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Human Resource Development (HRD)

Concept & scope of HRD

 Enabling and empowering people in organization so that they can actualize their potential
 treat employees as value creators/value enhancers and assets based on the Resource Based
View (RBV) of the firm
 Employee not a mere factor of production but source of competitive advantage
 It is a continuing process and its scope includes

Performance
Appraisal
Potential
HR Appraisal &
Information Development

Employee Career
Welfare & Planning
Quality of life
HRD

Organisation Training &

Development Development

Counselling
Rewards
& Mentoring

Figure 1: Scope of HRD

Goals of HRD

1. Employee competency development

 improve capabilities of each employee as an individual
 Identify competency gaps of employees in present job and bridge gaps through development
 Preparing people for expected future roles in the organization
2. Employee Motivation Development
 Desire to perform to the best ability
 Commitment to job and organization
 Improve relationship between each employee and his superior
 Team spirit
3. Organization climate development
 Building free expression of ideas
 Promotion of collaboration amongst different departments

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Performance Appraisal

Meaning Objectives
 Systematic  Basis for Compensation - determine
evaluation of the compensation packages, wage
performance of structure, salaries raises, etc., based on
merit
employees
 Basis of Promotion – identify efficient
 understanding the employees from inefficient employees.
abilities of a person  To identify the strengths and
for further growth weaknesses of employees to place
and development right men on right job. Features of affective
 Employee development - To maintain performance appraisal
and assess the potential present in a system
person for further growth and  Mutual trust
development.  Clear objective
 Effective communication – between  Standardization
employee and employer  Training
 Motivation - It serves as a basis for  Job relatedness
influencing working habits of the  Documentation
employees.
 Feedback and
 Validation of selection and training participation
processes - To review and retain the  Individual differences
selection and other training  Post appraisal interview
programmes.  Review and appeal

Performance Appraisal Methods

Individual Evaluation Multiple-people

Other Methods
Methods Evaluation Method

•Forced choice Method •Ranking •Field Review Technique

•Checklists •Paired Comparison •Performance tests
•Critical Incident •Forced distribution
•Graphic Rating Scale
•Essay Evaluation
•Confidential Report
•MBO
•BARS
•360 degree

Method Features
Traditional Methods
Ranking  Relative position of each employee vis-à-vis each other rather than with some standard.
 Employees are ranked according to their performance levels
 method speaks only of the position where an employee stands in his group and not how much better
or worse he/she is
 No systematic procedure for ranking individuals in the organization and may be biased.

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Method Features
Paired  There will be a list of relevant options.
Comparison  Each option is in comparison with the others in the list.
 The results will be calculated and then such option with highest score
will be mostly chosen

Forced
Distribution  Employees are ranked in terms of forced
allocations/rating categories.
 For instance, it is vital that the proportions be shared
in the way that 10 or 20% will be the highest levels of
performances, while 70 or 80% will be in the middle level
and the rest will be in the lowest one.

Weighted
Checklists  based on list of descriptive statements about effective and
ineffective behaviour on jobs
 the performance of employee s rated on the basis of
positive checks

Critical  identifying and describing specific critical incidents where employees did something really well
Incident or that needs improving during their performance period
Graphic Rating  Checks on the performance levels of each employee
Scale

Essay  Supervisors are required to express the strong and weak points of employees and explain those
Evaluation points.
 Non-quantitative technique.
 It is often used with the graphic rating scale method
Field Review  Appraisal done by someone outside the department of the employee, usually the HR department
Technique or corporate department.
 Mostly used for managerial level promotions
Performance  Tests to check the knowledge and skills of the employee are conducted
tests
Confidential  Descriptive report prepared, generally at the end of every year, by the employee's immediate
Report superior.
 The report highlights the strengths and weaknesses of the subordinate.
 The report is not data based. The impressions of the superior about the subordinate are merely
recorded there
 It does not offer any feedback to the subordinate

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Method Features
 It is mostly used in government organizations
Modern Methods
Management  Superiors and subordinates participatively set goals that are tangible, verifiable and measurable
By Objectives  assessments of subordinate’s performance on a regular basis, and finally make rewards based
(MBO) on the results achieved
 systematic and rational technique that allows management to attain maximum results from
available resources by focusing on achievable goals
 This method mostly focuses on results achieved (goals) and not on the way employees can fulfill
them (methods).
Behaviorally  Also Behavioural expectation scale
anchored  making ratings on behaviors or sets of indicators to determine the effectiveness or
rating scale ineffectiveness of working performance
(BARS)  BARS is a mix of the rating scale and critical incident techniques
360 degree  Appraisal by different parties like top management, immediate superior, peers, subordinates,
Feedback self, customers
 Developed by General Electric in 1992
Cost  Performance evaluated on monetary benefits employee has given t the firm
Accounting  Cost benefit analysis of the employee

Performance appraisal biases

First Impression/
Primacy effect
Recency Effect Halo Effect
(based on most (appraisal on basis
recent behaviour) of one perceived
positive)

