SHRM Unit - 1

BA 7036 STRATEGIC HUMAN RESOURCE MANAGEMENT
UNIT I HUMAN RESOURCE DEVELOPMENT

Meaning- Strategic framework for HRM and HRD Vision, Mission and Value-Importance Challenges to
organizations HRD functions Roles of HRD professionals HRD needs assessment HRD practices
Measures of HRD performance Links to HR, Strategy and business goals HRD program implementation
and evaluation Recent trends strategic capability, bench marking and HRD audit.
CONTENTS
1. 1 INTRODUCTION ................................................................................................................ 3
1.1. 1 STRATEGIC HUMAN RESOURCE MANAGEMENT.................................................. 3
1.1.2 STRATEGIC HR VS TRADITIONAL HR ....................................................................... 5
1.1.3ARRIERS TO STRATEGIC HRM ..................................................................................... 6
1.1.4 BENEFITS OF SHRM ....................................................................................................... 6
1.2 HUMAN RESOURCE DEVELOPMENT (HRD)................................................................. 7
1.2.1 MEANING OF HRD .......................................................................................................... 7
1.2.2 DEFINITION OF HRD ...................................................................................................... 7
1.2.3 FEATURES OF HRD......................................................................................................... 8
1.2.4 STRATEGIC FRAMEWORK FOR HRD ....................................................................... 10
NEEDS ASSESSMENT PHASE .............................................................................................. 10
DESIGN PHASE ....................................................................................................................... 10
IMPLEMENTATION PHASE .................................................................................................. 11
EVALUATION PHASE............................................................................................................ 11
1.2.5 HRM AND HRD.............................................................................................................. 11
1.3VISION, MISSION AND VALUES .................................................................................... 13
1.3.1 VISION STATEMENT..................................................................................................... 13
1.3.2 MISSION STATEMENT ................................................................................................. 13
1.3.3 CORE VALUES............................................................................................................... 14
1.3.4 ORGANIZATIONAL VISION AND MISSION FOR HRD............................................. 14
1.4 CHALLENGES TO ORGANIZATION............................................................................... 15
1.5 HRD METHODS OR HRD FUNCTIONS ......................................................................... 17
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Violators will face infringement proceedings of copyright laws..
1.6 ROLES OF HRD PROFESSIONALS................................................................................. 20
1.6.1.CONTEMPORARY HRD PROFESSIONALS ROLES................................................... 21
1.7 HRD NEEDS ASSESSMENT............................................................................................. 22
1.7.1LEVELS OF NEED ANALYSIS ...................................................................................... 23
1.7.2 STRATEGIC / ORGANIZATIONAL ANALYSIS......................................................... 23
1.7.3TASK / OPERATIONAL ANALYSIS ............................................................................. 24
1.7.4 PERSON ANALYSIS ...................................................................................................... 26
1.8 HRD PRACTICES............................................................................................................... 27
1.9. MEASURES OF HRD PERFORMANCE ....................................................................... 29
1.10. LINK TO HR, STRATEGY AND BUSINESS GOALS ................................................ 31
1 . 1 0 . 1 HRD STRATEGIES ................................................................................................ 32
1.11 HRD PROGRAM IMPLEMENTATION.......................................................................... 35
1.11.1HRD PERFORMANCE EVALUATION ......................................................................... 36
1.12 RECENT TRENDS IN HRD............................................................................................. 38
1.13.STRATEGIC CAPABILITY............................................................................................. 39
1.13.1COMPONENTS OF STRATEGIC CAPABILITY ........................................................ 40
1.14.BENCHMARKING........................................................................................................... 40
1.15 HRD AUDIT ...................................................................................................................... 41
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UNIT I
HUMAN RESOURCE DEVELOPMENT
1. 1 INTRODUCTION
Organizations are increasingly looking at human resources as a unique asset that can provide
sustained competitive advantage. The changes in the business environment with increasing
globalization, changing demographics of the workforce, increased focus on profitability
through growth; technological changes, intellectual capital and the never-ending changes that
organizations are undergoing have led to increased importance of managing human resources.
In this scenario, a human resource (HR) department that is highly administrative has to play the
role of a strategic integrator to provide the competitive advantage needed for survival.
1.1. 1 STRATEGIC HUMAN RESOURCE MANAGEMENT
Strategic human resource management is a complex process which is constantly evolving and
being studied and discussed by academics and commentators. Strategic HRM can be regarded
as a general approach to the strategic management of human resources in accordance with the
intentions of the organization on the future direction it wants to take. It is concerned with
longer-term people issues and macro-concerns about structure, quality, culture, values,
commitment and matching resources to future need.
SCHULER, R.S. (1992) defines Strategic Human Resource management as all those activities affecting
the behavior of individuals in their efforts to formulate and implement the strategic needs of business.
Box all and Purcell says that Strategic HRM is concerned with explaining how HRM influences
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organizational performance.
Figure 1.1 Model of Strategic HRM
Strategic HRM model
Dyer and Holder define Strategic HRM in three levels which are as follows:
Organizational level - because strategies involve decisions about key goals, major policies
and the allocation of resources they tend to be formulated at the top.
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Focus - strategies are business-driven and focus on organizational effectiveness; thus in this
perspective people are viewed primarily as resources to be managed toward the achievement of
strategic business goals.
Framework - strategies by their very nature provide unifying frameworks which are at once
broad, contingency-based and integrative. They incorporate a full complement of HR goals
and activities designed specifically to fit extant environments and to be mutually reinforcing.
1.1.2 STRATEGIC HR VS TRADITIONAL HR
The below table depicts the differences between the traditional and strategic Human
Resource functions.
Table 1.1 Differences between Strategic and Traditional HR
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1.1.3ARRIERS TO STRATEGIC HRM
The other barriers include:
1. Resisting the vision and mission of the change effort.
2. Interdepartmental conflict.
3. The lack of commitment of the entire senior management team.
4. Lack of plans to integrate internal resource with external requirements.
5. Limited time, money and the resources.
6. The status quo approach of employees.
7. Fear of incompetence by senior level managers to take up strategic steps.
8. Fear towards victimization in the wake of failures.
9. Improper strategic assignments and leadership conflict over authority.
10. Ramifications for power relations.
11. Resistance that comes through the legitimate labor institutions.
12. Rapid structural changes.
13. Economic and market pressures influenced the adoption of strategic HRM.
14. More diverse, outward looking approach.
1.1.4 BENEFITS OF SHRM

