UNIT – I

Human Resource Development: - Human Resource Development is the framework for

helping employees to develop their personal & organizational skills, knowledge & abilities.
Human Resource Development includes such opportunities as employee training, employee
career development, performance management & development, coaching, mentoring,
organizational development, succession planning, key employee identification etc.
.HRD is organised learning activities arranged within an organization in order to improve
performance & growth for the purpose of improving the job, the individual & the organisation.
.In 1970, Len Nadler published his now – classic book “Developing Human Resources”
in which he coined the term “Human Resource Development”. The term Human Resource
Development provided a conceptual umbrella under which the field began to unify, using the
three fold notion of training, education & development. In 1987, Patricia Mc Lagan proposed
the definition of HRD as “the integrated use of training & development, career development &
organisation development to improve individual effectiveness”
Need: -
1. To improve capabilities.
2. To procure right people.
3. To improve communication system.
4. To improve employee commitment.
5. To have continuous growth.
6. To improve teamwork.
7. To improve problem solving skills.
8. To generate data.
Scope: -
1. Analysing the role that individual perform in various jobs
2. Matching the person with the job.
3. Identifying right person for the right job.
4. Developing proper culture & climate.
5. Managing the performance of the employees.
6. Developing career of individual.
7. Developing equitable reward system.
8. Managing industrial relations.
9. Learning & researching for better knowledge, skill & attitude development.
10. Implementing total quality concept, organizational development etc.
11. Addressing the HR issues like globalisation etc.
12. Concentrating on issues like skill gap etc.
Goals: -
1. Develop individual to realize his / her potential as an individual to maximum effect.
2. Develop the individual’s capabilities to perform his present job better.
3. Develop the capabilities to handle likely future roles.
4. Develop & maintain high motivation level.
5. Strengthen the superior – subordinate relationship.
6. Promote team spirit & inter - team collaboration.
7. Promote the development of a healthy climate.
Importance: -
I. Importance of Training: -
1. Deficiency in performance.
2. New product & processes.
3. New policies.
II. Importance of Education: -
1. Workforce planning.
2. Preparing replacement.
3. Career planning.
III. Importance of Development: -
1. Unforeseen organisation change.
2. Sensitive to new movement.

HRD Functions: -
1. Employee training and development.
2. Career planning and development.
3. Succession planning.
4. Performance appraisal.
5. Employee’s participation in management.
6. Quality circles.
7. Organization change and organization development.
HRD Challenges: -
1. Compliance with Laws and Regulation.
2. Management Changes.
3. Leadership Development.
4. Workforce Training and Development.
5. Adapting to Innovation.
6. Compensation.
7. Understanding Benefits Packages.
8. Recruiting Talented Employees.
9. Retaining Talented Employees.
10. Workplace Diversity.
Relationship with HRM: -
1. HRM starts as a subset of the entire management process of an organization and HRD
starts as a subset of HRM.
2. HRM starts with a wider scope and HRD starts with a narrow scope when compared with
HRM.
3. HRM manages human elements of an organization on longer term basis and after that HRD
focuses on learning experiences on short term basis to bring about the desired behavioral
changes.
4. HRM firstly emphasizes and concentrates on the abilities and attitudes of employees and
HRD secondly emphasizes mainly on training and development of employees.
5. HRM takes decisions on HRD plans and HRD thus depends on the decisions of HRM.
6. HRM at its center has HRD and HRD’s cooperation is important for overall success of HRM.
7. HRM focuses on human needs to satisfy them to motivate the employees to achieve
organizational goals and HRD focuses on upgrading the skills and competencies of employees
in order to improve the performance of employees on the job.
HRD at Micro & Macro levels: - The human is recognised as the most effective input for
maximum output & efficiency of any organisation. Hence the development of competency of
this human input is very necessary for the lasting growth & development of the organisation.
HRD applies to both micro as well as macro issues.
Micro Level: - At micro level, HRD is related with grass – root development in organizations. It
is well received by company’s management as they realized the importance of HRD for
present issues as well as future issue. Generally, HRD at micro level talks about organisations
HR planning, selection, training, performance appraisal, potential appraisal, compensation,
organisational development etc.
Macro Level: - At macro level, HRD is related with development for the nations well being. At
this level, it involves health, skills, capabilities & attitudes of the people, which are more useful
in development of nation as a whole. HRD at macro level is not yet popular as it is at micro
level.
HRD Climate: - HRD Climate is helpful in the fulfillment of committed goals of an individual,
organization and society. It increases the capabilities and efficiency of an individual and is
likely to reflect itself in the long run in the well-being of the individual, reputation of the
institution and ultimately the well-being of the society. However, the nature of efforts and
investments in developing human resources may vary from organization to organization
depending on its need, nature of capabilities the organization wants to build up and the size of
the organization etc.
