Comparison b/w HRM & HRD

Dimensions

HRM
An

HRD
An

Status Orientation Aims

independent function with independent sub-function A service & reactive Function

Seeks

integrated system consisting of interdependent sub-system A proactive function

Seeks

Incentives used
Responsibility Morale Productivity Relationship

to improve the efficiency of people & administration Salary & economic rewards
Only

to develop the total organization its culture

Focus

of HR Manager

on challenges, creativity & motivation Of all the managers

Improved

satisfaction & Morale as the cause of improved performance

Improved

performance as the cause of improved satisfaction

Case Study
Mariam has been a data processing supervisor for two years. She is in the process of selecting a candidate for a programmer trainee position she has created. Her plan is to develop the trainee into a system analyst within two years. Since this is a fast track, she needs a candidate whose aptitude and motivation is high. Fourteen candidates applied for the job in the employment section of the human resource department. Six were women, eight were men. An employment specialist screened the candidates for mariam using a carefully prepared interview format that included questions to determine job-related skills. Six candidates, three women and three men, were referred to mariam. Mariam then conducted structured, in-depth interviews and further narrowed the selection to one woman and two men. Her boss, a company vicepresident, agrees with her judgement after hearing mariams description of the candidates. However, mariams boss feels particularly unsure of the abilities of the female candidate. From the selection interview, past job experience and education, there is a no clear indication of the candidates ability to perform the job. the vice-president is insistent that Mariam should screen the candidate with a programmer aptitude test devised by a computer manufacturing firm. The test had been given four years ago and some of the most successful current analysis had scored high on it. Mariam went to the human resource department and asked them to administer the test of the questionable candidate. The human resource manager informed her that the company policy had been to do no testing of any kind during the last two years. Mariam explained that the request had come from a vice-president and asked that she be given a decision on her request by Friday.

Case Study- 2
Rane is a Branch Manager of a reputed Bank and has earned a reputation for efficient operations. Recently, a divisional manager telephones Rane that a new Branch Office was to be opened in another city. The divisional manager also informed Rane that senior management is highly pleased with the way his branch office has been functioning in the past and would like him to recommend someone from his office for promotion as Branch Manager to manage the new Branch. Rane started analysis of his subordinate staff to determine who might make a good manager. He has narrowed his choice down to two persons within his office: Ms. Anita and Mr. Malla. Both Anita and Malla are young persons in early Forties. Each has a management degree from reputed institutes. Anita usually seems more effective and tactful when dealing with customers. Both have low absenteeism record and either one would probably make a satisfactory manager for the new branch of the bank. Rane has an impression that most people prefer male supervisors and women generally are not really interested in career and as manager might develop aggressive female tendencies. As such Malla may be an effective manager in a new work place. Hence he recommended Malla for promotion as a branch manager in the banks new branch. Questions:1) If you were Rane, whom would you recommend as head of the new Branch? Give arguments in favor of your recommendation. 2) As HR Manager, how would you handle Anitas feelings of being ignored?

Human Resource Development

HRD is an organized learning experience aimed at matching the organizational need for Human Resource with the individual need for career growth and development.

HRD Model
Human Resource Development Plans
Individual Development Plans Organizational Development Plans

Knowledge, Skills & Attitude

Work Culture, Organization Change etc

Trained & Developed Employees Healthy Organizational Climate

Organizational Effectiveness

HRD in Indian Industry

Private Sectors

L&T Asian Paints Voltas etc

Public Sectors

BHEL SBI Indian Oil etc

Career Planning
Career Planning is the systematic process by which one selects career goals and path to these goals.

Career Planning and Manpower Planning

Career Planning and Succession Planning

Succession Planning
Succession Planning is the process of ensuring that qualified persons are available to assume key managerial positions whenever these fall vacant due to untimely death, premature firing, resignations and retirements.