1. Identifying and analyzing external opportunities and threats that may be crucial to the
companys success.
2. Provides a clear business strategy and vision for the future.
3. To supplycompetitiveintelligencethat maybeuseful inthestrategicplanningprocess.
4. To recruit, retain and motivate people.
5. To develop and retain of highly competent people.
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6. To ensure that people development issues are addressed systematically.
7. To supplyinformation regardingthe companys internal strengths and weaknesses.
8. To meet the expectations of the customers effectively.
9. To ensure high productivity.
10. To ensure business surplus thorough competency
1.2 HUMAN RESOURCE DEVELOPMENT (HRD)

Organizations need to be dynamic and growth-oriented to sustain in the competitive
environment. This is possible only through the competence of the human resources. To cope with
the fast changing environment, organizations need to review their HRD approaches continuously. HRD is
neither a concept nor a tool, but is an approach using different personnel systems, depending upon the
needs and priorities of the organization. The basic assumption is the belief in human potential and its
development by providing a suitable and congenial environment. Human Resource Development
(HRD) is the integrated use of training, organizational development, and career development efforts
to improve individual, group, and organizational effectiveness.
1.2.1 MEANING OF HRD

Human resource refers to the talents and energies of people who are available to an
organization as potential contributors to the creation and realization of the organizations
mission, vision, values and goals.
Development refers to a process of active learning from experience, leading to systematic and
purposeful development of the whole person: body, mind and spirit.
1.2.2 DEFINITION OF HRD

According to south pacific commission, Human Resource Development is equipping
people with relevant skills to have a healthy and satisfying life.
According to Rogers, Human Resource Development is a holistic concept, incorporating

intrinsically social, cultural, and spiritual dimensions to build capacity and empower
people.
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1.2.3 Features of HRD
1. Planned and systematic approach:
HRD is a planned and systematic approach to the development of people.
HRD is a system consisting of several interdependent and interrelated subsystems,

e.g., performance appraisal, training, job enrichment etc.,
While designing a HRD system, enough attention should be paid to building linkages
between the various subsystems.
2. Continuous process
HRD is a continuous and dynamic process which believes in the need for continuous
development of personnel to face the innumerable challenges in the functioning of an
organization.
It is based on the belief that there is no end to the development of an individual and the
learning process can continue throughout the life.
3. Inter Disciplinary Approach
HRD makes use of principles and concepts of behavioral sciences for the development
of people.
It uses knowledge drawn from psychology, sociology, anthropology, economics and

political science for planning and implementing various programs for the development
of individuals, groups and the organization.
4. Both Micro and Macro Aspects
At the macro level, HRD is described as the core of all development activities in the
sense of improvement of quality of life of people of a nation.
In case of micro level, HRD involves the improvement in the quality of managers and
workers so as to achieve greater quality and higher levels of productivity.
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The mission of HRD is to providde individual development in order to improve the
th performance
related to a current job; to providee career development in order to improve perform
mance related to
future jobs; and to provide organizzational development (OD) related to both optimaal utilization of
human resources and improved performance, which together lead to the effic
iciency of the
organization. Gilley & Eggland reffers the area of congruence among the three compon
nents: individual,
career, and organizational developmeent (See Figure 1.3).
Individual
Development
HRD
organisation career
development development
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1.2.4 STRATEGIC FRAMEWORK FOR HRD
Needs Assessment Phase

In this phase, some needs or gaps within the organization are analyzed.
A need can either be a current deficiency or a new challenge.
Identifying a need involves examining the organization, its environment, job tasks, &
employee performance.
This information can be used to:
Establishing HRD priorities
Defining specific training and objectives
Establishing evaluation criteria
Design Phase
This phase involves designing HRD program or intervention.
It involves activities like
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Selecting the specific objectives of the program
Developing an appropriate lesson plan
Developing or acquiring the appropriate materials for trainees to use
Selecting who delivers program
Selecting and developing program content
Scheduling the training program
If training is not the suitable solution, a different type of HRD intervention can be carried out
like staffing, compensation, focusing on total quality or process reengineering.
Implementation Phase
The goal of the assessment and design phases is to implement effective HRD
programs or intervention.
Implementing or delivering the program should be as decided as in the design phase.
Delivering may have some challenges like executing the program as planned; creating
an environment that enhances learning and resolving problems that may arise.
Evaluation Phase
In this final phase, the effectiveness of the HRD intervention is measured (but sometimes
under emphasized)
Evaluation on
Participants reaction to the program
how much they have learned
Applying the same on the job
Organization effectiveness.
Determining program effectiveness e.g.,
Keep or change providers?
Offer it again?
What are the true costs?
Can we do it another way?
1.2.5 HRM and HRD

The difference between the traditional human resource management and the human resource
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development is given in table.
Basis of Human Resource Human Resource Development

Difference Management
Objective To develop competitive To develop hr matching with

advantage based on human organization culture & provide inputs
resources. for the effective performance of
various HRM functions.
Status It is viewed as a set of It is a subsystem of large systems,

independent sub-functions. i.e., organization.
orientation It is considered to be mainly It is a proactive function which does

a service function responding not merely cope with organizational
to the demands of the needs but anticipates them and acts
organization as and when as on them in advance in a planned
they arise. and continuous manner.
Aim and scope It is narrow in scope and It is wider in scope and aims at
aims at developing and developing the total organization.
administering people only.
Incentives In HRM, salary, wage, It relies on job enrichment, job

used incentives and job challenge, informal organization,
simplification are considered autonomous work groups and
to be the main motivations. creativity for motivating people.
Responsibility It is supposed to be the It is regarded as the responsibility of

exclusive responsibility of the all managers in the organization.
HRD.
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Morale High morale and satisfaction It considers improved performance as
productivity are regarded as the cause of the cause of improved job satisfaction
relationship improved performance. and morale.
1.3VISION, MISSION AND VALUES
1.3.1 Vision Statement

A vision is a statement about what your organization wants to become. It should resonate with all
members of the organization and help them feel proud, excited, and part of something much bigger
than themselves. A vision should stretch the organizations capabilities and image of itself. It gives
shape and direction to the organizations future. Visions range in length from a couple of words to
several pages.
Definition:
According to Kotter, vision is a description of something (an organization, corporate culture,

a business, a technology, an activity) in the future.
According to Miller and Dess, Vision is the category of intentions that are broad, all
inclusive, and forward thinking.
1.3.2 Mission Statement

Mission or Purpose is a precise description of what an organization does. It should describe the
business the organization is in. It is a definition of why the organization exists currently. Each member
of an organization should be able to verbally express this mission.
Definition:
According to Philip Kotler, a mission statement acts as an invisible hand that guides widely
scattered practitioners to work independently and yet collectively towards the realization of the
HRD Programs goals.
A mission statement should include the following 5 things:

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The name of organization group.
The role that HR will serve in the organization (internal consultant, trainer, instructional
designer, and so forth).
The type of population served.
The type of interventions to be employed by HRD Programs.
The type of outcomes desired as a result of the interventions.
1.3.3 Core Values

