sort of
advantage over other firms.
Human Resource Development is a vital area for firms because ideas for innovation,
quality and continuous improvement, as well as other critically important inputs needed to
compete in the modern, highly competitive business world, come from people and not from
machines. The extent to which people will provide suggestions for improvements – in all
forms – will depend, to a large extent, on human resource development strategies within
firms. The need to develop human resources on an ongoing basis has not always been so
prominent.
Firms are becomingly increasingly dependent on their human resource capabilities.
This is because much of the tacit, as well as coded, formal or documented, knowledge that a
firm possesses centers on human resources. A firm can accumulate this knowledge and general
know-how, related to processes, over time. However, such development does not come about
by chance; instead it comes from having a strategy for such development. A motivated, highly
trained, workforce must form the backbone of any would-be world-class firms.
5.7 BENEFITS OF HRD
Henry Ford the pioneer in the field of management states, “Take out my building,
take out my machines and all capital but leave my men with me I will become Henry Ford
again” This statement of Henry Ford highlights that human resource plays a crucial role in
an organization. Development of this resource is of absolute significance in achieving the
organizational goals and also to become capable of capturing the survivor position in this era
of cut throat competition. Human Resource Development is the kingpin around which all the
activities of an organization revolve. It is a process which plays a significant role in learning
and modification of behavior of employees in an organization. HRD is considered as the key
to higher productivity, better relations and greater profitability for any organization.
Here are some important benefits being discussed in brief which are the outcome of
implementing HRD in any organization:
 HRD helps in identifying organizational goals through better understanding of employees,
 HRD fosters commitment through the communication of values,
 HRD facilitates dyadic relationship,
 It facilitates job enrichment through proper training and acquisition of new skills,
 HRD increases the awareness of the importance of change management and consequent
adaptability of employees,
 HRD provides higher quality of work life through opportunities of a meaningful; career,
job satisfaction and professional development,
 It focuses on need contentment through recognition and achievement. With appropriate
HRD programme, people become more committed towards their job, people are assessed
on the basis of their performance
 HRD makes people more competent. It develops new skills, knowledge and attitudes of
the people in the organization concerned,
 A congenial and a cohesive environment could be developed with the implementation of
HRD programmes,
 Employees found themselves more capable of handling competition ,
 Proper HRD policies promote openness in the attitudes of the employees working in
the organization, it contributes to the overall growth of the employees,
 Resources are utilized in an optimum manner,
 It helps in developing a sense of belongingness among the employees and increases the
participation rate among them,
 It also helps in collecting data for human resource planning
Hence, implementation of Human Resource Development (HRD) is essential and
advantageous for the organization. It improves the performance of employees through proper
training and develops openness, trust, collaboration among the employees to identify the
organizational needs and shows the path to move on for achieving the same.

5.8 DIFFERENCE BETWEEN HRM AND HRD

The discipline of HRD was developed because the human resource management
function failed to meet the new challenges of the 20th century. Some of organizations have
merely redesigned their personnel departments as HRD departments. But there are certain
differences in both the areas:
• Human Resource Management (HRM) is viewed as a set of independent sub functions
while Human Resource Development (HRD) is seen as a system of a larger system in
an organization.
• HRM is considered as mainly a service function enduring with the demands of the
organization as and when they arise, but HRD is considered as a proactive function
which forecasts the needs of the organization and keep itself prepared to face the unseen
competition in an organized manner.
• HRM is a narrower concept which aims at developing and administering people only.
HRD is a wider concept aims at developing not only its people but its whole organization.
• The main focus of HRM is on enhancing skills and increasing efficiency of people in
the organization whereas HRD is based on the concept of building up the right
organizational climate that could discover, nurture and utilize human capabilities in an
optimum manner.
• In HRM, main motivators are salary, wage incentives and job simplifications. On the
other hand, HRD relies on job enrichment, job challenge, informal organizational
climate, autonomous work groups and creativity for motivating the work force in the
organization.
• HRM is supposed to be the exclusive responsibility of the Human Resource (HR)
Managers and their concerned department. But HRD is considered as the responsibility
of all the managers in an organization. In fact, HRD aims at developing the capabilities
of all the line managers to carry out various human resource management functions
themselves.
• Under HRM, higher morale and satisfaction are regarded as the cause of improved
performance. On the contrary, HRD perceives improved performances as the cause of
improved job satisfaction and morale of employees on work .

5.9 CASE STUDY

Singhvi Electricals Ltd is a company which employs approximately 300 employees.
Mr. Suresh recently took over as President of the company. A short time after joining the
company he started to notice that there was considerable inequality in the pay structure for
salaried employees. A discussion with the HR Manager leading to believe that salaried
employees pay was very much a matter of individual bargaining. Factory workers were not a
part of problem because they were unionized and there wages were set by collective bargaining.
An examination of salaried payroll showed that there were 100 employees ranging in pay
from that of the President to that of the receptionist. A closer examination showed that 30%
of the salaried employees were females. Few of these were front line factory supervisors
and one was the HR Manager. The other 14 were non management.
The examination also showed that the HR Manager was underpaid and that the few
female supervisors were paid some what less than any of the male supervisors. However
there were no similar supervisory jobs in which there were both male and female supervisors.
When questioned, the HR Manager said that she thought that the female supervisors was paid
at a lower rate mainly because they were women and because they supervised less skilled
employees than did male supervisors. However Mr. Suresh was not convinced that this was
true. He decided to hire a compensation consultant to help him. Together they have decided
that all 100 employees salaries jobs should be in the same job evaluation cluster, that a
modified job evaluation method should be used and that the job description recently completed
by the HR Manager were correct and usable in the study. The job evaluation also showed that
the HR Manager and the few female supervisors were being underpaid relative to comparable
male employees. Mr.Suresh was not sure, what to do. If he gave these females an immediate
salary increase large enough to bring them upto where they should be, he was afraid of the
male supervisors would be upset and the female supervisors might comprehend the situation
and demand arrears of pay. The HR Manager agreed to take a sizeble salary increased with the
no arrears of pay. So this part of the problem was solved. Mr.Suresh believed that he had
three choices relative to the female supervisors.
I. To gradually increase their salaries
II. To increase their salaries immediately
III. To do nothing
Questions
1. What would you do if you were Mr. Suresh?
2. How do you think the company got into a situation this in the first place?

5.10 NOTES
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
5.11 SUMMARY
The developments of the last three decades also indicate that while remarkable progress
has been made in a number of directions, the fruits of development have not benefited the
world’s growing number of poor people. And where some benefits have reached the poor,
new problems are appearing in the form of deteriorating social fabric and environmental
degradation.
The world faces two major development challenges. The first is to ensure that the
fruits of development reach the neediest through equitable distribution of resources,
opportunities and benefits. The second is to develop human capabilities and address the
challenges of development - political, economic and social. The few countries that have
been able to meet both these challenges have demonstrated the importance of investing in
developing people and improving the quality of their life through the adoption of human
resource development strategies.

5.12 KEY WORDS

Efficiency: Greater energy efficiency
Performance: The accomplishment of a given task measured against preset known
standards of accuracy, completeness, cost, and speed. In a contract, performance is
deemed to be the fulfillment of an obligation, in a manner that releases the performer
from all liabilities under the contract.
Human Resource: The sum of Knowledge, skills, attitudes, commitment, values and the
like of the people of an organization
Personal Management: Deals with people at work
5.13 SELF ASSESSMENT QUESTIONS
1. Define HRD, state the objectives and benefits of HRD
2. Discuss the nature and scope of HRD
3. Explain the objectives of HRD
4. Write a note on Needs of HRD
5. Briefly explain the importance of HRD
5.14 REFERENCES
1. Pareek, V and Rao T.V. Designing and Managing Human Resource Systems, New Delhi:
Oxford and IBH Publishing Co., 1981.
2. Rao T.V Pereira D.F. Recent Experiences in Human Resource Development, New Delhi:
Oxford and IBH Publishing Co.,1986
3. Ulrich D – Human Resource Champions, Harvard Business School Press – 1997
4. Kalpana R. – Balance Score Card – Harvard Business Review, January-February. (1992)
UNIT – 6: DEVELOPMENT OF HUMAN CAPITAL

Structure:
6.0 Objectives
6.1 Introduction
6.2 Principles of HRD
6.3 Future perspectives of HRD
6.4 HRD Functions
6.5 Process of HRD
6.6 Development of human capital
6.7 Aptitude
6.8 Knowledge
6.9 Values
6.10 Significance of Values
6.11 Human relation skill
6.12 Responsiveness
6.13 Loyalty and Commitment
6.14 Leadership Development
6.15 Case study
6.16 Note
6.17 Summary
6.18 Key words
6.19 Self Assessment Questions
6.20 References
6.0 OBJECTIVES
After studying this unit, you should able to;
• Define the Framework of HRD Process
• Discuss the Process of HRD
• Explain the aptitude, knowledge, values , skills of human relation
• Discuss the loyalty of commitments of employees
• Analysis leadership development

6.1 INTRODUCTION
The field of HRD or Human Resource Development encompasses several aspects
of enabling and empowering human resources in organization. Whereas earlier HRD
was denoted as managing people in organizations with emphasis on payroll, training and
other functions that were designed to keep employees happy, the current line of
management thought focuses on empowering and enabling them to become employees
capable of fulfilling their aspirations and actualizing their potential.
This shift in the way human resources are treated has come about due to the
prevailing notion that human resources are sources of competitive advantage and not
merely employees fulfilling their job responsibilities. The Aptitude, Knowledge, values,
and skills of human resource relation etc are part of human resource development in an
organization .
6.2 PRINCIPLES OF HRD
The major principles which should be kept in mind while framing the aspects of
development of the human resource are as follows:
 Principle of Development of Organizational Capability: An ideal HRD system
should be based on the principle of overall development of employees and the organization
as a whole. The capabilities include overall development of the work force in all aspects,
may it be technical, physical, psychological or moral development in an organized manner.
 Principle of Potential Maximization: HRD system must enable their employees
to identify their hidden potential and make them competent enough to exploit their talent
in an optimum manner so that they could contribute their efforts in attaining organizational
goals.
 Principle of Autonomy Maximization: Autonomy is the degree of independence
given to employees at work so that they could be able to tackle responsibility to some
extent of what they are capable of handling. A proper HRD system must provide certain
level of autonomy to its employees enabling them of handling duties on their own.
 Principle of Maximum delegation: Delegation of responsibilities means sharing
responsibilities of authorities with subordinates so that a cohesive and a congenial
environment could be developed in an organization.
 Principle of Participative Decision-making: Participation of subordinates
must be encouraged by top level managers in an ideal HRD system to create a comfortable
working atmosphere where workers are free to discuss their ideas and always welcomed
for suggestions.
 Principle of Change Management: Change is the only permanent thing in this
universe but usually people resists change. To beat the competition an organization and
its human resource should be as much flexible in getting itself adapt to the changing
scenario of 21st century. A good HRD system must attempt to strike a balance between
the organizational culture and the changing culture.
 Principle of Periodic Review: Review and renewal of HRD functions like
training and development, career planning and development, performance and potential
appraisal, counseling etc of employees should take place regularly in an organization at
certain periodic intervals.
Thus, the principles that have been stated above must be kept in mind while framing
a Human Resource Development system so as to have a proper and regular development
of the human resource in an organization.

6.3 FUTURE PERSPECTIVES OF HRD

With the advent of globalization, industries and firms are bound to face the
challenges of the new times. To survive in this era of cut-throat competition, organizations
requires bold, innovative and dynamic workforce otherwise, they are eased out of the
main stream of management in the corporate world. It is the responsibility of the HRD
strategists to have a farsighted vision in framing, formulating, and implementing such
strategies which could exploit the opportunities available in present scenario to beat the
competition. Looking one step ahead is the sign of a smart thinker; therefore a HRD
manager must broaden his horizons of creativity and innovations to trace out the better
prospects for growth of HRD. Certain perspectives have been analyzed and discussed
here. These are as follows:
 Advancement in Technology.
 New and Diverse customers.
 Changes in the sources of raw materials and financial resources.
 Corporate Restructuring.
 Modification in the structure of Industries.
 Changes in the regulatory framework of Government regarding corporate
governance.
 Downsizing of organizations/enterprises.
 Mergers and acquisitions.
 New and revised corporate strategies.
 Work simplification methods/ processes.
 Exploration of newer markets and alteration of existing markets.
 Diversification of products and services
Human resource constitutes the most valuable asset in the context of development
and growth perspectives in any organization. Relative performances of nations, regions
of economy, Industrial Sectors as well as corporate enterprises are critically linked to
the quality of human contributions. Hence, it is the utmost responsibility of the HRD
managers to look after the desired areas of concern for the persistence of development
of skills and knowledge of the work force by making arrangements to make sure that
these needed developments took place in a well-organized and cohesive manner.

6.4 HRD FUNCTIONS

The core of the concept of HRS is that of development of human beings or HRD.
The concept of development should cover not only the individual but also other units in
the organization. In addition to developing the individual, attention needs to be given to
the development of stronger dyads, i.e., two-person groups of the employee and his
boss. Such dyads are the basic units of working in the organization. Besides several
groups like committees, task groups, etc. also require attention. Development of such
groups should be from the point of view of increasing collaboration amongst people
working in the organization, thus making for an effective decision-making. Finally, the
entire department and the entire organization also should be covered by development.
Their development would involve developing a climate conducive for their effectiveness,
developing self-renewing mechanisms in the organizations so that they are able to adjust
and pro-act, and developing relevant processes which contribute to their effectiveness.
Hence, the goals of the HRD systems are to develop:
1. The capabilities of each employee as an individual.
2. The capabilities of each individual in relation to his or her present role.
3. The capabilities of each employee in relation to his or her expected future role(s).
4. The dyadic relationship between each employee and his or her supervisor.
5. The team spirit and functioning in every organizational unit (department, group,
etc.).
6. Collaboration among different units of the organization.
7. The organization’s overall health and self-renewing capabilities which, in turn,
increase the enabling capabilities of individuals, dyads, teams, and the entire
organization.

6.5 PROCESS OF HUMAN RESOURCE DEVELOPMENT

Framework for the HRD process
The goal of HRD is to improve an organization’s effectiveness by:
1. Solving current problems (like an increase in customer complaints)
2. Preventing anticipated problems (such as a shortage of skilled technicians)
3. Including those individuals and units that can benefit most as participants
In short, HRD is effective if it successfully addresses some organizational needs through
conducting needs assessments. Designing HRD interventions involves a process, which
includes a four-step sequence: needs assessment, design, implementation, and evaluation.
(Figure 2.1)
Phase I: Need Assessment
Phase II: Design
Phase III: Implementation
Phase IV: Evaluation
 (Figure 2.1)
1. Needs Assessment Phase
HRD interventions are used to address some need or “gap” within the organization.
A need can be either a current deficiency, such as poor employee performance, or a new
challenge that demands a change in the way the organization operates (new legislation or
increased competition). Identifying needs involves examining the organization, its
environment, job tasks, and employee performance. This information can be used to:
 Establish priorities for expanding HRD efforts
 Define specific training and HRD objectives
 Establish evaluation criteria
2. Design phase
The second phase of the training and HRD process involves designing the HRD
program or intervention. If the intervention involves some type of training or development
program, the following activities are typically carried out during this phase:
 Selecting the specific objectives of the program
 Developing the appropriate lesson plan for the program
 Developing or acquiring the appropriate materials for the trainees to use
 Determining who will deliver the program
 Selecting the most appropriate method or methods to conduct the program
 Scheduling the program
 Once the assessment phase is completed, it is important to translate the issues
identified in that phase into clear objectives for HRD programs. This should also facilitate
the development of clear lesson plans concerning what should be done in the HRD
program. Selecting the proper person to deliver the HRD program is also an important
decision, and it can be difficult, depending on the resources available. If the organization
employs a group of full-time HRD professionals, the choice will depend largely on the
expertise and work schedules of those professionals. However, if the organization does
not have the HRD staff, it will have to rely upon other people, including managers,
supervisors, coworkers, or outside consultants. Using such individuals raises a host of
issues, including their willingness, ability, and availability to train, as well as cost issues.
The design phase also involves selecting and developing the content of the program.
This means choosing the most appropriate setting for the program (e.g., on the job, in a
classroom, online, or some combination), the techniques used to facilitate learning (such
as lecture, discussion, role play, simulation), and the materials to be used in delivering
the program
(Such as workbooks, job aids, web-based or web-enhanced materials, films, videos,
Microsoft® PowerPoint® presentations, etc.). Inherent in these decisions is the issue
of whether to develop the program in-house or purchase it (or parts of it) from an outside
vendor. Scheduling the program may not be as easy as it appears. Issues to be resolved
include lead time to notify potential participants, program length and location, covering
participants’ regular job duties, and potential conflicts (such as vacations, busy periods,
and facility availability).The needs assessment may also reveal that training is not the
ideal solution for the issues or problems facing the organization. It may be that some
management practice needs to be changed, or that changes need to be made in another
human resource practice (such as staffing or compensation). It may also be the case that
a different type of HRD intervention is called for besides training, for example, a change
in the organization of work, or a change in the focus on total quality or process
reengineering. Such HRD interventions would not require a “lesson plan.” However, other
design issues occur with career management and organizational development interventions
3. Implementation phase
The goal of the assessment and design phases is to implement effective HRD
programs or interventions. This means that the program or intervention must be delivered
or implemented, using the most appropriate means or methods (as determined in the
design phase). Delivering any HRD program generally presents numerous challenges,
such as executing the program as planned; creating an environment that enhances learning,
and resolving problems that may arise(missing equipment, conflicts between participants,
etc.)
4. Evaluation phase
Program evaluation is the final phase in the training and HRD process. This is
where the effectiveness of the HRD intervention is measured. This is an important but
often underemphasized activity. Careful evaluation provides information on participants’
reaction to the program, how much they learned, whether they use what they have learned
on the job, and whether the program improved the organization’s effectiveness. HRD
professionals are increasingly asked to provide evidence of the success of their efforts
using a variety of “hard” and “soft” measures, that is, both bottom line impact, as well as
employee reaction. This information allows managers to make better decisions about
various aspects of the HRD effort, such as:
 Continuing to use a particular technique or vendor in future programs
 Offering a particular program in the future
 Budgeting and resource allocation
 Using some other HR or managerial approach (like employee selection or changing
work rules) to solve the problem
It is important that HRD professionals provide evidence that HRD programs
improve individual and organizational effectiveness. Armed with this information, HRD
managers can better compete with managers from other areas of the organization when
discussing the effectiveness of their actions and competing for organizational resources.

6.6 DEVELOPMENT OF HUMAN CAPITAL

In an organizational context, Human Capital is a type of resource which consists
of the employee’s tangible and intangible knowledge, experience, core proficiency,
creativity quotient, skills, abilities; judgment possessed by the employees which results
in the creation of economic value.
In simple terms human capital represents the total stock of vital resources
possessed by the employees to create economic value to the organization.
As human resources professionals, we are champions for success in our
organizations through the best deployment of our people. In this role, one of our greatest
desires is to have supervisors and managers think about their staff as valuable, strategic
resources.
 How can we help our supervisors and managers identify and build the strategic
value of their employees? How can we ensure that our supervisors and managers have
the human capital they require to achieve great things? Creating and implementing a
human capital management review process within your organization is one way to
accomplish this task.
A human-capital management review process provides a systematic assessment
of an organization’s structure and staffing. It is a method for supervisors and managers
to evaluate the readiness of their business units to accomplish their objectives. Often
this activity is part of the budget process and provides information that can be very useful
to forecast resource needs for staffing and development.
The following topics are usually covered during the human-capital management
process:
Strategic alignment and business goals. This topic provides an opportunity for
HR managers to gain a deeper understanding of the business and its challenges. The
purpose is to discuss key initiatives and on-going responsibilities that the manager must
deliver through the efforts of their staff. Clarifying the work of the unit and required
results establishes the foundation for the rest of the assessment.
Typical questions: What are the strategic objectives and/or measures that this
organization is accountable for? What business goals is this organization working towards
this year? What results must be achieved? What measures of success are of concern to
the managers? What issues must be resolved? Organization structure
The discussion of the organizational structure is useful to clarify reporting
relationships and review span of control. It also provides an opportunity for HR managers
to put on their “organizational development” hat and educate managers about the elements
of leadership and team dynamics that effect productivity, such as: clear roles and
responsibilities, adequate delegation; decision-making authority, workflow, etc.
Typical questions: How is the organization currently organized? How effective is
this structure to meet the organization’s business objectives? What changes are needed
or planned? Will these changes require additional staff or new skills for current staff?
Resource plan
This discussion is the heart of the process and may require thoughtful preparation
to guide managers through the analysis. The challenge is to step back from the day-to-
day work of the unit and think about the organization’s strategy for success. Strategic
impact leads to priorities. What differentiates you from other similar organizations?
What approach is your organization taking to be the best?
 Typical questions: What are the strategic job families or positions that have the
greatest impact on the attainment of the business unit’s objectives? Which specific tasks
or responsibilities contribute to the business unit’s success? How effective are the
staffing levels in these positions to meet business objectives? What are the current and
future resource needs of the business unit? What specific staffing changes are anticipated
based on changes in business conditions, promotions, retirements, etc.? How do these
impact the ability of the business unit to meet its objectives? Individual competency
assessments
Once you have established the overall resource plan, you can evaluate each
employee’s skills and abilities against the needs of the business unit. Creating a matrix,
with critical competencies listed on one side and employee names on the other, is a
useful tool for capturing this assessment. It is also helpful to include each employee’s
performance rating and salary on the assessment report, and compare this data with the
skills assessment information. This process provides the information necessary to plan
and prioritize development needs, as well as opportunities to recognize valued employees
through increased compensation, promotional opportunities, or visibility assignments.
Typical questions: What are the critical job requirements (knowledge, skills and
work values) and required proficiency level (expert, proficient, developing) for each
strategic job family or position in the business unit? What is the competency of individual
staff in each job requirement? How effectively can the business unit meet its objectives
based upon the current competency levels of the staff? Which skills gaps are the highest
priorities? What training or development experiences can address these needs? Are there
highly skilled employees who are not currently being recognized? How can their strengths
be leveraged? Are adjustments in pay, assignments, opportunities, needed to retain them?
Are there employees who might be more suited to another assignment, better suited to
their strengths? Rewards and retention
A “vulnerability assessment” is a useful tool to facilitate a discussion geared at
the retention of high potential employees. Identify and discuss key areas of vulnerability
and potential turnover. Describe and discuss individual retention plans for high
potential employees. Internal-external bench strength
Describe the business unit’s overall succession depth (i.e., the availability and
readiness of enough people to assume higher positions immediately). Comment on
specific bench strength problems. Assess the business unit’s capability to meet training
needs of identified successors and identify sources/support needed from outside the
organization to deliver these needs. List any potential job candidates from other
departments or competitors.

6.7 APTITUDE
Aptitude refers to the potential for learn-ing or acquiring a specific skill. Aptitude
differs from achievement which refers to previous learning. It also differs from
intelli-gence which refers to a person’s general potential to find solutions to problems,
think ideally, adapt to changing situation and gain from experience.
The distinction between the three concepts is thin because they are closely
interrelated. At work, employee should have aptitude for learning which is beneficial to
him and organization. All the three concepts aptitude, achievement and intelligence are
grouped as human ability. Aptitude of per-sons can be tested to evaluate individual
differences. The aptitude test measures poten-tial for acquisition of a specific skill.
Through aptitude employees potential for learning can be evaluated.
Through aptitude tests, evalu-ation of wide range of experiences obtained by the
employees can be made. Aptitude test is used to judge or predict future perform-ance. It
also evaluates the effect of an un-known or uncontrolled set of experience, to gain from
a course of training. The interest and choice of the person can also be known from the
aptitude test. These tests are the useful tool in the hands of employers who are in search
for right persons for the right job.
THE DIFFERENCE BETWEEN APTITUDES AND ATTITUDES
Aptitudes are our potential to learn skills which we develop and hone through
time. What works, you continue using. What does not, you strive to change. However,
aptitudes alone cannot take you all the way through the path to success.
Your attitude determines what and how much you can do. It is like an engine – it
can either slow you down or accelerate you forward.
The fundamental difference here, for managers and leaders, is that you can train
people for weaknesses in aptitude – but you cannot train people out of an attitude
weakness. Attitude is internal to the individual, you cannot motivate a person to change
themselves – they have to motivate themselves to change.
As such, you can only influence them in three ways:
 Using carrots and sticks – this only creates compliance, as soon as the pressure
to conform is reduced the individual will revert to their original attitudes and behaviors;
 Peer pressure – creating the necessary peer pressure to get the individual to
change their attitude to that which is wanted; this is dependent, however, on the peer
pressure being aligned with that of the business;
 Alignment with Self-Interests – by aligning the interests of the individual with
those of the business, the individual willingly changes their attitudes and behavior to
those required by the organization. This is the only sustainable way of engaging people
and getting them to change their attitude and behaviors.

6.8 KNOWLEDGE
Knowledge is another capacity acquired and possessed by a person through his or
her efforts. The knowledge is the fact or condition of knowing something with familiarity
or acquaintance gained through experience or association. It understands of technique,
science or art by an individual. It is a condition of being aware of something. Knowledge
is acquired through learning. Knowledge facilitates learning. Knowledge of results leads
to increases in learning.
The learner acquires knowledge in the following stages:
(1) Declarative Knowledge:
The factual information and concepts relevant to the task acquired by the trainee,
or learner is known as declarative knowledge. It is also recognized as ‘knowing what’ in
respect of task. In this stage of acquiring knowledge intelligence plays a key role as
memory and attention are important in learning or acquiring skills about the task.
(2) Knowledge Compilation:
In this second stage the performance of task learned through the first stage
improves and become polished.
(3) Procedural Knowledge:
This is the final stage the learner or trainee not only knows what to do but know
how to do. The performer applies his knowledge in carrying out the task procedures
fluently and automatically. For confirming whether the trainee has received the perfect
knowledge about the task or not, a feedback is taken. This feedback is known as knowledge
of results. Taking feedback is important because learning of the trainee is ascertained
through it otherwise he may lose the motivation to learn. Feedback makes the learning
process more interesting.
 Employee involvement in acquisition of knowledge is a must. Employees should
be provided information about overall performance of the firm. The enhancement of
knowledge takes place through additional job skills, training and cross training. In the
process learning or acquiring knowledge the manager should assume the position of a
coach or facilitator, revolutionary changes should take place, the goal should be to attain
organizational effectiveness and quality of working life instead of economic goal of
productivity. The hierarchy should be flattened to motivate further the employees to
gain knowledge.
Sometimes knowledge and know how are used as synonyms. The sum total of all
knowledge and skills acquired for satisfactory job performance is known how three
dimensions – practical, managerial and skill of motivating people have.

6.9 VALUES
According to M. Rokeach values represent basic convictions that, “a specified
mode of conduct or end-state of existence is personally or socially preferable to an
opposite or converse mode of conduct or end-state of existence.” Values focus on the
judgment about what is right, good or desirable.
The values have two attributes:
(1) Content Attributes:
Under content attribute the made of conduct or end-state of existence is important.
(2) Intensity Attributes:
Intensity attribute specifies how important end-state of existence is.
According to M. Rokeach there are two types of values:
(1) Terminal Value:
It is a final goal in a desired status, e.g. a person’s desire to achieve happiness.
(2) Instrumental Value:
It is a means for acquiring a learning value e.g. – a person’s desire to achieve
happiness (i.e. terminal value) with the means of being ambitious or independent (i.e.
instrumental value) The combination of both values in an individual can create a value
system. Values generally, influence attitude and behaviour. The value systems determine
what we as individuals are. Values are enduring and stable.
The following table shows Terminal and Instrumental values in Rokeach value
survey:

There is one more way to categories values given by Allport at. el.
According to them there are six types of values:
(1) Theoretical:
Gives stress on the discovery of truth through a critical and rational approach.
(2) Economic:
Put more emphasis on usefulness and practicality, accumulation of wealth.
(3) Aesthetic:
Emphasises the highest value on form and harmony.
(4) Social:
Interest in the highest value to the love of people.
(5) Political:
Emphasis on acquisition of power and influence on people.
(6) Religious:
Interest in the unity of experience and understanding of the cosmos as a whole.
The findings or several studies have confirmed that Rokeach value Survey values vary
among groups. While according to Allport’s findings people in the same occupations or
professions such as company managers, union members, students, parents etc. tend to
hold similar values.
The studies of values are important because they are the starting point for
understanding attitudes motivation and perceptions. The dominant values in work force
are hard work, conservative, loyalty to organisation, quality of life, nonconforming, seeks
autonomy, loyalty to self, success, achievement, ambition, hard work, loyalty to career,
flexibility, job satisfaction, leisure time, loyalty to relationship
Values are acquired through experiences with people and institutions. Elders and
parents influence values, of their children. Values are acquired through schools, religious
institutions, and society. With our growth values dominate our life and work.
They play vital role in shaping our life and affect the work environment. Culture
dominates the value formation. What is good or bad are derived from culture. Today
values are the backbone of latest management revolution in the world. Therefore it is
necessary to understand values.