Elements Needed: -
1. Top to bottom effort.
2. Motivator role of manager and supervisor.
3. Faith up on employees.
4. Free expression of feelings.
5. Feedback.
6. Helpful nature of employees.
7. Supportive personnel management.
8. Encouraging and risk taking experimentation.
9. Discouraging favoritism.
10. Team spirit.
Importance: -
1. Influencing element to have change in HR strategy.
2. Gives time to anticipate opportunities in HR area.
3. Helps to develop strategies, which can turn a threat to opportunity.
4. Forms a basis for aligning the organization strengths to have changes in the environment.
5. Enables the entry of latest national and international HR developments.
Measurement: -
1. Economic conditions.
2. Leadership style.
3. Managerial assumption about human nature.
4. Managerial values and ethos.
5. Organization size.
HRD Climate in India: - Several Indian organizations that were surveyed for their HRD climate
collected the data from 2,673 respondents of 52 organizations revealed that the average
climate exists in an organization. The following are the items for which the average item wise
scores are below 50%.
1. Top management making people to enjoy work.
2. Reward mechanism.
3. Experimenting new methods.
4. Behavioural feedback to employees.
5. SWOT Analysis.
6. Initiative to do own instead of waiting for instructions.
7. Pointing career opportunities.
8. Employee welfare schemes.
The following are the items for which the average item wise scores are above 60%.
1. Top management believes HR as extremely important.
2. People in organization helpful to each other.
3. Promotion decisions based on suitability but not favouritism.
4. Employees learning from training.
5. Employees have chance to express or discuss their feelings with superiors.
HRD Process: - The concept of HRD process should use the following four phases.
1. Need assessment.
2. Design.
3. Implementation.
4. Evaluation.
It is also based up on another eight step process.
1. Recruitment.
2. Selection.
3. Training.
4. Placement.
5. Performance Evaluation.
6. Performance Appraisal.
7. Human Resource Management.
8. Human Resource Development.
Skills and Competencies of HRD Professionals: -
1. Human Resources Knowledge: - Today’s job seekers have access to more information
than ever before. Therefore, the best HR professionals must be prepared to meet these
informed candidates with industry expertise of their own. Understanding how and why
individuals enter and move within an organization is at the core of everything else you will do
in human resources. HR managers who truly add value are always attuned to “the big
picture” of how HR practices relate to a successful business.
2. A Commitment to Ongoing HR Learning: - Today’s business landscape is complex and in
a state of constant flux. The field of HR is dynamic and our ability to process and understand it
needs self-motivation. Growing in your job means being receptive to new ideas, wherever they
may come from. Have you demonstrated a commitment to ongoing learning by taking
advantage of conferences, other colleagues in HR, or graduate studies?
3. Communication Skills in Human Resources: - The primary function of the typical HR
professional’s job involves facilitating discussion between employees and employers. If a
human resources manager can’t communicate clearly they will not be successful. Both oral
and written skills are required to effectively relay information.
4. Critical Thinking Skills: - Critical thinking is in the “sweet spot” of less common/more
desired employed traits, according to an analysis of the skills gap by Bloomberg. HR
professionals, in particular, frequently need to balance complex situations and take their time
to think with a combination set-in-stone processes and outside-the-box thinking.
5. An Ethical Approach for Human Resources: - The importance of ethics as an HR core
competency cannot be overstated. Every day, HR professionals face ethical challenges related
to everything from managing private employee information to protecting the reputation of their
organizations. Adopting an unwavering and unilateral commitment to ethics not only helps
attract top talent while safeguarding your organization, but also fosters a culture of trust and
loyalty.
6. Human Resources Organizational Skills: - HR management is a juggling act. The more
organized you are, the better you’ll be able to stay ahead of what you need to do and have
time for things you would like to do. If you think organization is something you either have or
you don’t, think again. Organization can be honed by understanding where you work, and
doing a few things the same every day to build a routine.
Challenges to HRD Professionals: -
1. 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.
2. 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.
3. Values of behaviour: - 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.
4. 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
5. 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.
6. Knowledge of new practices: - An 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.
7. Environment: - An 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.
Role of HRD Manager: - Role is a series expectation from others as well as from self. The
concept of role is two – sided. It comprises of individuals exhibiting the behaviour & those
individuals to whom the behaviour is being exhibited.
1. Facilitator of learning: - Here the role of HRD manager is to direct the learning situation
through a variety of techniques, methods & strategies.
2. Curriculum Builder: - Here the role of HRD manager is to build a proper curriculum in
relation to subject matter.
3. Instructional Strategies Developer: - When curriculum is built there will be a need for
some specialized instructional strategies to enable it to function.
4. Developer of HRD Personnel: - Trying to create instructor / supervisor from organisation or
from outsiders.
5. Supervisor of HRD Programmes: - Day to day management of HRD programmes &
includes functions like record keeping, feedback on performance etc.
6. Maintainer of Relations: - There are two communities, one the internal community with
whom the HRD personnel should maintain contact like supervisors, managers, office
personnel etc. The other is the external community with whom the HRD personnel should
contact to build the image of the organisation like press releases, seminars, conferences etc.
7. Arranger of Facilities & Finance: - Here role emphasizes not only on arranging resources
but stresses on the ability to make a cost benefit analysis, budgeting & proper utilization of
finances & control over expenditure.
8. Advocate: - The role is to advocate on behalf of the employees regarding the problems
faced by them & offering a solution to the problem. He advices management on how to
implement a decision in an organisation & sometimes advocates the implementation of
developmental strategies in the organisation.
9. Expert: - HRD people on basis of their research, evidence & experience provides
alternatives for implementing various interventions.
