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Human Capital Management Chapter 9 HUMAN RESOURCE DEVELOPMENT HRD implies that the organization wants to enhance the

overall capabilities of its employees to develop their potential in directions best suited to them. 9.1 Basic Concepts Of HRD: The belief that every person has potential which can be utilized for better productivity or services has enabled to establish a process of converting this potential into reality. In this process the human being is continuously helped to acquire knowledge and skill and to change to the organizational culture. Therefore the basic concepts of HRD are: • To acquire capability to meet present and future job specification. • To develop an organizational climate to bring about team spirit and group dynamism.





Fig. 1 There are efforts being made to synchronies three basic elements of HRD: • Education • Training

• Development To fulfill desired objectives. Training and education can be appraised immediately by simple question answer approach but development evaluation needs ability to predict the long term results. A realistic and long-term HRD plan appears to be difficult but if planned properly, funded adequately and supervised minutely, implementation of HRD practice helps the organization to grow fast. 9.2 Facts About HRD:  It is with belief that under certain circumstances people are capable of improving their capability.  It is the process of helping people to acquire competencies.  In an organizational context HRD “…is a process by which employees of an organization are helped in a continuous and planned way to acquire or sharpen capabilities.  HRD develops an organizational culture in which supervisorsubordinate relationships, team work, collaboration among units are strong and contribute to the professional well being, motivation and pride if employees.  Employees are continuously helped to acquire new competencies through a process of planning, feedback, training etc. 9.3 Why HRD Is Needed?  It is required for continuous development of competencies.  To avoid a saturation point in terms of growth of an employee by enhancement of competencies.


 It helps employee to develop himself/her in a given organizational climate to improve not only his/her performance but that of the organization.  It develops creativity in employees.  It enables an overall development of personality of employees and the organizations.4 Benefits Of HRD Unlike education. 9.  It provides long term & short term development opportunities. Some of them are:  It helps employee to diagnose his/her own strengths and weaknesses. To improve the service and effectiveness of employees. training in HRD not only develops the competence of the individuals but also develops his/her latent potential for the total effectiveness of the organization.  It develops trust and openness amongst employees thus enriches interpersonal relationships. 3 .  It creates environment for realistic feedback and guidance from superiors.  It helps organizations to use available human resource for future challenging responsibilities after developing them.  It smoothens the career development plans. The benefits from HRD are therefore many.

Systematic Representation Of Linkages Between HRD Instruments. Outcomes And Organizational Effectiveness. Synergy other and Respect of each of Variables • Role clarity • Planning development by every employee Awareness competencies required for job performance Practice Organizations More Trust Collaboration & Team Work Authentic Openness Risk taking Value Generation Clarification Of Norms Standards • Increased & of job involvement Problem programs Other mechanisms 4 . HRD Mechanisms or HRD or HRD Processes & HRD Outcomes Organizational Dimensions • • • • • Higher Productivity Growth Diversification Core Reduction More Profiles Better Image Job & & Effectiveness Subsystems Instruments • HRD Department • • • • • Professional Appraisals Review Discussions. Processes. feedback Counseling sessions Role exercises Potential development exercisers • Training communication policies • • • • • Job Rotations OD exercises Rewards Job enrichments • • • • • • • • analysis • Climate Variables • of • • More Competent People Better Developed roles Higher commitment • • More Solving Better Utilization Human Resources • Better Organizational Health • More Teamwork.

Data on employee etc Other Factors Personnel Policies. Other Factors Other Environment. Resource Availability. 2 9.Communication • • More Objective rewards Generation of objective. Investment on HRD. Appraisal. Top Environment. Management styles. History Nature of Business etc Fig.  For operational purposes large Organizations focus on HRD. Previous Culture. Line Manager’s Interest etc. raining. Technology. History. planning etc.  This belief is to be manifested in managerial practices and in the behavior of managers and supervisors who are the key agents of HRD in the organization. generally the areas concern are Recruitment. 5 . Top Management Commitments.4 Features Of HRD In An Organization  Founded on the belief that people are capable of growth and management has to create an environment of growth.

