Course MBA

Subject: Manpower planning & HRD

Unit: 2: Semester IV

Doranda College Ranchi

Human Resource Development

Human Resource Development is the part of human resource management that specifically deals with training and
development of the employees in the organization.
Human resource development includes training a person after he or she is first hired, providing opportunities to learn new skills,
distributing resources that are beneficial for the employee's tasks, and any other developmental activities.

INTRODUCTION

Development of human resources is essential for any organisation that would like to be dynamic and growth-oriented. Unlike
other resources, human resources have rather unlimited potential capabilities. The potential can be used only by creating a
climate that can continuously identify, bring to surface, nurture and use the capabilities of people. Human Resrouce Development
(HRD) system aims at creating such a climate. A number of HRD techniques have been developed in recent years to perform the
above task based on certain principles. This unit provides an understanding of the concept of HRD system, related mechanisms
and the changing boundaries of HRD.

Human Resource Development (HRD) is the framework for helping employees develops their personal and organizational skills,
knowledge, and abilities. Human Resource Development includes such opportunities as employee training, employee career
development, performance management and development, coaching, mentoring, succession planning, key employee
identification, tuition assistance, and organization development.

Definitions of HRD

• According to Leonard Nadler, "Human resource development is a series of organised activities, conducted within a
specialised time and designed to produce behavioural changes."

• In the words of Prof. T.V. Rao, "HRD is a process by which the employees of an organisation are helped in a
continuous and planned way to (i) acquire or sharpen capabilities required to perform various functions associated with
their present or expected future roles; (ii) develop their journal capabilities as individual and discover and exploit their
own inner potential for their own and /or organisational development purposes; (iii) develop an organisational culture
in which superior-subordinate relationship, team work and collaboration among sub-units are strong and contribute to
the professional well being, motivation and pride of employees." .

• According to M.M. Khan, "Human resource development is the across of increasing knowledge, capabilities and
positive work attitudes of all people working at all levels in a business undertaking."

THE CONCEPT OF HUMAN RESOURCE DEVELOPMENT

Human resource development in the organisation context is a process by which the employees of an organisation are helped, in a
continuous and planned way to:

1. Acquire or sharpen capabilities required to perform various functions associated with their present or expected future
roles;
2. Develop their general capabilities as individuals and discover and exploit their own inner potentials for their own
and/or organisational development purposes; and
3. Develop an organisational culture in which supervisor-subordinate relationships, teamwork and collaboration among
sub-units are strong and contribute to the professional well being, motivation and pride of employees.

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This definition of HRD is limited to the organisational context. In the context of a state or nation it would differ.HRD is a
process, not merely a set of mechanisms and techniques. The mechanisms and techniques such as performance appraisal,
counselling, training, and organization development interventions are used to initiate, facilitate, and promote this process in a
continuous way. Because the process has no limit, the mechanisms may need to be examined periodically to see whether they are
promoting or hindering the process. Organisations can facilitate this process of development by planning for it, by allocating
organisational resources for the purpose, and by exemplifying an HRD philosophy that values human beings and promotes their
development.

HRD As a Management Philosophy

The HRD Management Philosophy is not mainly about Human Resources Function. It is more about the leadership style of the
top management, the current corporate culture and values. It is about the vision of the leader of the organization. The modern
leader usually requires a modern HRD Management approach and builds the environment suitable for the evolution of the
modern HRD Management. This is the HRD Management Philosophy behind the scene.

The development of the HRD Management Philosophy is a long term process. The philosophy is usually informal and respects
values and opinions of the main stakeholders. The leader of the organization has a significant influence on the HRD Philosophy.
The HRD Leader is the next one influencing the philosophy significantly.

The informality of the HRD Management Philosophy is important. It differentiates it from the HRD Strategy. The philosophy is
the set of values, behavior and practices. The practices are extremely crucial for the leader. The leader is not interested in written
formal HRD policies. The leader is interested in the real decision processes in the organization. They can be really different from
the written rules (as people do not follow them, they follow the philosophy).

The main factors influencing the HRD philosophy in the organization are:

❖ Leadership style
❖ Corporate culture
❖ Corporate values
❖ Market competition

The leadership style is extremely important. The leaders of the organization are the role models for managers and employees. The
manager always try to act as the leader does. The behavior is observed and spread across the entire organization. The leader sets
the basic expectations from all employees and managers. They adjust their behavior to be fully compliant with the leader’s
expectations. The HR Management Philosophy is the same story.

