 HRD UNIT I

 With the rise of industrial revolution in The 19th

century in Great Britain, machine took
precedence over Man.
 Many thinkers came up with various concepts
and theories how to manage these factories.
 FW Taylor’s Scientific Management
 But it lead to bureaucratisation of production
process and employer-employee relationship
was based on distrust.
 Many thinkers started questioning Scientific
Management and started working on the
concept of human relations and human
resources.
 Eg Elton Mayo of HBS
 Scientific Management was superseded by
more democratic and humanistic approach to
management.
 Man became equally important to machines
 It was felt that socio-psychological factors
have to be considered for managing people
 Economic and social changes were taking place
 After WW II economies started improving
 Larger organisations started forming with more
thrust on efficiency
 The earlier narrow concept of personnel
management that humans are motivated by
comforts and salary, gave way to a more
broader concept of motivation
 It was now being accepted that PEOPLE contribute
to the organizations much more than any other
resource.
 Human started being considered as an ASSET
rather than a necessary evil.
 With globalization and integration of economies,
emphasis increased on creativity, commitment and
competence.
 This resulted in emergence of human resource
system in organizations.
 1885—1930: period of efficiency
 1930—1980: period of effectiveness
 1980 and onwards: period of excellence
 EXCELLENCE: doing superior things through
simple means
 Thus to excel and gain competitive advantage
organisations have to improve internal
capabilities through knowledge and creativity of
its people.
 late 19th century in the UK, concept of welfare
personnel known as 'Quaker tradition‘, taking
welfare measures for the workers, which resulted
in higher output.
 Other forms: provision of canteen facilities,
health schemes for workers, and creche for
children.
 Same provided under Factory Act, 1948.
❑ 50’s: emphasis on recruitment, payment
systems, discipline, training, timekeeping and
personnel record keeping. It extended to
salary administration, industrial relations, and
training.
❑ 60’s: extreme trade union militancy in the
UK and also in India, T&D of staff became the
focal point of interest as a tool for attitudinal
transformation. Importance of negotiation
skills, remuneration systems, relations
IR specialist had a delicate role
 personnel management entering into the
entrepreneurial phase

 taking on the challenge of the market

economy as well as the 'enterprise culture'.

 personnel managers were now involved in

issues related to:
◦ future direction,
◦ the existing business objectives vis-a-vis the
future,
◦ and achievement of the objectives.
 The period is also known as an era of
preoccupation with:
▪ management of change,
▪ Building corporate culture,
▪ acceptance of Japanese practices related to
industrial relations, e.g. one union for one industry
and quality circle and total quality management
(TQM).
▪ Collective bargaining shifted from plant level to
corporate level.
 Demand for specialists in HR has increased in
industry and other organizations with rising
complexity in managing people.
 Understanding the people on the job has assumed
centre stage of late.
 Employers needed to keep the workforce satisfied
for improving productivity and eliminating loss of
man-hours for any reason, whether due to work
stoppages of any kind or even due to accidents.
 Development of the service industry like hotels,
tourism, education and entertainment, etc., has also
resulted in the demand for trained HR managers.
 There are also other factors which are ascribed to
the rise in the demand for trained and experienced
HR professions, such as opening up of the Indian
market as a result of the change in the government
policies which has resulted in the entry of the
MNCs.

 This has resulted in intense competition for the

Indian industry and CEOs are attaching more
importance to 'people management'.

 'People power' being considered the fountainhead

of all ideas, organizations are making better use of
human resource for competitive advantage.
 The literature on excellence suggests that
employee’s values and philosophies should
be guided by and be consistent with the
strategies proposed by the organization.
 HRD is fundamental in generating these
desired outcomes.
 To be successful organizations are
developing its human resources to their
fullest potential.
 Inspiration for HRD for western organizations
has come from the success of Japanese
companies.

 Japanese management’s success was based

on high standards of performance which was
further dependent on a highly trained and
developed workforce.
 Organisations are driven by human capital and it is crucial
to have a scientific look at this factor of production .

 The most exciting breakthroughs of the 21st century will

occur not because of technology but because of an
expanding concept of what it means to be human.
 difficulties in recruiting skilled, competent managers;
 the need to develop a more flexible and adaptable skill
base;
 demand for leadership and team building skills at all
operational and administrative levels;
 requirement for all organizational functions to adopt a
strategic focus;
 the need to integrate the potential of all employees
with business objectives;
 the increasing necessity for human resource and
succession planning.
1. New technology
2. The drive for quality
3. New competitive arrangements
4. More flexible and responsive organization
5. Supply of resources
 – Technical changes in products processes
and information systems;
– Redesigned managerial work;

– Decision support systems eroding the difference

between technical and general managers;

– More information, power and knowledge at lower

levels;

– Market need for more rapid product development.

– Business pressures for higher quality
design of products and delivery of
service;
– deeper understanding of international
customer supplier workings;
– Knowing how to deliver what the
customer wants.
– Changes in regulatory contexts such as
privatization, deregulation, etc.

