Monday, 30 March 2015

Human Resource Development

Human Resource Development is the part of human resource management that specifically deals with training and development of the employees in the organization. Human resource development includes training a person after he or she is first hired, providing opportunities to learn new skills, distributing resources that are beneficial for the employee's tasks, and any other developmental activities. 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".

Definitions of HRD

HRD (Human Resources Development) has been defined by various scholars in various ways. Some of the important definitions of HRD (Human Resources Development) are as follows:
According to Leonard Nadler, "Human resource development is a series of organised activities, conducted within a specialised time and designed to produce behavioural changes." In the words of Prof. T.V. Rao, "HRD is a process by which the employees of an organisation are helped in a continuous and planned way to (i) acquire or sharpen 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 organisational development purposes; (iii) develop an organisational culture in which superior-subordinate relationship, team work and collaboration among sub-units are strong and contribute to the professional well being, motivation and pride of employees."

Features of HRD

  1. Systematic approach: HRD is a systematic and planned approach through which the efficiency of employees is improved. The future goals and objectives are set by the entire organization, which are well planned at individual and organizational levels.
  2. Continuous process:HRD is a continuous process for the development of all types of skills of employees such as technical, managerial, behavioural, and conceptual. Till the retirement of an employee sharpening of all these skills is required.
  3. Multi-disciplinary subject:HRD is a Multi-disciplinary subject which draws inputs from behavioural science, engineering, commerce, management, economics, medicine, etc.
  4. All-pervasive:HRD is an essential subject everywhere, be it a manufacturing organization or service sector industry.
  5. Techniques: HRD embodies with techniques and processes such as performance appraisal, training, management development, career planning, counselling, workers’ participation and quality circles.

Scope of HRD

Human resource management (HRM) deals with procurement, development, compensation, maintenance and utilization of human resources. HRD deals with efficient utilization of human resources and it is a part of HRM.
Human resource being a systematic process for bringing the desired changes in the behaviour of employees involves the following areas:
  1. Recruitment and selection of employees for meeting the present and future requirements of an organization.
  2. Performance appraisal of the employees in order to understand their capabilities and improving them through additional training.
  3. Offering the employees performance counselling and performance interviews from the superiors.
  4. Career planning and development programmes for the employees.
  5. Development of employees through succession planning.
  6. Workers participation and formation of quality circles.
  7. Employee learning through group dynamics and empowerment.
  8. Learning through job rotation and job enrichment.
  9. Learning through social and religious interactions and programmes.
  10. Development of employees through managerial and behavioural skills.

Functions of HRD

A human resource development is set of planned and systematic activities designed by an organization to provide opportunities to its members to learn skills necessary for the present and future job requirements. The process of HRD involves the development of expertise in the employee through organizational development and training and development. The aim of HRD is to improve the performance of the employees. The three main areas of human resource development are human resource management, quality improvement and career development.
The main functions of HRD are:-
  1. Training and development:
    Training and development is aimed at improving or changing the knowledge skills and attitudes of the employees. While training involves providing the knowledge and skills required for doing a particular job to the employees, developmental activities focus on preparing the employees for future job responsibilities by increasing the capabilities of an employee which also helps him perform his present job in a better way. These activities start when an employee joins an organization in the form of orientation and skills training. After the employee becomes proficient, the HR activities focus on the development of the employee through methods like coaching and counseling.
  2. Organization development:OD is the process of increasing the effectiveness of an organization along with the well being of its members with the help of planned interventions that use the concepts of behavioral science. Both micro and macro changes are implemented to achieve organization development. While the macro changes are intended to improve the overall effectiveness of the organization the micro changes are aimed at individuals of small groups. Employee involvement programmes requiring fundamental changes in work expectation, reporting, procedures and reward systems are aimed at improving the effectiveness of the organization. The human resource development professional involved in the organization development intervention acts as an agent of change. He often consults and advising the line manager in strategies that can be adopted to implement the required changes and sometimes becomes directly involve in implementing these strategies.
  3. Career development:It is a continuous process in which an individual progresses through different stages of career each having a relatively unique set of issues and tasks. Career development comprises of two distinct processes. Career Planning and career management. Whereas career planning involves activities to be performed by the employee, often with the help of counselor and others, to assess his capabilities and skills in order to frame realistic career plan. Career management involves the necessary steps that need to be taken to achieve that plan. Career management generally focus more on the steps that an organization that can take to foster the career development of the employees.