6.10 SIGNIFICANCE OF VALUES

Our efficiency and effectiveness at work is tied with intrinsic human values i.e.
moral and ethical values. Self development takes place through human values which
support business values like service, creativity, credibility, excellence, innovation
communication, coordination direction and control.
Interpersonal communi-cation becomes effective through values minimizing
conflicts and disputes. Human values built up good reputation and goodwill of the
organization. Values enhance job satisfaction as well as improvement in customer
satisfaction. Values are the means of perfection. Values are enduring.
Everyone have permanent basic values. Values are integral part of management
and work culture. Values help in human resource development. All executives, employees
and workers should inculcate values in a manner as said by Eslies clarkson, “Every fibre
of our personality must glow radiate and manifest itself with a conduct identical with
what we profess to be.”

6.11 HUMAN RELATIONS SKILL

Organizations are composed of people who come from different walks of life;
differ with each other in psychological makeup. People are human resources constituting
the sum total of inherent abilities, knowledge skills, represented by talents and aptitudes.
They behave in different manners. A manager has to understand human relations
and behavior to extract hundred percent from the employees to the advantage of enterprise.
Quality of human resources can be modified through education, training and
devel-opment.
Human resources are distinct from physical resources which are passive. Human
resources differ in qualities possessed by them. They possess immense skills. According
to Sophocles, “the wonders of wonders is man who has infinite capacity to think, to
develop to create, to invent, to feel, to love, to give, to kill, to respect and to hate,
analyze or destroy.”
Efficiency of employees can be maximized by creating and maintaining good human
relations among them. W.W.G. Scott defined human relations as “a process of an effective
motivation of individuals in a given situation in order to achieve a balance of objectives
which will yield greater human satisfaction and help accomplish company goals.” Human
relations refer to the interaction of people in all walks of life including in enterprises.
Human relations are interdisciplinary. It embodies psychology, anthropology,
sociology, physiology, political science.
Basics of Human Relations:
Human relations are a part of organizational behavior which is based on certain
concepts relating to nature of people and nature of organizations.
Nature of People:
In order to understand people one should know the basics of human behavior
which is the following:
(1) Individual Differences:
People have some common traits e.g. they get excited or they grieve by the loss
of their near or dear one. Even though they have much in common they are different.
They differ in attitude, thinking, likes and dislikes, opinion, other qualities. Organizational
behavior commences with the individual. Individuals make decisions. Group is effective
when individuals act.
(2) A Whole Person:
Organizations do not employ skills and brain of an individual but a ‘whole person.’
Skill, qualities, attitude and behavior cannot be separated from the person. When employ
a person you are employing good and bad qualities of the person which influence his
working. The main aim of the management is to develop a better employee in terms of
growth and fulfillment. Employees are the members of many organisations other than
the enterprise where they are working. So, if whole person is developed the enterprise
as well as the society is benefitted.
(3) Caused Behavior:
Individual do not act without any cause. There is a reason behind every action. He
works to fulfill some of his needs. Therefore management should understand that human
behavior has some cause. The manager must understand this fundamental and act
rationally. The cause of human behavior is the result of an interaction between a stimulus
and person’s interpretation of that stimulus. The actions are people have some object in
sight. They are goal oriented. There is some motivation which forces the organization to
run smoothly.
(4) The Value of the Person (Human Dignity):
People are treated differently than other factors of production because they are
the better creation of the universe. They are to be treated with respect and dignity. With
the involvement of people in organizational behavior ethical philosophy is involved in
every action of the manage-ment.
Nature of Organization:
The second basic in human relations is to know the nature of organization
which comprises of the following:
(1) Social System:
Organizations are social systems. Social and psychological law governs
organizations. Status and social roles of people and their behavior get influenced by
their group and individual aspirations or drives. In organization formal and informal groups
exist which are interdependent and influenced by each other. The social system thus
makes the human behavior complex in organizations.
(2) Mutual Interest:
There is mutuality of interest. Organizations need people to accomplish their
goals and people need organizations to fulfill their personal objectives. Thus people
work in cooperation in meeting organizational problems.
Aims of Human Relations:
Human relations relate with human aspect of management and it aims at improving
morale and motivation of employee through effective communication and participation
of employees in decision making.
According to Stan Kossen understanding of human behavior can:
(1) Assist manager to develop a better realization of his own attitude and behavior
play a part in day today work.
(2) Help manager to develop a keener sensitivity towards other.
(3) Help manager to develop improved understanding of the problems of reconciling
his own interests and capabilities with the needs and goals of the organization of
which he is a part.
(4) Enable manager to anticipate and prevent problems.
(5) Assist him to see things as they are not as they should.
(6) Assist him to keep aside or get relief from excess mental load.
How to Develop Sound Human Relations:
There are ways and means to promote effective Human Relations in an
organization.
The following are some of them:
(1) Develop honesty among people at work.
(2) Remove misunderstanding and promote frankness.
(3) Restore good relations among and with employees.
(4) Develop effective three way communication system.
(5) Respect feelings of others.
(6) Have a word of appreciation for the ideas of others.
(7) Managers have to develop good leadership qualities to bring cohesion in his group
which helps in improving good human relations.
(8) Accept your wrongdoing to avoid criticism by others.
(9) Request is a powerful weapon than orders.
(10) Praise your subordinate for his good work.
(11) Respect the opinions of others
(12) Create such an environment where everyone is happy and is willing to work.
(13) Treat subordinate with respect and dignity.
(14) Understand the human needs and help achieving them.
(15) Help employees in their job performance.
The knowledge of human behavior helps in understanding people as to why they
behave as they do.

6.12 RESPONSIVENESS
Responsiveness is yet mother human capacity present in employees.
Responsiveness means responding readily and positively to a call or command from
superior to the subordinate. This is the quality possessed by an employee which enables
speedy work. This quality among human assets put them ahead of others.
For being responsive you must possess some other qualities and analytical mind.
Positive response means ability to execute the work with perfection and that too on
time. You should approach problems with logic and sound reasoning.
Executives must respond to the opportunities for involving others in decision
asking. You should be good communicator and provide outstanding support to your
subordinates. Responsiveness leads to seeking out innovative solutions to challenging
problems and give you a chance to establish benchmark of performance and standard of
excellence.
An employee with this quality is busy in developing new appropriate systems and
procedures to function efficiently. The benefits like early promotions accrue to the
employee He/She remains in the good books of superiors is an added advantage of the
quality of responsiveness. These are the people who take initiative in their organizations
and accept change easily.
6.13 LOYALTY AND COMMITMENT
Loyalty is the state of being loyal to the work and to the organization. A sense of
loyalty develops a strong feeding of support or allegiance. A loyal employee shows a
firm and constant support or allegiance to the organization and its members. Employee
is loyal to the established rules, regulations, and procedures and follows them strictly.
Every employee must be loyal to his organization. Loyalist supports the organization
when it is passing through difficult times.
Another human capacity commitment means the state or quality of being credited
to a cause or policy. It is a pledge or undertaking or an obligation to remain committed
to the cause of the organization. Every organization needs committed people for its
progress.
The committed workforce establishes a long term emotional relationship with
their organization. They are dedicated people for accomplishment of objectives of the
organization. They restrict themselves from taking undue advantage from the organization.
They give their hundred percent to their organization. They are the hand-working
people. They receive full faith of their superiors. They enjoy confidence of their higher
ups. Superiors delegate authority to such people. Organizations flourish where such
committed people work.
Transparency:
Transparency means the condition of being transparent. It means no concealment
of action, command, policy, procedure, work culture of the organization. The employees
should be made known by the organization about rules and regulations, procedure for
action in case of any breach committed by the employees. Transparency ensures fairness.
There should not be any hidden agenda on the part of the organization. There must be fair
deal which is ensured only when transparency prevailed in the organization. It takes out
fear from the minds of the employees and they work without any worries. Transparency
is image building tool for the organization. It leads to the speedy growth.

6.14 LEADERSHIP DEVELOPMENT

Managers have to work with many people having distinct behavior patterns.
Managers have to lead and guide his subordinates at the workplace. Hence he must possess
leadership qualities for effective management of people. A good leader extracts work
from the toughest employee. He can take anyone to task in his Endeavour to attain
organizational objectives. Leadership qualities can be an acquired through experience
and training.
Leadership is a process of influencing the behavior of others in the direction of
an objective or set of objectives or toward a vision of the future. A constructive leadership
style which provides vision and direction and furthers cooperation and productive group
effort is essential for organizational effectiveness.
Some of the experts feel that leadership can be distinguished from management.
But leadership and management overlap. According to John Kotter management involves,
“planning and budgeting, organizing and staffing, controlling and problem solving.
In contrast, leadership involves establishing direction which includes developing
a vision and strategies for getting there, aligning people, which includes communicating
the direction and securing cooperation and motivating and inspiring,” which according
to Kotter often requires “appealing to very basic, but often untapped, human needs, values,
and emotions” Both effective leadership and effective management are essential, according
to Kotter, if organizations are to be successful for the long term. So leadership and
management go hand in hand.
For effective leadership, a leader should have self confidence, physical
attractiveness, intelligence, drive, alertness and insight in respect of tasks to be performed
and the feelings of the persons performing those tasks.
A leader must encourage and support his people and provide information and
suggest new procedures. He must be production centric i.e. he should assign task by
fixing a deadline and make a review of deficient work.
He should also be employee centric i.e. behaving friendly, easily accessible to
the employees, must listen to subordinates and allow them to participate in planning and
decision making. Manager should adopt a suitable style depending upon situation and the
forces present therein.
Further the choice of appropriate style of leadership depends upon the forces in
the manager, subordinates the situation and behavior patterns.
Organisations should provide conducive environment for leadership development
because empowerment is the consequence. Leadership developments have implications
in several areas of HRM e.g.:
(1) Staffing where selection and promotion are made on the basis of working efficiency
and leadership qualities needed in particular settings.
(2) Training and development help to acquire leadership qualities among supervisors.
(3) Interacting with other managers requires leadership qualities in planning, developing
and managing human resources in the organisation.

6.15 CASE STUDY

Measuring Performance
The following job description is for an Marketing executive at Systems Inc, which
is a leading national provider of payroll, human resources and benefits outsourcing
solutions for medium scale business organizations. It is headquartered in Mysore,
Karnataka having more than 50 offices, serving thousands of clients nation wide.
Marketing executive often makes sales calls individually. Hence their managers always
don’t observe their performance. Managers are always responsible for sales in their
markets and staying upto date on payroll loss. However senior marketing executives are
responsible for training new marketing executives and networking in the industry in which
they sell the products. Ex. If an Marketing Manager is responsible for retail companies,
then that marketing executives are expected to attend retail trade shows and professional
meetings to identify potential clients and to stay current with issues facing the retail
industries.
Job Responsibility for marketing executives is as follows:
1. Performing client need analysis
2. To ensure that the major market service product can meet a client’s requirement
and expectation.
3. Acting as primary contact for the client during the conservation process.
4. Establishing clients on the host processing system.
5. Prepare the targeted plan for the total sales during the first week of every month.
And also submit report on performance during the month end.
6. Analyzing the reasons for underperformance if any and submit the detailed report
to the higher authority.
Questions
1. Which approach is best to measure performance against above six responsibilities
and Why?
2. Relate the task and contextual performance from the stated responsibilities.
6.16 NOTES
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
………………………………………………………………………………………………………………………
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……………………………………………………………………………………………………………………..
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
6.17 SUMMARY
Human Resource Development is a system of developing in a continuous and
planned way the competencies of individual employees, aptitude, knowledge, values,
skills of human relation and loyalty and commitments to achieve organizational goals.
Human resource development can be defined as a set of systematic and planned activities
designed by an organization to provide its members with the opportunities to learn
necessary skills to meet current and future job demands. The evolution of human resource
development includes apprenticeship training programs, vocational education programs,
and factory schools, training programs for semiskilled and unskilled workers, human
relations movement. In most organizations, however, training or human resource
development is part of a larger human resource management department.

6.18 KEY WORDS

Responsiveness: Specific ability of a system or functional unit to complete assigned
tasks within a given time.
Commitments: Personal commitment, legally binding exchange of promises
Values: Something’s degree, determining what action of life is best to do
Personal Management: Deals with people at work
6.19 SELF ASSESSMENT QUESTION
1. Define HRD, state the objectives and benefits of HRD
2. Discuss the nature and scope of HRD
3. Explain the objectives of HRD
4. Write a note on Needs of HRD
5. Briefly explain the importance of HRD
6.20 REFERENCES
1. Pareek, V and Rao T.V. Designing and Managing Human Resource Systems, New
Delhi: Oxford and IBH Publishing Co., 1981.
2. Rao T.V Pereira D.F. Recent Experiences in Human Resource Development, New
Delhi: Oxford and IBH Publishing Co.,1986
3. Ulrich D – Human Resource Champions, Harvard Business School Press – 1997
4. Kalpana R. – Balance Score Card – Harvard Business Review, January-February.
(1992)
UNIT – 7: ASSESSING HRD NEEDS

Structure:
7.0 Objectives
7.1 Introduction
7.2 Assessing HRD Needs
7.3 Designing and creating programmes of HRD
7.4 Definition of HRD Intervention
7.5 Techno – Structural Interventions
7.6 Strategic Interventions
7.7 Case Study
7.8 Notes
7.9 Summary
7.10 Key words
7.11 Self Assessment Questions
7.12 References
7.0 OBJECTIVES
After studying this unit, you should able to;
• Define assessing HRD needs
• Discuss the Designing and creating HRD programs
• Explain the HRD intervention
• Discuss the criteria for effective interventions
• Analysis the factors which are influence on intervention

7.1 INTRODUCTION
Human Resource Development (HRD) is a subject gripping paramount
significance at a national level, and it is much more of prodigious germaneness in a
developing and the most populous country like India. Over the years, organizations
worldwide are becoming cognizant with the prominence of human resource. The real
life experiences substantiate the assumptions that no matter how automated the activities
of an organization may become, it is extremely challenging to manage it unless the human
efforts are integrated with them. This realization has propelled HRD as a major area of
study in recent years. The competitors can buy same or better machines or materials,
but the difference between the high performing company and the one performing low
lies in its people. An organization can rise only up to the level its people can take it to.
HRD also associates the growth of the organizations with the development of its
employees.

7.2 ASSESSING HRD NEEDS

Within the human resources field, numerous definitions and models for needs
assessment, each with subtle differences, have been proposed. For most researchers and
practitioners, needs assessment is an investigative process with the purpose of connecting
an organization’s performance problems or opportunities for performance improvement
to specific human performance interventions. Needs assessment thus also entails the
process of distinguishing the components of performance problems that should be
addressed by training from those that should be addressed by other interventions. In
simple terms, needs assessment is a systematic process for identifying gaps in
performance and uncovering the causes of those gaps, or for identifying future
performance needs. This interpretation is based on the concept of performance
discrepancies or gaps the difference between a current level (what is) and a desired
level
What are “NEEDS”?
When discussing the needs assessment process, the meaning of the term “need”
must be defined. What one person views as a need, another may consider a want or desire.
One way to approach the discussion of needs is to consider both “felt” and “actual”
needs. Consider the following example. Numerous employees in a large company have
expressed a need for stress management training. A deeper analysis, however, reveals
factors within the work environment — noise, inefficient work processes, and ineffective
supervisory practices — that induce stress. While the felt need may suggest training,
the actual need may be to eliminate these stress factors. Regardless of the situation, the
needs assessor must clearly determine in each case what the key stakeholders expect.
We should not ignore felt needs since they are often symptoms of deeper needs
that must be addressed. We may choose to relieve some of these symptoms until we are
able to solve the problems. However, the needs assessment should help us identify root
causes so that we are not constantly fixing the symptoms of problems.
Another issue to consider is the human tendency to perceive the problems and
solutions we are most accustomed to dealing with. For example, a training professional
may be more likely to interpret a performance problem as a training problem, while a
psychologist may see the same performance problem as the result of individual
personality problems which should be addressed through counseling. A well-planned needs
assessment provides a more balanced analysis of the situation.
The Purpose of Needs Assessment
In the context of organizational performance, the needs assessment process
provides direction and focus in the problem-solving process through identifying,
documenting, and selecting appropriate problems. A comprehensive needs assessment
provides a systematic way to plan strategically for improved performance. In simple
terms, a human performance problem exists (1) when something is happening that should
not be happening, or (2) when something is not happening that should be happening. The
purpose of the needs assessment is to analyze these performance gaps so that they can
be closed. Within the human resource context, needs assessment is a crucial planning
strategy. One of the main purposes of human resource planning is to ensure that the
organization has enough people with the necessary knowledge, skills and motivation to
accomplish the organization’s strategic business plans. As a result, needs assessment is
central to the HR planning process. Within the training context, needs assessment
provides a snapshot of the skills and knowledge of people in an organization. Training
needs assessments can determine 1) levels of optimal performance and standards for
excellence; 2) evidence of individuals’ actual performance levels; 3) attitudes affecting
performance; and 4) root causes of performance problems. By systematically analyzing
training needs, we can identify solutions to performance problems that will provide the
best return on training and development investments.
A number of inefficiencies are likely to occur when performance improvement
initiatives are implemented without first performing a needs assessment. An organization
may use a training program when other interventions might be more effective. Even if
training is a logical solution, the organization may select the wrong objectives or put
inappropriate emphases on them. Ultimately, people may be trained and sent back to
their jobs without the necessary skills and knowledge. Despite widespread recognition
of the importance of needs assessment, the process is often skipped or cut short. Reasons
cited include:
• Takes too much time;
• Costs too much money;
• Lack of people qualified to assess needs;
• Don’t really want to know what’s wrong;
• The findings might make someone look bad;
• Don’t understand the strategic impact.
Whenever possible, conducting needs assessment will actually help avoid wasted
time, effort, and money
Levels of HRD Needs
a. Organizational level needs– changes in mandate of state agency, expectations
of customers/citizens through surveys may reveal a need for organizations to change
behavior of service providers of retooling them.
b. Task analysis needs (job analysis) – skill requirements to perform a given
task could help determine needs of the current holders of jobs
c. Person analysis needs– the competencies of current job holders could also
be assessed to determine their suitability for the jobs they currently hold
7.3 DESIGNING AND CREATING HRD PROGRAMMES
HRD programs and interventions can be used to address a wide range of issues
and problems in an organization. They are used to orient and socialize new employees
into the organization, provide skills and knowledge, and help individuals and groups to
become more effective. To ensure that these goals are achieved, care must be taken
when designing and delivering HRD programs.
Armed with needs assessment data, the focus now turns to designing an effective
HRD program. The key activities involved in designing an HRD program are:
1. Setting objectives
2. Selecting the trainer or vendor
3. Developing a lesson plan
4. Selecting program methods and techniques
5. Preparing materials
6. Scheduling the program
Figure shows where these activities fit within the training and HRD process model.
It is important to stress at the outset that program design can be a lengthy process. HRD
professionals must simultaneously accomplish several other critical tasks throughout
the design process. Assuming that an important need for training has been identified, the
manager’ or HRD professional must then translate that need into a set of objectives.
Objectives define what the participants are expected to learn or do as a result of
participating in the HRD program or intervention. However, some managers and HRD
professionals may be tempted to make a decision as to whether to design the program
internally or purchase the program or its key parts, or to establish a, contract to consultant
to serve as a trainer, buy program materials, and so on, before establishing objectives. In
outside purchases, the organization typically uses the objectives developed by the vendor
rather than defining its own. However, the chances of success are far greater if the
organization identifies the HRD objectives first, before deciding whether to design or
purchase the program.
Statements of HRD needs are often not detailed enough to be used as specific
program outcomes. Rather, they state the problem at hand, and ideally, include a diagnosis
of the problem’s causes. Objectives, in contrast, should state the outcome the program
is intended to produce, including the specific performance expected, the conditions under
which it will be performed, and the criteria to be used to judge as to whether the objective
has been achieved or not.

7.4 DEFINITION OF HRD INTERVENTION

The term Intervention refers to a set of sequenced, planned actions or events
intended to help an organization to increase its effectiveness. Interventions purposely
disrupt the status quo; they are deliberate attempts to change an organization or sub-unit
toward a different and more effective state.
Defining the objectives for the training or HRD program is one of the first things
an HRD professional should do - after completing the needs assessment. Robert Mager
defines an objective as a “description of a performance the HRD managers want learners
to be able to exhibit before they consider them competent. As such, HRD or training
program objectives describe the intent and the desired result of the HRD program. The
results can be achieved in many ways (such as lectures, role play, and coaching) but this
is not specified in the objective. Rather, objectives are used as the basis for determining
which methods should be used to achieve the specified outcome.
As stated, objectives are essential to a successful training or HRD program. In
addition to forming the basis for selecting the program content and methods, objectives
are used by the organization to evaluate the program’s success, and they also help
participants to focus their own attention and efforts during the program.’ In short,
objectives tell us where the program is going and how it is programmed to achieve the
desired results.
Human Resource Development Interventions
A. The following interventions deal with interpersonal relationships and group dynamics.
1. T Groups: This traditional change method provides members with experiential
learning about group dynamics, leadership, and interpersonal relations. The basic T Group
brings ten to fifteen strangers together with a professional trainer to examine the social
dynamics that emerge from their interactions. Members gain feedback about the impact
of their own behaviors on each other and learn about group dynamics.
2. Process Consultation: This intervention focuses on interpersonal relations
and social dynamics occurring in work groups. Typically, a process consultant helps
group members diagnose group functioning and devise appropriate solutions to process
problems, such as dysfunctional conflict. poor communications, and ineffective norms.
 The aim is to help members gain the skills and understanding necessary to identify
and solve problems themselves.
3. Third Party Interventions: This change method is a form of process
consultation aimed at dysfunctional interpersonal relations in organizations.
Interpersonal conflict may derive from substantive issues, such as disputes over work
methods, or from interpersonal issues, such as miscommunication. The third party
intervener helps people resolve conflicts through such methods as problem solving,
bargaining, and conciliation.
4. Team Building: This intervention helps work groups become more effective
in accomplishing tasks. Like process consultation, team building helps members diagnose
group processes and devise solutions to problems. It goes beyond group processes,
however, to include examination of the group’s task, member roles, and strategies for
performing tasks. The consultant also may function as a resource person offering
expertise related to the group’s tasks.
B. The following Interventions deal with human processes that are more system
wide than individualistic or small-group oriented.
1. Organization Confrontation Meeting: This change method mobilizes
organization members to identify problems, set action targets, and begin working on
problems. It is usually applied when organizations are experiencing stress and when
management needs to organize resources for immediate problem solving.
The intervention generally includes various groupings of employees in identifying and
solving problems.
2. Intergroup Relations: These interventions are designed to improve
interactions among different groups or departments in organizations. The microcosm
group intervention involves a small group of people whose backgrounds closely match
the organizational problems being addressed. This group addresses the problem and
develops means to solve it. The Intergroup conflict model typically involves a consultant
helping two groups understand the causes of their conflict and choose appropriate
solutions.
3. Large-group Interventions: These interventions involve getting abroad variety
of stakeholders into a large meeting to clarify important values, to develop new ways of
working, to articulate a new vision for the organization, or to solve pressing organizational
problems. Such meetings are powerful tools for creating awareness of organizational
problems and opportunities and for specifying valued directions for future action.
 4. Grid Organization Development: This normative intervention specifies a
particular way to manage an organization. It is packaged HRD program that includes
standardized instruments for measuring organizational practices and specific procedures
for helping organizations to achieve the prescribed approach.
Criteria for Effective Interventions:
In HRD Interventions the three major criteria define the effectiveness of an
intervention:
1. The Extent to which it (the Intervention) fits the needs of the organization.
This criterion concerns the extent to which the intervention is relevant to the
organization and its members. Effective interventions are based on valid information
about the organization’s functioning; they provide organization members with
opportunities to make free and informed choices; and they gain members’ internal
commitment to those choices.
Valid information is the result of an accurate diagnosis of the organization’s
functioning. It must reflect fairly what organization members perceive and feel about
their primary concerns and issues. Free and informed choice suggests that members are
actively involved in making decisions about changes that will affect them. It also means
that interventions will not be imposed on them. Internal commitment means that
organization members accept ownership of the intervention and take responsibility for
implementing it. If interventions are to result in meaningful changes, management, staff,
and other relevant members must be committed to carrying them out.
2. The degree to which it is based on causal knowledge of intended outcomes
Because interventions are intended to produce specific results, they must be based
on valid knowledge that those outcomes actually can be produced. Otherwise, there is
no scientific basis for designing an effective HRD intervention. Unlike other exact
sciences (like medicine or engineering) knowledge of the effect of HRD interventions
is in a rudimentary stage of development. Moreover, few attempts have been made to
examine the comparative effects of different HRD techniques. All of these factors make
it difficult to know whether one method is more effective than another.
Despite these difficulties, attempts are being made to evaluate different HRD
intervention methods, so that we can gain the ability to predict outcomes of various
interventions and thus be able to use the most appropriate interventions for specific
problems.
3. The extent to which the HRD intervention transfers change-management
competence to organization members.
HRD interventions can be said to be effective, only if they make the organization
members competent to initiate, implement and monitor change on their own. The values
underlying HRD suggest that organization members should be better able to carry out
planned change activities on their own, following the intervention. They should gain
knowledge and skill in managing change from active participation in designing and
implementing the intervention. Competence in change management is essential in today’s
environment, where technological, social, economic, and political changes are rapid and
persistent.
Factors that Impact the Success Of HRD Interventions:
I. Factors relating to Change Situation: These relate to the environment of the
organization and include the physical and human environment.
1. Readiness for Change:
Intervention success depends heavily on the organization being ready for planned
change. Indicators for readiness for change include sensitivity to pressures for change
(higher sensitivity means greater readiness to change); dissatisfaction with the status
quo; availability of resources to support change; and, commitment of significant
management time.
2. Capability to Change:
Managing planned change requires particular knowledge and skills including the
ability to motivate change, to lead change, to develop political support, to manage
transition, and to sustain momentum. If organization members do not have these
capabilities, then a preliminary training intervention may be needed to prepare the
members for the major change.
3. Cultural Context:
The national culture within which an organization is embedded can exert a powerful
influence on members’ reactions to change, and so intervention design must account for
the cultural values and assumptions held by organization members. This makes it important
for HRD interventions to be adapted to different cultures.
4. Capabilities of the Change Agent (HRD Consultant):
The success of HRD interventions depend to a great extent on the expertise,
experience and talents of the consultant. No consultant should undertake to implement
interventions that are beyond their level of competence or their area of expertise. The
ethical guidelines under which HRD practitioners operate require full disclosure of the
applicability of their knowledge and expertise to the client’s situation.
II. Factors Related to the Target of Change:
These relate to the specific targets at which HRD interventions are targeted. The
targets of change can be different issues of the organization and at different levels.
A. Organizational Issues
1. Strategic Issues:
Strategic issues refer to major decisions of organizations such as what products
or services to offer, which markets to serve, mergers, acquisitions, expansions, etc.
HRD Interventions aimed at these strategic issues are called strategic interventions and
are among the most recent HRD interventions and include integrated strategic change,
mergers and acquisitions, transorganizational development, organizational learning, etc.
2. Technology and Structure Issues:
These refer to issues relating to how organizations divide their work amongst
departments and how they coordinate between departments. They also must make
decisions about how to deliver products or services and how to link people to tasks.
HRD interventions aimed at these issues are called techno-structural interventions and
include HRD activities relating to organizational design, employee involvement and work
design.
3. Human Resource Issues:
These issues are concerned with attracting competent people to the organization,
setting goals for them, appraising and rewarding their performance, and ensuring that
they develop their careers and manage stress. HRD techniques aimed at these issues are
called human resource management interventions.
4. Human Process Issues:
These issues have to do with social processes occurring among organization
members, such as communication, decision-making, leadership, and group dynamics.
HRD methods focusing on these kinds of issues are called human process interventions;
included among them are some of the most common HRD techniques, such as conflict
resolution and team building.
B. Organizational Levels
HRD interventions are aimed at different levels of the organization: individual,
group, organization and trans-organization (for example different offices of the
organization around the globe; or between organization and its suppliers, customers,
etc.)
HRD interventions are usually aimed at specific levels, and must address cross-
level effects and perhaps integrate interventions affecting different levels to achieve
overall success.

