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You have been asked to address a regional audience from a management institute on the subject of Getting the most from your Human Resources function A cost effective value added service for the 21 st century. What would you recommend and how you go about implementing this? The human resource function has evolved in concept and practice over the past several years. Many companies have reduced costs and improved the quality of operational services by contracting with Human Resources function. If the organization can use Human Resources as well, they can get a cost effective value added service. I believe that it will be vital as companies compete in the 21 st century business context. The human resource functions include: The recruitment, selection and staffing in the region should be conducted systematically. Specifically, these should be conducted through a systematic process. For each process, there should be specific tasks and resources needed to implement each of the recruitment, selection and staffing effectively. In some Asian countries, managers usually base on their opinions to recruit, select candidates for their organizations without taking into consideration of systematic recruitment and selection approaches, which have been proved to be effective and successful. As for the implementation of applying systematic approaches to recruitment, selection and staffing, raising the awareness of the employers/ recruiters about the importance and high practicality of systematic approaches in recruitment, selection and staffing in the success of the organization. There are several ways of implementing the above thing, such as citing the lessons or stories about the application of the systematic approaches for the HR managers and its benefits to the HR department in particular and to the organization as a whole, or experimenting success-proven approaches in recruitment, selection and staffing from other organizations and business practices. One of the typical drawbacks of HR functions in terms of compensation and benefits is the satisfaction of the employees towards toward the given compensation and benefits. Specifically, the compensation should be appropriate to the damage or the benefits should fit with the actual performance of the employees. In general, compensation and benefits have to be fair to the employees in order to avoid their protestation and/ or motivate them to perform better. Therefore, it is recommended that compensation and benefits for the employees should be aligned with or oriented to their expectations. To implement this, the HR managers should ask for the opinions and suggestions from the employees before making decisions related to compensation and benefits. Managers may usually use authority and power to make decisions related compensation and benefits without asking the employees for their actual opinions. Compensation and benefits can be regarded as sensitive, HR managers may lose employees loyalty if they are not careful about makin g decisions with respect to compensation and benefits. To implement HR function of compensation and benefits effectively, the HR managers and the employees will negotiate with each other and end up with agreement related to compensation and benefits before the employees start working for the organization. Besides, during the process of working, if the employees find out weaknesses or dissatisfaction about the compensation and benefits, they will have the free authority to make their voices to the HR managers. The managers should listen to, respect and approve the employees expectations if they are reasonable. Employee training and development is vital for the growth of human resources within an organization. The recommendations for employee training and development are the provision of training and development analysis and strategy in any organizations in the region. It can be said that most of organizations conduct training and development when they realize the organizations really lack of those or when the organizations suffer the consequences of having insufficient training and development. Therefore, training and development should be planned strategically. Labor/ employee relations: labor/ employee relations are also important as it may form a culture or environment of the organization. Organizations, which have good labor/ employees relations, can be considered as ideal workplace for employees and talents. Therefore, maintaining good labor/ employee relations is beneficial for organizations and it is recommended that the organizations in the region should provide clear, well-defined employee relations philosophy once organizations are founded. Employees will be told to comply with the philosophy willingly. Then, good labor/ employees relations may become the culture of the organizations. Some important trends in management of HR functions including the trend towards the audit and measurement of personnel performance and the need to focus on core activities to reduce costs. Recent trends in the management of HR functions are: auditing performance, devolution, decentralization and outsourcing. In recruitment, strategic approaches are applied to get best results. Steps are used to attract and select talents: broadening channels of recruitments, changing recruitment behavior and changing recruitment measures. Professionalism in recruitment has implications for cost effectiveness. HR departments make the balance of the business case and professionalism for matters: recruiting quality staff, objectivity and fairness and cost effectiveness and high retention PMS provides important integrations in organization: integration of HR response to strategic demand; integration of available skill, competence and attitudinal supply; integration of the HR policy levers through setting and measuring objectives within PMS such as: productivity related objectives; job related objectives; person related objectives and the link to corporate objectives Reward strategies and systems can support the achievement of organizational objectives by focusing employee behaviour toward the following goals including performance orientated behavior, assist recruitment and retention, supporting an

