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Human Capital Adam Smith: Human Resources Development (HRD) As A Theory Is A Framework
Human Capital Adam Smith: Human Resources Development (HRD) As A Theory Is A Framework
4 Notes
5 References
6 External Links
[edit]Process,
Fields
Notably, HRD is not only a field of study but also a profession. [6] HRD
practitioners and academia focus on HRD as a process. HRD as a
process occurs within organizations and encapsulates: 1) Training and
Development (TD), that is, the development of human expertise for
the purpose of improving performance, and 2) Organization
Development (OD), that is, empowering the organization to take
advantage of its human resource capital. [7] TD alone can leave an
organization unable to tap into the increase in human, knowledge or
talent capital. OD alone can result in an oppressed, under-realized
workforce. HRD practicitioners find the interstices of win/win solutions
that develop the employee and the organization in a mutually
beneficial manner. HRD does not occur without the organization, so
the practice of HRD within an organization is inhibited or promoted
upon the platform of the organization's mission, vision and values.
Other
typical
HRD
practices
include:
Executive
and
supervisory/management development, new employee orientation,
professional skills training, technical/job training, customer service
training, sales and marketing training, and health and safety training.
HRD positions in businesses, health care, non-profit, and other field
include: HRD manager, vice president of organizational effectiveness,
training manager or director, management development specialist,
who can Assist in solving problems that may arise. Organisational CultureOrganisational culture is the pattern of beliefs, knowledge, attitudes, and customs that
exists within an organisation. Organizational culture may result in part from senior
management beliefs or from the beliefs of employees.
Organizational culture can be supportive or unsupportive, positive or negative. It can
affect
the ability or willingness of employees to adapt or perform well within the organisation.
The most effective work culture is one that supports the organizations HR strategies by
aligning behaviors, processes and methods with the desired results. It is not just
achieving
results but the methods through which they are achieved that are critical to long-term
success.
Before any HR strategy is designed there must be a clear understanding of the
organisation, its current values, its structure, its people as well as its goals and vision for
the future.
HR ProcessesThe HR system of an organisation should be comprehensive enough to take care of
employees from the time they join till the time they leave HR. Their demands must not
beignored, but a feeling of belongingness be created. Process should be very clear and
impartial, so that employees faith in organisation. From recruitment to retirement whole
process should be according to employees expectation and ability of employer.
Importance of looking at the organisation climate are: Looking at the organizational
climate, which means taking a closer look at what is
happening in and around in the HR scenario of the various organization. It is essential
towork on because directly or indirectly this environment affects the organization and
the employee.
Importances are:
Environmental factors of HR are prime influencing elements of change in HR strategy.
It gives HR professionals time to anticipate opportunities in HR area and time to plan
Job Analysis
HRP
Recruitment
Selection
Employee Training
Management Development
Career Development
Process of integrating people into a work
situation in a way that it encourages them to perform /
deliver to the best of their ability
Understanding needs
Designing motivators
Monitoring
Satisfaction Levels
Retention
HRD PROCESS
that is becoming more popular is to provide coaching sessions. This involves more than
just sending people for training.
Develop your executives to become effective leaders.
Manage the effectiveness of your training programs by ensuring the standard of your
training management is always up to expectation. The right leadership qualities of
corporate leaders ensure that the various matters relating to effective people
development are attended to without fail.
But What is Strategic Human Resource Development?
This means providing your people with training and development programs of various
types that are relevant to their respective role, duties and responsibilities.
The use of strategy in training and development requires that these are aligned to your
organizational needs in order to achieve its mission and objectives. For example, you
provide counter staff with communication and public relations skills. This is in addition to
training in the roles that they must play such as promoting products or services.
Organizational expansion requires employment of new employees. The same is true in
restructuring exercises which can result in the creation of new positions. If you have
plans to promote certain people to fill new executive positions, it is reasonable to
assume that you have an effective executive development program. This is an essential
part of succession planning. It is not enough that employees are required to attend
courses. Willingness and readiness to learn are important conditions for effective
learning and thus the effectiveness of training.
TASK ANALYSIS
Systematic identification of the fundamental elements of a job, and examination of
knowledge and skills required for the job's performance. This information is used in
human resource management for developing institutional objectives, training programs,
and evaluation tools. See also activity analysis, job analysis, and performance analysis.
DESIGNING EFFECTIVE HRD PROGRAM
Once the first phase of effective HRD processes i.e. the Needs Assessment phase is
completed, the organization has an access to data like: Where in the Organization
training is needed?