Values are traits or qualities that are considered worthwhile; they represent an individuals
highest priorities and deeply held driving forces. Values are also known as core values and as governing
values; they all refer to the same sentiment. Value statements are grounded in values and define how
people want to behave with each other in the organization. They are statements about how the
organization will value customers, suppliers, and the internal community. Value statements describe
actions which are the living enactment of the fundamental values held by most individuals within the
organization.
The values of each of the individuals in the workplace, along with their experience,
upbringing, and so on, meld together to form the corporate culture. The values of the senior
leaders are especially important in the development of the culture. These leaders have a lot of
power in the organization to set the course and environment and they have selected the staff for the
workplace.
1.3.4 Organizational Vision and Mission for HRD

1. HRD should be placed in the vision statement of the business
2. Everyorganization is a family.
3. Everyone is his or her own HRD manager
4. The CEO is the chief facilitator of HRD
5. HRD is a part of the business of an organization
6. People enjoy working and derive a lot of satisfaction.
7. People should find the work to be meaningful and fulfilling
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8. Every experience of the employee should be viewed as a learning experience and every
moment is filled learningand development
9. People strive to do better each day, using their own and previous performance as
benchmarks.
10. People articulate their vision and share it.
1.4 CHALLENGES TO ORGANIZATION

At present the organizations are facing very high challenges because of the changes in the organizational
structure, labor market, psychological aspects of the labor, style of business, expanding boundaries of
business, technological improvements to name a few. In the Indian context what are the challenges and
how these challenges have made HRD important to cope with these changes has been discussed
below.
1. Restructuring of organizations
Many Indian companies are restructuring their organization structures bythinning their management
ranks and expanding their spans of control. Seven layers in the pyramid and seven direct subordinates
for each boss, which used to be the historic norm for many large companies is becoming a thing of the
past. Now the thrust is to flatten layers, expand spans and transform the organizational pyramid from
tall and narrow to short and wide.
2. Emphasis on core competency
With the licensing era coming to an end in India, companies now no longer need to
preemptively secure licenses in diverse and unrelated areas to outwit their competitors. There is now
a perceptible shift in favor of developing core competency through mergers and acquisitions.
Companies want to professionalize their groups.
3. Technological changes
Recent spurt in computerization and technological up gradation is, on the one hand, streamlining
process and paper work and increasing quality, service and speed and on the other hand making
several jobs obsolescent. Many companies which realize that they are not adding value in all
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functional areas are increasingly outsourcing many critical functions. These changes may make
workers redundant at some places. The redundant workers everywhere need to be rehabilitated
through training. The change has to be brought about with a human face. At this point, the HRD
manger has a critical role to play.
4. Work force empowerment
For the corporate democracy to become a reality many companies are now vesting their employees
with greater authority, expanding their job titles and increasing their accountability. In a country
where the benevolent autocrat has been the overwhelmingly preferred style, real empowerment of
the work force is going to pose a big challenge for the HRD manager.
5. More attention to special categories of workers:
With the special categories of workers such as physically handicapped, women, religious
minority, backward and others forming the ever increasing proportion of the total work force every
year measures like flexi time and telework are likely to assume greater significance. Flexible time
permits workers to start, finish and take meal breaks according to their own liking within a flexible
time band subject to a core time when everyone has to be in attendance. This measure can help
women workers to balance their job demands with their familydemands. Similarly, tele work can be of
great help to the physicallyhandicapped.
6. Compensation linked to shareholder value,
Top management compensation in U.S. firms is becoming increasingly tied to shareholder

value through expanded use of share options. To cite an instance: for a new chief executive assumed
office at Eastman Kodak in 1993, he received options to purchase more than 750,000 shares of
Kodak stock, of little or no value unless the stock price increased substantiallybut potentially worth
$ 13 million to $ 17 million if it did. Companies in India have started following these examples and
link executive compensation to the production of greater investor wealth.
7. More research in HRD:
Continuous research is needed to discover new HRD methods and interventions. This is possible
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only when there are HRD-orient
nted organizations to pool and share their experien
ences in diverse
areas.
1.5 HRD Methods or HRD

RD functions
Any systematic of formal w
way of developing the competencies and motivatio
on of individuals
in an organization and building the organizations climate by improving the process can be called as an
HRD method or HRD functions.. HRD method or HRD functions includes the follo
ollowing:
1. Primary functions:
(i) Training, Education and Deve

evelopment:
There are 3 different HRD mechani

nisms with different focus and purpose as shown in the following
table:
Activity Focus Purpose

Training Learning of present job Improved performance on the present
job.
Education Learning of other related jobs Preparation of the employee for the
related jobs in the future.
Development Learning not related to present or future job General growth of the employee.
but the overall personality of the employee.
Three broad areas in which trraining may be imparted are technical, behavioral and conceptual.
The training approach is one of th
the main HRD interventions. The various types of training
t program
includes
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i Classroom training approaches like lecture, discussion, audiovisual media, experiential
methods, self-paced or computer based training, role plays, case studies.
ii Behavioral training approaches like sensitivity training, team building exercises, leadership
training.
iii Outdoor training approaches like outbound training.
(ii) Organizational development (OD) Techniques:
Many organizations make use of several OD techniques for the development of their human resource.
These include team-building, organizational mirroring, T-group, etc. In team building people learn
how to work in collaboration with each other. Under organizational mirroring, the host group gets
feedback from representatives from several other organizational groups about how it is perceived
and regarded. The intervention is designed to improve the relationships between groups and increase
the inter-group effectiveness.
(iii) Career Development and Career Planning:
It may be useful to help new employees become aware of the various phases of development in
the company and plan with senior employees their specific career path. Necessary help may also be
given to employees with limited potential to cope with reality. In the HRD system, corporate growth
plans are not kept secret. They are made known to the employees to plan their career.
2. Secondary Functions.
(i) Role Analysis and Role Development
This is an extremely important technique of HRD. Under it the job of an individual in the organization
is analyzed and enriched in terms of his role and not in terms of his job. He, his immediate superior
and subordinates sit together to discuss their expectations about the job from each other. They then
arrive at a consensus about the individuals role and prepare his role description. It is always ensured
that a role is sufficiently challenging for the individual, provides him adequate autonomy for taking
initiative and is linked with other organizational roles to avoid a feeling of isolation.
(ii) Potential Appraisal and Promotion
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It is another important HRD mechanism which is concerned with identifying the potential of an employee
for future development and promotion in the company. This focuses on finding out periodically the
extent to which a given individual possesses the critical attributes required to handle higher level
responsibilities. For example, the HRD programme at SBI centered on training and appraisal following
its reorganization and rapid growth.
(iii) PerformanceAppraisal
Under this mechanism, the performance of the employees is periodically appraised and the goals are
redefined. This mechanism emphasis the development of the employee rather than their evaluation.
For example Crompton Greaves resorted to HRD when it faced a slump, in business and decided to
take up additional projects in new locations. The focus of its program was role clarity so that
responsibility for results could be vested with profit centre managers. It refined the appraisal system.
(iv) Quality of Work Life:
For overall development of workers, only good wages are not enough. They also need to be
provided with good physical conditions and motivating work. If the work is monotonous or boring it
must be redesigned. Several Indian organizations are taking initiative in improving quality of work life of
their workers. Bharath Heavy Electricals Limited (BHEL) is one such organization, which took up job
redesign as an O.D. intervention as early as 1975 and focuses on employee welfare and quality of
work life.
Participative Devices
Following are some important participative devices:
A. Bi-partite Meetings
It is used to arrive at settlements concerning workers wages and service conditions. It is also used to
review the working of existing settlements and examine their impact on workplace discipline, work
ethics, and customer service, etc.
B. Information Sharing
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To share information about the business profitability, performance of the company, competition,
marketing, etc.
C. Joint Surveys
Management and union undertake joint surveys on the state of morale, motivation, grievances of
workers, etc., and jointly plan ways of dealing with these problems.
D. Taskforces
It is used to undertake study of problems like Absenteeism, Indiscipline, etc., and suggest ways to
solve the problem.
E. Collaborative projects
To undertake jointly certain projects, e.g., a project on employeewelfare, workers education etc.
1.6 Roles of HRD professionals