10. Stimulator: - HRD people’s role is to explore the situation or problem without knowing a
fixed solution or answer.
HRD Matrix: - HRD matrix shows the interrelationships between HRD instruments,
processes, outcomes and organizational effectiveness.
HRD Instruments: - These include performance appraisal, counselling, role analysis, potential
development, training, communication policies, job rotations, rewards, job
enrichment programmes, etc. These instruments may vary depending on the size of the
organization, the internal environment, the support and commitment of the top
management, the competitive policies etc.
HRD Processes: - The HRD instruments lead to the generation of HRD processes like role
clarity, performance planning, development climate, risk-taking, dynamism in employees. Such
HRD processes should result in more competent, satisfied and committed people that would
make the organization grow by contributing their best to it.
HRD Outcomes: - HRD instruments and processes make people more committed and
satisfied, where they tend to give their best to the organization enthusiastically.
Organizational Effectiveness: - The HRD outcomes influence the organizational
effectiveness, which in turn, depends on a number of variables like environment, technology,
competitors, etc.
UNIT – II
Need: - A need is something that is necessary for organisms to live a healthy life. Needs can
be objective & physical such as food or they can be subjective & psychological such as the
need for self esteem.
Definition: -
1. “A motivating force that compels action for its satisfaction” – General.
Need Assessment: - A process by which an organisation’s HRD needs are identified &
articulated. It identifies,
1. An organizations goals & its effectiveness in reaching these goals.
2. Gaps b/w current skills & the skills needed to perform the job successfully.
3. The set of conditions under which the HRD activity will occur.
4. The need for employee training in the organisation.
Benefits: - Through needs assessment, we try to answer questions like,
1. Need for the needs assessment.
2. Accomplishment of type of learning.
3. Expected changes in the behaviour & performance.
4. Probability of achieving the results.
5. Cost benefit analysis of HRD solutions.
6. Root causes of performance gaps.
Levels of need assessment: -
I. Organizational analysis: - It looks at the effectiveness of the organisation & determines
where training is needed & under what conditions it will be conducted.
Why it is needed: -
a. Ties HRD programs to organizational goals.
b. Strengthens the link b/w profit & HRD actions.
c. Strengthens corporate support for HRD.
d. Makes HRD more of a revenue generator.
e. Not a profit waster.
Sources of Organizational analysis: -
a. Mission statement.
b. HRM Inventory.
c. Skills inventory.
d. Quality of working life indicators.
II. Task analysis: - It provides data about a job or a group of jobs & the knowledge, skills,
attitudes & abilities needed to achieve optimum performance.
How to collect information for a task analysis: -
1. Performance standards.
2. KSA analysis. (Knowledge, Skills & Abilities).
3. Observe the job / sample the work.
4. Perform the job.
5. Job inventory questionnaire.
6. Review literature about the job.
7. Ask questions about the job.
8. Analysis of operating problems.
III. Individual analysis: - It analyses how well the individual employee is doing the job &
determines which employees need training & of what kind.
Sources of individual analysis: -
1. Performance evaluation.
2. Performance problems.
3. Observation.
4. Work samples.
5. Interviews.
6. Questionnaires.
7. Attitude surveys.
8. Training progress charts.
Four steps to conduct a need assessment: -
1. Perform a GAP analysis.
2. Identify priorities & importance.
3. Identify causes of performance problems.
4. Identifying possible solutions & growth opportunities.
Designing HRD Programme: - Before going for designing HRD programme or intervention in
HRD process through needs assessment, type of training required, people required, facilities &
conditions under which programme will be conducted are identified. The main objective of
organisation is to design a suitable HRD programme for people to improve their skills &
knowledge so that they can perform better & provide competitive edge over competitors to the
company.
.Designing of HRD programme is not an easy task. A lot of discussions are requires &
many factors are to be considered. A proper designed programme can contribute in
effectiveness of HRD efforts, otherwise it may be fruitless. Special care is to be taken to serve
the purpose of HRD efforts. HRD programme designing includes the following activities.
1. Setting objectives of programme.
2. Selection of source of trainer.
a. Vendor selection.
b. Vendor background.
c. Vendor philosophy.
d. Vendor experience.
e. Training methods.
f. In – house trainer.
g. Expertise.
h. Time of requirement of training.
i. Cost effectiveness.
j. Size of HRD department.
3. Development of lesson plan – Gilley & Eggland suggested the following points should be
included in lesson plan.
a. Contents to be covered during training.
b. Logical sequence of activities to be performed.
c. Selection of medium of instructions.
d. Selection & development of training exercises.
e. Selection of training methods.
f. Planning & scheduling of each training activity.
g. Planning & development of evaluation process.
4. Selection of training methods.
a. Objectives of training programme.
b. Time & budget.
c. Availability of training facilities.
d. Types of trainees & their preferences.
5. Materials preparation.
6. Preparation of schedule for programme.
7. Registration & enrolment for programme.
Delivery or Implementation of HRD programme: - After HRD needs identification or
assessment & designing of HRD programme, the next step is implementation of HRD
programme. In this step whatever is designed & planned is put in to action. This is an
important function of HRD manager. If it is performed properly the whole process will prove
effective. The responsibility lies on shoulders of trainer or HRD manager. This will include the
following activities.
