1

Lesson: 2

HRM functions

Contents:

Elements of HRM functions

Importance of HRM functions
Personnel functions
HRM vs. Personnel Functions
HRD Instruments
HRD Processes
HRD Outcomes
Appendix: 2 Articles on HRD

Learning Objective this Unit

By the end of this Unit, you should be able to:

Give concise definition for HRM functions.

1. Clearly articulate the difference between HRM and
Personnel philosophy and functions.
2. Describe the various instruments/functions of HRM.
3. Know the processes resulting from the instruments
and the final outcomes.

MS 22B - Eddie Corbin, Lecturer 2

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Dear students, hope the first lesson gave you a fair idea of what the field of HRM holds for us.
Today let us know a little bit more about the same. You all keep hearing about personnel
management. You must be wondering what’s the difference between personnel management and
HRM and what is HRD?? So in this lesson we are going to tackle the same question. Let us
begin by having a systemic view of HRM .Let us understand this with the help of a slide:

Stakeholder Interest
•Shareholders
•Management
•Employees
•Government
•Community
•Unions HRM HR Long-Term
Policy Outcomes Consequences
•Employee •Commitment •Individual
Situational Factors influence well-being
•Competence
•Workforce •HR flow •Congruence •Org.
Characteristics •Reward •Cost- effectiveness
•Business strategy systems effectiveness •Societal
•Management •Work well-being
philosophy systems
•Labour market
•Unions
•Task environment
•Laws/social values

Systemic View of HRM

Can anyone come and explain this slide?

Now let us proceed by understanding the following:

Elements of HR functions
Importance of HR functions
Personnel functions
HRM versus Personnel functions
HRD instruments
Processes, and finally
Outcomes!!!

Functions of HRM

After the analysis of HRM objectives from the last lesson, it is simple to state the functions of HRM. The
functions are performed to realize the objectives of the HRM. Now let us analyze the functions of the HRM to
get an greater understanding.
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HRM as you know by now involves the embracing the dimension of people. It involves selection, motivation,
and retention of the employees.

The functions are a mixture of behavior analysis, policy formulations and maintenance of
good interpersonal relations. In this lesson, we are going to focus on all of these functions: the
staffing, personnel management, or (as it's usually called today) human resource (HR) manage-
ment function. These include:

Conducting job analyses (determining the nature of each employee's job)

Planning labor needs and recruiting job candidates
Selecting job candidates
Orienting and training new employees
Managing Wages and Salaries (how to compensate employees) Providing
incentives and benefits
Appraising performance and Communicating (interviewing, counselling,
disciplining)
Training and developing
Building employee commitment
Equal opportunity and affirmative action
Employee health and safety
Grievances and labor relations

Thus if we view it closer we find that human resources management is responsible for the
following:

1.Promotion of organisational needs: This is a very crucial function of HRM. The organization
needs people human assets. People appreciate day by day with experience and are extremely
valuable assets in an organization.

HRM functions in this regard refer to planning of human resources, recruitment, placement,
motivation, training, assessments, appraisals etc., so that there is an effective contribution from
them to the organization.

2.Development of employees:

What does an employee brings with himself? He does not come alone. He does bring his
abilities, attitudes, personality, and behaviour with himself. An individual aims for development
and personal growth in the work sphere. Now what does an organization must do to develop and
encourage personal growth? Let us discuss in detail.

Firstly, the organization through its HR Department identifies the mechanisms for Growth. This
mechanism is known as assessment centre and is very popular procedure. Evaluation of
employees is done for manpower purposes and decisions are made .A Variety of techniques is
used. The behaviour observation leads to assessment and identification of strengths and
weaknesses.
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Apart from functions of Potential discovery , Training and Development of personnel

Assessment centres also lead to increase in information about organization and review of
policies.

Point To Ponder:
Is Development a one-time activity or is it an ongoing process?
3.Relationship maintenance function: HRM functions include maintenance of effective
interpersonal relations. In this context the functions of legal compliance, maintenance and
Industrial relations are done by HRM.

4.Empowerment: What do you understand by the term Empowerment? It is the provision of

greater freedom and discretion to employees. When employees are given freedom they work
effectively as a team and strive for the development and growth of the organization. The function
of empowerment leads to the prosperity of the organization.

Activity:
Find out the difference between Delegation and Empowerment

5.HRMs crucial function also includes Good and effective communication of policies.
Communication when streamlined effectively leads to excellent network building and growth.

6.Equality: Employees need to be treated with fairness and equality. HRM function of equal
policies and justice make sure that the employees are protected fully. Equality leads to well
trained and well-motivated employees.

7.Functions relating to job: What is a job? It is quite simple to define. It is the duty which one is
expected to do. An employee works well when the job matches with his expectations, abilities
and talents. Job Satisfaction is vital for all!!!

Usually, by Creating Job enlargement, Job enrichment and Job rotation, jobs are made
interesting.

Job enlargement of HRM leads to increase in the jobs at the same level.
Job rotation, as you all know, is giving people different jobs and training them. In this
way people become multi skilled. This is most common in banks.
Job enrichment leads to enriching the job with more responsibilities. Human needs are
many. But the most essential need is the need of self-actualization. This need motivates
him to work higher and achieve high goals inlife. Job enrichment is done to create
involvement, interest and also satisfy the self-actualization motive of the employee.
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Job enrichment can be done by enriching the job in relation to variety of skills, Significance of
tasks, Development of autonomy and access to Interpersonal relation.

With the changes in the economies and work force the functions of HRM are ever increasing.
HRM is coping up with economic reforms, diversified work culture, competition and societal
changes. Its role is becoming important day by day.

WHAT ARE THE HRM ACTIVITIES?

Organizational, work, and job

design
Planning
Recruitment and selection
Training and development
Performance management
Compensation
Occupational health and safety
Employee and labour relations

Importance of HRM functions:

Why are these concepts and techniques important to all managers? This point will very clear
to you if you see this example. As managers none of us would like to make the following:
mistake.
To hire the wrong person for the job
To experience high turnover
To find our people not doing their best
To waste time with countless and useless interviews
To have our company sued for our discriminatory actions.
To be quoted under bad example of unsafe practices
To have some of your employees think their salaries are unfair and inequitable
relative to others in the organization
To allow a lack of training to undermine your department's effectiveness
To commit any unfair labor practices

With the help of our knowledge of HRM practices and philosophy we can avoid making
these mistakes. More important, it can help ensure that you get results-through others.
Remember!! you could do everything else right as a manager-lay brilliant plans, draw clear
organization charts, set up modern assembly lines, and use sophisticated accounting controls-
but still fail as a manager (by hiring the wrong people or by not motivating subordinates, for
instance).
On the other hand, many managers-whether presidents, generals, governors, or supervisors have
been successful even with inadequate plans, organization, or controls. They were successful
because they had the knack for hiring the right people for the right jobs and motivating,
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appraising, and developing them. Remember managers versus leaders! Thus, the functions of
HRM hold an importance for all members of an organisation.