What kind of Training is needed?
Who needs to be trained?
What are the conditions under which the training should be provided?
In addition to having an access to these data, the management would also have
prioritized the needs so as to know which programs or issues need immediate attention.
Thus, starts the second phase of the HRD process i.e. designing effective HRD
Program. Now, this process involves six important activities: Setting Objectives
Selecting the Trainer/Vendor
Developing a lesson plan
Selecting program methods and techniques
Preparing materials
Scheduling the program
In addition to these six activities which are of prime importance, the other big picture
responsibilities are also described by Prof. RonaldSims. He argues that Training and
Development initiatives must emphasize employee competencies or KSAOs. What are
Objectives? Robert Mager defines objectives as a description of performance you want
learners to be able to exhibit before you consider them competent i.e. the training
program objectives describe the intent and the desired result of the HRD program.
Three important aspects of Objectives: Performance: An objective always says what a
learner is expected to be able to do and/or produces to be considered competent; the
objective sometimes describes the product or result of doing. Conditions: An objective
defines the important conditions (if any) under which the performance is to occur.
Criteria: Wherever possible, an objective identifies the criteria of acceptable
performance by describing how well the learner must perform in order to be considered
acceptable.
Why is it important to clarify objectives of training? y Objectives are the basis for
determining a training strategy y Objectives help to determine the necessary outputs
and contents of the training y Objectives provide a direction for all training activities y
Objectives help give a structure to the training y Objectives help trainers and
participants to stick to their common goal. TRAINING OBJECTIVE PLANNING MATRIX
Outputs: (the results which your training has to produce) Topics: (the problems which
must be addressed in order to have the desired effects) Contents: (the exact information
you want to provide during the training) Training Input: (the form in which you want to
transport the information) Helping questions: Which steps do you have to introduce to
the trainee? What does he have to know for that? Which details do you want to give
him? How do you provide this information? 1. 2. This model was first used by the
American Red Cross Society. It is now also followed at IBM. The Make versus Buy
Decision Once the training objectives are set, the organization has to make a series of
decisions as to whether they would develop the program in-house or purchase the
program (or parts of it) from an outside vendor or consultants. Factors to consider
before purchasing an HRD program Expertise: Whether the organization has the
desired expertise to develop and implement a program in-house. Timeliness: When it
is timelier to hire an outside agency to facilitate the process. Number of Trainees:
Generally, the larger the number of trainees, the greater the likelihood that the
organization would be willing to design the program itself. Subject Matter: If the subject
matter is sensitive or proprietary the HRD department would conduct the program inhouse.
Cost: The HRD department always considers the costs, but only in concert with other
factors. Size of HRD: The size is again an important factor. X-Factor: Some other
extraneous conditions that would make it preferable that an outside agency be used to
conduct the skills training. Other factors to be considered are: Vendors Credentials:
including the certificates, degrees, and other documents of the vendors expertise.
Background: Number of years in business and experience in the particular content area.
Experience: Vendors prior clients, success with them, references
Philosophy: Comparison of the vendors philosophy with that of the organization.
Delivery Method: Training methods and techniques used.
Still some other factors are: Content, Actual product, Results, Support, and Request for
Proposal
Human Resource Management (HRM), a relatively new term, that emerged during the
1930s. Many people used to refer it before by its traditional titles, such as Personnel
Administration or Personnel Management. But now, the trend is changing. It is now
termed as Human Resource Management (HRM). Human Resource Management is a
management function that helps an organization select, recruit, train and develops.
Human Resource Management is defined as the people who staff and manage
organization. It comprises of the functions and principles that are applied to retaining,
training, developing, and compensating the employees in organization. It is also
applicable to non-business organizations, such as education, healthcare etc. Human
Resource Management is defined as the set of activities, programs, and functions that
are designed to maximize both organizational as well as employee effectiveness
Scope of HRM without a doubt is vast. All the activities of employee, from the time of his
entry into an organization until he leaves, come under the horizon of HRM.
The divisions included in HRM are Recruitment, Payroll, Performance Management,
Training and Development, Retention, Industrial Relation, etc. Out of all these divisions,
one such important division is training and development.
The principal objective of training and development division is to make sure the
availability of a skilled and willing workforce to an organization. In addition to that, there
are four other objectives: Individual, Organizational, Functional, and Societal.