The leader is usually the person, who starts the change or the re-design of the HRD Management Philosophy. The leader observes
the behavior in the organization and requests several changes. The leader usually calls a new HRD leader, who is responsible for
the leadership in the change management. The biggest task is to change the behavior of the leader.

The corporate culture and the corporate values define boundaries for the HRD Management philosophy. The HRD Management
cannot be in the conflict with the corporate culture. It has to be a natural part of the culture. In case of the changes in the HRD
Philosophy, the HRD team has to start influencing the corporate culture. It has to be adjusted as well. The change of the corporate
culture is the joint effort of the leadership management and Human Resources. It has to be changes by changes of the living
examples. The employees will follow the changes naturally.

The external market and the direct and indirect competitors have the influence on the HRD Management Philosophy. The
competitors define the industry standard. The completely different approach usually builds the organizational weakness. The
HRD Philosophy has to be better, it cannot be completely different.

The leader usually compares the performance of the organization with the direct competitors on the market. The leader identifies
weaknesses and advantages. In case of the need, the leader provokes the change of the corporate culture and the HRD
philosophy.

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Difference between HRD and HRM

Both are very important concepts of management specifically related with human resources of organisation. Human resource
management and human resource development can be differentiated on the following grounds:

• The human resource management is mainly maintenance oriented whereas human resource development is
development oriented.

• organisation structure in case of human resources management is independent whereas human resource development
creates a structure, which is inter-dependent and inter-related.

• Human resource management mainly aims to improve the efficiency of the employees whereas aims at the
development of the employees as well as organisation as a whole.

• Responsibility of human resource development is given to the personnel/human resource management department and
specifically to personnel manager whereas responsibility of HRD is given to all managers at various levels of the
organisation.

• HRM motivates the employees by giving them monetary incentives or rewards whereas human resource development
stresses on motivating people by satisfying higher-order needs.

THE NEED FOR HRD

HRD is needed by any organisation that wants to be dynamic and growth-oriented or to succeed in a fast-changing environment.
Organisations can become dynamic and grow only through the efforts and competencies of their human resources. Personnel
policies can keep the morale and motivation of employees high, but these efforts are not enough to make the organisation
dynamic and take it in new directions. Employee capabilities must continuously be acquired, sharpened, and used. For this
purpose, an “enabling” organisational culture is essential. When employees use their initiative, take risks, experiment, innovate,
and make things happen, the organisation may be said to have an “enabling” culture.

Even an organisation that has reached its limit of growth, needs to adapt to the changing environment. No organisation is immune
to the need for processes that help to acquire and increase its capabilities for stability and renewal.

HRD FUNCTIONS

Hence, the goals of the HRD systems are to develop:

1. The capabilities of each employee as an individual.

2. The capabilities of each individual in relation to his or her present role.
3. The capabilities of each employee in relation to his or her expected future role(s).
4. The dyadic relationship between each employee and his or her supervisor.
5. The team spirit and functioning in every organisational unit (department, group, etc.).
6. Collaboration among different units of the organisation.
7. The organisation’s overall health and self-renewing capabilities which, in turn, increase the enabling capabilities of
individuals, dyads, teams, and the entire organisation.

Features of Human Resource development

The essential features of human resource development can be listed as follows:

• Human resource development is a process in which employees of the organisations are recognized as its human
resource. It believes that human resource is most valuable asset of the organisation.

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 • It stresses on development of human resources of the organisation. It helps the employees of the organisation to
develop their general capabilities in relation to their present jobs and expected future role.

• It emphasise on the development and best utilization of the capabilities of individuals in the interest of the employees
and organisation.

• It helps is establishing/developing better inter-personal relations. It stresses on developing relationship based on help,
trust and confidence.

• It promotes team spirit among employees.

• It tries to develop competencies at the organisation level. It stresses on providing healthy climate for development in
the organisation.

• HRD is a system. It has several sub-systems. All these sub-systems are inter-related and interwoven. It stresses on
collaboration among all the sub-systems.

• It aims to develop an organisational culture in which there is good senior-subordinate relations, motivation, quality and
sense of belonging.

