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Chapter 5, Human Resource Development and Management

Chapter 5, Human Resource Development and Management

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Published by Rameez Ramzan Ali
Human Resource Development and Management
Human Resource Development and Management

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Published by: Rameez Ramzan Ali on Apr 05, 2010
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Chapter 5 Human Resource Development and Management

Human Resource Development and Management
1.

What is Human Resource Management? What is the difference between Human Resource Management and Personnel Management? What is the role of Human Resource Management in TQM?

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3.

What is Human Resource Management?
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Human resource management is responsible for how people are treated in organizations. It is responsible for bringing people into the organization, helping them perform their work, compensating them for their labors, and solving problems that arise. There are seven management functions of a human resources (HR) department that will be staffing, specifically addressed: staffing, performance appraisals, appraisals, compensation and benefits, benefits, training and development, employee and labor relations, relations, safety and health, and human health, resource research.

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What is the difference between HRM and HRD?
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HRM means just what it says--human resource says--human management--the management of people or management--the resources in an organization. HRM encompasses the traditional areas that most people think of as HR, including compensation and benefits, recruiting and staffing, employee and labor relations and occupational health and safety.

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What is the difference between HRM and HRD?
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On the other hand, HRD--human resource HRD--human development--is the development of the resources in a development--is company: organization development, performance management, training and learning, and coaching. HRD includes evaluating the performance of employees, helping employees learn and develop new skills, and assisting them with weaknesses or areas of development. HRD also includes helping an organization develop-develop-diagnosing problems with how people work together in certain areas of an organization.

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What is the difference between HRM and HRD?
€

€

€

HRM means just what it says--human resource says--human management--the management of people or resources management--the in an organization. HRM encompasses the traditional areas that most people think of as HR, including compensation and benefits, recruiting and staffing, employee and labor relations and occupational health and safety. On the other hand, HRD--human resource HRD--human development--is the development of the resources in a development--is company: organization development, performance management, training and learning, and coaching.

What is the role of TQM in Human Resource Management?
Total quality management (TQM) has far-reaching farimplications for the management of human resources. self-control, autonomy, It emphasizes self-control, autonomy, and creativity among employees and calls for greater active cooperation rather than just compliance. Indeed, it is becoming a maxim of good management that human factors are the most important dimension in quality and productivity improvement.

The Baldrige Award Criteria for aligning HRM with TQM practices
The key elements of how work force is enabled to develop its full potential to pursue the company¶s quality and operational objectives. Also examined are the company¶s efforts to build and maintain an environment for quality excellence conducive to full participation and personal organizational growth.
1. 2. 3. 4. 5.

Human Resource Planning and Management Employee Involvement Employee Education and Training Employee Performance and Recognition Employee Well-being and Satisfaction Well-

20 40 40 25 25

Total Points: 150

TQM and HRM
Following areas are of significant importance in relation to TQM and HRM:
1. Employees Involvement 2. Employees Empowerment 3. Suggestion System 4. Training & Development

Involvement: A Central Idea of Human Resource Utilization
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At the heart of the TQM is the concept of intrinsic motivationmotivation-involvement in decision making by the employees. Employee involvement is a process for empowering members of an organization to make decisions and to solve problems appropriate to their levels in the organization. It¶s use is credited for contributing to the success enjoyed by Japanese in the world market place.

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Involvement: A central idea of Human Resource utilization
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Employee involvement is not the replacement for management nor is the final word in quality improvement. It is a means to better meet the organization¶s goals for quality and productivity at all levels of an organization.

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Involvement: A central idea of Human Resource utilization
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€ €

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Knowledge of motivation can help us to understand the utilization of employee involvement to achieve process improvement. One of the first and most popular theory was developed by Abraham Maslow. He explained the motivation could best be explained in terms of a hierarchy of needs and that there were five levels These levels are:
1. 2. 3. 4. 5.

Survival Security Social Esteem SelfSelf-actualization

Involvement: A central idea of Human Resource utilization
Self-actualization Esteem Social Security Survival

Involvement: A central idea of Human Resource utilization Involvement: A central idea of Human Resource utilization

Empowerment
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The dictionary definition of empowerment is to invest people with authority Empowerment should not be confused with delegation or job enrichment. Delegation refers to distributing and entrusting work to others. Employee empowerment requires that the individual is held responsible for accomplishing the whole task. The employee becomes process owner- thus the ownerindividual is not only responsible but also accountable.

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Involvement: A central idea of Human Resource utilization Involvement: A central idea of Human Resource utilization
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The logic behind employee empowerment us that the people closest to a problem or opportunity are in the best position to make decisions for improvement and to solve problems appropriate to their levels in the organization.

AndonAndon-Fixed Position Stop System

AndonAndon-Fixed Position Stop System

AndonAndon-Fixed Position Stop System

Involvement: A central idea of Human Resource utilization
³Suggestion System´ € Suggestion systems are designed to provide the individual with the opportunity to be involved by contributing to the organization.
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The key to an effective system is management commitment. Management must make it easy for employees to suggest improvements Stimulating and encouraging employee participation starts the creative process

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Five Ground Rules for Stimulating and Encouraging Suggestion System
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Be Progressive by regularly asking your employees for suggestions Remove fear by focusing on the process and not on the person. Simplify the process so it is easy to participate Respond Quickly to suggestions and within specified period of time Reward the idea with published recognition so that everyone knows the value of contribution.