– Increase in strategic alliance and joint

venture arrangements;

– Increasing number of acquisitions,

mergers, takeovers and diversifications.

– Globalization” of business markets;

– Decentralization in organizations;

– Moving away from bureaucracies;

– performance improvement pressures ;

– Reduced rules and formalization,

– Accelerated movement of firms through

start-up, maturity and decline stages.
◦ Educational provision unable to match organizational
demand;

◦ Long-term shift from a buyer’s to a seller’s labour

market in specific regions of the country;

◦ Growth of the “me” culture with demand for individual

development.

◦ Demographic pressures reducing the supply of human

resources;

◦ to manage with what is available;

 replacement of the words “training cost” with
“investment”.
 HRD acts as a triggering mechanism for the
progression of other HRM policies that are
aimed at recruiting, retaining and rewarding
employees
 HRD harbours the prospect of unleashing the
potential of all employees.
 Emphasis on the internal labour mkt i.e. growing
your own employees.

 Managerial and company commitment to HRD

and the culture or climate of the organisation are
important influences on HRD initiatives adopted
by an organisation.
 In 1970 Leonard Nadler published a book
“Developing Human Resources’, in which he
coined the term HRD.

 Nadler’s model of HRD started with training but

later he differentiated training from learning.
 HRD is an organized learning experiences
 provided by the employer,
 in a specified period of time
 for the purpose of increasing job
performance and providing growth for
individuals.
(Nadler and Nadler, 1989)
 ASTD estb 1945
 The American Society for Training and
Development (1990) contends that HRD includes
◦ training and development,
◦ organization development and
◦ career development.

◦ Since 2014 ASTD is called Association for Talent

Development (ATD)
 HRD is about:
◦ developing people as part of an overall human
resource strategy.
◦ It involves the provision of learning experiences in the
workplace in order that business goals can be
achieved.
 Objective of HRD is to:
enhance skills, knowledge, learning ability and
motivation of employees at all levels for continuous
organizational as well as individual growth.
(Harrison, 2003)
 Frank (1988), investigated the theoretical base of
HRD in order to distinguish it from other fields.

 He identified three assumptions on which it is based:

1. HRD is based on research and theories drawn from the field of

adult education and is different from the learning that occurs in
children.
Learning is based on creating the appropriate circumstances in
which adults can learn and thereby change behaviour.
2 HRD is concerned with improving performance within the work
environment and not with improving people's health or their
personal relations with their family.
3.HRD utilizes the theories of change and how these relate to the
organization.
Change affects individuals, groups and the organization and HRD
is predominantly concerned with the change of individuals.
 HRD means building three Cs –
 CAPABILITIES,
 COMMITMENT AND
 CULTURE.

 Capability building requires developing the

knowledge and skill of the person.
 Capability has to be supported by commitment:
◦ it comes through desire to excel, positive attitude
towards work, co-operation, involvement and concern
to one's own self and society.