improvement culture, assisting with merging or organizations, build commitment to organization and loyalty, support structural change delay ring / broad banding. HRD plays important role in assisting organization to achieve objectives through addressing skill gaps for individuals and organizations, acting as a catalyst for change, providing a competitive advantage in terms of the content and delivery of HRD, creating a learning climate as a way of focusing individual learning needs towards organizational learning objectives. ER becomes useful tool in retention and motivation to employees in organization through procedures and rules for protecting employees rights to show disagreement and getting reasonable benefits. Besides, at a high-level, the role of HR in organizational development includes aligning OD strategy with key corporate objectives, promoting a high performance people management culture, designing OD framework such as PMS and rewards system, integrating OD into employee communications, HR development, team working, building appropriate organization skills, competencies and capacity. In conclusion, in 21st century the regional management should take account the four functions of HR to be the guideline for taking advantages of one of the most important resources within an organization. The above recommendations should be followed by the management strictly to make the organizations in general and HR divisions in particular become more competitive and can stand out the external business environment. 2. For developmental activity to be deemed strategic organizations need to shift the focus from a training to a learning approach. Discuss this proposition in the context of development activity supporting individual and organizational change. Purposes of learning and development are employees require formal learning and self-development orientation. The formal learning is concerned with an organized learning system rather than informal, spontaneous ways of learning. That is, the organizations have to be the facilitators that organize and facilitate resources and facilities for the learning to be carried out. Self-development orientation is employees demand the chances for promotion through learning. The learning, in this case, should be provided by the organization. That is, organizations should try to identify the employees expectation, for example, through Management by Objectives (MBO) where employees can develop their own objectives. Processes of learning includes learning as the formally designed process of staff development, development as a wide range of individual and collective activities for developing skills and personal abilities, vocational (career) and educational training (VET) continues the development of knowledge and skill for current and future work. Strategic purpose of learning can be defined in four ways: addressing skill gaps for individuals and organizations involving the development of skills for new forms of work organization, using human resource development (HRD) as a catalyst for change, using HRD as a basis for competitive advantage in terms of the HRD content and the way it is delivered. Creation of learning environment as a way of focusing individual learning needs towards organizational learning objectives on a continuous basis HRD in the context of organizational development is there is an increased focus on organizational development in the quest for (to seek for) a high-performance culture. Besides, organizational development is undertaken to achieve a flexible and creative organization. That is, organization should change itself to be more flexible and adaptive to the external business environment. Besides, organizations can constantly seek to improve and reinvent the way it carries out its business, and serves its customers. Customers demand vary over time, organizations which are resistant to change will be not adaptive to customers. Organizational development is long term effort to improve the organizations visioning, empowerment, learning and problem solving processes. If HRD is strategic, it needs to be promoted and embraced at the top and be cascaded to every part of the organization The role of learning is central process in achieving an SHRM approach. SHRM approach may include people within it (both management and employees) devise their own objectives. These objectives can be their individual objectives which are linked to the organizational objectives. Besides, the organizational objectives may include the transition from a training to a learning organization, which requires employees to demonstrate more efforts to achieve those organizational objectives. Aside from that, employees are provided with conducive environment, equipment, tools that can help them achieve the objectives easily. In this case, employees can become more committed in carrying out both organizational and individual objectives. Organizations want to improve performance, need to develop capacity to change learning is essential to capacity. Besides, there are a number of ways that can help organizations achieve the transition from training to a learning approach. These include: Employees are involved in, and own, the outcomes of the HRD needs analysis. There should always be involvement of employees to the learning development strategies of any organizations. Organizations cannot simply devise the learning activities and/ or objective and disseminate them to the employees and require or force them to comply with. Senior managers participate in, and promote, learning activities to establish a learning climate. Aside from employees, senior managers should also take part in the learning activities because their involvement can help themselves understand the employees actual wants and needs. HRD becomes part of the organizational culture rather than being imposed upon it. Learning activities should become a nature or culture of an organization rather than a sudden change to adapt to the business environment. Gradual integration of HRD

to the organizational culture may become more acceptable by the employees because evolution is usually acceptable by people than revolution. Learning applies to all levels in the organization. It can be a serious problem as people working in the operational levels may see they have not received sufficient learning. When organizations develop more, the skill-gap should be maintained at acceptable levels, otherwise it can discourage the employees in the low level to contribute and exert more efforts to get promotion. Continual change is implied through reflection on performance. This can be referred to performance management. Through performance management, skills, knowledge gaps can be identified. Skills, knowledge are usually not or should not be consistent or stable. Consistently unchanged skills, knowledge are unbeneficial to organizations as they constrain the organizations from changing and innovation. Therefore, continual change should be linked to relatively continual performance measurement or management. Overall, a shift fromtraining to a learning approach have many advantages as analyzed above. To achieve those things, organizations should be consistently committed on involving the management and employees and the entire organization to achieve that. Besides, organizations should take account whether the shift fromtraining to a learning approach is suitable to the organizational culture and/ or structure. It is because the precedent culture or structure may constrain the transition fromtraining to a learning approach. 3. What do we mean by the terms best fit and best practice to describe SHRM. Best practice: A single set or bundle of HR policies & practices will lead to better organizational performance, Sustained over a lengthy period, Whatever the prevailing business circumstances. Effectiveness of practices which emphasize skills of implementation and do not fit business strategy. Besides, cost of implementation is high. Represent an attempt to improve HR practice in organizations, best practice also lead to better organizational performance whatever the prevailing business circumstances, it does not emphasis fit or matching but is solution oriented, In best practice view of HSBC bank in Hongkong, it is talking about long-term plan, strategy or policies. The priority areas in HSBC bank in HongKong human resources practice were recruitment and selection, performance appraisal, rewards and compensation and organization and development. They are strict in recruitment and selection because they believe corporate image as an employer is important. One of the way for them to recruit and select good employees is by using psychological tests, and another key strategy is the policy of growing our own from graduate trainees. Performance appraisal is their essential mechanism for tracking goal achievement and help in determining rewards for each employee. Thereby, the branches of HSBC in Vietnam also implement the same of plan, strategy and policies to make the effective like the mother HSBC bank in Hong Kong. Best fit is focus is on specific business operating environments. Suggest that particular types of HR practices will provide competitive advantages for particular types of firms depending on their strategic environment and reaction to it. Level of fit between business strategy and environment at first level and HR strategy & business strategy at a second level. Besides, it allows organizations to determine whether a hard (outsourcing/tighter contracting) or a soft (involvement, communication & sharing) approach needs to be taken given the circumstances. For example: In Wal Mart, they implement anti-union policy in its stores to reduce extra-costs from union workers; they discriminate women by giving them much fewer money and opportunities to be promoted, etc. WalMart have tried their best fit the corporate strategy to low down cost. Problematic aspects of bet practice: emphasize skills of implementation. Best practices not fit biz strategy (when linked to the relevance of ppl mngt at the top of the org). HR driven by outside factors which point us toward the next model of SHRM, the best fit view. Advantages of best practice model: Focus on staff as resources with the associated investment in high performance strategies: development, reward and recruitment practices. Emphasis on the professionalism of personnel practice. Involvement and empowerment of staff. Advanced management skills. Ethical HR practice. Emphasis on organizational flexibility, quality and integration of activities 4. Outline the main uses of competence models in SHRM Competence model: Organizations that operate strategically attempt to define competence at each of these levels: Core competence, Threshold competence, Differentiator competence, Emerging or decision competence, Life cycle competence, Functional competence, and Personal behavior/effectiveness competence, Core competence: unique to the organization and its activities. It gives organization its competitive edge. The business in partnership with HR develops, extend, protect and exploit its strategic core to the full. Threshold: needed to achieve satisfactory performance Differentiator competence: difficult to imitate capability that gives competitive advantages Emerging or decision competence: the assessment of demand and supply