• It tries to develop competence at individual, inter-personal, group and organisational level to meet organisational goal.

• It is an inter-disciplinary concept. It is based on the concepts, ideas and principles of sociology, psychology, economics
etc.

• It form on employee welfare and quality of work life. It tries to examine/identify employee needs and meeting them to
the best possible extent.

• It is a continuous and systematic learning process. Development is a life long process, which never ends.

Benefits of Human Resource Development

Human resource development now a days is considered as the key to higher productivity, better relations and greater profitability
for any organisation. Appropriate HRD provides unlimited benefits to the concerned organisation. Some of the important benefits
are being given here:

• HRD (Human Resource Development) makes people more competent. HRD develops new skill, knowledge and
attitude of the people in the concern organisations.

• With appropriate HRD programme, people become more committed to their jobs. People are assessed on the basis of
their performance by having a acceptable performance appraisal system.

• An environment of trust and respect can be created with the help of human resource development.

• Acceptability toward change can be created with the help of HRD. Employees found themselves better equipped with
problem-solving capabilities.

• It improves the all round growth of the employees. HRD also improves team spirit in the organisation. They become
more open in their behaviour. Thus, new values can be generated.

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 • It also helps to create the efficiency culture In the organisation. It leads to greater organisational effectiveness.
Resources are properly utilised and goals are achieved in a better way.

• It improves the participation of worker in the organisation. This improve the role of worker and workers feel a sense of
pride and achievement while performing their jobs.

• It also helps to collect useful and objective data on employees programmes and policies which further facilitate better
human resource planning.

• Hence, it can be concluded that HRD provides a lot of benefits in every organisation. So, the importance of concept of
HRD should be recognised and given a place of eminence, to face the present and future challenges in the organisation.

Human Resource Development & Personnel Management

Personnel Management - Personnel Management is thus basically an administrative record-keeping function, at the operational
level. Personnel Management attempts to maintain fair terms and conditions of employment, while at the same time, efficiently
managing personnel activities for individual departments etc. It is assumed that the outcomes from providing justice and
achieving efficiency in the management of personnel activities will result ultimately in achieving organizational success.

Human Resource Development - Human resource management is concerned with the development and implementation of
people strategies, which are integrated with corporate strategies, and ensures that the culture, values and structure of the
organization, and the quality, motivation and commitment of its members contribute fully to the achievement of its goals.

HRM is concerned with carrying out the SAME functional activities traditionally performed by the personnel function, such as
HR planning, job analysis, recruitment and selection, employee relations, performance management, employee appraisals,
compensation management, training and development etc. But, the HRM approach performs these functions in a qualitatively
DISTICNT way, when compared with Personnel Management.

Main Differences between Personnel Management and HRM

Personnel management is workforce centered, directed mainly at the organization’s employees; such as finding and training
them, arranging for them to be paid, explaining management’s expectations, justifying management’s actions etc. While on the
other hand, HRM is resource –centered, directed mainly at management, in terms of devolving the responsibility of HRM to line
management, management development etc. Although indisputably a management function, personnel management has never
totally identified with management interests, as it becomes ineffective when not able to understand and articulate the aspirations
and views of the workforce, just as sales representatives have to understand and articulate the aspirations of the
customers. Personnel Management is basically an operational function, concerned primarily with carrying out the day-to day
people management activities. While on the other hand, HRM is strategic in nature, that is, being concerned with directly
assisting an organization to gain sustained competitive advantage. HRM is more proactive than Personnel Management.
Whereas personnel management is about the maintenance of personnel and administrative systems, HRM is about
the forecasting of organizational needs, the continual monitoring and adjustment of personnel systems to meet current and future
requirements, and the management of change.

Difference between Personnel Management & HRD

Comparison Chart

BASIS FOR
PERSONNEL MANAGEMENT HUMAN RESOURCE MANAGEMENT
COMPARISON
The aspect of management that is concerned with The branch of management that focuses on the most
Meaning the work force and their relationship with the effective use of the manpower of an entity, to
entity is known as Personnel Management. achieve the organizational goals is known as Human

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 Resource Management.
Approach Traditional Modern
Treatment of manpower Machines or Tools Asset
Type of function Routine function Strategic function
Basis of Pay Job Evaluation Performance Evaluation
Management Role Transactional Transformational
Communication Indirect Direct
Labor Management Collective Bargaining Contracts Individual Contracts
Initiatives Piecemeal Integrated
Management Actions Procedure Business needs
Decision Making Slow Fast
Job Design Division of Labor Groups/Teams
Primarily on mundane activities like employee Treat manpower of the organization as valued
Focus
hiring, remunerating, training, and harmony. assets, to be valued, used and preserved.

