WHAT IS HUMAN RESOURCE MANAGEMENT?

Human resource management (HRM) is the strategic and coherent approach to the
management of an organization's most valued assets - the people working there who
individually and collectively contribute to the achievement of the objectives of the
business.The terms "human resource management" and "human resources" (HR) have
largely replaced the term "personnel management" as a description of the processes
involved in managing people in organizations. Human Resource management is evolving
rapidly. Human resource management is both an academic theory and a business practice
that addresses the theoretical and practical techniques of managing a workforce.

The Human Resources Management (HRM) function includes a variety of activities, and
key among them is deciding what staffing needs you have and whether to use independent
contractors or hire employees to fill these needs, recruiting and training the best
employees, ensuring they are high performers, dealing with performance issues, and
ensuring your personnel and management practices conform to various regulations.
Activities also include managing your approach to employee benefits and compensation,
employee records and personnel policies. Usually small businesses (for-profit or nonprofit)
have to carry out these activities themselves because they can't yet afford part- or full-time
help. However, they should always ensure that employees have and are aware of --
personnel policies which conform to current regulations. These policies are often in the
form of employee manuals, which all employees have.

Note that some people distinguish a difference between HRM (a major management
activity) and HRD (Human Resource Development, a profession). Those people might
include HRM in HRD, explaining that HRD includes the broader range of activities to
develop personnel inside of organizations, including, eg, career development, training,
organization development, etc.

There is a long-standing argument about where HR-related functions should be organized

into large organizations, eg, "should HR be in the Organization Development department or
the other way around?"

The HRM function and HRD profession have undergone tremendous change over the past
20-30 years. Many years ago, large organizations looked to the "Personnel Department,"
mostly to manage the paperwork around hiring and paying people. More recently,
organizations consider the "HR Department" as playing a major role in staffing, training and
helping to manage people so that people and the organization are performing at maximum
capability in a highly fulfilling manner.

Rising Interest of HRM

Today, environment is changing rapidly. Changes have made the role of HRM more crucial in
changing environment. To achieve organizational goal requires committed and competent
manpower. They are the outcome of effective and efficient human resource management.
Since 1990s, the interest in human resource management has been rising. Specially, the
following factors responsible for the rising interest in HRM

1. Work Force Diversity: Diversity means different. In the context of HRM, different
regards in the sense of sex, color, age, culture, religion and language etc. today
composition of work force has been quite diversified. The involvement of people from

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 different culture, need, race, religion, sex, age are increasing day by day. All over
Europe, western countries and including Nepal, environment of women in organization
are sharply increasing. Different people have different need and interest. They have
different perception, experience learning habits, personality etc. to understand the need
of different people, to manage different people, to develop the feeling of team work,
HRM plays the vital role through its activities. It is a most significant task done by HRM
which other management cannot perform.

2. Technological change: Technology is changing rapidly. With scientific movement, new

technologies were developed. Human resource in organization need to require new
competencies to cope with the rapid technology change, which helps in increasing
productivity. To increase productivity, an efficient utilization of technology skillful
manpower is required. The need is growing for computer and information technologies
are considered as friendly human resources. This all necessities have increased the
interest in HRM.

3. Globalization:Theres no doubt that the world of work as we know, it is rapidly

changing. Even as little as fifteen years ago, the time was calmer than they are today.
Globalization has led to operations in several countries. The human resources in
organizations have also assumed global dimensions. Globalization of markets and
manufacturing has vastly increased international competition. In global competition,
some firms are doing well others are failed. HRM policies and practices need to be
adapted to varying socio cultural forces to carryout hot country operation. This has led to
rising interest in HRM.

4. Increasing competitions:Today most of organizations are facing both internal and

external competition. As part of an organization then, HRM must be prepared to deal
with the effects of the changing world of work. For them, this means understanding the
implications of globalization, technological changes, work force diversity, changing skill
requirement continuous improvement initiatives, the contingent work force, decentralized
work sites, and employee involvement.

5. Changes in nature of works: Technological and globalization trend has changed the
nature of jobs and work. Technological changes including fax machine, internet, and
personal computers have allowed companies to reallocate operations to location with
lower wage.

6. Others:There are other changes also shaping human resource management. Many
laws are passed to limit managers action and to protect the interest of workforce. Equal
employment opportunity, mandated health benefit, union management relation law etc.
manager has to deal frequently with the help of HRM. Due to this, the interest of almost
all managers is increasing in HRM.

Organizational Outcomes of HRM System

The organizational outcome is measured by focusing on client satisfaction. Clients were asked
about their satisfaction with the treatment they received. This indicator consists of five items. A
sample item is: Do the caregivers have enough time for you? (four-point Likert, never to

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always). We must note that the Association of Client Quality only provides aggregated scales,
partly because of privacy issues. Thus, the reliability statistics and ICC cannot be computed.
However, the robustness of the CQi - which is most often analyzed at the organizational level -
shows that aggregation seems appropriate

Productivity : Increasing productivity is one of the most critical goals in business.

Unfortunately, its an activity seldom accepted by HR professionals as a legitimate mandate.
While most HR professionals acknowledge that their job entails establishing policy,
procedures, and programs governing people management, few attempt to connect such
elements to increasing employee output (volume, speed, and quality) per each dollar spent
on labor costs (or as an easier to measure alternative, revenue per employee).
Bonus programs are typically enacted that keep total compensation in line with market
trends, regardless of the value of work warranting incentive comp. Training tools are often
secured via the lowest-cost provider method with minimal consideration given to which
provider would be most effective. Recruiting practices too are more often managed with the
primary goal of minimizing cost, not enabling business capability/capacity. Regardless of the
function you look at, in the typical organization, HR is more concerned with executing
transactions instead of delivering productivity solutions.

Quality : variable items that would form a research construct of quality working climate
involving the employee involvement and commitment elements. Therefore, the scope of
discussion will cover literature review related to employee involvement, employee
commitment, and other perspectives of quality HRM in TQM implementation. Most of the
literature selected is on the service organization context, with a sample of some
manufacturing and mixed (service and manufacturing) organizations also included.
Employee commitment to organizational initiatives is always important, as they are the
people who are going to perform the quality mission in daily operations. They are also the
front-liners who are directly interacting with customers. Customers evaluation and
perception to determine whether they are satisfied with the service provided or not would be
the main indicators of quality and excellent performance.

Service
Efficiencies
Customer Satisfaction

Changing role of HR Managers

Policy Initiation # Role of Exporting Job
Advisory Role # Role of Charismatic Leader
Representative Role # Strategic Role
Decision-making Role # Staff Specialist Role
Mediator Role # Co-Ordinating Role
Leadership Role
Welfare Role
Research Role

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Or
Business/strategicPartner: In todays business organizations, to guarantee their viability and
ability to contribute, HR managers need to think of themselves as strategic partners. In this
role, the HR person contributes to the development of and the accomplishment of the
business organization-wide business plan and objectives. The tactical HR representative is
deeply knowledgeable about the design of work systems in which people succeed and
contribute. This strategic partnership impacts HR services such as the design of work
positions; hiring; reward, recognition and strategic pay; performance development and
appraisal systems; career and succession planning; and employee development.

ChangeAgent: The HR professional contributes to the business organization by constantly

assessing the effectiveness of the HR function. He also sponsors change in other
departments and in work practices. To promote the overall success of his business
organization, the champions the identification of the organizational mission, vision, values,
goals and action plans. Finally, he helps determine the measures that will tell his business
organization how well it is succeeding in all of this

Administrative Expert:
Employee Advocate: The HR professional helps establish the organizational culture and
climate in which people have the competency, concern and commitment to serve customers
well. In this role, the HR manager provides employee development opportunities, employee
assistance programs, gain sharing and profit-sharing strategies, business organization
development interventions, due process approaches to problem solving and regularly
scheduled communication opportunities.

HR Challenges
1. Environmental Challenges
2. Organizational Challenges
3. Individual Challenges

Environmental Challenges:
The environmental challenges are related to the external forces that exist in the outside
environment of an organization & can influence the performance of the management of the
organization. These external forces are almost out of control of the management of the
organization. These can be regarded as threats to management & should be handled in a
proactive manner.
Following are the list of human resource management challenges that considered as the
environmental challenges.

1. Rapid Change
2. Work Force Diversity
3. Globalization
4. Legislation

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 5. Technology
6. Job & Family Roles
7. Lack of Skills

1. Rapid Change:
The world is changing at a faster rate because change is constant from several centuries. So
the management of the organizations should be quickly adaptive to the changing requirement of
the environment otherwise they become obsolete from the market. The human resource
management of an organization plays a basic role in response to the environmental change.
The HR department should adopt such policies that can avail the new opportunities of the
environment & keep the organization away from the newly emerging threats.
2. Work Force Diversity:
The changing environment provides both the opportunities & threats to the human resource
management of the organization. The HR manager should adopt such policies that can make
possible the diverse work force of employees. Although on one hand diversity creates big
problem but in the long run, the survival & performance of the organization is flourished.

3. Globalization:
One of the serious issue that todays organizations are facing is the issue of globalization. The
world is converting into global business and severe competition is started between domestic &
foreign companies. Such competition results in the laying off the effective workforce of the
organization. The HR department can play an important role in keeping the culture of the
organization as global & wider.

4. Legislation:
It is the old environmental challenge that is faced by organization since many decades. There
are certain labor laws that are declared by the government for the benefits of the working
employees. Some of these laws are disadvantageous to the interests of the organizations so it
is a one of the big challenges for the HRM to implement all those labor laws within the
organizations. If any of such law is violated, serious actions are taken by the relevant
government authority that may result into serious penalty for the management of the
organization.

5. Technology:
The technology is also growing with great speed especially in the field of computer &
telecommunication. New methods are emerging that quickly dominates the older ones & makes
them obsolete. Therefore the skills required by the employees also changes with the changing
technology & this would compels the worker to advance the skills three to four times throughout
their working lives. So there comes a burden on the HR department to constantly update the
skills & expertise of their employees.

6. Job & Family Roles:

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In recent years, dual-career families are increasing in which both the wife & husband work. This
creates a serious burden on the women that they have to give time to their families also. In
many organizations the policies of HR favors the employment of more than 10 years. The
working hours of the organizations are also strict and tight for the employees. Moreover, the
selection & training procedures are two tough and time consuming so most of the talented
women hesitate to join any organization which would result in the wastage of talent and
potential. Even working men also suffer from these employment policies because they do not
properly give time to their families. So the challenges for the HRM increases with this particular
issue & special favorable working policies are needed to be employed in all organizations.

7. Lack of Skills:
The service sector development is expanding due to many reasons like change in the tastes &
preference of customers, technological change, legal change etc. All of this affected the
structure and managing style of the business organizations. The skills required in the
employment of service sector is also advancing but the graduates of the technical colleges &
universities are groomed according to the latest requirements. Therefore most of the employees
lack the standard required skills to perform their duties and it becomes a big challenge for HRM
to properly train these new & old employees to become an efficient & effective workers.

Organizational Challenges:
The organizational challenges for the HRM are related to the factors that are located inside the
organization. Although these challenges are evolved as a byproduct of the environmental
challenges but these can be control by the management of the organization to much extent. The
proactive HR managers take notice of such challenges in advance and take corrective
measures before these would convert into serious issues. The human resource management
challenges within the organization include competitive position & flexibility, organizational
restructuring & issues of downsizing, the exercise of self managed teams, development of
suitable organizational culture etc.

When the workforce of an organization is effectively used in combination with other factor of
production, the opportunities of the environment are availed & the threats are eliminated. The
competitive position of the organization can be influenced by the policies of HR in the following
ways.
Controlling Costs
Improving Quality
Developing Distinctive Capabilities
Restructuring

1. Controlling Costs:
An organization can avail the competitive position by lowering its cost & strengthening its cash
flows. For this purpose, the labor cost of the organization is minimized through effective
compensation system that adopts innovative reward strategies for good performances. In this
way the favorable behaviors of the employees are rewarded so the organization would get the
ultimate advantage. Moreover the policies of compensation should keep the labor cost under

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control. The effective employees should be selected that keep with the organization for a longer
duration & proper training should also be provided to these employees. The HR department
should also restore the work of the employees along with the improvement in the health & safety
issue of working environment. All of these efforts would limit the cost of labor.

2. Improving Quality:
The quality improvement can lead an organization towards competitive advantage. The total
quality management programs are employed that improves all the processes within the
organization which would ultimately result in the improvement of the final product or service.

3. Developing Distinctive Capabilities:

Another method of gaining competitive advantage is to employ the people that have distinct
capabilities to develop extra ordinary competence in specific area.

4. Restructuring:
Another technique is the restructuring of the organization in which the methods of performing
different functions are altered positively. In case of HR department, the majority of functions are
still performed within the organization.
In some organizations the major functions of HR department are now transferred to the other
parties in the shape of outsourcing, shared service center etc. The sizes of HR department in
those organizations are shrinking because most of functions are performed by outsiders. But in
most of the organizations the HR manager performs all the relevant functions of HRM. The HR
department is now involved in the mission oriented & strategic activities.

Individual Challenges:
The decisions related to the specific individual employees are included in the individual
challenges for the HRM. The organizational issues are also affected by the fact that how
employees are treated within the organizations. The problems related to the individual level are
as follow.