Important Terminologies

Career Goal Career Path Career Progression Career Counseling Mentoring

Objectives of Career Planning

To attract and retain right type of persons in the organization To map out careers of employees suitable to their abilities and willingness To provide guidance and encouraging employees to fulfill their potentials To achieve higher productivity and organizational development

Process of Career Planning

Identifying individual needs and aspiration

Analyzing Career opportunities

Identifying Match and Mismatch

Formulating and Implementing strategies

Reviewing Career plans

Essentials of effective Career Planning

Top Management support Expansion Clear Goals Motivated and Hardworking Staff Proper Selection Fair Promotion Policy Internal Publicity Continuity

Career Development
Career Development is essential for implementing Career Plans.

Process of Career Development

Career Need Assessment

Career Opportunities

Need-Opportunity Alignment
Individualized Techniques Performance Appraisal MBO Career Counseling

Monitoring career Moves

Case Study- 3 Rajan has been employed for six months in the accounts section of a large textile company in Tirupur. You have been his supervisor for the past three months. Recently you have been asked by the management to find out the contributions of each employee in the accounts section and monitor carefully whether they are meeting the standard set by you. A few days back you have been completed your formal investigation and with the exception of Rajan, all seems to be meeting the targets set by you. Along with numerous errors, Rajans work is characterized by low performance-often does 20% less then other clerks in the department. As you look into Rajans performance review sheets again, you begin to wonder whether some of the remedial training is needed for people like him.

Questions
1)

As Rajans supervisor can you find out whether poor performance is due to poor training or some other cause?

2) If Rajan is inadequately trained, how would you go about introducing a remedial training programme? 3) Should you supervising him more closely? Can you do this without making it too obvious to him and coworkers? 4) Should you discuss the situation with Rajan?

Human Relations

Human Relations is an area of management practice which is concerned with the integration of people into a work situation in a way that motivates them to work productively, cooperatively and with economic, psychological and social environment.

Importance of Human Relations

Higher performance Optimum use of resources Morale justification Understanding of human factors

Approaches to Human Relations

Negative Approach Natural approach Positive approach

Components of Human Relations

Work Environment Leader

Work

Work Group

Techniques of Human Relations

Integration Employee Participation Congenial work Environment Open Communication Adaptive Leadership Resolving Conflicts Conditioning Behavior Personnel Counseling

Collective Bargaining

Collective Bargaining refers to a process by which Employers on one hand and representatives of Employees on other, attempt to arrive at agreements covering the conditions under which employees will contribute and be compensated for their services.

Types of Collective Bargaining

Distributive Bargaining Integrative Bargaining Attitudinal Bargaining Intra-organizational bargaining

Objectives of Collective Bargaining

To maintain cordial relations between Employer and the employee. To ensure the participation of trade Unions in industry. To promote Industrial democracy. To avoid the need for government intervention as collective bargaining is a Voluntary process.

Employee Empowerment

Empowerment is any process that provides greater authority through the sharing of relevant information and the provision of control over factors affecting job Performance. - John Newstrom and Keith Devis

Elements of Empowerment

Self-competence Meaningfulness Impact (Influence)

Approaches to Empowerment

Helping employees achieve Job Mastery Allowing more Control Providing successful Role Models Giving more support

Importance of Empowerment

Knowledge Workers Cut throat competition Speed and flexibility Globalization

Barriers to Empowerment

Incongruent organizational culture Love for authority Fear of retribution by superiors Fear of a retribution by subordinates Dependency of subordinates

Participative Management

Participation refers to the mental and emotional involvement of a person in a group situation which encourages him to contribute to group goals and share in the responsibility of achieving them. - Keith Device

Degrees of Participation

Communication Consultation Code-termination Self management

Objectives of Workers Participation in management

Economic Objective Social Objective Psychological objectives

Importance of Workers Participation in management

Mutual understanding Higher productivity Industrial harmony Industrial democracy Less resistance to change Creativity and innovation

Forms of Workers Participation in management

Suggestion schemes Workers committee Joint management council Worker directors Co-partnership

Business Ethics

Business Ethics

Guide for behavior

CORE VALUES Transparency Fairness Accountability Responsibility

Four corporate governance ethical values (RAFT)

1. Responsibility The board should assume responsibility for the companys assets and actions and be willing to take corrective actions to keep the company on its strategic path. 2. Accountability The board should be able to justify its decisions and actions to stakeholders affected by the company and give account to those stakeholders who require the board to do so 3. Fairness In its decisions and actions, the board should ensure that it gives fair consideration to the interests of all stakeholders of the company. 4. Transparency The board should disclose information in a manner that enables stakeholders to make a meaningful analysis of the companys actions.