Life cycle competence: matching competence to strategic changes in the business Functional competence: linking task performance based upon criteria, standards and range statements, outlining the contextual situation in which the task is performed

Personal behavior / effectiveness competence: problem solving, communication skills, decision making, learning effectiveness, etc. Competency Models can be used by employers as a useful selection and professional development tool. It can assist HR staff match specific skills and work requirements to different jobs at selection, promotion, career path development and while developing training programs for the organization. It can help to assess performance of individuals in their jobs as well as in their roles of managers, direct reports, customers and team members. It can also be a means for businesses to communicate their performance expectations to their workers. Competency Models can serve as a measure of the gap between employer needs and the offerings of the current education and training delivery system. Contents of existing coursework can be reviewed and mapped against the tier competencies and a crosswalk can be created and gaps can be identified. As education/ training providers evaluate existing programs or design new ones, the Competency model can serve as a benchmark, resulting in addition of courses that will match workplace requirements and trends Beside, Competency Models can profile people for their development in jobs and make underpin selection decisions. Moreover, it can contribute to performance planning and reward designs. So it can build a good conditions working in the organization 5. The main features of a learning organization, why is it important in a strategic HRD approach to organizing development? Features of a learning organization A Learning Organization is the term given to a company that facilitates the learning of its members and continuously transforms itself. Learning Organizations develop as a result of the pressures facing modern organizations and enables them to remain competitive in the business environment The key terms that define LOs are as follows 3 factors: First of all, that is adaptive learning, it is developing skills in coping, reflecting and improving, typified by TQM models of continuous improvement. Secondly, generative learning is one of in this term, organizations develop a capacity to think radically and differently about themselves and their market; they question what they do and attempt to re-define their mission. The last is creative tension, ii is how the process of understanding and diagnosing the present can assist with developing a shared consensus of the future. Managers should act in the following ways (Senge 1990): As designer, facilitating learning and not just doing and acting as a role model As teacher, developing the capacity of the team and individuals to think and act critically and self critically However, the messages need to be clear so it can help the learning organization effetely. In first, organizations need to be designed for development and selfdevelopment. Moreover, learning applies to all levels and between individuals, teams and levels in the organization. It means that the manager or employees must join to this process. Beside, organization should development in group learning, continual change made through critical reflection on performance at group and individual level. And the last, organization must careful balance in allowing individual creativity and determining initiatives of change. The important of LO: There are many benefits to improving learning capacity and knowledge sharing within an organization: Maintaining levels of innovation and remaining competitive Being better placed to respond to external pressures Having the knowledge to better link resources to customer needs Improving quality of outputs at all levels Improving corporate image by becoming more people orientated Increasing the pace of change within the organization Beside, Learning is a central process in achieving an SHRM approach. If organizations wants to improve performance they need to develop the capacity to change, and learning is essential to this capacity. 6. What are Strategic Variables in SHRM In some businesses, certain features of the systems actor may be necessary to secure the commitment of and acceptance by staff. Aspects of strategic management of ER, there are four strategic variables in SHRM: the recognition of trade unions and new industrial relations, collective bargaining, involvement and participation, conflict resolution. a. Recognition of Trade Unions & New Industrial Relations Collective relationships that exist between employers and groups of employees or representatives of employees, namely trade unions such as: public sectors or traditional industry. Beside, new industrial relations is characterized by: Single Union,

extended Compulsory negotiation & arbitration. These can help organization that defined and limited bargaining and get high levels of employee involvement in business and job improvement b. Collective Bargaining:

Collective bargaining occurs when workers allow the union to negotiate on their behalf. Negotiations can be with an individual employer or an employers' association. c. Involvement & Participation

Involving employees in business and employment decision making and participation is about employees playing a greater role in the decision making process. And the objectives of participation must be defined, discussed and agreed by all concerned There are 2 methods that organizations use to enhance Involvement & Participation that are Industrial democracy and Works Council. d. Conflict Resolution