9.  Learning is totally based on some form of practice or experience. 6 . and it takes place through number of development methods undertaken by the organizations.5. this is been referred as on the job training.  Any temporary change in behavior due to fatigue or any reason is not a part of learning. There are four important points in terms of learning and development.9.1 Facts About Learning And Development  Learning if it is adopted to the real needs is enforced it creates a longterm impact.5 LEARNING AND DEVELOPMENT Definition of Learning: Any relative permanent change in behavior that occurs as a result of experience.  Learning involves a change in behavior and opens a way for development. Learning is a kind of action.  The technique of on the job training is very useful in the case of leaning and Development in teaching skills at the work place or the desk or in the laboratory.  There must be practice or experience must be reinforced in order for learning to occur The most effective and quick method of Learning is Learning on the job. In this method the trainee has direct personal responsibility.

9.4 Benefits Of Job Rotation Method In Order To Highlight The Relevance Of Learning And Development.  Early Successes increases the chances for effective learning and development.5.  It is mainly used for management development methods where managers are exposed to handle the situation of other departments. which he will be facing on the job.5.. 9.  Learns to locate the fault and corrects error. and gets positive and reinforcive support.2 Characteristics And Principles Of Learning And Development:  It requires purposeful activity.  It is a Problem solving process. 9. The focus is mainly on imparting practical inputs in order to convert it into a more fruitful training.  It is a effective method to develop small number of people in various jobs by rotation.  Confidence in speed and senses of productiveness.3 Benefits Of On The Job Training In Order To Highlight The Relevance Of Learning And Development  The trainee learns effectively as he experiences the same problem.5. 7 .  Friendly competition stimulates learning and development.  Learning and development go hand in hand.

 Action plan to achieve the vision. 8 . 9.  To making known yourself and your accomplishments.1 Following are the points to highlight Personal Development Planning:  To first of all identify individuals interest. skills and potential.  To seek Counseling from the manager and from the HR organization.  Communicating to management the individual career plan.6.  To evaluate the internal and external opportunities. Such a exposure gives you the opportunity of acting in a service role with increased knowledge and sensitivity.6 PERSONAL DEVELOPMENT PLANNING Survival.  Results focusing on maintaining the change. 9. Personal Development planning focuses on for main steps  Individual Needs  Vision linked with needs. Growth and Effective existence of an organization require a succession of people to fill various important jobs.  To identify life goals and career goals.  To develop a written plan (including schedule to achieve individual goals)  Seeking and obtaining the best first.

Processes.9.  To improve the individual employees performance on the job.6. What do you mean by Personal Development planning? What are the advantages of Personal Development planning? 9 . ------------------------------------------------------------------------------- Questions for discussion 1. Outcomes and Organizational Effectiveness.  To select the career which is suitable to ones life style.  To increase the level of Job Satisfaction. Give a systematic representation of linkages between HRD Instruments. 3.2 Advantages Of Personal Development Planning  It helps the individual to have the knowledge of various career opportunities. What do you mean by Human Resource Development? What is the need of developing Human Resource in an organization? 2.  To satisfy individuals’ esteem needs.

which bring about growth of the personality.Human Capital Management Chapter 10 TRAINING 10. but also those. 10 . which improve job performance. It attempts to improve their performance on the current job or prepare them for an intended job. It covers not only those activities. It gives people an awareness of the rules and procedures to guide their behavior. Development is a related process.1INTRODUCTION Training is the act of increasing the knowledge and skill of an individual for doing a particular job. Training is a process of learning a sequence of programmed behaviour. In the present scenario training is increasingly viewed as a means of fostering the growth of the individual employee but as an integrated part of organizational growth. It is application of knowledge.

S.3 Distinction between Training and Development Training is a short-term process utilizing a systematic and organized procedure by which non managerial personnel learn technical knowledge and skills for a definite purpose. Dale 10. Training is a process by which individual in the progress towards maturity and actualization of their potential capacities so that they become not only good employees but better man and women.Flippo “Training is the organized procedure by which people learn knowledge and \or skill for definite purpose”. In other words. 10.” Edwin. or to mould him to be fit for a higher job involving higher responsibilities.2 Definition Of Training: “Training is the act of increasing the knowledge and skills of an employee for doing a particular job. skills and abilities of employees to perform specific jobs are increased. training is a learning experience that seeks a relatively permanent change in an individual that will improve his/her ability to perform his job. B.Beach It is the training that bridges the gap between Job requirements and employees present specifications. Development is a long-term educational 11 . Thus. it can be concluded that training is a process that tries to improve skills or add to the existing level of knowledge so that the employee is better equipped to do his present job.