Spill-over effect Performan Horn Effect

ace
(based on past (appraisal on basis
appraisal
performance) of one perceived
Biases
negative)

Excessive
Personal Biases stiffness or
linience
Central tendency
(to rate all as
average)

Figure 2: Performance appraisal Biases

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Potential appraisal and development

 Determining an employee’s strengths and weaknesses to predict his/her future performance

 future – oriented appraisal aimed to identify and evaluate the potential of the employees to
assume higher positions and responsibilities in the organizational hierarchy
 considered as a part of the performance appraisal processes by many organisations

Objective Techniques
 inform employees of their prospects  Self-appraisal
 update training and recruitment  Peer appraisals
activities  Superior appraisals
 advise employees about the work to be  MBO
done to enhance their career  Psychological and psychometric tests
opportunities  Management games like role playing
 Motivate the employees to further  Leadership exercises
develop their skills and competencies
 enable the organisation to draft a
management succession programme

Steps of Potential appraisal system

 Clarity of roles
Role Descriptions  Extensive Job description for each job
 Functions associated with each job

 Technical knowledge and skills

 Managerial capabilities and qualities Qualities needed to
 Behavioral capabilities perform the roles
 Conceptual capabilities
 Ratings by others
Rating Mechanisms  Psychological tests
 Simulation games and exercises
 Performance appraisal records

 Set up the system to allow Organising the

introduction of process smoothly system
 Opportunity to employees to know
their assessment
Feedback  Periodic counseling and guidance
sessions to enable employees to have
realistic self-perceptions


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Feedback/Coaching and Performance Counseling/Mentoring

 Providing help and support to subordinates in objectively analysing their performance to know
themselves better – their strengths and weaknesses
 Improving subordinate’s professional and interpersonal competence by giving him feedback
about his behaviour
 Setting goals and formulating action plans for further improvement
 Set of techniques, skills, attitudes to help employees manage their own problems using their own
resources

Process of Performance

Identifying Need  Prepare for Counseling  Conduct the session Follow-up

Dynamic Business Aim =

Result =
environment wriggle out stressful
stress, low
(new challenges, situation through
productivity, drop in
stressful, dilemmatic counselling and
performance
situations) mentoring

Identifying need - As indicated by

 Not able to mobilize his strengths  Not able to solve problems

 Not performing in expected manner
 Acting disobediently
 Not responding to seniors
 Develop negative attitude
 Not able to make decisions
 Lack of team spirit
 Interpersonal relations with superiors and peers
 Absenteeism and late coming
 Slipping deadlines
 Problems in adjusting to organizational change

Prepare Conduct Follow-up

 Schedule counselling and
notify employee in advance
 know the mutually agreed
terms of job responsibilities
 Review the employee’s
background, education,
training and experience
 Determine the strengths
and development needs to
be discussed
 Identify areas that need
attention
 Make notes of counselling
 Be sincere, friendly with
employee  Summarise key points of
 Discuss objectives of organisation counselling session
 Discuss expectations from  Give a copy to employee
employee  Follow-up on points
 Discuss competencies needed agreed
and ideas from employee to  Give feedback in a
contribute to success of constructive, non-
organisation evaluative manner
 Emphasis employee’s strengths
and specifics, he should aim for
 Discuss his career goals and
training needs

The key to successful performance counseling is

 effective communication (effective listening, responding to questions, giving feedback),
 influencing behavior (identifying the behaviors, giving autonomy, positive reinforcement),

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 helping (concern and empathy, 2-way relationship with trust, identify development needs)
Career Planning and Development

Career planning - Process of selecting career goals and the path to these goals

Career Development – personal improvements to achieve the career goal

Career management – designing and implementing goals, plans, and strategies to enable an employee
to achieve career goals while satisfying organisational needs

Objectives of Career Planning

Process of Career Planning & Development

Analysis of individual analysis of career

skills, knowledge, analysis of career demand on the
abilities, aptitudes, opportunities incumbent (technical
etc. and attitudinal)

formulating career
establishing realistic relating specific jobs
startegy including
short-term and long- to different career
areas of change and
term goals opportunities
adjustment

implementing plan
by acquiring maintaining the
preparing action plan
resources for action plan
achieving goals

Techniques for Effective Career Development

 Challenging initial job assignment

 Dissemination of career option information
 Job positioning
 Assessment centers

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 Career counseling

Training and Development

Job Analysis Job Description Job Specification Job Design

•systematic exploration, •basic job-related data •also known as •follows job analysis
study and recording the that is useful to employee specifications •aims at outlining and
responsibilities, duties, advertise a specific job •a written statement of organizing tasks, duties
skills, accountabilities, & attract a pool of educational and responsibilities into
work environment and talent. qualifications, specific a single unit of work for
ability requirements of •information such as job qualities, level of the achievement of
a specific job. title, job location, experience, physical, certain objectives.
•determining the reporting to and of emotional, technical •also outlines the
relative importance of employees, job and communication methods and
the duties, summary, nature and skills required to relationships that are
responsibilities, objectives of a job, perform a job, essential for the
physical and emotional tasks and duties to be •includes general health, success of a certain job.
skills for a given job. performed, working intelligence, aptitude, •refers to the what, how
•what a job demands conditions, machines, memory, judgment, much, how many and
and what an employee tools and equipments leadership skills, the order of the tasks
must possess to to be used by a emotional ability, for a job.
perform a job prospective worker and adaptability, flexibility,
productively. hazards involved in it values and ethics,
manners and creativity,