A process that has as its objective the ending of conflict between disagreeing parties. Partnership agreements in ER In industrial relations a partnership arrangement can be described as one in which both parties agree to work together to their mutual advantage and to achieve a climate of more cooperative and therefore less adversarial industrial relations. It can help the organization mutual trust and respect, so they can recognition the central role of collective bargaining. Devolved decision making. 7. What are the main feature of PMS: Performance management is the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities.. PMS is the key integrator by allowing objective in a business plan to be fed into the rest the HR system. A performance management system is designed to promote interaction and feedback between management and employees, establish expectations for individual work performance, and serve as a foundation for rewarding top employees. The main features of PMS: Objective setting: the organization s objective and individual s objective are combined to give the general objective. The effective goals is clear and achievable, written in specific terms, measurable and timely, aligned with the corporate strategy and appropriately supported. Ongoing review of objectives: conduct regularly to measure the objective can implement in the best way. The development of personal improvement plans linked to training and development: the personal improvement plans of employees is implement through the training of company. Before comduct the traning, it is necessary to consider the personal plans of each employees to provide a suitable training. For example, if the improvement plans of employees is improve the team works skill, the traning of company need to help employees how to developthis skill through the task is implemented by team. Formal appraisal with feedback: based on the feedback, the process is evaluated again. Pay review: consider again the reward system of organization. Employees are paid follow the achievements and efforts of employees or not. A competence based organizational capability review. Evaluate the capability of organization. 8. How are Human Resource Departments responding to challenges of SHRM Nowadays, there are many challenges which HR are facing. They include the confidence, identity and direction. Thereby, HR department needs to give many plans to overcome the challenges. The first is auditing performance. It means checking or examining the function, operation or the management systems of HR department in an organization. The objective is to ensure investment in personnel and training can be justified in business terms. This is central to the setting up of service level agreements and clear expectations of HRs role. Performance checked based on cost -effectiveness, contribution, service and the way best practice is followed. For example, in Vietnam Airlines, the company usually implement audit performance in each 6 months via accessing the information about operate data, the contribution of staff, etc. Because the business of Vietnam Airlines is depend on the human resource a lot, thereby, when the company implement this, they can ensure the performance of HR function is good or not. If their performance is not really effective, Vietnam Airlines can give the suitable plans on time. The second is devolution of HR activities. The objective of devolution is to ensure more business led personnel response to employment issues. This is means transference of HR activities from HR specialists to line manager, or to other specialists such as administration specialist, etc. Activities that are likely to be devolved are the negotiating of overtime, job needs analyses, disciplinary interviews, etc. And retain operational areas such as monitoring of performance, coordinate of training, etc. For example, in the past, the HR department of Kinh Do cake company was responsible for many activities such as training, recruitment and selection; reward and job evaluation, etc. But now, this company devaluated some activities from HR department to administration specialist and other managers such as disciplinary

interview, job needs analyze, etc. Thereby, the company has many benefits from this such as responsive decision making in other department, better working relationship between managers and employees, flexibility, etc. The third is decentralizing human resource function. Centralizing activities is to achieve greater control of processes and costs. Whereas decentralized activities allows company to become more flexible, to speed up decision making. It depends on size of organization, diversification of businesses and markets. For example, Vietnam Airlines decentralized HR activities to help the company to save a lot of time in decision making. Thereby, Vietnam Airlines may have either a HR unit reporting directly to a central head of HR or one reporting indirectly to a head of department. The final is outsourcing. This is the means to assigning some HR activities to another specialist organization. In other words, outside organizations can afford to retain a greater level of specialist knowledge that can be called when needed. Outsourcing has become an important method of achieving flexibility and reducing costs. However, it also has the negative impact to company. The first is security; this is the problem which many companies fear the most. They are afraid of outsourcing employees will disclose information outside the company, even to competitors. The second is responsibility; suppliers lack of responsibility, delay and do not provide employees with the necessary qualities will disrupt the work of the company. Thereby, the company needs to consider carefully which activities need to be outsourced. 9. Training and learning: comparison

Training usually involves attempting to devlop in others certain skills, habits, or attitudes. Knowledge is usually transferred from the trainer to the learner. The learner might learn something, but the learning and the learning experience might be somewhat impoverished as the learner might not necessarily see why the training is needed - it might not be meaningful to the learner. Further, there might be limited opportunities for the learner to draw upon his or her experience and enter in to a dialogue with the trainer, challenging the trainer's assumptions, seeking further information through research to support or refute what the trainer says, testing new and existing versions of reality with colleagues, generating new knowledge, which might include understanding and sensitivity to situations, techniques, and concepts that the trainer had never thought of, or even might not be able to see, or accept. The learner might move on to take an interest in new domains which are meaningful and thus exciting, seeing the training as a small and perhaps insignificant part of a broader and perhaps outmoded system, diverging from the path the trainer has set out as the direction of the training. Or not. This depends upon the learner's learning. 10. Increasing levels of pay, improve the reward packages of their staff The first is national tax regimes. Many western governments tax benefits heavily, making them less attractive for employees. Historically, they have been a cost effective way of providing extra reward cheaply. A more subtle point is the expectation and attitude of staff. (tren unit 5) 11. Competency based approaches in modern HR strategies. Explain how they may be used in recruitment and selection. Example A competency is distinct from competence. A Competence may be defined as: A task, function or role, specific to a job. What is to be achieved. Competency may be defined as: The behaviourally defined characteristics which underpin effective and/or superior performance across a range of tasks. How the person should behave in order to achieve the objectives. Competencies naturally cluster into three groups: Cognitive (thinking) Affective (feeling/relating) Conative (acting) A competency based approach to recruitment and selection of staff can help your organization make it an effective and successful investment of time, money and expertise. Such an approach will help ensure that: the organization is clear regarding the competencies and skill sets required by the job selection processes encourage a good fit between individuals and their jobs, managers and staff have the required skills and competencies individual skills and abilities are matched to the requirements of the job evaluation of work demands and staffing are accurate Competency based recruitment and selection focuses on identifying those candidates that can evidence those behaviourally defined characteristics which underpin successful/superior performance in the role you are seeking to fill. In recruiting and selecting staff, relying on several points of reference/bases of information rather than one, will most often allow for a better and clearer picture of a candidate's suitability for a position within your organisation. Below are listed several types of reference points