A current challenge for HRD professionals is to play a more strategic role in the functioning of their
organization. Progress has been made in moving toward a more strategically integrated HRD. In
particular, HRD executives and professionals should demonstrate the strategic capability of HRD in
three primary ways:
1) Directlyparticipating in their organizations strategic management process,
2) Providing education and training to line managers in the concepts and methods of strategic
management and planning, and
3) Providing training to all employees that is aligned with the goals and strategies of the
organization.
First, HRD executives should contribute information, ideas, and recommendations during strategy
formulation and ensure that the organizations HRD strategy is consistent with the overall strategy. The
HRD strategyshould offer answers to the following questions:
Are the organizations HRD objectives, strategies, policies, and programs clearly stated?
Are all HRD activities consistent with the organizations mission, objectives, policies, and
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internal and external environment?
How well is the HRD function performing in terms of improving the fit between the
individual employee and the job?
Are appropriate concepts and techniques being used to evaluate and improve corporate
performance?
Second, HRD professionals should provide education and training programs that support
effective strategic management. Training in strategic management concepts and methods can help
line managers to develop a global perspective that is essential for managing in todays highly
competitive environment. These issues are offered as part of the organizations management
development program.
Thirdly, one of the important tasks of the HRD executive is to promote the value of HRD as a
means of ensuring that organizational members have the competencies to meet current and future job
demands. If senior managers do not understand the value of HRD, it will be difficult for the HRD
executive to get their commitment to HRD efforts and to justify the expenditure of funds duringtough
times. Historically, during financial difficulties, HRD programs (and HRM, in general) have been a
major target of cost-cutting efforts. Unless the HRD executive establishes a clear relationship
between HRD expenditures and organizational effectiveness (including profits), HRD programs will
not receive the support they need.
Finally, HRD professionals must ensure that all training efforts are clearly linked to the goals and
strategies of the organization. While this may seem obvious, un-fortunately, it is not uncommon for the
link between training programs and organizational strategyto be far from clear.
1.6.1. Contemporary HRD Professionals Roles
Pat McLagan states that contemporary HRD professionals perform nine distinct roles, which
are described below.
The HR strategic adviser consults strategic decision makers on HRD issues that directly affect
the articulation of organization strategies and performance goals. Outputs include HR
strategic plans and strategic planning education and training programs.
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The HR systems designer and developer assist HR management in the design and
development of HR systems that affect organization performance. Outputs include HR
program designs, intervention strategies, and implementation of HR programs.
The organization change agent advises management in the design and
implementation of change strategies used in transforming organizations. The outputs include more
efficient work teams, quality management, intervention strategies, implementation, and
change reports.
The organization design consultant advises management on work systems de-sign and the
efficient use of human resources. Outputs include intervention strategies, alternative work designs,
and implementation.
The learning program specialist (or instructional designer) identifies needs of the learner,
develops and designs appropriate learning programs, and prepares materials and other
learning aids. Outputs include program objectives, lesson plans, and intervention strategies.
The instructor/facilitator presents materials and leads and facilitates structured learning
experiences. Outputs include the selection of appropriate instructional methods and
techniques and the actual HRD program itself.
The individual development and career counselor assists individual employees in assessing
their competencies and goals in order to develop a realistic career plan. Outputs include
individual assessment sessions, workshop facilitation, and career guidance.
The performance consultant (or coach) advises line management on appropriate interventions
designed to improve individual and group performance. Out-puts include intervention
strategies, coachingdesign, and implementation.
The researcher assesses HRD practices and programs using appropriate statistical procedures
to determine their overall effectiveness and communicates the results to the organization.
1.7 HRD needs assessment

Meaning: A need assessment is the process of identifying performance requirements and
the gap between what performances is required and what presently exists.
Definition: According to Kaufman et al., Need assessment can be defined as a process
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for identifying andd prioritizing gaps between current and desired results.
1.7.1Levels
Levels of need analysis
1.7.2 Strategic / organizational analysis

At an organization level, HRD needs analysis involves a review of key organizational activities
such as long and short term business goals, major environmental changes and existing human
resource development, and performance management systems.
Components of organizational analysis
Organization goals
Organization resources
Organization climate
Environmental constraints.
Advantages of conducting strategic / organizational analysis
Organization analysis examines organization goals, available resources, and the

organizational environment to determine where training should be directed.
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It identifies the training needs of different departments or sub units.
Organizational analysis also involves systematically assessing manager, peer and

technological support for transfer of training.
1.7.3Task / operational analysis

Task analysis provides data about a job or a group of jobs and the knowledge, skills, attitudes
and abilities needed to achieve optimum performance.
The job analyst gathers the information on whether the job is clearly understood by an
employee or not.
Job analyst gathers the information through
Technical interview.
Observation.
Psychological test.
Questionnaires.
Process of task analysis
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Overall job description
Task identification
Describe KSA needed to perform the task
Identify the area that can benefit from the training program
Prioritize the training needs
Step 1: Overall Job Description