7.5 TECHNO-STRUCTURAL INTERVENTIONS

These interventions deal with an organization’s technology (for examples its task
methods and job design) and structure (for example, division of labor and hierarchy).
These methods are becoming popular in HRD because of the growing problems relating
to productivity and organizational effectiveness. These interventions are rooted in the
disciplines of engineering, sociology, and psychology and in the applied fields of socio-
technical systems and organization design.
Consultants place emphasis both on productivity and human fulfillment.
1. Structural Design: This change process concerns the organization’s division
of labor – how to specialize task performances. Interventions aimed at structural design
include moving from more traditional ways of dividing the organization’s overall work
(such as functional, self-contained-unit, and matrix structures) to more integrative and
flexible forms (such as process-based and network-based structures). Diagnostic
guidelines exist to determine which structure is appropriate for particular organizational
environments, technologies, and conditions.
2. Downsizing: This intervention reduces costs and bureaucracy by decreasing
the size of the organization through personnel layoffs, organization redesign, and
outsourcing. Each of these downsizing methods must be planned with a clear
understanding of the organization’s strategy.
3. Re-engineering: This recent intervention radically redesigns the organization’s
core work processes to create tighter linkage and coordination among the different tasks.
This workflow integration results in faster, more responsive task performance.
Reengineering is often accomplished with a new information technology that permits
employees to control and coordinate work processes more effectively. Reengineering
often fails if it ignores basic principles and processes of HRD.
The next three interventions: Parallel Structures, High-involvement organizations and
Total Quality Management (TQM), fall under the broad category of interventions called
Employee Involvement (EI) interventions. These interventions are aimed at improving
employee well-being and organizational effectiveness.
4. Parallel Structures: This intervention involves members in resolving ill-
defined, complex problems and build adaptability into bureaucratic organizations. Also
known as “collateral structures”, “Dualistic structures” or “shadow structures”, parallel
structures operate in conjunction with the formal organization. They provide members
with an alternative setting in which to address problems and to propose innovative
solutions free from the formal organization structure and culture. For example, members
may attend periodic off-site meetings to explore ways to improve quality in their work
area or they may be temporarily assigned to a special project of facility to devise new
products or solutions to organizational problems. Parallel structures facilitate problem
solving and change by providing time and resources for members to think, talk, and act
in completely new ways.
Consequently, norms and procedures for working in parallel structures are entirely
different from those of the formal organization.
5. High-involvement Organizations (HIO’s): These interventions are aimed at
creating organizations with high involvement of employees. They create organizational
conditions that support high levels of employee participation. What makes HIO’s unique
is the comprehensive nature of their design process. Unlike parallel structures that do
not alter the formal organization, in HIOs almost all organization features are designed
jointly by management and workers to promote high levels of involvement and
performance, including structure, work design, information and control systems, physical
layout, personnel policies, and reward systems. Some of the features of HIOs are:
a. mployees have considerable influence over decisions
b. Members receive extensive training in problem-solving techniques, plant operation,
and organizational policies.
c. Information is shared widely within the organization and employees have easy access
to operational and issue-oriented information.
d. Rewards are tied closely to unit performance.
6. Total Quality Management: TQM is the most recent and, along with high
involvement organizations, the most comprehensive approach to employee involvement.
Also known as “continuous process improvement” and “continuous quality”, TQM grew
out of a manufacturing emphasis on quality control and represents a long-term effort to
orient all of an organization’s activities around the concept of quality. Quality is achieved
when organizational processes reliably produce products and services that meet or exceed
customer expectations.
Although it is possible to implement TQM without employee involvement, member
participation in the change process increases the likelihood that it will become part of
the organization’s culture. Today, continuous quality improvement is essential for global
competitiveness.
7. Work design: This refers to HRD interventions aimed at creating jobs, and
work groups that generate high levels of employee fulfillment and productivity. This
techno-structural intervention can be part of a larger employee involvement application,
or it can be an independent change program. Work design has been researched and applied
extensively in organizations. Recently, organizations have tended to combine work design
with formal structure and supporting changes in goal setting, reward systems, work
environment, and other performance management practices.
There are three approaches to work design.
The Engineering approach focuses on efficiency and simplification, and
results in traditional job and work group designs. Telephone operators and data-entry
positions are examples of this job design. A second approach is work enrichment and
rests on motivational theories and attempts to enrich the work experience. Job
enrichment involves designing jobs with high levels of meaning, discretion, and knowledge
of results. A well researched model focusing on job attributes has helped clear up
methodological problems with this important intervention. The third approach is socio-
technical approach and seeks to optimize both social and technical aspects of work
systems.
This method has led to a popular form of work design called “self managed teams”
which are composed of multi-skilled members performing interrelated tasks. Members
are given the knowledge, information, and power necessary to control their own task
behaviors with relatively little external control.
7.6 STRATEGIC INTERVENTIONS
These interventions link the internal functioning of the organization to the larger
environment and transform the organization to keep pace with changing conditions. These
interventions are amongst the newest additions to HRD interventions. They are
implemented organization-wide and bring about a fit between business strategy, structure,
culture and the larger environment.
1. Integrated Strategic Change:
This comprehensive HRD intervention describes how planned change can make a
value-added contribution to strategic management. It argues that business strategies and
organizational systems must be changed together in response to external and internal
disruptions. A strategic change plan helps members manage the transition between a
current strategy and organization design and the desired future strategic orientation.
2.Trans organization development:
This intervention helps organizations to enter into alliances, partnerships and joint
ventures to perform tasks or solve problems that are too complex for single organizations
to resolve. It helps organizations recognize the need for partnerships and develop
appropriate structures for implementing them.
3. Merger and Acquisition Integration:
This intervention describes how HRD practitioners can assist two or more
organizations to form a new entity. Addressing key strategic leadership and cultural issues
prior to the legal and financial transaction helps to smooth operational integration.
4. Culture Change:
This intervention helps organizations to develop cultures (behaviors, values,
beliefs and norms) appropriate to their strategies and environments. It focuses on
developing a strong organization culture to keep organization members pulling in the
same direction.
5. Self-designing organizations:
This change program helps organizations gain the capacity to alter themselves
fundamentally. It is a highly participative process, involving multiple stakeholders in
setting strategic directions and designing and implementing appropriate structures and
processes. Organizations learn how to design and implement their own strategic changes.
6. Organization learning and knowledge management:
This intervention describes two interrelated change processes: organization
learning (OL), which seeks to enhance an organization’s capability to acquire and develop
new knowledge; and knowledge management (KM), which focuses on how that knowledge
can be organized and used to improve organization performance.
These interventions move the organization beyond solving existing problems so
as to become capable of continuous improvement.

7.7 CASE STUDY

Ram Ram Ltd a company into music industry which records the music and market
through the cassettes from past 15 years started experiencing a new challenge. The
manufacturing unit of Ram Ram Ltd at Bangalore had a workforce of 1010 employees
and manufactured only cassettes. The market for cassettes was badly effected by piracy
and a fast growing CD market. So the management at Ram Ram which had already
downsized by 1800 employees over two years through the VRS was again considering
the idea of manpower reduction. The union however opposed this idea strongly. The
management at the plant was in fix as to how can it reduce the cost.
Ram Ram Ltd could not forecast the total demand for the new quarter. It failed to
forsee the technological changes in the market and the influence of such changes in
their product. The music industry itself was fast becoming stagnant. Had the management
at Ram Ram Ltd prepared itself to face these challenges, it would have averted the current
crisis. At this stage it can neither relocate the employees nor layoff nor can it bear their
burden and run into red.
1. If you are the HR Manager, what will be your career planning for employees.

7.8 NOTES
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…………………………………………………………………………………………………………………………………………… ..
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…………………………………………………………………………………………………………………………………………….
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…………………………………………………………………………………………………………………………………………….
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…………………………………………………………………………………………………………………………………………….
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…………………………………………………………………………………………………………………………………………….
…
……
……
……
……
………
……
……
……
………
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
………
……
……
……
………
……
…
……
……
……
……
………
……
……
……
………
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
………
……
……
……
………
……
…
……
……
……
……
………
……
……
……
………
……
……
……
………
……
……
……
……
……
……
………
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
………
……
……
……
………
……
…
……………
………………
………………
……………
……………
……………
…………
…………
…………
…………
…………
…………
…………
…………
…………
………………
……………
..
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
…
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
……
7.9 SUMMARY
Therefore, in the present unit, the concept says the origin of HRD needs, designing
and creating HRD programme, HRD Intervention and strategic intervention have been
discussed at length along with its critical perceptions of HRD. The HRD assessing
needs helps us to how to improve the existing system in an organization and Intervention
which will helps to quality improvement of HRD Progress.

7.10 KEY WORDS

HRD Intervention: Intervention refers to a set of sequenced, planned actions or events
intended to help an organization to increase its effectiveness
Problem –Solving: Act of defining a problem; determining the cause of the problem;
identifying, prioritizing and selecting alternatives for a solution; and implementing a
solution.

7.11 SELF ASSESSMENT QUESTIONS

1. Explain the Designing and creating HRD Programme
2. Discuss the criteria for effective interventions
3. Explain factors which will influence on HRD intervention.
4. Write a note on Techno- structural interventions
5. Briefly explain the strategic HRD intervention

7.12 REFERENCES
1. Pareek, V and Rao T.V. Designing and Managing Human Resource Systems, New
Delhi: Oxford and IBH Publishing Co., 1981.
2. Rao T.V Pereira D.F. Recent Experiences in Human Resource Development, New
Delhi: Oxford and IBH Publishing Co.,1986
3. Ulrich D – Human Resource Champions, Harvard Business School Press – 1997
4. Kalpana R. – Balance Score Card – Harvard Business Review, January-February.
(1992)
UNIT – 8: TRANING METHODS

Structure:
8.0 Objectives
8.1 Introduction
8.2 Training
8.3 Training Methods
8.4 Strategic approach to training and development
8.5 Case study
8.6 Notes
8.7 Summary
8.8 Key words
8.9 Self Assessment Questions
8.10 References
8.0 OBJECTIVES
After studying this unit, you should able to;
• Define Framework of HRD Process
• Discuss the Process of HRD
• Explain the aptitude, knowledge, values , skills of human relation
• Discuss the loyalty of commitments of employees
• Analysis leadership development

8.1 INTRODUCTION
Training and Development is a combined role often called Human Resources
Development (HRD), meaning the development of “human” resources to remain
competitive in the marketplace. Training focuses on doing activities today to develop
employees for their current jobs and development is preparing employees for future
roles and responsibilities.
Strategic HR can assist with your Training and Development needs by:
 Identifying, customizing and delivering effective training solutions
 Developing a multi-rater / 360 degree feedback assessment
 Developing succession planning and emerging leader programs
 Designing a competency-based culture tied to business strategies and goals
 Creating and/or improving the performance management system
 Designing a reward and recognition program
 Conducting employee opinion surveys and focus groups
 Establishing a formal career development planning program
 Providing assessment solutions to help identify strengths and areas of
opportunity for development of employees
 Customizing teambuilding events to strengthen your team and improve
productivity
8.2 TRAINING
The designer of the training program needs to understand each of the methods
and the delivery system to determine the best method for meeting training objectives,
given the organizational constraints. Instructional methods differ in their ability to
influence knowledge, skills and attitudes, so the training designer must be able to evaluate
a method’s strengths and weaknesses to make good decisions about its use. Although the
method’s effectiveness in meeting the learning objective should be the major criterion
for selection, other consideration are costs, time needed to develop material, and the
time allotted for training session.
A 2003 survey conducted by Raining magazine revealed that, contrary to popular
belief, classroom programs were still the most popular instructional method (see Table).
Methods Percent
Instructor-led Classroom Programs 91
Self-Study, Web-based 44
Job-based Performance Support 44
Public Seminars 42
Case Studies 40
Role Plays 35
Games or Simulations, Non-computer-based 25
Self-Study, Non-computer-based 23
Virtual Classroom, with Instructor 21
Games or Simulations, Computer-based 10
Experiential Programs 6
Virtual Reality Programs 3
Media
Workbooks/Manuals 79
Internet/Intranet/Extranet 63
CD-ROM/DVD/Diskettes 55
Videotapes 52
Teleconferencing 24
Video conferencing 23
Satellite/Broadcast TV 12
Audiocassettes 4
The survey indicated that 91 percent of organizations use the classroom format
“always” or “often” to deliver at least some of their training. There has been considerable
recent growth in web-based self-study programs and work-based performance support
programs. More general public seminars continue to remain popular as well. Data
concerning training media usage are reported in Table. Workbooks and manuals continue
to be widely used, though there has been a substantial recent increase in the use of the
Internet/company intranets and CD-ROM/DVDs for provide training

8.3 TRAINING METHODS

On Job Training and off the Job Training Methods
A large variety of methods of training are used in business. Even within one
organization different methods are used for training different people. All the methods
are divided into two classifications for:
A. On-the-job Training Methods:
1. Coaching
2. Mentoring
3. Job Rotation
4. Job Instruction Technology
5. Apprenticeship
6. Understudy
B. Off-the-Job Training Methods:
1. Lectures and Conferences
2. Vestibule Training
3. Simulation Exercises
4. Sensitivity Training
5. Transactional Training
A. On-the-job training Methods:
Under these methods new or inexperienced employees learn through observing
peers or managers performing the job and trying to imitate their behaviour. These methods
do not cost much and are less disruptive as employees are always on the job, training is
given on the same machines and experience would be on already approved standards, and
above all the trainee is learning while earning. Some of the commonly used methods
are:
1. Coaching:
Coaching is a one-to-one training. It helps in quickly identifying the weak areas
and tries to focus on them. It also offers the benefit of transferring theory learning to
practice. The biggest problem is that it perpetrates the existing practices and styles. In
India most of the scooter mechanics are trained only through this method.
2. Mentoring:
The focus in this training is on the development of attitude. It is used for
managerial employees. Mentoring is always done by a senior inside person. It is also
one-to- one interaction, like coaching.
3. Job Rotation:
It is the process of training employees by rotating them through a series of related
jobs. Rotation not only makes a person well acquainted with different jobs, but it also
alleviates boredom and allows to develop rapport with a number of people. Rotation
must be logical.
4. Job Instructional Technique (JIT):
It is a Step by step (structured) on the job training method in which a suitable
trainer (a) prepares a trainee with an overview of the job, its purpose, and the results
desired, (b) demonstrates the task or the skill to the trainee, (c) allows the trainee to
show the demonstration on his or her own, and (d) follows up to provide feedback and
help. The trainees are presented the learning material in written or by learning machines
through a series called ‘frames’. This method is a valuable tool for all educators (teachers
and trainers). It helps us:
a. To deliver step-by-step instruction
b. To know when the learner has learned
c. To be due diligent (in many work-place environments)
5. Apprenticeship:
Apprenticeship is a system of training a new generation of practitioners of a skill.
This method of training is in vogue in those trades, crafts and technical fields in which a
long period is required for gaining proficiency. The trainees serve as apprentices to
experts for long periods. They have to work in direct association with and also under the
direct supervision of their masters.
The object of such training is to make the trainees all-round craftsmen. It is an
expensive method of training. Also, there is no guarantee that the trained worker will
continue to work in the same organisation after securing training. The apprentices are
paid remuneration according the apprenticeship agreements.
6. Understudy:
In this method, a superior gives training to a subordinate as his understudy like an
assistant to a manager or director (in a film). The subordinate learns through experience
and observation by participating in handling day to day problems. Basic purpose is to
prepare subordinate for assuming the full responsibilities and duties.
B. Off-the-job Training Methods:
Off-the-job training methods are conducted in separate from the job environment,
study material is supplied, there is full concentration on learning rather than performing,
and there is freedom of expression. Important methods include:
1. Lectures and Conferences:
Lectures and conferences are the traditional and direct method of instruction.
Every training programme starts with lecture and conference. It’s a verbal presentation
for a large audience. However, the lectures have to be motivating and creating interest
among trainees. The speaker must have considerable depth in the subject. In the colleges
and universities, lectures and seminars are the most common methods used for training.
2. Vestibule Training:
Vestibule Training is a term for near-the-job training, as it offers access to
something new (learning). In vestibule training, the workers are trained in a prototype
environment on specific jobs in a special part of the plant.
An attempt is made to create working condition similar to the actual workshop
conditions. After training workers in such condition, the trained workers may be put on
similar jobs in the actual workshop.
 This enables the workers to secure training in the best methods to work and to get
rid of initial nervousness. During the Second World War II, this method was used to
train a large number of workers in a short period of time. It may also be used as a
preliminary to on-the job training. Duration ranges from few days to few weeks. It
prevents trainees to commit costly mistakes on the actual machines.
3. Simulation Exercises:
Simulation is any artificial environment exactly similar to the actual situation.
There are four basic simulation techniques used for imparting training: management
games, case study, role playing, and in-basket training.
(a) Management Games:
Properly designed games help to ingrain thinking habits, analytical, logical and
reasoning capabilities, importance of team work, time management, to make decisions
lacking complete information, communication and leadership capabilities. Use of
management games can encourage novel, innovative mechanisms for coping with stress.
Management games orient a candidate with practical applicability of the subject.
These games help to appreciate management concepts in a practical way. Different games
are used for training general managers and the middle management and functional heads
– executive Games and functional heads.
(b) Case Study:
Case studies are complex examples which give an insight into the context of a
problem as well as illustrating the main point. Case Studies are trainee centered activities
based on topics that demonstrate theoretical concepts in an applied setting.
A case study allows the application of theoretical concepts to be demonstrated,
thus bridging the gap between theory and practice, encourage active learning, provides
an opportunity for the development of key skills such as communication, group working
and problem solving, and increases the trainees” enjoyment of the topic and hence their
desire to learn.
(c) Role Playing:
Each trainee takes the role of a person affected by an issue and studies the impacts
of the issues on human life and/or the effects of human activities on the world around us
from the perspective of that person.
 It emphasizes the “real- world” side of science and challenges students to deal
with complex problems with no single “right” answer and to use a variety of skills beyond
those employed in a typical research project.
In particular, role-playing presents the student a valuable opportunity to learn not
just the course content, but other perspectives on it. The steps involved in role playing
include defining objectives, choose context & roles, introducing the exercise, trainee
preparation/research, the role-play, concluding discussion, and assessment. Types of role
play may be multiple role play, single role play, role rotation, and spontaneous role play.
(d) In-basket training:
In-basket exercise, also known as in-tray training, consists of a set of business
papers which may include e-mail SMSs, reports, memos, and other items. Now the trainer
is asked to priorities the decisions to be made immediately and the ones that can be
delayed.
4. Sensitivity Training:
Sensitivity training is also known as laboratory or T-group training. This training
is about making people understand about themselves and others reasonably, which is
done by developing in them social sensitivity and behavioral flexibility. It is ability of an
individual to sense what others feel and think from their own point of view.
It reveals information about his or her own personal qualities, concerns, emotional
issues, and things that he or she has in common with other members of the group. It is
the ability to behave suitably in light of understanding.
A group’s trainer refrains from acting as a group leader or lecturer, attempting
instead to clarify the group processes using incidents as examples to clarify general
points or provide feedback. The group action, overall, is the goal as well as the process.
Sensitivity training Program comprises three steps (see Figure 18.7)
[* File contains invalid data | In-line.JPG *]
5. Transactional Analysis:
It provides trainees with a realistic and useful method for analyzing and
understanding the behavior of others. In every social interaction, there is a motivation
provided by one person and a reaction to that motivation given by another person.
 This motivation reaction relationship between two persons is known as a
transaction. Transactional analysis can be done by the ego (system of feelings
accompanied by a related set of behaviors states of an individual).
Child:
It is a collection of recordings in the brain of an individual of behaviors, attitudes,
and impulses which come to him/her naturally from his/her own understanding as a child.
The characteristics of this ego are to be spontaneous, intense, unconfident, reliant,
probing, anxious, etc. Verbal clues that a person is operating from its child state are the
use of words like “I guess”, “I suppose”, etc. and non verbal clues like, giggling, coyness,
silent, attention seeking etc.
Parent:
It is a collection of recordings in the brain of an individual of behaviors, attitudes,
and impulses imposed on her in her childhood from various sources such as, social,
parents, friends, etc.
The characteristics of this ego are to be overprotective, isolated, rigid, bossy,
etc. Verbal clues that a person is operating from its parent states are the use of words
like, always, should, never, etc and non-verbal clues such as, raising eyebrows, pointing
an accusing finger at somebody, etc.
[* File contains invalid data | In-line.JPG *]
Adult:
It is a collection of reality testing, rational behaviour, decision making, etc. A
person in this ego state verifies, updates the reaction which she has received from the
other two states. It is a shift from the taught and felt concepts to tested concepts.
All of us show behavior from one ego state which is responded to by the other
person from any of these three states.

8.4 STRATEGIC APPROACH TO TRAINING AND DEVELOPMENT

Many of us believe that employees training and development responsibility rests
with the HR department. It was believed that HR professionals should identify the training
needs of employees, design the training program, implement it and also take the feedback
and make appropriate changes in the program. But nowadays many organizations top
management is keen on various training and development activities initiated in the
organization. Top management along with the HR department decide the types of training
and development program, total expenditure, return on investment, time period allotted
for training etc.
HRD aims at equipping employees with new and essential skills required for the
personal and organizational growth. Employees are encouraged to learn new skills through
the various training and development activities conducted in the organization.
When we interpret training and development as strategic, it means the vision;
mission, business objectives and goals are interlinked with the training and development
programs of the organization. When business strategies are linked with the HRM strategies
it results in the appropriate HRM policies and procedures like having a direct link on
recruitment, selection, induction, training and development, appraisal and assessment,
reward systems and career development of employees.
Organizations undertake training and development programs for varied reasons.
Many of them conduct programs to meet a short term requirement which does not have
a link to organizations requirements or business strategies. Some organizations have
training and development programs which are derived from the organizations objectives
and plans. But some organizations conduct training and development programs to ensure
their employees can withstand present and future business requirements.
Example: Computerization of core banking activities was the business requirement in
the recent decades. The employees should be having the skills, knowledge and ability to
work with computers and deliver the customer service. Hence it is appropriate for the
banks to design and implement training and development programs on Computers,
Software, and Hardware etc. Strategic HRD aims at linking the training and development
programs with the business requirements of the organization.

8.5 CASE STUDY: 1

Tata Sky
Tata Sky was booming and racing to keep up. The company, a combination of Indian
behemoth Tata Group and Britain’s Sky television brand, was the second firm in India to
offer direct-to-home satellite television and other services. After two years of rapid
expansion, management wanted more speed, but bureaucracy and conflict were limiting
efficiency. “Because we are neither simply entertainment nor telecom nor consumer
household, we have people with backgrounds in different industries and very different
working styles,” said Charanjit Lehal, senior training manager. “Nobody was speaking
the same (figurative) language, and it was affecting efficiency—we could see a pattern
of meeting after meeting, and quick decisions were not being made.” Executives observed
the following types of behaviors: • People avoided each other instead of confronting
problems. • Employees returned from meetings with other functions complaining about
the list of unrealistic projects they were being asked to accomplish.
• Team problems were being escalated to high-level executives rather than being
resolved at an earlier stage. Top executives requested evaluations on all 120 managers in
the company. They were assessed on fourteen competencies, and the one that was found
lacking was “communicating productively.” Many managers responded that they had “no
inclination to communicate,” and could not dialogue effectively. “We decided to attack
this gap with a constructive measure,” Lehal said. “We knew we wanted a new
intervention—the only concern was that we choose the right one.” THE TRAINING
COURSE After perusing dozens of training courses, Tata Sky learning and development
team led by Bhaskar Bhattacharya, vice president of learning and development, piloted
three different workshops conducted by external trainers. Based on feedback and results,
they chose to move forward with Vital Smarts Crucial Conversations Training.
Lehal found the skills taught in the course were clear. The tests and exercises
were effective at engaging participants. He also liked how the action items required by
the course helped each participant customize the principles to their specific needs. Based
on the course’s value, Lehal was able to secure executive approval by demonstrating how
the results would lead to a return on investment. In addition to the results and the skills,
Lehal found the training integrated seamlessly across cultures. There was no cultural
confusion between the American-based course and Tata Sky’s Indian employees.
“Dialogue is a necessity for any conversation,” Lehal said. “The core content of the
course has universal application.” He acknowledged that, speaking generally, Americans
may be direct in conversations while people from eastern cultures may build more
background before coming to a main point. “While techniques differ, we still need to get
on the table what you are trying to say and what I am trying to say, and that is what this
course teaches,” he said. Lehal’s experience was that with sufficient preparation cultural
differences did not present significant challenges. Based on advice from a VitalSmarts
master trainer, he also surveyed participants before they attended the course and built
real-life examples for use in the course from their anonymous responses. This ensured
they saw immediate application to their work environment. Lehal conducted two-day
workshops at each of Tata Sky’s four regional offices, focusing on the customer service
function before moving to other functions. About eighty managers completed the
workshop that first year.
 RESULTS Tata Sky is seeing the change in behavior they hoped for after boosting
its managers’ communications skills. “This course is breaking down passive or aggressive
cultures that had been found in various divisions,” Lehal said. “It’s become a very
successful culture-building intervention.” Some results from the training: • Two teams
had been struggling to cooperate. One reported that the other had been “moving to silence”
and withholding their point of view, but is now “stepping up to crucial conversations.” •
One manager told Lehal when she came into the training that she was looking for a new
job because she was being made a scapegoat in her team. She was in “complete silence
mode” and avoiding the issue. After the training she talked to her supervisor about it and
is still with the company. • The head of a service function was so impressed by the word-
of-mouth on the course among his managers that he asked Lehal to conduct it for his
senior team of general managers and vice-presidents. • On a personal level, employees
have shared with Lehal that the course has helped them sort out communication problems
with their parents left behind when Tata Sky moved them to a new city. Or with their
teenagers—certainly a challenge that transcends culture.
Following are testimonials e-mailed after the course: • “I could relate the program
the very next day at the office. On Friday during a conversation with the team, I could
make out the ‘silence’ shown by one person and this tool helped me engage him into
meaningful dialogue.” • “I feel [my] team has bonded once again.” • “I put crucial
conversations skills in to motion the very next day, and it has certainly helped clear the
air.” When asked whether he would recommend Crucial Conversations, Lehal was
somewhat surprised by the question: “What other workshop offers so much skill
development? Such excellent audiovisuals? With so much of the course absolutely
interactive? And is so well structured in terms of the workbook, videos, exercises, self-
testing, and post-training? All of these things I’ve recommended to my peers at other
organizations.” Moving forward with Crucial Conversations at Tata Sky, Lehal is focusing
next on intact teams from human resources, IT, supply chain, finance, and more.
CASE STUDY: 2
TRAINING EFFICACY
JK Company is a leading forty year old automobile manufacturing company based
in Mangalore, manufacturing four wheelers like cars, SUV’s pick-up vans and trucks.
The company has a workforce of 30000 employees at all levels. Mr Murthy is the head
of the production department. One day, he calls up Mr Ashok , the head HR and complains
to him that, a set of 20 workers is unable to operate the new CNC machines, resulting in
a high rate of rejection of the jobs. He further complains that there seems to be
disharmony between the superiors and the operatives. The company provides excellent
salary and other perks to all its employees. There has been no incidence of any strike or
tool down in this organization
Mr Ashok, summons his assistant Mr Ravish and they both sit together and design
a technical training program for the operatives. The contents of the program are discussed
with Mr Murthy
After a month Mr Ashok informs Mr Ravish to call a list of 10 workers for the
training program. Unfortunately only 6 workers turn up for the program since Mr Murthy
does not allow the other four. However, the one week training program is conducted
successfully and on the last day neither Mr Murthy nor anybody from the HR department
is able to attend the last session and therefore the operators left the premises after the
training. .
After the lapse of 10 days, Mr Ravish informs Mr Ashok that the accounts
department has not cleared the bills of the caterer and other training aid equipment
supplier’s bill. This results into an argument between the head of finance and Mr Ashok
In the meanwhile Mr. Murthy reports that only 50% of the trainees have started responding
positively to the job, while operating the CNC machines.
Questions
1. What steps are lacking, while conducting the technical training program?
2. It you are the head of HR , how would you correct the situation?

8.6 NOTES
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
8. 7 SUMMARY
Employee training is the responsibility of the organization. Employee development
is a shared responsibility of management and the individual employee. The responsibility
of management is to provide the right resources and an environment that supports the
growth and development needs of the individual employee.
For employee training and development to be successful, management should:
 Provide a well-crafted job description - it is the foundation upon which employee
training and development activities are built
 Provide training required by employees to meet the basic competencies for the
job. This is usually the supervisor’s responsibility
 Develop a good understanding of the knowledge, skills and abilities that the
organization will need in the future. What are the long-term goals of the
organization and what are the implications of these goals for employee
development? Share this knowledge with staff
 Look for learning opportunities in every-day activity. Was there an incident with a
client that everyone could learn from? Is there a new government report with
implications for the organization?
 Explain the employee development process and encourage staff to develop
individual development plans
 Support staff when they identify learning activities that make them an asset to your
organization both now and in the future.

8.8 KEY WORDS

Management Games: Properly designed games help to ingrain thinking habits,
analytical, logical and reasoning capabilities, importance of team work, time management,
to make decisions lacking complete information, communication and leadership
capabilities. Use of management games can encourage novel, innovative mechanisms
for coping with stress.
Role Playing: Each trainee takes the role of a person affected by an issue and
studies the impacts of the issues on human life and/or the effects of human activities on
the world around us from the perspective of that person.
8.9 SELF ASSESSMENT QUESTIONS
1. Define Training? State the objectives and benefits of Training Programme
2. Discuss the nature and scope of Training
3. Explain the Training methods
4. Write a note on Needs of Training
5. Briefly explain the strategic approach to Training
8.10 REFERENCES
1. 1 Pareek, V and Rao T.V. Designing and Managing Human Resource Systems,
New Delhi: Oxford and IBH Publishing Co., 1981.
2. Rao T.V Pereira D.F. Recent Experiences in Human Resource Development, New
Delhi: Oxford and IBH Publishing Co.,1986
3. Ulrich D – Human Resource Champions, Harvard Business School Press – 1997
4. Kalpana R. – Balance Score Card – Harvard Business Review, January-February.
(1992)
 BLOCK - 3 : CAREER PLANNING AND DEVELOPMENT

UNIT - 9: CAREER PLANNING

Structure:
9.0 Objectives
9.1 Introduction
9.2 Meaning and definitions of career planning
9.3 Importance Features of career planning
9.4 Objectives of career planning
9.5 Benefits of career planning
9.6 Career Planning in Organization
9.7 Notes
9.8 Summary
9.9 Key Words
9.10 Self Assessment Questions
9.11 References
9.0 OBJECTIVES
After studying this unit, you should be able to;
• Define career planning
• Explain the importance of career planning
• Discuss the benefits of career planning
• Highlights the features of career planning

9.1 INTRODUCTION
Career management is the combination of structured planning and the active
management choice of one’s own professional career.
The outcome of successful career management should include personal
fulfillment, work/life balance, goal achievement and financial security.
A career includes all types of employment ranging from semi-skilled through
skilled, and semi professional to professional. Careers have often been restricted to an
employment commitment to a single trade skill, profession or business firm for the
entire working life of a person. In recent years, however, a career now includes changes
or modifications in employment during the foreseeable future.