Designing Human Resource Management Systems:

It provides a framework for designing and implementing Human Resource Management systems in various kinds of
organizations, even those with limited resources. It is intended for leaders, decision makers, senior managers, HR practitioners,
and consultants wishing to innovate, structure, and implement HRM systems in organizations—irrespective of their class, nature,
category, or size.

The coverage of concepts and relevant theories pertaining to each system and sub-system—job analysis, human resource
planning, recruitment and selection, performance management, training and development, 360-degree feedback, mentoring and
executive coaching, and reward management— is comprehensive, but presented in brief. The guidelines present a logical, simple,
and easy-to-adopt approach. The practical guidelines also have examples related to what can possibly go wrong and therefore
what to guard against. The book has relevant tools, questionnaires, forms, policies, and other aspects of utility for designing each
HRM sub-system.

Designing of HR System

Step 1
List the various human resources needs you have. Include recruiting, hiring, training, managing and terminating employees.
Add payroll, compensation and benefits, workplace safety, company policies and procedures, and legal compliance. Consider
optional functions such as wellness and morale building.

Step 2
Decide on the organizational structure you will use. Create a flat structure if you are a small company with few employees
who will share most of the work. Create a hierarchical structure if you have enough employees to create departments and have
a totem pole. Develop an organizational chart that projects your staffing needs two years out, if you know your growth plans.
Write job descriptions to ensure your organization chart assigns all duties you will need to perform to run your business.

Step 3
Create a system for recruiting, training, managing and terminating employees. Write a procedure for placing ads, evaluating
applications, interviewing candidates, setting compensation levels and making offers. Set procedures for orien ting and
training new employees. Create a company policy manual with your policies and procedures for attendance, requesting
personal time off, submitting expenses, dress code, safety procedures, handling grievances and office behavior. Create

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 employee and supervisor review processes, including annual reviews based on written job description performance. Create a
procedure for terminating employees legally.

Step 4
Develop a compensation program that includes levels for hourly wages and salaried positions. M eet with your insurance
provider or a benefit provider to determine what benefits you can offer within your budget. Review voluntary benefits that le t
you offer employees attractive insurance and retirement program options at little or no cost to you as pa rt of a strategy to
increase your ability to recruit and retain employees.

Step 5
Meet with your accountant to determine if you will handle payroll in-house or outsource it. Create your payroll system,
including gathering information from new employees to add them to your system, managing deductions and paying
employees, or interview payroll vendors to hire one to handle your payroll.

Step 6
Review the costs and benefits of adding wellness programs, such as an employee fitness center, seminars delivered by health
experts, a wellness newsletter or paying for smoking-cessation programs. Look at adding employee awards, contests or
monthly birthday parties to develop camaraderie and employee loyalty.

Step 7
Meet with an employment attorney to review your HR system and its components to ensure you meet your legal obligations
as they relate to employees. Choose an expert who is familiar with your state’s regulations and federal laws.

Step 8
Create a budget for your HR system based on your wish list. Review the parts of your system you can start immediately, those
you will add as your profits increase or you add new employees, and the tasks you will outsource at first and eventually brin g
in house.

PRINCIPLES IN DESIGNING HRD SYSTEM

The following principles related to focus, structure, and functioning should be considered when designing integrated HRD
systems.

• Focus on enabling capabilities: The primary purpose of HRD is to help the organisation to increase its “enabling” capabilities.
These include development of human resources, development of organisational health, improvement of problem solving
capabilities, development of diagnostic ability (so that problems can be located quickly and effectively), and increased employee
productivity and commitment.

• Balancing adaptation and change in the organisational culture: Although HRD systems are designed to suit the
organisational culture, the role of HRD may be to modify that culture to increase the effectiveness of the organisation. There
always has been a controversy between those who believe that HRD should be designed to suit the culture and those who believe
that HRD should be able to change the culture. Both positions seem to be extreme. HRD should take the organisation forward,
and this can be done only if its design anticipates change and evolution in the future.