The first step in the process is to develop an overall description of the job that is
being analyzed. This consists of major activities involved in performing the job and the
conditions under which these activities are performed. If the job description is readily
available in the organization, then it can be taken-up for review. Proper and accurate job
description is necessary for job analysis
Step 2: Task Identification

Here the focus is on the' behavi6i
behavi6i-f performed within the job. The following information
about the job is determined and described:
1) The major task within the job,
2) How the task should be performed, and
3) How the tasks are actually performed in day-to-day operation.
For an effective need analysis both performance standards and performance variability are
needed. 'That is, what should be done and what is done is analyzed. This activity allows
the HRD professionals to identify discrepancy that should be remedied.
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Step 3: Describe the KSA Needed to Perform the Task: Any task to
be done successfully requires the employees possessing the adequate KSAs to
perform the tasks. A thorough job analysis will contain this information which will
be available in the job specification section. If it is not available or if not updated,
information required to perform the job is valuable to determine the preceding HRD
efforts in the organization.
Step 4: Identify the Area that can Benefit from the Training Program:
From the KSAs identified and listed for the job to be performed, those tasks
and capabilities that could be trained through programs has to be identified.
The important task identified in the previous step should be matched with
the KSAs that could be trained. Based on the prioritizing, the candidate to
be included for the training program has to be decided.
Step 5: Prioritize the Training Needs: The task and the KSA that could be
benefited from training after being identified, the one which receives highest
priority has to be taken-up in order of priority. The next important activity in the
TNA process is the task analysis which involves identifying the important tasks
performed as well as the knowledge, skills, and behaviors that are required to
perform those tasks. The task analysis will bring-out in what area or task the
individuals' needs training.
1.7.4 Person analysis

A person analysis involves deciding which employees actually need to participate in training
program. It is a great tool to use to identify the situations in which the employees simply are
not properly trained.
Components of person Analysis
Summary person analysis: It involves determining the overall success of individual

employee performance. A global analysis it is an overall evaluation of an individual
employees performance, a classification of an individual as a successful versus
unsuccessful performer.
26
Diagnostic person analysis: It tries to discover the reasons for an employees
performance. Determine why results of individual employees behavior occur;
determine how individuals knowledge, skills, abilities, and other characteristics, effort,
and environment factors combine to yield the summary person analysis.
1.8 HRD PRACTICES

Pareek provides a six fold system classification of HRD practices in India which are described
below:
Appraisal system
Career system
Training system
Work systems
Cultural systems
Self Renewal systems
1) Appraisal S y s t e m : Appraisal of an employee's performance (or potential) helps

the HR to understand the employee better, and dole-out rewards in the form of bonuses
At the same time, appraisal system provides a feedback to the employee regarding her
performance. There are three main appraisal systems:
i) Performance appraisal;
ii) Potential appraisal; and
iii) Performance coaching or counseling.
.
2) C a r e e r S y s t e m : A Major component o f human resource d e v e l o p m e n t is
career system. Work c a r e e r is an important part o f adult l i f e . The a d u l t
e m p l o y e e passes t h r o u g h several d e v e l o p m e n t a l phases w i t h i n h e r job life.
Hence, need for a career system to help the employee to sail through development
27
phases.
Three broad components of career systems are as follows:
i)Experiences: They are most useful for an employee at an entry point.
Experience is necessary for employees to move up in the organization; hence there is a
need for HRD to make concerted efforts to expose the employee various types of work.
ii) Opportunities: An employee can prove s o they need a m p l e o p p o r t u n i t i e s .

It is the role of the HRD to design an organization structure, so that an employee with
ability has opportunities to take more responsibilities as he/she m a t u r e s .
iii) Career Planning: It is involved in charting special career p a t h s f o r
.
individual employees
3) Training System: It is one of the most well-defined elements of HRD. Since

HRD traditionally focuses on skill development, training is central to HRD.
Unfortunately, it is being very inadequately treated in most organizations. Attention
to identification of training needs, preparation of a training strategy, development
of a training method as pedagogy, curriculum designing (to meet specific-needs),
evaluation, follow-up, and post-training support are all important components of a
good training system. Although training is extensively used for human resource
development and large budgets are spent on training, on the whole, training is not
taken seriously.
4) Work System: Prof. Pareek strongly believes that HRD must deal with
four aspects o f work systems:
i)Task Analysis: It refers to an analysis of the psychological and physical traits
needed for an' employee to perform a specific job.
ii) Quality of Working Life: It affects both employee motivation and role stress.Prof.
Pareek argues that in improving the quality of work life, factors like participative
management, workplace democracy, autonomous work groups, etc., have to be
introduced. Other new i n t r o d u c t i o n s in the field of work systems include stress
management, introducing quality circles, etc.
iii) Productivity: Productivity depends on e m p l o y e e motivation (again how
28
to motivate e m p l o y e e is decided b y HRD) .
iv) Role Stress: It happens due to a variety of reasons. Quality of work life affects both
employee motivation and role stress.
5) Cultural System : Organizational culture as cumulative ways of thinking and

behaving shaped by the values, attitudes, rituals, and sanctions in an organization.
Operationally, development of culture w o u l d i n v o l v e developing a strong corporate
identity, development of important values, building healthy traditions,
and developing consistent management practices. Cultural systems, which cater
to the development of appropriate organizational culture, are the most neglected part
of HRD. Some recommendations for development of culture by, Prof. Pareek are:
i) Development of strong corporate identity;
ii) Developing important values and ethics;
iii) Building healthy traditions and practice, such as induction programs,
promotions, exit policy, retirement policy, etc.
iv) A robust communication system, whereby employees placed variously in the
company hierarchy can communicate with each other.
6) Self-Renewal Systems: An organization should be-concerned with both growth
and its health. As it faces new challenges with changing times, there is a need to renew
the organizational focus. Hence, a major job of HRD professionals is Organizational
Development (OD). The focus of OD is on developing process competency to increase
organizational effectiveness. Organization development aims at maintaining profiles of
organizational health, monitoring organizational health, assisting sick departments, helping
interested units and departments in self- renewal, conflict management, creation of
strong teams, and so on, and establishing processes that built a climate to promote
enabling capabilities in the organization.
1.9. Measures of HRD Performance