9.2 MEANING AND DEFINITIONS OF CAREER PLANNING

Career planning is a subset of career management. Career planning applies the
concepts of Strategic planning and Marketing to taking charge of one’s professional
future. Career is an ongoing process and so it needs to be assessed on continuous basis.
This process of re-assessing individual learning and development over a period of time
is called Career Planning.
Definitions:
1. A career may be defined as ‘a sequence of jobs that constitute what a person does
for a living’.
2. According to Schermerborn, Hunt, and Osborn, ‘Career planning is a process of
systematically matching career goals and individual capabilities with opportunities
for their fulfillment’.
3. Career planning is the process of enhancing an employee’s future value.
4. A career plan is an individual’s choice of occupation, organization and career path.
 Career planning encourages individuals to explore and gather information, which
enables them to syn-thesize, gain competencies, make decisions, set goals and take
action. It is a crucial phase of human resource development that helps the employees in
making strategy for work-life balance.

9.3 IMPORTANCE / FEATURES OF CAREER PLANNING

It is important to come up with your career planning as it gives you the much
needed direction and makes it clear there where you see yourself in future. It makes you
aware of your strength and weaknesses and the skills and knowledge that are required to
achieve your goals in future.
A large proportion of our life is spent in achieving our career goals, thus it is very
important to make sure that right steps were taken and correct planning was done in the
early years of your life. There are very few lucky ones who are born with a clear mind
and who knows what they want to do and where they see themselves in life ahead. But
majority of us are not sure what we want from life and so it in very important to plan out
things. Thus career planning is what gives your career and in some way your life, true
meaning and purpose.
1. It is an ongoing process.
2. It helps individuals develop skills required to fulfill different career roles.
3. It strengthens work-related activities in the organization.
4. It defines life, career, abilities, and interests of the employees.
5. It can also give professional directions, as they relate to career goals

9.4 OBJECTIVES OF CAREER PLANNING

The major objectives of career planning are as follows:

1. To identify positive characteristics of the employees.
2. To develop awareness about each employee’s uniqueness.
3. To respect feelings of other employees.
4. To attract talented employees to the organization.
5. To train employees towards team-building skills.
6. To create healthy ways of dealing with conflicts, emotions, and stress.
9.5 BENEFITS OF CAREER PLANNING
1. Career planning ensures a constant supply of promotable employees.
2. It helps in improving the loyalty of employees.
3. Career planning encourages an employee’s growth and development.
4. It discourages the negative attitude of superiors who are interested in suppressing
the growth of the subordinates.
5. It ensures that senior management knows about the calibre and capacity of the
employees who can move upwards.
6. It can always create a team of employees prepared enough to meet any
contingency.
7. Career planning reduces labour turnover.
8. Every organization prepares succession planning

9.6 CAREER PLANNING IN ORGANISATION

Career planning is the process by which one selects career goals and the path to
these goals. The major focus of career planning is on assisting the employees achieve a
better match between personal goals and the opportunities that are realistically available
in the organization. Career programmers should not concentrate only on career growth
opportunities. Practically speaking, there may not be enough high level positions to make
upward mobility a reality for a large number of employees. Hence, career-planning efforts
need to pin-point and highlight those areas that offer psychological success instead of
vertical growth.
Career planning is not an event or end in itself, but a continuous process of
developing human resources for achieving optimum results. It must, however, be noted
that individual and organizational careers are not separate and distinct. A person who is
not able to translate his career plan into action within the organization may probably quit
the job, if he has a choice. Organizations, therefore, should help employees in career
planning so that both can satisfy each other’s needs.
Every employee has a desire to grow and scale new heights in his workplace
continuously. If there are enough opportunities, he can pursue his career goals and exploit
his potential fully. He feels highly motivated when the organization shows him a clear
path as to how he can meet his personal ambitions while trying to realize corporate
goals.
 Unfortunately, as pointed out by John Leach, organizations do not pay adequate
attention to this aspect in actual practice for a variety of reasons. The demands of
employees are not matched with organizational needs; no effort is made to show how
the employees can grow within certain limits, what happens to an employee five years
down the line if he does well, whether the organization is trying to offer mere jobs or
long-lasting careers, etc. When recognition does not come in time for meritorious
performance and a certain amount of confusion prevails in the minds of employees
whether they are ‘in’ with a chance to grow or not, they look for greener pastures outside.
Key executives leave in frustration and the organization suffers badly when turnover
figures rise. Any recruitment effort made in panic to fill the vacancies is not going to be
effective. So, the absence of a career plan is going to make a big difference to both the
employees and the organization. Employees do not get right breaks at a right time; their
morale will be low and they are always on their toes trying to find escape routes.
Organizations are not going to benefit from high employee turnover. New
employees mean additional selection and training costs. Bridging the gaps through short-
term replacements is not going to pay in terms of productivity. Organizations, therefore,
try to put their career plans in place and educate employees about the opportunities that
exist internally for talented people. Without such a progressive outlook, organizations
cannot prosper.
9.7 NOTES
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————

———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
———————————————————————————————————
9.8 SUMMARY
Career Planning takes a lot of work, but there is nothing more rewarding that
doing something you enjoy and getting paid for it. There are several links used in this
website, and several more listed for you research.
Enjoy the process because it will be an ongoing practice throughout your working
life. Change is consistent and most of us will need to make several adaptations to our
career path throughout our lifetime. The skills you learn today will certainly help set up
your success for the future.

9.9 KEY WORDS

Career: Career can be defined as a general course of action a person chooses to
pursue throughout his or her working life
Career planning: Career planning is an ongoing process through which an
individual sets career goals and identifies the means to achieve them.

9.10 SELF ASSESSMENT QUESTIONS

1. What is career planning?
2. Define career
3. Explain the importance features of career planning
4. Discuss the benefits of career planning
5. Bring out the objectives of career planning

9.11 REFERENCES
1. Pareek, V and Rao T.V. Designing and Managing Human Resource Systems, New
Delhi: Oxford and IBH Publishing Co., 1981.
2. Rao T.V Pereira D.F. Recent Experiences in Human Resource Development, New
Delhi: Oxford and IBH Publishing Co.,1986
3. Ulrich D – Human Resource Champions, Harvard Business School Press – 1997
4. Kalpana R. – Balance Score Card – Harvard Business Review, January-February.
(1992)
UNIT -10: CAREER PLANNING PROCESS

Structure:
10.0 Objectives
10.1 Introduction
10.2 Steps involved in career planning process
10.3 Factors considered for successful career planning
10.4 Career goals and objectives development
10.5 Notes
10.6 Summary
10.7 Key Words
10.8 Self Assessment Questions
10.9 References
10.0 OBJECTIVES
After studying this unit, you should be able to;
• Define planning process
• Explain steps involved in career planning process
• Discuss the factors considered for successful career planning

10.1 INTRODUCTION
Career planning is not an activity that should be done once in high school or
college and then left behind as we move forward in our jobs and careers. Rather, career
planning is an activity that is best done on a regular basis especially given the data that
the average worker will change careers (not jobs) multiple times over his or her lifetime.
And it’s never too soon or too late to start your career planning.
Career planning is not a hard activity, not something to be dreaded or put off, but
rather an activity that should be liberating and fulfilling, providing goals to achieve in
your current career or plans for beginning a transition to a new career. Career planning
should be a rewarding and positive experience.

10.2 STEPS INVOLVED IN CAREER PLANNING PROCESS

The process of career planning is also known as career development stages and
career development model. These steps help you in planning your career and deciding
about your future.
 Self-assessment
Self-assessment is a process that helps you in assessing your skills, your potential, your
strengths and your ability to fulfill your aims. As the name of the step suggest, you
assess yourself and then, based on your analyses and keeping your strengths and
weaknesses in mind, you draft your future plan. By drafting your future plan we mean
that executing this step helps you to finalize the profession and career path you want to
choose. Make sure that you choose and finalize more than one career, keep one or two
careers in case you decide to roll back. In case the career you chose does not satisfies
you or later in time you come to know that this was not meant for you then in that case
you must have a backup plan.
 Self-development
Once you have self-analyzed yourself, the second step that awaits your attention
is to fill the loopholes you have identified in the above step. By this we mean that in this
step you have to see that what are the qualities and skills that are required by you to help
you achieve your aims and goals. For instance you might decide that you need training or
a particular course in a field in order to make you perfect for the profession you have
chosen.
It could be that you are interested in painting but you are not much aware of the
trends or the knowledge that is required for this field. Or there can be a case where you
are interested and much aware about a profession like teaching but you do not yet know
that what is the niche level that is meant for you like and the subjects you can carry off
pretty well.
 A thorough research self-development
Once you have listed the careers that are favorable in your case and the skills and
improvements that are required by you in order to achieve excellence the third step
requires you to do an intensive research and see that what that are findings related to
career options and the skills that are required to make you champion in that. You research
will be looking into following questions:
• What is the scope of the career you have chosen?
• Will that career pay you off in the future?
• Is there room for expansion in that career field?
 Come up with action form
Once you have researched the feasibility of the factors that you have finalized in
above steps, the next step is to show some action and translate your plans on a piece of
page. This step requires you to make plan as in how you are going to achieve and fulfill
the steps you have decided above. The best way to come with an action plan is to come
up with small goals for oneself. Once these small goals are achieved, we can see that
how much close we are to our main aim and major goal. This small step acts as a path
way to the main aim.
 Action
Once you are done with small goals and the main aim, the next step remains to
start implementing your plans. Keep a very close track of your activities to make sure
that you are on the right track and that by following this path you are surely going to
achieve you goal.

10.3 FACTORS CONSIDERED FOR SUCCESSFUL CAREER

PLANNING
1. Make Career Planning an Annual Event
Many of us have physicals, visit the eye doctor and dentist, and do a myriad of
other things on an annual basis, so why not career planning? Find a day or weekend once
a year more often if you feel the need or if you’re planning a major career change and
schedule a retreat for yourself. Try to block out all distractions so that you have the time
to truly focus on your career what you really want out of your career, out of your life.
By making career planning an annual event, you will feel more secure in your
career choice and direction and you’ll be better prepared for the many uncertainties and
difficulties that lie ahead in all of our jobs and career.
2. Map Your Path Since Last Career Planning
One of your first activities whenever you take on career planning is spending
time mapping out your job and career path since the last time you did any sort of career
planning. While you should not dwell on your past, taking the time to review and reflect
on the path whether straight and narrow or one filled with any curves and dead-ends will
help you plan for the future.
Once you’ve mapped your past, take the time to reflect on your course and note
why it looks the way it does. Are you happy with your path? Could you have done things
better? What might you have done differently? What can you do differently in the future?
3. Reflect on Your Likes and Dislikes, Needs and Wants
Change is a factor of life; everybody changes, as do our likes and dislikes.
Something we loved doing two years ago may now give us displeasure. So always take
time to reflect on the things in your life not just in your job that you feel most strongly
about.
Make a two-column list of your major likes and dislikes. Then use this list to
examine your current job and career path. If your job and career still fall mostly in the
like column, then you know you are still on the right path; however, if your job activities
fall mostly in the dislike column, now is the time to begin examining new jobs and new
careers.
 Finally, take the time to really think about what it is you want or need from your
work, from your career. Are you looking to make a difference in the world? To be famous?
To become financially independent? To effect change? Take the time to understand the
motives that drive your sense of success and happiness.
4. Examine Your Pastimes and Hobbies
Career planning provides a great time to also examine the activities you like doing
when you’re not working. It may sound a bit odd, to examine non-work activities when
doing career planning, but it’s not. Many times your hobbies and leisurely pursuits can
give you great insight into future career paths.
Think you can’t make a hobby into a career? People do it all the time. The great
painter Paul Gauguin was a successful business person who painted on the side. It actually
wasn’t until he was encouraged by an artist he admired to continue painting that he finally
took a serious look at his hobby and decided he should change careers. He was good at
business, but his love was painting.
5. Make Note of Your Past Accomplishments
Most people don’t keep a very good record of work accomplishments and then
struggle with creating a powerful resume when it’s time to search for a new job. Making
note of your past accomplishments keeping a record of them is not only useful for building
your resume, it’s also useful for career planning.
Sometimes reviewing your past accomplishments will reveal forgotten successes,
one or more which may trigger researching and planning a career shift so that you can be
in a job that allows you to accomplish the types of things that make you most happy and
proud.
6. Look Beyond Your Current Job for Transferable Skills
Some workers get so wrapped up in their job titles that they don’t see any other
career possibilities for themselves. Every job requires a certain set of skills, and it’s
much better to categorize yourself in terms of these skill sets than be so myopic as to
focus just on job titles.
For example, one job-seeker who was trying to accomplish career planning found
herself stuck because she identified herself as a reporter. But once she looked beyond
her job title, she could see that she had this strong collection of transferable skills such
as writing, editing, researching, investigating, interviewing, juggling multiple tasks,
meeting goals and deadlines, and managing time and information skills that could easily
be applied to a wide variety of jobs in many different careers.
7. Review Career and Job Trends
Everyone makes his or her own job and career opportunities, so that even if your
career is shrinking, if you have excellent skills and know how to market yourself, you
should be able to find a new job. However, having information about career trends is
vital to long-term career planning success.
A career path that is expanding today could easily shrink tomorrow — or next
year. It’s important to see where job growth is expected, especially in the career fields
that most interest you. Besides knowledge of these trends, the other advantage of
conducting this research is the power it gives you to adjust and strengthen your position,
your unique selling proposition. One of the keys to job and career success is having a
unique set of accomplishments, skills, and education that make you better than all others
in your career.
8. Set Career and Job Goals
Develop a roadmap for your job and career success. Can you be successful in
your career without setting goals? Of course. Can you be even more successful through
goal-setting? Most research says yes.
A major component of career planning is setting short-term (in the coming year)
and long-term (beyond a year) career and job goals. Once you initiate this process, another
component of career planning becomes reviewing and adjusting those goals as your career
plans progress or change – and developing new goals once you accomplish your previous
goals.
9. Explore New Education/Training Opportunities
It’s somewhat of a cliche, but information really does lead to power and success.
Never pass up chances to learn and grow more as a person and as a worker; part of career
planning is going beyond passive acceptance of training opportunities to finding new
ones that will help enhance or further your career.
Take the time to contemplate what types of educational experiences will help you
achieve your career goals. Look within your company, your professional association,
your local universities and community colleges, as well as online distance learning
programs, to find potential career-enhancing opportunities and then find a way achieve
them.
10. Research Further Career/Job Advancement Opportunities
One of the really fun outcomes of career planning is picturing yourself in the
future. Where will you be in a year? In five years? A key component to developing multiple
scenarios of that future is researching career paths.
Of course, if you’re in what you consider a dead-end job, this activity becomes
even more essential to you, but all job-seekers should take the time to research various
career paths and then develop scenarios for seeing one or more of these visions become
reality. Look within your current employer and current career field, but again, as with all
aspects of career planning, do not be afraid to look beyond to other possible careers.

10.4 CAREER GOALS AND OBJECTIVES DEVELOPMENT

The career management process begins with setting goals/objectives. A relatively
specific goal/objective must be formulated. This task may be quite difficult when the
individual lacks knowledge of career opportunities and/or is not fully aware of their
talents and abilities. However, the entire career management process is based on the
establishment of defined goals/objectives whether specific or general in nature. Utilizing
career assessments may be a critical step in identifying opportunities and career paths
that most resonate with someone. Career assessments can range from quick and informal
to more indepth. Regardless of the ones you use, you will need to evaluate them. Most
assessments found today for free (although good) do not offer an in-depth evaluation.
The time horizon for the achievement of the selected goals or objectives - short
term, medium term or long term - will have a major influence on their formulation.
1. Short-term goals (one or two years) are usually specific and limited in scope. Short-
term goals are easier to formulate. Make sure they are achievable and relate to your
longer term career goals.
2. Intermediate goals (3 to 20 years) tend to be less specific and more open ended
than short-term goals. Both intermediate and long-term goals are more difficult to
formulate than short-term goals because there are so many unknowns about the
future.
3. Long-term goals (Over 20 years), of course, are the most fluid of all. Lack of life
experience and knowledge about potential opportunities and pitfalls make the
formulation of long-term goals/objectives very difficult. Long-range goals/
objectives, however, may be easily modified as additional information is received
 without a great loss of career efforts because of experience/knowledge transfer
from one career to another.
4. Making career choices and decisions – the traditional focus of careers interventions.
The changed nature of work means that individuals may now have to revisit this
process more frequently now and in the future, more than in the past.
5. Managing the organizational career – concerns the career management tasks of
individuals within the workplace, such as decision-making, life-stage transitions,
dealing with stress etc.
6. Managing ‘boundaryless’ careers – refers to skills needed by workers whose
employment is beyond the boundaries of a single organization, a workstyle common
among, for example, artists and designers.
7. Taking control of one’s personal development – as employers take less responsibility,
employees need to take control of their own development in order to maintain and
enhance their employability.
10.5 NOTES
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
10.6 SUMMARY
In this unit, we have covered so for career planning, it’s Objectives, Important
features, factors considered for successful career planning and also the process of career
planning.

10.7 KEY WORDS

• Action
• Self-development
• Self-assessment

10.8 SELF ASSESSMENT QUESTIONS

1. What are career goals and objectives?
2. Explain the factors consider for successful career planning
3. Discuss the process of career planning

10.9 REFERENCES
1. Pareek, V and Rao T.V. Designing and Managing Human Resource Systems, New
Delhi: Oxford and IBH Publishing Co., 1981.
2. Rao T.V Pereira D.F. Recent Experiences in Human Resource Development, New
Delhi: Oxford and IBH Publishing Co.,1986
3. Ulrich D – Human Resource Champions, Harvard Business School Press – 1997
4. Kalpana R. – Balance Score Card – Harvard Business Review, January-February.
(1992)
UNIT- 11: MANPOWER PLANNING

Structure:
11.0 Objectives
11.1 Introduction
11.2 Meaning and Definitions of manpower planning
11.3 Objectives of manpower planning
11.4 Difference between career planning and manpower planning
11.5 Importance of manpower planning
11.6 Need for manpower planning
11.7 Steps in manpower planning
11.8 Factors affecting manpower planning
11.9 Notes
11.10 Summary
11.11 Key Words
11.12 Self Assessment Questions
11.13 References
11.0 OBJECTIVES
After studying this unit you should be able to
• Define manpower planning
• Explain the importance of manpower planning
• Highlights the objectives of manpower planning
• Discuss the steps of manpower planning
• Bring out the difference between career planning and manpower planning

1.1 INTRODUCTION
Man power planning or human resource planning is the major task of personnel
management because it is basically connected with utilizing manpower resources.
Manpower planning is a supply and demand calculation of management process to adjust
the current manpower to desires man power position. Manpower planning is accepted by
the business manager because of its increasing in gaining. Basically man power planning
involves locating a job for a man as well as preparing a man for a job. Manpower Planning
which is also called as Human Resource Planning consists of putting right number of
people, right kind of people at the right place, right time, doing the right things for
which they are suited for the achievement of goals of the organization. Human Resource
Planning has got an important place in the arena of industrialization. Human Resource
Planning has to be a systems approach and is carried out in a set procedure.

11.2 MEANING AND DEFINTIONS OF MANPOWER PLANNING

Man power planning or human resource planning (HRP) is the ongoing process
of systematic planning to achieve optimum use of an organization’s most valuable asset
- its human resources. The objective of human resource (HR) planning is to ensure the
best fit between employees and jobs, while avoiding manpower shortages or surpluses.
According to Gorden MacBeath, manpower planning involves two stages.The first
stage is concerned with the detailed “planning of manpower requirements for all types
and levels of employees throughout the period of the plan,” and the second stage is
concerned with “planning of manpower supplies to provide the organization with the
right types of people from all sources to meet the planned requirements.”
 According to Vetter, the process by which management determines how the
organization should move from its current manpower position to its desired manpower
position. Through planning, management strives to have the right number and the right
kinds of people, at the right places, at the right time, doing things which result in both
the organization and the individual receiving maximum long-run benefit.

11.3 OBJECTIVES OF MANPOWER PLANNING

Main objectives of manpower planning are enumerated as under:
1. Accurate Estimates of manpower requirements:
The most important object of manpower planning is to make as far as possible
correct estimates of future manpower requirements. The technique of forecasting is
very helpful in selecting right type of man for the right type of job. Additional jobs are
created by retirement, retrenchment, discharge, demotion and separation etc. Forecasting
also helps in minimizing labor costs.
2. Inventorying of Personnel:
Personnel inventorying is concerned with working details with regard to present
employees pertaining to their educational qualifications, professional skill, proficiency
in job and training received etc. The main object of preparing the inventory is to know
about the number of persons with varied qualifications and skill etc. available in the
organization. This is helpful for further expansion and modernization of the concern.
3. Helpful in Recruitment and Selection:
Human resource or manpower management is immensely helpful in the process
of recruitment and selection also. It brings down the recruitment and selection costs by
pursuing sound procedures of recruitment and selection.
4. Achieving and maintaining Production Level:
Manpower planning helps in achieving and maintains production level in an
organization. There is reduction in labour turnover, absenteeism and accidents etc. These
industrial hazards are properly estimated by manpower management. These estimates in
advance are helpful in maintaining desired production levels.
Besides the above mentioned objects there are certain other objects of manpower
management also. These are bringing about industrial peace and harmony, effective
utilization of manpower resources and undertaking programmes for the development of
employees.
11.4 DIFFERENCE BETWEEN CAREER PLANNING AND
MANPOWER PLANNING
Career planning is an integral part of manpower planning which in turn is an
important part of corporate planning but they are different from each other but Manpower
planning provides an inventory of skills and potentials available in the organization. On
the other hand career planning determines who could be groomed for higher level
assignments. Career planning can only tell who could succeed in case of resignation
etc. of existing employees. But Manpower planning provides information on the human
resources available within the organization for expansion, growth and technological
innovations.
The career planning is an important part of Human Resource Planning which in
turn is integrated with the corporate planning. Human Resource planning cannot be
effective without proper and adequate career planning. Similarly, human resource planning
provides valuable information to facilitate career planning.
The important points of difference between career planning and human resource
planning are as under-
1. Inventory of skills- Human resource planning provides an inventory of skills and
potentials available within an organization. But career planning determines who
could be groomed for higher level assignments, where, when and how
2. Information about HR- Human resource planning provides information about the
human resources available within the organization for expansion, growth and
technological innovations. But career planning only tells as to who could succeed
in case of retirement, death, resignation, etc of existing personnel.
3. HR planning useful to career planning- Human resource planning facilitates
career planning by providing the following information:
 An inventory of human resource, its needs, number, types, skill etc
 Changes in functions and activities two, five, or ten years hence, if not for a longer
period.
 Nature and extent of behavioral changes required to meet manpower needs.
 Availability of human resource within and outside the organization, training
opportunities, training resources and training time.
11.5 IMPORTANCE OF MANPOWER PLANNING
1. Key to managerial functions- The four managerial functions, i.e., planning,
organizing, directing and controlling are based upon the manpower. Human
resources help in the implementation of all these managerial activities. Therefore,
staffing becomes a key to all managerial functions.
2. Efficient utilization- Efficient management of personnel’s becomes an important
function in the industrialization world of today. Setting of large scale enterprises
requires management of large scale manpower. It can be effectively done through
staffing function.
3. Motivation- Staffing function not only includes putting right men on right job, but
it also comprises of motivational programmes, i.e., incentive plans to be framed
for further participation and employment of employees in a concern. Therefore, all
types of incentive plans become an integral part of staffing function.
4. Better human relations- A concern can stabilize itself if human relations develop
and are strong. Human relations become strong trough effective control, clear
communication, effective supervision and leadership in a concern. Staffing function
also looks after training and development of the work force which leads to co-
operation and better human relations.
5. Higher productivity- Productivity level increases when resources are utilized in
best possible manner. Higher productivity is a result of minimum wastage of time,
money, efforts and energies. This is possible through the staffing and it’s related
activities ( Performance appraisal, training and development, remuneration)

11.6 NEED FOR MANPOWER PLANNING

Manpower Planning is a two-phased process because manpower planning not only
analyses the current human resources but also makes manpower forecasts and thereby
draw employment programmes. Manpower Planning is advantageous to firm in following
manner:
1. Shortages and surpluses can be identified so that quick action can be taken wherever
required.
2. All the recruitment and selection programmes are based on manpower planning.
3. It also helps to reduce the labour cost as excess staff can be identified and thereby
overstaffing can be avoided.
4. It also helps to identify the available talents in a concern and accordingly training
programmes can be chalked out to develop those talents.
5. It helps in growth and diversification of business. Through manpower planning,
human resources can be readily available and they can be utilized in best manner.
6. It helps the organization to realize the importance of manpower management which
ultimately helps in the stability of a concern.

11.7 STEPS IN MANPOWER PLANNING

1. Analyzing the current manpower inventory- Before a manager makes
forecast of future manpower, the current manpower status has to be analysed. For this
the following things have to be noted-
• Type of organization
• Number of departments
• Number and quantity of such departments
• Employees in these work units
Once these factors are registered by a manager, he goes for the future forecasting.
2. Making future manpower forecasts- Once the factors affecting the future
manpower forecasts are known, planning can be done for the future manpower
requirements in several work units.
The Manpower forecasting techniques commonly employed by the organizations
are as follows:
i. Expert Forecasts: This includes informal decisions, formal expert surveys and
Delphi technique.
ii. Trend Analysis: Manpower needs can be projected through extrapolation
(projecting past trends), indexation (using base year as basis), and statistical
analysis (central tendency measure).
iii. Work Load Analysis: It is dependent upon the nature of work load in a
department, in a branch or in a division.
iv. Work Force Analysis: Whenever production and time period has to be analysed,
due allowances have to be made for getting net manpower requirements.
v. Other methods: Several Mathematical models, with the aid of computers are
used to forecast manpower needs, like budget and planning analysis, regression,
new venture analysis.
3. Developing employment programmes- Once the current inventory is
compared with future forecasts, the employment programmes can be framed and
developed accordingly, which will include recruitment, selection procedures and
placement plans.
4. Design training programmes- These will be based upon extent of
diversification, expansion plans, development programmes, etc. Training programmes
depend upon the extent of improvement in technology and advancement to take place. It
is also done to improve upon the skills, capabilities, knowledge of the workers.

11.8 FACTORS AFFECTING MANPOWER PLANNING

Manpower planning exercise is not an easy tube because it is imposed by
various factors such as:
1. It suffers from inaccuracy because it is very difficult to forecast long-range
requirements of personnel.
2. Manpower planning depends basically on organization planning. Overall planning is
itself is a difficult task because of changes in economic conditions, which make
long term manpower planning difficult.
3. It is difficult to forecast about the personnel with the organization at a future date.
While vacancies caused by retirements can be predicted accurately other factors
like resignation, deaths are difficult to forecast.
4. Lack of top management support also frustrates those in charge of manpower
planning because in the absence of top management support, the system does not
work properly.
5. The problem of forecast becomes more occur in the context of key personnel
because their replacement cannot be arranged in short period of time.
Moreover any system requires the support of top management and manpower
planning is no exception to this.
11.9 NOTES
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
11.10 SUMMARY
In this unit, we have learnt about motivation and its factors, Higher Productivity,
Man Power Planning and how Manpower planning become important for organisation.

11.11 KEY WORDS

• Motivation
• Higher productivity
• Manpower planning

11.12 SELF ASSESSMENT QUESTIONS

1. Define manpower planning
2. Explain the importance of manpower planning
3. Highlights the objectives of manpower planning
4. Discuss the steps of manpower planning
5. Bring out the difference between career planning and manpower planning
6. Explain the factors affecting manpower planning.