Personnel Function

Definition of personnel Management: let me narrate below a few standard definitions given by
experts of personnel management, which will give an idea of what it means.
“ It is that phase of management which deals with the effective control and use of manpower as
distinguished from other sources of power.”
“ The management of human resources is viewed as a system in which participants seek to attain
both individual and group goals”.
“ Its objectives is to understand what has happened and is happening and to be prepared for what
will happen in the area of working relationships between the managers and the managed.”
If an analysis is made of these definitions it will be seen that personnel (or manpower)
management involves procedures and practices through which human resources are managed
(i.e. organized and directed) towards the attainment of the individual, social and organizational
goals. By controlling and effectively using manpower rescues, management tries to produce
goods and services for the society.
Prof.Jucius has defined personnel administration as “ The field of management which has to do
with planning, organising, directing and controlling various operative functions of procuring,
developing, maintaining and utilising a labour force, such that the: a) Objectives, for which the
company is established are attained economically and effectively; b) objectives of all levels of
personnel are served to the highest possible degree; and c) objectives of the community are duly
considered and served.

Functions of Personnel Management

Broadly speaking, experts have generally classified the functions into two major categories, i.e.
managerial and operative functions. Others has classified functions as general and specific
functions, and yet others as ‘personnel Administration functions and Industrial Relations
Functions’. Functions have also been classified on the basis of the capacities; or on the basis of
authority.

Personnel functions

It is necessary to identify the major personnel systems and their concepts in brief, for better understanding
of the functions required for managing men effectively.

The operating functions of personnel management are concerned with the activities
specifically dealing with procuring, developing, compensating and maintaining an efficient
workforce.
For example,
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1. The procurement function- obtaining of a proper kind and number of personnel

necessary to accomplish an organization’s goals
2. The development function- personnel development of employees, training
3. The compensating function- securing adequate and equitable remuneration to
personnel
4. The integration function- an “integration” of human resources with organisation
through job enlargement, jobevaluation, variable compensation plans,
disciplinary action programmes.

5. The maintenance function- maintaining the physical conditions of employees

(health and safety measures) and employee service programmes

What roles do the HR managers perform?

Let us view it in the form of a slide:

Role of HRD Manager

Personal Role Welfare Role Clerical Role First-Fighting Legal Role

A Advisory: Advising mg. A Research in Personnel A Time Keeping A Grievance handling
On effective use of HR. & Organizational
Problems.
B Manpower Planning: B Managing services: B Salary & wage B Settlement of dispute
Recruitment, selection canteen, transport, admin: incentives
etc. medical etc. etc.
C Trg. & Development C Group Dynamics: C Maintenance of C Discipline Maintenance
Group counseling, HR records
Motivation, leadership,
communications,
counseling etc.
D Measurement of D Collective branding
assessment of individual
& group behavior
E Performance & Potential E Workers participations
appraisal Joint consultation.

Now let us discuss the difference between HRD and Personnel.

HR Functions versus Personnel Functions

You must have come across these two terms – Human Resource Management and Personnel
Management. Some scholars have used them interchangeably.
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But if you go back to our lesson 1, you will understand that it is through the evolution in the
management philosophy that Personnel Management was transformed into Human ‘resources’
management.

If we view the term themselves you will understand that the difference does not lie in the scope
(that evolved through times and events) only, but the basic orientation has changed. Personnel
management which was there before HRM had more of the Management orientation. (Please
relate it to the Keith and Davis model of OB); it viewed employees from the owners perspective
whereas; HRM views and treats employees as an asset.

HRM with time has come a long way in promoting mutuality( we will be dealing that too in later
part.) HRM is more strategic in nature, more integrated with the rest of the sub systems of the
organisation.

Remember the above diagram. You must have come across this in your earlier courses. The
following table will help you understand my point.
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HUMAN RESOURCE DEVELOPMENT

“ Human resource development refers to the process whereby the employees are continuously
helped in a planned way to
Acquire or sharpen capabilities required to perform various tasks associated with their
present/future expected roles.
Develop their general capabilities as individuals so that they are able to discover and
exploit their own inner potential for their own and/or organisational development
purpose.
Develop an organisational work culture where: superior-subordinate relationships, team
work and collaboration among different units are strong and contribute to the
professional well-being, motivation and pride.”
- Udai Pareek and T.V. Rao

Thus, from this definition it is clear that HRD is all the more evolved field than HRM.
Human resource management is the subsystem of the total management system. This is the responsibility
of all managers, irrespective of their functions, disciplines and levels. HRM is primarily concerned with
management of people, individuals or groups at work., as also their inter-relationship.
It is not the sole responsibility of personnel specialists. Indeed line managers are equally and directly
responsible for managing human resources working with them. They have to lead , guide and counsel
people working with them and act as engines of motivation.

HRD OD and IR are separate aspects of broader concept of HRM. However, in reality, each of these
aspects overlap in practice, into the other and cannot be viewed in isolation. HRM practices, to succeed,
must go currently with HRD, OD interventions. Sound IR systems cannot be visualized without good
HRD practices.

Human resources development is a process to help people to grow. It is an approach to facilitate

individual growth i.e. to transform a person a total person. HR is an asset and HRD is a means to attain
better organizational effectiveness. Growth means better skill, better adjustment to the environment,
ability to solve problems ,ability to take decisions ,self confidence and broad awareness. HRD is to deal
both- which prevent growth and lead to growth. In an organization there are six units which are
concerned with HRD namely person, role, dyad, team, inter team unity and organization. The
effectiveness of one contributes, in , turn, to the effectiveness of others.

Human resource development is an essential prerequisite for any growth or development effort.
Research, experimentation and experience in the field of HRD has grown enormously in the last
decade. Many organizations have set up new departments known as “HRD Departments” in
place of “HRM departments” which symbolise the recognition of importance of people’s
competency development. These departments have done remarkable work in attempting to find
out new ways of developing employee competencies.