1. Productivity
2. Empowerment
3. Brain drain
4. Ethics & social responsibility
5. Job insecurity
6. Matching people & organization
1. Productivity:
Productivity is defined as the measure of the value that an employee can add to the final
product or service of the organization. The increased output per employee is reflected as
increased productivity. Ability & motivation are two important factors that affect the employee
productivity. The ability of the employee can be improved by the hiring & replacement along with
the proper training & career development. On the other high quality of work life serves as
accelerator to the motivational factor of the employees.

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2. Empowerment:
In the modern days many organizations make changes in such a way that their individual
employees exert more control on their work as compared to their superiors. This individual
control of employees is called empowerment which helps the employees to work with
enthusiasm, commitment & learn new skills because they are more make normal decisions
about their work by themselves & hence enjoy their work.

3. Brain Drain:
One of the challenges for HRM is the detachment of the key potential employees from the
organization which link with the competitors for higher remunerations etc. In such cases the
organization loses its intellectual property & in many situations the leaving employees at the
higher levels also take with them the potential lower level employees. This brain drainage is
becoming serious issue in the high-Tec companies.
4. Ethics & Social Responsibility:
Under this challenge, the organizations make an effort to benefit some portion of the society.
This is now considered to the social responsibility of the organization to show favorable
behavior towards the society. The ethics serves as the basic principle for the socially behavior
of the organizations. Within organizations, the HR departments develop a code of conduct &
principles of code of ethics that serve as the guidance for the personal behavior of the
employees of the organizations. The employees also expect from the management to show
favorable decisions.

5. Job Insecurity:
In the recent years, restructuring & downsizing develops the sense of insecurity of job within the
employees of the organizations. Now many employees only desire to get a steady job rather
than a job with promotional future. Even most successful organizations lay off its employees in
the period of cut throat competition. The stock market also shows favorable results when layoffs
has been made. All these things create a fear among employees about the insecurity of their
jobs which would hinder their effective performance.
6. Matching People & Organizations:
It has been proved from the research that the HR department contributes to the profitability of
the organization when it makes such policies of employee selection in which those employees
are selected & retained that best suits the culture of the organization & its objectives. For
example it is proved from research that those employees would become beneficial for the high-
Tech companies that can work in risky, uncertain environment having low pay. In short it is an
important challenge for the HR department to hire and keep such employees whose abilities &
strengths would match the requirements & circumstances of the organization.

FEATURES OF HUMAN RESOURCE MANAGEMENT (HRM)

HRM involves management functions like planning, organizing, directing and controlling
It involves procurement, development, maintenance of human resource
It helps to achieve individual, organizational and social objectives

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 HRM is a mighty disciplinary subject. It includes the study of management psychology
communication, economics and sociology.
It involves team spirit and team work.

HUMAN RESOURCE MANAGEMENT GOAL

The goal of human resource management is to help an organization to meet strategic
goals by attracting, and maintaining employees and also to manage them effectively. The
basic premise of the academic theory of HRM is that humans are not machines, therefore
we need to have an interdisciplinary examination of people in the workplace. Fields such as
psychology, industrial engineering, industrial and organizational psychology, industrial
relations, sociology, and critical theories: postmodernism, post-structuralism play a major
role. Many colleges and universities offer bachelor and master degrees in Human
Resources Management.
One widely used scheme to describe the role of HRM, developed by Dave Ulrich, defines 4
fields for the HRM function.

1) Strategic business partner

2) Change agent
3) Employee champion
4) Administration

However, many HR functions these days struggle to get beyond the roles of administration
and employee champion, and are seen rather as reactive than strategically proactive
partners for the top management. In addition, HR organizations also have the difficulty in
proving how their activities and processes add value to the company. Only in the recent
years HR scholars and HR professionals are focusing to develop models that can measure
if HR adds value.

SCOPE OF HUMAN RESOURCE MANAGEMENT (HRM)

The scope of HRM refers to all the activities that come under the banner of HRM. These
activities are as follows
1. Human resources planning:-
Human resource planning or HRP refers to a process by which the company to identify the
number of jobs vacant, whether the company has excess staff or shortage of staff and to
deal with this excess or shortage.
2. Job analysis design:-
Another important area of HRM is job analysis. Job analysis gives a detailed explanation
about each and every job in the company. Based on this job analysis the company
prepares advertisements.
3. Recruitment and selection:-
Based on information collected from job analysis the company prepares advertisements
and publishes them in the news papers. This is recruitment. A number of applications are
received after the advertisement is published, interviews are conducted and the right
employee is selected thus recruitment and selection are yet another important area of
HRM.
4. Orientation and induction:-
Once the employees have been selected an induction or orientation program is conducted.
This is another important area of HRM. The employees are informed about the background

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 of the company, explain about the organizational culture and values and work ethics and
introduce to the other employees.
5. Training and development:-
Every employee goes under training program which helps him to put up a better
performance on the job. Training program is also conducted for existing staff that have a lot
of experience. This is called refresher training. Training and development is one area were
the company spends a huge amount.
6. Performance appraisal:-
Once the employee has put in around 1 year of service, performance appraisal is
conducted that is the HR department checks the performance of the employee. Based on
these appraisal future promotions, incentives, increments in salary are decided.
7. Compensation planning and remuneration:-
There are various rules regarding compensation and other benefits. It is the job of the HR
department to look into remuneration and compensation planning.
8. Motivation, welfare, health and safety:
Motivation becomes important to sustain the number of employees in the company. It is the
job of the HR department to look into the different methods of motivation. Apart from this
certain health and safety regulations have to be followed for the benefits of the employees.
This is also handled by the HR department.
9. Industrial relations:-
Another important area of HRM is maintaining co-ordinal relations with the union members.
This will help the organization to prevent strikes lockouts and ensure smooth working in the
company.

SIGNIFICANCE / IMPORTANCE / NEED OF HRM

HRM becomes significant for business organization due to the following reasons.
1. Objective
HRM helps a company to achieve its objective from time to time by creating a positive
attitude among workers. Reducing wastage and making maximum use of resources etc.
2. Facilitates professional growth
Due to proper HR policies employees are trained well and this makes them ready for future
promotions. Their talent can be utilized not only in the company in which they are currently
working but also in other companies which the employees may join in the future.
3. Better relations between union and management
Healthy HRM practices can help the organization to maintain co-ordinal relationship with
the unions. Union members start realizing that the company is also interested in the
workers and will not go against them therefore chances of going on strike are greatly
reduced.

4. Helps an individual to work in a team/group

Effective HR practices teach individuals team work and adjustment. The individuals are
now very comfortable while working in team thus team work improves.

5. Identifies person for the future

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 Since employees are constantly trained, they are ready to meet the job requirements. The
company is also able to identify potential employees who can be promoted in the future for
the top level jobs. Thus one of the advantages of HRM is preparing people for the future.

6. Allocating the jobs to the right person

If proper recruitment and selection methods are followed, the company will be able to select
the right people for the right job. When this happens the number of people leaving the job
will reduce as the will be satisfied with their job leading to decrease in labour turnover.
7. Improves the economy
Effective HR practices lead to higher profits and better performance by companies due to
this the company achieves a chance to enter into new business and start new ventured
thus industrial development increases and the economy improves.

Evolution/Development of the Concept of HRM

The early part of the century saw a concern for improved efficiency through careful design of
work. During the middle part of the century emphasis shifted to the availability of managerial
personnel and employees productivity. Recent decades have focused on the demand for
technical personnel responses to new legislation and governmental regulations increased
concern for the quality of working life, total quality management and a renewed emphasis on
productivity. Let us look into these trends more closely by examining the transformation of
personnel function from one stage to another in chronological sequences.

Evolution of the Personnel Function

Concept: What is it all about?

The commodity concept:

Labor was regarded as a commodity to be bought and sold. Wages were based on demand and
supply. Government did very little to protect workers.

The Factor of Production concept:

Labor is like any other factor of production, viz., money materials land etc. Workers are like
machine tools.

The Good will concept:

Welfare measures like safety, first aid, lunch room, rest room will have a positive impact on
workers productivity.

The Paternalistic Concept / Paternalism

Management must assume a fatherly and protective attitude towards employees. Paternalism
does not mean merely providing benefits but it means satisfying various needs of the
employees as parents meet the requirements of the children.

The Humanitarian concept:

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To improve productivity, physical, social and psychological needs of workers must be met. As
Mayo and others stated, money is less a factor in determining output than group standards,
group incentives and security. The organization is a social system that has both economic and
social dimensions.

The Human Resources concept:

Employees are the most valuable assets of an organization. There should be a conscious effort
to realize organizational goals by satisfying needs and aspirations of employees.

The Emerging concept:

Employees should be accepted as partners in the progress of a company. They should have a
feeling that the organization is their own. To this end managers must offer better quality of
working life and offer opportunities to people to exploit their potential fully. The focus should be
on Human Resource Development.

Strategic Human Resource Management Approach

With increase in technology and knowledge base industries and as a result of global competition,
Human Resource Management is assuming more critical role today . Its major accomplishment is
aligning individual goals and objectives with corporate goals and objectives. Strategic HRM focuses on
actions that differentiate the organization from its competitors and aims to make long term impact on the
success of organization.

EVOLUTION OF HUMAN RESOURE MANAGEMENT (HRM)

The evolution of HRM can be traced back to Kautilya Artha Shastra where he recommends
that government must take active interest in public and private enterprise. He says that
government must provide a proper procedure for regulating employee and employee relation
In the medieval times there were examples of kings like Allaudin Khilji who regulated the
market and charged fixed prices and provided fixed salaries to their people. This was done to
fight inflation and provide a decent standard of living

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 During the pre independence period of 1920 the trade union emerged. Many authors who
have given the history of HRM say that HRM started because of trade union and the First World
War.
The Royal commission in 1931 recommended the appointment of a labour welfare
officer to look into the grievances of workers. The factory act of 1942 made it compulsory to
appoint a labour welfare officer if the factory had 500 or more than 500 workers.
The international institute of personnel management and national institute of labour
management were set up to look into problems faced by workers to provide solutions to
them. The Second World War created awareness regarding workers rights and 1940s to
1960s saw the introduction of new technology to help workers.
The 1960s extended the scope of human resource beyond welfare. Now it was a
combination of welfare, industrial relation, administration together it was called personnel
management.
With the second 5 year plan, heavy industries started and professional management
became important. In the 70s the focus was on efficiency of labour wile in the 80s the
focus was on new technology, making it necessary for new rules and regulations. In the
90s the emphasis was on human values and development of people and with liberalization
and changing type of working people became more and more important there by leading to
HRM which is an advancement of personnel management.

Evolution of HRM
1) Industrial Revolution
Period before industrial revolution The society was primarily an agriculture economy
with limited production. Number of specialized crafts was limited and was usually carried out
within a village or community with apprentices assisting the master craftsmen.
Communication channel were limited.
Period of industrial revolution (1750 to 1850) Industrial revolution marked the
conversion of economy from agriculture based to industry based. Modernization and
increased means if communication gave way to industrial setup. A department was set up
to look into workers wages, welfare and other related issues. This led to emergence of
personnel management with the major task as
Workers wages and salaries
Workers record maintenance
Workers housing facilities and health care
An important event in industrial revolution was growth of Labour Union (1790) The works
working in the industries or factories were subjected to long working hours and very less
wages. With growing unrest , workers across the world started protest and this led to the
establishment of Labour unions. To deal with labour issues at one end and management at
the other Personnel Management department had to be capable of politics and diplomacy,
thus the industrial relation department emerged.

Post Industrial revolution The term Human resource Management saw a major
evolution after 1850. Various studies were released and many experiments were conducted
during this period which gave HRM altogether a new meaning and importance.
A brief overview of major theories release during this period is presented below
Frederick W. Taylor gave principles of scientific management (1857 o 1911) led to the
evolution of scientific human resource management approach which was involved in
Workers training
Maintaining wage uniformity
Focus on attaining better productivity.

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 Hawthorne studies, conducted by Elton Mayo & Fritz Roethlisberger (1927 to 1940).
Observations and findings of Hawthrone experiment shifted the focus of Human resource
from increasing workers productivity to increasing workers efficiency through greater work
satisfaction.
Douglas McGregor Theory X and Theory Y (1960) and Abraham Maslows Hierarchy of
needs ( 1954) These studies and observations led to the transition from the administrative
and passive Personnel Management approach to a more dynamic Human Resource
Management approach which considered workers as a valuable resource.
As a result of these principles and studies , Human resource management became
increasingly line management function , linked to core business operations. Some of the
major activities of HR department are listed as-
1. Recruitment and selection of skilled workforce.
2. Motivation and employee benefits
3. Training and development of workforce
4. Performance related salaries and appraisals.

2) Trade Unionism
The conditions of workers in the aftermath of factory system as an outcome of industrial
revolution were very pathetic. The First World War further worsened their conditions. This
was the period when state intervention to protect the worker s interest was felt necessary.
The basic philosophy underlying trade unionism was to safeguard the workers interest and to
sort out of their problems such as use of child labour, long hours of work and poor working
conditions. These unions used strikes, slowdowns walkouts picketing, boycotts, and
sabotage as weapons for the acceptance of their problems.
These activities of trade unions gave rises to personnel practices such as collective
bargaining, grievance handling system, arbitration, disciplinary practices, employee benefit
programmes, installation of rational and defensible wage structures.