11.13 REFERENCES
1. Pareek, V and Rao T.V. Designing and Managing Human Resource Systems, New
Delhi: Oxford and IBH Publishing Co., 1981.
2. Rao T.V Pereira D.F. Recent Experiences in Human Resource Development, New
Delhi: Oxford and IBH Publishing Co.,1986
3. Ulrich D – Human Resource Champions, Harvard Business School Press – 1997
4. Kalpana R. – Balance Score Card – Harvard Business Review, January-February.
(1992)
UNIT – 12: CAREER PLANNING AND DEVELOPMENT

Structure :
12.0 Objectives
12.1 Introduction
12.2 Methods of career planning and development
12.3 Challenges in Career Development
12.4 Placement
12.5 Induction and Orientation Programme
12.6 Coaching
12.7 Notes
12.8 Summary
12.9 Key Words
12.10 Self Assessment Questions
12.11 References
12.0 OBJECTIVES
After studying this unit, you should be able to;
• Define career development
• Explain the methods of career planning and development
• Highlights the challenges of career development
• Express the concepts of placement
• Discuss the induction and orientation programme

12.1 INTRODUCTION
A formal approach taken by an organization to help its people acquire the skills
and experiences needed to perform current and future jobs is termed as career
development. Company’s policies especially policies regarding promotion, counseling
the employees, opportunities to excel in future help employees to develop their career.
Career development consists of skills, education and experiences as well as behavioral
modification and refinement techniques that allow individuals to work better and add
value.
Career development is an ongoing organized and formalized effort that recognizes
people as a vital organizational resource. It differs from training in that it has a wider
focus, longer time frame, and broader scope. The goal of training is improvement in
performance; the goal of development is enrichment and more capable workers. Recently,
career development has come to be seen as a means for meeting both organizational and
employee needs, as opposed to solely meeting the needs of the organization as it had
done in the past. Now, organizations see career development as a way of preventing job
burnout, providing career information to employees, improving the quality of work lives
and meeting affirmative action goals. That is, career development must be seen as a key
business strategy if an organization wants to survive in an increasingly competitive and
global business environment.

12.2 METHODS OF CAREER PLANNING AND DEVELOPMENT

There are many methods that are used extensively for the purpose of career
development. But mostly these are used in combination of more than one method.
Following are the commonly used methods of career development.
Career Development Methods
1. Discussion with Knowledgeable Individuals:
In this method the subordinate is combined with his superior to agree on the best
career development activities. In certain cases guidance counselors & psychologists
provide this service. In case of academic institutions like colleges & universities,
specialized career planning & development guidance is provided to the students.
Professors are usually responsible for such guidance.
2. Company Material:
There are certain organizations that have developed certain specific material for
the development of its employees. The developed material is in accordance with the
needs of the organizations. Moreover the job descriptions can be considered as good
material that show the employees to decide either their strengths & weakness match
with the requirement of any offering job within their own organization.
3. Performance Appraisal System:
The performance appraisal system in the organizations can also be regarded as
good source of career development. When the strengths & weaknesses of employees
are discussed with their relative supervisors than the needs for the development of
employees emerged clearly. If there is not possibility to overcome the weakness of
certain employee, then there can be a solution of alternative career path for that
employee.
4. Workshops:
Certain organizations offer the workshops for their employees that last for two
or more days so that the employees can be able to develop their career within the
organization. The career objectives are described & match by the employees with the
needs of the organizations. In other situations, the workshops are presented at the
community level so that the employees may be sent or they may start the visit themselves.
5. Personal Development Plans (PDP):
There are some organizations that encourage their employees to present their
own plans of personal development. Such plan consists of summary of needs of personal
development of employees along with the specified action list for the achievement. So
the management encourages the employees to analyze their weakness & strengths.

12.3 CHALLENGES IN CAREER DEVELOPMENT

While most business people today agree that their organizations should invest in
career development, it is not always clear exactly what form this investment should take.
Before putting a career development program in place, management needs to consider
three major challenges.
a. Who will be Responsible?
Many modern organizations have concluded that employees must take an active
role in planning and implementing their own personal development plans. Situations have
led companies to encourage their employees to take responsibility for their own
development; these may include mergers, acquisitions, downsizing, and employee
empowerment. However, employees need at least general guidance regarding the steps
they can take to develop their careers, both within and outside the company.
b. How Much Emphasis is Appropriate?
Too much emphasis on career enhancement can harm an organization’s
effectiveness. Employees with extreme career orientation can become more concerned
about their image than their performance. Some warning signs a manager should be on
the lookout for include a heavy focus on advancement opportunities, managing
impressions, and socializing versus job performance. Serious side effects of career
development programs include employee dissatisfaction, poor performance, and turnover
in the event that it fosters unrealistic expectations for advancement.
c. How Will the Needs of a Diverse Work Force be Met?
Companies need to break down the barriers some employees face in achieving
advancement in order to meet the career development needs of today’s diverse work
force. In 1991, a government study revealed that women and minorities are frequently
excluded from the informal career development activities like networking, mentoring,
and participation in policy-making committees. Perhaps the best way a company can
ensure that women and minorities have a fair chance at managerial and executive positions
is to design a broad-based approach to employee development that is anchored in
education and training.
Another employee group that may need special consideration consists of dual-
career couples. Common organizational approaches that are becoming increasingly
popular in dealing with the needs of dual career couples are flexible work schedules,
telecommuting, and the offering of child-care services. Some

12.4 PLACEMENT
After the employee is hired and oriented, he/she must be placed in his/her right
job. Placement is understood as the allocation of people to the job. It is assignment or
re-assignment of an employee to a new or different job. Placement includes initial
assignment of new employees and promotion, transfer or demotion of present employees.
The placement is arising out of promotion, transfer, demotion. Assignment of new
employee to a job apparently seems to be simple task. The employer advertises inviting
applications from candidates for a specific post. The advertisement contains job
description and job specifications in detail. When a candidate has selected, it is logical
that individual is placed in a position that was advertised earlier. But the task of placement
is not that simple it appears. Times are changing. Changes in the work ethics reflecting
the demand for meaningful work. All these factors are causing organizations and
individuals to determine the placement process more closely. We are entering the age
when applicants must be considered for several jobs rather than one. From the managerial
perspective, the task is to understand and capitalize on each person’s individually. Since,
human attributes vary along many relatively independent ability, interest, biographical
sketch and the personality dimensions, a person’s individuality is best viewed as his/her
unique profile of scores on a variety of individual measures. Once we establish the unique
profile for each individual, people and jobs can be matched optimally within the
constraints set by available jobs and available people. If the number of individuals is
large in relation to the available jobs, only the best qualified persons can be selected and
placed. On the other hand, when more jobs are available, optimal placement is possible.
Thus the number of people and the number of jobs determine the placement process in
any organization.
Principles of Placement
A few basic principles should be followed at the time of placement of a workers
on the job. This is elaborated below:
1. Man should be placed on the job according to the requirements of the job. The job
should not be adjusted according to the qualifications or requirements of the man.
Job first, man next, should be the principle of the placement.
2. The job should be offered to the person according to his qualification. This should
neither the higher nor the lower than the qualification.
3. The employee should be made conversant with the working conditions prevailing in
the organization and all things relating to the job. He should also be made aware of
the penalties if he commits the wrong.
4. While introducing the job to the new employees, an effort should be made to develop
a sense of loyalty and cooperation in him so that he may realize his responsibility
better towards the job and the organization.
5. The placement should be ready before the joining date of the newly selected person.
6. The placement in the initial period may be temporary as changes are likely after the
completion of training. The employee may be later transferred to the job where he
can do better.
Proper placement helps to improve the employees’ morale. The capacity of the
employees can be utilized fully. The right placement also reduces labour turnover,
absenteeism and also the accident rate. Than the employee can adjust to the required
environment of the organization effectively and the performance of the employee will
not be hampered.

12.5 INDUCTION AND ORIENTATION PROGRAMME

Induction and orientation training programs for new employees are essential
these days for all companies in order to ensure that the new employee can adopt the
new working environment fast with ease and comfort.
The Induction and orientation training programs benefits are explained below:
A) Benefits to the company:
 It creates a positive perception of the organization and an understanding of the
corporate culture, values, vision, mission and goals.
 It can set a precedent for ongoing training, by showing the employee that the
organization is serious about developing his skills to perform his job
competently.
 It can also helps in motivating the existing employees who are included in the
process.
 A good induction program can also help in cutting down recruitment costs as new
staff is more likely to give longer term commitment to the organization.
 Can benefit from the insights, objectivity and fresh ideas of a new employee. A
new employee can also give insights onto how the company is perceived
externally.
B) Benefits to employees:
• Feel welcomed and comfortable (building relationships)
• It confirms the employee’s decision to join the organization.
• It helps to build self-esteem, morale and motivation.
• It establishes good communication and relationship between the employee and
his supervisor from the first day.
• Makes the employee familiar with the corporate environment, rules, systems and
regulations.

12.6 COACHING
Coaching is training or development in which a person called a coach supports a
learner in achieving a specific personal or professional goal. The learner is sometimes
called a coachee. Occasionally, coaching may mean an informal relationship between
two people, of whom one has more experience and expertise than the other and offers
advice and guidance as the latter learns; but coaching differs from mentoring in focusing
on specific tasks or objectives, as opposed to general goals or overall development
Coaching is a popular approach to employee development, based on a relationship
between two people, the coach and the individual. The individual typically wants to
improve his or her understanding of a situation, learn new skills, prepare for new
situations, or improve performance areas. The coach may provide a variety of services
to help the individual improve his or her performance. For example, the coach may help
identify an underlying problem, provide tools that help the individual understand the
problem, suggest activities that will lead to performance improvement, share insights
about the environment in which the individual works, and provide honest feedback about
the quality of performance. Coaching is especially useful during times of significant
change or challenge, when individuals must acquire new skills or adapt to new
environments.
When should coaching be used?
There are many approaches to development training and education, new
assignments, mentoring relationships, etc. Each can be an effective tool when properly
used in the right situation. To determine if coaching is useful in your situation, consider
the following questions:
 Is the nature of the problem understood?
Often, the nature of an individuals performance difficulties are not well
understood, and coaching is used to identify manifestations of the problem and explore
the root causes. For example, an executive who works 80 hours a week may have difficulty
accomplishing all of his or her tasks for a week. A coach can help the executive determine
what intrudes on his or her schedule and prevents the person from achieving desired
performance goals.
 What competency is to be improved?
Some competencies can best be improved by coaching, others by some other
developmental activity. Coaching often works well for the development of skills that
require feedback on actual behavior but may be less useful when measures of improvement
are not dependent on someone elses evaluation. For example, if an individual needs to
acquire financial management skills, the best solution may be a training course focused
on principles of financial management. In contrast, if a manager has difficulty getting
along with colleagues, a coach, who can give direct feedback and probe sensitive areas,
may be more useful.
Examples of competencies that are often coached include:
Conflict management
Tact and diplomacy
Working across boundaries
Listening skills
Presentation skills
Time management skills
Strategic thinking
Decision-making skills
Interpersonal relationship skills
 How sensitive is the problem?
Although everyone has strengths and weaknesses, exposing your weaknesses varies
in acceptability. While it may be OK to admit that you lack knowledge in an area to
which you have never been exposed, it may not be OK to admit that you lack the
interpersonal skills to build strong business relationships. Some individuals are resistant
to admitting they have any performance deficiencies. Sometimes, just exploring the
problem is a delicate matter. For example, an executive who needs assistance evaluating
the strengths and weaknesses of his management team may not want to share information
about others to anyone within his organization and needs assurances that the information
shared is kept confidential. Coaching often works well when the problem or its resolution
is a sensitive one.
 What learning skills does the individual possess?
Acquiring new skills is a function of learning skills as well as the motivation to
learn. Sometimes a coach serves simply to help the individual discipline him or herself
and spend time on development activities. Other times, a coach assists the individual in
analyzing a situation and pointing out the salient elements. Coaching cannot add much
value in situations where the person does not have the raw capabilities (e.g., intelligence)
to succeed. Job redesign or reassignment is more useful. Neither is coaching the
recommended solution when emotional or psychological issues are primary (e.g.,
depression, substance abuse). In such cases, therapy or mental health counseling is
recommended.
 What motivations does the individual have to participate fully in a coaching
relationship?
The essential requirement for effective coaching is simply the individuals desire
to improve his or her performance and willingness to work at it. Improving a skill is a
challenging task. Unless the individual is motivated to participate fully in a coaching
relationship and make significant changes, coaching is not likely to succeed.
 What resources does the individual or organization have?
Because coaching involves an on-going, one on one relationship, it can be a
significant investment. The organization or individual paying for coaching must have
the resources to pay for it.
 Will the individual have the support of others in the organization?
An individual making major changes in his or her approach to work must have the
support of the organization. Sometimes, support is in the form of the boss providing
detailed feedback. Other times, the organization must be willing to accept new approaches
to certain activities. For example, if a manager is being coached to provide detailed
performance feedback to subordinates, even star performers, the culture of the
organization must accept the appropriateness of feedback. Without organizational
support, changes in the individual are unlikely to be sustained over time.
What makes coaching effective?
Coaching can make a difference in peoples performance for three key reasons.
First, it is customized to meet each persons needs, so no time is wasted. Although books,
classes, e-learning, and other approaches may be less expensive, they may not provide
as much value for the learner because they cover a broad content area and are aimed at a
diverse audience. Second, coaching can address the full spectrum of learning, from
insight, motivation, and learning new skills to accountability and application in the real
world. Finally, having a personal coach provides a relationship built on trust and openness
that allows safe exploration of difficult topics and supports risk-taking in trying new
behaviors.
In summary, coaching can be an effective tool for accelerating learning and
dramatically improving performance across a wide range of skills that benefit both the
individual and the organization.

2.7 NOTES
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
12.8 SUMMARY
In this unit, we have learnt about career development and its importance. We also
covered the aspects like career development objectives and methods of career
development, recent challenges of career development.

12.9 KEY WORDS

 Career
 Career development

12.10 SELF ASSESSMENT QUESTIONS

1. Define career development
2. Explain the methods of career planning and development
3. Highlights the challenges of career development
4. Express the concepts of placement
5. Discuss the induction and orientation programme

12.11 REFERENCES
1. Pareek, V and Rao T.V. Designing and Managing Human Resource Systems, New
Delhi: Oxford and IBH Publishing Co., 1981.
2. Rao T.V Pereira D.F. Recent Experiences in Human Resource Development, New
Delhi: Oxford and IBH Publishing Co.,1986
3. Ulrich D – Human Resource Champions, Harvard Business School Press – 1997
4. Kalpana R. – Balance Score Card – Harvard Business Review, January-February.
(1992)
 BLOCK - 4 EVALUATION HRD
UNIT-13 : HUMAN RESOURCE EVALUATION

Structure:
13.0 Objectives
13.1 Introduction
13.2 Human resource accounting
13.3 Human resource audit
13.4 Human resource benchmarking
13.5 Competency mapping
13.6 Balanced score card
13.7 Intellectual capital and HRD
13.8 Notes
13.9 Summary
13.10 Key words
13.11 Self-assessment questions
13.12 References

164
13.0 OBJECTIVES
After reading this unit, you should be able to;
• Discuss the framework within which Human Resources are evaluated.
• Appreciate the role of human resource accounting practices and human resource
audit in taking strategic decisions
• Recognize the advantages of human resource benchmarking
• Comprehend the need for competency mapping
• Identify with the concept of balance scorecard
• Relate Intellectual capital with Human Resource Development

13.1 INTRODUCTION
Human resources measurement in an organization is done to measure the
contribution of HR programs to organizational performance, to know the most
competitive employee mix for a business unit, to measure the cost and value of the
different types of work performed by the employees, increasingly derive value from
human resources. The strategic importance of the workforce makes decisions about
talent critical to organizational success. Informed decisions about talent require a
strategic approach to measurement. However, measures alone are not sufficient, for
measures without logic can create information overload, and decision quality rests in
substantial part on the quality of measurements. An important element of enhanced
competitiveness is a measurement of talent that articulates the connections between
people and success, as well as the context and boundary conditions that affect those
connections. Hence there is a need to examine the various tools for evaluating the
effectiveness of Human Resources.

13.2 HUMAN RESOURCE ACCOUNTING

The American Accounting Association’s Committee on Human Resource
Accounting (1973) has defined Human Resource Accounting as “the process of
identifying and measuring data about human resources and communicating this
information to interested parties”.
 HRA, thus, not only involves measurement of all the costs/ investments associated
with the recruitment, placement, training and develop ent of employees, but also the
quantification of the economic value of the people in an organisation.
Flamholtz (1971) too has offered a similar definition for HRA. They define HRA
as “the measurement and reporting of the cost and value of people in organizational
resources”.
Methods of Human Resource Accounting
Method of Evaluation of human resource management
1. HistoricalCostApproach
This approach was developed by William C. Pyle (and assisted by R. Lee Brummet
& Eric G. Flamholtz) and R.G. Barry corporation, a leisure footwear manufacturer based
on Columbus, Ohio (USA) in 1967. In this approach, actual cost incurred on recruiting,
hiring, training and development the human resources of the organisation are capitalised
and amortised over the expected useful life of the human resources. Thus a proper
recording of the expenditure made on hiring, selecting, training and developing the
employees is maintained and a proportion of it is written off to the income of the next
few years during which human resources will provide service. If the human assets are
liquidated prematurely the whole of the amount not written off is charged to the income
of the year in which such liquidation takes place. If the useful life is recongnised to be
longer than originally expected, revisions are effected in the amortisation schedule. The
historical cost of human resources is very similar to the book value of the other physical
assets. When an employee is recruited by a firm, he is employed with the obvious
expectation that the returns from him will far exceed the cost involved in selecting,
developing and training in the same manner as the value of fixed assets is increased by
making additions to them. Such additional costs incurred in training and developing is
also capitalised and are amortised over the remaining life. The unexpired value is
Investment in human assets.
This method is simple to understand and easy to work out. It meets the traditional
accounting concept of matching cost with revenue. It can provide a basis of evaluating a
company’s return on its investment in human resources
But it suffers from the following limitations:
 It takes into account a part of the employees acquisition costs and thus ignores the
aggregate value of their potential services.

166
 It is difficult to estimate the number of years over which the capitalised expenditure
is to be amortised.
 It is difficult to determine the rate of amortisation. Should it be increasing, constant
or decreasing one?
 The economic value of human resources increases over time as the people gain
experience. But in this approach, the capital cost decreases through amortisation.
2. Replacement Cost Approach –
This approach was first suggested by Rensis Likert, and was developed by Eric G.
Flamholtz on the basis of concept of replacement cost. Human resources of an
organisation are to be valued on the assumption that a new similar organisation has to be
created from scratch and what would be the cost to the firm if the existing resources
were required to be replaced with other persons of equivalent talents and experience. It
takes into consideration all cost involved in recruiting, hiring, training and developing
the replacement to the present level of proficiency and familiarity with the organisation.
This approach is more realistic as it incorporates the current value of company’s
human resources in its financial statements prepared at the end of the year. It is more
representative and logical. But it suffers from the following limitations:
• This method is at variance with the conventional accounting practice of valuing
assets.
• There may be no similar replacement for a similar certain existing asset. It is really
difficult to find identical replacement of the existing human resource in actual
practice.
• The determination of a replacement value is affected by the subjective
considerations to a marked extent and therefore, the value is likely to differ from
man to man.
3. Opportunity Cost –
This method was first advocated by Hc Kiman and Jones for a company with several
divisional heads bidding for the services of various people they need among themselves
and then include the bid price in the investment cost. Opportunity cost is the value of an
asset when there is an alternative use of it. There is no opportunity cost for those
employees that are not scarce and also those at the top will not be available for auction.
As such, only scarce people should comprise the value of human resources.
 This method can work for some of the people at shop floor and middle order
management. Moreover, the authors of this approach believe that a bidding process such
as this is a promising approach towards more optional allocation or personnel and a
quantitative base for planning, evaluating and developing human assets of the firm. But
this approach suffers from the following limitations:
 It has specifically excluded from its preview the employees scarce or not being
‘bid’ by the other departments. This is likely to result in lowering the morale and
productivity of the employees who are not covered by the competitive process.
 The total valuation of human resources on the competitive bid price may be
misleading or inaccurate. It may be due to the reason that a person may be an expert
for one department and not so for the other department. He may be valuable person
for the department in which he is working and thus command a high value but may
have a lower price in the bid by the other department.
 Under this method, valuation on the basis of opportunity cost is restricted to
alternative use within the organisation. In real life such alternative use may not be
identifiable on account of the constraints in an organisational environment.

13.3 HUMAN RESOURCE AUDIT

Human resources are the people in an organization, so a human resources audit is
a look at those people and the processes that put them in place to make sure the system
is working efficiently. An HR audit also goes beyond looking at the hiring process into
areas like employee retention, budgeting, training, employee compensation, management/
employee relations and virtually any process or practice within the company that affects
its people.
A periodic Human Resource audit can qualify its effectiveness within an
organization. Human Resource audits may accomplish a variety of objectives, such as
ensuring legal compliance; helping maintain or improve a competitive advantage;
establishing efficient documentation and technology practices; and identifying strengths
and weaknesses in training, communications and other employment practices
Human Resource auditing is something that many companies do annually, just as
they audit their financial information. This gives them an accounting of their workforce
and the efficiency with which the organization as an entity deals with its people, from
recruiting to firing. Human Resource auditing can be likened to a person going to the
doctor for a general check-up to stay well. The process allows a company to get a general

168
idea of where it stands so it can better correct any potential problems and plan for the
future.
When it comes to physical health, prevention of problems is far better than waiting
until a problem arises and trying to cure it. The same holds true for human resources
auditing. Preventing problems is much easier than trying to fix them after the fact. Good
Human Resource planning and auditing can help prevent those problems, and save
companies money and difficulties.
Auditing is a diagnostic tool to gauge not only the current status of things but
also the gaps between the current status and the desired status in the area that is being
audited.
Auditing has been a routine exercise in the area of finance, especially because it
is a statutory obligation. However, in case of Human Resource, there is no legal binding
to adopt auditing. Some of the companies nevertheless prefer to have Human Resource
audits.
Like any audit, the Human Resource Audit is also a systematic formal process,
which is designed to examine the strategies, policies, procedures, documentation,
structure, systems and practices with respect to the organization’s human resource
management. It systematically and scientifically assesses the strengths, limitations, and
developmental needs of the existing human resources from the larger point of view of
enhancing organisational performance.
A Human Resources Audit is a comprehensive method (or means) to review current
human resources policies, procedures, documentation and systems to identify needs for
improvement and enhancement of the HR function as well as to assess compliance with
ever-changing rules and regulations
The human resource audit is based on the premise that human resource processes
are dynamic and must continually be redirected and revitalized to remain responsive to
the ever changing needs. Human Resource Audits are not routine practices aimed at
problem solving. Instead of directly solving problems, HR audits, like financial audits,
help in providing insights into possible causes for current and future problems.
The findings of these audits aid decision making in the organisation and are usually
internal documents that need not necessarily be shared with the public. Moreover, unlike
Financial Audits that are routine, regulated and standardised, Human Resource Audits
are non-routine and may be designed to cater to the unique needs of the organisation at
a particular point in time. These are in fact, studies of an unusual nature. The manner in
which the Audit is conducted could vary from self-directed surveys to interventions by
outside consultants.
Human Resource Audit is the systematic verification of job analysis and design,
recruitment and selection, orientation and placement, training and development,
performance appraisal and job evaluation, employee and executive remuneration,
motivation and morale, participative management, communication, welfare and social
security, safety and health, industrial relations, trade unionism, and disputes and their
resolution. HR audit is very much useful to achieve the organizational goal and also is a
vital tool which helps to assess the effectiveness of HR functions of an organization.
It involves a complete Human Resources Checkup, including administration,
employee files, compliance, handbook, orientation, training, performance management,
and termination procedures. The intended outcomes include minimizing the liability
exposure and introduction or enhancement of human resource best practices.
Need and Purpose of Human Resource Auditing
The commonly understood audits are the established and regular accounting audits
carried out in accordance with specific statutory regulations. However, in the case of
human resource audits, there is no legal obligation, but enlightened managements have
voluntarily accepted its usefulness depending upon the circumstances. The following
circumstances may be cited as examples:
 felt concern by top management,
 compulsions of the external forces necessitating a situational audit,
 business changing significantly influenced by international business decisions
affecting human resource management, and
 an urge on the part of human resource management professionals towards
advancement of the practices and systems.
It is necessary to take a look at these and other questions. Human Resource audit
is highly useful for the purpose
• Does the organisation regularly forecast the supply of and demand for employees
in various categories?
• Do job analyses exist for all positions in the organisation?
• Are all potential sources of recruitment identified and evaluated?

170
• Are measurable selection criteria developed and used while filling up jobs?
• Do effective training and development programmes exist?
• Is there a performance evaluation system that helps assess past and potential
performance?
• Is the remuneration programme designed to motivate employees?
• Is the plant unionised?
• Does a grievance procedure exist?
• Does the organisation have high quality of work life?
• Does the HRM practice contribute to organisational effectiveness?
• Does the management underestimate the capacity of HRM to contribute to
organizational effectiveness?
Approaches to Human Resources Audit
The following approaches are adopted for purpose of evaluation:
1. Comparative approach
2. Outside authority approach
3. Statistical approach
4. Compliance approach
5. Management by objectives (MBO) approach
Comparative approach
In this, the auditors identify Competitor Company as the model. The results of
their organization are compared with that Company/ industry.
Outside authority approach
In this, the auditors use standards set by an outside consultant as benchmark for
comparison of own results.
Statistical approach
In this, Statistical measures are performance is developed considering the
company’s existing information.
Compliance approach
In this, auditors review past actions to calculate whether those activities comply
with legal requirements and industry policies and procedures.
Management by objectives (MBO) approach
This approach creates specific goals, against which performance can be measured,
to arrive at final decision about organization’s actual performance with the set objectives.

13.4 HUMAN RESOURCE BENCHMARKING

Benchmarking is a technique that uses quantitative or qualitative data to make
comparisons between different organizations or different sections of organizations.
Benchmarking is usually treated as a continuous process in which organizations
periodically measure, challenge, and improve their practices.
Benchmarking seeks to asses the competences of an organization against “best in
class” wherever that is to be found. Often this taken to mean only measures of output
performance which can be defined in quantitative term (comparison of financial
performance, key financial ratio and other measure of output such as market share,
production throughput). However there are also more qualitative less tangible feature of
performance which result on quality or satisfaction such as attitude towards customers.
Assessment of these features is more difficult and it can only be done by direct
observation or surveying user .Benchmarking should include quantitative and qualitative
measure of performance and its emphasize should be on continuous quality improvement.
There are two kinds of Benchmarking – Internal Benchmarking and External
Benchmarking.
Internal Benchmarking
Most organizations monitor their own performance in order to identify change in
key business activities over time. This may mean looking at the performance of the
organization as a whole or comparing the performance of difficult individual teams or
business unit with each other. Performance monitoring is continuous process. Those
with an interest in an organization’s business (shareholder, analyst, management, etc.)
will wish to compare result over time in order to reveal trends in business performance.
This is the only way to discern whether performance is in line with expectations.
individual activities involved not just a business unit. Part of this process will involve
regular analysis of performance against target e.g. financial performance budget, sales
and production achievement against target.
External Benchmarking
This involves comparing performance with that of other organizations.
Organizations need to decide:

172
 What activities or other dimension of the organization should be compared with
others?
 Who the other organizations should be?
 How information on other organizations can be obtained?
In reality external benchmarking can be time consuming and be hampered by the
difficulty of obtaining relevant information .There are also problems of finding
comparable organizations to bench mark against. Nevertheless, most organization will
wish to asses their own performance relatives to industry norm. They could do this with
reference to industry averages or the time performance of best performing organization.
However a danger in relying solely in industry norm analysis is that industry may itself
perform badly. Obviously the scope of cross industry comparison will be more limited
but could relate, for example the employee cost or to research and development
expenditure.
To conduct bench marking exercise the following 10 steps are to be followed
according to the sequence in which they are presented:
• Identify what is to be benchmarked.
• Identify comparable companies.
• Determine data collection methods and collect data.
• Determine current performance levels.
• Project future performance levels.
• Communicate benchmark results and gain acceptance.
• Establish functional goals.
• Develop action plans.
• Implement action plans and monitor progress.
• Recalibrate benchmarks.
Like general benchmarking, HR benchmarking is extremely important. When
information on HR performance has been gathered, it must be compared to a standard,
which is a model or measure against which something is compared to determine its
performance level. For example, it is meaningless to know that organizational turnover
rate is 75% if the turnover rates at comparable organizations are unknown. HR
benchmarking compares specific measures of performance against data on those
measures in other “best practices” organizations. HR professionals interested in
benchmarking try to locate organizations that do certain activities particularly well and
thus become the “benchmarks.” HR Benchmarking is useful for following reasons:
 An organisation can identify how its HR practices compare with the best practices.
 It helps organisations learn what type of HR practices work and they can be
successfully implemented.
 They provide a basis for reviewing existing HR practices and developing new
practices.
 They also help managers to establish a strategy and set priorities for HR practices.
Some of the common benchmarked performance measures in HR management are:
 Total compensation as a percentage of net income before taxes
 Per cent of management positions filled internally
 Rupee sales per employee
 Benefits as a percentage of payroll cost
Managers need to consider several things when benchmarking. Managers must
gather information about internal processes to serve as a comparison for best practices.
It is also important to clearly identify the purpose of benchmarking and the practice to
be benchmarked, and as with most quality approaches, upper-level management needs to
be committed to the project. Both qualitative and quantitative data should be collected
because descriptions of programmmes and how they operate are as valuable as knowing
how best practices contributed to the bottom line.
To ensure the broadest information possible, managers should be careful to gather
data from the companies both within and outside their industry. Benchmarking may actually
limit a company’s performance if the goal is only to learn and copy what competitors
have done and not to consider various options to improve their process. It is also
important not to view HR practices in isolation from each other. For example, examining
recruitment practices also requires consideration on company’s emphasis on use of the
company’s staffing strategy. Benchmarking will not provide “right” answer. The
information collected needs to be considered in terms of the context of the companies.
Finally, benchmarking is one part of an improvement process. As a result, use of the
information gathered from benchmarking needs to be considered in the broader
framework of organisational change.