Ethics of governance Five ethical duties of directors are grounded in the four corporate governance values
1. Conscience
A director should act with intellectual honesty in the best interest of the company. Conflicts of interest should be avoided. Independence of mind should prevail to ensure the best interest of the company and its stakeholders are served.

2. Care
A director should devote serious attention to the affairs of the company. All relevant information required for exercising effective control and providing innovative direction to the company need to be acquired.

3. Competence
A director should have the knowledge and skills required for governing a company effectively. This competence should be developed continuously. Willingness to be regularly reviewed for competence is a prerequisite.

4. Commitment
A director should be diligent in performing directors duties. Sufficient time should be devoted to company affairs. Effort needs to be put into ensuring company performance and conformance.

5. Courage
A director should have the courage to take the risks associated with directing a successful sustainable enterprise, but also the courage to act with integrity in all board decisions and activities.

Case Study- 4
Ramesh, AGM, Materials, is fuming and fretting. He bumped into Kailash, G.M. Materials, threw the resignation letter on his table, shouted and walked out of the room swiftly. Ramesh has reason for his sudden outburst. He has been driven to the wall. Perhaps, details of the story will tell the reasons for Rameshs is bill and why he put in his papers, barely four months after he took up his present assignment. The year was 1995 when Ramesh quite the prestigious SAIL plant at Vishakhapatnam. As a manager material, Ramesh engaged powers------- he could even place an order for materials worth Rs. 25 lakh. He needed nobodys prior approval. Ramesh joined a pulp making plant located at Harihar in Karnataka, as AGM Materials. The plant is a part of the multiproduct and multi plant conglomerate owned by a prestigious business house in India. Obviously, perks, designation and reputation of the conglomerate hired Ramesh away from the public sector steel monolith.

When he joined the eucalyptus pulp making company, little did Ramesh realize that he needed prior approval to place an order for materials worth Rs.12 lakh. He had presumed that he had the authority to place an order by himself worth half the amount of what he used to do at the mega steel maker. He placed the order; materials arrived, were received, accepted and used up in the plant. Trouble started when the bill for Rs. 12 lakh came from the vendor. The accounts department withheld payment for the reason that the bill was not endorsed by Kailash. Kailash refused to sign of the bill as his approval was not taken by Ramesh before placing the order. Remesh felt fumigated and cheated. A brief encounter with Kailash only aggravated the problem. Ramesh was curtly told that he should have known company rules before venturing. Remesh decided to quit.

Questions:1.
2.

3.

4.

Where have the system gone wrong? Was it really Rameshs mistake? It so was there any solution? Does the company have an orientation programme? If yes, how effective is it? If you were Remesh what would have you done?

Absenteeism

Absenteeism
Absenteeism means the failure of a worker to report for work when he is scheduled to work.
Number of mandays lost due to absence

Absenteeism =
Number of mandays scheduled to work

X 100

Absenteeism in India

Causes of Absenteeism

Nature of work Poor working conditions Sickness Accidents Lack of interest Absence of housing and transport facility Poor management system Lack of regular leave arrangement Rural ties Alcoholism and gambling Other causes

Control over Absenteeism

Proper hiring Good working conditions Housing and transport facility Safety programmes Incentives Effective supervision Disciplinary actions Regular leave provisions Employee counseling Proper records

MORALE

Morale

A mental condition or attitudes of individuals and groups which determines their willingness to cooperate.

Importance of Morale

Factors influencing Morale

Nature of work Working Conditions Supervision Interpersonal relations Management policies Personal factors

Measurement of Morale

Observation Attitude or Morale surveys

Interview Method Questionnaire Method

Company Records and Reports

Measures for Building high Morale

Proper work environment Job security Sound compensation system Sound promotion Policy Creation of whole jobs Job enrichment Grievance procedure Suggestion schemes Employee counseling Workers participation in management

Impact of Morale on Productivity

High Productivity

High Morale High productivity High Morale High morale Low Productivity

Low Morale High Productivity Low Morale Low Morale Low Productivity

Low Productivity

Job Satisfaction

Job Satisfaction
Job Satisfaction is the end feeling of a person after performing a task.