3) Social responsibility era

In the starting decade of 20th century, some factory owners/employers started showing
humanistic approach towards the workers. Robert Owen, a British industrialist towards
workers. He viewed that the principal social and economic environments influence the
physical mental and psychological development of workers. Therefore, in order to improve
the productivity, it is necessary to improve, conditions of employees by removing them from
an adverse environment or by changing the environment with the provisions of more
satisfactory living and working conditions.
The philosophy underlying in Owens paternistic approach was that worker is just like a child
and owner is just like a father. Therefore, the owner should take care of a worker just like a
father takes care of his child. Accordingly, Owen himself implemented this philosophy in his
cotton mill at Scotland by introducing facilities such as shower baths and toilets in the factory
premises, model villages for workers, raising minimum wage of employment of child labour to
11 years and reducing working hours from 12 to 10 hours

4) Scientific Management era

The concept of scientific management was introduced by Fredrick Winslow Taylor in the
USA early in the 20th century as an alternative to the prevailing system of management by
initiative and incentive.
Based on his shop floor job experience, Taylor developed four principles of scientific
management:

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 1. Development and use of scientific methods in setting work standards, determining a fair
days work, and best way of doing work.
2. Scientific selection and placement of workers best suited to perform the various tasks and
provision of their training and development for maximum efficiency.
3. Clear cut division of work and responsibility between management and workers.
4. Harmonious relations and close cooperation with workers to secure performance of work in
accordance with the planned jobs and tasks.
In his scientific theory, Taylor viewed man/worker as one driven by fear of hunger and search
for profit. Accordingly, if economic reward is tied up with the efforts put on the job, the worker
will respond with his maximum physical capability. Taylors study is limited to the physical
characteristics of the human body as it responds to routine and to clearly defined jobs.
He visualized man functioning as an appendage to the industrial machine. Realizing that
with physical efforts, human body can get tired and thus, can affect workers performance
both in quantity and quality, Taylor developed several techniques to introduce his scientific
ideas in management.

The following are the important techniques developed by him:

1. Time study to analyze and measure the time taken in doing the various elements of a job
and to standardize the operations of a job.
2. Motion study involving close observation of the movements required to perform a job with
a view to eliminate wasteful motions and decide on the best way of doing the job.
3. Standardization of tools, equipments and machinery and working conditions.
4. Incentive wage plan with differential piece rate of wages for efficient and inefficient
workmen.
The main contribution of Taylor to management was it led to professionalization of
management and human engineering. However, some critics criticize his views on the
ground that its focus was more on technology and not on human factor in industry.

5) Human Relation Era

By 1920, it was felt that earlier approaches to human resource management were incomplete
as these did not recognize workers as human beings having their feelings, attitudes and
needs. It was between 1925 and 1935; many experts expressed their opinions towards the
human aspects of organisational activities.
A psychologist namely Hugo Munsterberg in his book Psychology and Industrial Efficiency
suggested the use of psychology in selection, placement, testing and training of employees
in an organisation. Elton Mayo and his associates conducted a series of experiments from
1924 to 1932 at the Hawthorne plant of the Western Electric company in the USA.

The main findings of the Hawthorne Experiments were as follows:

1. Physical environment at the work place do not have any material impact on the efficiency
of work.
2. Favourable attitudes of workers and work-team towards their work were more important
factors determining efficiency.
3. Fulfillment of the workers social and psychological needs had a beneficial impact on the
morale and efficiency of workmen.

15
 4. Employee groups based on social interactions and common interests exercised a strong
influence on workers performance.
5. Workers cannot be motivated solely by economic rewards. More important motivators are
job security, recognition, right to express their opinion on matters related to them.
Based on these findings, the researchers developed a human relations approach to HRM. It
was based on the view that the modern organisation is a social system in which the social
environment and inter-personal relations govern the behaviour of employees.
The relationship between the superiors and subordinates should relate to the social and
psychological satisfaction of the employees. In ultimate sense, the objective of human
relations approach was to make employees productive and it was realized that employees
satisfaction is the best means of making the employee productive.

6) Behavioural Science Era

We have just seen that human relations era assumes that a happy worker is a productive
worker. As a corollary to this, the behavioural science era assumes human behavior as a
means to achieve efficiency in performance. Behavioural approach to HRM is based on the
findings of intensive research carried out by behavioural scientists belonging to the
disciplines of sociology, social psychology, anthropology and management experts.
The major contributions made by the behavioral scientists are in the areas of motivation,
leadership, communication, organisational change and development, organisational culture,
and individual and group dynamics On the whole, behavioural science approach of HRM was
concerned with the social and psychological aspects of human behaviour in organisations.

Some of the important elements of the behavioural approach of HRM are outlined
below:
1. Individual behaviour is linked with the group behaviour. For example, a person be inclined
to resist to change has behaviour as an individual. But, he/ she will readily do so if the
group to which he/ she belongs, decides to change its behaviour.
2. Informal leadership rather than the formal leadership of manager is more effective in
influencing people to achieve standards of performance. From this viewpoint, democratic
leadership style of the manager is more acceptable to the subordinates and hence, more
effective.
3. By nature, people do not dislike work. Most people enjoy work and are motivated by self-
control and self development. In fact, job itself is a source of motivation and satisfaction to
employee.
4. Expanding subordinate influence, self- control and self- direction can improve operating
efficiency.

7) System Approach Era

A system may be defined as a set of interdependent parts forming an organised unit or entity.
The system is defined as an organised and complex whole: an assemblage or combination
of things or parts forming a complex unitary whole. The parts, also known as subsystems,
interact with each other and are subject to change. These sub-systems are inter-related and
interdependent.

Any working organisation usually consists of the following three broad sub-systems:

16
 1. Technical Sub-system, i.e., formal relationships among the members of an organisation.
2. Social Sub- system, i.e., social satisfaction to the members through informal group
relations.
3. Power Sub-system, i.e., exercises of power or influence by individual or group.
The interaction of the various sub-system forms the total system. There is also interaction
between total system/sub-systems and environment. Environment itself may influence or be
influenced by the system or sub-system.

The system approach is characterized by the following features:

1. A system is a group of inter-related elements which are separate entities/units.
2. All the elements are inter-related in an orderly manner.
3. There is the need for proper and timely communication to facilitate interaction between the
elements.
4. The interaction between the elements should lead to achieve some common goal.
Let us also see how the system works. Activities relating to procuring and transforming inputs
into outputs are viewed as enterprise operations. Materials, information and energy that flow
into the organization are inputs and products and services offered by an organization are
outputs.
The organization through its operations transforms inputs into output. Men, money and
managers become the part of system. Sale of outputs provides energy called feedback to
repeat the system. Thus, the system goes on and on as shown in Figure 2.1.

At the heart of the systems approach lays a management Information System (MIS) and
communication network for collection, analysis, and flow of information to facilitate the
unctions of planning and control. Modem thinkers consider HRM as a system that integrates
activities with an objective to make the best use of resources which are always scarce.

8) Contingency Approach Era

Contingency refers to die immediate circumstances. Contingency approach believes that
there is no one way of managing that works best in all situations. According to this approach,
the best way to manage varies with the situation. Hence, this approach is also called
situational approach.
There may not be one universal way of managing in all situations. A particular approach may
yield fruitful results in one situation but may drastically fail in other situations. Therefore, it is
imperative for managers to analyse different situations and then use the best approach best

17
 suitable in that particular situation. This can be understood better by an example of the
recurrent problem of how to improve productivity.

The solution to this problem can be prescribed as follows:

Scientific Management Approach:

Prescribe work simplification and additional incentives.

Behavioural Approach:
Recommend job enrichment and democratic participation of employees in the decision-
making process.

Contingency Approach:
Offer a solution which is responsive to the characteristics of the total situation faced. The
above solutions may be suitable to different situations. As regards work simplification, it
would be ideal where there is a limited resource, unskilled labour and limited training
opportunities available.
Job enrichment would be ideal for that organisation where there are abundant skilled labour
forces. Thus, this clearly shows that management function depends upon given situations
present in an organisation. Managers are supposed to systematically diagnose a given situation
and then find out solutions to meet the situation.

In short, contingency approach of management and for that matter HRM emphasizes on
two points:
1. It focuses attention on situational factors that influence managerial decision.
2. It highlights the need for developing skills for managers in situational analysis.

UNIT 2:

Elements/ Components of HRM Environment

Environment literally means the surrounding external objects, influences or circumstances under
which someone or something exists. The environment of any organization is the aggregate of
all conditions, events and influences that surround and affect it. In simple words, environment
comprises all those forces which have their bearing on the functioning of various activities
including human resource activities. Environment scanning helps HR (Human Resource)
manager become proactive to the environment which is characterized by change and intense
competition.

1. Internal Environment:
These are the forces internal to an organisation. Internal forces have profound influence on HR
functions. The internal environment of HRM consists of unions, organizational culture and
conflict, professional bodies, organisational objectives, polices, etc. A brief mention of these
follows.
1.1 Unions:
Trade unions are formed to safeguard the interest of its members/workers. HR activities like
recruitment, selection, training, compensation, industrial relations and separations are carried
out in consultation with trade union leaders.

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1.2 Organisational Culture and Conflict:
As individuals have personality, organizations have cultures. Each organisation has its own
culture that distinguishes one organisation from another. Culture may be understood as sharing
of some core values or beliefs by the members of the organisation Value for time are the
culture of Reliance Industries Limited. The culture of Tata conglomerate is get the best people
and set them free.
HR practices need to be implemented that best fit the organisations culture. There is often
conflict between organizational culture and employees attitude. Conflict usually surfaces
because of dualities such as personal goal vs. organisational goal, discipline vs. autonomy,
rights vs. duties, etc. Such conflicts have their bearings on HR activities in an organisation.

1.3 Professional Bodies:

Like other professional bodies, the NIPM as the HR professional body regulates the functions of
HR practitioners in India. For this the NIPM in of ethics which the HR practitioners are expected
to declare their allegiance to the code (see Figure 2.2). Thus, professional bodies also influence
HR functions of an organization.

2. External Environment:
External environment includes forces like economic, political, technological, demographic etc.
these exert considerable influence on HRM. Each of these external forces is examined here.

2.1 Economic:
Economic forces include growth rate and strategy, industrial production, national and per capita
incomes, money and capital markets, competitions, industrial labour and globalisation. All these
forces have significant influence on wage and salary levels. Growing unemployment and
reservation in employment also affect the choice for recruitment and selection of employees in
organisations.

2.2 Political:
Political environment covers the impact of political institutions on HRM practices. For example,
democratic political system increases the expectations of workers for their well being.

The total political environment is composed of three institutions:

2.2.1. Legislature:
This is called Parliament at the central level and Assembly at the state level A plethora of labour
laws are enacted by the legislature to regulate working conditions and employment relations.

2.2.2. Executive:
It is the Government that implements the law. In other words, the legislature decides and the
executive acts.

2.2.3. Judiciary:
This is like a watchdog above the two. It ensures that both the legislature and the executive
work within the confines of the constitution and also in the overall interest of the people. These
affect, in one way or the other, all HR activities from planning to placement to training to
retention and maintenance.

2.3. Technological:
Technology is a systematic application of organised knowledge to practical tasks.

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Technological advances affect the HR functions in more than one way:

First; technology makes the job more intellectual or upgraded.

Second, it renders workers dislocated if they do not equip themselves to the job.
Third, job becomes challenging for the employees who cope with the requirements of
technology Fourth, technology reduces human interaction at the work place. Finally job-holders
become highly professionalized and knowledgeable in the job they perform.

2.4 Demographic:
Demographic variables include sex, age, literacy, mobility, etc. Modem work force is
characterized by literate, women and scheduled caste and scheduled tides workers. Now,
workers are called knowledge workers and the organisations wherein they work are called
knowledge organisations.
As such, the traditional line of distinction between manual and non-manual workers is getting
blurred. Employees are demanding parity in remuneration and responsibility among various
categories and levels of employees.

2.5 Labour Market:

Since organisations choose new employees from outside the organisation, the labour market is
viewed as an external market. The demand for and supply of labour in the labour market usually
influences the HR environment. The major players in the labour market from the supply side are
employment exchanges, recruitment agencies, consulting forms, educational campuses,,
proffered candidates, and rival firms. Those from the demand side are the organisations that
approach the market to recruit job aspirants in order to meet their labour requirements. The
workforce in the labour market of Nepal is usually classified into four categories: the self-
employed, wages or salary-earning employees, casual workers, and the unemployed.
The self-employed earn their income directly from their own business or trade. They
hardly have any contact with the labour market.
Salaried employees have a relatively stable employment and remain with the same
employers and in the same job for reasonably longer durations. Their contact with the
labour market is not routine.
Casual labourers are those who work on a day-to-day basis for daily wages. They
maintain an intimate contact with the labour market.
The unemployed are those who have no rewarding occupation at present. They too keep
a close contact with the labour market.
The trends in the labour market have a pro-found influence on the HR decisions relating to
recruitment, training and development, and compensation. In fact, it is imperative for HR
managers to scan the labour market conditions continuously and then to devise plans to exploit
such conditions to their advantages.