Dynamic changes in HR measures are urgently required to refocus the priorities and
resources of the HR function. Instead of being HR driven (what makes sense to HR
29
professional), the next generation of HR measures need to be business driven (how HR
can impact business success). Instead of being activity-oriented; new HR measures should
be impact-oriented (how much we improve business results). Instead of looking backward
(what and has happened), innovative HR measures should be forward looking, allowing
the managers to assess and diagnose the processes and people capabilities that can predict
the future success of corporations. Finally instead of focusing on individual HR practices
(the performance of staffing practices, training and development practices, etc.), future
HR measures should focus on the entire HR system taking into account the synergy
existing among all HR practices.
Integrative HR Framework
This framework was offered by Yeung and Berman building on the earlier approaches.
This framework identifies three paths through which HR practices can contribute to
business performance:
1) By building organizational capabilities;
2) By improving employee satisfaction; and
3) By shaping customer and shareholder satisfaction.
The framework also proposed three clusters of measures of HR effectiveness - internal

operational HR measures, internal strategic HR measures, and external strategic HR
measures. In this frame}Vork,HR practices are conceptualized as key drivers in building
organizational capabilities, enhancing and shaping employee satisfaction, and having an
impact on customer satisfaction. This is called the first linkage chain. In the second
linkage chain, organizational capabilities become key drivers which implement business
strategy, impact customer satisfaction, and eventually contribute to shareholder
satisfaction.
Based on the integrative model the three sets of measures proposed by Yeung and
Berman are:
1) Internal Operational Measures: It deals with how well the HR practices are
designed and delivered. For example, the efficiency, quality, and speed of
delivering HR practices and managing the HR function as a whole. These include
30
process measures like cycle time, quality and cost of HR practices; and result
measures such as offer/accept ratios, different, levels of training evaluation and
business impact. HR professionals to employee population, % of HR expenses to
operating expenses, results of client satisfaction surveys, etc., are included. These
measures are not adequate to assess the performances of new HR roles and
activities.
2) Internal Strategic Measures: It dealing with how effectively the HR practices

builds desired organizational capabilities and how effectively they increased
employee satisfaction. For example, at Eastman Kodak three critical organizational
capabilities are identified - Leadership effectiveness (measured by 360 degree
assessment), workforce competencies (measured by % of employees with
documented development plans, number of hours devoted to development, results of
development actions measured by planned action, reaction, learning, on-the-job
behavior, and business results) and performance-based culture measured through
surveys and performance tracking).
3) External Strategic Measures: It is dealing with how well the HR practices increase
customer and shareholder satisfaction? The measures may include customer
satisfaction enhancement programs, executive education programs to drive
satisfaction, incentive compensation plans, etc.
1.10. Link to HR, Strategy and Business Goals '
A goal is an idealized description of what results are sought in the future. Common goals
might include increasing market share, improving performance or improving customer
satisfaction. Goals are timeless and measureless. The overarching goal of Human
Resource Development interventions is to assist employees and organizations in attaining
their goals. The following focus is needed in HRD efforts strategically to achieve the
business goals, which are to beat these challenges. The business goals include:
1) Business excellence, including profitability, and other outcomes the organization is
expected to achieve;
2) Internal operational efficiencies;
31
3) Internal customer satisfaction;
4) External customer satisfaction;
5) Employee motivation and commitment;
6) Cost-effectiveness and cost-consciousness among employees;
7) Quality orientation; and
8) Technology adoption.
HRD systems should focus on the above dimensions and these focal points may be taken as
strategic focal points. The HR system and HR strategies adopted have to be in
conformity with the business goals .
1 . 1 0 . 1 HRD Strategies
Organizations today have to develop people strategies to deal effectively with
globalization and competitiveness. Generally, human resource development strategies
relate to attracting, engaging, retaining, developing, motivating, and utilizing employees and
their competencies for effective organizational functioning, growth, and excellence. Major
HRD strategies are as shown in figure below:
1. Communication strategy: Continuous communication with employees, their family

members, and the society at large is crucial to an organization. It is essential to educate
and train employees about the need for change and seeking their commitment is critical
factor in success of any change management process of an organization.
2. Accountability and ownership strategy: Employee accountability and ownership is
vital to organizations intending to stay competitive. Employees accountability and
ownership leads to higher productivity and customer excelleration.It. It can be achieved
through various HRM processes and systems such as performance appraisal, career
planning and development, counseling and mentoring, quality of work life, etc., which
must be linked to business plans, is essential to build a strong organizational culture for
building and sustaining competitive advantage.
32
Communication
strategy
Learning
strategy Accountability &
ownership
strategy
Systematic
training HRD
Quality strategy
strategy Strategies
Culture - Cost reduction

building strategy
strategy
Intrapreneurship
strategy
3) Quality Strategy: Quality is the foundation of any organization. Quality is

a mind- set, which n e e d s t o be fostered in the employees through training and
development. Quality should be p r o m o t e d in everything an o r g a n i z a t i o n
does, through various quality management tools such a s total q u a l i t y
management. Quality improvement needs c o n t i n u o u s commitment, support,
and ownership of employees at all levels at all times. Total qualit y m a n a g e m e n t
places em phasis on quality t h a t encompasses the entire organization and
involves:
i) Continuous improvement;
ii) Employee empowerment and quality circles;
iii) Benchmarking - best at similar activities, e v e n if in different industries;
iv) Just in time - requires quality of suppliers;
v) TQM tools - allow to measure progress.
4) Cost Reducti on Strategy: It plays a significant role in the organizations.

33
Employees need to see waste everywhere. Every employee's contribution in
savings is crucial as small contributions from each employee can be pooled by
organizations to save substantial savings at the end of a given period and enhance
its competitive strategy.
5) Intrapreneurship Strategy: Every employee needs to be an intrapreneur,

i.e., independent entrepreneur who can generate ideas and bring them to reality
by using the existing resources and support of the organization to create
innovative and creative products and services. This requires developing
assertive risk-taking in the employees. Organizations must enable t h e i r human
resource development processes and systems t o foster such an environment for
its employees.
6) Culture-Building Strategy: Organizations valuing its employees have a

sustainable competitive edge over competitors because e m p l o ye e s are highly
charged, motivated, and c o m m i t m e n t to t h e organization. A strong
culture fosters higher employee commitment towards t h e goals and objectives
of the organization.
7) Systematic Training Strategy: It i s the training based on job analysis,
organizational mission, and objectives leads to improved return on investment.
The planning and organization of formal on-job training and off-job training
leads to improving vital employee characteristics, build and sustain appropriate
work culture and brings in more professionalism in action. .
8) Learning Strategy: Continuous development and l e a r n i n g environments
promote self-development of employees; of, self and by self. It aims t o achieve
a learning organization' necessary to eq ui p employees with n e w s k i l l s
and c o m p e t e n c i e s on ongoing b a s i s . It requires H R D processes and systems
to focus on:
i) Coaching and mentoring culture;
ii) Self-directed systems;
34
t
iii) Learner led.
1.11 HRD program implementation
After an H R D p r o g r a m has been designed, it is now ready for