 “When” learning occurs.5 The Focus Of Training Is On Three Broad Objectives: 12 . Training is designed for non-mangers while development is designed for managerial personnel. Training and development differs in four ways:  “What” is learned.  To develop healthy and constructive attitude  To prepare employees for future assignments 10.  “Who” is learning.4 Objectives Of Training  The primary purpose of training is to establish a sound relationship between the worker and his job –the optimum man task relationship. Learning Dimensions Who? What? Why? When? Training Development Non Managerial Personnel Managerial Personnel Technical and Managerial Theoretical and operations Specific job related Short Term TABLE 1 Conceptual ideas General knowledge Long Term 10.process utilizing a systematic and organised procedure by which managerial personnel learn conceptual and theoritical knowledge for general purpose. Training refers only to instruction in technical and mechanical operations. while development refers to philosophical and theoretical educational concepts.  “Why” such learning takes place.  To upgrade skills and prevent obsolescence.

10.6. which would include guidance for design and execution as well as dissemination of relevant information to all employees. Training constitutes significant part of management control.6.7 A Model Training Program Should Encompass The Following Points:  Management overall responsibility right from planning stage to successful implementation.1 Organization Level:  It leads to improve profitability  It improves the job knowledge. To bring about attitudinal change. 13 .  The companies approach to the training function. 10.6 Importance And Benefits Of Training Training is important to develop the employees and make them suitable for the job.  To savagely cut waste. skills and morale of the work force  It helps in organizational development and preparation of guidelines for work  It enhances quality of work and appropriate climate for growth  It supports in improving organizational communication 10.  To bring about quality to be the very top of agenda.2 Individual Level:     It help in encouraging and achiving self development It provides a sense of growth in learning It increases job satisfaction and recognisition It helps the individual in effective problem solving 10. Benefits of training to following.

cost. In practice. Provision for annual or periodic surveys in order to ensure that training are need based and development oriented. But an organization cannot use all types of training methods for the reason like cost involved and also their relevance to organizational need hence. and knowledge the job holder must have to perform certain specified tasks.  Manpower Analysis:It is conducted through appropriate observation.  Identification of priority area since resources are always scarce and programs must be prioritized according to felt needs. a variety of training methods are employed for achieving these objectives. relevance to the participants. 10. level of trainees. This analysis is undertaken to know about the specific areas in which training is needed 10. role or position and what type of behavior.9 DESIGNING TRAINING METHODS Training methods are means of attaining desired objectives set for a training programme. etc. It requires systematic collection of data about the job. competence of trainers/instructors. environmental scanning and organizational climate analysis. such as purpose of training.It involves a careful study of jobs within in an organization in a further effort to define specific content of training. nature of contents. organization needs to select a method or mix of methods to meet its training needs the choice of training method would depend on a Varity of factors. supervisory evaluation.8 Identification Of Training Needs  Organizational Analysis: .  Task/Role Analysis: . utilization of resource. 14 .It involves a study of entire organization in terms of analysis of objectives. skill.

in this method.  Coaching: this is similar to the jit . structured courses. Off the job training methods 10.1 On the job oriented training methods . a trainee moves from one job to another and from one department to another. providing satisfaction from 15 .’  Job instruction training (JIT). The superior points out the mistakes committed by the new employee and then also gives suggestions to improve upon. On. a trainer or supervisor gives instruction to an employee how to perform his job. i. learning on the job itself by a variety of methods. In this method. This type of training method is more appropriate for developing multiskilling. the various training methods can broadly categorized into four groups as under: 1. are discussed here under:  On the job training (OJT). methods include in this cluster are those whose main objectives are centered around the job.Depending on the training result and the process employed to attain these. the new employee is placed on a job and taught the skills necessary to perform it a trainer or superior teaches the employee. which can range from relatively unsophisticated “observe and copy” method to highly..the job oriented methods 2. Since trainee learns by observing and handling the job this is also termed as ‘observing. As the name itself denotes. operational flexibility. and copying’ or ‘learning by doing. which fall into this category. This method of training is appropriate for acquisition or improvement of motor skills and routine and repetitive operations. The main methods. On the job training is probably the most Common approach to training. the superior teaches or guides the new employee about the knowledge and skills of a specifically defined job.9.  Job rotation: in this method.e. In this method.

