Lesson-8

HRM versus HRD

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

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

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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 HRM .

MODELS

PERSONNEL MGMT.
OF

MANAGEMENT
WELFARE MGMT.

190 194 198

PERIOD

HRM Mechanisms or Sub-systems or Instruments

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

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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,
shortlisting 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;
It helps employee in self-appraisal
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It Reviews his performance in relation to the objectives and other behaviors.
It Checks reviews done by the superiors.
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

It make thorough potential appraisal of the employee ..

Appraisal the potential of the employee annually.
Counseling
“Counseling 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 “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 counseling.

They give critical and supporting feedback.

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

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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. HRDepartment
analyses and develops various Training programmmes. For development of human resources
through Training, what does the HR department do?
It assesses training needs of different groups of employees.
It searches available outside training facilities.
It develops in-company training strategy including pre-training and post-training activities.
It prepares training packages and modules.
It organizes specific programmes as well as general development programmes with own and
outside resources.
It evaluates training efforts.

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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 & 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 hihger 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 resposibility.

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., interms 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

APPRAISAL

CRITICAL
ATTRIBUTES COUNSELLING

Communication Policies

HR Department stresses a lot on Communication aspects tobe 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:

Promotion
Salary Review
Salary Administration

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OD Exercises

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

Organisational Diagnosis
Team Building
Task Force
It 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

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

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 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 can be attributed to the quality of its HRM practices,
especially trining, rale 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 that it is not only the structure of the certain activity that can directly lead to
a desired outcome. Thus, 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 the above mentioned instruments to generate the desired outcomes.

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

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