Human Resources Development-

Strategies And Systems

Bhdcbdh
Presented By: Neha Kumari (Roll no. 22)
Nikhil Kr. Singh (Roll no. 59)
MBA Sem 3 (2022-2024)

Guided By: Dr. Kanu Priya

Topic Covered
1. HRM Concept
2. HRM Nature
3. Function Of HRM
4. HRM Objectives
5. HRM Process
6. HRM Issues
7. HRM Latest Trends
8. HRD Concept
9. HRD Objectives
10.HRD Process
11.HRD Issues
12. HRD Latest Trends
13. Comparison Between HRM And HRD
• Human resource management (HRM) is the practice
of recruiting, hiring, deploying and managing an
organization's employees. HRM is often referred to
simply as human resources (HR).
A company or organization's HR department is
usually responsible for creating, putting into effect
and overseeing policies governing workers and the
relationship of the organization with its employees.
The term human resources was first used in the early
1900s, and then more widely in the 1960s, to describe
the people who work for the organization, in
aggregate.
Nature of HRM
1. Pervasive Function: As HRM is present in all levels of management
in as organization.
2. People Oriented: HRM is all about people at work. It is concerned
with every employee from the top to the bottom level.
3. Action-Oriented: HRM does follow the rules and policies, but its
main focus is on action and results rather than rules.
4. Future-Oriented: HRM is future oriented approach that evaluates
the human resource requirements and ensures the availability of
required personnel in the right job at the right time.
5. Development Oriented: HRM develops full potential of employees
through reward, training , job rotation.
6. Employee Relation: HRM is also concerned with building healthy
relationship between employees at various level.
7. Interdisciplinary Function: Because many of the principle and
techniques used in management are borrowed from several
disciplines like psychology, sociology, economics and mathematics.
 Functions of HRM

1. Managerial Function- Human resource management is essential at all levels of an organisation. The top
management is responsible for forming strategies and giving directions for the successful application of such
plans. In the process, they perform the following functions:
• Planning: Firstly, the management must be aware of the vacant positions or workforce requirement of the
organisation. Then, they need to formulate the strategies for meeting the requirements.
• Organising: The manager has to establish a framework for the operative functions, bringing together the human
resources and physical resources available with the organisation.
• Directing: Once the framework is ready, the manager instructs and guides the team to work accordingly, to meet
the organisational objective.
• Controlling: The management predefines the standard for performance, and later analyses the results based on
such criteria through performance appraisal and job analysis.
2. Operative Function- The operative functions are those which are taken on the departmental level or middle level
and mainly concerned about the execution of the plans and strategies formulated at the managerial level.
• Procurement: The acquisition of human resource is the primary function of a manager. It involves the estimation
of personnel requirement, recruitment and selection of suitable candidates, placement and orientation of the
workforce in the right position.
• Development: To develop the required skills and talent within the employees, the managers have to use various
training techniques.
• Compensation: Compensation in the form of remuneration, given to employees instead of their services to the
organisation should be adequate and fair. The employees are liable to get other benefits such as a bonus or
incentives.
• Integration: Integration means making the new employees familiar with the organisation and to their task or
process. It introduces them to the organisational environment and their colleagues.
• Maintenance: The most important of all is the retention of the employees which requires providing them with
various benefits and facilities like PF, life insurance, accidental insurance, health insurance, pension, gratuity,
allowances and taking other health and safety measures.
Objectives Of HRM
• Societal Objectives - While limiting the negative effects of such requirements upon the
organisation to utilise its resources for society’s advantages in ethical ways can lead to
limitation, it is important to be socially and morally accountable for the demands and
difficulties of society.
• Functional Objectives - Organisations should meet requirements in order to keep
department contributions at a suitable level. When human resource management seems to
be either more or less competent to meet the expectations of the company, resources are
squandered.
• Organisational Objectives- Human Resource Management should be understood as a tool to
help the business achieve its main goals rather than as an end in and of itself, which is the
function of an HR manager in fostering organisational performance.
• Personal Objectives- Helping employees achieve their own objectives, at least to the extent
that doing so will improve their contribution to the company, is another role of human
resource management. Employees need to be inspired, retained and nurtured in their own
goals.
 Process Of HRM

 The following are the various HR processes:

1. Human resource planning (Recruitment, Selecting, Hiring, Training, Induction, Orientation, Evaluation, Promotion
and Layoff).
2. Employee remuneration and Benefits Administration.
3. Performance Management.
4. Employee Relations.
1. Human Resource Planning - Human Resource Planning is a systematic process of forecasting both the prospective
demand for and supply of manpower, and employment of skills with the objectives of the organizationIt includes:

 Recruitment: It aims at attracting applicants that match a certain Job criteria.