 Culture is the way of life. It involves creating an

awareness of what is ideal and desirable.
1 Evolution of HRD in the world
2 Evolution of HRD in India
1. Emergence of apprenticeship training program
and collective bargaining mechanisms
2. Emergence of Vocational training program and
Factory schools
3. Emergence of Training program for skilled and
semi-skilled workers
4. Emergence of Training as a profession
 In 18th century in America, small shops
were operated by skilled artisans.
 They produced almost all household
articles like utensils, furniture, shoes,
clothing etc.
 It was a one man show at the beginning.
Later, when the demand for the products
increased, these shop owners appointed
additional workers.
 As there were no schools available to train
the workers the shop owners themselves
had to educate the workers.
 Thus the skilled artisans, who were the
shop owners, also turned into trainers and
trained the trainees or apprentices who
learned the craft for very little wages.
 Apprentices who mastered all the crafts were
considered as "yeomen".
 But as these yeomen were paid very little wages
they were unable to put up sufficient funds to
put up a shop of their own.
 The growth in business led to the development
of number of yeomen by the craftsman.
 In order to tackle the growing number of
yeomen master craftsmen established "craft
guilds" to regulate aspects relating to working
hours, wages, and apprentice testing
procedures, etc.
 These craft guilds also grew in power, making it
still more difficult for the yeoman to establish
their own craft shops.
 Yeomen, on the other hand, counter-
balanced the powerful craft guilds by
establishing ''Yeomanaries''.
 This yeomanry served as a collective voice in
negotiating higher wages and better working
conditions from the craftsmen.
 Modern labour union movement has its start
here
 Dr. W H. Clinton, in 1809, estab the first recognized
privately funded vocational school in New York to provide
occupational training to unskilled young people who were
either unemployed or had criminal records.
 These were the prototype for the vocational education of
the present day.
 with the advent of Industrial revolution machines began
to replace the hard tools of the artisans and Scientific
management principles gained importance.
 The products produced by semi-skilled workers using
machines were more in quality and quantity than that of
products produced by skilled workers in a small craft
shop.
 This was the beginning of the factory system.
 Due to the growth of factories, there was
demand for skilled workers, engineers,
mechanics and skilled mechanics to design,
build and repair the machines.
 The supply of skilled workers from vocational
schools was not sufficient for the growing
demand for the workers from the factories.
 So to meet the growing demands, factories
created factory schools that offered mechanical
and machine training programs
 The first Factory school was started by Hoe and
company in New York in the year 1872
 Followed by GE, Baldwin Locomotive in 1901,
International Harvester in 1907, etc.
 This school's training program differed from
early apprentice program in that they were
shorter in duration and had a narrower focus on
the skills needed in a particular job.
 In 1913, Ford motor company came up with Model T
cars.
 This was the first mass produced car using an
assembly line and were thus affordable to a larger
segment of the public.
 This resulted in greater demand for these cars and
Ford increased its production by designing more
assembly lines.
 The company needed semi-skilled workers for its
new assembly lines.
 Also by that time most of the automobile
manufacturers also copied Ford's production design
resulting in more demand for semiskilled workers.
 Further, with the outbreak of the First WW, all
factories which produced non-military goods
had to retool their machinery and retrain
their workers including the unskilled workers
to manufacture military items.
 Charles Allen, director of training of the US
shipping board, introduced a four step
instructional training method called as
"show, tell, do and check" for all the training
programs offered by the shipping board.
 Later this technique was called "Job
Instruction Training "(JIT). It is being used
even today for training workers.
 The outbreak of the Second WW forced
industries to retool their factories to support
the war effort.
 To help in this process, the US government
established Training Within Industry (TWI)
service to coordinate training programmers
across defense related industries.
 TWI also trained company instructors to teach
their programs at their plant.
 After the end of the WW, TWI had trained
around 23,000 instructors and 2 million
certified supervisors.
 Many defense related companies established
their own training departments with the
trained instructors from TWI.
 These departments were responsible for
designing, coordinating and implementing
training programs across their organizations.
 In 1942, the American Society for Training
Directors (ASTD) was formed to establish.
some standards within the emerging training
profession.
 Members for this society were people who
had experience in training or related field or a
college student related to this profession.
 Transformation in the role of professional
trainers started during 1960s and 1970s.
 their role was not only to train employees but
also to coach and counsel employees.
 This additional enhancement of role led to the
renaming of the society as American Society
for Training and Development (ASTD).
 During 1970s and 1980s, several
conferences were organized by ASTD
discussing the emerging field of Training
and Development.
 This resulted in ASTD approving the term
HRD in recognition for the growth and
development in that field.
 Developing HRD in L&T (1975)

 The Human Resource Development as a

Function has evolved in India very
indigenously from the year 1975 when Larsen
& Toubro Company conceptualized HRD as an
integrated system and decided to separate it
from Personnel as suggested by TV Rao and
Uadi Pareek
 Since then, in the last 45 years most
organizations have started new HR
Departments or re-designated their Personnel
and other departments as HRD Departments.
 Developing HRD in L&T , 1975, by TV Rao and
Uadi Pareek
 Followed by SBI in 1976
 Bharat earth Movers, bangalore, 1978
 First HRD workshop in 1979, at IIM A
 GOI also estb separate HRD ministry in 1986.
➢Crompton greaves
➢Jyoti ltd
➢TVS
➢Voltas
➢Sundaram Fasteners Ltd
➢BHEL
➢Bank of Baroda
➢IOC
➢SAIL
 The Indian Society for Applied Behavioral Sciences
(ISABS) conducts the first HRD facilitators program in
Bangalore as a part of their summer event, using
laboratory methodology.
 1980: The first program of HRD managers started at
IIMA to prepare HRD managers for HRD roles.
 1985: A national HRD Network is conceived and an
HRD Newsletter started from XLRI Jamshedpur and
IIM, Ahmedabad to promote the HRD in the country.
 1988: ISABS, along with the National HRD Network
starts offering laboratory-based education for HRD
professionals with the title ‘HRD Facilitators
Program’.
 ‘If you create an environment where people
truly participate, you don’t need control’.
Herb Kelleher,
CEO of Southwest Airline.
 (The more people devote themselves to your
cause on a voluntary basis, few hierarchies
and control mechanisms you need.)
❖ Wipro takes the idea of teaching, training,
and developing people very seriously indeed.
❖ Azim Premji notes that over 40% of Wipro’s
revenue is spent on compensation and 6% of
its compensation is invested in teaching.
❖ The company runs a T&D unit which is about
three times the size of IIM A.