Application Form Competency Based Interview Competency Based Referee Report Work Sample Tasks Group Discussion Verbal Comprehension Test Numerical Computation Test Customer Contact Styles Questionnaire. A competency is defined as the underlying knowledge, skills, abilities, and personal characteristics required to be successful in a job role. A competency is described in behavioral terms, and proficiency in a competency can be demonstrated by a candidate through detailed examples of associated past behavior in various situations. Where a number of candidates are found to be suitable, the candidates that display the closest match to the required competencies for the specified role will be offered the position in order of merit as outlined in this guideline. The competency based approach to staff selection and promotion is designed to ensure that a fair, objective and transparent selection procedure is adopted. The process will be initially conducted in the areas of Nursing, SCOPE, Clerical/Administration (Grades III to VII) and Catering. 12. Modern employee relations is through the use of partnership and partnership agreement Employee relations can be seen as the positively expanded of industrial relations. ER focuses on the same relations like IR employee, union members and managers. The shift between both ER and IR- is the diversification (e.g. works councils) from the collective bargaining process. The individual is more empowered, which managers would argue improves the quality of dialogue and understanding in the workplace. (Script pp. 352/ 353) There are two different kinds of partnership, the employer-union partnership and the employer-employee partnership. The employer-union partnership is a contract of a win-win strategy relationship. The unions major interest is to maintain and increase job security and the level of wages. The employers major concerns are strikes, which display a bad picture to the organizations stakeholder and have enormous costs inherent. The contract between employer and union ensures certain conditions for employees, e.g. job security in the first priority, further working conditions, training and development. The TUC sees partnership as requiring job security and quality of working life and as being long term. The employer-union partnership from this perspective can be seen as the employment partnership. The employer-employee partnership first appeared in the USA as outlined above. Thereby the partnership can be seen as voluntary in a deterministic environment, same as the employer-union relationship. It can be said that this partnership is an arrangement between both parties. The advantage for the employer is less involvement of a union in first place. The advantage for the employee is a better working environment and a better job security. The benefits for the organization go partially along with SHRM more to that later. Partnership Agreements The Involvement and Participation Association (IAP) launched a project in 1992: Towards industrial partnership: A new Approach to relationships at Work. The document set up included three commitments and four building blocks: The Commitments were: Parties subscribe to the success of the enterprise. Building trust and greater employee involvement. Recognizing the legitimate role and responsibility of the parties. The building blocks were: Employees need to employ security and employers need to maximize job / Organizational flexibility. Success should be shared by the organization and its employees. Staff should be widely informed and consulted at the company level on matter affecting their employment. Employee interests (voices) need representing. UK perspective By 1969 the number of strikes reached a record level of 3,000 and a loss of seven million working days, because of the domestic empowerment of trade unions facing the development of globalization and new attitudes towards job security and working conditions. By 1979 the union membership increased to 13 million, in some industries the membership went up to 75% and over. A further reason for this development was the non-existence of formal rules of collective bargaining. The winter of discontent inherited 29 million working days lost. Europe had a high acceptance of social partnership between unions and employers, thereby not only debating wages and productivity, but also training improvement in the case of Germany. Japan had even a wider sense of interrelationship between unions and employers, having unions organized at an organizational level, which worked in co-operation focusing with the employer the organizations objectives. In respond to these developments Britain adopted this attempt and introduced the Advisory