1. Arrangement of facilities.
2. Arrangement of working conditions.
3. Coordination of training activities.
Evaluation of HRD Programme: - Evaluation is the process in which a particular activity,
systems or a programme is assessed on the basis of its performance. It is being carried out to
know its exact position whether it is doing its work as per planning or not. Evaluation of HRD
programme, information can be collected from concerned parties involved regarding its
programme, study materials, trainer skills, schedule of conducting training & other relevant
information. During evaluation if it is found that particular HRD programme is not working
effectively then it can be stopped or modified as per requirement to make it successful. The
evaluation may improve the image of HRD programme in organisation & top level
management will get information about benefits of HRD programme.
.There is no hard & fast rule when programme evaluation is to be carried out. It may be
conducted during training programme or at the end of the programme. The main objective is to
find out the benefits of it & reaction of the participants. Frequent evaluations also make the
system less effective because in evaluation a lot of time & efforts are required. It should be
decided in advance stage & it should be conducted at regular intervals. For conducting
evaluation process, first research methodology must be decided. It should include the
objectives of evaluation, types of research, sources of data, data collecting methods,
responsibility of data collection & limitations of the study.
.Evaluation of HRD programme is very important & its importance can be judged from
the following advantages.
1. Information is collected about what is happening & it discloses the facts.
2. Identifies the problems faced during training programme.
3. Assess the cost involved in conducting training programme.
4. Finds out who is benefited more or less from the programme.
5. Finds out the participants contribution in the programme.
6. Assess the benefits to the organisation as a whole & its effectiveness.
7. Tries to find out the disturbances or problems in programmes & suggests remedial actions
to make the programmes more effective for future.
UNIT – III
Career: - Career describes an individual’s journey through learning, work & other aspects of
life. It is the progress & actions taken by a person throughout a life time, especially those
related to those persons occupations. It is often composed of the jobs held, titles earned &
work accomplished over a long period of time, rather than just referring to one position.
Elements Needed: -
1. Attitude.
2. Enthusiastic.
3. Ethical.
4. Goal focussed.
5. Listener.
6. Networked.
7. Persistent.
8. Self – aware.
9. Self – confident.
10. Self – discipline.
11. Courageous.
12. Intelligent.
13. Sincere.
Career Development: - Career development consists of activities undertaken by the individual
employees & the organisation to meet career aspirations & job requirements. The most
important requirement of career development is that every employee must accept his or her
responsibility for development.
Activities: -
1. Career needs assessment.
2. Career opportunities.
3. Need – opportunity alignment.
4. Monitoring career moves.
Suggestions: -
1. Creating awareness about strengths & weaknesses.
2. Making employees to believe.
3. Developing appropriate career plans.
4. Providing support systems.
Stages & Models: -
1. Development Stage – Birth to 14 years old.
2. Exploration Stage – 15 years to 24 years.
3. Establishment Stage – 25 years to 44 years.
4. Ageing Stage – 45 years to 60 years.
5. Declination Stage – 60 years to final stage.
Balanced Scorecard: - Balanced Scorecard is a strategy performance management tool – a
semi – standard structured report, supported by design methods & automation tools that can
be used by managers to keep track of the execution of activities by the staff within their control
& to monitor the consequences arising from these actions. This technique is widely adopted in
English speaking western countries. It is the most widely adopted performance management
framework reported in the annual survey of management tools undertaken by Bain & company.
Features: -
1. Internal Management system.
2. Clarity of strategy.
3. Communication plan.
4. Reporting process.
5. Clear objectives.
6. Measurements.
7. Stretch targets.
8. Personal score cards.
9. Strategy – driven budgets.
10. Planning process.
Benefits: -
1. Organizational alignment.
2. Motivation.
3. Evaluation of strategy.
4. Focused workforce.
5. Accountability & Integrity.
6. Vision for the Mission.
7. Effective resource utilization.
8. Commitment & Productivity.
9. Support budget development.
10. Supports in annual planning.
Quality of Wok Life (QWL): - It refers to the level of happiness or dissatisfaction with one’s
career. Those who enjoy their careers are said to have a high quality of work life, while those
who are unhappy are said to have a low quality of work life.
Factors: -
1. Attitude.
2. Environment.
3. Opportunities.
4. Nature of job.
5. People.
6. Stress level.
7. Career prospects.
8. Challenges.
9. Growth & development.
10. Risk involved & reward.
Quality Circles: - A quality circle is a volunteer group composed of workers usually under the
leadership of their supervisor. They are trained to identify, analyse & solve work related
problems & present their solutions to management in order to improve the performance of the
organisation & motivate the work of employees. The term quality circles derive from the
concept of PDCA (Plan, Do, Check, Act) circles developed by Dr.W.Edwards Deming. Quality
Circles are not normally paid a share of Cost benefit of any improvements but usually a
proportion of the savings made is spent on improvements to the work environment. They are
formal groups. They meet at least once a week on company time & are trained by competent
persons (usually designated as facilitators) who may be personnel & industrial relations
specialists trained in human factors and the basic skills of problem identification, information
gathering & analysis, basic statistics & solution generation. Quality circles are generally free to
select any topic they wish other than those related to salary & terms & conditions of work.