Thus HRD is needed by every organization that is interested in:

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Stability
o Growth
Review and development
• Styles
o Dynamic activity
Effectiveness, and
• Leadership

HRM versus HRD

If we view the field carefully, we can easily differentiate the two field in the following manner:

HRD
1. continuous process
2. sub-system of a large
system, more
organisational oriented
3. more proactive; it copes
with the changing needs of
the people as well as
anticipate these needs.
4.developing the whole
organisation, e.g. OD.
5. involvement of the
entire work force from top
to bottom is more and a
must in most of the cases
HRM/Personnel
Management
1.a routine and
administrative function
2. function more
independent with separate
roles to play.
3. mainly a reactive
function responding to the
demands which may arise.
4. concerned with people
only.
5. It is basically the
responsibilities of the HR
department.

Thus, the differentiation will give you a feel that again it’s a difference in scope and orientation
and nothing else. Thus if we want a composite view we find that they will placed like the
following, historically, in scope and in orientation.
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People Management
HRM .

MODELS

PERSONNEL MGMT.
OF

MANAGEMENT
WELFARE MGMT.

1900 1940 1980 2000

PERIOD

Skill and Human

Industrial Resources
Relations Competency
Planning
Mapping

Setting Safety
and Health Recruitment
Stndards
Job Analysis
Selection
Compensation Job Description
Designing
Job Specification
Training and
Development
Performance Appraisal

Setting Performance Management

Standards(KRA/KPAs) Development
Career planning and
and
Development
Succession

HRM Mechanisms or Sub-systems or Instruments

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Human Resource Planning

Manpower planning and human resource planning are synonyms. The basic idea of manpower planning
is, we look at the numbers we are likely to need because of growth or contraction, promotion and
wastages. In other words, it simply means ensuring availability of right numbers of men , right kinds
[types in terms of skill], at the right point of time, at the right places for utilising the most economically
and effectively and develop their potentials in terms of skills, performance and capacity.

Recruitment and Selection

Recruitment is the process of generating of applications or attracting applicants for specific positions
through four common sources, viz. Advertisement, state employment exchange agencies , present
employees and campus recruitment.
Having identified the potential applicants the next step is to evaluate their experience and qualification
for ascertaining their suitability for a job and make selection. Selection refers to the process of offering
job to one or more applicants from the applications. Selection is thus a means of selecting the ”best-fit”
for a job by using multiple hurdles such as screening, short listing based on marks, tests, interviewing,
and an equal opportunity dispenser.

Performance & Potential Appraisal

Performance appraisal also called “merit rating” or “employee rating is a means of helping supervisors
to evaluate the work of employees. It is the name given to the regular formalised and recorded review of
the way in which an individual performs in his or her job. This is normally carried out by the job holder’s
immediate boss.
Performance appraisal focuses of helping the individual to develop his or her present role capabilities
and to assume more responsibility for that role. Potential appraisal focuses primarily identifying the
employees future likely roles within the organisation.” Potential appraisal is done for placement as well
as for development purposes keeping in mind futuristic requirement of the organisation.

Performance appraisals are becoming highly crucial tools of Modern organizations .

Performance Appraisal is very much in demand because;
1. It helps employee in self-appraisal
2. It Reviews his performance in relation to the objectives and other behaviors.
3. It Checks reviews done by the superiors.
4. It sends summary information for central storage and use.
5. It analyses the difficulties of the employees and works to remove them. It helps
employees to face challenges and accept responsibilities. It plans Potential Development
Exercises

1. It make thorough potential appraisal of the employee ..

2. Appraisal the potential of the employee annually.

Counselling

“Counselling is helping the employee to recognise his own strengths, weaknesses and potential and
potential and helping him to prepare action plans for own development.” Giving feedback in a
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“threatening way” or correcting the undesirable or unsatisfactory behaviour of employees by pointing it

out the deficiencies or other malfunctioning and warning them not to repeat these behaviour are all
integral parts of a manager’s role and are not the same as counselling.

1. They give critical and supporting feedback.

2. They discuss with the employee the difference between his self rating
and the rating by the immediate superior.
3. They discuss the steps the employee can take for improvement.
4. They provide support

Career Planning

Career planning involves identifying the right potential well in time, for development to take over higher
responsibilities. This includes promotion and planned job rotation under various conditions and
environments of challenge. In this process, attention is focused on individual’s style of working than his
current performance results. Current results can provide reasonable clues of future potential, but they are
not the sole criterion; current results only, could be misleading in judging one’s potential. A persons
achievement are invariably affected by the forces outside his control. Similarly, a person may be highly
successful in one situation, but he may not continue to be a high achiever when transferred to another job
or situation.

Succession Planning

Succession planning entails in identifying the key jobs in an organisation and ensuring that , if anything,
planned or unplanned were to remove the present job holder from his post, there would be some one
ready to take the place. This benefits the company by ensuring that there are no expensive gaps, or panic
measures to fill them. It benefits the individual by providing him with opportunities for advancement.
Three broad steps are required in this context (I) to decide which are the key jobs in the organisation; (ii)
to identify the potential incumbent who can fit the position; & (iii) to make necessary records in the
organisation chart. Therefore, a succession plan to indicate who can succeed whom in the hierarchy.

Training

Training comprises an integral part of HRD process. The purpose of training is to improve the
capabilities of the human resources in order to increase their efficiency and effectiveness on the job.
Training is expected to indicate positive changes in knowledge, skill and attitudes. Training is job
oriented and fulfills the current needs of an individual to overcome job difficulties. Training won’t
solve all problems, not all problems are training problems. As we all know Training aims at
development of the people in an organization. HRD Department analyses and develops
various Training programmes. For development of human resources through Training, what
does the HR department do?
1. It assesses training needs of different groups of employees.
2. It searches available outside training facilities.
3. It develops in-company training strategy including pre-training and post-training
activities.
4. It prepares training packages and modules.
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5. It organizes specific programmes as well as general development programmes with

own and outside resources.
6. It evaluates training efforts.

Job Evaluation

Job evaluation is concerned with establishing the relative worth of a job compared to other jobs within an
organisation. In job evaluation one attempts to consider and measure the inputs required of employees
(know-how, accountability and problem solving etc.) for minimum job performance and to translate such
measures into specific monetary returns.

Transfer, Promotion & d emotion!!!

Transfer is a lateral movement within the same grade, from one job to another. A transfer may result in
changes in duties and responsibilities, supervisory and working conditions, but not necessarily salary.

Promotion is the advancement of an employee from one job level to a higher one, with increase in salary.

Demotion is the opposite of promotion. It is a downward movement from one job level to another, leading
to a reduction in rank, status, pay and responsibility.

Job Analysis

Job analysis is the process of studying and collecting department information relating to operations and
responsibilities of a specific job. The immediate products of this analysis are job description and job
specification. Job description is an organised factual statement of duties and responsibilities of a specific
job, whereas, job specification is a statement of the minimum acceptable qualities necessary to perform a
job properly.