Conciliation and Arbitration Service (ACAS) to support individual and collective labour management processes. Both employee and unions rejected legal intera ction preferring the historical voluntarist approaches. (Script pg. 354) ER shifted later in some cases from collectivist to an individual relationship to management, e.g. direct communication rather than through representatives. However, the 1980s and 1990s saw a downfall of union and employee control, as managers responded to market pressures by part-time employment, new technology, new lean working practices, downsizing, outsourcing functions and enhancing flexibility, structurally, in terms of skill acquisition and cognitively, with respect to flexible mindsets and approaches to learning. US perspective The US Department of Labour acknowledges the wider recognition and acceptance in the USA of the dominance of the universalistic principle for best practise represented through a high performance work system led by a strong management tradition. (Script pg. 359) Union membership recognizes an ongoing decrease and there are many examples of the so called managing through partnership. Furthermore uni ons are involved in the organizations strategies. Employees themselves have an impact on reducing directly design and engineering costs an improve processes thereby time efficient. Additionally, employees receive instead of wage concessions shares, which are described as managing the partnership strategically melting business and employee objectives together. However, US America can not avoid the global pressures, within the global competition. Organizations will always try to suit pressures, at a certain level of pressure whereby cost efficiency must be achieved at a level of non-conformity with partnership, e.g. changing the location of production or in the case of UPS hiring part-time worker to avoid more costs for employee pensions. These methods and these mentioned above in the last section of the UK perspective give organizations flexibility, which is a key issue in the SHRM. In this way we see flexibility as a potential threat to collaborative and partnership ER. (Script pg. 359) 13. Strategic reward Employees should be compensated and rewarded for the time and effort they put into work. Strategic reward management involves the formulation and implementation of an equitable reward system that is congruent with the organizations strategic objectives. Rewards can be either intrinsic or extrinsic. However, it is important when designing, implementing and using a reward strategy, that it meets both individual and organizational needs. One view of Strategic Rewards as depicted here shows four quadrants of a strategic rewards framework: Compensation Benefits Health Care Retirement Base Salary Savings Variable Pay Job Evaluation Other Insurance Performance Management Paid Time Off Development and Learning Training Career Development Learning Experiences Succession Planning Benefit of strategic reward: can emphasize the importance of the employee to the organization; can influence the employee's sense of loyalty; are rarely seen in terms of their cash value, but can have an equally important impact when an employee is trying to decide whether to accept other employment or remain with an agency. represent those program areas where agencies have the greatest amount of flexibility to design programs specific to the needs of their employees. To many employees, a supportive and engaging work environment is at least as important as health care benefits and pay. For example, dependent care support, flexible work schedules, opportunities to telecommute, flexible leave programs, meaningful employee involvement, and well-trained supervisors providing quality leadership may make all the difference in the world when a person with a hard-to-find skill is considering your job offer or when an employee with valuable institutional experience is considering a competitor's offer. Strategic reward management is about the development and implementation of reward strategies and the philosophies and guiding principles that underpin them. It provides answers to two basic questions: 1) where do we want our reward practices to be in a few years time? and 2) how do we intend to get there? It therefore deals with both ends and means. As an end it describes a vision of what reward processes will Benefits Health Care Retirement Savings Other Insurance

look like in a few years time. As a means, it shows how it is expected that the vision will be realized. Lawlers model of reward system Lawler have presented a motivational model which is a step ahead of Vrooms theory of motivation. They have related satisfaction of employees with traits, skills, efforts, performance and its relationship with the reward system. Managers can effectively implement this model in their organizations 1. Value of rewards. People try to find out the rewards that are likely to be received from under taking a particular job will be attractive enough. This phenomenon is equal to that of valence in Vrooms theory of motivation. If rewards are attractive, an individual will put i n an extra efforts, Otherwise he will lower the very desire of doing a job. 2. Efforts. Efforts refer to the amount of energy which an individual is prepared to exert on a job assigned to him. 3. Perceived Efforts - Reward Probability People try to assess the probability of a certain level of efforts leading to a desired level of performance and the possibility of that performance leading to rewards. Bases on the valence-reward and the efforts-rewards probability, people decide the amount of efforts they would like to put in. 4. Performance. Efforts leads to performance. The level of performance will generally depend upon role perception as defined in the standing orders/ policy instructions, the level of efforts, skills, ability, knowledge, and intellectual capacity of the individual. Traits also play a role in performance equation. Thus, ability and personality traits will moderate effort-performance relationship. Performance of the individual is directly related to re-ward he is likely to get. Reward is of two type i.e., intrinsic and extrinsic. Individual is generally motivated by intrinsic rewards. It is therefore necessary that the organization pay an adequate attention to the reward system in the organization. Extrinsic Reward sare in the form of money or other material elements that have been included in hygiene factors of Hertzbergs motivation theory. 5. Satisfaction. Satisfaction results from intrinsic rewards. Individual will therefore compare his actual rewards with the perceived rewards. If actual rewards are equal or greater than perceived rewards the individual would feel satisfied. On the contrary if they are less than perceived rewards, an individual will put in reduced efforts, and obviously he will be less satisfied importance of Lawlers reward system Lawler Model is a complete model and is a departure from the traditional performancesatisfaction relationship. The model is of a great significance to managers as it sensitizes them to focus their attention to achieve employee motivation. Following points need more attention. 1. Matching of individual traits and ability with the job 2. Managers must explain to the employees the role they play in the organization and its relationship with reward system. 3. Managers should carry out job analysis carefully; lay down actual performance levels, which should be attainable by the individuals. 4. Job expectations, performance levels, and reward associated with the job should be clearly laid down and implemented 5. Motivation of employees is important. Make sure that the rewards dispensed are in line with employee expectations. Carry out the review of reward system periodically Disadvantage of reward 1 - Feeling of discrimination or dissatisfaction among employees (if they feel the reward assessment process is not transparent). 2 - Staff morale could fall if there is a large difference in the amount of reward being paid out to people doing similar work. 3 - Staff may become too focussed on individually earning those rewards/bonuses that they forget to work in the best interests of the team as a whole. Competition can be good but if its too aggressive it can be detrimental. 4 - There will always be an element of judgment required to administer such a system. Someone will have to rate the performance of staff. This judgment may end up being too subjective rather than objective. 5 - Some functions are support roles in nature (and therefore may not attract as much rewards as other roles such as sales). There must be a good balance of incentives for these admin/support staff or else they will not feel appreciated. 14. Evaluation of the relationship and contribution of performance management systems with strategic human resource management principles Introduction Therefore the evaluation will be drawn alongside the features of PMS outlined to give a specified answer. Furthermore the SHRM principles were manly already included in task one, but they will be partially reviewed to the essential extent to give a fair evaluation. Performance management systems (PMS) are part of the strategic human resource management. SHRM serves the changed environment, which is global and moving faster than ever. Global competitors can imitate everything, with the exception of highly motivated, high skilled and highly flexible staff, which are main principles of