Difference between HRD and HRM

Both are very important concepts of management specifically related with human resources of organisation. Human resource management and human resource development can be differentiated on the following grounds:
  1. The human resource management is mainly maintenance oriented whereas human resource development is development oriented.
  2. Organisation structure in case of human resources management is independent whereas human resource development creates a structure, which is inter-dependent and inter-related.
  3. Human resource management mainly aims to improve the efficiency of the employees whereas aims at the development of the employees as well as organisation as a whole.
  4. Responsibility of human resource development is given to the personnel/human resource management department and specifically to personnel manager whereas responsibility of HRD is given to all managers at various levels of the organisation.
  5. HRM motivates the employees by giving them monetary incentives or rewards whereas human resource development stresses on motivating people by satisfying higher-order needs.


There are several T&D methods available. The use of a particular method depends which method accomplishes the training needs and objectives. Training methods can be classified into two categories:
I. On-the-Job Methods This refers to the methods of training in which a person learns a job by actually doing/performing it. A person works on a job and learns and develops expertise at the same time.
  1. Understudy: In this study the employee is trained by his or her supervisor. The trainee is attached with his or her senior and called understudy or assistant. For example, a future manager might spend few months as assistant to the present manager.
  2. Job rotationThis refers to shifting/movement of an employee from one job to another on regular intervals.
  3. Special projectsThe trainees' may ask to work on special projects related with departmental objectives. By this, the trainees will acquire the knowledge of the assigned work and also learn how to work with others.
  4. ExperienceIt refers to learning by doing. This is one of the oldest methods of on-the-job training. Although this is very effective method but it also very time-consuming and wasteful. Thus it should be followed by other training methods.
  5. Committee assignmentIn this, the trainees become members of a committee. The committee is assigned a problem to discuss and make recommendations.
  6. CoachingIn this, the supervisor or the superior acts as a guide and instructor of the trainee. This involves extensive demonstration and continuous critical evaluation and correction.

II. Off-the-Job Methods These methods require trainees to leave their workplace and concentrate their entire time towards the training objectives. These days off-the-job training methods have become popular due to limitations of the on-the-job training methods such as facilities and environment, lack of group discussion and full participation among the trainees from different disciplines, etc. In the off-the­job methods, the development of trainees is the primary task rest everything is secondary. Following are the main off-the-job training methods:
  1. Special courses and lecturesThese are the most traditional and even famous today, method of developing personnel. Special courses and lectures are either designed by the company itself or by the management/professional schools. Companies then sponsor their trainees to attend these courses or lectures. These are the quick and most simple ways to provide knowledge to a large group of trainees.
  2. Conferences and seminarsIn this, the participants are required to pool their thoughts, ideas, viewpoints, suggestions and recommendations. By attending conferences and seminars, trainees try to look at a problem from different angles as the participants are normally from different fields and sectors.
  3. Selected readingThis is the self-improvement training technique. The persons acquire knowledge and awareness by reading various trade journals and magazines. Most of the companies have their own libraries. The employees become the members of the professional associations to keep abreast of latest developments in their respective fields.
  4. Case study method
    This technique was developed by Harvard Business School, U.S.A. It is used as a supplement to lecture method. A case is a written record of a real business situation/problem faced by a company. The case is provided to the trainees for discussion and analysis. Identification and diagnose of the problem is the aim in case study method. Alternate courses of action are suggested from participants.
  5. Programmed instruction/learning
    This is step-by-step self-learning method where the medium may be a textbook, computer or the internet. This is a systematic method for teaching job skills involving presenting questions or facts, allowing the person to respond and giving the learner immediate feedback on the accuracy of his or her answers."
  6. Brainstorming
    This is creativity-training technique, it helps people to solve problems in a new and different way. In this technique, the trainees are given the opportunity to generate ideas openly and without any fear of judgement. Criticism of any idea is not allowed so as to reduce inhibiting forces. Once a lot of ideas are generated then they are evaluated for their cost and feasibility.
  7. Role-playing
    In this method, the trainees are assigned a role, which they have to play in an artificially created situation. For example, a trainee is asked to play the role of a trade union leader and another trainee is required to perform the role of a HR manager. This technique results in better understanding of each other's situation by putting foot in other's shoes.
  8. Vestibule schools
    Large organisations frequently provide what are described as vestibule schools a preliminary to actual shop experience. As far as possible, shop conditions are duplicated, but instruction, not output is major objective." A vestibule school is operated as a specialised endeavor by the personnel department. This training is required when the amount of training that has to be done exceeds the capacity of the line supervisor; a portion of training is evolved from the line and assigned to staff through a vestibule school." The advantage of a vestibule school is specialisation.
  9. Apprenticeship trainingThis training approach began in the Middle Ages when those who wanted to learn trade skill bound themselves to a master craftsman and worked under his guidance. Apprenticeship training is a structured process by which people become skilled workers through a combination of classroom instruction and on-the-job training.
  10. In-basket exerciseIn this technique, the trainees are provided background information on a simulated firm and its products, and key personnel. After this, the trainees are provided with in-basket of memos, letters, reports, requests and other documents related with the firm. The trainee must make sense out of this mass of paperwork and prepare memos, make notes and delegate tasks within a limited time period."
  11. Business gamesBusiness games involve teams of trainees. The teams discuss and analyse the problem and arrive at decisions. Generally, issues related with inventories, sales, R&D, production process, etc. are taken up for consideration.
  12. Behaviour modelingThis is structured approach to teach specific supervisory skill. This is based on the social learning theory in which the trainee is provided with a specific model of behaviour and is informed in advance of the consequences of engaging in that type of behaviour.
  13. Sensitivity (T-group) trainingIn this type of training, a small group of trainees consisting of 10 to 12 persons is formed which meets in an unstructured situation. There is no set agenda or schedule or plan. The main objectives are more openness with each other, increased listening skills, trust, support, tolerance and concern for others. The trainers serve a catalytic role. The group meets in isolation without any formal agenda. There is great focus on inter-personal behaviour. And, the trainer provides honest but supportive feedback to members on how they interacted with one another.
  14. Multiple management
    This technique of training was first introduced by McCormick, President of McCormick & co. of Baltimore in 1932. He gave the idea of establishing a junior board of directors. Authority is given to the junior board members to discuss any problem that could be discuss in senior board and give recommendations to the senior board. Innovative and productive ideas became available for senior board.