Role Analysis

Role analysis is the process of defining a role in the context of its work system., in terms of expectation of
important persons, detailing specific tasks under each function, and elaborating the process, standards and
critical attributes namely knowledge, attitude, skill, habits (KASH) required for effective role. Role is a
position or an office a person occupies as defined by expectations from significant persons in the
organisation, including the person himself. Position is the collection of tasks and responsibilities
performed by one person.
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ROLE ROLE KEY GOALS

ANALYSIS CONSENSUS PERFORMANCE
AREAS

APPRAISALS

CRITICAL
ATTRIBUTES COUNSELLING

Communication Policies

HR Department stresses a lot on Communication aspects to be developed. Communication

policies do pave way for effective ness and efficiency.

Rewards
Rewards are the positive reinforcements given by the organization . Rewards act as effective
motivators and help people to increase productivity and efficiency. Rewards include:

1. Promotion
2. Salary Review
3. Salary Administration

OD Exercises

OD Exercises help in Organisational development and growth with their activities of

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1. Organisational Diagnosis
2. Team Building
3. Task Force
4. Other structural and process interventions like role development, job enrichment job
re-designing etc.

You will deal all the mechanisms in the coming lesson in detail one by one.

Outcomes/ objectives of the functions

We have already in our lesson 1 discussed about generating “competitive advantage through
people”. HRM functions are the best tools to achieve the same.
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But what are these outcomes we are talking of ?

They are:
Creation of a Better Image
More Profits
Higher Productivity
More Competent People
Better Generation of Internal Resources
More Team-work, Synergy and Respect for
Each Other
More Problem Solving
Higher Work-commitment & job Involvement
Growth and Diversification
More Profits
Better Developed Roles
Better Utilisation of Human Resources

We can understand the relation between the various instruments and the benefits
through two means:
By seeing the evidence from various researches on the issue.
Just one example can help you see this relation. A study by Chris Ryan et.al.
evaluated the impact of broad range of HRM practices on shareholders
return. They concluded that 15-30 percent of the total value of a company
could be attributed to the quality of its HRM practices, especially training,
role analysis and talent management (where the poorest of the performers
are discharged).

Secondly, through a model/ paradigm. We can develop a model where there

is a indirect link visible. You all know that it is not only the structure of the
certain activity that can directly lead to a desired outcome. It is the processes
that are generated from a formation of the structure that can in turn; help us
generate a certain kind of climate. These processes, thus helps the above
mentioned instruments to generate the desired outcomes.

Now we will together tackle the question “How can this be achieved?”

HRD and HRM processes

But what are these processes?? The processes include:

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1. Generation of Value
2. Creation of more Trust
3. Clarity and role
4. Communications development
5. Positive Re-enforcement
6. Development of Team work & collaboration
7. Employee Development and growth
8. Knowledge of skills required for Effective job
performance
9. Group work encouragement
10. Clear norms
11. Maintains of Man power inventory
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HRD HRD Processes & HRD Outcome Organisational

Instruments Climate variable Variables Dimensions
(Sub Systems) Electiveness
HRD Department • Role clarity • More • Higher
• Awareness of competent productivity
Performance competencies people • Growth &
Appraisal required for • Better Diversification
job developmen
performance t roles

Review
discussions, • Practice • Cost reduction
feedback orientation
counselling • Trust • Higher
work • Higher profits
• Collaboration • Better image
& Teamwork commitmen
t & job
Role Analysis • Authenticity
involvemen
• Openness t
OTHER FACTO
Potential • Risk taking • Problem
Development
• Value solving
generation skills
Training • Better
• Clarification
of norms & utilization
Communication of HR
Policies standards • Environment
• Higher job •
• Better
satisfaction
Technology
Job rotation communicatio • Resource
& work availability
rewards OD n
motivation • Nature of
exercises Job • Fair rewards • Generation
enrichment other business etc.
• Generation of of internal
mechanisms unbiased data sources
on employees
etc. • Better
organizatio
nal health
• Greater
team work

Other factors
• Personnel
policies,
Top Mgt.
Styles, inv.
On HRD,
top mgt’s
commitmen
ts, history,
power
culture etc.
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The main issue here is that the HR mechanisms have to be developed with so
much care that they lead to these intangible processes which can lead to the
desired outcomes. Only then a mechanism fulfills the basic philosophy of HRM.

Pre selection Practices Outcomes Outcome Advantage

HRM Practices Employee – Centered Organization – Centered Competitive

HR Planning Job analysis

Selection Practices
Recruitment
Selection Competence Output Cost leadership
Motivation Retention Product
Post selection Practices Work-related L differentiation
Attitudes e
Training/development
Performance appraisal
Compensation
Productivity
improvement programs

Practices Affected by
External Factors

Workplace justice
Unions
Safely and health
International

Now, we have already discussed that the various instruments in HRM can have
the right impact only if certain processes accompany it. This shows there is an
indirect path through which the influence is carried on. The logic behind this
assumption is that if you observe the two variable you always can’t decipher
how one instrument led to a certain outcome. We can understand the reason
behind the phenomenon with the help of a model given by Kleiman.
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He states that the influence process follows a path where the mechanisms lead
to outcomes (employee-centered and organisational centered), which in turn,
can lead to competitive advantage. The path taken is as follows:

HRM practices Employee centered outcomes- organisational

outcomes competitive advantage.

Here the employee centered outcomes refer to the competence level of each
employees, employees willingness, and employees attitudes such as job
satisfaction level, commitment, and citizenship behavior which result from the
right kind and right combinations of the instruments.

The organisational outcomes are productivity level (in terms of quantity and
quality of the product and the USP of the product), image of the company, legal
compliances etc which are result of the employee level outcomes. Naturally, for
example if the employees of a firm are highly satisfied and committed then they
will communicate a good image of the company. This level outcome will give
competitive advantage to the company through the generation of its good will in
the market.

Thus it the relation among the instruments, processes and the ultimate outcomes
are clear to you.