routine jobs and broadening the overall perspective of the trainee. The trainees is presented with a pack of papers and files in tray containing administrative problems and are asked to take decision on these within a specified time limit.  In basket exercise: this is also called ‘in tray’ method of training. This type of training is commonly used for training personnel of clerical and semi-skilled grades. but the training is conducted away from the actual work floor. Decisions made by the groups are evaluated and the likely implications of the decisions are fed back to the groups. They make decisions just like these are made in real life situations.  Case method: the case is an actual event or situation on organizational problems.9. Then. This is built around the ‘incoming mail’ of manager.  Management games: the game is devised on the model of business situation. Trainees are asked to analyses the event or circumstances with an objective to identifies problems. trace out the causes for it and find out the solution to solve the problems. which is a written description for discussion purpose. In this method of training.2 OF THE JOB TRAINING METHOD: Role-play: this is just like acting out a given role as in stage play.  Vestibule training: this is a system in which employees learn their jobs on the equipment they will be using. trainees are divide into groups who represent the management of competing companies. 10. the trainees are required to enact defined roles on the basis of oral or written description of particular situation. 16 .

Development of positive thinking.laboratory training and encounter groups. this method is expensive and time consuming also. the trainer delivers a lecture on the particular subject. The trainees are provided feedback on their decisions.  Conferences/seminars: in this method.)The objective of sensitive training is to increase participants’ insights into their behavior and the behavior of others by encouraging an open expression of feelings in the trainer guide T-group. The major limitation of this method is that it dose not provide for active involvement of the trainees. The subject matter to be learned is prepared and condensed into logical sequence from more complex. The trainer monitors trainee’s monitors trainee’s independent progress through the programme. improvement in inter-personal relationships.  Sensitive training : sensitive training is also known by a Varity of names such as t-groups . Notes are also given to the trainees. This method is found more appropriate in simulations where some information is required to be shared to a large number of audience and which does not require more participation from audience. This technique is used to teach nonmotor and behavioral skills. (The “T” is for training.  Lectures: lecture is by far the most commonly used direct method of training. The conference leader must have the necessary skills to lead the discussion in a meaningful way without losing sight of the topic or theme.  Programmed instructions: this is the recently developed technique based on the principle of positive reinforcement developed by B. It is a low cost method. This method is used to help employees develop problem-solving skills. proper 17 . This approach is useful for understanding people’s behavior particularly when they are involved in inter personal relationships.Skinner.The decision taken by the trainees are compared with another. which is followed by queries and discussions. The trainee gets instant feedback on his learning however.F. In this method the trainer provides knowledge to the trainees usually from prepared notes.

Short Answer Type Questions 1. What are the objectives of training? Explain the need for training in an industrial organization? 3. Write short notes on:  Management Games. “Training programmes are helpful to avoid personnel obsolescence ” Discuss. Long Answer Type Questions 1. the appropriate method has to be chosen to impart training. Given the purpose of a training programme. 10. the level of participants the competence of trainers. etc. 4. What do you mean by training? How will you identify the training needs in an organization? 2..  Case Study. 18 .10 Conclusion: To conclude. Explain the various methods of training. each method of training has some strengths and weaknesses.motivation of people and organizational development are some of the important benefits of transactional analysis as a technique of training.

Management development means not only improvement in job performance . attitude. 3. Accordingly.  Transactional Analysis.  Sensitivity Training.1 Introduction While drawing a distinction between training and development in previous chapter. It means that 19 . Vestibule Training. the concept of development/ based on that concept. we introduced in brief. The term “development” implies overall development in a person. but also improvement in knowledge. etc. we elaborate it in more detail. What is the need for training in an organization? Chapter 11 MANAGEMENT DEVELOPMENT 11. personality. Differentiate training from development. behaviorism of an executive. 2.