• Attention to contextual factors: What is to be included in the HRD systems, how is it to be sub-divided, what designations and
titles will be used, and similar issues should be settled after consideration of the various contextual factors of the organisation—
its culture and tradition, size, technology, levels of existing skills, available support for the function, availability of outside help
and so on.

• Building linkages with other functions: Human resource development systems should be designed to strengthen other functions
in the company such as long-range corporate planning, budgeting and finance, marketing, production, and other similar functions.
These linkages are extremely important.

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• Balancing specialisation and diffusion of the function: Although HRD involves specialised functions, line people should be
involved in various aspects of HRD.Action is the sole responsibility of the line people, and HRD should strengthen their roles.

• Ensuring respectability for the function: In many companies, the personnel function does not have much credibility because it
is not perceived as a major function within the organisation. It is necessary that HRD be instituted at a very high level in the
organisation and that the head of the HRD department is classified as a senior manager. Both the credibility and usefulness of
HRD depend on this.

• Balancing differentiation and integration: The human resource development function often includes personnel administration,
human resource development and training, and industrial relations. These three functions have distinct identities and
requirements and should be differentiated within the HRD department. One person may be responsible for OD, another for
training, another for potential appraisal and assessment, etc. At the same time, these roles should be integrated through a variety
of mechanisms. For example, inputs from manpower planning should be available to line managers for career planning and HRD
units for potential appraisal and development. Data from recruitment should be fed into the human resources information system.
If salary administration and placement are handled separately, they should be linked to performance appraisals. Differentiation as
well as integration mechanisms are essential if the HRD system is to function well.

• Establishing linkage mechanisms: HRD has linkages with outside systems as well as with internal sub-systems. It is wise to
establish specific linkages to be used to manage the system. Standing committees for various purposes (with membership from
various parts and levels of the organisation), task groups, and ad hoc committees’ for specific tasks are useful mechanisms.

• Developing monitoring mechanisms: The HRD function is always evolving.It therefore requires systematic monitoring to
review the progress and level of effectiveness of the system and to plan for its next step. A thorough annual review reappraisal
every three years will be invaluable in reviewing and planning the system. It may be helpful to include persons from other
functions in the organisation in the HRD assessment effort.

Areas to keep under observation while designing HR system:

Structure
Before you can begin the process of creating specific jobs you must first determine the organizational structure of your business.
You can set up your firm with a centralized structure in which you make major decisions and all employees directly report to you
or to supervisors who form the central chain of command. Alternatively, you can split your company up into several autonomous
units, in which case you must decide which functions employees of each unit must perform. If you operate a large business you
may even have to have some overlap between departments, in which case some employees may have to report to more than one
supervisor. You can work on designing your HR plan when you have decided upon the structure.

Jobs

Job design involves assigning specific responsibilities to each job that you create. You can design specialized jobs and reserve
these for employees who have certain types of academic or professional credentials. You can also create less specialized jobs and
assign duties to these roles that other employees can easily perform during a staff shortage. You also have to decide how many
layers of management you need. When you design your HR plan you must ensure that all of the different units and job functions
somehow interconnect. You cannot expect your firm to function efficiently if you do not design a cohesive HR plan.

Development

Your employees are a vital part of your business and you must design a recruitment and development plan so that you can ensure
your firm remains adequately staffed. You must decide how you plan to recruit workers and how you can coach and develop
existing workers so that you can promote from within. You also have to decide how to compensate your employees. Typically,
you pay supervisors more than their direct supervisees, but you have to decide how much to vary pay levels between different job
tiers.

Evolution

You should constantly review your HR design and look for ways to improve efficiency. Over time you can use a process called
standardization to modify job functions so that you achieve the highest possible level of efficiency. You can conduct studies to

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find ways to speed up the production process by finding a way for employees in one area of the firm to smoothly pass on tasks to
employees in other departments. You must also take advantage of new technologies to improve all aspects of the HR design and
development process, including the hiring and training of employees. Throughout the life of your firm your HR design must
continue to evolve so that your firm can remain competitive.