Hope the discussion was invigorating and you will have lot of issues to discuss
in the class. Hope with the help of this material you will be able to do the
following.
1. Study an Indian organization and
2.analyze the various HRD processes used
3.Write about various types of HRD instruments.
4.Understand the relationship between the three variables:
Instruments, processes and outcomes.
5. learn the difference among:
o HRM
o Personnel
o HRD

Activities:
• Find out the difference between Job Enrichment and job
Enlargement
• Explain succession planning with the help of an example of any
organisation.
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HR Functions: What We’ll Be

Looking At
Planning
Employee and
Legal
Labor Relations
Compliance

Training
and
Staffing
Development
Reward
Systems Management 412 / Lecture #1 / Page 30
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Personnel and HRM

• Traditional “personnel” function

– Record keeping
– Perceived as a dumping ground
• The death of HR?
• HR’s rebirth

HRM Instruments
• HRD Department
• Performance Appraisal
• Review discussions,
• feedback counseling
• Role Analysis
• Potential Development
• Training
• Communication Policies
• Job rotation rewards OD exercises Job
enrichment other ----
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HRM Instruments
• HRD Department
• Performance Appraisal
• Review discussions,
• feedback counseling
• Role Analysis
• Potential Development
• Training
• Communication Policies
• Job rotation rewards OD exercises Job
enrichment other ----

Staffing
• Strategic issues
– Hire vs. train
– The best vs. good enough
• Recruitment
– Difficult today…..or always difficult
– Recruit the the people you’d like to hire
• Selection
– The interview
– Tests
• Downsizing
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Training and Development

• Training vs. development
– Training = skills
– Development = long-term
• Training and technology
– Technology change makes training even more critical
– Technology not the answer to training issues
• Choosing a training method
– Match method and content
– Practical considerations

Benefits
• Some are legally required
– Social Security
– Workers’ Comp
– Unemployment
• Others heavily regulated
– Health
– Pensions
• Currently popular…
– Child care / elder care
– Employee services
 27

Development

• Training of Employees
• Management Development
• Career Development

Motivation

• Job Design
• Performance Appraisal
• Rewards and Compensation
• Job Evaluation
• Discipline
 28

Maintenance/Retention

• Commitment
• Employee safety and Health
• Employee Relations
• Industrial Relations

HRD Processes….
Generation of Value
Creation of more Trust
Clarity and role
Communications development
Positive Re-inforcement
Development of Team work &
collaboration
Employee Development and growth
 29

HRD Processes….
Knowledge of skills required for
Effective job performance
Group work encouragement
Clear norms , and
Maintains of Man power inventory.

HRD outcomes…

More Profits
Higher Productivity
More Competent People
Better Generation of Internal
Resources
More Team-work, Synergy and
Respect for Each Other
Creation of a Better Image
 30

HRD outcomes…
More Problem Solving
Higher Work-commitment & job
Involvement
Growth and Diversification
More Profits
Better Developed Roles
Better Utilisation of Human Resources
31
32
33
 34

HR Functions

Planning and Job Analysis

Legal and EEO
Staffing
Training and Development
Compensation and Benefits
Employee and Labor Relations

Lecture #15
CBU / MGMT 337 / Summer 2003
Page 3

Staffing
Strategic issues
Hire vs. train
The best vs. good enough
Recruitment
Difficult today…..or always difficult
Recruit the the people you’d like to hire
Selection
The interview
Tests
Downsizing

Lecture #15
CBU / MGMT 337 / Summer 2003
Page 7
 35

Training and Development

Training vs. development

Training = skills
Development = long-term
Training and technology
Technology change makes training even more critical
Technology not the answer to training issues
Choosing a training method
Match method and content
Practical considerations

Lecture #15
CBU / MGMT 337 / Summer 2003
Page 8

Benefits
Some are legally required
Social Security
Workers’ Comp
Unemployment
Others heavily regulated
Health
Pensions
Currently popular…
Child care / elder care
Employee services

Lecture #15
CBU / MGMT 337 / Summer 2003
Page 10
 36

The Death of HR ?
• Traditional “personnel” function
• Recordkeeping
• Perceived as a dumping ground
• The death of HR?
• HR’s rebirth

Sources: Caudron (2003); Schuler (1990); Schuler

& Walker (1990); Stewart (1996); Sunoo & Laabs
(1999); Ulrich (2000); Wells (2003) Management 412 / Lecture #1 / Page 4

HR Functions: What We’ll Be

Looking At
Planning
Employee and
Legal
Labor Relations
Compliance

Training
and
Staffing
Development
Reward
Systems Management 412 / Lecture #1 / Page 30
 37

Distinguishing HRM from

Personnel Management

MS 22B - Eddie Corbin, Lecturer 27

Development
Training of Employees
Management Development
Career Development

MS 22B - Eddie Corbin, Lecturer 19

 38

Motivation
• Job Design
• Performance Appraisal
• Rewards and Compensation
• Job Evaluation
• Discipline

MS 22B - Eddie Corbin, Lecturer 20

Maintenance/Retention
Commitment
Employee safety and Health
Employee Relations
Industrial Relations

MS 22B - Eddie Corbin, Lecturer 21

 39

Map of the HRM Territory

Stakeholder
Interest
•Shareholders
•Management
•Employees HRM Policy HR Outcomes Long-Term
•Government •Employee •Commitment Consequences
•Community influence •Competence •Individual
•Unions •HR flow •Congruence well-being
•Reward •Cost- •Org.
systems effectiveness effectiveness
Situational •Work •Societal
Factors systems well-being
•Workforce
Characteristics
•Business strategy
•Management
philosophy
•Labour market
•Unions Beer et al.
•Task environment
•Laws/social values MS 22B - Eddie Corbin, Lecturer 25

David Guest HRM Process

Strategy Integration High Commitment

ENVIRONMENT OF BUSINESS

High Quality Flexibility

MS 22B - Eddie Corbin, Lecturer 26

RELEVANCE OF HRD & ITS INTERVENTIONS

By Dr. Aloke K Sen*
 40

With increasing global competition, organisations are under tremendous pressure to

improve their performance through reduction of cost and in quality up-gradation.
Indian business organisations too have realised that they are now in a more open,
highly competitive, and market-oriented environment. The three challenges for Indian
business organisations are - First, how to maximise return on investments. Second, how
to be more innovative and customer driven. Third, how to renew and revitalise an
organisation? In this context, the most important steps are - effective management;
holistic development; and optimum utilisation of human resources (Jha 1987; Sarathi
1987; Maheshwari & Sinha 1991)(1).

In the past decade something quite different was happening in many Indian
organisations, calling for a second look at traditional personnel functions and their
integration with - organisational objectives (Athalai 1987; Singh 1989; Nair & Rao
1990; Silvera 1990)(2). According to Singh & Sen (1992)(3) several steps were taken,
such as, conceptualisation of employees as resources; strategic role of personnel
functions; greater partnership to line managers in managing human resources;
dovetailing of training with other personnel functions; synthesis of different personnel
functions, etc. It is difficult to categorise these activities under a single label. Rather,
they can be brought under the umbrella of Human Resource Development (HRD).