ETHICS IN HUMAN RESOURCE MANAGEMENT (HRM)

HRM can be understood in simple terms as employing people, developing their resources,
utilising, maintaining and compensating their services in tune with the job and organizational
requirements with the view to contribute to the goals of the organization, individuals and the
society.
OR

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HRM is the process of planning, organizing, directing and controlling human activities to achieve
the organizational goal and individual goals.

MEANING OF ETHICS
Ethics are those values, which has been imbibed within an individual on reinforced externally
that help him to distinguish between right and wrong and to act accordingly. There can be
several sources of ethics like religion, organizational culture, legal obligations etc.

1. Employment Issues:
HR professionals are likely to face maximum ethical dilemmas in the areas of hiring of
employees.

Major challenges in this area are:

a. Pressure to hire a friend or relative of a highly placed executive.
b. Faked credentials submitted by a job applicant.
c. Discovery that an employee who has been with the organisation for some time, is skilled and
has established a successful record, had lied about his educational credentials.
2. Cash and Incentive Plans:
Cash and incentive plans include issues like basic salaries, annual increments or incentives,
executive perquisites and long term incentive plans:

Basic Salaries:
HR managers have to justify a higher level of basic salaries or higher level of percentage
increase than the competitors to retain some employees. In some situations, where the increase
is larger than normal they have to elevate some positions to higher grades. Annual
increment/incentive Plans. This situation is particularly true in case of top management
executives. The fear of losing some outstanding executives, the HR managers is forced to give
higher incentives to them than what the individuals actually deserve.

Executive Perquisites:
In the name of executive perquisites, sometimes excesses are often committed, the ethical
burden of which falls on the HR managers. Sometimes the costs of these perquisites are out of
proportion to the value added. For example, the CEO of a loss making company buys a
Mercedes for his personal use or wants a swimming pool built at his residence.
Long term incentive Plans. Long term incentive plans are to be drawn by the HR managers in
consultation with the CEO and an external consultant. Ethical issues arise when the HR
manager is put to pressure to favour top executive interests over the interests of the other
employees and the investors.

3. Employees Discriminations:
A framework of laws and regulations has been evolved to avoid the practices of treatment of
employees on the basis of their caste, sex, religion, disability, age etc. No organisation can
openly practice any discriminatory policies, with regard to selection, training, development,

21
appraisal etc. A demanding ethical challenge arises when there is pressure on the HR manager
to protect the firm or an individual at the expense of someone belonging to the group which is
being discriminated against.

4. Performance Appraisal:
Ethics should be the basis of performance evaluation. Highly ethical performance appraisal
demands that there should be an honest assessment of the performance and steps should be
taken to improve the effectiveness of employees. However, HR managers, sometimes, face the
dilemma of assigning higher rates to employees who are not deserving them; based on some
unrelated factors eg. closeness to the top management. Some employees are, however, given
low rates, despite their excellent performance on the basis of factor like caste, religion or not
being loyal to the appraiser.

5. Privacy:
The private life of an employee which is not affecting his professional life should be free from
intrusive and unwarranted actions.

HR managers face three dilemmas in this aspect:

(i) The first dilemma relates to information technology. A firms need for information particularly
about employees while on job may be at odds with the employees privacy. Close circuit
cameras, tapping the phones, reading the computer files of employees etc. breach the privacy
of employees.
(ii) The second ethical dilemma relates to the AIDS testing. AIDS has become a public health
problem. HR managers are faced with two issues: Whether all the new employees should be
subject to AIDS test and what treatment should be melted out to an employee who is affected
with the disease. It is however generally understood that since AIDS cannot be contracted by
casual and normal workplace contract, employees with this illness should not be discriminated
against and they should be allowed to perform jobs for which they are qualified.

(iii) The third ethical dilemma relates to Whistle Blowing. Whistle blowing refers to a public
disclosure by former or current employees of any illegal, immoral orillegitimate practices
involving their employers. Generally, employees are not expected to speak against their
employers, because their first loyalty in towards the organisation for which they work. However,
if the situation is such that some act of the organisation can cause considerable harm to the
society, it may become obligatory to blow the Whistle. The HR manager is in the dilemma how
to solve this issue between the opponents and defenders of whistle blowing.

6. Safety and Health:

Industrial work is often hazardous to the safety and health of the employees. Legislations have
been created making it mandatory on the organisations and managers to compensate the
victims of occupational hazards. Ethical dilemmas of HR managers arise when the justice is
denied to the victims by the organisation.

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7. Restructuring and layoffs:
Restructuring of the organisations often result in layoffs and retrenchments. This is not
unethical, if it is conducted in an atmosphere of fairness and equity and with the interests of the
affected employees in mind. If the restructuring company requires closing of the plant, the
process by which the plant is chosen, how the news is to be communicated and the time frame
for completing the layoffs is ethically important.

Unit 3:

Job Design
It is believed that a well designed job motivates the employees for higher level of performance.
Poorly designed jobs often result in boredom and employee frustration, high turnover, reduced
motivation, low level of productivity and increase in operating cost. To avoid such negative
consequences, the jobs have to be designed systematically and scientifically.

Thus, job design is a systematic process of organizing work into the tasks required to perform a
specific job. It defines the contents and the way the tasks are combined to complete a job. Job
design integrates the tasks, function and relationship in order to achieve certain organizational
objectives. It is a logical sequence of job analysis which provides job-related data and skill
requirement of the incumbent. There are three important influences of job design, they are- work
flow analysis, business strategy and organizational structure.

Job design is a process through which job related data are revealed and the contents as well as
methods of performing different tasks are specified. It plays a key role in bringing organizational
productivity and employee motivation at work.

Methods/Technics/Approach of Job Design in HRM:

Job should be designed in such a way that job requirement and job specification should be
balanced. Organizations should conduct variety of jobs ranging from simple to complex. Job
should not be over loaded as well as under loaded. They need to balance the responsibility and
authority. Jobs need to be linked vertically and horizontally. There are different methods or
techniques available for job design. Some of them are classical approach, socio-technical
system approach and Behavioral approach. Here is a brief description about these methods:

1. Classical approach/Methods:
Classical approach of job design is initiated by F.W Taylor with his well known Scientific
Management Theory. He focused in the balance among work, motion and time at work. Taylor
focused to design the jobs in such a way that the productivity can be increased significantly.
Scientific management theory believes in excessive use of scientific tools, techniques and
materials. Main focus of this approach is to increase the organizational productivity by effective
planning for improving human efforts and skills. Classical approach of job design popularly uses
the following methods:

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i. Work Simplification:
This is the method in which complex job is first divided into number of small simple activities or
units. Similar activities need to be grouped into a work unit and each work unit is assigned to a
worker. Jobs and assigned to employees on the basis of specialization so that the productivity
can be improved through work specialization. Work units into a job are estimated to be
repetitive. This further increases the work efficiency. This method is appropriate to the lower
level employees.
Merits of Work Simplification:
Jobs are made more simple therefore no need to have training and development
expenses.
This method focuses on job specialization so that the productivity can be improved.
Less supervision can be sufficient to supervision employees.
Demerits of Work Simplification:
There will be high chance of over specialization of skills.
Repetitive job create boredom in workers.
Monotony at work may increase absenteeism, turnover and accidents.

ii. Job Rotation:

Job rotation is the most popular method of job design in which employees working in one
responsibility or job will be transferred to other job. This means, under this method, jobs are
created in such a way that employee should work all the responsibility one after another at
certain interval of time. But level or position of employees remains same. Main purpose of this
method is to remove monotony or boredom due to repetitive jobs of employees. This methods
provides the opportunity to work in different jobs of similar job description at different working
station with different people. Employees can handle their job with the same skills, knowledge
and experience.
Merits of Job Rotation Method:
It reduces monotony and boredom among workers
It provides opportunity to work in different situations so that employees can enhance
their social relationship.
Employees can handle varieties of tasks without adding new knowledge, skills and
expertise.
It helps to fulfill the vacancies at different places through internal source.
It helps to handle employee grievances.
Demerits of Job Rotation method:
Tendency of seeking transfer because of personal reason can be increased.
Employees need to time to adjust in new environment which may interrupt regular
performance.
Orientation, socialization and training cost will be increased.

iii. Job enlargement:

Job enlargement is the process of expanding the job responsibilities within the same job. This
means, under this method, different tasks or activities having similar nature and characteristics
should be added to create new job. In another words, job enlargement is the horizontal
expansion of job. For example, an accountant responsible to collect cash can be assigned to
deposit cash in bank, preparing salary sheet, etc. as additional task.

24
Merits of Job enlargement method:
Additional taks motivate employees for better efforts:
It reduces monotony and boredom among workers.
It increases job satisfaction with extended scope of job.
It provides greater opportunity of personal growth.
It reduces operation cost by reducing employees.
Demerits of Job Enlargement method:
Training is essential for additional responsibility which increase the cost.
Already monotonous job will be more monotonous with additional tasks.
This is substituting one zero with the another zero - Herzberg. This means one more
boring job to another.
Additional task at same job without additional pay and benefits may reduce the
motivation of employees.
Additional task may extend the completion time.
There may be chance of shifting responsibility.

Socio-Technical System Approach:

Employer's motivation is the most important factor in organizational productivity. Various
researches have found that employee motivation is the function of socio-factor. There needs
guide them for the better result. In this ground, jobs can be designed to the employee's
individual needs and technical requirements i.e. according to individual needs and
organizational requirements. This approach thus, considers the social aspects and technical
system of the job. Peer supervisor relationship, need of group work and creation of supportive
environment are some key elements of socio-cultural approach of job design. Jobs are created
to deal with the situational demand of technical and social needs.
Merits of Socio-Technical system approach:
Jobs designed under this approach provide greater employee job satisfaction because of
fulfilling social needs of employees.
This method gives more emphasis in participation of employees. So, the overall
productivity of organization is expected to be increased.
Employees can relate their output and social benefits. This helps to increase the tenure
of employees.
Jobs create learning environment. So, employees will be more skillful.
Demerits of Socio-Technical system approach:
Jobs give more emphasis on employee needs rather than on organizational needs.
Most of operating level employees may not be efficient for the decision making. So,
decision made by employees may sometimes mislead the organizational objectives.
Employee union for sake of union only may influence overall planning of organization.

Behavioral Approach:
Effectiveness of jobs depends on the behavior of employees toward that job. Job itself should
be sufficient to motivate employees. So, the behavioral aspects of the employees should be
included while designing jobs. This approach of job design is called behavioral approach. This
means, behavioral approach of job design analyzes the considers some behavioral aspects of
employees like autonomy, variety, task identity, task significance, feedback mechanism, etc.
Behavioral approach of job design includes following popular method:

25
i. Job enrichment method:
Job enrichment is the method of job design in which some higher order responsibilities are
added in the job. This means, under this method, jobs are designed including task demanding
higher order skills, greater experience and better expertise. Job enrichment method integrates
the task or activities vertically. Therefore, this method can also be said as vertical expansion of
job. Specially, to those employees who desire opportunities of personal growth, jobs need to be
designed with enrichment method. Enriched jobs motivate employees by adding challenging
and interesting features in the job.
Enriched jobs provide not only the challenging jobs but greater authority to accomplish jobs.
With such practices, organization can prepare employees for the upper positions required to
fulfill in the future. Such jobs reduce monotony among employees.
Merits of Job enrichment method:
Employees with high ambition and seeking greater personal growth can satisfied and
motivated.
This will be beneficial for succession planning.
Absenteeism and turnover rate can be reduced.
Productivity can be easily improved.
Demerits of Job Enrichment method:
This method is not appropriate to the employees with low self esteem, confidence and
pessimistic employees.
This method is not suitable for complex job consisting of many production processes.
This is risky to assign higher order responsibilities to the employees without training.
Employees may reject the additional responsibilities because of resistivity toward
change.
Manager may be unwilling to delegate authority with responsibilities which creates
problems in decision making.
Decision made by lower level employees under enrichment may be risky.

ii. Autonomous team:

Autonomous work teams are the groups of self directed, self managed and self motivated
employees who work for inter related and interdependent works. Such groups set the standard
for output, set the working procedure, take actions, evaluate the outputs and take full
responsibility of outputs. They select the team members, prepare the team norms and values,
fix responsibility, plan and carryout the activities, evaluate the performance, and take corrective
actions if necessary.

Jobs can be designed for the autonomous team. Normally, if the nature of job demands to be
conducted in a group and employees are self motivated, this method becomes fruitful. In this
method, area of job performance is given to group in bulks; the group sets the group goal, fixes
responsibility to each member, sets the working procedure and schedule, conducts activities
and evaluates the outputs. Such jobs can be designed only to those employees who have
strong feeling of group goal, and are self motivated for higher level performance.

Merits of Autonomous team method:

26
 Team spirit can be developed.
With self motivated and self directed team members, management achieves goal with
less supervision.
Team productivity becomes greater than the individual productivity.
Employees become self responsible. So, administrative cost becomes low.
This method provides the opportunity for personal growth.
Reward is tied with team performance. So, all the team members perform for team.
Demerits of Autonomous team method:
This method is not suitable to the normal employees with no personal growth objectives.
Team conflict may reduce the productivity of team.
Dominating tendency of employees negatively affects on the team productivity.
In general, managers become reluctant to form team of employees in organization.
Independent jobs cannot be conducted in teams. So, this method can be applied only to
the interrelated and interdependent jobs.
Personal traits of employees play significant role to the group productivity where by the
method may not be suitable.
There can be the possibility of responsibility shift in case of mistake.
It is very difficult to find self motivated and self directed employees. Termination of one
employee can also affect the team performance significantly.

iii. Job Characteristics:

Job characteristics method considers three psychological aspects i.e. experienced
meaningfulness, experience determine the level of motivation, satisfaction and performance on
the job. Following characteristics are suggested to include in the job:
Skill variety:
Different talents and skills required to conduct different activities.
Task identity:
Identifiable work unit is supposed to do by applying different skills and talents.
Task significance:
Impact of job on work and lives of other employees.
Autonomy:
Degree of freedom, independence and discretion to the individual in planning and performing
job.
Feedback:
Clear and direct information to individual regarding job performance.