“Any activity designed to improve the performance of existing managers and to provide for a planned growth of managers to meet future organizational requirements is called management development.executive/management development focuses more on the executive’s personal growth. one is the formal training and the other is through the on the job experience..” S. Management Development is concerned with improving the performance of the managers by giving them opportunities for growth and development. ” Flippo. Important Techniques Of Management Development On-The-Job Technique Off-The-Job Technique 20 .B.2 Definition: “Executive /Management Development includes the process by which managers and executives acquire not only skills and competency in their present job but also capabilities for future managerial tasks on increasing difficulty and scope.Bhudiraja 11. 11.3 Techniques Of Management Development There are mainly two techniques of management development. Management Development is a systematic process of growth and development by which managers develop their abilities to manage.

1 On The Job Techniques 1 Coaching: In coaching the trainee is place under a particular supervisor who acts as an instructor and teaches job knowledge and skills to the trainee. 3. 2. The Case Study: Cases are prepared on the basis of actual business situations that happened in various organizations.2 Off-The Job Technique 1. 21 .3. 11.Coaching Job Under Multiple Case method Incident Role-playing In basket Business Sensitivity Simulation Grid training Conference Lectures Fig. 1 11. Job Rotation: The transferring of executive s from job to job and from department to department in a systematic manner is called job rotation. the full responsibility of the position currently held by his superior. 4 Multiple Management: Multiple management is a system in which permanent advisory committees of managers study problems of the company and make recommendations to higher management. Under Study: An under study is as person who is in training to assure at a future time.3.

various memoranda and all data pertaining to the firm. key personnel. Conference: A conference is a meeting of several people to discuss thee subject of common interest. 8. improves inter group relations.2. It aims to develop the trainee in the area of intellectual ability. It stats with upgrading managerial skills. Managerial grid: It is a six-phase programme lasting from three to five years. develops implementation method and ends with an evaluation phase. 4. 6. practical judgment and social awareness. 22 . Incident Method: This method was developed by Paul Pigors. 7. its products. goes into corporate planning. continues to group improvement. 3. Role Playing: A problem situation is simulated by asking the participants to assume the role of particular person in the situation. Sensitivity Training: The main objective of sensitivity training is the “Development of awareness of and sensitivity of behavioural patterns of oneself and others”. Simulation: Under this technique the situation is duplicated in such a way that it carries a closer resemblance to the actual job situation. The trainee has to understand all of this and make notes of it. In Basket Method: The trainees are first given background information about a simulated company. 5.

9. Objectives of Executive/Management Development 1. Understand the problem of human relations and improve human relations skills. 7. CONCEPTS AND AREAS OF MANAGEMENT DEVELOPMENT PROGRAMMME General administration Q 1: How to decide overall company strategy? Q 2: How to evaluate capital expenditure proposals? Q 3: How to improve the flow of information needed to control the organization? Q4 : How to launch a new project? 23 . Improve the thought process and analytical abilities. 3. The lacquerer organizes the material and gives it to a group of trainees in the form of talks. Lectures: It is the simplest technique. 4. Provide opportunities to executives to fulfill their career aspirations. Prevent obsolescence of executives by exposing them to the latest concepts and techniques in their respective areas of specialization. 8. 2. Ensure availability of required number of executives mangers succession who can take over in case of contingencies as and when these arise in future. 6. Improve the performance of mangers at all levels. 5. Replace elderly executives who have risen from the ranks by highly competent and academically qualified professionals. Identify the persons in the organization with the required potential and prepare them for higher position in future.

Marketing & Sales Q 1: How to forecast demand? Q 2: How to generate new product ideas? Q 3: How to launch a new product? Q 4: How to determine the profitability of a product or product line? Q 5: How to improve product design? Production Q 1: How to remove factory bottleneck? Q 2: How to improve product quality and reliability? Q 3: How to cope with complex mixes? Such as several factories. or several products profitability made by several process. etc. Q 4: How to cut labour cost? Q 5: How to improve labour relations? Human Resource Q 1: How to improve training methods? Q 2: How to bring order and equality into wages and salary schemes? Q 3: How to recruit the right number of the right type of people? Purchasing Q 1: How to check quality and reliability of raw materials? Q 2: How to cut down the cost of purchasing an holding stocks? Research Q 1: How to reduce the time taken to complete research? 24 . delivery to many customers. or several products from many raw materials available from many different sources.