 ‘I believe helping people in building their

careers by paying careful attention to their
development is very important’. .
Azim Premji
 G V Prasad, CEO of Dr Reddy’ Lab mentors his
juniors in a systematic way.
 He extends his mentoring efforts to cover large
number of young manager by appointing them as
his executive assistants and providing them an
opportunity to observe him and learn.
 This has enabled him to develop a pool of
competent managers in his company.
 Every few months he appoints new managers and
sends the one he has already mentored to other
departments.
 This also creates a positive culture.
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 socializing the new employees into the
organization,
 providing the required skill and knowledge,
 helping the individual and the group to
become more effective in the present job
 and developing them to handle future jobs
in an equally efficient manner.
 improving the quality of human life,
 capabilities, skills, attitudes of people which
are more useful to the development and
nation's overall
 Line authority is given to managers and organizational units
that are directly responsible for the production of goods and
services.
 Staff authority is given to organizational units that advise and
consult line units
 Traditionally, HRM functional units, including HRD, have staff
authority.
 In general, line authority supersedes staff authority in matters
pertaining to the production of goods and services.
 For example, suppose several trainees miss training sessions
because their supervisor assigned them to duties away from
the job site. Can the HRD manager or trainer intervene and
force the supervisor to reassign these employees so that they
can meet their training responsibilities?
 Training is providing the knowledge, skill and abilities
required for an individual to perform a specific job or
task.
 T & D function starts right from the time an employee
joins an organization and continues until he leaves the
organization.
 At the time of joining- orientation training. It
includes, input as to the norms and values of the
organization and how to function within the job.
 The HRD staff and the hiring supervisor generally
share the responsibility for designing the orientation
process, conducting general orientation sessions, and
beginning the initial skills training.
 Later, one is put to technical or skill training
which helps him to develop the skill needed to
perform the job.
 It has narrow scope i.e. to teach the new
employee a particular skill or area of knowledge
 Once new employees have become proficient in
their jobs, HRD activities should focus more on
developmental activities— coaching and
counseling.
 Providing Management t&d programs to ensure
that managers and supervisors have the
knowledge and skills necessary to be effective
in their positions.
 Development deals with preparing the
individual to perform the current job in a
better way and also to handle future
responsibilities.
 Once an employee is set in the job, HRD
activities focuses on the development aspect
for the individual.
 Development may take the form of coaching,
counseling, and putting an individual through
different management development and
training programs .
 HRD provides learning and growth to
individuals and groups through 3 specific
activity areas :
❑Training
❑Education
❑Development
 learning for improved performance of the
individual in the present role; (TRAINING)
 preparing an individual for an identified role
in the not-too-distant future; (EDUCATION)
 assisting an individual’s general growth and
development, not related to any specific role.
(DEVELOPMNT).
 The philosophical foundation of training is
derived from the concept of change by
learning.
 Training serves:
◦ to increase upward mobility within the organization,
◦ to adjust workers to the technological changes
affecting the workplace, and
◦ to introduce people to the world of work at the entry
level
 is the function of helping employees to do their
present jobs.
 Increment in the person’s knowledge & skills.
 Nadler and Wiggs (1986): Training activities
focus on learning the skills, knowledge, and
attitudes required to initially perform a job or
task, or improve upon the performance of
current job or task
 training is concerned with equipping and/or
exposing personnel to a new set of knowledge
and skills;
 training is a tool for behavioural and/or
attitudinal change;
 organization productivity is undoubtedly the
ultimate objective of any training system, and
is achieved by increasing the potential
performance of individuals.
 It is a long-term oriented undertaking,
 which focuses on learning new skills,
knowledge and attitudes
 that will equip an individual to assume a new
job or to do a different task at some
predetermined future time.

 Education: knowing about a skill

 Training: making a person skilful.
 is oriented to both the person and the
organization.

 Major concern is towards future.

 Similarity between training and development:

◦ Both involve a learning experience
◦ Change is also a common ground of both
 the learning methods used to execute them
are different.
 Training: lectures, practical sessions and/or
exercises and workshops,
 Development: job rotation, learning centres,
available literature etc.
 Development is employee self-initiated and
voluntary. The role of the organization is
primarily to provide the opportunity and the
incentive, as in the case of learning centres.
 Training is a short-term organizational
concern, which involves helping employees to
execute their jobs.

 Development on the other hand, is concerned

with an employee’s future responsibilities
and/or job.
 If the goal is to improve performance on the
present job, then training must be
conducted, and evaluation should be made
in terms of improved performance.
 If education is the goal, then we cannot
evaluate performance until the individual
moves to the new job.
 If the objective is development, we should
not expect a change in performance as, by
definition, development is not job related.
 If the intent is development, then job
skills are not relevant to that
particular learning program.