Merits of job Characteristics method:

This method gives focus to job characteristics. So, jobs become distinct from one
another.
Feedback system provides information regarding job performance. This helps to improve
performance timely.
Autonomy for planning and performing the job motivates employees.
Clearly distinguishable jobs do not create conflict in role.
Demerits of job characteristics method:
Autonomy of planning and conducting jobs may create disciplinary problems.
Job cannot be made clear with clearly distinguishable job characteristics only.
Redesigning the job time to time may demotivate the employees.

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iv. Modified work schedule method:
Modified work schedule method is the one in which work schedule, timing, shift, or routine of the
work is rescheduled as per the convenience or demand of workers. Normally, the jobs which
need to be conducted in different shifts in regular basis can be designed under this method.
Shorter work week, flex time, job sharing, home work, etc. are common methods of job design
under this method. Some of them are discussed briefly as under:
Shorter work week:
In this method, number of working days in a week can be reduced. But total working hours
remain same. For example, job of an employee working 40 hours in 5 days a week working 8
hours a day can be rescheduled as a 40 hours in 4 days working 10 hours a day. This helps to
reduce administrative cost as well as one day release to the worker.
Flex time:
In this method, different working shifts are prepared and employees are given option to choose
to work in their convenient time shift. Hotels, hospitals, telecommunication office, etc. need to
operate 24 hours a day. In such organizations work shifts are prepared like morning shift, day
shift and night shifts having 8 hours in each shift. Employees are given freedom to chose their
convenient shift to work.
Job sharing:
In this method, a particular full time job is shared between two or more part time employees. Full
work or job is here, divided into number of jobs.
Home work:
In this method, employees are not required to come to the organization or work place for
accomplishing their duty. They can complete their tasks at their home or any convenient place
as well. Typing writing, painting, etc. jobs can be done in this way. Nowadays, this method is
being popular for tele center jobs. Employees get reward or remuneration on the basis of the
volume or unit of work done by them.
Merits of modified work schedule method:
Employees can work at their convenient time and place. So, this method gives full
employee motivation.
Time and space can be utilized at maximum limit. So, there will be no space and time
limitation for work.
Employee can give time for their personal work. So, they will be more productive.
Non-human resources can be utilized at the maximum extent. So, organization can
attain maximum profitability with less resource.
Demerits of modified work schedule method:
Control and supervision becomes less effective.
In case of mistake or problem, there may be chance of shifting the responsibility.
All the employees try to work in their convenient time so there may be problem of getting
job done at regular basis.
Job sharing has low degree of job accountability.

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Human Resource Planning
Organizations typically plan their future needs for supplies, equipment, building capacity, and
financing. Organizations must also plan to ensure that their human resource needs are satisfied.
Human resource planning involves identifying staffing needs, forecasting available personnel,
and determining what additions or replacements are required to maintain a staff of the desired
quantity and quality to achieve the organizations goals. The human resource planning function
involves at least three different elements: job analysis, forecasting demand and supply, and
legal restraints.

Concept and Meaning Of Human Resource Planning

Human resource planning is one of the crucial aspects of human resource management
because it helps to ensure the needed manpower for organizational goal. Due to the
globalization movement, the competition to provide quality and low cost products has been
increasing day by day. In this situation, the HR department has to plan in order to provide the
quality manpower to compete in the market. The supply of manpower must be sufficient to
ensure the healthy operation of the organization. Otherwise, the stated goals and objectives
cannot be accomplished on time.
Human resource planning may be defined as a process of predetermining future human
resources needs and course of action needed to satisfy those needs to achieve organizational
goals. It ensures that organization has right number and kind of people, at right place, and at
right time capable of performing well in the organization. Human resource planning is a
continuous process rather than a one shot affair. It tries to keep the organization supplied with
required and capable people when they are demanded.
Moreover, human resource planning is a process of knowing that what kind of people should be
recruited to ensure the quality performance of the organization. It tries to ensure that the
required competency is maintain in line with organizational mission, vision and strategic
objectives. It also determines and organization's human resource needs.It identifies what is to
be done to ensure the availability of human resources needed to achieve stated goals and
objectives within the given constraints
Thus, human resource planning (HRP) is a complex and continuous process which helps
determine the manpower requirement of the organization. It helps to translate the organization's
objectives and plans into the number of workers needed to meet the objectives. Hence, it claims
at:
* Balancing demand and supply of workers
* Controlling cost of human labor
* Formulating policies on transfer, succession, relocation of manpower
* Ensuring right kind of people at the right time and right place.

Human Resource Planning Approaches

HR planning is a mechanism created to forecast the required human resource to perform a
specific task. It also assesses the skill requirement of employees for each job. It is a complex
task which estimates the future demand and supply position of HR in the organization. Hence, it
gives a picture of infinite future in advance in terms of human resource requirement for the
company. Here, the approaches to HR planning are as follows:

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1. Quantitative Approach
It is also known as top down approach of HR planning under which top level make and efforts to
prepare the draft of HR planning. It is a management-driven approach under which the HR
planning is regarded as a number's game. It is based on the analysis of Human Resource
Management Information System and HR Inventory Level. On the basis of information provided
by HRIS, the demand of manpower is forecasted using different different quantitative tools and
techniques such as trend analysis, mathematical models, economic models, market analysis,
and so on. The focus of this approach is to forecast human resource surplus and shortages in
an organization. In this approach major role is played by top management.

2. Qualitative Approach
This approach is also known as bottom up approach of HR planning under which the
subordinates make an effort to prepare the draft of HR planning.Hence, it is also called sub-
ordinate-driven approach of HR planning. It focuses om individual employee concerns. It is
concerned with matching organizational needs with employee needs. Moreover, it focuses on
employee's training, development and creativity. Similarly, compensation, incentives, employee
safety, welfare, motivation and promotion etc. are the primary concerns of this approach. In this
approach, major role is played by lower level employees.

3. Mixed Approach
This is called mixed approach because it combines both top-down and bottom-up approaches of
HR planning. In fact, the effort is made to balance the antagonism between employees and the
management. Hence, it tends to produce the best result that ever produced by either of the
methods. Moreover, it is also regarded as an Management By Objective(MBO) approach of HR
planning. There is a equal participation of each level of employees of the organization.

Human Resource Planning Process Or Steps Of HR Planning

Human resource planning is a process through which the company anticipates future business
and environmental forces. Human resources planning assess the manpower requirement for
future period of time. It attempts to provide sufficient manpower required to perform
organizational activities. HR planning is a continuous process which starts with identification of
HR objectives, move through analysis of manpower resources and ends at appraisal of HR
planning. Following are the major steps involved in human resource planning:

1. Assessing Human Resources

The assessment of HR begins with environmental analysis, under which the external (PEST)
and internal (objectives, resources and structure) are analyzed to assess the currently available
HR inventory level. After the analysis of external and internal forces of the organization, it will be
easier for HR manager to find out the internal strengths as well as weakness of the organization
in one hand and opportunities and threats on the other. Moreover, it includes an inventory of the
workers and skills already available within the organization and a comprehensive job analysis.

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2. Demand Forecasting
HR forecasting is the process of estimating demand for and supply of HR in an organization.
Demand forecasting is a process of determining future needs for HR in terms of quantity and
quality. It is done to meet the future personnel requirements of the organization to achieve the
desired level of output. Future human resource need can be estimated with the help of the
organization's current human resource situation and analysis of organizational plans an
procedures. It will be necessary to perform a year-by-year analysis for every significant level
and type.

3. Supply Forecasting
Supply is another side of human resource assessment. It is concerned with the estimation of
supply of manpower given the analysis of current resource and future availability of human
resource in the organization. It estimates the future sources of HR that are likely to be available
from within an outside the organization. Internal source includes promotion, transfer, job
enlargement and enrichment, whereas external source includes recruitment of fresh candidates
who are capable of performing well in the organization.

4. Matching Demand And Supply

It is another step of human resource planning. It is concerned with bringing the forecast of future
demand and supply of HR.The matching process refers to bring demand and supply in an
equilibrium position so that shortages and over staffing position will be solved. In case of
shortages an organization has to hire more required number of employees. Conversely, in the
case of over staffing it has to reduce the level of existing employment. Hence, it is concluded
that this matching process gives knowledge about requirements and sources of HR.

5. Action Plan
It is the last phase of human resource planning which is concerned with surplus and shortages
of human resource. Under it, the HR plan is executed through the designation of different HR
activities. The major activities which are required to execute the HR plan are recruitment,
selection, placement, training and development, socialization etc. Finally, this step is followed by
control and evaluation of performance of HR to check whether the HR planning matches the HR
objectives and policies. This action plan should be updated according to change in time and
conditions.

The Roles of Human Resource Information Systems in HRP

Human resource information systems allow data to be easily stored, accessed and shared. As
technology evolves, so does its impact on strategic human resource planning. Human resource
information systems are electronic systems that compile information in databases to be easily
accessed and analyzed. Some information systems allow automation of processes, such as
payroll tax calculations, while others streamline processes by minimizing the need for manual
data entry and paper records, thus increasing accuracy and efficiency.

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Total Rewards
One HR function that can benefit from the use of human resource information systems is total
rewards, which refers to all components of the overall compensation model, including salary and
benefits. Your companys HR department can more effectively track and plan for changes to
employees salary, insurance, retirement and other benefits options using an HRIS. Electronic
records keep track of current expenses, and many systems offer projection models and
calculators that can help you analyze the impact of various changes. This is especially useful
when preparing for annual increases or benefits open enrollment.

Workforce Planning
Human resource information systems keep track of critical employee data such as demographic
information, job titles and Equal Employment Opportunity Commission identification codes.
Storing this information in an electronic database allows you to analyze it more easily when
working on recruitment strategies, progression planning and affirmative action programs. HR
reps can quickly run reports to determine items such as how many employees were hired last
year, average length of tenure and a breakdown of the employee population by specified EEOC
criteria such as gender and race.

Training and Development

Small businesses also may look to an HRIS to assist with training and development initiatives.
Depending on the needs of your company, you can use an HRIS to facilitate the annual
performance review process, to allow employees to sign up for company-sponsored training
classes or to build a talent inventory of what education, experience and training each employee
has. Having this information readily accessible by managers and human resources
representatives is an asset when developing new training programs or when restructuring
departments or positions.

Risk Management
Human resource information systems also minimize risks and potential liabilities. This is
accomplished by keeping electronic records of items such as employee discipline notices,
safety training employees have received, accident logs and workers compensation claims. This
data is analyzed by the HR department to identify ways to improve workplace conditions, safety
training classes and disciplinary processes to ensure compliance with all federal and state labor
laws.

Relationship Between Strategic Planning And Human Resource Planning

Strategic planning is a step-by-step process of determining how to pursue the organization's
long-term goals with the resources expected to be available. It is a systematic approach of
analyzing the opportunities and threats in the environment to enhance the efficiency and
organizational productivity. It is the name given to the sense making activity which includes the
function of goal setting and strategy formulation.

On the other hand, Human resource planning is the estimation of future demand for and supply
of human resources for the accomplishment of stated organizational goals. HR planning

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consists all the activities of human resource management such as forecasting of HR, collecting
information, policy making, recruitment, training and development, motivation and development
of human resource in the organization. These activities help prepare and HR plan where by
right number and kind of people are being forecasted.
These terms establish a close relationship as one cannot be separated from another. They are
correlated with each other because HR planning is an integral part of the overall corporate plan.
Hence, the relationship between HR planning and strategic planning can be depicted under the
following aspects:

1. Follower relationship of HR plan

This relationship depicts that an HR plan is an integral part of the overall corporate plan of the
organization. HR plan is based upon the overall objectives and strategies of the company. It is
prepared by following the guidelines by the overall corporate plan of the organization. Hence, it
is tailored to meet the needs of the overall mission, vision and objective of the company.
Moreover, this relationship explains that HR plan is derived from the overall corporate plan of
the organization.

2. Partner relationship of HR plan

When the HR plan and strategic plan are formulated simultaneously, it is supposed that they
have partner relationship. Under it, it is assumed that HR and HR manager are considered as a
valuable resource in the organization. And it ensures that the employees are fully participated in
strategy implementation. Moreover, implications of HR are considered in the formulation stage
of strategic plan. The primary purpose of this relationship is to link HR activities with strategic
plan in order to achieve organizational goals. It also ensures that HRM activities are considered
before formulating the corporate plan.

HR Demand Forecasting

Forecasting human resource demand is the process of estimating the future human resource
requirement of right quality and right number. As discussed earlier, potential human resource
requirement is to be estimated keeping in view the organisation's plans over a given period of
time. Analysis of employment trends; replacement needs of employees due to death,
resignations, retirement termination; productivity of employees; growth and expansion of
organisation; absenteeism and labour turnover are the relevant factors for human resourced
forecasting. Demand forecasting is affected by a number of external and internal factors.