SHRM to achieve. The SHRM principles rely heavily on attempting to manage and form corporate cultures. This in turn relies on attempts to align individual staff culture with individual culture. The range of issues included within PMS, for example, reward, development and so on, and the style of delivery, such as involving or judging will influence this culture. (Script pg.186) One key driver for SHRM is the fact that work is becoming more insecure, therefore the PDP as the feature of PMS ensures the development of people and thereby as the people sustainability within the organization. Furthermore PDP can be seen as application assistance in the case of redundancy. Thirdly, it recognizes the employees performance, which the employee will be proud of and therefore more motivated. PDPs can also be used for annual pay review, where the employee can achieve a higher income which pushes the motivation again. Lastly, this system improves the skills though out self-control and a individuality focus is met as well. From this perspective the key concern of SHRM is solved via PMS. As a pluralistic system SHRM also recognizes the external environment and its stake holders. The balanced score card responds to the external environment with operational numbers. Thereby customers are respected as well; e.g. to improve the point of sales with investment in business equipment and give a better climate & working environment. However, the BSC has the learning and growth perspective inherent, which is also the development of people for long-term sustainability. The measures of the BSC provide information of firms performance targets (Script pg. 14; 18 key practises) and it links the business strategy with the HR department (best fit view). The BSC however can be used vice versa as a hard controlling tool to improve short term profits and run down everything to the as much as necessary point, which would be the total opposite side of SHRM. One focus of SHRM is to develop people, make them responsive to changes and regular feedback on performance from many sources (Script pg. 14; 18 key practises). The 360 appraisal does this by giving regular feedback on performance from various perspectives. The employee also gets to know fields he or her needs to improve. Fields where he or her is good at will motivate and possible recommendations show where to work on to improve his or her development. On the other hand it can be said that the 360 appraisal pushes weaknesses which confront the strengths based approach as a new approach of SHRM. SHRM should have the presence of work -improvement teams and the presence of problem solving groups (Script pg. 14; 18 key practises). Team based structures approach of PMS makes teams stronger throughout a pluralistic view, to move away from the individual perspective. The Teams will work more closely together and develop better communication channels within it. The strengths based approach highly motivates staff as outlined in tasks 1. High motivation is a further principle of the SHRM. Merit rating serves this point in so far that it seeks particular strength for a particular job by a higher payment. SHRM lays a vital focus on people. In the PMS both is possible, the process based approach and the people based approach. The people based approach develops employees to a very valuable intangible asset, by training and a motivation led philosophy. In the process based approach contradicts SHMR in this point by suiting people into processes and focusing on the development of these processes. Quality cycles and the critical path analysis have the process based approach as their basics. The last feature of PMS outlined in this assignment performance based hiring suits the aim of SHRM to attract best technical/ professional talent (Script Life cycle model pg. 8). Conclusion PMS have a major role within the SHRM to achieve its objectives. Both follow similar principles or the same; in the areas where PMS can have its impacts. Using the right mix and intensions of strategies it even can be said it suits SHRM almost perfectly. Nevertheless in an objective evaluation the contribution can only partially be agreed. Many features of PMS have another side of the coin, using them in short terms vice versa, taking the process based approach, pushing to much the weakness rather then the strengths of employees, using the measures to built up pressures and using the pay performance review to threaten the job security. The relationship and contribution depends on the administrator or manager that decides the basic HR strategy.


Principles of Human Resource Planning

Principles of human resources planning require attention to fundamental concepts such as the importance of HR, integration of human resources and company objectives, efficiency and centralized decision-making. Personnel administration evolved from a primarily process-based function of the 1980s to an all-encompassing organizational component promoting the value of human capital. Human resources planning based on HR guiding principles ensures a well-structured component that synchronizes organizational philosophy and human resources strategy. Stressing HR Importance One of the beginning principles of HR planning stresses the importance of human resources. Engaging leadership that understands the impact of a functional human resources department is the best way to adhere to this principle. The Encyclopedia for Business, 2nd Edition, states: "Business consultants note that modern human resource