 If the intent is education, then

provision must be made for
reinforcement, as the learner will not
be using the learning immediately but
at some future time.
 Responsibility for :
◦ Training: will be with the immediate supervisor,
◦ Education: at the managerial level, for they are the
ones who know the future direction of the organization
and the human resource needs.
◦ Development: with the higher managerial or executive
levels. They should be concerned with the general tenor
of their work force at all levels and interested in
providing growth for the long range.
 OD is about applying behavioral science
concepts to bring about planned change in
the organization.
 Its aim is to bring about organizational
effectiveness by indulging in micro and
macro level changes.
 Micro level changes are Team-building,
Conflict resolution etc.
 Macro level changes are, Cultural
transformation etc.
 Amongst these changes, HRD professionals
role is to act as a change agent.
 Ascertains the psychological health of the
organisation
 Efforts are made to improve organizational
health of the organisation through various
means in order to maintain a conducive and
productive climate.
 accomplished by means of periodic
employees syrveys.
 It includes Career planning and Career Management
 CP involves activities performed by an individual to
assess his skills and abilities.
 CD is a process by which individuals progresses
through a series of stages each of which is
characterized
 CM involves all the steps taken to achieve this career
plan.by a relatively unique set of issues themes and
tasks.
 Individuals can progress in their career through
proper training and development.
 Organizations are now planning their T & D programs
not only with the organizational point of view but also
according to the individual career growth needs.
 various thinkers and professionals have
given divergent views and designed the
mechanism of HRD in different ways.

 T.V. Rao’s opinion that HRD sub-systems

comprise: performance appraisal, potential
appraisal, career planning, training,
performance coaching, organisation
development, employee welfare, rewards,
qualities of work life and human resources
information systems.
 Udai Pareek refers to performance
appraisal, feed-back, counseling, potential
appraisal, career advancement, career
planning and training as dimensions of
HRD.

 M.S.S. Varandan traces HRD mechanism

into performance appraisal, role analysis,
organisation development and quality
circles
 determining and assessing that the
organisation will have an adequate number of
qualified person,
 available at proper time,
 performing jobs which would meet the needs
of the organisation and
 which would provide satisfactions for the
individuals involved.
 It is an endeavor to watch demand and supply.
 It involves:
◦ Estimation of present and future requirements and supply
of human resources based on the objectives and long-term
plans of the organizations.
◦ Calculation of net human resources requirements based on
present level of human resources.
◦ Initiating steps to change, mould and develop the existing
human resources to meet the future human resource
requirements.
◦ Planning the necessary programme to get the rest of
human resources from outside the organisation and to
develop resources of existing employees.
 Role studies may be used:
◦ to define a role more clearly so as to avoid
ambiguity in the expectation from that role
◦ to increased accountability, and
◦ to develop a feeling of significance among the
occupants of the roles.
 They are performed by the HRD person in
order to carry:
◦ out appraisal,
◦ identify training and development needs of the
role occupant etc.
 Once roles are analyzed, other such systems
may follow.
 develops the new employees to contribute more quickly
to the business.
 Motivate people to become productive in the shortest
time and to stay with the organization.
 It begins with telling new employees about the
industrial safety, security, health, comfort and welfare.
 Subsequently, they will be made aware of the role and
responsibilities expected of them.
 Finally, they would be shown their role in the team and
how they can make a contribution to the organization
and its objective.

 What is the difference between induction training and

socialization?
 It is a process that provides an analysis of a person's
overall capabilities and potential, allowing informed
decisions to be made for particular purposes which
includes:
◦ Clarifying expectations and reducing ambiguity about
performance
◦ Improving individual performance
◦ Determination of rewards
◦ Improving motivation and morale
◦ Identifying training and development opportunities
◦ Selecting people for promotion
◦ Managing careers
◦ Counseling
An HRD oriented performance appraisal is used
as a mechanism for supervisors to:
 Understanding and removing the difficulties of
the subordinates.
 Understand the Strengths and Weakness of the
subordinate and help the subordinates to
realise them.
 Help the subordinates to become aware about
there positive contributions.
 Encourage subordinates to accept more
responsibilities and challenges.
 Help subordinates to acquire new capabilities.
 Plan for effective utilization off the talent of
the subordinates.
 In an HRD oriented organisations, the potential
of every employee is assessed periodically.
 Such assessment is used for developmental
planning as well as for placement.
 A dynamic and growing organisation needs to
continually review its structure and systems,
creating new roles and assigning new
responsibilities.
 Every year or two, the supervisor of a group of
employees assesses the potential of each of
them to perform differently. (usually higher
levels).
 An ideal way of judging a person’s potential
would be to try the person on each job for
which potential is being assessed.
 If not feasible, then simulations/ assessment
centres
 Helps in determining an employee's strengths
and weaknesses with a view to use this as a
predictor of his future performance.

 Helps in determining the promotability of an

individual to a higher position and to chalk out
his career plan.