” Do you agree or Dis-agree? Discuss. Short Answer Type Questions 1. What do you mean by executive development? What are its objectives? 2. order and meaning in a person’s life. 3. People either have the ability to manage or they don’t. 5. Edwin B. Write a note on In Basket Exercises and Management Games. What do you understand by Transactional Analysis? -----------------------------------------------------------------------------------Chapter 4 CAREER MANAGEMENT Introduction Career Management: A career is all the jobs that are held during ones working life. “You cannot develop managers. Discuss the methods of Executive Development. List out the various On the Job methods of Management Development. What is Management Development? 2. 25 .Long Answer Type Questions 1. Discuss various objectives of Management Programme. Flippo defines career as a sequence of separate but related work activities that provides continuity and. 4. Which one you consider the most suitable for developing middle level managers and why? 3.

 Focus on psychological success rather than advancement.  Periodic programme assessment. Career management involves both organizational actions and individuals’ initiatives to ensure that when the career plans developed by the organizational basis.  Involvement of superiors.  Climate setting for career development.  Top management support.  Periodic skill assessment.  Small Pilot Programmes. Following are the key ingredients for career management.  Equal access and open enrollment.Career management focuses on career goals and it is the process of designing and implementing goals. which focuses on the process of implementing organizational career planning.  Use of human resource managers as consultants. 26 requirements and individuals aspirations undergo unanticipated changes.  Flexibility for individual needs. they are managed appropriately on a continuing .  Realistic feedback about career progress. plans and strategies to enable the organization to satisfy employee needs while allowing individuals to achieve their career goals.  Coordination of other human resource activities.

An incentive has a motivational power. Career management is complementary to management development and it is concerned with planning and shaping the path. The term in incentives means an inducement. To know where you are: . the organization should be alert to provide able people with training. which help in improving competencies among the employee of the organization. Incentives. stimulates one to action in a desired action. guidance and encouragement to enabler them to fulfill their potential.To leave the current organization on good terms and not under questionable circumstances. which rouses of. in the context of management succession. Other important point is to view your potential employer and position in terms of long-range career goals. To select a field of employment and employer : .To be aware of the opportunities available to you in the current position and to carefully and honestly posses current performance. and may be broadly grouped into 27 .Categories for Career Management There are three major categories to undertake career management. 1. Plan your exit: .One cannot manage his career unless one has a long-range objective and the first point is to think in terms of where you ultimately want to be. which people take in their career progression within the organization. The underlying assumption of career management is that. HR APPROACHES TO IMPROVING COMPETENCIES Following are the approaches.

3. Management By Objectives (MBO): . (b) Non-Financial Incentive: . v. etc.Management by Objective can simply be defined as a programme that encompasses specific goals. money plays a significant role in satisfying physiological and security/ social needs. iii. anticipatively set for an explicit time period. vi. It gives people an awareness of the rules and procedures to guide their behavior. Training: . It is used to teach the employee the most efficient and effective ways of performing their job. Appreciation of work Done Competition Knowledge of result Worker’s participation In Management: Opportunity for Growth Suggestion System Job Enrichment 2. It is application of knowledge.the following non – financial incentives could be effectively usedi. bonus. ii.Common use of money as incentive are in form of wages and salaries.Many Techniques could be very effectively used for the purpose and these are: a) The Case Study b) Role Play 28 . medical reimbursement. iv. with feed back on goal progress.Training is a process of learning a sequence of programmed behavior.(a) Financial incentives: . retirement benefits. 4. Off the job techniques: . Also used for better quality of their working. vii.

What type of information would you seek from human resource department to help you develop your own career plan if you were just starting with a large multinational corporation? 29 . frustrated.c) In-Basket Method d) Sensitivity Training (already explained in previous chapter on Training and Development) Question Answers 1. 2. they quit. “Career Development is a waste of money for a company. All is does is raise employee’s expectations and then.” Do you agree or disagree? Discuss.