Current status and failure direction:

The future is now: The changing role of HR

the function within an organisation that is focussed towards recruitment, management, and offering direction to the people of the
organisation is termed as Human Resource Management (HRM). In other words, all the processes and programs that are centred
in and around people are part of the HR umbrella. The members of the HRM department are responsible for providing the
necessary tools, knowledge, administrative services, coaching and training, talent management, legal and management advice for
the rest of the organisation in order to successfully operate.A lot of HR departments are responsible for the overall development
of the organisation by generating a culture which is conducive for today’s corporate environment. The HR department needs to
perform additional responsibilities which ensure that their organisation is contributing towards the development of competent
teams and is inspiring the empowerment of employees.Additional activities which are sponsored by the HR management includes
community and employee outreach. They act as constant mentors and members of the team of employees that address employee
engagement activities, events involving the families of employees, and philanthropic giving.

Human Resource Management And Line Managers

The various functions of Human Resource Management are performed by line managers who are directly responsible for the
contribution, engagement, and productivity of the staff members who report to them. In a well integrated talent
management system of an organisation, the line managers perform a crucial role wherein they take the ownership for the entire
process of recruitment. They are also responsible for the continuous development and the retention of employees of superior
quality.Organisations also perform various HRM tasks and functions by outsourcing different components of these functions to
external vendors and suppliers. The frequently outsourced tasks include those tasks that take up a lot of time and energy from the
day to day HR activities which provide the most strategic value to the organization. Outsourcing very often includes mostly
payroll functions. Apart from this, vendors and external consultants can help HRM in a lot of other activities such as background
checking, sexual harassment training, benefits administrations, and production of employee handbooks, policy manuals,
temporary staffing, and affirmative action plans.
The Changing Focus Of HRM

Traditionally the Human Resource Management function dealt with or provided leadership and advice to deal with all
employee centric issues in an organisation. It dealt with employee onboarding, recruitment, remuneration, organisational
development, performance management, safety, succession planning, and wellness of employees, communication, administration,
training, and maintaining the motivational level of employees. It also strategically managed people and the workplace
environment and culture. HRM enabled the employees to effectively and productively contribute towards the overall direction of
the company and the accomplishment of the goals and objectives of the organisation. With the changing times, the focus of HRM
is also changing. HRM is slowly moving away from the traditional administration, personnel, and transactional roles as these are
either outsourced or fully automated with exception based business rules. The function is now expected to perform value added
tasks by strategically utilising employees and ensuring that the various employee programs are recommended and implemented in
a positive manner which impacts the business in measurable ways.
The New Expectations Of HRM

Unlike previously, the HR staff nowadays decides their own priorities and needs and do not receive them as directives from the
executive teams. In today’s changing scenario the HR sits at the executive table and makes recommendations towards processes,
business solutions, and approaches that are likely to improve the ability of the employees to perform better and contribute
effectively.This new paradigm shift in the role of Human Resource Management involves HRM metrics, strategic direction, and
measurements to demonstrate their worth. HRM employees are expected to demonstrate their worth by keeping the company and
their employer safe from any possible lawsuits which may result in workplace chaos. They need to do a balancing act by catering
to the organisation’s customers, owners, executives, employees, managers, and stockholders. The importance of an effective and
modern HRM function cannot be underestimated within an organization. An employee who may have retired from the HRM
service around 20 years ago would not be able to imagine the change in the competence and capability of HRM organisations

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today. Organizations which have chosen to move their Human Resource Management function out of the dark and dingy days
into the changed scenario will be certainly making their mark in the industry.

HRD practices and experiences in india

Human resource development is a newly emerging field of study. Although development of human beings has been in existence
in some form or the other since the beginning of civilization, a planned and systemic approach to HRD in the corporate sector
emerged in the later half of the 20th century. In the past, training was the only planned way of developing human resources. But
now HRD has emerged as an interdisciplinary and integrated approach to the development of human resources.

With the arrival of the Thatcherite era came an era where void in personnel function has to be filled.