 The fundamental difference between reviewing

performance and assessing potential is in the
criteria used.
 It refers to the help provided by a manager (
guidance) to his subordinates in analyzing
there performance in order to increase
effectiveness.
 Pt appraisal can become development
oriented only when it is followed by proper
PC.
 Focus is on identifying developmental needs
of the employees.
 In HRD organisations, every supervisor has
the responsibility to ensure the development
of subordinates.
 Scheduling individual meetings to discuss
performance communicating performance
areas that need attention jointly establish
the goals to be achieved by the next
scheduled discussion.
 Quarterly or half yearly.
 Shridhar is the branch manager of a bank. He has been observing one of
the clerks to make mistakes repeatedly in his work. First time when he
noticed the mistake he overlooked it. Second time he noticed Ramu to
make a similar mistake he felt upset but did not say anything to Ramu.
Third time he found a similar mistake he grumbled and told one or two of
his confidants in the branch how useless the clerk was. Some of them
advised him to give the clerk a bit of his mind.
 Fourth time Ramu made a different mistake he called him to his room
and shouted at him by saying, “I am not happy with your work, you must
work like others and improve. You should be very careful in your work
and I cannot tolerate any mistakes. You must learn to improve”.
 Ramu was new to the branch so he did not say a word to the boss. He
was upset and felt too shy to ask the branch manager what his mistake
was. In fact he did not even know that he made a mistake for the fourth
time. Depressed he shared his feelings with a friend in the branch who
told him this branch manager is like that only. He keeps looking for
somebody or other who keeps making mistakes. Don't worry we have
become accustomed to this and don't take it too seriously as he cannot
do anything beyond shouting at you

The accountant brought to the notice of the branch manager
Shrinivasan a mistake made by the clerk. First time the mistake was
brought to his notice, the branch manager called for the clerk Prabhu to
his room. He knew that the clerk is new. He showed him the ledgers
told him that he made a mistake and ask him to find it out. Prabhu found
it out fast and said, “sorry sir I did it in a hurry. Next time I will be
careful”. A few days later Prabhu made another mistake on altogether
different issue. The branch manager called him again to his office and
gave him the papers and asked him to find his mistake. This time the
clerk could not find out the mistake. The branch manager then
explained to him certain procedures to be followed and pointed out the
error to him. The clerk at this time, “thank you sir, now I know what to do
under such circumstances”. The third time prabhu made a different
mistake the branch manager called him again and asked him to find out
his mistake. The clerk said, “sir I myself was doubtful on this so I
consulted Mr X who is sitting next to me and that is how I did it this
way”.
 The branch manager called Mr X also and explained to both of them
what is wrong with their way of dealing with that issue and showed
to both of them instructions from the central office explaining in
detail what to do under such conditions. A few days later the branch
manager found the clerk to approaching him quite frequently to see
clarifications. Sometimes he clarified himself, sometimes he gave
literature to read and sometimes he referred him to the accountant.
 A few months later the clerk stopped seeing the branch manager.
The branch manager wondered. One day he called him to his room
and asked him if he is having any difficulties. The clerk replied,
“thank you sir now I know most of the things. I am confident and that
is why I am not consulting you. If someone new joins I can even
train him up but please do tell me if I am not doing anything upto the
mark”.
 He admired the branch manager and branch manager liked him. For
that matter most of the stuff liked the branch manager
 Engages senior management in a review of
leadership talent.
 Guides developmental activities of key
executives.
 Assures continuity of leadership
 Avoids transition problems.
 For overall development of the employees
and better quality of work life
 QC, information sharing, participative forums
etc.
 A self-governing group of workers with or without
their supervisors constitute a quality circle who
voluntarily meet regularly to identify, analyse and
solve problems of their work field.
 The circle groups meet and discuss issues and
problems relating to their work unit and their own
jobs.
 In addition to the quality circles, there are
facilitators, coordinators, and the steering
committee who play their respective roles at
various stages of functioning of quality circle.
 The objectives of quality circle are:
◦ To develop, enhance and utilize human resource
effectively;
◦ To satisfy the worker’s psychological needs to
motivate them;
◦ To improve supervisory skills of employees like
leadership, inter-personal and conflict resolution;
and
◦ To utilize the skills through participation,
creating and work interest including problem-
solving techniques etc.
 It is systematic way of storing information
and data for each individual employee to
aid planning, decision-making and supply
of returns to external agencies.
 A variety of records are maintained to meet
the manpower planning, recruitment,
development of people, compensation,
integration and maintenance and
separations not only for internal control,
feedback and corrective action, but also to
meet the various statutory obligations.
 Human Resource Systems

Major functions of systems:

 Personnel records, benefits,
compensation, labor relations, training

Major application systems:

 Payroll, employee records, benefit
systems, career path systems, personnel
training systems
 Human Resource Systems

SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL

TRAINING & DEVELOPMENT TRACK TRAINING, SKILLS, APPRAISALS OPERATIONAL

CAREER PATHING DESIGN EMPLOYEE CAREER PATHS KNOWLEDGE

COMPENSATION ANALYSIS MONITOR WAGES, SALARIES, BENEFITS MANAGEMENT

HUMAN RESOURCES PLANNING PLAN LONG-TERM LABOR FORCE NEEDS STRATEGIC

Human Resource Systems
 identifies the interrelationships between HRD
instruments, processes, outcomes and
organisational effectiveness.
 HRD instruments include:
◦ performance appraisal, counselling, role analysis, potential
development, training, reward system 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.
 performance and potential appraisal help to assess and
determine the competence required for job performance.
 Review, discussion, feedback, counseling help in building
trust and better senior- subordinate relations.
 Role analysis exercises result in role clarity.
 Training and potential development exercises have proactive
orientation.
 OD exercises help to mange change and problems in the
organization, promotes openness, effective communication,
inter-departmental collaboration in the organization. It aims
at providing a climate for human growth and development.
 Such HRD processes should result in HRD outcomes
like: more competent, satisfied and dynamic people
who are likely to do better.
 These HRD outcomes influence organisational
effectiveness:
◦ High productivity
◦ Growth and diversification
◦ Cost reduction
◦ Increasing profits
◦ Better image
All the HRD processes are centered on
following SIX constituents:
 INDIVIDUAL: self management, competence,
advancement
 ROLE: optimum stress, linkages, autonomy.
 DYAD: trust, communication, mutuality
 TEAM; cohesion, resource utilization
 INTER TEAM: cooperation
 ORGANISATION: growth , impact, self renewal
 A management innovation like HRD can be
initiated and institutionalized only with the
deep commitment and involvement of top
management.
◦ Explain how managers can manage
downsizing.
◦ Discuss how managers can manage
workforce diversity.
◦ Explain what sexual harassment is and what
managers need to know about it.
◦ Describe how organizations are dealing
with work-life balances.
◦ Post pandemic issues
 Development HRD Sub-systems
Dimensions
Training Career planning Potential appraisal
and development
Individual Feedback and Rewards Potential appraisal
coaching performance and development
Individual in the Performance appraisal Training rewards Feedback and
present role performance coaching
Individual in regard to Potential appraisal Training Performance appraisal
likely future role and development feedback and
performance coaching
Dynamic relationships Feedback and Performance appraisal Training
performance coaching
Teams and team work Organisation Training Team rewards
development
Collaboration among Organisation Training
different units/teams development
Self-renewing Performance appraisal Organisation Training
capacity and health of development
organization
 HRM
- deals with optimum utilisation of human capital
and is integrative & supportive

 HRD
- deals with development and up gradation of
human capital.
- is the process by which corporate management
stimulates the motivation of employees to perform
productively.
 HRM HRD
•maintenance oriented •development oriented
•organisation structure is •creates a structure, which is
independent interdependent and inter-related.
•Main aim is to improve the •development of the employees as
efficiency of the employees well as organisation as a whole

•Responsibility lies with human •Responsibility lies with all

resource management department managers at various levels of the
organisation.
 Hindustan Unilever has given over 500 CEOs to
corporates across the world.
 the secret behind this remarkable consistent
leadership factory is their BLT program. (buss
leadership training)

 HUL's leadership-building potential was

recognized when it was ranked 4th in the
Hewitt Global Leadership Survey 2007 with only
GE, P&G and Nokia ranking ahead of HUL in the
ability to produce leaders with such regularity.
 The Management Training Program (year
1950).
 subsequently rechristened the Business
Leadership Training Program (year 2001)
 and now called the Unilever Future Leadership
Program
 Recruitment of management graduates from
Top B-schools of the country, like IIMs, FMS
Delhi, XLRI,ISB, JBIMS etc every year, in the
realm of Marketing, Finance, HR and IT; also
engineers from Tier 1 engineering colleges
like the IITs and IT BHU; top ranking
CA/ICWA.
 All recruits are taken into BLT Program, which
is a robust fifteen months training program,
post which they are placed as managers in
their respective functions.
 Trainees get in-depth functional as well as cross-
functional exposure through various stints,
 They travel through out the country and outside to
understand company values and ways of working
while they undertake live projects in each stint.
(villages of North India to factories in Brazil).
 There are senior coaches, mentors and tutors
assigned to each intern, ensuring that the learning
objectives of each stint are met, and suggesting
any course correction which may be required for a
particular intern.
 The BLT program is driven from the board.
 HR facilitates the process and partners with
the leadership team in ensuring objectivity
and fairness of the process.
 Apply rigorous processes and HR practices in
place to identify, monitor and nurture key
talent or high potential employees.
 The program Consists of a number of stints
 Stints:
◦ certain core stints: aligned to functional area of
specialization in order to give a comprehensive
exposure of respective.
◦ cross functional stints: help to understand how each
functional area links up with the company's overall
plans
◦ a 4 week long CSR stint
◦ and even a 6 week long international stint.
 Starts with a 19 week sales stint.
 followed by 6 weeks in Customer marketing, 13
weeks in brand Management, one week in a
factory, four weeks in a village in Rural India and
a six week assignment in a Unielver Company
overseas.
 The training culminates is a 13 week period of
sub-charge post which a trainee appears for a
confirmation interview.
 Starts with ten weeks in a Factory.
 four weeks in sales, three weeks in a branch,
three weeks in a regional HR role, six weeks in a
Business HR role, two week working with the
Service Delivery Team, four weeks on Central
Employee Relations, four weeks in a village in
rural India, six weeks as part of the Leadership
Development Team and a six week assignment in
a Unilever company overseas.
 ends with a 13 week period of sub-charge post
which the trainee will attend a confirmation
interview.
 The company invests an enormous amount of
time in the first 3-5 years of the employee to
understand their strengths and identify who
needs to be nurtured for the future.
 Identifying ‘talented people’ and ensuring hat
they occupy ‘right jobs’ in the organization to
maximize their potential.
 to nurture talent which is aligned to business
realities, ‘Standards of leadership’ framework
has been adopted.
 https://www.tatasteel.com/careers/work-at-
tata-steel/leadership-development/
 Infosys human capital management
 Top management
◦ change attitudes and cultural values within the
organization.
◦ areas such as disposition to change, teamwork and
innovativeness.
◦ contribution to improving performance, creating a
committed workforce and facilitating change initiatives.
◦ Many top managers point to the role of training and
development as a strategic lever for the achievement of
organizational objectives.
 Line managers :
◦ skill-based and centred on the current job.