 Selection: The next level of filtration. Aims at short listing candidates who are the nearest match in terms
qualifications, expertise and potential for a certain job.
 Hiring: Deciding upon the final candidate who gets the job.
 Training and Development: Those processes that work on an employee onboard for his skills and abilities
upgradation.

2. Employee Remuneration and Benefits Administration: The process involves deciding upon salaries and wages,
Incentives, Fringe Benefits and Perquisites etc. Money is the prime motivator in any job and therefore the importance
of this process.

3. Performance Management: It is meant to help the organization train, motivate and reward workers. It is also
meant to ensure that the organizational goals are met with efficiency.

4. Employee Relations: Employee relation is a nuisance with organizations especially in industries that are hugely
competitive in nature. Employee relations include Labor Law and Relations, Working Environment, Employee heath
and safety etc.
Challenges/Issues In HRM
• Growing Employee Expectations: With the learning of new skills and better qualification, the employee’s
expectations keep on increasing, and at times it is difficult for managers to meet such high expectations.
• Growing Size of Workforce: With the growth of any organisation, the workload increases and the number of
employees also multiply. This leads to the excessive workload on the human resource manager and the HR
team.
• The emergence of New Technology: The technological advancement has though simplified the business
process but has emerged as a challenge in front of the managers to either provide training to their old staff or
seek for the new talent.
• Internal Politics: Sometimes, the human resource manager has to face situations where employees either
mislead or influence other employees to restrict them from performing their task if the problem pertains the
organisation may experience employee turnover or resignations.
• Human Psychology: HRM somehow deals with human psychology and its impact on the business which is a
complex system and unlike the problems related to other physical resources and assets, have no particular
solution.
• Changes in Law and Regulations: To safeguards the interest of employees, government bring in specific rules
and regulations which have to be followed by organisations. At times, it is difficult for the HR manager to
adhere to such laws.
• Maintenance of Human Relations: A human resource manager not only acts as a mediator between the
management and the employees but also tries to maintain a cordial relationship among the two, which
requires a lot of tactics and diplomacy.
 Latest Trends In HRM
1. Hybrid Working : Hybrid work drives business transformation, offers flexibility, and improves
collaboration. It allows member of organization to work from home or any other location.
2. Flexible Working Hours: Many companies are now offering flexible working hours, which allow employees
to choose when they want to start and end their workday .
3. Moonlighting: Moonlighting is an act of working for two jobs simultaneously to meet the increasing expenses.
For Example- A person who is a teacher of a school during the day but runs a tuition centre in evening.
4. Flat Organizational structure: Flat organizational structure is a model that allows companies to have low
levels middle management. The goal of flat organization structure is to have more open communication and
little hierarchy between executives and frontline employees .
5. Human Resource outsourcing: Human Resource Outsourcing is a practice in which an orgainzation hires a
third-party organization to handle its human resources activities and administrative tasks .
6. Employee’s Proxy: Employee proxy is a means of allowing an employee to authority to work on the behalf of
another employee in all or part of their account.
• Human resource development involves developing skills, knowledge and
competencies of people and an organisation’s people-oriented policies.
It is a process in which the employees of an organization acquire and
develop technical, managerial and behavioural knowledge.
It improves their skills, abilities and imparts the values, beliefs and
attitudes necessary to perform present and future roles by realising the
highest human potential.
HRD focuses on contributing positively to organizational, group,
individual and social goals.
 Objective of HRD
i. To prepare the employee to meet the present and changing future job requirements.
ii. To prevent employee obsolescence.
iii. To develop creative abilities and talents.
iv. To prepare employees for higher level jobs.
v. To impart new entrants with basic HRD skills and knowledge.
vi. To develop the potentialities of people for the next level job.
vii. To aid total quality management.
viii. To promote individual and collective morale, a sense of responsibility, co-
operative attitudes and good relationships.
ix. To broaden the minds of senior managers by providing them with
opportunities for an interchange of experiences within and outside.
x. To ensure smooth and efficient working of the organisation.
xi. To provide comprehensive framework for HRD.
xii. To enhance organisational capabilities.
 Process Of HRD