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5.

Training and Development
Why Training is important in TQM based organizations? As, at the heart of TQM is the concept of intrinsic motivation-involvement in decision making by the employees, it means more responsibility, which in turn requires a greater level of skill. This must be achieved through TRAINING.

Training and Development
Basic Steps of Effective Training Plans
1.

The first step in training process is to make everyone aware of what the training is all about. Thoughts suggestions should be gathered. The second step is to get acceptance. The trainees must feel that training will be of value to them. The third step is to adept to adapt the program. Is everyone ready to buy into it? Does everyone feel they are a part of what is going to take place? The fourth step is to adept to what has been agreed upon. What changes must be made in behavior and attitudes.

2.

3.

4.

What kind of Training be imparted to the employees?
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The type of training depends on the need of the particular company. The areas that should be common to all organizations¶ training program is problem solving and communication skills. In addition to above areas, all members should receive training in quality awareness (TQM), statistical process control (SPC), safety, and technical aspects of job. The only difference among types of training is that some may be required more often and for greater length of times than others.

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Who Needs to Receive Quality Training?
Subject Matter
Top Management Quality Managers Other Middle Managers Specialists Facilitators Workforce

Quality Awareness Basic Concepts Strategic Quality Management Personal Roles Quality Processes Problem Solving Methods Basic Statistics Advanced Statistics Quality in Functional Areas Motivation for Quality

This Training Plan was suggested by Joseph Juran

Why Training Programs fail?
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There are many different reasons but they fail mainly because the focus is usually on the training itself and not on helping the organization improve in a real and measurable way. Training should be action oriented so that results can be obtained right away.

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The Performance Appraisal
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The purpose of performance appraisal is to let employee know how they are doing, and provide a basis of promotions, salary increases, counseling. Many supervisors look at appraisals as one of the unpleasant duties they must performance. Conversely some supervisors feel it a pleasant duty and can reveal how effective an employee is in contributing to the success of organization. Every effort should be made to avoid errors in performance evaluations. An unfair evaluation could cost an organization a valuable employee.

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Criticism on Performance Appraisal System
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Appraisals nourish short term performance and destroy long-term planning longAnother criticism states that individual appraisal destroys teamwork. If teams are to become a cohesive teamwork. unit of ³all for one and one for all,´ then individual ranking would undermine the entire concept. A third concern is the assumption that an individual is responsible for all results. In reality results are results. frequently beyond an individual¶s control, such as processes and equipment. Deming has stated that 85% of the problems are the result of the system. Last, there is a concern that appraisals are frequently based on subjectivity and immeasurable. immeasurable.

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The Deming's Reservation about performance appraisal system
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The traditional performance appraisal system has been criticized as being counterproductive and unnecessary by Deming. He once stated, "In practice, annual ratings are a disease, annihilating long-term longplanning, demobilizing teamwork, nourishing rivalry and politics, leaving people bitter, crushed, bruised, battered, desolate, despondent, unfit for work for weeks after receipt of rating, unable to comprehend why they are inferior..."

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Should individual performance appraisals be eliminated, as suggested by Deming?

The answer is: This unlikely in view of historical and widespread use of human resource management tool. € Rather than scrap performance appraisals, a number of practitioners have suggested that the performance appraisal system be improved.
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What should then be a good performance appraisal system
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First of all, there should be a good relationship between the employee and appraiser Employees should be made aware of appraisal process, what is evaluated and how often. Employees should be told how they are doing on a continuous basis, not just at appraisal time. The appraisal should point out strength and weaknesses as well as how performance can be improved. improved. The performance must be based on standards that are developed and agreed upon by the appraiser and employee. And lastly, an employee should always be given an opportunity to comment on the evaluation, to include evaluation, protesting, if desired.

Appraisal Formats
Type
Ranking

Description

Compares employees by ranking from highest to lowest Narrative Gives a written description of employees strengths and weaknesses Graphic Indicates the major duties performed by the employees and rate each duty with a scale, which is usually 1(poor) to 5 (excellent) Forced Choice Places each employee in a category with a predetermined percentage-for example, percentageexcellent (10%), very good (25%), good (30%), fair (25%), and poor (10%)

Compensation System
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The traditional compensation systems have been based on:
1. Pay for performance 2. Pay for responsibility (a job description)

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Each of these are based on individual performance, which creates a competitive atmosphere among employees. If compensation criteria are focused exclusively on individual performance, a company will find that initiatives promoting teamwork will fail

Compensation System in TQM Philosophy
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The TQM Philosophy emphasizes flexibility, lateral communication, group effectiveness, and responsibility for an entire process that has the ultimate outcome of customer satisfaction. A team based compensation approach is Gain Sharing or Performance Bonus to all employees. It is a system of management in which an organization seek higher levels of performance through involvement and participation of its people. The approach is a team effort and reinforces TQM, partially because it contains common components, such as involvement and commitment.

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End of Chapter 5

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