Quality Circles will have the advantage of continuity for a life time.
Employee Engagement: - Employee engagement is the emotional connection an employee
experiences that results in a willingness to expend discretionary effort at work. Truly engaged
employees reflect a company's respect for its workforce, which, in turn, can be seen in
employees' job satisfaction and pride of ownership in their work.
Best strategies for employee engagement: -
1. Think “Bottom Up”, not “Top Down”
You don’t build a house starting from the roof and working downwards, do you? Well, the
same goes for companies. After all, your people are the bedrock on which you are founded,
and if you don’t know what it’s thinking, you’ll soon run into trouble.
2. Show them you listen
If a clear issue has been identified, then it should be acted upon. More importantly, it should be
visibly addressed, particularly if you have discussed it with them. Knowing that one’s opinions
are not only listened to but also contribute to change is another way to increase engagement.
Use your internal notice boards to demonstrate what you’ve done in response to what your
employees have said.
3. Share good practice and ideas between teams
There’s nothing better than seeing your ideas and work practices being praised, so ensure that
your employees have the opportunity to share and display their very best work. Peer-to-peer
learning, whether in meetings or via your Talent Development Platform, is a great way to foster
engagement and create or strengthen links between your employees.
4. Have an employee voice
Having a once-a-year satisfaction survey is not enough to gauge how your company is doing.
You also need to facilitate channels where each employee can raise issues and give feedback.
For this, consider using discussion forums where your teams can air issues and get feedback
from their peers and managers.
5. Understand individual learning styles and preferences
If you understand how your employees learn – whether they prefer to work independently or in
groups, for example – you will also find out a lot about how well they work and in which ways
they are more likely to engage with projects.
6. Employ effective group learning strategies
Traditional workplace training sessions are part of working life and a great way to help
everyone engage with new ideas and techniques. However, there is the risk that they can
become somewhat stale, manager-lead exercises. Here’s where the instructor should put
aside their managerial hat, and act instead as a facilitator for action, rather than directing it. Let
the whole team be involved. Challenge employees to step out of their comfort zone, for
example, by making a quieter employee act as a sub team leader.
The 5 Most Successful Employee Engagement Strategies: -
1: Provide a Road Map for Success
Knowing that they have a clearly-defined future is a major factor in whether or not someone
decides to leave an organization to look for new opportunities. This is especially important for
millennials, who change jobs more frequently than previous generations and routinely identify
development opportunities as a key factor in their career decisions. By holding regular career
discussions with employees and asking them where they see themselves in the future,
companies can create plans that help them develop the skills they need to take on additional
responsibility in the future.
2: Recognize Good Work
It’s one thing to show support for employees through development opportunities, but such
measures are only one of the ways that companies can demonstrate how they values
employees. Cheering on successes and highlighting accomplishments might seem like a minor
gesture, but it goes a long way toward showing employees that the work they do matters.
3: Establish Two-Way Communication
No one likes being kept in the dark. Organizations that operate under a veil of secrecy and
keep employees on a strict “need to know” basis tend to struggle with low engagement and
retention rates. People want to know about decisions that affect them, what is expected of
them, and information that may be relevant to their tasks.
4: Provide a Sense of Purpose
For many employees today, especially millennials, it’s not enough to simply show up for work,
perform a task, and collect a paycheck. They want to feel that the work they do matters, that it
has some purpose beyond simply turning a profit. In addition to their own personal
contributions, they want to know that the organization they work for is committed to values and
goals that they share.
5: Be Fair and Realistic
In order for organizations and leaders to retain the respect of their employees, they must treat
them with respect and fairness while also holding themselves to the same standards.
Employees want to know that they will be judged primarily on their performance rather than
factors outside their control. They also expect that rules and procedures are there to be
followed, not discarded at the earliest, inconvenient opportunity. This is especially important for
leaders, who very often set the standard for behavior by example. If employees get the
impression that the rules do not apply to some people, they are more likely to become
disengaged and refuse to hold themselves accountable for their actions.
Management Development: - Since 1950, Management or Executive Development has been
the most prominent area of personnel or human resources management. It is also called
management revolution.
Management development is a systematic process of management training and growth by
which individuals (aspiring to rise on the ladder of management) gain and apply knowledge,
skills, insights, and attitudes to manage managers, workers and work organisations effectively.
Management development, therefore, means any planned, guided or directed activity
undertaken by a manager to help himself become more competent in his present and/or to
consciously prepare himself for assuming higher and more important managerial duties and
responsibilities so that he can claim promotion by merit or competence.
There are two ways to develop as managers:
1. Active and intelligent participation in the formal courses of instructions and management
training programmes.
2. Learning the techniques of management through actual job experiences in a work
environment itself.
Management development programme must be based on three principles:
1. All development is self- development,
2. Development programme should recognise individual differences, and
3. Development programme is a long-range process and a manager cannot be produced
overnight.
FIVE AIMS OF MANAGEMENT DEVELOPMENT IN AN ORGANIZATIONAL SYSTEM:
1. Is to ensure that managers understand what is expected of them.
2. Is to ensure that managers agreeing with the objectives against which their performance will
be measured and the level of competence required in their roles.