Job analysis and forecasting about the quality of potential human resource facilitates demand
forecasting. So, existing job design must be thoroughly evaluated taking into consideration the
future capabilities of the present employees.

FACTORS AFFECTING HR DEMAND FORECASTING

Human Resource Demand Forecasting depends on several factors, some of which are given
below.

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 Employment trends;
Replacement needs;
Productivity;
Absenteeism; and
Expansion and growth.

There are number of techniques of estimating/forecasting human resources demand:

(a) Managerial Judgement
(b) Work Study Technique
(c) Ratio-trend Analysis (d) Econometric Models
(e) Delphi Model
(f) Other Techniques

(a) Managerial Judgement: Managerial judgement technique is very common technique

of demand forecasting. This approach is applied by small as well as large scale
organisations. This technique involves two types of approaches i.e. 'bottom-up
approach' and 'top-down approach'. Under the 'bottom-up approach', line mangers
send their departmental requirement of human resources to top management. Top
management ultimately forecasts the human resource requirement for the overall
organisation on the basis of proposals of departmental heads. Under the Top-down
approach', top management forecasts the human resource requirement for the entire
organisation and various departments. This information is supplied to various
departmental heads for their review and approval. However, a combination of both the
approaches i.e. 'Participative Approach' should be applied for demand forecasting.
Under this approach, top management and departmental heads meet and decide
about the future human resource requirement. So, demand of human resources can
be forecasted with unanimity under this approach.

(b) Work-Study Technique: This technique is also known as 'work-load analysis'. This
technique is suitable where the estimated work-load is easily measureable. Under this
method, estimated total production and activities for a specific future period are
predicted. This information is translated into number of man-hours required to
produce per units taking into consideration the capability of the workforce. Past-
experience of the management can help in translating the work-loads into number of
man-hours required. Thus, demand of human resources is forecasted on the basis of
estimated total production and contribution of each employee in producing each unit
items. The following example gives clear idea about this technique.

Let us assume that the estimated production of an organisation is 3.00.000 units. The
standard man-hours required to produce each unit are 2 hours. The past experiences
show that the work ability of each employee in man-hours is 1500 hours per annum.
The work-load and demand of human resources can be calculated as under:
Estimated total annual production = 300000 units
Standard man-hours needed to produce each unit = 2 hrs

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 Estimated man-hours needed to meet estimated annual production (i x ii) = 600000 hrs
Work ability/contribution per employee in terms of man-hour = 1500 units
Estimated no. of workers needed (iii / iv) = 600000/1500 = 400 units

The above example clearly shows that 400 workers are needed for the year. Further,
absenteeism rate, rate of labour turnover, resignations, deaths, machine break-down, strikes,
power-failure etc. should also be taken into consideration while estimating future demand of
human resources/ manpower.

(c) Ratio-Trend Analysis: Demand for manpower/human resources is also estimated on the
basis of ratio of production level and number of workers available. This ratio will be used to
estimate demand of human resources. The following example will help in clearly understanding
this technique.

Estimated production for next year = 1,40,000 units

Estimated no. of workers needed
(on the basis of ratio-trend of 1: 200) will be = 700

(d) Econometrics Models: These models are based on mathematical and statistical
techniques for estimating future demand. Under these models relationship is established
between the dependent variable to be predicted (e.g. manpower/human resources) and the
independent variables (e.g., sales, total production, work-load, etc.). Using these models,
estimated demand of human resources can be predicted.

(e) Delphi Technique: Delphi technique is also very important technique used for estimating
demand of human resources. This technique takes into consideration human resources
requirements given by a group of experts i.e. mangers. The human resource experts collect the
manpower needs, summarises the various responses and prepare a report. This process is
continued until all experts agree on estimated human resources requirement.

(f) Other Techniques: The other techniques of Human Resources demand forecasting are
specified as under:
(a) Following the techniques of demand forecasting of human resources used by other
similar organisations
(b) Organisation-cum-succession-charts
(c) Estimation based on techniques of production
(d) Estimates based on historical records
(e) Statistical techniques e.g. co-relation and regression analysis.

HR Supply Forecasting
Human Resource supply forecasting is the process of estimating availability of human resource
followed after demand for testing of human resource. For forecasting supply of human resource

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we need to consider internal and external supply. Internal supply of human resource available
by way of transfers, promotions, retired employees & recall of laid-off employees, etc. Source of
external supply of human resource is availability of labour force in the market and new
recruitment.

external supply of human resource depends on some factors mentioned below.

Supply and demand of jobs.

literacy rate of nation.
rate of population
industry and expected growth rate and levels
technological development.
compensation system based on education, experience, skill and age.

The most important techniques for forecasting of human resource supply are Succession
analysis and Markov analysis.

Supply Forecasting Methods

Trend analysis: Trend analysis involves collecting and evaluating data to identify patterns of
information that might impact the future. By examining the trends of the past, the HR
department can predict the effect of the same activity on the future of the organization, because
it is assumed that these patterns will remain stable. A method of forecasting that assumes past
trends and ratios in employee movement are stable and indicative of future trends and ratios in
employee movement. One of the simplest methods of forecasting future HR supply. For
example, an organization reviewing historical data may realize that every year, approximately
five percent of their staff retire, six percent resign, and three percent are dismissed. Using a
simple trend analysis, future HR supply forecasts can be established by assuming an average
reduction in internal HR supply of 14 percent per year.

Competency model: Competencies are behaviours that encompass the knowledge, skills, and
attitudes required for successful performance. Competency modeling is the activity of
determining the specific competencies that are characteristic of high performance and success
in a given job. A future-oriented model that first reviews competencies that are aligned with an
organizations mission, vision, and strategy, and then aims to identify an ideal workforce in
terms of these competencies . Skills/competency models focus on matching the right skills or
competencies needed for each job with the skills available within the organization.
Replacement Charts: A chart used to estimate vacancies in higher level jobs and identify how
potential HR supply can fill these vacancies via internal movements from lower levels jobs.
Replacement charts provide identification of potential replacements for vacancies within an
organization. A comprehensive replacement chart will include information regarding possible
replacements for vertical or horizontal movement. Generally, a replacement chart includes
information about employees performance, readiness to fill the position, and education.

36
Staffing table: A clear graphical view of all organizational jobs and the current number of
employees at each job. Staffing tables are graphic representations of all organizational jobs,
along with the numbers of employees currently occupying those jobs and future (monthly or
yearly) employment requirements, which can be derived from demand forecasts. It presents a
simple visual understanding of an organizations staffing level within each department and the
organization as a whole, in an effort to help understand the combination of employees that
make up an organizations internal workforce. This information is useful in evaluating staffing
levels by department, branch, or project; the types of staff at each level; and the combination of
staff in all categories.
Succession Planning: Succession planning is a longer-term process of grooming a successor
(selected from a pool of candidates on the basis of perceived competency) for management or
critical positions. Determining the internal labour supply calls for a detailed analysis of how
many people are currently in various job categories or have specific skills within the
organization. The planner then modifies this analysis to reflect changes expected in the near
future as a result of retirements, promotions, transfers, voluntary turnover, and terminations.
Flow Modeling/Markov Analysis: Analysis that helps to predict internal employee movement
from one year to another by identifying percentages of employees who remain in their jobs, get
promoted or demoted, transfer, and exit out of the organization. To help predict internal
employee movement from one year to another by identifying percentages of employees who
remain in their jobs, get promoted or demoted, transfer, and exit out of the organization. By
tracking and predicting employment movement within an organization, the Markov analysis
allows for the development of a transition matrix to forecast internal labour supply. A transition
matrix, or Markov matrix, can be used to model the internal flow of human resources. These
matrices simply show as probabilities the average rate of historical movement from one job to
another. To determine the probabilities of job incumbents remaining in their jobs for the
forecasting period.

Recruitment and Selection

People are integral part of any organization today. No organization can run without its human
resources. In todays highly complex and competitive situation, choice of right person at the right
place has far reaching implications for an organizations functioning. Employee well selected
and well placed would not only contribute to the efficient running of the organization but offer
significant potential for future replacement. This hiring is an important function. The process of
hiring begins with human resource planning (HRP) which helps to determine the number and
type of people on organization needs. Job analysis and job design enables to specify the task
and duties of hobs and qualification expected from prospective job HRP, job analysis, hob
design helps to identify the kind of people required in an organization and hence hiring. It should
be noted that hiring is an ongoing process and not confined to formative stages of an
organization. Employees leave the organization in search of greener pastures, some retire and
some die in the saddle. More importantly an enterprises grows, diversifies, take over the other
units all necessitating hiring of new men and women.

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In fact the hiring function stops only when the organization ceases to exist. Hiring involves two
board activities:-
i) Recruitment
ii) Selection

Recruitment
The word recruitment has many meaning and plays an important role. Employees leave the
organization in search of greener pastures- some retire some die in saddle. The most important
thing is that enterprise grows, diversifies, and takes over other units-all necessitating hiring of
new men and women. In fact recruitment functions stop only when the organization ceases to
exist. To understand recruitment in simple terms it is understood as process of searching for
obtaining applications of job from among from whom the right people can be selected. To define
recruitment we can define it formally as it is a process of finding and attracting capable
applicants for employment. The process begins when new recruit are sought and ends when
their application are submitted. The result is a pool of applicants from which new employees are
selected. Theoretically, recruitment process is said to end with receipt of application in practice
the activity extends to the screening applicants as to eliminate those who are not qualified for
job.

Recruitment Policy
Recruitment policy of any organization is derived from the personal policy of the same
organization. In other words the former is a part of the latter. However, recruitment policy by
itself should take into considerations the government reservation policy, policy regarding sons of
soil etc., personal policies of other organization regarding merit, internal sources, social
responsibilities in absorbing minority sections, women etc. Recruitment policy is like enriching
the organizations human resources serving the commodity by absorbing the weaker sections
and disadvantaged people the society, motivation the employees through internal promotions,
improving the employees loyalty to the organization by absorbing the retrenched or laid-off
employee or dependents of present former employees etc. The following factors should be
taken into consideration in formulating recruitment policy they are:-

Government policies.
Personal policies of other completion organizations.
Organizations personal policies
Recruitment sources
Recruitment needs
Recruitment cost
Selection criteria and preference etc.

METHODS OF RECRUITMENT
Recruitment methods refer to the means by which an organization reaches to the potential job
seeker. It is important to mention that the recruitment methods are different from the resources
of recruitment. The major line of distinction between the two is that while the former is the
means of establishing links with the prospective candidates, the latter is location where the

38
prospective employees are available. Dunn and Stephen have broadly classified methods of
recruitment into three categories. These are;
Direct Method;
Indirect Method;
Third Party Method.
Brief descriptions of these are follows:

Direct Method: In this method, the representatives of the organizations are sent to the potential
candidates in the educational and training institutes. They establish contacts with the candidates
seeking jobs. Person pursuing management, engineering, medical, etc. programmers are
mostly picked up the manner. Sometimes, some employer firm establishes with professors and
solicits information about student with excellent academic records. Sending the recruiter to the
conventions, seminars, setting up exhibits at fairs and using mobile office to go to the desired
centers are some other methods used establish direct contact with the job seekers.

Indirect Method; Indirect methods include advertisements in the newspaper, on the radio and
television, in professional journals, technical magazines, etc. this method is useful when
Organization dose not find suitable candidates to be promoted to fill up the higher posts, When
the organization want to reach out a vast territory, and When organization wants to fill up
scientific, professional and technical posts.
The experience suggests that the higher the position to be filled up in the organization,
or the skill sought by the sophisticated one, the more widely dispersed advertisement is likely to
be used to reach too many suitable candidates. Sometimes, many organizations go for what
referred to as blind advertisement in which only Box No. is given and the identity of the
organization is not disclosed. However, organizations with regional or national repute do not
usually use blind advertisements for obvious reasons.
While placing an advertisement to reach to the potential candidates, the following three points
need to borne in mind: To visualize the type of the applicant one is trying recruit; To write out a
list of the advantages the job will offer; To decide where to run the advertisement , i.e.,
newspaper with local, state, nation-wide and international reach or circulation.

Third Party Method: These include the use of private employment agencies, management
consultants, professional bodies pr associations, employee referral or recommendation,
voluntary organization, trade banks, labor contractors, etc., to establish contact with the job
seekers.
Now, a question arises; which particular method is to be used to recruit employee in the
organization? The answer to it is that it will depend on the policy of the particular firm, the
position of the labor supply, the government regulations in this regard and agreements with
labor organizations. Notwithstanding, the best recruitment method is to look first within the
organization.

PROCESS OF RECRUITMENT

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As stated earlier, recruitment is the process of location, identifying, and attracting capable
applications for jobs available in an organization. Accordingly, the recruitment process
comprises the following five steps:
Recruitment planning;
Strategy Development;
Searching;
Screening;
Evaluation and Control.

Recruitment Planning: - The first involved in the recruitment process is planning. Hire,
planning involves to draft a comprehensive job specification for the vacant position, outline its
major and minor responsibilities; the skills, experience and qualifications needed; grade and
level of pay; starting date; whether temporary or permanent; and mention of special condition, if
any, attached to the job to be filled.