174
13.5 COMPETENCY MAPPING
Competency mapping is a process of identifying key competencies for a particular
position in an organization, and then using it for job-evaluation, recruitment, training
and development, performance management, succession planning, etc.
Competency Mapping is a process of identifying key competencies for an
organization and/or a job and incorporating those competencies throughout the various
processes (i.e. job evaluation, training, recruitment) of the organization. A competency
is defined as a behavior (i.e. communication, leadership) rather than a skill or ability.
The steps involved in competency mapping with an end result of job evaluation
include the following:
1. Conduct a job analysis by asking incumbents to complete a position information
questionnaire (PIQ). The PIQ can be provided for incumbents to complete, or you
can conduct one-on-one interviews using the PIQ as a guide. The primary goal is to
gather from incumbents what they feel are the key behaviors necessary to perform
their respective jobs.
2. Using the results of the job analysis, you are ready to develop a competency based
job description. This is developed by carefully analyzing the input from the
represented group of incumbents and converting it to standard competencies.
3. With a competency based job description, you are on your way to begin mapping
the competencies throughout your HR processes. The competencies of the
respective job description become your factors for assessment on the performance
evaluation. Using competencies will help guide you to perform more objective
evaluations based on displayed or not displayed behaviors.
4. Taking the competency mapping one step further, you can use the results of your
evaluation to identify in what competencies individuals need additional development
or training. This will help you focus your training needs on the goals of the position
and company and help your employees develop toward the ultimate success of the
organization.

13.6 BALANCED SCORE CARD

The balanced scorecard is a strategic planning and management system that is
used extensively in business and industry, government, and nonprofit organizations
worldwide to align business activities to the vision and strategy of the organization,
improve internal and external communications, and monitor organization
 The Balanced Scorecard is a strategy performance management tool - a semi-
standard structured report, supported by design methods and automation tools, that can
be used by managers to keep track of the execution of activities by the staff within their
control and to monitor the consequences arising from these actions.
The critical characteristics that define a balanced scorecard are:
 its focus on the strategic agenda of the organization concerned
 the selection of a small number of data items to monitor
 a mix of financial and non-financial data items.
Design of a balanced scorecard is about the identification of a small number of
financial and non-financial measures and attaching targets to them, so that when they are
reviewed it is possible to determine whether current performance ‘meets expectations’.
By alerting managers to areas where performance deviates from expectations, they can
be encouraged to focus their attention on these areas, and hopefully as a result trigger
improved performance within the part of the organization they lead.
The original thinking behind a balanced scorecard was for it to be focused on
information relating to the implementation of a strategy, and over time there has been a
blurring of the boundaries between conventional strategic planning and control activities
and those required to design a balanced scorecard. This is illustrated well by the four
steps required to design a balanced scorecard included in Kaplan & Norton’s writing on
the subject in the late 1990s:
1. Translating the vision into operational goals;
2. Communicating the vision and link it to individual performance;
3. Business planning; index setting
4. Feedback and learning, and adjusting the strategy accordingly.
These steps go far beyond the simple task of identifying a small number of financial
and non-financial measures, but illustrate the requirement for whatever design process
is used to fit within broader thinking about how the resulting balanced scorecard will
integrate with the wider business management process.
Although it helps focus managers’ attention on strategic issues and the management
of the implementation of strategy, it is important to remember that the balanced scorecard
itself has no role in the formation of strategy. In fact, balanced scorecards can co-exist
with strategic planning systems and other tools.

176
13.7 INTELLECTUAL CAPITAL AND HRD
Definition: Collective knowledge of the individuals in an organization or society.
This knowledge can be used to produce wealth, multiply output of physical assets, gain
competitive advantage, and/or to enhance value of other types of capital. Intellectual
capital is now beginning to be classified as a true capital cost because (1) investment in
(and replacement of) people tantamount to investment in machines and plants, and (2)
expenses incurred in education and training (to maintain the shelf life of intellectual
assets) are equivalent to depreciation costs of physical assets.
Intellectual capital, in other words, represents the collective knowledge that is
rooted in the personnel, organizational systems and network relationships of an
organization. Organizations have accepted IC as an important resource that need to be
developed to acquire sustained competitive advantage as the knowledge that all employees
bring to an organization is believed to provide the organization with a cutting edge.
Therefore, the collective knowledge of an organization in today’s knowledge economy
is of utmost importance.
The management of IC should be such that the knowledge drawn from various
levels should lend itself to the formation and implementation of HRM strategies and
practices in the organization. This requires a paradigmatic shift in attitude towards a
strategic focus of IC and its links to HRM.
Intellectual capital is the sum of an organization’s resources encompassing
collective tacit knowledge, human skills, experience and any intellectual resource that
can contribute to value creation for the organization. When physical assets and financial
capital are no longer the resources that facilitate competitive advantage, IC becomes the
only differentiating factor that provides a competitive market position to an organization.
The concept of IC encompasses three primary interrelated components: human
capital, structural capital and relational capital. Human capital subsumes various human
resource elements, including cumulative tacit knowledge, competencies, experience and
skills, and the innovativeness and talents of people. Human capital cannot be owned but
only be rented and knowledge can only be created by individuals but not by organizations.
New organizational members carry human capital when they join an organization. A loss
of organizational memory due to individuals’ departure may cause a threat to the
organization. This is because organizational members take their talent, skills and tacit
knowledge with them when they leave the organization. That is why human capital is
important to organizations. When an organization acquires human resources in the
external job market it must undergo a period of dynamic adjustment costs before the
best uses of the human resources can be discovered and tailored to the needs of the new
environment. Besides, new employees’ prior industry experience may affect their
performance, preventing them to unlearn and re-learn knowledge in the new environment.
In other words, human resources, along with their human capital, may not move between
firms as easily as it was perceived. Accordingly, organizations should pay attention more
on the development and deployment of human capital as recruitment and selection of
human resources is not enough to ensure competitive advantage.
Structural capital refers to the learning and knowledge that is enacted in day-to-
day activities. It is the pool of knowledge that remains in an organization at the end of
the day after individuals within the organization have left. Structural capital is the
supportive infrastructure for human capital. Structural capital deals with the mechanisms
and structures of organizations that can assist individuals in their quest for optimum
intellectual performance. This intellectual performance ultimately enhances overall
organizational performance. Structural capital includes all of the non-human storehouses
of knowledge in organizations such as databases, routines, organizational culture and
anything that creates value for organizations. The role of human resources in creating
competitive advantage depends highly on the other two IC components: structural capital
and relational capital. Employees’ know-how is most inimitable when it is firm specific
and resides in the organization where it was originally developed that learning process
within an organization helps to create firm-specific human capital and that potentially
makes the human capital less useful to rivals. Other structural capital elements such as
organizational culture and routines also help to amplify human capital, increase firm
specificity and decrease imitability. Accordingly, HRM managers should not ignore
structural capital when formulating and implementing HRM strategies and practices.
Relational capital represents an organization’s relations with its external
stakeholders and the perceptions that they hold about the organization, as well as the
exchange of knowledge between the organization and its external stakeholders. Examples
of relational capital include: the loyalty of valuable customers as a result of understanding
their needs and meeting them consistently; the mutual trust and commitment given by
key suppliers; the reliability and reliance partnership from allied partners; the reputation
and relationships that an organization has developed over time in its surrounding
community; the knowledge of laws and regulations as well as the lobbying and networking
skills; and the critical understanding and intelligence about competitors. Relational
capital assists members of an organization to appreciate the dynamic of external

178
knowledge. External knowledge is important to the role of human resources as it helps
to increase the stock of human capital and potentially improve the quality of existing
human capital within the organization.
IC is an important resource that organizations need to develop strategies for and
around them measure, manage, maintain and develop their existing pool of knowledge.
By understanding the effect of Intellectual Capital on HRM, senior human resource
executives are more likely to be able to assist the executives to make strategic human
resource decisions that enhance HRM performance and thus, enhance firm performance.

13.8 NOTES
..................................................................................................................................................
..............................................................................................................................................
..................................................................................................................................................
..............................................................................................................................................
..................................................................................................................................................
..............................................................................................................................................
..................................................................................................................................................
..............................................................................................................................................
..................................................................................................................................................
..............................................................................................................................................
..................................................................................................................................................
..............................................................................................................................................
..................................................................................................................................................
..............................................................................................................................................
..................................................................................................................................................
..............................................................................................................................................
..................................................................................................................................................
..............................................................................................................................................
..................................................................................................................................................
..............................................................................................................................................
..................................................................................................................................................
..............................................................................................................................................
..................................................................................................................................................
..............................................................................................................................................
..................................................................................................................................................
..............................................................................................................................................
..................................................................................................................................................
..............................................................................................................................................
..................................................................................................................................................
..............................................................................................................................................
..................................................................................................................................................
..............................................................................................................................................
..................................................................................................................................................
..............................................................................................................................................
..................................................................................................................................................
..............................................................................................................................................
..................................................................................................................................................
..............................................................................................................................................
..................................................................................................................................................
..............................................................................................................................................
..................................................................................................................................................
..............................................................................................................................................
..................................................................................................................................................
..............................................................................................................................................
..................................................................................................................................................
..............................................................................................................................................
..................................................................................................................................................
..............................................................................................................................................

180
13.9 SUMMARY
Human resources evaluation using tools such as human resource accounting.
Human resource audit, human resource benchmarking, competency mapping, balance
scorecard help organizations to measure the contribution of HR programs towards
effectiveness and efficiency of organizational performance. They help in determining
the most competitive employee mix for a business unit. They help in assessing the cost
and value of the different types of work performed by the employees and the extent to
which human resources add value to the organisation. They help in making strategic
decisions with respect to the workforce which is critical for organizational success.
13.10 KEY WORDS
Human Resource Accounting, Human Resource Audit, Human Resource
Benchmarking, Competency Mapping, Balance Scorecard, Intellectual Capital.

13.11 SELF-ASSESSMENT QUESTIONS

1. Explain the methods of Human Resource Accounting?
2. Examine the role of Human Resource Auditing in taking strategic decisions.
3. What is Human Resource Benchmarking? Why is it necessary?
4. Explain the steps involved in competency mapping. How does it help in job-
evaluation?
5. What is the purpose of using Balance Scorecard? Discuss its characteristics.
6. Discuss the various components of Intellectual Capital.

13.12 REFERENCES
1. Pareek, V and Rao T.V. Designing and Managing Human Resource Systems, New
Delhi: Oxford and IBH Publishing Co., 1981.
2. Rao T.V Pereira D.F. Recent Experiences in Human Resource Development, New
Delhi: Oxford and IBH Publishing Co.,1986
3. Ulrich D – Human Resource Champions, Harvard Business School Press – 1997
4. Kalpana R. – Balance Score Card – Harvard Business Review, January-February.
(1992)
UNIT-14 : HUMAN RESOURCE DEVELOPMENT

Structure:
14.0 Objectives
14.1 Introduction
14.2 Employee development
14.3 Employee Counseling
14.4 HRD mechanisms for workers
14.5 Team building
14.6 Developing creativity & innovations
14.7 HR strategies for competitive advantage
14.8 Notes
14.9 Summary
14.10 Key words
14.11 Self-assessment questions
14.12 References

182
14.0 OBJECTIVES
After reading this unit, you should be able to:
• Explain the importance of creating an enabling and developmental role of the
employee through Human Resources Development mechanisms
• Examine the need for employee counseling
• Identify the HRD mechanisms for workers
• Appreciate team building interventions
• Recognize the initiatives for developing creativity and innovations
• Explain HRD strategies for competitive advantage

14.1 INTRODUCTION
Development of human resources is essential for any organisation that would
like to be dynamic and growth-oriented. Unlike other resources, human resources have
rather unlimited potential capabilities. The potential can be used only by creating a climate
that can continuously identify, bring to surface, nurture and use the capabilities of people.
Human Resource Development (HRD) system aims at creating such a climate. A number
of HRD techniques have been developed in recent years to perform the above task based
on certain principles.
HRD concept was first introduced by Leonard Nadler in 1969 in a conference in
US. “He defined HRD as those learning experience which are organized, for a specific
time, and designed to bring about the possibility of behavioral change”.
Human Resource Development (HRD) is the framework for helping employees
develop their personal and organizational skills, knowledge, and abilities. Human
Resource Development includes such opportunities as employee training, employee
career development, performance management and development, coaching, mentoring,
succession planning, key employee identification, tuition assistance, and organization
development.
The focus of all aspects of Human Resource Development is on developing the
most superior workforce so that the organization and individual employees can accomplish
their work goals in service to customers.
Human resource development in the organisation context is a process by which
the employees of an organisation are helped, in a continuous and planned way to:
1. Acquire or sharpen capabilities required to perform various functions associated
with their present or expected future roles;
2. Develop their general capabilities as individuals and discover and exploit their
own inner potentials for their own and/or organisational development purposes;
and
3. Develop an organisational culture in which supervisor-subordinate relationships,
teamwork and collaboration among sub-units are strong and contribute to the
professional well being, motivation and pride of employees.
Features of Human Resource Development
Human resource development is a process in which employees of the organisations
are recognized as its human resource. It believes that human resource is most valuable
asset of the organisation.
 It stresses on development of human resources of the organisation. It helps the
employees of the organisation to develop their general capabilities in relation to
their present jobs and expected future role.
 It emphasise on the development and best utilization of the capabilities of
individuals in the interest of the employees and organisation.
 It helps is establishing/developing better inter-personal relations. It stresses on
developing relationship based on help, trust and confidence.
 It promotes team spirit among employees.
 It tries to develop competencies at the organisation level. It stresses on providing
healthy climate for development in the organisation.
 HRD is a system. It has several sub-systems. All these sub-systems are inter-related
and interwoven. It stresses on collaboration among all the sub-systems.
 It aims to develop an organisational culture in which there is good senior-
subordinate relations, motivation, quality and sense of belonging.
 It tries to develop competence at individual, inter-personal, group and organisational
level to meet organisational goal.
 It is an inter-disciplinary concept. It is based on the concepts, ideas and principles
of sociology, psychology, economics etc.
 It form on employee welfare and quality of work life. It tries to examine/identify
employee needs and meeting them to the best possible extent.

184
 It is a continuous and systematic learning process. Development is a life long
process, which never ends.

14.2 EMPLOYEE DEVELOPMENT

Employee development is a process of encouraging employees to acquire new or
advanced skills, knowledge, and view points, by providing learning and training facilities,
and avenues where such new ideas can be applied.
Employee development is a joint initiative of the employee as well as the employer
to upgrade the existing skills and knowledge of an individual. It is of utmost importance
for employees to keep themselves abreast with the latest developments in the industry
to survive the fierce competition. Believe me, if you are not aware of what is happening
around you, even before you realize you would be out of the game. As they say there is
really no age limit for education. Upgrading knowledge is essential to live with the
changes of time. Employee development goes a long way in training, sharpening the
skills of an employee and upgrading his/her existing knowledge and abilities. In a layman’s
language, employee development helps in developing and nurturing employees for them
to become reliable resources and eventually benefit the organization. Employees also
develop a sense of attachment towards the organization as a result of employee
development activities.
Organizations must encourage their employees to participate in employee
development activities. Employees also must take skill enhancement or employee
development activities seriously. Do not attend trainings or other employee development
activities just because your Boss has asked you to do so. Don’t just attend trainings to
mark your attendance. You just cannot use same ideas or concepts everywhere.
It is excellent if you know Microsoft Excel or for that matter Microsoft Word.
Remember simply knowing few basic functions of MS excel would not help you in the
long run. It might help you in the short run. Excel is not just to store your required data.
There are many other formulae and advanced applications which one should be aware of.
Enhance your skills with time. Employee development can also be defined as a
process where the employee with the support of his/her employer undergoes various
training programs to enhance his/her skills and acquire new knowledge and learnings.
Every organization follows certain processes which not only help in the professional
but also personal growth of an employee. Employee development activities help an
employee to work hard and produce quality work.
Examples of Employee Development Activities
Professional Growth
Employee development activities must be defined keeping in mind an employee’s
current stage and desired stage. Knowing an employee’s current and desired stage helps
you find the gaps and in which all genres he/she needs to be trained on. Human resource
professionals must encourage employees to participate in internal or external trainings,
get enrolled in online courses to increase their professional knowledge and contribute
effectively.
Personal Growth
Employees start taking their work as a burden only when an organization does not
provide any added benefits or advantages which would help in their personal growth.
Soft skills classes, fitness sessions, loans with lower interest rates are certain
initiatives which not only motivate an employee to do quality work but also help in
employee development.
Employee development not only helps in enhancing knowledge of employees but
also increases the productivity of organizations. Employees, as a result of employee
development activities are better trained and equipped and work harder to yield higher
profits.

14.3 EMPLOYEE COUNSELING

Employee counseling is a psychological health care intervention which can take
many forms. Its aim is to assist both the employer and employee by intervening with an
active problem-solving approach to tackling the problems at hand.
Employee counseling can do much to prevent the negative effects of stress at an
individual level and ultimately at an organizational level.
Employee counseling gives individuals a valuable opportunity to work through
problems and stresses in a strictly confidential and supportive atmosphere.
Counseling provides access to several basic forms of helping: giving information,
direct action, teaching and coaching, advocacy, and providing feedback and advice, for
example.
Typically, counseling involves the individual employee meeting with a
psychological adviser, usually on a one-on-one basis. It is not uncommon for the individual
employee and counselor to meet once or twice a week for several weeks. However, the

186
number and frequency of meetings required will depend upon the nature of the perceived
difficulty and the nature of the intervention needed.
The focus of counseling sessions is to encourage discussion of personal and work-
related difficulties. This is often followed by the adoption of an active problem-solving
approach to tackle the problems at hand.
 The specific aims of employee counseling are to:
 Explore and find the key sources of difficulty (this step may include the use of
diagnostic self-report tests)
 Review the individual’s current strategies and styles of coping.
 Implement methods of dealing with the perceived problem, thereby alleviating the
issue. Often, this step may involve also improving interpersonal relations at work
and/or improving personal performance.
 Evaluate the effectiveness of the chosen strategies.
Counseling Approach
A counseling session must be planned and organized. Your approach is one of the
primary issues to consider. The approach you take to counseling will generally fall
somewhere on a continuum between extremely directive and extremely non-directive.
The continuum looks something like this: Extremely Directive Non-Directive
As a manager, you must choose the approach you will take in each counseling
session. There are a number of factors to consider including the objective of the session,
whether the session is for conduct or performance, and the personality of the employee.
However, the objective to be achieved is the primary determinant in planning the
counseling Characteristics of the Directive Approach
In a directive counseling session, the manager takes the lead and does most of the
talking. These meetings are relatively brief covering only enough time to fully cover the
counseling plan. The manager opens the session with a definition of the problem which
initiated the need for the counseling. Next, you should explain the effect of the problem
on accomplishing the work of the unit. This should provide the employee with a clear
understanding of how the actions of the employee are adversely affecting the work unit
and follow with your expectations for the employee to correct the problem. You should
clearly identify the consequences if the employee fails to change and comply with your
expectations. This is not a threat but rather a clear delineation of what the employee can
expect if the situation remains unchanged. At this point, it is good to provide the employee
with an opportunity to explain and question anything you have said. 13Generally, this
approach is used for conduct situations where the violation is straight forward and the
expectations are clear. For example, a situation where an employee has returned from
lunch late causing an adverse effect on the work of the unit. If it continued, the other
employees of the unit would expect to have the same privilege. The focus of the session
is on improvement in the behavior of the employee and that can be easily measured.
When using the directive approach, a follow-up meeting is not necessary unless
the conduct has not improved and change has not occurred. A follow-up meeting is usually
needed for performance counseling. Performance counseling is handled through a more
non-directive approach, since the total involvement of the employee is necessary in
achieving change in performance-related issues.
Characteristics of the Non-Directive Approach
This approach differs considerably from the directive approach. The manager is
still in control, but the employee is responsible for much of the discussion. In this
approach, the manager must use advanced counseling techniques to keep the employee
talking about the problem, its causes, and possible solutions. This approach is normally
used for performance related counseling where the employee is failing, or nearly failing,
one or more critical elements of the position. You must keep the pressure on the employee
since performance problems are primarily that of the employee, not the supervisor. While
you have a great deal at stake if the employee does not improve performance, the problem
is that of the employee. You must assure the employee is actively involved in developing
a resolution. When planning to conduct a non-directive counseling session, allow two
hours for the meeting. While most meetings using this approach last less than two hours,
you should allow that much time to provide an adequate opportunity to develop proposed
solutions for the problem. These meetings are time consuming, but essential when
attempting to improve employee performance.
When using the non-directive approach, you need patience for the process to
work. You often have to use advanced counseling techniques that include paraphrasing,
questioning, and probing. Sometimes, this requires the manager to use unnatural behavior.
Generally, a manager attempts to utilize time efficiently. In this process, you have to
avoid reaching your “bottom-line” too quickly. You have to abstain from providing your
solution to the employee and help the employee develop a solution that is acceptable to
you. The employee will feel a part of the solution and strive to achieve results if you and
the employee develop a solution that is satisfactory to both of you.

188
14.4 HUMAN RESOURCE DEVELOPMENT MECHANISMS FOR
WORKERS
Human Resource Development Mechanisms for workers include training, welfare,
quality circles, quality work life, grievance mechanism, workers participation in
management and counseling.
Training:
Training is an important mechanism for worker development. For overall
development and growth of workers, the direction of training effort need to be focused
not only on job skills but also inter-personal skills, collaborative skills and team building
skills. Besides these skills, problem solving and self-management are also required.
The effprt in training has to be basically AN INSTITUTIONAL EFFORT, DEPENDDING
upon the actual training needs of workers in the technological context of a particular
industry. Technical training itself will not create competence amongst workers but
behavioural training is equally important to develop inter-personal skills and also skills
to help them in improving quality of their life in general.
Counseling:
Counseling is an important mechanism to provide timely guidance to workers
and help them learn from their own mistakes. Timely counseling can help avoid many
conflict situations and eventually help workers both in their personal and job life. Many
Indian companies have trained counselors, who work full time and extend counseling
services to workers. Larsen and turbo, and Voltas are two companies in private sectors
that have taken significant initiative in this direction. Counseling services may be extended
to the personal family life of workers. Counseling to help a worker to plan the careers
of his own children can have high motivational value.
Participation:
Workers’ participation in management is a very potent mechanism for overall
growth of workers and also all round growth of companies. Pitably, however, not much
has either been initiated or achieved in this direction. Partly the problem is that the
scheme of workers’ participation in management is always pushed by statutory
mechanisms and to that extent is considered as coercion from the government. The overall
industrial relations environment and the inter-union rivalry add to the problem. In this
atmosphere, the employers have mostly played safe. Failure of institutions of work
committee and joint management councils are examples of inadequacy of governmental
interventions. One of the important reasons for the cynicism amongst employers about
any participation mechanism seems to be lack of experimentation I this area. A handful
of companies have however experimented though in a limited manner, the participation
opf workers in the affairs on management.
Employee welfare
The issue related to welfare is very much germane to the overall development of
workers, both their physical being and psychological being. Employee welfare
programmes create a sense of belonging and adequacy thtah benefits the organization in
the long run. In a highly inflationary economy like ours, the wages are barely adequate
for day-to-day sustenance of workers. Unless adequate welfare programme exist in the
form of educational subsidies, health and medical benefits etc workers are likely to
languish at the present level and quality of their life is likely to suffer. What are required
in the welfare programmes are the concern and the pro-activity for worker welfare.
Voluntaries are the hallmark of pro- activity in welfare programmes. Most welfare
programme for industrial workers are in the form of statutory labour laws. The
development of workers can be actuated by pro – activity on the part of employers in
initiating welfare schemes like eight –hour working day, free medical aid, schooling
facilities for children, leave with pay, provident fund scheme, workmen compensation
scheme, medical benefit, profit sharing benefit, retirement gratuity etc. that are in
consonance with the emerging needs of workers.
Quality of work life
For overall development of workers, only good wages and service conditions are
not adequate. Equally important is the environment in which they work. This mostly
relates to physical environment such as heating and air conditioners, lighting and safety
and general aesthetic atmosphere in the organization. Quality of work life is focused
generally on these aspects and also on other motivational factors such as flexibility in
working hours, autonomy and discretion in the performance of jobs and the very nature
of the work etc.
Quality Circles
Quality circle is a small group activity where in a small group of employees on
voluntary basis meet periodically to discuss work-related problems. Experience with
quality circle in Japan and elsewhere is very encouraging in terms of involvement of
workers in the work-related matters and psychological satisfaction. In a last few years,
many companies, both in private sector and public sector have experimented with quality
circle and the results are encouraging.

190
Grievance mechanism
In a large organization, there is a tendency to ignore the grievance of workers and
many a times, individuals are not encouraged to put- forth their grievance and the only
mechanism to deal with workers grievance is through trade unions. Absence of timely
disposal of grievance is creating a sense of frustration and eventual conflict in the
organization. Many developmental efforts become counterproductive on the aggrieved
groups of workers and therefore, a quick system of grievance redressal is a developmental
mechanism. It requires initiative in developing skills in first line supervisors and others
in handling day to day grievances. Some companies like TISCO have elaborate grievance
redressal machinery, which has the record of successful functioning.
Control and Ownership
Other initiatives in HRD for workers
1. Creating development climate
2. Developing developmental style of leadership amongst all the managers for worker
development
3. Legitimizing the role of unions in traditionally ‘non bargainable’ issues
4. Continuous interaction and dialogue with unions in identifying and prioritizing areas
of HRD for workers.

14.5 TEAM BUILDING

Descriptions, goals, and mechanics of the various technical tools of OD
practitioners that are directed toward improving the performance of ongoing work teams
– from office or plant floor to board rooms – as well as temporary team configuration
are discussed as below:
Characteristics of an Effective Team
 Clear purpose (defined/accepted vision, mission, goal or task, & an action plan).
 Informality (informal, comfortable, and relaxed).
 Participation (much discussion and every one encouraged to participate).
 Listening (members use effective listening techniques such as questioning,
paraphrasing, and summarizing).
 Civilized disagreement (team is comfortable with disagreement; does not avoid,
smooth over, or suppress conflict).
 Consensus decision making (substantial agreement through thorough discussion,
avoidance of voting).
 Open communications (feelings are legitimate, few hidden agendas).
 Clear rules and work assignments (clear expectations and work evenly divided).
 Shared leadership (while there is a formal leader, everyone shares in effective
leadership behaviours).
 External relations (the team pays attention to developing outside relationships,
resources, credibility).
 Style diversity (team has broad spectrum of group process and task skills).
 Self-assessment (the team periodically examines how well it is functioning).
High-performance teams:
Basic characteristics of High-performance teams: deeper sense of purpose, more
ambitious performance goals, more complete approaches, fuller mutual accountability,
interchangeable as well as complementary skills.
Broad Team-building Interventions:
The most important single group of interventions in OD are team building activities,
the goals of which are the improvement and increased effectiveness of various teams
within the organization. Some interventions focus on the intact work team composed of
a boss and subordinates, which we are calling the formal group. Other interventions
focus on special team such as startup teams, newly constituted teams due to mergers,
organization structure changes, or plant startups; task forces; cross-functional project
teams; and committees. Team-building interventions are typically directed toward four
major substantive areas: diagnosis, task accomplishments, team relationships, and team
and organization processes. These separate thrusts are diagrammed in Fig. 2.1. which
describes major approaches to team building, such as the formal work group diagnostic
meeting, formal work group team-building meeting, process consultation, and Gestalt
OD.

192
ig. 2.1: Varieties of Team-Building Interventions
TEAM-BUILDING ACTIVITIES

Formal Groups A. Diagnostic Meetings

(Intact work
teams B. Team building focused on:

Task accomplishment, including

problem solving, decision

making, role clarification gaol

setting etc.

