You are on page 1of 9

Lesson-8 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, organisational oriented

HRM/Personnel Management 1.a routine and administrative function 2. function more more independent with separate roles to play. mainly a reactive

3. more proactive; it copes 3.

with the changing needs of function responding to the the people as well as demands which may arise. anticipate these needs. 4.developing 5. the whole 4. concerned with people only. the 5. It is basically the of organisation, e.g. OD. involvement

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 its 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.

- 31 -







HRM Mechanisms or Sub-systems or Instruments

Industrial Relations

Skill and Competency Mapping

Human Resources Planning

Setting Safety and Health Stndards Job Analysis Compensation Designing

Job Description



Job Specification Performance Appraisal

Training and Development

Setting Performance Standards(KRA/KPAs)

Career planning and Development

Management Development and Succession

- 32 -

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 holders 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 It helps employee in self-appraisal - 33 highly crucial tools of Modern organizations .

Performance Appraisal is very much in demand because;

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 managers 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 individuals 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 ones potential. A persons achievement are invariably affected by the - 34 -

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 wont 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.

- 35 -

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.

- 36 -








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

- 37 -

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 redesigning 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 - 38 -

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 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?

- 39 -