Strategy Development:- Once it is known how many with what qualification of candidates are
required, the next step involved in this regard is to device a suitable strategy for recruitment the
candidates in the organization. The strategic considerations to be considered may include
issues like whether to prepare the required candidates themselves or hire it from outside, what
type of recruitment method to be used, what geographical area be considered, for searching the
candidates, which source of recruitment to be practiced, and what sequence of activities to be
followed in recruiting candidates in the organization.

Searching:- This step involves attracting job seeders to the organization. There are broadly two
sources used to attract candidates. These are:
Internal Sources
External Sources.

Screening:- Through some view screening as the starting point of selection, we have
considered it as an integral part of recruitment. The reason being the selection process starts
only after the application have been screened and short listed. Let it be exemplified with an
example. In the Universities, application is invited for filling the post of Professors. Application
received in respond to invitation, i.e. advertisement are screened and short listed on the basis of
eligibility and suitability. Then, only the screened applicant are invited for seminar presentation
and personal interview. The selection process starts from here, i.e., seminar presentation or
interview. Job specification is invaluable n screening. Applications are screened against the
qualification, knowledge, skills, abilities, interest and experience mentioned in the job
specification. Those who do not qualify are straightway eliminated from the selection process.
The techniques used for screening candidates are vary depending on the source of supply and
method used for recruiting. Preliminary applications, de-selections tests and screening
interviews are common techniques used for screening the candidates.

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Evaluation and control:- Given the considerable involved in the recruitment process, its
evaluation and control is, therefore, imperative. The costs generally incurred in a recruitment
process include:
Salary of recruiters;
Cost of time spent for preparing job analysis, advertisement, etc;
Administrative expenses;
Cost of outsourcing or overtime while vacancies remain unfilled;
Cost incurred in recruiting unsuitable candidates.
In view of above, it is necessary for a prudent employed to try answering certain questions like:
Whether the recruitment methods are appropriate and valid?
Whether the recruitment process followed in the organization is effective at all or not?
The main stages are identified in the below flow chart
Identify Vacancy
Prepare Job Description and person Specification
Advertise
Managing the Response
Short-listing
References
Arrange Interviews
Conduct The Interview
Decision Making
Convey The Decision
Appointment Action

SOURCES OF RECRUITMENT

INTERNAL SOURCES
Present employees: Promotions and transfer from among the present employees can be good
sources of recruitment. Promotion implies upgrading of an employee to a higher position
carrying higher status, pay and responsibilities. Promotion from among the present employees
is advantageous because the employees promoted are well acquainted with the organization
culture, they get motivated and it is cheaper also. Promotion from among the person employees
also reduces the requirement of job training. However, the disadvantage lies in limiting the
choice of the few people and denying hiring of outsiders who may be better qualified and skilled.
Furthermore, promotion from among present employees also results in inbreeding, which
creates frustration among those not promoted. Transfer refers to shifting an employee from one
job to another without any change in the position/post, status and responsibilities. The need for
transfer is felt to provide employees a broader and carried base, which is considered necessary
for promotion. Job rotation involves transfer of employees from one job to another job on the
lateral basis.
Former employees: Former employees are another source of applicant for vacancies to be
filled up in the organization. Retired or retrenched employees may be interested to e come back
the company to work on the part time basis. Similarly, some former employees who had left the

41
organization for any reason, any come back to work. This source has the advantages of hiring
people whose performance is already known to the organization.
Employee referrals: This is yet another internal source of recruitment. The existing employees
refer to the family members, friends and relatives to the company potential candidates for the
vacancies to be filled up in the organization. This source serves as the most effective methods
of recruiting people in the organizations because refer to those potential candidates who meet
the company requirement known to them from their own experience. The referred individuals
are expected to be similar in type in the of race and sex, for example, to those who are already
working in the organization Previous applicant: This is considered as internal source in the
sense that applications from the potential candidates are already lying with organization.
Sometimes the organization contacts though mail or messengers these applicants to fill up the
vacancies particularly for unskilled or semiskilled jobs.

EXTERNAL SOURCES
External sources of recruitment lie outside the organization. These outnumber internal sources.
The main ones are listed as follows:
Employment exchanges: The national commission labor (1969) observed in its report that in
the pre-independence era, the main source of labor war rural areas surrounding the industries.
Immediately after independence, national employment services were established to bring
employer and job seeker together. In response to it, the compulsory notification of vacancies act
of 1959 (Commonly called employment exchange act) was instituted which become operative in
1960.the main functions of these employment exchanges with the branches in most cities are
registration of job seeker and tier placement in the notified vacancies. It is obligatory for
employer to inform about the outcome of selection within 15 days to the employment exchange.
Employment exchange is particularly useful in recruiting blue-collar, white- collar and technical
workers.
Employment agencies: In addition to the government agencies, there are number of private
agencies that register candidates for employment and furnish a list of suitable candidates from
the data bank as and when sought by the prospective employer. Generally, these agencies
select personnel for supervisory and the higher levels. The main function of these agencies is to
invite application and short-list the suitable candidates for the organization. Of course, the
representative of the organization takes the final decision on selection. The employer
organizations derive several advantages through this source. The time saved in this method can
be better utilized elsewhere by the organization. As the organizational identity remains unknown
to the job speakers, it, thus, avoid receiving letters and attempts to influence.
Advertisement: This method of recruitment can be used for jobs like clerical, technical, and
managerial. The higher the position in the organization, the more specialized the skills or the
shorter the supply of that resources in the labour market, the more widely dispersed the
advertisement are likely to be. For instance, the search for a top executive might include
advertisements in a national daily like the Hindu. Some employers/companies advertise their
post by giving them post box number of the name of some recruiting agency. This is done to
particular keep own identity secret to avoid unnecessary correspondence with the applicants.
However the disadvantage of these blind advertisement, i.e., post box number is that the
potential job seekers are the hesitant without unknowing the image of the organization, on the

42
one hand, and the bad image/reputation that the blind advertisement have received because of
the organizations that placed such advertisements without position lying vacant just to know
supply of labor/ workers in the labor market, on the other. While preparing advertisement, a lot
of care has to be taken to make it clear and to the point. It must ensure that some self-selection
among applicant take place and only qualified applicant responds the advertisement copy
should be prepared by using a four-point guide called AIDA . The letters in the acronym denote
that advertisement should attract Attention, gain Interest, arouse a Desire and result in action.
However, not many organizations mention complete detail about job positions in there
advertisement. What happened is that ambiguously worded and broad-based advertisements
may generate a lot irrelevant application, which would, by necessity, increasing the cost of
processing them.
Professional Associations: Very often, recruitment for certain professional and technical
positions is made through professionals association also called Headhunters. Institute of
Engineers, All India Management Association, etc., provide placement service to the members.
The professional associations prepare either list of jobseekers or publish or sponsor journal or
magazines containing advertisements for their member. It is particularly useful for attracting
highly skilled and professional personnel. However, in India, this is not a very common practice
and those few provide such kind service have not been able to generating a large number of
application.
Campus Recruitment: This is another source of recruitment. Though campus recruitment is a
common phenomenon particularly in the American organizations, it has made rather recently. Of
late, some organizations such as HLL, HCL, L&T, Citibank, Cadbury ANZ Grind lays, etc., in
India have started visiting educational and training institute/ campuses for recruitment purposes.
Many Institutes have regular placement cells / offices to serve liaison between the employer and
the students. Tezpur Central University has one Deputy Director (Training and Placement) for
purpose of campus recruitment and placement. The method of campus recruitment offers
certain advantages to the employer organizations. First, the most of the candidates are
available at one place; second, the interviews are arranged at short notice; third, the teaching is
also met; fourth, it gives them opportunity to sell the organization to a large students body who
would be graduating subsequently. The disadvantages of this of recruitment are that
organizations have to limit their selection to only entry positions and they interview the
candidates who have similar education and experience, if at all. 14 Deputation: Another source
of recruitment is deputation I.e., sending an employees to another organization for the short
duration of two to three years. This method of recruitment is practice in a pretty manner, in the
Government department and public sector organization does not have to incurred the initial cast
of induction and training. However, the disadvantages of this of deputation is that deputation
period of two/three year is not enough for the deputed employee to provide employee to prove
his/her mettle, on the one hand, and develop commitment with organization to become part of it,
on the other.
Word-of-mouth: Some organizations in India also practice the word-of-mouth method of
recruitment. In this method , the word is passed around the vacancies or opening in the
organization. Another from of word-of-mouth method of employee- pinching i.e., the employee
working In another organization is offered by the rival organization. This method is economic, in

43
terms of both time and money. Some of the organization maintain a file applications and sent a
bio-data by a job seeker. These serve as a very handy as when there is vacancy in the
organization. The advantage of this method is no cost involved in recruitment. However, the
disadvantages of this method of recruitment are non- availability of the candidates when needed
choice of candidates is restricted to a too small number.
Raiding or Poaching: This is another sources of recruitment whereby the rival firm by offering
terms and conditions, try to attract qualified employees to join the. This raiding is a common
feature in the Indian organizations. For instance, service executive of HMT left to join Titan
Watch Company, so also exodus of pilot from Indian Airlines to join the private air taxi operator.
In fact, raiding has become challenge for the human resource manager. Besides these, walk -
ins, contractors, radio and television, acquisitions and merger, etc., art some other sources of
recruitment used by organization.

FACTORS AFFECTING RECRUITMENT

There are a number of factors that affect recruitment. These are broadly classified into two
categories:
1. Internal factors
2. External factors

INTERNAL FACTORS :
The internal factors also called as endogenous factors are the factors within the organization
that affect recruiting personnel in the organization.
Some of these are:-
Size of the organization: The size of the organization affects the recruitment process. Larger
organization finds recruitment less problematic than organization with smaller in size.
Recruiting policy: The recruitment policy of the organization i.e. recruiting from internal
sources and external sources also affect the recruitment process. Generally, recruitment
through internal sources is preferred, because own employees know the organization and they
can well fit in to the organization culture.
Image of the organization: Image of the organization is another factor having its influence on
the recruitment process of the organization. Good image of the organization earned by the
number of overt and covert action by management helps attract potential and complete
candidates. Managerial actions like good public relations, rendering public service like building
roads, public parks, hospitals and schools help earn image or goodwill for organization. That is
why chip companies attract the larger numbers of application.
Image of the job: Better remuneration and working conditions are considered the
characteristics of good image of a job. Besides, promotion and carrier development policies of
organization also attract potential candidates.

EXTERNAL FACTORS
Like internal factors, there are some factors external to organization, which have their influence
on recruitment process. Some of these are given below:-

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Demographic factors: As demographics factors are intimately related to human beings, i.e.
employees, these have profound influence on recruitment process. Demographic factors include
age, sex, Literacy, economics status etc.
Labor market: Labor market condition I.e. supply and demand of labor is of particular
importance in affecting recruitment process. E.g. if the demand for specific skill is high relative
to its supply is more than for particular skill, recruitment will be relatively easier.
Unemployment situation: The rate of unemployment is yet another external factor its influence
on the recruitment process. When the employment rate in an area is high, the recruitment
process tends to simpler. The reason is not difficult to seek. The number of application is
expectedly very high which makes easier to attract the best-qualified applications. The reserve
is also true. With low rate of unemployment, recruiting process tend to become difficult.
Labor laws: There are several labor laws and regulations passed by the central and state
governments that govern different type of employment. These cover working condition,
compensation, retirement benefits, safety and health of employee in industrial undertakings.
The child Labour Act,1986; for example prohibits employment of children in certain
employments. Similarly several other acts such as the Employment Exchange Act,1958; The
Apprentice Act, 1961; the Factory Act,1948; and The Mines Act, 1952 deal with recruitment.
Legal consideration: Another external factor is legal consideration with regard to employment
reservation of jobs for schedule tribes, and other backward class (OBC) is the popular examples
of such legal consideration. The supreme court of India has given its verdict in favor of 50 per
cent of jobs and seats. This is so in case admission in the educational institutions also.

SELECTION PROCESS/STEP
Employee Selection is the process of putting right men on right job. It is a procedure of matching
organizational requirements with the skills and qualifications of people. Effective selection can
be done only when there is effective matching. By selecting best candidate for the required job,
the organization will get quality performance of employees. Moreover, organization will face less
of absenteeism and employee turnover problems. By selecting right candidate for the required
job, organization will also save time and money. Proper screening of candidates takes place
during selection procedure. All the potential candidates who apply for the given job are tested.
But selection must be differentiated from recruitment, though these are two phases of
employment process. Recruitment is considered to be a positive process as it motivates more of
candidates to apply for the job. It creates a pool of applicants. It is just sourcing of data. While
selection is a negative process as the inappropriate candidates are rejected here. Recruitment
precedes selection in staffing process. Selection involves choosing the best candidate with best
abilities, skills and knowledge for the required job.
The Employee selection Process takes place in following order-

1. Preliminary Interviews- It is used to eliminate those candidates who do not meet the
minimum eligiblity criteria laid down by the organization. The skills, academic and family
background, competencies and interests of the candidate are examined during
preliminary interview. Preliminary interviews are less formalized and planned than the
final interviews. The candidates are given a brief up about the company and the job
profile; and it is also examined how much the candidate knows about the company.
Preliminary interviews are also called screening interviews.
2. Application blanks- The candidates who clear the preliminary interview are required to
fill application blank. It contains data record of the candidates such as details about age,
qualifications, reason for leaving previous job, experience, etc.