Determinants of job Satisfaction

Environmental Factors

Job content Occupational level Pay and promotion Work group Supervision Age Gender Education level Marital Status Experience

Personal factors

Theories of Job satisfaction

Need fulfillment theory Equity theory Two factor theory Discrepancy theory Equity-discrepancy theory Social reference group theory

Measurement of job satisfaction

Job Satisfaction Index (Hoppock) S-D (Satisfaction - Dissatisfaction) by Pestonjee

Job Management Social Relations Personal Adjustment

Counseling

Counseling

Counseling is the mean by which one person helps another through purposeful conversation. Counseling is a method of identifying practical solutions to life or work related problem.

Essential Elements

An empathic relationship The counselor and client relate well The counselor sticks closely to the clients problem The client feels free to say what they like An atmosphere of mutual trust and confidence exist

Types of Counseling

Directive Non-directive Co-operative

Employee Health

Working conditions affecting health

Cleanliness Lighting Temperature and ventilation Freedom from noise Dust control Working space and seating arrangement

Occupational hazards

Chemical substance Biological hazards Environmental hazards Atmospheric conditions

Protection against health hazards

Preventive measures Curative measures

Statutory provisions concerning Health

Cleanliness Disposal of waste Ventilation and temperature Dust and fumes Artificial humidification Overcrowding(14.2 cubic meters) Lighting Drinking water

Employee Safety

Employee Safety
An Industrial Accident is an occurrence in an industrial establishment causing bodily injury to a person which makes him unfit to resume his duties in the next 48 hours. - the factories act 1948

Records and measurement of accidents

No of injuries x 10,00,000

Accidents frequency rate =

Total no of men hours worked

No of men day lost x 10,00,000

Accidents Severity rate =

Total no of men hours worked

Causes of industrial accidents

Unsafe Conditions

The job itself Work schedules Psychological conditions Machinery and equipments

Unsafe acts Miscellaneous causes

Measures to ensure Industrial safety

Safety policy Safety committee Safety engineering

Guarding of machines Material handling equipment Safety devices Plan maintenance

Safety education and training Role of government (Safety and Health Accidents reduction Plans)

Safety provisions under the Factories Act

Fencing of machinery Work on or near machinery in motion Employment of young persons on dangerous Machines Striking gears and devices for cutting off power Self-acting machines Casing of new machinery Prohibition of employment of women and children near cotton openers Hoists and lifts Lifting machines, chains, ropes and lifting Tackles Revolving machinery

Pressure plant Floors, Stairs and means of access Excessive weights Protection of eyes Precautions against dangerous fumes Precautions regarding the use of portable electric lights Precautions against explosive or inflammable dust, gas etc Precautions in case of fire Safety officers

Employee welfare

The efforts to make life worth living for workmen. - Oxford Dictionary Labor welfare means anything done for the comfort and improvement, intellectual or social, of the employees over and above the wages paid which is not a necessity of the industry. - Arthur James Todd

Importance of Employee Welfare

Agencies of Employee Welfare

Central Government (Acts like Factories Act, Mines Act etc) State Government Employers (Like TISCO, SAHARA etc) Trade Unions (Ahmedabad Textile Labor Association, Mazdoor Sabha etc) Other agencies (Social Service League, Seva sadan Society, the Depressed classes Mission Society)

Types of Welfare Services

Intramural Extra-mural

Hosing Education Transportation Recreation Consumer cooperative stores

Statutory provisions concerning employee welfare

The Factories Act,1948 (First Aid Box, rest room, Lunch room on 150 workers,
Ambulance & Welfare Officer on 500 workers, canteen on 250 workers, Crche on 30 women workers)

The Plantation Labor Act,1951 (canteen for 150 workers, Crche for
50 women workers, educational Facilities for 25 children between 6 to 12, Housing Facilities, sickness allowances, Welfare Officers for 300 workers

The Mines Act,1952 ( crche for 50 workers, rest room, Lunch room on 150 workers, canteen on 250 workers) The Contract Labor (Regulation and Abolition) Act,1970