Building and maintaining and

maintaining effective

interpersonal relationships,

including boss-subordinate

TEAM-BUILDING relationships and peer

ACTIVITIES

A. Diagnostic Meetings

B. Team building focused on:

Task accomplishment, especially

special problems, role and gaol

clarification, resource utilization,

etc

Relationships, especially
Formal Groups
(Intact work interpersonal or interunit
teams
conflict, and underutilization of

each other as resources

Processes, especially
 Fig. 2.1 suggests that team-building sessions may be directed toward problem
solving for task accomplishment, examining and improving interpersonal relationships,
or managing the group’s culture and processes. It may be that one of these issues is the
principal reason for holding the team-building meeting. For example, suppose that the
meeting is designed as a team problem-solving session to examine the impact on the
team of a new function or task being added to the group’s work requirements. Even in
this case a portion of the session will probably be reserved for reflecting on how the
team is solving its problems that is, critiquing the group’s processes. In this way the
team becomes more effective at both the task level and the process level.
A Gestalt Approach to Team Building
A form of team building that focuses more on the individual than the group is the
Gastalt approach to OD. The major advocate of this orientation is Stanley M. Herman, a
management and OD consultant. The approach rests on a form of psychotherapy developed
by Frederick S. ‘Fritz’ Perls called Gestalt therapy. Gestalt therapy is based on the belief
that persons function as whole, total organisms. And each person possesses positive
and negative characteristics that must be ‘owned up to’ and permitted expression. People
get into trouble when they get fragmented, when they do not accept their total selves,
and when they are trying to live up to the demands of others rather than being themselves.
The goals of Gestalt therapy are awareness, integration, maturation, authenticity, self-
regulation, and behavior change. Basically, one must come to terms with oneself, must
accept responsibility for one’s actions, must experience and live in the ‘here and now’,
and must stop blocking off awareness, authenticity, and the like by dysfunctional
behaviors.
The primary thrust is to make the individual stronger more authentic, and more in
touch with the individual’s own feelings.
To do this people must be able to express their feelings fully, both positive and
negative. They must ‘get in touch’ with ‘where they are’ relations with others, and
relations with selves. They must learn to ‘stay with’ transactions with other and work
them through to resolution rather than suppressing negative feelings or cutting off the
transaction prematurely. They must learn to accept the polarities within themselves –
weakness – strength, autocratic – democratic urges.
The Gestalt OD practitioner fosters the expression of positive and negative
feelings, encourages people to stay with transactions, structures exercises that cause
individuals to become more aware of what they want from others, and pushes toward

194
greater authenticity for everyone. The Gestalt OD practitioner often works within a
group setting, but the focus is usually on individuals.

14.6 DEVELOPING CREATIVITY AND INNOVATIONS

The companies that have done the best over the long haul are those who are the
most creative and innovative. These organizations don’t copy what others do; instead,
they may use innovative ideas from others as a spring board to come up with a unique
application, product, or service for themselves. They tend to distance themselves from
the competition rather than compete with them. If they see another company copying
what they do, they create something new and better. In other words, they are able to
leverage their creativity and their innovative capabilities to attain long-term success.
What is Creativity?
Creativity is a function of knowledge, curiosity, imagination, and evaluation. The
greater your knowledge base and level of curiosity, the more ideas, patterns, and
combinations you can achieve, which then correlates to creating new and innovative
products and services. But merely having the knowledge does not guarantee the formation
of new patterns. The bits and pieces must be shaken up and iterated in new ways. Then the
embryonic ideas must be evaluated and developed into usable ideas. In other words, there
really is a process. To help you master that process, you first must understand three
important levels of creativity, which are discovery, invention, and creation.
1. Discovery:
The lower level of creativity is discovery. Just as the name implies, it’s when you
become aware of or stumble upon something—discover it. For example, a piece of wood
with an interesting pattern which is a discovered art. Many inventions start with a discovery.
2. Invention:
A higher level of creativity is invention. For example, Alexander Graham Bell
invented the telephone. But you have to ask yourself, “Would the telephone have been
invented without Bell?” The answer is yes. Eventually the telephone would have been
invented as the science was there. So while invention is higher than discovery, it’s
something that is going to happen. If you don’t invent it, someone else will.
3. Creation:
Creation is the highest level of creativity. There are things that only your
organization can create! The key is tapping in to what those things are.
 Here’s an example of how this could play out in your company. While at a
conference you might discover a tool, a technology, or a process that you didn’t know
before. You purchase the tool for your staff, and that discovery helps everyone work
better. After some time, that discovery may also spur an innovative idea of how to apply
the discovery. You may then use that innovative idea as an inspiration that yields something
never seen before, something created by your company that helps you and your customers.
That’s how the three levels of creativity can work together.
Creativity and innovation are different. Creativity refers to generating new and
novel ideas. Innovation refers to the application of an idea and, in many cases, is a
collaborative enterprise. So in other words, innovation is applied creativity.
Strategies for Increasing your Creativity and Innovation
Now that you understand the various levels of creativity, you can implement some
strategies that will boost your company’s ability to create and innovate.
 Truly creative people have developed their ability to observe and to use all of their
senses, which can get dull over time. Take time to “sharpen the blade” and take
everything in.
 Innovation is based on knowledge. Therefore, you need to continually expand your
knowledge base. Read things you don’t normally read.
 Your perceptions may limit your reasoning. Be careful about how you’re perceiving
things. In other words, defer judgment.
 Practice guided imagery so you can “see” a concept come to life.
 Let your ideas “incubate” by taking a break from them. For example, when I’m working
on a big business project, one of the best things I can do to take a break from it is
play my guitar or the flute for a few minutes, or take a ride on my motorcycle. It
shifts my brain into another place and helps me be more innovative and creative.
 Experience as much as you can. Exposure puts more ideas into your subconscious.
Actively seek out new experiences to broaden your experience portfolio.
 Treat patterns as part of the problem. Recognizing a new pattern is very useful, but
be careful not to become part of it.
 Redefine the problem completely. One of the lines I’ve been sharing for the past
few decades is: “Your problem is not the problem; there is another problem. When
you define the real problem, you can solve it and move on.” After all, if you had

196
 correctly defined the real problem, you would have solved it long ago because all
problems have solutions.
 Look where others aren’t looking to see what others aren’t seeing.
 Come up with ideas at the beginning of the innovation process ... and then stop.
Many times we come up with several ideas and start innovating, and then we come
up with more ideas and never get a single idea done. At some point you have to turn
off the idea generation part of the process and really work on the innovation and
execution part in order to bring a project to life.

14.7 HR STRATEGIES FOR COMPETITIVE ADVANTAGE

HR Department has undergone a drastic change and now people are talking about
HR being a strategic partner providing sustainable competitive advantage to the
organizations.
The VRIO framework (Barney, 1995) is one of the most significant approaches
that suggests ways to achieve sustainable competitive advantage through HR.
Value: HR executives must address a primary question “How can HR aid in either
decreasing costs or increasing revenues?” In today’s time when everyone is talking
numbers; the HR department has to prove its worth and show that it creates value for the
organizations. HR can help a firm achieve sustainable competitive advantage by creating
value.
Rareness: Only value alone cannot help the HR department to achieve sustainable
competitive advantage for organizations. HR executives must examine how to develop
and exploit rare characteristics of the firm’s human resources to gain competitive
advantage. If the same characteristic of human resources is found in many competing
firms, then that characteristic cannot be a source of competitive advantage for any one
of them. In order to drive the strategic decisions, HR executives should being the ‘rare’
factor in the talent they recruit.
Imitability: If the competitors in the business can easily imitate what you offer,
then you are at loss! The HR executives must attempt to develop and nurture
characteristics of the firm’s human resources that cannot easily be imitated by
competitors. This essentially means leveraging on organization’s unique history or culture
that helps in gaining competitive advantage. In any organization, the culture is nurtured
and developed via the HR Department. Hence, by restricting and developing unique culture,
executives can help firms in gaining competitive advantage.
 Organization: In order for any characteristic of a firm’s human resources to
provide a source of sustained competitive advantage, the firm must be organized to exploit
the resource. Organization requires developing the systems and practices that allow human
resources characteristics to bear the fruit of their potential advantages. Clearly the HR
function, through either directly controlling or strongly influencing the characteristics
of human resources in organizations plays an important role in developing and maintaining
a firm’s competitive advantage.

14.8 NOTES
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................

198
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
14.9 SUMMARY
Individuals in an organization form its vital resource and must be valued, nurtured
and retained. Employees are the most valuable assets and truly the backbone of an
organization. Every employee in his/her own way contributes towards the success or
failure of an organization. Without employees in an organization, even the most powerful
machinery with the latest technology would not function.
Employees should not treat their organization as a mere source of earning money
and employers should not treat their employees as slaves. Employers must invest their
time and resources in training and developing their workforce in order that they become
indispensable resources. Employees should be developed and prepared to face any
eventualities.
If employees are to function at an optimum level of well-being and competence,
it is vital that they feel supported and valued. Employee counseling can be a vehicle to
provide help in an effective, practical way. It is through such help that individuals are
motivated to understand and realize their own career potential, thus maximizing the
chances of functioning in the best interests of the organization.
There is a vast reservoir of latent talent in workers which if nurtured and chiseled
carefully can increase organizational synergy. Creation of necessary ‘climate’ for
development is, however, a pre-requisite. Both management and trade unions have to
shed their traditional role towards workers and show progressive attitude.
The VRIO framework enables business people in HR to transform the HR function
into a contributor to firm performance rather than a drain on firm resources. Today, HR
is not merely a burden on the organization and HR executives should communicate the
‘economic reason’ which compels the organizations to invite HR Executives to the
strategic planning “table”.

14.10 KEY WORDS

Employee Development, Counseling, HRD Mechanisms, Team Building,
Creativity, Innovations, Competitive Advantage

14.11 SELF-ASSESSMENT QUESTIONS

1. Explain the importance and role Human Resources Development in creating an
effective and efficient workforce for an organization.

200
2. Examine the different approaches to employee counseling .
3. Explain the HRD mechanisms for workers.
4. Explain the various forms of team building interventions.
5. What are the initiatives for developing creativity and innovations in organisations?
6. Explain HRD strategies for competitive advantage.

14.12 REFERENCES
1. Pareek, V and Rao T.V. Designing and Managing Human Resource Systems, New
Delhi: Oxford and IBH Publishing Co., 1981.
2. Rao T.V Pereira D.F. Recent Experiences in Human Resource Development, New
Delhi: Oxford and IBH Publishing Co.,1986
3. Ulrich D – Human Resource Champions, Harvard Business School Press – 1997
4. Kalpana R. – Balance Score Card – Harvard Business Review, January-February.
(1992)
UNIT-15 : ORGANISATION DEVELOPMENT

Structure :
15.0 Objectives
15.1 Introduction
15.2 Meaning and definitions
15.3 Characteristics of organization development
15.4 Organization development values, assumptions and beliefs
15.5 Implication of organization development values and assumptions
15.6 Organisation development process
15.7 Components of organisation development
15.8 Notes
15.9 Summary
15.10 Key words
15.11 Self-assessment questions
15.12 References

202
15.0 OBJECTIVES
After reading this unit, you should be able to;
• Get an insight into the significance of Organization Development (OD).
• Define Organization Development and explain its meaning.
• Summarize the characteristics of OD
• Explain the OD is transition and state the assumptions
• Examine the implication of OD values and assumptions
• Understand the OB Process
• Describe the components of OD

15.1 INTRODUCTION
Organization development is the applied behavioural science discipline dedicated
to improving organizations and the people in them through the use of the theory and
practice of planned change. Organizations face multiple challenges and threats today –
threats to effectiveness, efficiency, and profitability challenges from turbulent
environments, increased competition, and changing customer demands; and the constant
challenge to maintain congruence among organizational dimensions such as strategy,
culture and processes. Keeping organizations healthy and viable to today’s world is a
daunting task.
Individuals in organizations likewise face multiple challenges – finding
satisfaction in and through work, fighting obsolescence of one’s knowledge and skills,
finding dignity and purpose in pursuit of organizational goals, and achieving human
connectedness and community in the workplace. Simple survival – continuing to have
an adequate job – is a major challenge today as people face layoffs and cutbacks. Although
new jobs are being created, old jobs are being destroyed at an accelerating pace.
‘Knowledge’ work is replacing ‘muscle’ work. (Job losses from layoffs and furloughs in
large firms in the United States were averaging over 50,000 per month in the first eight
months of 1993). In summary, organizations and the individuals in them face on
enormously demanding present and future.
Are there any strategies and technologies available to help people and organizations
cope, adapt, survive, and even prosper in these vexing times? Fortunately, the answer is
‘yes’. A variety of solutions exists, and Organization Development (OD) is one of them.
Basically, organization development is a process for teaching people how to solve
problems, take advantage of opportunities, and learn how to do that better and better
over time. OD focuses on issues related to the ‘human side’ of the organization by
finding ways to increase the effectiveness of individuals teams, and the organization’s
human and social processes.
As the term suggests, organization development is about developing (improving)
organizations. But is also about developing individuals. This dual focus is a unique
strength of OD.

15.2 MEANING AND DEFINITIONS

Organization development is a unique organizational improvement strategy that
emerged in the late 1950s and early 1960s. Originally based on insights from group
dynamics and on theory and practice related to planned change, the field has evolved
into an integrated framework of theories and practices capable of solving or helping to
solve most of the important problems confronting the human side of organization.
Organisation development is about people and organizations and people in
organisations and how they function. OD is also about planned change, that is, getting
individuals, teams, and organizations to function better. Planned change involves common
sense, hard work applied diligently over time, a systematic, goal-oriented approach, and
valid knowledge about organizational dynamics and how to change them. Valid knowledge
drives from the behavioural sciences such as psychology, social psychology, sociology,
anthropology, systems theory, organizational behaviour, organization theory, and the
practice of management. Putting all this together, organization development offers a
prescription for improving the ‘fit’ between the individual and the organization, between
the organization and its environment, and among organizational components such as
strategy, structure, and processes. The prescription is implemented through interventions
and activities that address specific problematic conditions.
Leaders and OD practitioners typically conduct OD programs together.
Practitioners are consultants trained in the theory and practice of organization
development; they understand organizational dynamics and organizational change. These
persons may be members of the organization (internal consultants) or may be from
outside the organization (external consultants). Two goals of OD programs are (i) to
improve the functioning of individuals, teams, and the total organization, and (ii) to impart
the necessary skills and knowledge that will enable organization members continuously
to improve their functioning on their own.

204
 OD programs are long-term, planned, sustained efforts. A leader conforms an
undesirable situation and seeks to change it. The leader establishes contact with an OD
professional, an together they explore whether organization development is relevant to
the risk to hand. If the answer is yes, they enlist others in the organization to help design
and implement the change program. A central feature of OD is widespread participation
and involvement: Get as many people as possible into the act. An overall game plan or
strategy is then developed that includes a series of activities, each intended to achieve
an outcome that moves the organization toward the desired goals. This is the overall OD
model, but in practice OD programs are not so linear and straightforward.
Organization development deals with the gamut of ‘people problems’ in
organizations. Examples would be the following: poor morale, low productivity, poor
quality, interpersonal conflict, intergroup conflict, unclear goals (either corporate
strategy or unit goals), inappropriate leadership styles, poor team performance,
inappropriate organization structure, poorly designed tasks, insufficient attention to
environmental demands, poor customer relation, different parts of the organization
working at cross-purposes, and the like. In short, where individuals, team and
organizations are not realizing their full potential, OD can improve the situation.
Some early definitions of organization development follow:
Organization development is an effort (1) planned, (2) organization-wide, and (3)
managed from the top, to (4) increase organization effectiveness and health through (5)
planned interventions in the organization’s ‘processes’, using behavioural-science
knowledge (Beckhard, 1969).
Organization development (OD) is a response to change, a complex educational
strategy intended to change the beliefs, attitudes, values, and structure of organizations
so that they can better adapt to new technologies, markets, and challenges, and the dizzying
rate of change itself (Bennis, 1969).
OD can be defined as a planned and sustained effort to apply behavioural science
for system improvement, using reflexive, self-analytic methods (Schmuck and Miles,
1971).
Organization development is a long-term effort, led and supported by top
management, to improve or organization’s visioning, empowerment, learning, and
problem-solving process, through an ongoing, collaborative management of organization
culture – with special emphasis on the culture of intact work teams and other team
configurations – utilizing the consultant – facilitator role and the theory and technology
of applied behavioural science, including action research. This is a lengthy definition,
but it includes a number of components we consider essential. We will explain this
definition in some detail.
By long-term effort we mean that organizational change and development take
time-several years in most cases. Ralph Kilmann’s book, Beyond the quick Fix, tells the
story correctly: There is no ‘quick fix’, when it comes to lasting organizational
improvement. In fact, it is more accurate to describe ‘improvement’ as a never-ending
journey of continuous change. A program or initiative moves the organization to a higher
plateau, then another initiative move it to yet a higher plateau of effectiveness.
The phrase led and supported by top management states a virtual imperative: Top
management must lead and actively encourage the change effort. Organizational change
is hard, serious business; it includes pain and setbacks as well as successes. Top
management must initiate the improvement ‘journey’ and be committed to seeing it
through to completion. Most OD programs that fail do so because top management was
ambivalent, lost its commitment, or become distracted with other duties.
By visioning processes we mean those processes through which organization
members develop a visible, coherent, and shared picture of the nature of the products
and services offered by the organization, how those goods will be produced and delivered
to customers, and what the organization and its members can expect from each other.
Visioning means creating a picture of the desired future that includes salient features of
the human side of the organization and then working together to make that picture a
reality.
By empowerment processes we mean those leadership behaviours and human
resource practices that enable organization members to develop and utilize their talents
as fully as possible toward the goals of individual growth and organizational success.
Involving large numbers of people to help build the vision of tomorrow, develop the
strategy for getting there, and making it happen is what we mean by empowerment. For
empowerment to become a fact of life, it must be built into the very fabric of the
organization – its structure, processes, and culture.
Problem-solving processes refer to the ways organization members diagnose
situations, solve problems, make decisions, and take action in relation to problems,
opportunities, and challenges in the organization’s environment and its internal
functioning. Recall that Michael Beer’s definition called for ‘developing new and creative
organizational solutions’. We believe such solutions are enhanced by tapping deeply

206
into the creativity, commitment, vitality, and common purposes of all members of the
organization, in contrast to having only a select few be involved in problem solving. We
further believe that having a compelling vision of a desired future that is widely shared
and endorsed creates the best climate for effective problem solving by all the
organization’s members. Empowerment means involving people in problems and decisions
and letting them be responsible for results.
By ongoing collaborative management of the organization’s culture we mean, first,
that one of the most important things to manage in organizations is the culture, the
prevailing pattern of values, attitudes, beliefs, assumptions, expectations, activities,
interactions, norms, sentiments, and atrtifacts’. And second, managing the culture should
be a collaborative business – widespread participation in creating and managing a culture
that satisfies the wants and needs of individuals at the same time that it fosters the
organization’s purposes is the best way to do this. Collaborative management of the
culture means that everyone, not just a few, has a stake in making the organization work.
Just as visioning, empowerment, learning, and problem-solving processes are
opportunities for collaboration in organization development, so is managing the culture.
By intact work teams and other configurations we recognize the centrality of
teams for accomplishing work in organizations. E think teams are the basic building
blocks of organizations. When teams function well, individuals and the total organization
function well. Team culture can be collaboratively managed to ensure effectiveness.
The phase utilizing the consultant-facilitator role conveys our belief that leaders
can benefit from seeking the assistance of professional help in planning and implementing
OD initiatives. In the early phases, at least, it is desirable to have the services of a third-
party consultant-facilitator. The third-party role is very powerful: that person is typically
seen as bringing objectively, neutrality and expertise to the situation. The third party
also is not captive to the culture of the unit undertaking the program. This does not
mean that the third party cannot be a member of the organization; rather, it means that he
or she should not be a member of the particular unit that is initiating the OD effort.
By the theory and technology of applied behavioural science we-mean insights
from the sciences dedicated to understanding people in organizations, how they function
and how they can function better. OD applies knowledge and theory.c
15.3 CHARACTERISTICS OF ORGANIZATION DEVELOPMENT
The primary distinguishing characteristics of organization development:
1. OD focuses on culture and processes.
2. Specifically, OD encourages collaboration between organization leaders and
members in managing culture and processes.
3. Teams of all kinds are particularly important for task accomplishment and are targets
for OD activities.
4. OD focuses on the human and social side of the organization primarily, and in so
doing, also intervenes in the technological and structural sides.
5. Participation and involvement in problem solving and decision making by all levels
of the organization are hallmarks of OD.
6. OD focuses on total system change and views organizations as complex social
system.
7. OD practitioners are facilitators, collaborators, and co-learners with the client
system.
8. An overarching goal is to make the client system able to solve its problems on its
own by teaching the skills and knowledge of continuous learning through self-
analytical methods. OD views organization improvement as an ongoing process in
the context of a constantly changing environment.
9. OD relies on an action research model with extensive participation by client system
members.
10. OD takes a developmental view that seeks the betterment of both individuals and
the organization. Attempting to create ‘win-win’ solutions is standard practice in
OD programs.

15.4 ORGANIZATION DEVELOPMENT VALUES, ASSUMPTIONS

AND BELIEFS
A set of values, assumptions, and beliefs constitutes an integral part of organization
development, shaping the goal and methods of the field and distinguishing OD from
other improvement strategies. Most of these beliefs were formulated early in the
development of the field, and they continue to evolve as the field itself evolves. A belief
is a proposition about how the world works that the individual aspects as true; it is a

208
cognitive fact for the person. Values are also beliefs, and are defined as: ‘Beliefs about
what is a desirable or a ‘good’ (eg: free speech) and what is an undesirable or a ‘bad’ (eg:
dishonesty) ‘. Assumptions are beliefs that are regarded as so valuable and obviously
correct that they are taken for granted and rarely examined or questioned. Thus, values,
assumptions, and beliefs are all cognitive facts or propositions, with values being beliefs
about good and bad, and assumptions being strongly held, relatively unexamined beliefs
accepted as the truth. Values, assumptions, and beliefs provide structure and stability
for people as they attempt to understand the world around them.
Writing in 1969, Warren Bennis proposed that OD practitioners (change agents)
share a set of normative goals based on their humanistic / democratic philosophy. He
listed these normative goals as follows:
1. Improvement in interpersonal competence.
2. A shift in values so that human factors and feelings come to be considered
legitimate.
3. Development of increased understanding between and within working groups in
order to reduce tensions.
4. Development of more effective ‘team management’, that is, the capacity for
functional groups to work more competently.
5. Development of better methods of conflict resolution. Rather than the usual
bureaucratic methods which rely mainly on suppression, compromise, and
unprincipled power, more rational and open methods of conflict resolution are
sought.
6. Development of organic rather than mechanical systems. This is a strong reaction
against the idea of organizations of mechanisms which managers ‘work on’, like-
punishing buttons.
Richard Beckhard. In his 1969 book he described ‘several assumptions about the
nature and functioning of organizations’ held by OD practitioners. Here is his list.
1. The basic building blocks of an organization are groups (teams). Therefore, the
basic units of change are groups, not individuals.
2. An always relevant change goal is the reduction of inappropriate competition
between parts of the organization and the development of a more collaborative
condition.
3. Decision making in a healthy organization is located where the information sources
are, rather than in a particular role or level of hierarchy.
4. Organizations subunits of organizations, and individuals continuously manage their
affairs against goals. Controls are interim measurements, not the basis of
managerial strategy.
5. One goal of a healthy organization is to develop generally open communication,
mutual trust, and confidence between and across levels.
6. ‘People support what they help create’. People affected by a change must be allowed
active participation and a sense of ownership in the planning and conduct of the
change.
Robert Tannenbaum, listed the values in transition as follows:
 Away from a view of people as essentially bad toward a view of people as basically
good.
 Away from avoidance of negative evaluation of individuals toward confirming them
as human beings.
 Away from a view of individuals as fixed, toward seeing them as being in process.
 Away from resisting and fearing individual differences toward accepting and utilizing
them.
 Away from utilizing an individual primarily with reference to his or her job
description toward viewing an individual as a whole person.
 Away from walling of the expression of feelings toward making possible both
appropriate expression and effective use.
 Away from marksmanship and game playing toward authentic behaviour.
 Away from use of status for maintaining power and personal prestige toward use of
status for organizationally relevant purposes.
 Away from avoidance of risk taking toward willingness to risk.
 Away from a view of process work as being unproductive effort toward seeing it as
essential to effective risk accomplishment.
 Away from primary emphasis of competition toward a much greater emphasis on
collaboration.

210
 Beliefs such as trust and respect for the individual, the legitimacy of feelings,
open communication, decentralized decision making, participation and contribution by
all organization members, collaboration and contribution by all organization members,
collaboration and cooperation, appropriate uses of power, authentic interpersonal
relations, and so forth were seldom espoused and rarely implemented in the vast majority
of organizations at that time. Therefore, the humanistic values prompted a search for
better ways to run organizations and develop the people in them.

15.5 IMPLICATION OF ORGANIZATION DEVELOPMENT VALUES

AND ASSUMPTIONS
Implications for Dealing with Individuals. Two basic assumptions about
individuals in organizations pervade organization development. The first assumption is
that most individuals have drives toward personal growth and development if provided an
environment that is both supportive and challenging. Most people want to develop their
potential. The second assumption is that most people desire to make, and are capable of
making, a higher level of contribution to the at attainment of organization goals than
most organizational environments permit. A tremendous amount of constructive energy
can be tapped if organizations realize and act on these assumptions. The people doing
the work are generally experts on how to do it – and how to do it better. The implications
of these two assumptions are straightforward: Ask, listen, support, challenge, encourage
risk taking, permit failure, remove obstacles and barriers, give autonomy, give
responsibility, set high standards, and reward success.
Implications for Dealing with Groups. Several assumptions relate to the
importance of work teams and the collaborative management of team culture. First, one
of the most psychologically relative reference groups for most people is the work group,
including peers and boss. What occurs in the work group, at both the formal and informal
levels, greatly influences feelings of satisfaction and competence. Second, most people
wish to be accepted and to interact cooperatively with at least one small reference group,
and usually with more than one group, such as a work group, the family, a church or club
group, and so on. Third, most people are capable of making greater contributions to a
group’s effectiveness and development. Implications of these assumptions are several.
Let teams flourish because they are often the best way to get work done and, in addition,
are the best way to satisfy social and emotional needs at work. Also, leaders should
invent in groups: Invest the time required for group development, invest training time
and money to increase group members’ skills, invest energy and intelligence and creating
a positive climate. It is especially important that leaders adopt a team leadership style,
not a one-on-one leadership style. To do this, leaders need to give important work to
team, not individuals.
Another assumptions is that the formal leader cannot perform all the leadership
and maintenance functions required for a group to optimize its effectiveness. Hence,
group members should assist the leader in performing the multiple roles required receive
training in group effectiveness skills such as group problem solving and decision making,
conflict management, facilitation, and interpersonal communication. And since
suppressed feelings and attitudes adversely affect problem solving, personal growth,
and job satisfaction, group members should be encouraged to learn to deal effectively
with positive and negative feelings. This too is a trainable skill. Dealing appropriately
with feelings and attitudes increases the level of interpersonal trust, support, and
cooperation within the group.
Finally, it is assumed that many attitudinal and motivational problems in
organizations require interactive and transactional solutions. Such problems have the
greatest chance of constructive solution if all parties in the system alter their mutual
relationships. The question becomes not how A can get B to perform better, but how A
and B can work together to modify their interactions toward the goal of B becoming
more effective and A and B becoming their mutually effective. Frequently the challenge
is broader, including how persons C, D and E can support and assist in these changes. By
implication, this requires a shift in perspective from viewing problems as ‘within the
problem person’ to viewing problems and solutions as transactional and as embedded in
a system.
Implication for Designing and Running Organizations. It is becoming
increasingly clear that traditional hierarchical forms of organization – fairly steep
pyramid, emphasis on top-down directives, grouping by specialized function, adherence
to the chain of command, formalized cross-functional communication, and so on – are
obsolete in terms of meeting the demand of the marketplace. The clear implication is
that experimenting with new organization structures and new forms of authority is
imperative. In addition, there is growing awareness that ‘win-lose’ organizational
situations, in which one side wins and the other side loses, are dysfunctional over the
long run and need to be replaced by ‘win-win’ situations. Creating cooperative
organizational dynamics rather than competitive ones is a primary task of the
organization’s leader.

212
 A key assumption in organization development is that the needs and aspirations of
human beings are the reasons for organized effort in society. This suggests it is good to
have a developmental outlook and seek opportunities in which people can experience
personal and professional growth. This orientation creates a self-fulfilling prophecy.
The belief that people are important tends to result in their being important. The belief
that people can grow and develop in terms of personal and organizational competency
tends to produce that result. By implication, an optimistic, developmental set of
assumptions about people is likely to reap rewards beneficial to both the organization
and its members.
Finally, it is possible to create organizations that on the one hand are humane,
developmental, and empowering, and on the other hand are high performing in terms
productivity, quality of output, and profitability. Evidence for this assumption comes
from numerous examples where ‘putting people first’ paid off handsomely in profits
and performance. The implication is that people are an organization’s most important
resource; they are the source of productivity and profits and should be treated with care.
Values that respondents believe are associated with OD work today, the top five
values considered most important were (1) increasing effectiveness and efficiency, (2)
creating openness in communication, (3) empowering employees to act, (4) enhancing
productivity, and (5) promoting organizational participation.