Figure 3: Job related terminology

Training - planned effort to

 Increasing importance of
facilitate the learning of job-
product/service quality
related skills, knowledge and Training  Flexibility to adapt to job
behaviour by employees; short-
requirements
term oriented Meaning & Need
 To meet challenges of
Development technological change
Development - acquisition of
 To promote employee
knowledge, skills and behaviours (T&D) motivation and commitment
that improve an employee’s ability
 To fill gaps in skilled labour
to meet changes in job
shortage
requirements and perform future
roles; long-term oriented

Training Methods
For Non-managerial employees For Managerial employees
Method Features Method Features
On-the-job training Hands-on experience of job with Case studies To build analytical, problem-solving, critical
instructions from supervisor thinking skills through active participation
Apprenticeship Practical and theoretical instruction Management Simulate real-life issues faced in the workplace
and experience both on and off the games
job
Co-operative Practical on-the-job + formal Role playing Builds team-work and negotiating skills;
training educational classes effective in connecting theory to practical
aspect

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For Non-managerial employees For Managerial employees
Method Features Method Features
Internship Real-life experience of job for short Behavior Demonstrates desired behavior and gives
period by students modeling trainee the chance to role-play
Classroom/ Classroom instructions in operation Group discussions Share knowledge and experiences and views
vestibule of equipments at work
Instruction
Computer assisted Instructional material through Job rotation Hands on experience of various jobs and
Instruction (CAI) computer in an interactive format departments in organization
Computer Managed CAI + score tests to determine level Understudy Short duration assignment at different
Instruction (CMI) of training proficiency assignment location
Simulation Imitating real work experiences Other methods Like coaching, seminars and conferences,
under controlled environment special projects, action learning, staff
meetings, planned career progression,

Systematic Training Process – ADDIE Model

Training Evaluation – Kirkpatrick’s Model

Given by – Donald Kirkpatrick
Model - The four levels of evaluation:
1. Reaction of the Trainee - thoughts and feelings of the participants about the training
2. Learning - the increase in knowledge or understanding as a result of the training
3. Behaviour - extent of change in behaviour, attitude or capability
4. Results - the effect on the bottom line of the company as a result of the training

Cost & Benefits of Training

Typical Costs Typical Benefits

 Trainer’s salary and time  Increase in production
 Trainee’s salary and time  Reduction in errors, accidents
 Materials for training  Reduction in turnover
 Expenses for trainer and trainee  Less supervision required
 Cost of facilities and equipment  Ability to use new capabilities
 Lost productivity (opportunity  Adapt new technology
cost)  Attitude changes
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Rewards
 Rewards for better performance and success matter more than the actual achievement
 organizations must evolve reward systems that motivate each individual according to his or
her level of self-development and need for either monetary benefit or fulfilment imperative
 Six rules of rewards
o Do not promise rewards in advance
o Keep anticipated rewards small
o Reward continuously, not just once
o Reward publicly, not privately
o Reward behaviors, not only outcomes
o Reward peers, not only subordinates

Employee Welfare/ Quality of Life Work (QWL)

QWL = Favorableness or un-favorableness of a job environment

Just, fair, equitable salary; Reasonable pay E.g. – flexi hours of work, zero risk physical
to maintain standard of living conditions, safety against noise, pollution,
fume, gases, etc.

Sufficient autonomy and control

Career progression
to employees; opportunity to use
opportunities
skills and take initiatives

Sense of belongingness in Rule of law of organization;

organization; non-discriminatory Some privileges like personal
environment privacy, right to expression, right
to equitable treatment, etc.

Balance in family life, work life Socially responsible behavior

and social life and culture at organization
Figure 4: Walton's categorization of QWL

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Organizational Development (OD)

 Long-term systematic and comprehensive approach to planned change

 Based on research and theory
 Improve both individual and organizational
 Reciprocal relationship between individual and organization

Models of OD

1. Lewin’s Model

Lewin’s Model

•determine what needs to •anchor the changes into the

change Change culture
•ensure employees are ready •develop ways to sustain the
to change •Communicate often
change
•create need for change •dispel rumors
•provide support and
•manage and respond to •Execute the intended training
concerns about change change
•celebrate success
•involve people in the
process

Unfreeze Refreeze

2. Leavitt’s Model/Leavitt’s Diamond

Founded on the interactive nature of the four subsystems (task, structure, people,
technology) in a change process

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3. Larry Greiner’s Model
According to Griener, change occurs in terms of certain sequential stages. The external
stimulus pressurizes the management of organization to initiate change process.

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