Challenges faced by HRD professionals

The common challenges faced by HRD professionals are:-
  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.

Employee Retention

Employee retention is the process through which employees are encouraged to continue with the same organization for the maximum period of time possible. The present day employees are aware of the opportunities available to them and as soon as they feel dissatisfied with their present job or employer, they change their job immediately. On the other hand employers do not want to lose their good employees thus it becomes important for them to know how to attract and retain their employees. There are four basic factors that play an important role in retaining the employees. These are salary and remuneration, recognition, benefits and opportunities for personal growth. Adopting the following practices could also lead to employee retention:
  1. Open communication inculcates a feeling of loyalty among the employees. The employees are also aware of the fact that their opinion matters and the organization is interesting in knowing their views.
  2. Career development program: It is human nature to worry about the progress of the career of an individual. The organizations that provide opportunities for enhancing the knowledge and skills are preferred by employees.
  3. Recreation facilities:These facilities help in keeping away the stress from the employees. Different recreational programs include trips by employees, sports activities and celebrating anniversaries at the organization.
Other practices that could be adopted for employee retention are Employee Reward Programme, performance base bonus and gifts to the employees.

Case in point-Human Resources Development in action at samsung:

It could well be a resort. It is, though in a different sort of way. The complex, located on rolling hills an hour's drive from Seoul, is Samsung's Human Resources Development (HRD) Centre, the place where the South Korean giant forges the mind and heart of its employees to its philosophy. Samsung takes its people seriously. It is constantly preparing them, at every level, for the rapidly changing world market that throws up ever-changing challenges. Employees of all the 70-plus companies of the group at one time or the other come here to be inspired and to learn to think out of the box. Indeed, so serious is Samsung about its people thinking differently and spontaneously that it has designed the campus unlike any other. While many training/excellence centres recreate the college campus, Samsung has ideated differently, colour-coding its values and integrating them all over the campus so that these values get hard-wired among the trainees. If for people, it is Purple, it is Blue for Excellence, Red for Change, Green for Integrity and Orange for Co-prosperity. But the predominant theme in the campus is Green, emphasising the company's commitment to integrity. As Mr Ja Hwan Song, Vice-President, Globalisation Team, HRD Centre, recently told a group journalists from India, the people philosophy is quite simply giving them a wealth of opportunities to reach their full potential. Realising that change is a constant and the innovation is critical to keep pace, the HRD Centre tries to equip its people to think differently. Believing that a business cannot be successful unless it creates prosperity and opportunity for others, he says Samsung cares as much for its staff as for societies it operates in by being socially and environmentally responsible. The training centre prepares new comers to Samsung for the journey with the organisation, promotes to take up the new responsibilities, senior executives to exchange ideas, and the top echelons to think far into the future. This is done chiefly through three key initiatives: Shared Value Programme: The attempt is to give new comers the basics of doing good business. History, tradition, values form the basis of the programme with sessions on teamwork and creativity. Business Leader Programme: A five-month initiative to develop the leaders of the next generation.