Individual Objectives help employees in achieving their personal goals, which in turn,
enhances the individual contribution to an organization.
Organizational Objectives assist the organization with its primary objective by bringing
individual effectiveness.
TRAINING VS DEVELOPMENT
Every organization needs to have well-adjusted, trained, and experienced people to
perform the activities that must be done. As jobs in todays dynamic organizations have
become more complex, the importance of employee education has increased. When
jobs were simple, easy to learn, and influenced to only a small degree by technological
changes, there was little need for employees to upgrade or alter their skills. But that
situation rarely exists today. Instead, rapid job changes are occuring, requiring
employee skills to be transfomed and frequently updated. In organizations, this takes
place through what we call employee training.
Although employee training and employee development are similar in the methods
used to affect learning, their time frames differ. Training is more present-day oriented; its
focus is on individuals current jobs, enhancing those specific skills and abilities to
immediately perform their jobs.
Employee development, on the other hand, generally focuses on future jobs in the
organization. As your job and career progress, new skills and abilities will be required.
As you are groomed for positions of greater responsibility, employee development
efforts can help prepare you for that day.
Career planning
Career development
employees
to assume
higher
positions
and
competencies.
To
identify
the
training
needs.
Self appraisals
Peer appraisals
Superior appraisals
MBO
be included
as a part of
organisations.
EMPLOYEE EMPOWERMENT
Many managers are reluctant to fully accept and apply employee empowerment as they
feel they have to" let go" of their power. Empowerment is not about "letting go, it's about
sharing your power with the ones below you. However, employee empowerment will
change processes and their impacts: as decision making, problem solving etc.
Empowerment is a further step from participation; it's about action and autonomous
decisions and analysis.Employees have full authority to not only participate in decision
making processes but to make decisions based on their own findings and expertise.
Successful empowerment involves trust, respect and openness.
In your role as manager it's imperative to believe in your team's ability to operate and
make decisions autonomously. At the same time it is also important to be there as a a
facilitator and a coach. The best approach to start the empowerment process is to
discuss with your team and design a plan that makes empowerment a practice without
overwhelming them. And as Guy Kawasaki writes in his wonderful book Enchantment " Want to change the world? Change caterpillers into butterflies? This takes more than
run-of-the-mill relationships. You need to convince people to dream the same dream
that you do. That's a big goal, but one that's possible for all of us.
Where to start?
Start with yourself: Embrace PARTICIPATORY Management and the empowering
process as a natural outcome. The most important principle guiding Participatory
Management is the utilization of skills at different levels and in different ways. When
staff are involved in the process that leads to generate ideas, share skills, take active
lead, the likelihood increases that they will also embrace the share of power.
PARTICIPATORY MANAGEMENT taps into the creative potential and the knowledge of
people and further builds their capacity to direct their own development.
Prepare and Train for empowerment: Explain to your team the meaning and benefits of
empowerment. Take the time to describe the change in their roles " from decisioncarriers to decision -makers" .Train them in techniques that generate ideas as
brainstorming and other participatory methods.
Create opportunities for crosslearning: Have members of a team who has gone through
the empowering process to share their experience. Your team will not only have a
chance to learn about the benefits and challenges, but to also know that the real
empowerment exists and it works.
One step at a time: In the beginning chose assignments and projects they easily led
themselves to participatory efforts. Gradually tackle to the point which team members
tackle all projects collaborately.
What are the benefits?
Employee empowerment is a process that benefits individuals, managers and the
overall productivity of companies. Employees become more involved, feel valued and
stimulated to overdeliver.
People who work on a job develop their skills daily. They know exactly what works
efficiently and what doesn't. They also have very creative ideas on improving situations
and solving problems. They become experts without the power of exercising their
creating
When people are given the authority to plan and implement a project it gives them
"ownership" and it makes them more committed to make it successful.
Indicators of Employee Empowerment:
Empowerment is hard to measure. There are no statistics and number to determine
percentages or amount of empowerment. t is important to identify qualitative criteria to
measure the positive impact of empowerment without forgetting that the change does
not happen overnight.
Indicators to success are:
Open management - team members participate actively in meetings, diagnose issues,
analyze and identify solutions. Managers believe in their capacity and have less or no
control in processes that involve finding of solutions, decision making etc.
Team spirit - high morale, enthusiasm
Decentralized control: each team member functions relatively autonomously: interlinking
job descriptions; clarity on individual roles.
