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Human Resource Development and Planning Human Resource Development and Planning MBA Second Year (Human Resources) School of Distance Education Bharathiar University, Coimbatore - 641 046 Author: D K Bhattacharyya Copyright © 2008, Bharathiar University All Rights Reserved Produced and Printed by EXCEL BOOKS PRIVATE LIMITED A-45, Naraina, Phase-I, New Delhi-110028 for SCHOOL OF DISTANCE EDUCATION Bharathiar University Coimbatore-641046 CONTENTS Page No. UNIT I Lesson 1 Human Resource Management and Development 7 UNIT II Lesson 2 HRD Modules: Recruitment and Selection 33 Lesson 3 Promotion and Motivation 46 Lesson 4 Performance Appraisal and Development 64 UNIT III Lesson 5 Career Planning and Development 93 Lesson 6 Knowledge Management and Learning Organisations 121 UNIT IV Lesson 7 Training and Development 131 Lesson 8 Stress and Human Resource Development 144 UNIT V Lesson 9 Human Resource Accounting and Audit 159 Model Question Paper 177 HUMAN RESOURCE DEVELOPMENT AND PLANNING SYLLABUS UNIT I HRD – concept – meaning – philosophy – nature – need and significance. HRD – climate – goals – competencies – functions – areas. HRD as a system – HRD in changing scenario. HRSD – Contextual factors and Human Resource System designing. Role Analysis and HRSD-key performance areas, Critical Attributes, Role effectiveness, Role analysis methods. UNIT II HRD modules: Recruitment and selection – orientation and placement performance appraisal – training and development – promotion and motivation – career development. Performance appraisals and performance development – objectives of performance appraisal – The past and the future; Basic consideration in performance appraisal; Development oriented appraisal system. Interpersonal feedback and performance counselling. UNIT III Potential Appraisal and Development. Career planning and Development – Quality of work life – quality circles – human capital development – philosophy and principles – practices – work force and people development – performance management – knowledge management. UNIT IV Training – conceptual framework for training; learning principles; Identification of training needs; Determination of training objectives; Training programme design; Training methods and their selection criteria; Evolution and Follow up training. Stress – definition – personality traits – emotional management – categories of stressors – identification of stress at various level – pre-requisites for zero stress – psychological stress – stress and human resource development. UNIT V HRD challenges in 21st century – HR outsourcing – human resource audit – human response development – human resource accounting – future of HRD Organization. 5 Human Resource Management and Development UNIT 1 UNIT I 6 Human Resource Development and Planning 7 LESSON Human Resource Management and Development 1 HUMAN RESOURCE MANAGEMENT AND DEVELOPMENT CONTENTS 1.0 Aims and Objectives 1.1 Introduction 1.2 History of HRM 1.3 Development Process 1.3.1 Process of Development in India 1.4 Human Resource Developments as a Separate Personnel Discipline 1.5 Human Resource Management (HRM) and Human Resource Development (HRD) 1.5.1 Search for Competitive Advantage 1.5.2 Models of Excellence 1.5.3 Failure of Personnel Management 1.5.4 Decline in Trade Union Pressure 1.5.5 Changes in Workforce and the Nature of Work 1.6 HRM vs. Personnel Management 1.7 HRD Concepts 1.7.1 Training 1.7.2 Education 1.7.3 Development 1.8 Objectives of HRD 1.9 Role and Significance of HRD 1.9.1 Management of HRD Unit 1.9.2 Focus of the HRD System 1.9.3 Structure of HRD System 1.10 Role of HRD Manager 1.10.1 Role of Consultants in HRD 1.10.2 Line Managers and HRD 1.11 Reference Notes 1.11.1 HRD Culture 1.11.2 HRD Climate 1.11.3 HRD Matrix 1.12 Let us Sum up 1.13 Lesson End Activity 1.14 Keywords 1.15 Questions for Discussion 1.16 Suggested Readings 8 Human Resource Development 1.0 AIMS AND OBJECTIVES and Planning After studying this lesson, you should be able to: z Understand the process of Development of HRM and HRD z Explain the concepts and objectives of HRD z Distinguished between the HRM vs. Personnel Management z Discuss the role of HRD manager z Know about the role of consultants in HRD 1.1 INTRODUCTION In this part, you have to first learn the process of development of Human Resource Management (HRM). Hence we have to take a brief note on the HRM, especially its different phases of development, conceptual issues, objectives, importance and linkages with other organisational roles. Even though the subject title is Managing People, basically it is concerned with HRM. The subject title of Managing People is in conformity with the international practices. Like Commonwealth of Learning recommended basic HRM lessons should be covered under Managing People head and advance level under head of Human Resource Management (HRM). But for this, there exists no difference. Thus we have to understand HRM, HRD and appreciate why HRM has now become so important for us for successful management of an organisation. 