Hence, Human Resource Management (HRM) and HRD, invaded as an exercised personnel function, promising flexibility,
responsiveness and a marked increase (Mankidy, (1995)) in the value of the employee. The traditional way of gaining
competitive advantage have to be supplemented with organizational capability

AIMS

The aims of this topic is to see what are the HRD practices followed by the Indian organizations and also to identify the
methodology used by the Indian market.The main objective of the study was to assess the human resource management practices
being implemented in companies operating in India. To achieve the main objective, the following sub-objectives were set:

1. To assess practices regarding human resource planning and recruitment.

2. To identify selection and socialization practices.

3. To assess the practices regarding training.

4. To assess practices of performance appraisal.

5. To assess the compensation and benefits related practices.

6. To identify the workforce diversity and contemporary HR practices being implemented.

PROBLEM FORMULATION

People are the greatest asset of any company, but it is recently that it has been actually realized, and Human resource
Management departments have been setup. There are number of reasons in the Indian companies which require HR manager’s
attention. There are number of challenges like ‘finding the right candidate’ and ‘how to conduct the working environment’, these
both are really important as to benefit the organization. Apart from these there are also some other problems faced by the
companies are managing people, motivating employees to adopt new technologies, training, recruitment etc.

Bearing these challenges in mind, it is high time for the companies to start finding solutions. In a knowledge based industry
handling the HR managers is a great challenge, because that would take-in multi-tasking responsibility. In the present era HR
manger perform various responsibilities. Earlier it was only maintaining rolls and managing manpower, but now it has become
more strategic due to the increasing demand of the industry. In this paper certain issues with the HRM practices in India will be
discussed. They have been named below, as followed:

1. Motivating the workforce

Due to the growth of the global market, a technological edge supported by a talent pool has become a vital factor for survival in
the market. Due to the reason organization gives main priority to technology advancement programs. HR managers are now
performing the role of motivators for their knowledge workers to adopt new changes .

2. Managing people

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Due to the increasing competition there is a need in the organization for knowledge workers, hence the companies always look
for individual who can make a difference. Due to the reason gaining the right knowledgeable person had become a costly deal for
the organizations but the attitude is different for those who are taking up responsibilities at a lesser age and experience. These
factors have resulted in the clear shift in approach to individualized career management from organization career commitment .

3. Competency Development

Human capital is the real asset for any organization, and this makes the HR role important in recruiting, managing, and retaining
the best. The HR department has a clear role in this process and determines the success tempo of any organization. An urgent
priority for most of the organizations is to have an innovative and competent HR pool; sound in HR management practices with
strong business knowledge.

4. Recruitment and training

Recruitment has become a major function from an imperative sub system in HR. HR managers play a vital role in creating assets
for the organization in the form of quality manpower. Another challenge for HR managers is to put systems in place to make the
people a perfect fit for the job. Talent redundancy has also become major issue due to which HR departments provide related
training programs. These trainings are quite useful also in terms of providing security to the employees..

5. Trust factor

Low levels of trust inhibit tacit knowledge sharing in the knowledge based industry. It is essential that companies takes more
initiatives to improve the security levels of the employees .

6. Work life Balance Factor

This aspect creates with it the challenge of a smoother assimilation and the cultural binding of the new comers into the
organization fold. The pressure of delivering the best of quality services in a reduced time frame calls for ensuring that
employees maintain a work life balance .

7. Attrition/Retention of the Talent Pool

One of the toughest challenges for the HR managers in any industry is to deal with the prevalent high attrition levels. Though
there is an adequate supply of qualified staff at entry level, there are huge gaps in the middle and senior level management in the
industry. Further, the salary growth plan for each employee is not well defined. This situation has resulted in increased levels of
poaching and attrition between organizations. The industry average attrition rate is 30-35 per cent and could range up to 60 per
cent .

8. Bridging the Demand Supply Gap

HR managers have to bridge the gap between the demand and supply of professionals. They have to maintain consistency in
performance and have to keep the motivation levels of employees high, despite the monotonous nature of work. The same also
leads to recurring training costs. Inconsistent performance directly affects revenues. Dwindling motivation levels lead to a loss of
interest in the job and a higher number of errors.

Questions:

Short answers questions:

1. Define HRD?
2. What are the basic HRD functions?
3. Why designing of HRM system is important?
4. Basic aim to practice HRD in India.
5. Which areas should be kept in mind while designing HR system?

Long answer questions:

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1. Define HRD and its concept. Discuss the factors why its termed as management philosophy.
2. Write difference between HRD and HRM.
3. Mention need, function and feature of HRD.
4. Bring out differences between personnel management and HRD.
5. What are basic steps involved in Designing of HR system.
6. Narrate the expectation and need of HRD experiences in India .

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