The participants are those with global competitiveness and all-round management skills. Global business management, leadership, and problem solving are the focus. Global Expert Programme: A larger programme with varying periods, here the effort is to develop global spearheads with an emphasis on the local customs, cultures and practices besides foreign language, all designed to ready the managers for international assignments. The HRD Centre also promotes Knowledge Management and Innovation in Practice with its cutting-edge education infrastructure, promoting values, and continuous assessment. The centre actively promotes field learning so that people can develop themselves wherever they are. The campus is inspirational, and it has borrowed from the works of famous artists to design the spaces so that the trainees are positively influenced by the energies of these greats. So if the fifth flow has 3D in 2D format you are but reminded of cubist Pablo Ruiz Picasso. TV screen on the second floor corridor's ceiling could but be inspired by Nam June Paik, the Korean American artist, who has worked with a variety of media and is considered to be the first video artist and also credited with early use of the term ‘super highway' in application to telecommunications. The sixth floor is inspired by the Russian-born French Expressionist painter Wassily Kandinsky, and the fourth has a Belgian artist Rene Magritte's surreal touch to it. But the piece de resistance is the third floor, whose corridor are lined with small and large images of Marilyn Monroe, unmistakably by pop-art icon Andy Warhol. The idea for front courtyard has been borrowed from Vatican's St Peter's Square. If there all the paths led Christians to their temporal centre, here the pathways draw ‘Samsung's People' from across the 150 nations it's present in to its learning headquarters. It is not all work and no play at the HRD Centre. The training sessions, according to Mr Ja Hwan Song, are fun-filled including pop performances as interludes to the think sessions. The two/three kitchens bring to the table a variety of fare from across the world. Samsung taking its human resource so seriously is reflected in its attrition rate of five to six per cent among its worldwide staff roll of over two lakh.

Management by objectives (MBO)

Management by objectives (MBO) is a systematic and organized approach that allows management to focus on achievable goals and to attain the best possible results from available resources. It aims to increase organizational performance by aligning goals and subordinate objectives throughout the organization. Ideally, employees get strong input to identify their objectives, time lines for completion, etc. MBO includes ongoing tracking and feedback in the process to reach objectives. Management by Objectives (MBO) was first outlined by Peter Drucker in 1954 in his book 'The Practice of Management'. In the 90s, Peter Drucker himself decreased the significance of this organization management method, when he said: "It's just another tool. It is not the great cure for management inefficiency. Management by Objectives works if you know the  objectives, 90% of the time you don't."
Core Concepts
According to Drucker managers should "avoid the activity trap", getting so involved in their day to day activities that they forget their main purpose or objective. Instead of just a few top managers, all managers should: (i)   participate in the strategic planning process, in order to improve the implementability of the plan, and (ii)  implement a range of performance systems, designed to help the organization stay on the right track.
Managerial Focus
MBO managers focus on the result, not the activity. They delegate tasks by "negotiating a contract of goals" with their subordinates without dictating a detailed roadmap for implementation. Management by Objectives (MBO) is about setting yourself objectives and then breaking these down into more specific goals or key results.
Main Principle
The principle behind Management by Objectives (MBO) is to make sure that everybody within the organization has a clear understanding of the aims, or objectives, of that organization, as well as awareness of their own roles and responsibilities in achieving those aims. The complete MBO system is to get managers and empowered employees acting to implement and achieve their plans, which automatically achieve those of the organization.
Where to Use MBO
The MBO style is appropriate for knowledge-based enterprises when your staff is competent. It is appropriate in situations where you wish to build employees' management and self-leadership skills and tap their entrepreneurial creativity, tacit knowledge and initiative.
Management by Objectives
(MBO) is also used by chief executives of multinational corporations (MNCs) for their country managers abroad.


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