 Need Assessment Phase : A process by which an organization’s HRD needs are identified and
articulated. It identifies:
• An organizations’ goals and its effectiveness in reaching these goals.
• Gaps between current skills and the skills needed to perform the job successfully.
• Gaps between employees’ skills and the skills required for effective current job performance.
• The conditions under which the HRD activity will occur.
• Design Phase: The second phase of the training in the HRD process involves designing the
HRD program and intervention. In this phase the following activities are carried out:
• The objective of the program should be define.
• Develop an appropriate lesson plan for the program.
• Develop and acquire the appropriate materials for the trainers to use.
• Determine who will deliver the program.
• Select the appropriate method to conduct the program.
• Schedule the program.
 Implementation Phase: This phase is to implement effective HRD programs or interventions
after the assessment and design phase, which aims that the program must be delivered and
implemented by using the most appropriate methods.
 On-the-job Training (OJT) - This method leads employees to learn the job by actually
performing it. The types of OJT are Job Instruction Training (JIT), Job Rotation, Coaching, and
Mentoring.
 Of-the-job Training - This method involves the employee being shifted away from their place of
work to provide training. Types of Off-the-job Training are Case Study Methods, Management
Games, Distance learning, and Sponsored higher education courses.
 Apprenticeship Training – This is a combination of classroom training and OJT. It is a
structured process to enhance an employee’s skills with a set of instructions.
• Distance/Internet-Based Training – This is a prevalent type of training method that
doesn’t require the trainer or trainee to meet at one place. The practice has been done
through video-conferencing, telephonic training and over the internet.
• Simulated Training – This method involves simulator equipment where the employee
can feel the actual environment and work accordingly.
• Computer-Based Training (CBT) – This method leads to training the employee as per his
availability. CBT can also provide a progress report from time to time for better
engagement.

 Evaluation Phase: This is the final phase in the training and HRD process after which
the effectiveness of the HRD intervention is measured. This determines whether a
program is accomplishing its objectives. It identifies the strengths and weaknesses of
HRD programs and determines the cost-benefit ratio of an HRD program.
• This phase also decides who should participate in future HRD programs. This phase
identifies which participants are benefited the most or least from the program. This
also helps in gathering data to assist in marketing future programs and establishing a
database to assist management in making decisions.
 Issues In HRD
1. Changing Workforce Demographics : Around the world, demographic changes
have already had a major impact on HR departments. The labour forces have become
increasingly diverse, and this has forced organisations to make considerable changes to
the way in which they approach people management because it is very much required to
cope with the dynamics of the market.
2. Competing in Global Economy: For competing in the global economy, it will
require more than educating and training workers to meet new challenges. In addition
to retraining the workforce, successful companies will institute quality improvement
processes and introduce change efforts.
3. Meeting the Need for Lifelong Individual Learning :With the rapid changes
that all organisations are facing, it is clear that employees must continue the learning
process throughout their careers in order to meet these challenges. To make an ongoing
investment in HRD, this need for lifelong learning will require organisations.
 Latest Trends In HRD
1. Total Quality Management: TQM is a management approach that seeks to improve
quality and performance at all levels of an organisation. It focuses on quality to helps
organisations identify skill deficiencies in employees, along with necessary training education or
mentoring required to address those needs.

2. Kaizen: Kaizen is Japanese word which means continuous improvement with the involvement
of everybody in the organisation so as to generate value for customers. Kaizen practitioners view
quality as an endless journey, not a final destination. They are always experimenting, measuring,
adjusting and improving.

3. Just-in time production: Human resource focuses on hiring the required number of people
with the desired skills at a right time , who will be multitasking and productive.

4. Empowerment: Empowerment is a management strategy that aims to give employees the

tools, resources, authority and power necessary to make confident decisions in the workplace
without supervision.

5. Benchmarking: Learning from the experiences and best practices of others is essential to
survive and grow in the market dynamic environment . Benchmarking helps to establish quality
targets which lead to competitive advantage.
 Difference between HRM & HRD
 HRM
1. Human Resource Management refers to
the application of principles of
management to manage the people
working in the organisation.
2. HRM is a function of management.
3. HRM is a reactive function as it
attempts to fulfil the demands that arise.
4. HRM is a routine process and a function
of administration.
5. The basic objective of HRM is to
improve the efficiency of employees.
6. Human Resource Management is
concerned with people only.
 HRD
1. Human Resource Development means a
continuous development function that intends
to improve the performance of people working
in the organisation.
2. Conversely, HRD falls under the umbrella of
HRM.
3. While HRD is a proactive function, that meets
the changing demands of the human resource
in the organisation and anticipates it.
4. On the other hand, HRD is an ongoing
process.
5. In contrast to HRD, which aims at developing
the skill, knowledge and competency of
workers and the entire organisation.
6. Unlike Human Resource Development, that
focus on the development of the entire
organisation.