Human resource development in India is of recent origin, and the term gained
currency only in the early seventies. In the opinion of Nadler the term "HRD" was first
applied in 1968 in George Washington University. It was used in Miami at the
conference of American Society for Training and Development in 1969. According to
Nadler, the term was gaining more acceptances during the mid-1970's, but many used it
as a more alternative term than "Training & Development" (4). In the opinion of some
management professionals, Japan is the first country to begin with HRD practices.
"Better People", not merely better technology, is the surest way to a "Better Society", is
the most popular belief in Japan (5). In the opinion of Prof. Udai Pareek, the term was
first used in India in 1972 by the State Bank of India (6). By the late seventies and early
eighties this professional outlook on HRD caught on to a few PSUs, namely BHEL,
MUL, SAIL, IA, AI & IOC. Larsen & Toubro and TISCO are the first two
organisations in the private sector to begin with HRD.

Organisations need to be dynamic and growth-oriented to grow in the competitive

environment. This is possible only through the competence of human resources. To
cope with the fast changing environment, organisations need to review their HRD
approaches continuously. HRD is neither a concept nor a tool, but is an approach using
different personnel systems, depending upon the needs and priorities of the
organisation. The basic assumption is the belief in human potential and its
development by providing a suitable and congenial environment.
_________________________________________________________________
* Dean - MBA Programme & Professor (HRM), EIILM, Kolkata

According to Dayal and others (7), concern for development of people, have
become important for two compelling business reasons. Firstly, competitions in the
business have forced attention of organisations on cost of operations and sensitivity to
market demands. These aspects of business cannot be served without full and
 41

sympathetic involvement of people at work. Secondly, consideration arises from the

impressive developments in science, engineering and technology. The new production
technology, automation and application of electronic control systems have changed the
ratio of skilled and unskilled jobs. New systems require new skills and certain
minimum educational qualifications. They need continuous up-gradation of skills.
Thus, development of people, decentralisation of decision making, flatter and different
management practices than those followed in the past has become necessary for
survival of business. HRD initiatives meet the need of these business imperatives.
In the opinion of Nadler and Wiggs (8) the ultimate purpose of HRD activities is "to
make a difference" in the real world of costs, quality, quantity, accuracy and timeliness.
HRD activities, as such, do not reduce costs, improve quality or quantity, or benefit the
enterprise in any way. It is the on-the job applications of learning that ultimately can
reduce costs, improve quality, and so forth. It has been rightly observed by Billimoria
& Singh (9) that "each human being is born as something new, something that never
existed before. Each is born with the capacity to win in life, each has his own unique
potentials, capabilities and limitations."

In the opinion, of Prof. Ishwar Dayal (10), HRD is an approach founded on the
belief that people are capable of growth - given an environment that facilitates
individual growth. Growth is, therefore, important for organisation. According to
Dayal, HRD is to make a person, a total person in terms of skill, maturity, competence,
self-awareness, adjustment to the environment, and confidence. In the view of Dayal,
HRD can be seen as a philosophy rather than as a programme. HRD is concerned with
two sets of extreme factors - which prevents growth and which leads to growth. In this
context, Khan (11) also remarks: "HRD is the process of increasing knowledge, skills,
capabilities and positive work attitude and value of all people working at all levels in a
business undertaking".

According to Rao, Verma, Khandelwal and Abraham (12), HRD is a process

by which people in various groups are helped to acquire new competence continuously
so as to make them more self-reliant and simultaneously developing a sense of pride in
them. HRD is an approach to the systematic expansion of people's work - related
abilities, focussed on the attainment of both organisational and personal goals. Nadler
observed, "HRD means an organised learning experience, within a time frame, with an
objective of producing the possibility of performance change". According to Rao (14),
in the organisational context, HRD is a process in which the employees of an
organisation are continuously helped in a planned manner to:

- Acquire or sharpen their capabilities that are required to perform various functions
associated with their present or expected future roles;
- Develop their general capabilities as individuals, so as to discover and exploit their
inner potentials for their own or organisational development purposes
- Develop organisation culture in which superior-subordinate relationships,
teamwork and, collaboration among sub-units are strong & contribute to the
professional well-being, motivation and pride of employees.

Further, Rao (15) defines human resource development (HRD) as essentially consisting
of these three Cs: competencies, commitment, and culture. All three are needed to
make an organisation function well. Without competencies many tasks of the
organisation may not be completed cost effectively or with maximum efficiency.
Without commitment, they may not be done at all or are done at such a slow pace that
 42

they lose relevance. Without an appropriate culture, organisations cannot last long.
Culture provides the sustaining force and spirit and spirit for organisations to live. It
provides the oxygen needed for them to survive. Its utility comes to the force specially
when organisations are in trouble.

Many people are not very clear as to the difference between HRD and
personnel functions. As a result, personnel managers are automatically being
designated as HRD managers performing personnel and industrial relations function.
Indian Oil Corp. (IOC), one of the leading public sector undertakings, has successfully
implemented its HRD programme and has achieved worthwhile results. The basic
principle of HRD philosophy is the belief in - (i) human potential & its development;
(ii) Optimum utilisation of human resources; & (iii) a harmonious balance between
business strategy and HRD strategy i.e., strategic planning and HRD should go hand in
hand. IOC adapted the leading consultant Dr. M.B. Athreya's model (16) of strategic
management and organisation development. According to this model, OD & HRD
efforts may tend to be wasteful exercise, if there are no opportunities to utilise the
development of human capability. Similarly, all strategic options in terms of business
plans will remain unfulfilled, if human resources are not made available to implement
them. The SM-OD Model, can be shown diagrammatically as follows:

STRATEGIC MANAGEMENT [SM] AND

ORGANISATION DEVELOPMENT [OD]

MODEL

OD ADEQUATE INADEQUATE
SM OD OD
ADEQUATE STRATEGIC BALANCED WEAK
OPTION ORGANISATION (VULNERABLE)
INADEQUATE WASTEFUL DECLINING
STRATEGIC OPTION

Aligning HRD strategy with the organisational strategy becomes essential. The strategy
of an organisation flows from its vision. Strategy is the responsibility of a company’s
executive team of which HR is a member. To be full-fledged strategic partners, HR
executive should impel and guide serious discussion of how the company should be
organised to carryout its strategy. However, the primary responsibility for transforming
the role of HR belongs to the CEO and every line manager who is answerable to
shareholders for creating economic value, to customers for creating product or service
values and to employees for creating work place values. The line managers should lead
the way in fully integrating HR into the company’s real work.