3. Is to encourage managers to carry out their personal development plans and also to ensure
that they receive the require training development programmes.
4. Is to identify managers with potential skills, experience e.t.c
5. Is to provide for management succession, creating a system in place to keep this under
review.
Importance / Advantages: -
1. It improves the performance of managers. One of the biggest advantages of
management development is the fact that it helps massively in boosting the performance of
managers at all levels within an organization. Management/executive development programs
exploit the full potentials of managers and enhance their managerial skills in diverse ways
thereby making them more effective. When managers of a company or organization improve
upon their managerial skills, the success of the company or organization is guaranteed.
2. It makes employees loyal. Management development has the tendency of making
employees in management positions to become more loyal to the company or organization
that they work for. The reason this can be possible is because of the fact that since the
employees know that the company or organization has invested a lot of time and money in
developing them, they will also want to show their appreciation to the organization by
remaining loyal and working harder.
3. It solves the problem of shortage of trained managers. It is a fact that getting well-
trained managers to man certain managerial jobs can be quite difficult simply because of the
massive shortage of such professionals. Management/executive development programs are
important because they solve this problem by helping companies and organizations get well-
trained managerial personnel through the training process. In the absence of this, then
organizations would have to keep searching in the labor market in vain for qualified and trained
managerial personnel.
4. It makes managers dynamic and helps them handle changes. Today, the world is
changing faster than ever. For example, the rapid growth of technology means that these days
things are done quite differently from the way they were done some years back. Companies
are aware of the massive changes taking place on a daily basis. Companies are also aware
that if they do not also change their ways of doing things, they are going to be left behind in
this fast-changing world. As a result of this, organizations use management development
programs to improve the skills of their employees in managerial positions so that they can
cope with the numerous changes going on around them. Only when the managers of an
organization are dynamic and are able to handle the rapid technological and social changes
that take place around them will the growth of the entire organization be assured.
5. It helps deal with the issue of the complexity of the management job. There is no doubt
that the jobs of managers or executives can be very complex. Now, if management jobs are
complex in nature, then mangers at all levels in the organization must possess certain
pertinent skills and knowledge in order to enable them to perform their job effectively. This is
where management development programs come in to play. These programs are made in
such a way that they induce behavioral changes in individuals occupying managerial positions
and equip them with the necessary skills and knowledge that they need in order to handle the
complexity of the positions that they find themselves in.
6. It helps managers to handle the complexity of organizations. These days, in the face of
increasing competition, companies are becoming more and more complex in order to increase
productivity and beat their competitors. As a result of this, there is the dire need for managers
to be well-equipped to be able to handle the complex natures of their companies and deal with
the challenges that come along with this.
7. It helps to ensure the success and growth of the organization. Since management
development programs improve the managerial skills of managers, it allows for the effective
management of the entire organization. Since the 1980s, management development has been
identified as one of the key factors in ensuring the economic success of companies and
organizations all over the world. Companies that fail to organize management development
programs for their managers do not thrive as well as those that do. Management/executive
development is so important that not only does it play an instrumental role in ensuring
organizational success, but it also leads in a more broad way to the overall growth of the
economy of a nation.
8. It helps managers to perform their social responsibilities more effectively. Social
responsibility can be said to be the ethical obligations of management to perform certain
actions to benefit society at large. This is very important as it helps companies develop a
positive relationship with the society or community that they find themselves doing business in.
With management development programs, managers begin to recognize their social and
public responsibilities and perform these responsibilities in a way that fosters a positive
relationship between their companies and the society in which they operate.
9. It boosts the morale of the managers. When a company or organization spends its
money and time in sending an employee to management training programs and seminars, it
makes the employee feel that their organization values them and appreciates the work they
are doing for them. This therefore boosts the employee’s morale and makes him or her want to
work better. This ends up making him or her to become more productive than before.
10. It improves the communication skills of the managers. The last but not least
advantage of management development training programs is the fact that they are capable of
improving the communication skill of managers, which is a very important thing for every
organization – whether a business organization or a non-profit making organization. When
managers possess good communication skills, it enables them to communicate more
effectively with their staff towards achieving the goals of their organization and overcoming any
challenges that come their way.
 Management Development versus Organizational Development
Key Management Organizational
Points Development Development
Scope Includes training of executives and Includes all parts of organization
managers only
Nature Only qualitative development takes Both qualitative
place
Method Important methods are case study, Important methods are survey,
discussion, role playing etc feedback etc.
Duration Duration is short term Duration is long term
Macro – Micro It is a micro process It is a macro process
Part It is a part of organizational It is not a part of management
development development
UNIT – IV
Human Capital Development: - It is a measure of the economic value of an employee’s skill
set. It recognises that not all labour is equal & the quality of employees can be improved by
investing in them. It was invented by economist Theodore Schultz in 1960’s to reflect the value
of human capacities. It can be invested in education, training & enhanced benefits that will
lead to an improvement in the quality & level of production.
Evolution: - Evolution is defined as a process of gradual, peaceful, progressive change in the
process. In the mid - age of 1960’s itself the concept of human capital had its origin. It is
because no two workers will have the same type of capability in each & every segment. Many
programs & policies were developed to mange it in a correct manner.