1.2 HISTORY OF HRM Management of Human Resources, as a subject of study, even though relatively of recent origin, the concept upon which the theory is based dates back to 400 B.C. (Chaldeans Inventive Wage Plans). Since then we find its practices in different civilisations. However, here we are more concerned with the recent history. Before industrial revolution status of labour was extremely low and the human relationships between the employer and the employees were characterised by Slavery, Serfdom and the Guild system. Slavery was based on negative incentive system and Serfdom was based on positive incentive system. The Guild System involving Master Craftsmen (the owner), the Journeyman (the travelling workers) and the Apprentice marked the beginning of Human Resource Management practices for involvement of selection, training and development of workers and emergence of collective bargaining over wages and working conditions. Industrial Revolution followed the new economic doctrine of laissez-faire, new industrial organisations, characterised by factory system (a change from cottage system or home centered production system), which deteriorated the employer- employee relationship for unhealthy work environment, long working hours, fatigue, monotony, strain, increased likelihood of accidents, etc. Reviewing the history, it is observed that great thrust had been given to Personnel Management Functions by business expansion, labour strategies and higher wage rates during World War-1 (1917). Before this the thrust was more on Labour Welfare to ensure that workers are not exploited in organizations. This was because of movement of Social Activists, Political Parties and Trade Unions of different countries who were putting pressure on Government of respective countries to come out with legislations pertaining to labour so that they are protected and given their due rights and privileges. Labour Welfare Officers were statutorily appointed to ensure safeguarding 9 of interests of workers. Thus many of these activities had been initiated then for Human Resource Management and Development welfare and paternalism. Labour Welfare Officers then had no managerial role. However, devastating effect of world war necessitated urgent reconstruction of the economy. At organization level, there was immediate need to augment productivity. Labour Welfare Officers being more proximate to workers, they were given the additional role of Personnel Management so that they can effectively motivate people to contribute more for enhancing productivity. The great depression of 1920-21, thereafter threw many Personnel men out of jobs and this created a disillusion for this profession. A number of literatures came up round the world during 1920-22, dealing with different areas of Personnel Administration and by 1923, it is considered the profession had reached the stage of maturity, as organisations started giving importance to this profession, recognising its imperativeness like other core functions; Production and Marketing. 1.3 DEVELOPMENT PROCESS Tracing the history, we find that Personnel Function derived from the introduction of welfare and charitable activity. Initially welfare was perceived as a moral duty and later welfare was considered as precondition of industrial efficiency. The Second development sprung from the employers’ endeavors to cope with the challenges of trade unionism. The third phase of development could be attributed to the development of the concept of Humanisation of work. Factors which are responsible for development of this profession in a phased manner from world perspective can be listed as follows: Technological changes are taking place at a rapid pace throughout the world. Such changes have a great bearing upon personnel functions because it fundamentally changed the relationship between people and work though from an overall point of view, it induced a major change in the economic system and the structure of the society. The rising competition both at home and abroad (in cases of International Trade), virtually reduces the profit to the level of production cost (unless the organization is monopolist). The free movement of technology from one country to another does not allow any production process to monopolise the particular technology of their use. The rise of consumerism, government protection, so also international competition, developed the necessity to maintain quality and price, which completely redress the opportunity to follow the traditional production method. Social changes are
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