HRD is thus the responsibility of both: line managers and HRD /Personnel
specialists. It is a co-operative and massive effort in the organisation. Pareek & Rao
(17) have identified four basic partners of development viz.: (i) the self (the individual);
(ii) the immediate superior (boss); (iii) HRD department and (iv) the organisation.
Rao & Pareek observed that there are six units in an organisation which are concerned
with HRD. These are: - (i) person; (ii) role; (iii) dyad; (iv) team; (v) inter-team & (vi)
 43

organisation. The effectiveness of one unit (foci) will contribute to the effectiveness of
others. HRD is an integrated process and cannot be thought of in isolation. According
to Rao, major interventions of HRD are: (i) Performance and potential appraisal; (ii)
Career Planning; (iii) Training; (iv) Organisation development; & (v) reinforcement.
HRD interventions may vary from one organisation to another depending upon their
needs, based on diagnostic studies. For example, role analysis was the core of its HRD
programme in IOC, whereas SBI started with performance appraisal as the first
intervention of HRD.

Since the future is going to be much more demanding, the HRD function will
have to develop new strategies and technologies to enable their organisations to
survive, cope and adapt in the turbulent environment. It is, therefore, essential to grasp
the promises that a good HRD philosophy of an organisation must achieve the
objectives i.e. more satisfied customers, more empowered employees, more able
employees, more unified culture, greater creativity, greater flexibility and better
quality. If these are fulfilled, the expectations of employees as well as organisations
will be met. However, these are easier said than done.

References:

1.J.N. Jha: Quality is directly proportional to human resource development, Personnel

Today, 8(2), 1987, p. 28-36
-P. Sarathi: Human Resource OIptimization: An integrated approach. Personnel
To-day, 8(2), 1987, p.5-13.
-Maheshwari& T.V.. Rao: Eds. Excellence through human resource development:
improving productivity and competitiveness. Tata McGraw Hill Publishing
Company Ltd., New Delhi, 1990

2. B.N. Athalai: HRD: The state of the art in Indian Telephone Industries Ltd.,
Indian Jr. Of Training & Development, 17(1), 1987, P. 23-28
-A.K. Singh: Human Resource Development Retrospects and Prospects: In AL Dalal
& A K Singh (Eds) Research in Human Development, Gurgaon, Academic Press,
1989
-M.R.R. Nair & T.V. Rao, (Eds): Excellence through Human Resource
Development. Improving productivity and competitiveness, New Delhi, Tata
McGraw Hill publishing Company Ltd.
-D.M. Silvera: Human Resource Development: The Indian Experience (2nd Ed), New
Delhi, News India Publications, 1990

3. A K Singh & A K Sen: HRD Culture - A Model, MDI Management Journal, Vol.5, Ist
January, 1992, New Delhi, p. 113

4. L. Nadler: "Defining the Field - Is it HRD or OD or" Training & Development

Journal, Published by ASTD, 34, No.12 (December 1980), p. 66
Fransisco, 1986, p. 8.

5. C.R. Basu: Human Resource Development, Indian Journal of Commerce, Vol. XI

(Jan-June 1987), P. 150-151

6. T.V. Rao & D.F. Pereira: Recent Experiences in Human Resources Development,
Oxford & IBH Publishing Company, New Delhi 1986.
 44

7. Ishwar Dayal and others : Successful Applications of HRD : Case studies of Indian
Organisations, New Concepts, New Delhi, 1996, p 9-10.

8. Nadler (Leonard) & Wiggs (Garland). Managing Human Resource Development :

A practical Guide. Jossey -Bass Publishers, San

9. R.P. Billimoria & N.K. Singh: Human Resource Development, Vikas Publishing
House Pvt. Ltd, New Delhi, 1985, p.3 .pa

10. Ishwar Dayal: HRD in Indian Organisations: "Current Perspectives and Future
Issues". Vikalpa, Vol.14, October-December 1989, P. 9-15Ishwar Dayal, Designing
HRD Systems, New Delhi, Concept, 1993

11. M.N. Khan: HRD in Model Technological Structure Indian Journal of Commerce,
XL No:150-51, Jan-June, 1987, p. 83

12. T.V. Rao, K.K. Verma, A.K. Khandelwal and S.J. Abraham: Alternative
Approaches and Strategies of Human Resource Development ed, Rawat
Publication 1988, Jaipur, P. 6- 12. ibid 13. Ibid

13.Op.cit 14.Op.cit

15. T. V. Rao : HRD Audit : Evaluating the Human Resource Function for Business
Environment, Response Books, New Delhi, 1999, p 17-18

16. M.B. Athreya: Integrating the Human Resource Profession with Business - The
challenges Ahead) HRM 2000: Indian Perspective ed. by K.B. Akhilesh and D.R.
Nagaraj. Wiley Eastern Ltd., New Delhi; 1990, P-73.

17. Udai Pareek & T.V. Rao: Designing & Managing Human Resources systems,
Oxford & IBH publishing company, New Delhi, 1981, p. 6-7
 45

Integrated HRD System Model

Selection, counselling Self

appraisal development
induction,
placement

Man Role Data

analysis Training
power bank
forecast

career Rotation
Corporate Succession &
planning planning planning
transfer
 46

PERSONNEL FUNCTIONS
•General Administration
•Manpower Planning (Recruitment only)
•Implementation of Transfer, Posting &
Promotion
•Establishment matters
•Implementation of HRM Subsystems
•Industrial Relations, Welfare
•Maintenance of all personnel records.

HRD IN IOC: A CASE STUDY

by Dr. Aloke K. Sen
The Process of Evolution

Indian Oil Corporation Ltd.(IOC) is the largest commercial enterprise in India,

and the only Indian presence in the Fortune’s “Global 500” listing of the world’s
largest corporation with a ranking of 226 for fiscal 2001 and in the “Forbes
International 500” list of the largest companies outside US IOC’S rank is 112. Indian
Refineries Ltd. and Indian Oil Company Ltd. were set up in 1958 and 1959
respectively, to build national competence in the oil refining and marketing business.
On 1st September 1964, these two companies were merged to form Indian Oil
Corporation Ltd. Thus, the corporate entity of IOC came in 1964.

About IOC

IOC has a large , divisionalised, multi-locational structure, dispersed throughout the

country, with its corporate office at New Delhi. It has two major divisions-
“Marketing” with its head office at Mumbai and “Refineries and Pipelines” with the
head office at New Delhi. The R & D division is located at Faridabad (Haryana). There
are seven refineries namely: Guwahati, Barauni, Gujarat, Haldia, Mathura, Assam Oil
Division and Panipat. The Pipelines set-up functions have two major regions- Eastern
Region and Western Region. Similarly Marketing Division operates through its four
regions i.e. North, South, East and West. IOC has 359 establishments ( terminals,
depots, AFS, LPG bottling plants including refineries) and 1550 retail outlets, 31,675
employees (including officers & staff ), the annual turn over and market share are
Rs.1,14,864 crores and 53% respectively as on March 31, 2002.
 47

The Concept of HRD

The concept of HRD in IOC emerged in 1983 for sustaining excellence and not for
solving short-term crisis or problem. IOC believes that.
- HR is an important resource and has tremendous potential;
- It is necessary to provide people with an environment where their potential could
be developed;
- Development of people’s potential is important to develop the organisation;
- Help people to do their self -development.