implementation. Meticulous p l a n n i n g and efforts are n e e d e d to c o n d u c t a
training and development program. Conducting HRD programs refers to t h e
implementation process whereby learning reaches t he trainees f o r adaptation and
intended a p p l i c a t i o n on the job i n order to improve performance. Conducting
HRD/training programs involves the f o l l o w i n g steps as follows.
Choosing Delivery System
Communicating Training and Development Programs
Implementation
STEP 1. Choosing Delivery System: Effective and innovative methods of training

and development should be utilized to deliver the learning materials that are
culture sensitive and appropriate to the subject matter of the training and
development program.
STEP 2. Communicating Training and Development Programs: Trainers should

us appropriate channels of communication to elicit participation in the program by
the trainees. A wi de variety of c o m m u n i c a t i o n channels such as bul l eti n s ,
circulars notice, i n d i v i d u a l letters, e t c ., can be used. It is important to
communicate training and development programs sufficiently in advance so that the
departmental manager of the trainees can plan for delegation of the work of the
trainees who will be aware from their actual work. Individual employees also gets
opportunity to not only plan their regular work and make for suitable adjustment
but also to plan their personal priorities such as proceeding on leave, etc.
35
Trainers m u s t take care of draft program c o m m u n i c a t i o n tastefully so that it
appeal and g e n e r a t e s enthusiasm amongst them. Also, at this stage the trainer
needs t forward the learning materials, if any to the trainees so that they can have a
'feel' of the program and come prepared for the training and development program.
A typical communication should include:
i) Title of the program,

ii) Basic objectives of the program,
iii) Venue,
iv) Time,
v) Other requirements, if any.
STEP 3 Implementation: Trainer must m ake al l arrangements necessary for the

seamless conduction of the training and developm ent program. He s hou l d be
experience and knowledgeable to deliberate on the subject. He should begin QY
establishing rapport with the trainees and create a conducive environment for
learning an participation for the trainees, He should continuously give positive stroke to
his trainees and checks back their attention, interest, active listening and participation.
HRD Program evaluation is the final phase in the training and HRD process. This is
1.11.1HRD Performance evaluation

Where the effectiveness of the HRD intervention is measured. This is an important but often ignored
activity. Careful evaluation provides information on participants reaction to the program, how much
they learned, whether they use what they learned back on the job, and whether the program
improved the organizations effectiveness. HRD professionals are increasingly being asked to
provide evidence of the success of their efforts using a variety of hard and soft measures, that is,
both bottom line impact, as well as employee reaction.53 This information allows managers to make
better decisions about various aspects of the HRD effort, such as:
Continuing to use a particular technique or vendor in future programs Offering a

particular program in the future
Budgeting and resource allocation
Using some other HR or managerial approach (like employee selection or Changing work
36
rules) to solve the problem
It is important that HRD professionals provide evidence that HRD programs improve individual and
organizational effectiveness.Armed with this information, HRD managers can better compete with
managers from other areas of the organization when discussing the effectiveness of their actions and
competing for resources.
Below table outlines some of the available models for HRD Performance evaluation
37
1.12 Recent trends in HRD
Development of HRD functions outside organizations.
3 The number of the unemployed resulting from redundancies is increasing, thus the
importance of human resources development functions outside the c o m p a n y
(public vocational training agencies a n d schools) is increasing. As there are
increasing numbers of unemployed school graduates and "fretters" among young
workers, it is important to enhance human resources development associated with
schools, companies, etc.
Training needs assessment of Non- Regular Employees.
There are f e w h u m a n resources development opportunities for non-regular

employees. In order to enhance the motivation for working among non-regular
employees and to make better use of their abilities, it is important to implement
training needed for the job, as well as career development and treatment
corresponding to the employee's attitude and types of employment.
Self Development
Employers and workers are conscious of the importance o f human resources development.
The primary measure of company-based training is on-the-job training (OJT), but the
i m p o r t a n c e of self-development is increasing. Workers feel uneasy a b o u t their
career d e v e l o p m e n t human resources development. Company support for h u m a n
resources appears to i n c r e a s e t h e motivation for human resources d e v e l o p m e n t
and desire to work among employees
Development and Implementation of plans
Despite this, the percentage of establishments that implemented systematic OJT

or off-the-job training declined in the late 1990s. Since OJT is likely to be affected by
the superiors' leadership abilities and e n t h u s i a s m , it is i m port ant for
com p ani es . to d e v e l o p plans and s y s t e m s for human resources development
and implement t h e m systematically.
Employee self Education

38
In terms of off-the-job training,
-the level of investment in human resources
development may be insufficient, as the percentage of education and training costs
in total labor cost for companies is on the decline. It is important for companies to
continue to support e m p l o y e e self-education in terms o f time and cost. The
percentage of employees implementing self-education is higher among
employees of companies that implement supportive measures for self-education
or companies that regard education and training as the responsibility of the employer
Performance Based systems
Under performance -based systems, workplaces tend to focus on short-term results a n d

neglect employee training. In order to prevent this, a performance-based wage and
treatment should be used as a means of promoting human resources development,
by setting performance goals in terms of training of subordinates or one's own human
resource development.
Employee career development.
It is also important to increase involvement with employee's career development,

through the introduction of an in-house recruitment system o r self -application
system, dialogue between evaluators and employees on goal- setting and the status of
achievement, as well as human resources development, etc.
1.13. Strategic capability

Strategic capability Refer to the capabilities of the members of the organization that enable the
formation and deployment of strategy in pursuit of a sustainable advantage.
Strategic capability in organization as defined by Rosemary Harrison involve
Choosing the most appropriate vision, long run goals, and objectives for an
enterprise:
Determining and managing the course of action and the allocation of resources
necessary for achieving those goals.
Selecting and ensuring the development of strategic assets that ensure continued
39
profitability of the business.
1.13.1Components of Strategic capability

Strategic capability consists of 3 components directly related to HR:
1. Human Capital: It is the know- how, skills, and capabilities of individuals in an

organization. It reflects the competencies people bring to their work. Some examples of
human capital include technical skills, innovativeness, and leadership competencies.
2. Structure capital: it is the organizational architecture and managerial processes that
enable human capital to create market value. Some examples of structural capital include
modular or cellular structures, information systems, organizational culture, and decision-
making process.
3. Relationship capital: it is the interpersonal connections across members of the firm and
relationships with suppliers, customers, and other firms that provide the basis for co
operations and collaborative action. Some examples of relationship capital include trust,
consumer loyalty, co- production activities, and licensing agreement.
1.14. Benchmarking
Meaning & definition
Benchmarking is the process of identifying, understanding, and adapting outstanding

practices from organizations anywhere in the world to help organization to improve its
performance.
According to Pepper, Webster and Jenkins, benchmarking is a way of comparing a product

or process against others, with reference to specified standards.
The common benchmarked performance measures in HR management are:
1. Totalcompensation as a percentage of net income before taxes.
2. Percentof management positions filled internally.
3. Sale (in terms of monetary unit) per employee.
40
4. Benefits as a percentage of payroll cost.
1.15 HRD Audit