The Quality of Worklife department implements programs and practices that encourage
a positive and productive work experience at Penn. QOWL services address the key
areas of Work-Life Balance, Health Promotion and Wellness, and Staff Appreciation and
Recognition. More information on the history of QOWL programs at Penn is available
here.
Penn's Nursing Mothers Program can help you make a smoother transition back to work
when you're nursing your newborn.
Flexible Work Options offer creative solutions to help you balance work and family
demands.
Snow Day Child Care is available when Philadelphia public schools close due to
inclement weather (pre-enrollment required).
Worklife Resources is an important tool for finding child care, school-age care, and/or
elder care services to meet your familys needs and preferences. Youll also find
information to address a wide range of dependent care challenges, such as learning
issues, applying for college, preparing a parent for group care and more.
School Strike Guidance provides resources to help parents in the event of a school
strike.
Health Promotion and Wellness Improve your physical and emotional health and
wellbeing.
Penn's Employee Assistance Program provides free, 24/7 resources for you and your
family, including counseling, referrals and information about personal or professional
concerns.
Annual Health Fairs held each year in April feature free health screenings and a wealth
of information.
Flu shots are available to faculty and staff every fall.
Wellness workshops explore nutrition, lifestyle, exercise and other health-related topics.
Penn's Recreation Department provides group exercise classes, personal training, gym
membership and more at attractive rates.
The Penn Walking Program makes walking, jogging or running a part of your routine by
tracking your progress and keeping you motivated.
Weight Watchers helps members shed excess pounds with on-campus meetings.
Maintain, Don't Gain gives you the support you need to avoid gaining weight during the
holiday season.
Quit smoking resources can help you kick the habit.
Staff Recognition and Appreciation Enjoy Penn's recognition and appreciation of your
contributions to Penn's mission.
STATEGIC HRD
Source: A Strategic Human Resource Management System for the 21st Century. Naval
Personnel Task Force, September 2000
The six broad interconnected components of this system consist of three planning steps
and three execution steps.
The top three components represent the need for planning. Organizations must
determine their strategic direction and the outcomes they seek. This is usually
accomplished with some form of strategic planning. Classic strategic planning is a
formal, top-down, staff-driven process. When done well, it is workable at a time when
external change occurs at a more measured pace.
However as the pace and magnitude of change increases, the approach to strategic
planning changes substantially:
First, the planning process is more agile; changes in plans are much more
frequent and are often driven by events rather than made on a predetermined
time schedule.
Second, the planning process is more proactive. Successful organizations no
longer simply respond to changes in their environment, they proactively shape
their environment to maximize their own effectiveness.
Third, the planning process is no longer exclusively top-down; input into the
process comes from many different organizational levels and segments. This
creates more employee ownership of the plan and capitalises on the fact that
often the most valuable business intelligence can come from employees who are
at the bottom of the organizational hierarchy.
Lastly, the strategic planning process less reactive and more driven by line
leadership.
department should be included in all decision making right from the start to the end
The integration manager should be selected very carefully Retain your key personnel
CHALLENGES AND ISSUES OF HRD Changing workforce demographics
The workforces nature and compositions has undergone significant changes in terms
of employee qualification, skills and other personal characteristics. With increased
spread of education, on one hand, more and more young people with higher
qualification and skills arejoining the ever increasing workforce. They have higher
aspirations and are highly career minded and want to achieve excellence in short span
of time. And on the other hand ,increasing number of women employees is making up
significant proposition of theworkforce.
Competing in global economy
Globalization has transformed the way organization used to do business earlier.
Highlycomplex, complicated and competitive environment has made the organization to
focus ontheir last reliable source of competitive advantage i.e. human resources. Newer
andinnovative human resource development programmes, strategies and processes
are requiredto continuously develop human competencies and enable people to adapt
to a uncertain andcomplex business environment in order ensure the competitiveness
and survival of theorganization.
Eliminating the skills gap
Increasing customer orientation, fast changing technology, increased competition, etc.
hasresulted in fast obsceneness of skills of the employees. Organizations in their bid to
stayafloat have to continuously develop and upgrade skills of their employees through
humanresource development programmes.
Need for lifelong learning
Organizational learning has become a vital to continuously develop employee skills
andcompetencies for value addition to the organization. Employees themselves have to
takecharge of their learning themselves. Self directed learning is more effective,
meaningful andgoal oriented. Learning provides knowledge, knowledge provides
wisdom and wisdomprovides direction.