15.6 ORGANISATION DEVELOPMENT PROCESS

Organization development process is a complex and long process. Organization
development process caters to move the organization from present position to better
future position. The process consists of five steps:
1. Data collection: Surveys may be made to determine organizational climate
and behavioral problems. The consultant usually meets with groups away for work to
develop information from questions such as these:
 What kinds of conditions contribute most to your job effectiveness?
 What kinds of conditions interfere with your job effectiveness?
 What would you most like to change in the way this organization operates?
 The by-products of data collection include the identification of performance gaps
deficiencies in the way the organization operates and abseiling in the way the
organization operates and baseline information a portrait of the organizations
 current level of operations for later comparison with the effects of OD
(Organization Development) efforts?
2. Data feedback and confrontation: Work groups are assigned to review the
data collected, to medicate areas of disagreement, and to establish priorities for change.
3. Action planning and problem solving: Groups use the data to develop specific
recommendations for change. Discussion focuses on actual problems in the organization.
Plans are specific, including who is responsible and when the action should be completed.
4. Use of intentions: Once the action planning is completed, the consultant helps
the participants select and use appropriate OD interventions, Depending on the nature of
the key problems; the intervention may focus on individuals, teams. Interdepartmental
relating or the total organization.
5. Evaluation and follow-up: The consultant helps the organization evaluate the
results of tits OD efforts and develop additional programs in areas where additional
results are needed.
15.7 COMPONENTS OF ORGANISATION DEVELOPMENT
Organisation Development Programs have 3 Basic Components
1. Diagnosis
2. Action
3. Program Management
Diagnosis Includes (Considers Systems , subunits and processes)
1. Strength of System
2. Problem Areas
3. Unrealised Opportunities
4. Gap between Vision and Current Status
Action Plan Includes OD Interventions and applies to
1. Correction of Problem
2. Seizing Opportunities
3. Maintaining of Strength
4. Application of Organization Development Intereventions to Special Groups
and Organization wide 5. Inter-group or Individual

214
Program management Includes
1. Review Results of Action
2. Consider New Problems ( if Those on hand are resolved or initiate action if
unresolved)
3. Redefine Problems and Initiate Action
15.8 NOTES
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
.................................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
.................................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
.................................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
.................................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
.................................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
.................................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
.................................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
.................................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
.................................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................

216
15.9 SUMMARY
The nature of organization development and its central themes were examined to
establish a foundation for understanding the field. OD is a strategy for change that
intervenes in the human and social processes of organizations.
The various definitions clarify the distinctive features of the field of OD and
suggest why it is such a powerful strategy. The participative, collaborative, problem-
focused nature of OD marshals the experience and expertise of organization members
as they work on their most important problems and opportunities in ways designed to
lead to successful outcomes.
The field of organization development rests on a foundation of values and
assumptions about people organizations. These beliefs help to define what OD is and
guide its implementation. This discussion was intended to provide you with an
appreciation of OD values and explain where they came from. These OD values were
considered revolutionary in the 1950s but are widely accepted today.
The process consists of five steps which include Data collection, Data feedback
and confrontation, action planning and problem solving, Use of intentions,
Evaluation and follow-up. The Components of OD include Diagnosis, Action and
Program Management.

15.10 KEY WORDS

Organization Development, Values, Assumptions, Beliefs, Organisation
Development Process, Diagnosis, Action, Program Management.

15.11 SELF-ASSESSMENT QUESTIONS

1. Explain the importance of the field of organization Development and its need.
2. Define Organization Development and explain its meaning.
3. List the characteristics of Organization Development.
4. Briefly state the values, assumptions of Belief of Organization Development.
5. What are the implication of Organization Development values of assumptions for
dealing with individuals, groups and organizations?
6. Explain the Organization Development Process.
7. What are the components of Organization Development?
15.12 REFERENCES
1. Pareek, V and Rao T.V. Designing and Managing Human Resource Systems, New
Delhi: Oxford and IBH Publishing Co., 1981.
2. Rao T.V Pereira D.F. Recent Experiences in Human Resource Development, New
Delhi: Oxford and IBH Publishing Co.,1986
3. Ulrich D – Human Resource Champions, Harvard Business School Press – 1997
4. Kalpana R. – Balance Score Card – Harvard Business Review, January-February.
(1992)

218
UNIT-16 : CHANGE MANAGEMENT

Structure:
16.0 Objectives
16.1 Introduction
16.2 Concepts
16.3 Reasons for change
16.4 Change models
16.5 Resistance to change
16.6 Overcoming resistance to change
16.7 Change agent
16.8 Notes
16.9 Summary
16.10 Key words
16.11 Self-Assessment Questions
16.12 References
16.0 OBJECTIVES
After reading this unit, you should be able to;
• Appreciate the importance and role of change management
• Identify the reasons for Change
• Explain the Mechanisms involved in the three-stage model of the change process.
• List the different phases of consulting process of seven-stage model.
• Discuss the process involved in action research.
• Explain why employees resist change & means to overcome resistance
• Get an insight into the role of change agents

16.1 INTRODUCTION
The changes affecting today’s managers are the rising importance of globalization,
increased women in management, the value of adaptability in moving between jobs and
organizations, the need to keep skills current. Managing today is about managing in times
of rapid change. The Economy, The Organisation and The Employee are all going through
change. Globalization has increased competition. Rivals can now come from the other
side of the world as well as the other side of town, so organizations must be flexible and
responsive if they are to survive. Globalization also creates tremendously expanded
opportunities for organizations to offer their products and services worldwide. The
first wave was agriculture (up to the 1890s). The second was industrialization (about
1900 to the 1960s). The third wave is information technology (beginning in the 1970s).
Today, agriculture represents less than 5 percent of employment in industrialized
countries. Meanwhile, the information age has significantly reduced low-skilled, blue-
collar jobs in manufacturing, but it has created abundant opportunities for educated and
skilled technical specialists, professionals, and other knowledge workers. Organizations
externalize risk is through subcontracting out work, licensing products to others, and
forming joint partnerships. The key elements in total quality management are intense
focus on the customer concern for continual improvement in the quality of everything
the organization does, accurate measurement, and empowerment of employees.
Organizations are reengineering work processes in order to maintain competitiveness.
New technologies can bring about dramatic improvements in productivity. Reengineering
encompasses looking at all work processes from scratch. It offers opportunities for
improvements of far greater magnitude than the traditional approach of incremental

220
change. The contingent workforce includes temporaries, part-timers, consultants,
contract workers, and others who are employed on a nonpermanent basis. The bimodal
workforce represents low-skilled workers earning little above minimum wage and high-
skilled professional, technical, and knowledge workers who earn solid middle-class
wages. The low-skilled workers not only earn low wages, but they have little opportunity
to improve their economic status, have restricted mobility, and have weak job security.
The loyalty-for-job-security arrangement has been irrevocably broken. Employers need
flexibility today, and long-term job security is inconsistent with that objective. As a
result, employees are increasingly placing loyalty to their work group and to their
profession ahead of loyalty to their employer.

16.2 CONCEPTS
To make or become different, give or begin to have a different form
Dissatisfaction with the old and belief in the new
Aspects of organisational change:
 what to change or the content of change
 how to change or the process of change

16.3 REASONS FOR CHANGE

The Drivers of change which have resulted in organizations taking strategic
initiatives in response to global competition are:
 cost effectiveness
 quality
 customer responsiveness & speed to market
 technology (R&D – fixed costs)
 skill shortages (location free organisation structures)
 information technology
Further, Major changes reshaping the economy are: Globalization,
Technological upheavals, especially in the areas of computers, telecommunications, and
information, Growth and decline among job sectors, Cultural diversity, Changing societal
expectations, Expanding interest in entrepreneurship, Being more fickle, More-
demanding customers, Privatization of government businesses.
 Further the New Organisations are characterised by Flexibility and
Temporariness, Externalization of Risk, Workforce Diversity, Total Quality Management,
Downsizing, Reengineering, Skill Shortages, Playing to Strengths: Core Competencies,
Empowering Employees, Organizing Around Teams, Dejobbing and the Loss of Traditional
Job Security, Flexible Compensation, Social Responsibility and Ethics
The New Employee further faces the challenges of the Bimodal Split in workforce
as low skilled and high skilled workers, Impermanence, Self-directed careers,
expectations of multiple skills, being a team player, Continual retraining, Coping with
alienation and stress.
All of the above reasons have made it imperative for organizations to find new
ways of managing while adapting to the changes.

16.4 CHANGE MODELS

Organization development is planned change in an organizational context. The
development of models of planned change facilitated the development of OD Model and
theories depict, in words or pictures, the important features of some phenomenon,
describe those features as variables, and specify the relationships between the variables.
Planned change theories are rather rudimentary as far as explaining relationships between
variables, but pretty good in terms of identifying the important variables involved in
change. Several recent theories show great promise for increasing our understanding of
what happens and how it happens in planned change situation. Our purpose here is to
provide a framework for thinking about planned change by exploring several models
from the literature.
Kurt Lewin’s Three – Stage Model
Kurt Lewin introduced two ideas about change that have been very influential
since the 1940s. The first idea states that what is occurring at any point in time is a
resultant in a field of opposing forces. The states quo-whatever is happening right now
– is the result of forces pushing in opposing directions. For example, the production
level of a manufacturing plant can be thought of as a resultant equilibrium point in a field
of forces, with some forces pushing toward higher levels of production and some forces
pushing toward lowers levels of production. The production level tends to remain fairly
constant because the field of forces remains fairly constant. Likewise, the level of
morale in that plant can be thought of as a resultant equilibrium point. Although morale
may get a little better or a little worse on occasion, it generally hovers around some

222
equilibrium point that is the resultant in a field of forces, some forces pushing toward
higher morale, and some pushing toward lower morale. With a technique called the
force-field analysis, one can identify the major forces that make up the field of forces
and then develop action plans for moving the equilibrium point in one direction or the
other. This concept that the status quo is the result of a field of forces is a powerful one
for thinking about the dynamics of change situations.
Lewin’s second idea was a model of the change process itself. He suggested that
change is a three-stage process: unfreezing the old behaviour (or situation), moving to a
new level of behaviour, and freezing the behaviour at the new level. Change entails moving
from one equilibrium point to another equilibrium point. Take the example of a man
who is a cigarette smoker who wants to quit. The three-stage model says he must first
unfreeze the old behaviour of smoking, that is, believe that cigarette smoking is bad for
him, and that he should stop smoking. Next he must move, that is, change his behaviour
from being a smoker to being a non-smoker. Finally, the non-smoking behaviour must
become permanent so that not smoking becomes the new equilibrium point. To do this a
new field of forces must be established to support the new behaviour.
Table 1. A Three-stage Model of the Change Process

Stage 1 Unfreezing: Creating motivating and readiness to change through

1. Disconfirmation or lack of confirmation
2. Creation of guilt or anxiety
3. Provision of psychological safety
Stage 2 Changing through Cognitive Restricting: Helping the client to see
things, judge things feel things, and react to things differently based
on a new point of view obtained through
a. Identifying with a new role model, mentor, etc.
b. Scanning the environment for new relevant information.
Stage 3 Refreezing: Helping the client to integrate the new point of view
into
a. The total personality and self-concept
b. Significant relationships
 Lewin’s three-stage model is a powerful cognitive tool for understanding
change situations. Edgar Schein took this excellent idea and improved it by specifying
the psychological mechanisms involved in each stage as shown in Table 1.
In Stage 1, unfreezing, disconfirmation creates pain and discomfort, which
cause guilt and anxiety, which motivate the person to change. But unless the person
feels comfortable with dropping the old behaviours and acquiring new ones, change will
not occur. That is, the person must experience a sense of psychological safety in order
to replace the old behaviours with new behaviours.
In Stage 2, moving, the person undergoes cognitive restructuring. The person
needs information and evidence to show that the change is desirable and possible. This
is gained by modeling the behaviour of an exemplar or by gathering relevant information
from the environment.
The primary task in Stage 3, refreezing, is to integrate the new behaviours
into the person’s personality and attitudes. That is, stabilizing the changes requires testing
to see if they fit – fit with the individual, and fit with the individual’s social surroundings.
The phrase significant relationships refers to important people in the person’s social
environment – do these significant others accept and approve of the changes? We believe
Lewin’s model and Schein’s extension of the model provide excellent ways to think about
change and the planning of change.
Seven-Stage Model
Another modification of Lewin’s model was proposed by Ronald Lippitt, Jeanne
Watson, and Bruce Westley who expanded the three-stage model into a seven-stage model
representing the consulting process. Their seven stage are as follows:
Phase 1: The development of a need for change. This phase corresponds to Lewin’s
unfreezing phase.
Phase 2: The establishment of a change relationship in this phase a client system in
need of help and a change agent from outside the system establish a working
relationship with each other.
Phase 3: The clarification or diagnosis of the client system’s problem.
Phase 4: The examination of alternative routes and goal; establishing goals and intentions
of action.

224
Phase 5: The transformation of intentions into actual change efforts Phase 3, 4 and 5
correspond to Lewin’s moving phase.
Phase 6: The generalization and stabilization of change. This corresponds to Lewin’s
refreezing phase.
Phase 7: Achieving a terminal relationship, that is, terminating the client-consultant
relationship.
The seven-stage model by Lippitt, Watson, and Westley lays out the logical steps
involved in OD consulting, most practitioners know this model. Similar models have
been developed by Kolb and Frohman and by Burke. Thee ‘road maps’ are useful for
thinking about change.
Comprehensive Change Model
A comprehensive change model by Ralph Kilmann specifies the critical leverage
points to manipulate for change to occur. We will briefly describe the ‘total system
change’ model presented in his book, Managing Beyond the Quick Fix. There are five
sequential stages in this model: (i) initiating the program; (ii) diagnosing the problems;
(iii) scheduling the ‘tracks’, (iv) implementing the ‘tracks’, and (v) evaluating the results.
Change programs take from one to five years to complete.
Initiating the program entails securing commitment and support from top
management. Diagnosing the problems entails conducting a thorough analysis of the
problems and opportunities facing the organization. These problems and opportunities
will be the targets of later interventions. Scheduling and implementing the ‘tracks’ entail
intervening in five critical leverage points (called ‘tracks’) found in all organizations,
that, when functioning properly, cause the organization to be successful. Kilmann’s five
tracks are: (i) the culture track; (ii) the management skills track; (iii) the team-building
track; (iv) the strategy-structure track; and (v) the reward system track. Interventions
include training programs, problem-solving sessions, critique of current practices and
procedures, and so forth.
Action Research Model
The action research model focuses on planned change as a cyclical process in
which initial research about the organization provides information to guide subsequent
guide further action, and so on. This interactive cycle of research and action involves
considerable collaboration among organization members and OD parishioners. It places
heavy emphasis on data gathering and diagnosis prior to action planning and
implementation, as well careful evaluation of results after action is taken.
 Action research is traditionally aimed both at helping specific organizations to
implement planned change and at developing more general knowledge that can be applied
to other settings. Although action research was originally developed to have this dual
focus on change and knowledge. It has been adapted to OD efforts in which the major
emphasis is on planned change. Fig. 4.1 shows the cyclical phases of planned change as
defined by the original action research model. There are eight main steps.
1. Problem Identification: This stage usually begins when a key executive in the
organization or someone with power and influence senses that the organization has one
or more problems that might be solved with the help of an OD practitioner.
2. Consultation with a behavioural science expert: During the initial contact, the
OD practitioner and the client carefully asses each other. The practitioner has his or her
own normative, developmental theory or frame of reference and must be conscious of
those assumptions and values. Sharing them with the client from the beginning establishes
an open and collaborative atmosphere.
3. Data gathering and preliminary diagnosis: This step is usually completed by
the OD practitioner, often in conjunction with organization members. It involves gathering
appropriate information and analyzing it to determine the underlying causes of
organizational problems. The four basic methods of gathering data are interviews, process
observation, questionnaires, and organizational performance data (unfortunately, often
overlooked). One approach to diagnosis begins with observation, proceeds to a semi-
structured interview, and concludes with a questionnaire to measure precisely the
problems identified by the earlier steps. When gathering diagnostic information, OD
practitioners may influence members from whom them are collecting data. In OD, ‘every
action on the part of the … consultant constitutes an intervention’ that will have some
effect on the organization.

226
 (A) Lewin’s Change (B) Action Research (C) Contemporary
Model Model Action Research
Unfreezing Problem Identification Choose Positive
Subjects

Consultation with
Behavioral Science Expert Collect Positive Stories
with Broad Participation

Data Gathering and

Preliminary Diagnosis
Examine Data and
Develop Possibility
Feedback to Key Client or Propositions
Group
Movement

Joint Diagnosis of Develop a Vision with

Problem Broad Participation

Joint Action Planning

Develop Action Plans

Action

Evaluate
Refreezing Data Gathering after
Action

Fig. 4.1: Comparison of Planned change Models

 4. Feedback to key client or group: Because action research is a collaborative
activity, the diagnostic data are fed back to the client, usually in a group or work-team
meeting. The feedback step, in which members are given the information gathered by
the OD practitioner, helps them determine the strengths and weaknesses of the
organization or the department under study. The consultant provides the client with all
relevant and useful involves consideration of privacy and ethics as well as judgment
about whether the group is ready for the information or if the information would make
the client overly defensive.
5. Joint diagnosis of the problem: At this point, members discus the feedback
and explore with the OD practitioner whether they want to work on identified problems.
A close interrelationship exists among data gathering feedback, and diagnosis because
the consultant summarizes the basic data from the client members and presents the data
to them for validation and further diagnosis. An important point to remember, as Schien
suggests, is that the action research process is very different from the doctor-patient
model, in which the consultant comes in, makes a diagnosis, and prescribes a solution.
Schein notes that the failure to establish a common frame of reference in the client-
consultant relationship may lead to a faulty diagnosis or to a communication gap whereby
the client is sometimes ‘unwilling to believe the diagnosis or accept the prescription.
‘He believes’ mot companies have drawers full of reports by consultants, each loaded
with diagnoses and recommendations which are either not understood or not accepted b
the ‘patient’.
6. Joint action planning: Next, the OD practitioner and the client members jointly
agree on further actions to be taken. This is the beginning of the moving process
(Described in Lewin’s change model), as the origination decides how best to reach a
different quasi-stationary equilibrium. At this stage, the specific action to be taken
depends on the culture, technology, and environment of the organization; the diagnosis
of the problem; and the time and expense of the invention.
7. Action: this stage involves the actual change from one organizational stage to
another. It may include installing new methods and procedures, reorganizing structures
and work deigns, and reinforcing new behaviours. Such actions typically cannot be
implemented immediately but require a transition period as the organization moves from
the present to a desired future state.
8. Data gathering after action: Because action research is a cyclical process,
data must also be gathered after the action has been taken to measure and determine the

228
effects of the action and to feed the results back to the organization. This, in turn, may
lead to rediagnosis and new action.

16.5 RESISTANCE TO CHANGE

A. People Don’t Embrace Change.
1. One of the best-documented findings from studies of individual and
organizational behavior is that organizations and their members resist change.
a) Resistance is positive. It provides a degree of stability and predictability within
organizations.
b) But there is a serious downside to resistance to change. It hinders adaptation and
progress.
2. Organizations that have historically experienced lengthy periods of success
tend to be particularly resistant to change.
3. Resistance can be overt, implicit, immediate, or deferred.
a) It is easiest for management to deal with overt and immediate resistance.
b) The greater challenge is managing resistance that is implicit or deferred.
c) Similarly, deferred actions cloud the link between the source of the resistance and
the reaction to it. A change may produce what appears to be only a minimal reaction
at the time it is initiated, but then resistance surfaces weeks, months, or even years
later.
4. Sources of resistance—individual and organizational.
B. Individual Resistance
1. Individual sources of resistance to change reside in basic human characteristics such
as perceptions, personalities, and needs.
2. Five reasons why individuals may resist change.
3. Habit.
a) To cope with complexity, we all rely on habits, or programmed responses.
b) But when confronted with change these accustomed ways become a source of
resistance.
4. Security.
a) People with a high need for security are likely to resist change because it threatens
their feeling of safety.
5. Economic factors.
a) Another source of individual resistance is concern that changes will lower one’s
income.
6. Fear of the unknown.
a) Changes substitute ambiguity and uncertainty for the known.
b) Employees in organizations hold the same dislike for uncertainty.
7. Selective information processing.
a) Individuals are guilty of selectively processing information in order to keep their
perceptions intact. They hear what they want to hear. They ignore information that
challenges the world they have created.
C. Organizational Resistance
1. Organizations are characterized by inertia. They actively resist change.
2. Six major sources of organizational resistance have been identified.
3. Structural inertia.
a) Organizations have built-in mechanisms to produce stability—the selection process,
training, and formalization.
b) When an organization is confronted with change, this structural inertia acts as a
counterbalance to sustain stability.
4. Limited focus of change.
a) Organizations are made up of interdependent subsystems. You can’t change one
without affecting the others. So limited changes in subsystems tend to get nullified
by the larger system.
5. Group inertia.
a) Even if individuals want to change their behavior, group norms may act as a
constraint.
6. Threat to expertise.
a) Changes in organizational patterns may threaten the expertise of specialized groups.
7. Threat to established power relationships.

230
a) Any redistribution of decision-making authority can threaten long-established power
relationships within the organization. The introduction of participative decision
making or self-managed work teams is the kind of change that is often seen as
threatening by supervisors and middle managers.
8. Threat to established resource allocations.
a) Those groups in the organization that control sizable resources often see change
as a threat. Those that most benefit from the current allocation of resources often
feel threatened by changes that may affect future allocations.

16.6 OVERCOMING RESISTANCE TO CHANGE

Overcoming Resistance to Change
1. What can managers do to overcome the resistance that transformational change
creates?
a) Assessing the climate for change.
b) One major factor determining the success of change is the readiness to change.
2. Seventeen key elements to successful change. By paying attention to the
questions addressed below organisations can to some extent overcome resistance to
change.
a) Is the sponsor of change high up enough to have power to effectively deal with
resistance?
b) Is day-to-day leadership supportive of the change and committed to it?
c) Is there a strong sense of urgency from senior management about the need for
change, and is it shared by the rest of the organization?
d) Does management have a clear vision of how the future will look different from
the present?
e) Are there objective measures in place to evaluate the change effort, and are reward
systems explicitly designed to reinforce them?
f) Is the specific change effort consistent with other changes going on within the
organization?
g) Are functional managers willing to sacrifice their personal self-interest for the
good of the organization as a whole?
h) Does management pride itself on closely monitoring changes and actions taken by
competitors?
i) Is the importance of the customer and a knowledge of customer needs well accepted
by everyone in the work force?
j) Are managers and employees rewarded for taking risks, being innovative, and looking
for new solutions?
k) Is the organization structure flexible?
l) Are communication channels open both downward and upward?
m) Is the organization’s hierarchy relatively flat?
n) Has the organization successfully implemented major changes in the recent past?
o) Are employee satisfaction and trust in management high?
p) Is there a high degree of cross-boundary interactions and cooperation between units
in the organization?
q) Are decisions made quickly, taking into account a wide variety of suggestions?

16.7 CHANGE AGENT

Changes Within an Organization Need a Catalyst. The Catalyst is the change agent.
In many organisations, consultants play the role of change agents. However, the following
is also true.
1. Many managers play the role of change agent.
2. Managers need to implement quantum change and reinvent their organizations.
3. Managers who can effectively play the role of change agent are in high demand and
can accelerate their ascendancy into executive positions.
4. For major change programs, senior management frequently looks outside to find
people who have experience in promoting change and who have no vested interest
in the current system.
a) Those individuals who can exhibit visionary leadership and charismatic qualities
additionally have characteristics that organizations associate with successful change
agents.

232
The nature of the consultant’s expertise
We believe it is possible, and desirable, for the OD consultant to be an expert in
the sense of being competent to present a range of options open to the client, but any
extensive reliance on the traditional mode of consulting, that is, giving substantive advice,
will tend to negate the OD consultant’s effectiveness. The OD consultant needs to resist
the temptation of playing the content expert and will need to clarify his or her role with
the client when this becomes an issue.
Moving into the expert or advocate role. The consultant wishes to maintain the
relationship for a variety of reasons – professional, financial, or self-esteem – and
naturally wants to be perceived as competent. The consultant, therefore, gets trapped
into preparing reports or giving substantive advice, which if more than minimal, will
reduce his or her effectiveness.
There are at least four good reasons why the OD consultant should largely stay
out of the expert role. The first is that a major objective of an OD effort is to help the
client system to develop its own resources. The expert role creates a kind of dependency
that typically does not lead to internal skill development.
The second reason is that the expert role almost inevitably requires the consultant
to defend his or her recommendations. With reference to an initial exploratory meeting,
Schein mentions the danger of being ‘seduced into a selling role’ and states that under
such conditions ‘we are no longer exploring the problem’. In short, finding oneself in
the expert role and defending one’s advice tends to negate a collaborative, developmental
approach to improving organizational processes.
A third reason for largely avoiding the expert role has to do with trust. One criterion
for resolving whether to provide confidential reports or advice to top management is
how such an intervention would affect various client groups in the organization and the
consultant’s relationship with them. The OD consultant’s role is a tenuous one at best.
Any impression that the consultant is making recommendations inimical to members of
client groups puts the consultant in the role of an adversary.
A fourth reason has to do with expectations. If the consultant goes very far in the
direction of being an expert on substance in contrast to process, the client is likely to
expect more and more substantive recommendations, thus negating the OD consultant’s
central mission which is to help with process.
 There are exceptions to these reasons. The OD consultant should act in the expert
role on the process used but not on the task. Another exception consists of providing a
range of options open to the client. We believe that the more extensive the OD
consultant’s knowledge of management and organization, the more effective the OD
consultant can be. But there is a difference between being essentially a facilitator-
educator and being essentially an advice giver.
The consultant as a model
Another important issue is whether change agents are willing and able to practice
what they peach. In the area of feelings, for example, the consultant may be advocating
a more open system in which feelings are considered legitimate and their expression
important to effective problem solving and at the same time suppressing his or her own
feelings about what is happening in the client system. In particular, this can be a frequent
problem for the less-experienced practitioner, and it usually has an impact on this person’s
feeling of competency. The more on learns to be in touch with one’s own feelings, the
more spontaneous one can be and the greater the options open for interventions. However,
the client system is not the appropriate ground for working out any problems the
consultant may be currently experiencing. On the other hand, being too aloof emotionally
will tend to minimize the possibilities of helping the client. We are not suggesting that
the OD consultant must be a paragon of virtue rather; we are suggesting that to maximize
one’s effectiveness, it is necessary continuously to practice and develop the effective
behaviours one wishes to instill in the client system.

16.8 NOTES
..............................................................................................................................................
................................................................................................................................................
..............................................................................................................................................
.................................................................................................................................................
..............................................................................................................................................
................................................................................................................................................
..............................................................................................................................................
.................................................................................................................................................
..............................................................................................................................................
................................................................................................................................................

234
..............................................................................................................................................
.................................................................................................................................................
..............................................................................................................................................
................................................................................................................................................
..............................................................................................................................................
.................................................................................................................................................
..............................................................................................................................................
................................................................................................................................................
..............................................................................................................................................
.................................................................................................................................................
..............................................................................................................................................
.................................................................................................................................................
..............................................................................................................................................
................................................................................................................................................
..............................................................................................................................................
.................................................................................................................................................
..............................................................................................................................................
................................................................................................................................................
..............................................................................................................................................
.................................................................................................................................................
..............................................................................................................................................
.................................................................................................................................................
..............................................................................................................................................
................................................................................................................................................
..............................................................................................................................................
.................................................................................................................................................
..............................................................................................................................................
................................................................................................................................................
16.9 SUMMARY
Managing today is about managing in times of rapid change. The Economy, The
Organisation and The Employee are all going through change. Theories of Planned change
describe the activities necessary to modify strategies, structure, and processes to increase
an organization’s effectiveness. Lewin’s change model, the action research model, and
more recent adaptations of action research offer different views of the phases through
which planned change occurs in organizations. Lewin’s change model views planned
change as a three-step process of unfreezing, movement, and refreezing. It provides a
general description of the process of planned change. The action research model focuses
on planned change as a cyclical process involving joint activities between organization
members and OD practitioners. It involves eight sequential steps that overlap and interact
in practice: problem identification, consultation with a behavioural science expert, data
gathering and preliminary diagnosis, feedback to a key client or group, joint diagnosis
of the problem, joint action planning, action, and data gathering after action. The action
research model places heavy emphasis on data gathering and diagnosis prior to action
planning and implementation, and on assessment of results after action is taken. Although
the planned change models describe general stages of how the OD process unfolds, there
are different types of change depending on the situation. Planned change efforts can
vary in terms of the magnitude of the change and the degree to which the client system is
organized. The change agent plays a very critical role in catalyzing change in an
organisation.

16.10 KEY WORDS

Planned Change, Change Drivers, Resistance to Change, Change Agent
16.11 QUESTIONS FOR SELF-ASSESSMENT
1. Discuss in detail Kurt Lewin’s three stage model of the change process.
2. Detail the steps involved in Action Research process.
3. Explain the factors influencing organizational change.
4. Identify the reasons for resistance to change.
5. Describe the role of managers as change agent.

236
16.12 REFERENCES
1. Pareek, V and Rao T.V. Designing and Managing Human Resource Systems, New
Delhi: Oxford and IBH Publishing Co., 1981.
2. Rao T.V Pereira D.F. Recent Experiences in Human Resource Development, New
Delhi: Oxford and IBH Publishing Co.,1986
3. Ulrich D – Human Resource Champions, Harvard Business School Press – 1997
4. Kalpana R. – Balance Score Card – Harvard Business Review, January-February.
(1992)
.
 Higher Education to Everyone Everywhere
G£ÀßvÀ ²PÀët J®èjUÀÆ J¯ÉèqÉ

Prasaranga
Karnataka State Open University
Mukthagangotri, Mysuru
https://ksoumysuru.ac.in/

ISBN:

Management