HRD audit is a comprehensive evaluation of the current HRD strategies, structures, system,
styles and skills in the context of the short and long term business plans of a company. It attempts
to find out the future HRD needs of the company after assessing the current HRD activities and inputs.
Why do companies want HRD Audit?
To make the HR function business-driven

To take stock of things and to improve HRD for expanding, diversifying, and entering into a
fast growth phase
For promoting professionalism among employees and to switch over to professional
management.
Multinationals want to know the reason for lower labor productivity and for
improving their HRD strategies in the Indian context.
Multinational organizations have problems with cultural diversity and hence these
companies relied on the HR department for changing the situation. As a result they decided
to take HRD audit.
For growth and diversification
Dissatisfaction with a particular component
Change of leadership
The following are some of the techniques that are followed during the conduct of HRD audit in an
organization. These techniques can be used alone or as a combination of techniques.
1. Individual Interview
This technique is used for collecting information from top level management and senior managers.
Such individual interviews are must for capturing their thoughts about the future plans and opportunities
available for the company. A good HRD audit begins with individual. Individual interviews are also
helpful in obtaining sensitive information like organization culture, leadership styles.
2 Group Interview
In large size companies it is not feasible to interview everyone individually. Group interviews
are normally for groups of 4-8 individuals. It is preferable to have employees drawn from same or
similar levels for free expression of views. However, it is quite common to give cross-functional
41
representation of employees in the same group. If the organization is large, an attempt is made to
conduct group interviews for each function separately to keep the levels homogeneous.
3. Workshop
In some cases Large Scale Interactive Process (LSIP) workshops are conducted. In such
workshops, a large number of participants ranging from 30-300 can be gathered in a room and asked
to do the HRD audit. Normally the participants work in small groups either around various
subsystems or around different dimensions of HRD, do a SWOT analysis and make a presentation.
The workshops can also be used to focus specifically on individual HRD systems like performance
appraisal. The workshop outcomes have been found to be very good. Participatory methods of HRD
audit may initiate the change process and it can also provide a lot of information to the top
management on employee related processes and help them plan further intervention.
4 Questionnaire Method
Questionnaire can be used to assess various dimensions of HRD including the competency of
HRD staff, and the HRD systems. The questionnaire can be administered individually or in group. It
is better to call groups of respondents, selected randomly to a room and explain the objectives and
the process of HRD audit and administer the questionnaire. Care should be taken to get more
credible data and not to disclose the personal explanation given by the respondents.
5 Observation
The HRD Audit consultants visit the work place including the plant, the machinery, room, canteen,
toilets, training room, hostels, hospitals, living colony, etc to assess the extent to which a congenial
and supportive human welfare-oriented climate exists in the company. This is essential because
employees are not likely to give their best if they dont live in good surroundings, their health and
education are not taken care of, they dont have good communication and other facilities and their
work conditions se poor.
6 Analysis of Secondary Data

This can give a lot of insights into the HRD assets and liabilities of the company. Such an analysis
42
should pay attention to the costs incurred by the company in terms of maintaining the HRD
infrastructure. For example the training program attended by the members and the result of it on
performance can be analyzed through the employee productivity chart and performance appraisal
reports.
7 Analysis of Reports, Records, Manuals, and other Published literature

Published literature of the company, such as annual reports, marked handouts, training calendar,
personnel manual, and various circulars issued from time to time are also likely to help in assessing the
strength and weaknesses of HRD.
43

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BA 7036 STRATEGIC HUMAN RESOURCE MANAGEMENT

UNIT I HUMAN RESOURCE DEVELOPMENT

1.1. 1 STRATEGIC HUMAN RESOURCE MANAGEMENT

Figure 1.1 Model of Strategic HRM

Strategic HRM model

1.1.2 STRATEGIC HR VS TRADITIONAL HR

Table 1.1 Differences between Strategic and Traditional HR

1. Resisting the vision and mission of the change effort.

3. The lack of commitment of the entire senior management team.

4. Lack of plans to integrate internal resource with external requirements.

5. Limited time, money and the resources.

6. The status quo approach of employees.

7. Fear of incompetence by senior level managers to take up strategic steps.

8. Fear towards victimization in the wake of failures.

9. Improper strategic assignments and leadership conflict over authority.

10. Ramifications for power relations.

11. Resistance that comes through the legitimate labor institutions.

12. Rapid structural changes.

14. More diverse, outward looking approach.

1.1.4 BENEFITS OF SHRM

2. Provides a clear business strategy and vision for the future.

3. To supplycompetitiveintelligencethat maybeuseful inthestrategicplanningprocess.

4. To recruit, retain and motivate people.

5. To develop and retain of highly competent people.

7. To supplyinformation regardingthe companys internal strengths and weaknesses.

8. To meet the expectations of the customers effectively.

9. To ensure high productivity.

10. To ensure business surplus thorough competency

1.2 HUMAN RESOURCE DEVELOPMENT (HRD)

1.2.1 MEANING OF HRD

1.2.2 DEFINITION OF HRD

According to Rogers, Human Resource Development is a holistic concept, incorporating

HRD is a planned and systematic approach to the development of people.

HRD is a system consisting of several interdependent and interrelated subsystems,

3. Inter Disciplinary Approach

It uses knowledge drawn from psychology, sociology, anthropology, economics and

4. Both Micro and Macro Aspects

Needs Assessment Phase

1.2.5 HRM and HRD

Basis of Human Resource Human Resource Development

Objective To develop competitive To develop hr matching with

Status It is viewed as a set of It is a subsystem of large systems,

orientation It is considered to be mainly It is a proactive function which does

Incentives In HRM, salary, wage, It relies on job enrichment, job

Responsibility It is supposed to be the It is regarded as the responsibility of

1.3VISION, MISSION AND VALUES

1.3.1 Vision Statement

According to Kotter, vision is a description of something (an organization, corporate culture,

1.3.2 Mission Statement

A mission statement should include the following 5 things:

The type of population served.

The type of interventions to be employed by HRD Programs.

The type of outcomes desired as a result of the interventions.

1.3.3 Core Values

1.3.4 Organizational Vision and Mission for HRD

3. Everyone is his or her own HRD manager

4. The CEO is the chief facilitator of HRD

5. HRD is a part of the business of an organization

6. People enjoy working and derive a lot of satisfaction.

7. People should find the work to be meaningful and fulfilling

10. People articulate their vision and share it.

1.4 CHALLENGES TO ORGANIZATION

2. Emphasis on core competency