Philosophy: - Its philosophy on corporate learning is that there are at least two separate sets
of learning objectives to meet in every program i.e. the objectives of organisation & the
objectives of each individual learner.
Principles: -
1. Impact on business.
2. Plan to do business outcomes.
3. Target your practices specifically to industry.
4. Align your actions with best practices.
5. Plan ahead to assess results.
6. Planned by HR department.
7. It is a process, not just an event.
8. Don’t do many things limit & prioritize.
9. Create a value chain.
10. Use the outsourcing capabilities.
Human Capital Asset Lifecycle Development: -

HRD Audit: - It means the systematic verification of job analysis & design, recruitment &
selection, orientation & placement, training & development, performance appraisal & job
evaluation, employee & executive remuneration, motivation & morale, participative
management, communication, welfare & social security, safety & health, industrial relations,
trade unionism, disputes & their resolution.
Benefits: -
1. To find proper contribution of HR.
2. Development of image.
3. Reduce HR cost.
4. Motivation of HR personnel.
5. Solving problems smoothly.
6. Sound performance appraisal system.
7. Systematic job analysis.
Process: -
1. Framing of policy.
2. Pre – Audit preparation.
3. Conducting HR Audit.
4. Preparation of Audit report.
5. Follow – up action.
Reasons: -
HR Audit is of great importance in today‟s competitive environment. Firms conduct it keeping
in view variety of objectives. Such audit is needed due to following reasons.
i. Alignment and realignment of HR with business goals.
ii. To make HR business driven.
iii. Promotion of professionalism among employees and company.
iv. Understanding the reasons for lower employee productivity and employee attrition; and
improving the same.
v. To review and improve effectiveness of various HR systems like manpower planning and
recruitment, training and development, performance appraisal, etc.
vi. To create high return on investment on HR.
Methodology: -
In order to evaluate various components of HR function, HR audit uses multiple methodologies.
The methods adopted for evaluation depends upon the nature of component to be evaluated.
Such methods are:
1. Interviews HR auditor conducts interview of top management, line managers and staff.
Interview with the top management indicates their opinion of future plans and prospects
available for the company. Interviews with other line managers and staff are conducted to get
information about effectiveness of existing HR systems, culture and strategies.
2. Group Discussion and Workshops In large organizations, where individual interviews are
not possible, group discussions and workshops are conducted for diagnosis and evaluation of
various aspects of HR.
3. Observation Auditor observes various aspects of organization in terms of physical facilities,
meetings, discussions and other events related to organizational culture and training. This will
reveal the work place atmosphere and organizational climate.
4. Analysis of Records and Documents An auditor scrutinizes and analyses various records
and documents such as annual reports, employee records, training documents, performance
appraisal forms, in house journals and periodicals etc. such scrutiny reveals strength and
weaknesses of HR functions.
5. Questionnaires Number of questionnaires can be designed and used by the auditor to
extract the information about HR systems, processes, styles and competencies.
Limitations: -
Every coin has two sides. Same way HR audit is also not free from limitations. However audit
itself is hardly ever a failure. There are some cases when audit does not serve constructive
purpose and simply becomes a process and have negative results or impact.
1. When audit is conducted as a fashion or because of some force or as a requirement of
someone else and CEO has no way of refusing it.
2. When results of audit are not taken seriously and they are not implemented.
3. When HR Audit is used against HR department or to throw away some staff in HR
department, it will have negative impact on overall human resource development in the
company.
4. HR audit points out gaps in the HR department and indicates mismatch between
organizational needs and employee competencies. It does not give evaluation of individual but
focuses on units and systems.
Role: -
1. Improvements in effectiveness of HR and HRD Systems.
2. Increasing importance of talented and motivated HR.
3. Positive changes in attitude of management.
4. Improves overall effectiveness of training.
5. Better recruitment and selection policy and procedure.
6. Improvements in management practices.
7. Contributes in role clarification.
8. Fixes performance accountability.
9. Supports long term strategy in business.
10. Improvement in total quality.
HRD Scoreboard: - HRD Scoreboard or HRD Scorecard was introduced by TVS Rao in 1999
to measure the effectiveness of HRD functions during HRD Audit. It helps to know about the
strengths and weaknesses of HRD activities being carried out in the company. The exact
position of HRD activities in an organization is made clear to the management with the help of
scorecard.
 HRD Scoreboard: A Dummy Company
S.No HRD Dimension Score Remarks if any
1 Systems 5
2 Strategies 4
3 Structures 4
4 Manager Competencies 4
5 Climate 3 50%. Result is average.
6 Objective orientation 2 Needs focus on Serial No.
7 Management Commitment 4 5, 6, 8 and 10 mainly.

8 Contribution of other parties 2

9 Desire for learning 4
10 Implementation of program 3
Total Score 35 out of
70

HRD Audit and OD: - With rapidly changing environment mainly technology, economy,
competition and customer demands and expectations it had become compulsory to improve
internal strength of the company. Out of resources being used in business unit’s manpower is
the most important. Therefore, special focus is being given for improvement of knowledge,
skills and competencies of employees and maintains them motivated. This is the main
objective of HRD functions. To ensure whether HRD functions are being performed properly or
not, HRD Audit is carried out. HRD Audit helps to assesses all relevant areas of HRD,
pinpoints the weak areas where special attention can be given and effectiveness can be
improved. This contributes in overall development of the organization. It will not be wrong if it is
said HRD Audit is an OD Intervention. It gives many insights in improvement of performance of
people and organization as a whole. HRD Audit helped in developing clear cut policies for
employees regarding various aspects, favourable environment, systems and procedures
performance appraisal, training programmes, career planning, morale and motivation. It
contributed to find out weaknesses and suggested ways to improve the situation. In many
organizations this has been accepted and conducted. It resulted in improvement of
performance, profit earning, customer satisfaction and goodwill of the company. Finally it can
be said HRD Audit contribute in giving competitive advantage to the company over its
competitors.