45
3. Written Tests- Various written tests conducted during selection procedure are aptitude
test, intelligence test, reasoning test, personality test, etc. These tests are used to
objectively assess the potential candidate. They should not be biased.
4. Employment Interviews- It is a one to one interaction between the interviewer and the
potential candidate. It is used to find whether the candidate is best suited for the required
job or not. But such interviews consume time and money both. Moreover the
competencies of the candidate cannot be judged. Such interviews may be biased at
times. Such interviews should be conducted properly. No distractions should be there in
room. There should be an honest communication between candidate and interviewer.
5. Medical examination- Medical tests are conducted to ensure physical fitness of the
potential employee. It will decrease chances of employee absenteeism.
6. Appointment Letter- A reference check is made about the candidate selected and then
finally he is appointed by giving a formal appointment letter.

Selection methods
Qualification and experience method, work proficiency method, written test method,
interview method, written test and interview method, comprehensive selection method.

Selection Tests
a. Intelligence tests
Tests of general intellectual abilities. They measures not a single trait but rather a range
of abilities such as-reasoning,vocabulary,verbal fluency,numerical abilities,memory etc.
b. Aptitude tests
It measures whether an individual has the capacity or latent ability to learn a given job if
given adequate training. A capacity to learn in the future. To select person who will show
a higher degree of success after the training period. Specific capacities or aptitudes are-
mechanical, clerical, linguistic, musical, academic etc.
c. Achievement tests
Concerned with what one has accomplished. When applicants claim to know something,
an achievement test is given to measure how well they know it. Trade tests such as-
electricians, typing, dictation, computer operator, machinists etc. It helps to shows the
demonstrable relationship and job performance.
d. Personality tests
It measures personality attributes of candidate such as emotional stability, confirmity,
agreeableness, extroversion, smartness etc.
e. Interest tests/Vocational tests
Most organization realize that a person who is interested in a job or tasks will do much
better than who is uninterested. In this test applicants is asked whether s/he likes,
dislikes the particular occupation, activities, peoples. Interest in specific profession and
occupation is tested. Measures candidates preference in different types of job.
f. Situation tests
It evaluates the candidates behavior in a particular situation or in a situation which is
similar to some aspects of the job to be done in the future.
g. Test batteries
This test helps to fit candidate with wide array of jobs. This test covers abilities such as-
verbal, numerical, intelligence, finger and manual dexterity etc.

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HUMAN RESOURCE DEVELOPMENT (HRD)
The achievement of sustained and equitable development remains the greatest challenge facing
the human race. Despite good progress over the past generation, more than 1 billion people still
live in acute poverty and suffer grossly inadequate access to the resources-education, health
services, infrastructure , land and credit-required to give them a chance of a better life. The
essential task of development is to provide opportunities so that these people and hundreds of
millions not much better off, can reach their potential.
World Bank, 1992
The world has progressed in many unique ways and directions in the last three decades. It has
developed technologically, economically and industrially. It is also richer in terms of human
capabilities, facilities and quality of living. Improvements in education, communication,
technology and markets have made the world a global village. People live longer today, are
better informed, can communicate with one another across the world and therefore carry on
economic, professional, educational, social and other activities with ease. These decades of
development indicate the vast potential for creating a world of order, security and well-being.
The developments of the last three decades also indicate that while remarkable progress has
been made in a number of directions, the fruits of development have not benefited the world's
growing number of poor people. And where some benefits have reached the poor, new
problems are appearing in the form of deteriorating social fabric and environmental degradation.
The world faces two major development challenges. The first is to ensure that the fruits of
development reach the neediest through equitable distribution of resources, opportunities and
benefits. The second is to develop human capabilities and address the challenges of
development - political, economic and social. The few countries that have been able to meet
both these challenges have demonstrated the importance of investing in developing people and
improving the quality of their life through the adoption of human resource development
strategies.

Human Resource Development is said to be the care of a larger system known as human
resource system and HRD is mainly concerned with providing learning experience for the
people associated with an organization through a behavioral approach adopting various
processes. The individual is provided with learning experiences not in isolation but shares
others learning experiences also. Such learning experiences are provided with the main
objective of developing human beings for their advantage and producing their powerful physical,
mental and intellectual endowments and abilities for the growth of organization.
In a broader scene, the term HRD means those learning experiences which are organized for a
specific time and designed to bring about the possibility of behavioral change. Human Resource
Development in the organization context refers to the process whereby the workers are
continuously helped in a planned way to
a) Acquire or sharpen capabilities required to perform various tasks and functions
associated with their present or future expected roles.
b) Develop their general enabling capabilities a s individuals so that they are able to
discover and exploit their own inner- potential for their own and/ or organizational
development purposes and
c) Develop an organizational culture where superior/subordinate relationships, team-work
and collaboration among different sub-units, which are strong and contribute to the
professional well-being, motivation and pride of work. 2
In the area of HRD we can continuously develop the people so that,they are competent
managers and competent workers and committed to the organizational goals. With growing
importance of HRD movement, there has been significant increase in training programme
budgets in the organizations. This trend is very noticeable, as many medium and even smaller
sized organizations have begun to initiate training programmes. The workers training through

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HRD activities are not only the process of developing skills of workers; but it is the process of
changing attitudes of the workers by involving them into improving the activities they carry out.
This encompasses timely and value added management acts as way of life. The focus of HRD
through training is essentially on enabling workers to self actualize through a systematic
process of developing their existing potentialities and creating a new ones; unfolding and
tapping potentials, capabilities of workers both in the present and for future.

The changes that have taken place in the past few years all over the world have established
very clearly that no Nation can isolate itself completely form the rest of the world and survive for
too long a time. The new economic policies have pushed India into the race for globalization.
The new economic environment has significance to all, of first as citizens of India, next as
responsible businessmen, leaders, managers, workers as well as providers of services. If the
country has to get the best from the economic policies; we all have to give our best and also get
the best from each other. Every profession, discipline and function should contribute to make
this happen. Here HRD has a special responsibility as it deals with the people.

From the above discussion it is clear that, HRD is the total knowledge, skill, creative abilities,
talents and aptitudes of an industrial workforce as well as the values, attitudes of an individual
involved. It is the sum total of inherent ability, acquired knowledge and skill represented by the
talents and aptitudes of the employed persons. HRD at organizational level includes, carrying
out manpower research and planning to anticipate long term labour market needs, manpower
development through training programmes, manpower distribution through an effective
placement service and manpower utilization of assure of utilization of the nations human
resources. HRD at the organizational level is a process by which workers of an organization are
helped in a systematic and continuous way. Thus, HRD is continuous process and
comprehensive system by itself. That is why every management has to develop its workforce in
order to develop the organization. HRD in its turn, almost entirely depends upon worker
straining, management, and development.

Need/ Importance/ Role and significance of HRD

Growth of organisation: Growth of organisation is associated with the development of its
workforce. In changing situation HRD must be viewed as the total system interrelated and
interacting with other systems at work: production, finance, and marketing.
Development of work culture: The need of HRD is felt as it improves the efficiency of
employees, checks monotony at work, better communication, development of mutual
cooperation and creativity of all the members comes into limelight.
Developing potentialities: The focus of HRD manager essentially is on enabling people to
self-actualise through a systematic approach by which their existing talents are further
developed.
Growth of employees: HRD is associated with growth of employees. It helps employees to
know their strengths and weaknesses and enable them to improve their performance. The
management should provide adequate opportunity for the development of human resource
management for the development of their talents so that their development will benefits the
organisational growth.

Need of HRD
Changes in Economic Policies
Changing job requirements
Need for Multi-skilled Human Resources
Organizational viability and transformation process

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 Technological Advances
Organizational complexity
Human Relations

Principles of Designing HRD

Human resource development design should be based on the following principles:
Pareek and Rao (1975) outlined a philosophy for the new HRD system. They outlined principles
to be kept in mind in designing the HRD System.
1. Focus on enabling capacity
2. Integrating the development of people with Organization Development.
3. Maximizing Individual Autonomy and Growth through increased responsibility.
4. Decentralization through Delegation and Shared Responsibility.
5. Participation Decision-making.
6. Balancing adaptation to and changing organizational culture.
7. Balancing differentiation and integration.
8. Balancing Specialization and Diffusion of the Function.
9. Ensuring Responsibility for the Function.
10. Balancing Linkages within and with other functions.
11. Building Feedback and Reinforcing Mechanisms.
12. Balancing quantification and qualitative decisions.
13. Balancing internal and external help.
14. Planning evaluation of the function.
15. Continuous review and self-renewal.

Or
PRINCIPLES IN DESIGNING HRD SYSTEM
1. Consistent support
2. Focus on HRD
3. Structure of the HRD system
4. Functioning of the system

HRD Mechanism/Sub-System/Instrument
1. Performance Appraisal: Performance appraisal is the process of determining how well a
worker is performing his job. It provides a mechanism for identification of qualities and
deficiencies observed in an employee in relation to his job performance. The object of
appraisal is to determine the present state of efficiency of a worker in order to establish
the actual need for training. The process of performance appraisal consists of:
i) Setting standards for performance
ii) Communicating the standard to the employees
iii) Measuring the performance
iv) Comparing the actual performance with the standards set
2. Potential Appraisal: Potential appraisal provides necessary data which helps in
preparing career plans for individuals. It aims at development of latent abilities of
individuals. The HRD function has a long way to go in introducing a streamlined potential
appraisal system which ensures a good match between the employees and the job.
3. Career Planning: It is the planning of ones career and implementation of career plans
by means of education, training, job search and acquisition of work experiences. It is
aimed at generating among employees an awareness of their strengths and weaknesses
and at helping them to match their skills and abilities to the needs of the organisation.

49
 Without development of people in the organisation , the organisation cannot prosper.
Individual career development is considered to be a three step process:
i) Identifying and organising skills, interests, work-related needs and values
ii) Converting these inventories into general careers, fields and specified job-goals and
iii) Testing the possibilities against the realities of the organisation or the job market
4. Feedback Counselling: Feedback of performance data can be used to monitor
individual development and for indentifying training needs. Career counselling and
verbal rewards are integral parts of review discussions between the superior and the
subordinate. Counselling serves several purposes in any organisation. It helps in
strengthening the superior and subordinate relationship, helps the executives to
understand the limitation of his seniors and problems of his juniors, improves
communication, thereby facilitating quality decision, helps employees in recognising their
strengths and weakness and also help evaluate the impact of their decisions and so on.
5. HR Information System: It is the process aimed at ensuring that the organisation will
have adequate number of qualified persons, available at proper time, performing jobs
which would meet the needs of the organisation and also provide satisfaction for the
individuals involved.
6. Training & Development: Training is a process that involves the acquisition of skills,
concepts and attitudes in order to increase the effectiveness of employees in doing
particular jobs. Training is expected to provides the needful stimulus to initiate impulses
of changes in management and to improve efficiency, productivity and administrative
effectiveness.
7. Reward System: Rewarding employees performance over and above their normal
wages and salaries is considered to be an important task of the HRD. To check
frustration is rewarding the efficient workers for their work which may be known as
incentive. It will lead to better utilisation of human resources at all levels which is easy,
cheapest, quickest and surest means of increasing productivity.
8. Job Rotation: The work-task should be rotated among the employees so as to broaden
their field of specialisation as well as their knowledge about the organisations operation
as a whole, one should be rotated once a year among the various employees depending
upon their qualifications and suitability to perform new works.
9. Quality Circle: A quality circle is a small group of employees doing similar or related
work who meet regularly to identify, analyse and solve product-quality problems and to
improve general operation. The quality circles are relatively autonomous units (ideally
about 10 workers), usually, led by a supervisor or a senior worker and organised as work
units. The workers, who have a shared area of responsibility, meet periodically to
discuss, analyse, and propose solutions to ongoing problems.
10. Organisation Development: Organisation development is an organisation-wide,
planned efforts managed from the top, placing emphasis on making appropriate
intervention in the ongoing activities of the organisation. OD provides a normative
framework within which changes in the climate and culture of the organisation towards
harnessing the human potential for realisation of organisational objectives.
11. Quality of Working Life: The condition under which the workers work and live, assume
the form of another important factor contributing to workers satisfaction or otherwise and
consequently the job satisfaction. In order of priorities, it comes next to the earning of a
worker in the Indian context. For an employee to be able to work at his best, it is
necessary to understand that inadequate working and living condition produce adverse
mental and physical effect on the employee, ultimately causing decline in the efficiency.

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Employee Training and Management Development
Determining training needs.
Both supervisors and employees are responsible for seeing that training needs are
identified, discussed and acted upon. Some ways in which training needs can be
determined are:
1. Daily observations
2. Performance reviews
3. Progress reports
4. job application form
5. discussions with employees
When training needs have been determined, they should be recorded as precisely as
possible, including method, objectives and formal course names where appropriate. The
individual training needs form is a convenient form on which training needs can be
recorded.
Determine training needs of employees:
review job descriptions
identify training required by legislation, e.g. correct handling of chemicals
consider training needs required because of change:
consider technological changes
invite employee input on training needs
review common complaints and problems
identify employee's strengths and areas needing improvement, for example:
customer service
cash handling
safety

System Approach to Training; Issues and Challenges

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