 Training and development specialists:

◦ Self development, career development, and
management development.

 Individual employees:
◦ Mobility, the avoidance of skill obsolescence, and
opportunities to attain some form of certification.
 Competent people
 Job attitude
 High Work Commitment
 Job involvement
 Job Satisfaction
 Developed roles
 High motivation
 Good team work/project completions
 High problem solving orientation
 Respect for each other
 Learning culture
 There is an important link between business
mission and planned learning experiences.
 Every major plan of the organization can be
weighed in terms of human skills available to
implement it and alternative ways of obtaining
those skills.
 Training & development and other alternative
ways can be used to find these skills and the
“where” and “how” of obtaining these skills.
 People at all levels in the organization share
responsibility and accountability for training and
development.
 Planned learning is an essential component of
every employee’s job.
 Managers, supervisors and employees should be
evaluated on how well they develop themselves
and contribute to the development of others (Pay
decisions, promotions, transfers).
 There is formal systematic and holistic planning
processes within the organization, because:
◦ Training and development will have difficulty in
supporting organizational goals unless all plans are
articulated clearly.
◦ Such planning processes will furnish opportunities for
linkages and information sharing.
 Philosophy refers to the systems of beliefs
and values which training and development
practitioners possess.
 Many practitioners believed the most
appropriate philosophy for HRD was to
prepare employees to develop specific
skills necessary to perform effectively in
their current and future jobs.
 To help employees recognize and realise
their full potential as human beings.
The underlying assumption of various HRD
approaches is ‘that HRD values help impart
dynamism and vitality to organizations; that
they help tap the initiative and creativity of the
workforce, through clarity of goals, result-
orientation and team spirit’.
 the traditional approaches to HRD: reflected
in the people related policies of Tata Iron and
Steel Company (TISCO)
 the Gandhian approach of trusteeship that
industrialists such as G.D. Birla and Jamnalal
Bajaj espoused.
 the modern approach to HRD: largely based
on the behavioural sciences that evolved in
USA and UK.
 Top-down approach: comprehensive HR plan is
developed at the top which guides the HRD
effort to be adopted.
 Career Planning approach:
◦ individual career plans are taken into account;
◦ HRD practitioners estb individual development
program and identify learning experiences that will
facilitate the achievement of career objectives while at
the same time helping the organisation to implement
its business plans.
 Performance diagnosis approach:
◦ to examine the organisations internal strength and
weakness
◦ Use of T&D interventions in light of the S&W
identified,
 Artificial experience approach:
◦ HRD practitioners identify what the future holds,
◦ prepare description of future condition,
◦ put managers thru a range of exercise,
◦ Discuss the results and guide managers to discover
the future learning needs of the organisation.
◦ Designing learning interventions to produce
artificial experience.
 Education approach:
◦ More emphasis on education, teaching theories of
management.
 Marketing approach
 Organisational climate estimation would
determine the extent of HRM and its
effectiveness.

 This would then form the basis for HRD

strategies.
 What changes in skills and competences are
required to support improved job performance
in specific individuals?
 What are the particular deficiencies in
performance that need to be addressed?
 What changes in technology production
processes and organization culture are
dependent on employees learning something
new?
 What current opportunities are provided to help
staff acquire new skills?
 Who has responsibility in the organization for
ensuring that the appropriate learning
opportunities are provided?
 How can managers and employees be
persuaded to see that continuing training and
development is the form rather than the
exception?
 What changes in the general behaviour of
staff would improve their job performance or
that of others?
 What have we learned from our previous
experiences with training and development?
 What specific mistakes have we made and
what are their implications for learning?