 UNIT – V
HRD in Large Scale Organizations: - HRD concept in large scale organizations will be given
the top most priority. These organizations, they first concentrate on HRM issues and after
identifying the need of HRD they develop the plans to design, implement and to evaluate HRD
programmes.
HRD in Small Scale Organizations: - HRD concept in small scale organizations will not be
given that much of importance because of many issues like lack of interest, financial problems
etc. These organizations mostly try to concentrate on HRM issues only.
HRD in manufacturing sectors: - HRD in manufacturing sectors concerned with,
a. When employees are sponsored for training, they take it seriously.
b. When employees do good work, their superiors take special care to appreciate them.
c. When seniors delegate the authority to juniors, to make use of it as an opportunity the
juniors tries to take good decisions and to have self development.
d. Top management believes that human resources are extremely important.
HRD in IT & Service sectors: - HRD in IT and Service sectors concerned with,
a. Employees do not take much pain to find out their strengths and weaknesses.
b. Ineffective personnel policies.
c. Top management do not go out of its way to ensure that employees enjoy their work.
d. Lack of adequate mechanisms and instruments to reward any good done.
HRD Outsourcing: - Outsourcing is the contracting out of an internal business process to a
third party organisation. It is any task, operation, job or process that could be performed by
employees within an organisation, but is instead contracted to a third party for a significant
period of time.
Advantages: -
1. Focus on core activities.
2. Reduced overhead.
3. Cost & efficiency savings.
4. Continuity & risk management.
5. Operational control.
Disadvantages: -
1. Hidden costs.
2. Lack of customer focus.
3. Choosing right partner.
4. Risk of exposing confidential data.
Types: -
1. Business Process Outsourcing (BPO).
2. Knowledge Process Outsourcing (KPO).
Problems: -
1. Cost expectations.
2. Product safety.
3. Culture Change.
4. Security won’t be there.
Elements Needed: -
1. Clear specification.
2. Period of validity.
3. Implementation services (Start & end date).
4. Remuneration.
5. Responsibility.
6. Obligation of the parties.
7. Termination of the contract.
8. Performance indicators.
9. Level of service.
10. Other procedures agreed on b/w the parties.
Business Process Outsourcing (BPO): - It is a subset of outsourcing that involves the
contracting of the operations & responsibilities of specific business functions to a third party
service provider.
Advantages: -
1. Productivity improvements.
2. Cost savings.
3. Increased capability.
Disadvantages: -
1. Knowledge disappears & transferred to outsourcing partner.
2. Poor quality control.
3. Lack of legal employees.
Knowledge Process Outsourcing: - Knowledge process outsourcing (KPO) is the allocation
of relatively high-level tasks to an outside organization or a different group (possibly in a
different geographic location) within the same organization. Knowledge process outsourcing
jobs, in comparison, are typically integrated with an organization's core competencies. The
jobs involve more complex tasks and may require an advanced degree and/or certification.
Examples of KPO include accounting, market and legal research, Web design and content
creation.
Global Developments and Implications of HRD in India: -
1. The commodity Concept: - Human Resource was referred as a commodity to be bought or
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.
2. The Factor of Production Concept: - Labor is treated as any other factor of production,
money, material, land etc.
3. 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.
4. The Paternalistic Concept: - Management must assume a fatherly and protective attitude
towards employees. It does not mean merely providing benefits but it signifies to satisfy
various needs of employees just as parents meet the requirements of the children.
5. The Humanitarian Concept: - To improve the productivity the physical, social and
psychological needs of workers must be satisfied.
6. The Human Resource Concept: - Employees are the most valuable assets of an
organization. There should be a conscious effort to realize organizational goals by satisfying
needs and aspirations of employees.
7. The Emerging HRD Concept: - 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 and opportunities should be provide to
people to exploit their potential fully.
ITES (Information Technology Enabled Services): -
1. Call centers, Insurance.
2. Medical transcription.
3. Accounting, data processing, data mining.
4. Telephone bills.
5. Salary bills.
Top 15 3rd Party ITES – BPO Firms in India: -
1. Genpact.
2. WNS Global Services.
3. Transworks Information Services.
4. IBM – Daksh.
5. TCS BPO.
6. Wipro BPO.
7. Firstsource Solutions.
8. HCL BPO.
9. Infosys BPO.
10. EXL Service Holdings.
11. Citi Group Glabal Services.
12. Aegis BPO Services.
13. HTMT Global Solutions.
14. 24/7 Customer.
15. Mphasis BPO.