The basic principle of HRD Philosophy is the belief in:

- human potential
- its development
- optimum utilisation HR &
- to have a dynamic balance between business and HRD strategy.

Objectives of HRD
- to gear up people to achieve corporate mission
- to prepare people for succession
- to get satisfaction and best use of people.

Purpose to have HRD in IOC

People came from divergent sources in IOC during 60’s. Top management realised in
1966-77 that people inducted in the age group of 30-40 years have no future due to:

1) Many roles got eroded and divided with abrupt induction on project requirement;
2) Lack of career path and advancement opportunities;
3) Size of the organisation grew fast leading to less personal touch amongst the
people joined in 60’s;
4) Lack of role clarity;
5) Lack of motivation and commitment;
6) Dissatisfaction on transfer policy;
7) Performance appraisal(adhocism);
8) Sense of alienation with the recruitment of the youngsters;
9) Lack of mission and zeal;
10) Lack of team-work;
11) Many levels of hierarchy;
12) Market share declined from 64% to 57% in 1977

To sustain the growth a need was felt that whatever potentials available within, IOC
must harness it and bring improvements.

Sub-systems of HRD

HRD covers all HRM functions ,that is, recruitment to retirement ( R to R ). The
subsystems are :
- manpower planning and budgeting;
- role analysis
- recruitment , selection, induction and placement;
 48

- performance appraisal and counselling;

- promotion;
- training;
- career and succession planning; &
- human resource data bank.

HRD Strategy

IOC’S HRD initiative and strategy to achieve corporation’s goal have two
dimensions:
1) Examine the existing HRM system and bringing in appropriate changes;
2) Examine the human processes in the organisation and
provide
appropriate interventions.

The HRD activities in IOC were taken up in seven phases, as follows:

Phase I 1983-84 Formation of HR Strategy

Phase II 1984-85 Action Research Project at Selected Locations
Phase III 1985-86 Role Analysis (RA) & Extension
Phase IV 1986-87 Implementation of HRD sub-systems
Phase V 1987-88 HRD for Collectives
Phase VI 1988-90 HRD Innovation & Consolidation
Phase VII 1990-91 Integration of HRD & Personnel into a unified HRM
structure

The Study

This study was undertaken at IOC as part of a larger study on “HRD in Indian
organisations”. Basically the study was done to assess evolution, purpose,
organisational strategies and effectiveness of HRD programme in IOC. The study
would help us to understand:

1. What are the reasons for the particular HRD

approach in the organisation, the corporate
policies and the way HRD fits into the
totality;
2. How has the programme evolved;
3. What are the factors that have contributed to
its success;
4. What role have different functionaries played
in initiating and operating the programme;
5. What is the impact of the programme on the
target population.
 49

Methodology

The study of HRD interventions in IOC had two phases:

Phase I
Involved in-depth and extensive interviews and discussions
with senior management in the department of HRD,
personnel, management services, technical services, co-
ordination and training , and the people involved in the
initiation of HRD efforts in IOC.

Phase II
A sample size of 123+99 i.e. 222 was drawn based on
stratified random sampling method, out of which 118+93
i.e. 211 officers were contacted. The first questionnaire
was designed to assess the effectiveness of HRD activities
in IOC and also the HRD climate ( A to I Grade ) and the
second one for E to G Grade (on new performance
appraisal ).
The sample was drawn keeping in view the following
factors:

1. Representation of officers from a cross

section of grades , departments,
functions;
2. Coverage of the HRD programme of IOC; &
3. Representation of Operational Units like
Aviation Depot, LPG Bottling Plant, Terminal
and Refinery.

The total number of persons involved, fell slightly short of

the number identified due to non- availability of
respondents.

Levels ( Grades)
A: Officer
B: Sr. Officer
C: Dy. Manager
D: Manager
E: Sr. Manager
F: Dy.General Manager
 50

G: General Manager
H: Chief General Manager
I: Executive Director

Scale ( 5- point Likert type )

5 Almost always true] Always

4 Mostly true ] true

3 Sometimes true ] Partially true

2 Rarely true ] Seldom

1 Not at all true ] true

For purpose of analysing percentage variation in responses, the 5- point scale has been
compressed as above

Target Population

A. Northern Region Marketing Nos.

LPG 36
Terminal Bijwasan) 18
Refinery Co-ordination Office 22
Aviation Fueling Station 31
Remaining NRM 1025

B. Chairman’s Office 73
C. Refineries HQ 253
D. Mathura Refinery 482
E. Pipelines
Bijwasan 52
Head Office 179
___________
Total 2171
___________

Critical Evaluation of HRD Efforts in IOC

The HRD programme in IOC was not an outcome of any grave crisis or turbulence. On
the contrary it emerged out of a strong need felt by the top management to sustain high
growth and to improve the motivation level of employees. Thus it was more of a
renewal process rather than a fire-fighting one.

Strengths of the Programme

 51

* A need-based programme
* Participation is built into the system
* Climate creation – an essential pre-requisite
* A scientific approach
* Top management vision & commitment
* HRD as a corporate philosophy
* Bringing objectivity in the system
* A well-monitored programme
* Development of internal change agents
* Having an expert (outside consultant) throughout for acceptability in the initial stage

Weaknesses of the Programme

* The programme has not spread to lower levels of managerial hierarchy.

20% respondents were not aware of role analysis exercise, same percentage
of respondents had not been exposed to HRD workshop.

* The programme emphasized on the mechanism more than the process.

* Certain personnel policies like potential appraisal, manpower planning etc. have
been initiated but need to mature.

* For a programme that has been in operation for 5-7 years, the lower category
of officers remain relatively less involved.

* HRD for workers has been taken up in recent past, it appears that considerable
work has to be done to conceptualize and translate HRD interventions for workers.

References:

Ishwar Dayal , Sen & Others (1996) : Successful

Applications of HRD: Case Studies of Indian
Organisations, New Concepts, New Delhi

MDI Management Journal (Focus on HRD), Vol.5 No. 1 ,January 1992, Gurgaon

Annual Reports of IOC 1991-92, 1997-98 & 2001-02