management is guided by several overriding principles. Perhaps the paramount principle is a simple recognition that human resources are the most important assets of an organization; a business cannot be successful without effectively managing this resource." One way to realize the importance of HR is to envision an organization with neither a productive workforce nor the type of support that human resources planning and management provides. Integrating Human Resources Human resources serves the needs of the organization, top to bottom, including every member of its workforce. Therefore, integration of human resources functions with overall organizational goals is an HR principle that cannot be overlooked. The importance of integrating HR and company objectives builds on the previously mentioned principle: stressing the importance of human resources. Human resources activities that are merely an extension of management are signs of poor planning and failure to embrace forward-thinking ideas that improve the company's profitability. An "Entrepreneur" magazine article appropriately titled, "Integrating the Human Resource Function with the Business" reinforces this proposition when it states: "It is not enough for the human resource function to be responsive to management, "customeroriented," or even aligned as partners with management." That said, a holistic approach to the integration principle of human resources planning ensures human resources will be fully committed to and a part of organizational goals. Processing HR Human resources information technology (HRIT) contributes greatly to the functionality and accuracy of human resources activities. Many organizations purchase sophisticated human resources information systems (HRIS) that minimize, or even eliminate, human error in processing employment data. Smaller organizations sometimes rely on outsourcing their HRIS needs for managing processes such as recruitment, payroll and compensation. Technology supports an important principle of human resources planning -- human resources data processing in the most efficient and accurate way possible. Centralizing HR Functions Tying together the principles of human resources planning requires centralizing the HR functions. Systematic processes and organization adds a component to HR that employees will appreciate. A one-stop shop for meeting the needs of the employer and employees unifies human resources activities and adds value to department functionality. Centralization involves the decision-making, staffing and organizing of HR functions; however, it also addresses the need for physical resources such as an applicant processing area, private conference and interviewing space, and storage for employment and medical-related files. 16. Strength and weakness of 3 financial rewards The aim of this assignment will analyse the strengths and weaknesses of the three different methods of financial rewards; individual performance related pay, profit related pay and skills based pay. A wide range of research will be explored through newspaper, books, journals and business models and how organisations tends to tackle these three methods, which will give a full insight on how these three spheres have impacted todays modern era, and how they are driven, which will then present the overall conclusion. Financial reward can be seen as a motivational factor, where employees may benefit, either from promotion or a bonus, it could be seen as an appraisal syst em. Most empirical research on pay for performance systems has investigated clear-cut programs, that is, programs based on individuals versus collective performance or behaviour. Yet, many organizations pay employees using a combination of different programs (Gerhart and Rynes, 2003). By setting objectives and goals for a specific project, is to maintain employees satisfaction at work, where performance and productivity is enhanced. Individual Performance Related Pay In recent years, performance-related pay (PRP) has been much more widely used as part of the human resource policies of organizations. Both organisations along with its employees may benefit performance related pay. It has typically been introduced alongside other HR practices as part of a package of measures, the aim of which has been to increase the input (both quantitative and qualitative) of workers to the production process (Whitfield and Poole, 1997). The strength of individual performance related pay is advantageous to its employees and the organisation itself. Performance related pay relates to the performance towards how well a task is carried out in the workplace by the individual, over achieving may bring good results, whereas poor achievement in the workplace could cost the organisation. According to (Lahdesmaki, 2008) Performance-related pay can help improve performance and promote organizational development when it is applied properly in the right

managerial context. Therefore, organisations use this method where it motivates individuals recognising they will be rewarded towards their progress and their contribution, which would then be implemented, hence the success of that organisation. Individual performance related pay provides the incentive, which employees can then accomplish and achieve the work targets, with this been recongnised with a reward. (OECD, 2005) states; Top management has generally accepted it and is committed to its implementation. Employee organizations and unions have principally accepted the system. Employers in agencies feel that PRP is a very good incentive, as a tool for organizational development. Therefore employers can obtain assistances from a business structure for set objectives, which would develop and improve the productivity and the performance of employees. Previous work has indicated that there is a positive relationship between PRP and earnings (Booth and Frank, 1999), and the suggestion is that this is due to the greater work effort and/or ability of those on incentive pay (Barkume, 2004). Nonetheless, organisations benefit this type of financial reward given to employees as comprehension is increased, where employees are aware of their performance and to enhance their productivity directly associated to be rewarded. Furthermore, such models also ignore that PRP is only one type of payment system aimed at increasing the contribution of employees to the production process (McNabb and Whitfield, 2007) Poor performance from employees can improve, with the awareness of a reward for grabs. To this, rewarding employees with better performance target, where employers would keep a hold on to the most industrious employees then those with low performed targets. As Barkume (2004) states call centers such as Carphone Warehouse offer commission to its employees due to the performance and how much quantity is sold whereas other organisations such as Alliance Leicester, whose employees are monitored on their performance, thus they are rewarded. However as strengths convey the rewards; weaknesses remain as employees may face a low payout due to the low inflation climate, as the pay may not be as great. According to McNabb and Whitfield, 2007) The results indicate that PRP schemes are costly for employers. They may help increase the input of workers, but whether this yields better financial performance depends on the relative magnitudes of the costs and benefits. It may perhaps be focused upon as a reward to work hard rather than developmental needs where employees are simply working for the reward, despite the job role, connection to this, employees are likely to be de-motivated if targets are too complex to achieve. (McNabb and Whitfield, 2007) states that; Alternatively, it may be that PRP operates simply as a distributive mechanism, rewarding the high-achieving more and the lowachieving correspondingly less than in non-PRP workplaces. Individual performance related pay can be targeted to over-skilled and qualified employees, whereas the unskilled and unqualified employees may find it difficult to keep on track then those further in front, which reduces pay equity and make the organisation liable if rewarding is not operated fairly. Organisations may use performance related pay as a short term for a specific project where employees performance would increase, but when the reward is outdrawn, the performance will then decrease where employees will expect the same reward for them to work effectively, which may even delay the collaboration. Finally, too much responsibility is relied on the supervisor or the manager as (Dickenson, 2006) states; The big problem with this, performance related pay in organizations, is that it is so totally disorganized, that your performance relies so much on other people doing their job right that it is very, very difficult to get a fair idea of what of work are you doing. It is suggest by Dickenson, (2009) that performance related pay may have an upper hand towards employees performance, however performance cannot be measured and predictions can only be made towards the end of the year. Profit Related Pay Profit related pay is an element of reward where in co-operation will ascend and descend together for the employee and the organisation. The prospect is that such method would improve employees job satisfaction and motivation and is seen as a wage substitution. The idea that workers might be paid in part out of profits has been spreading since the mid-1980s across OECD countries along with the growth of international competition and rapid technological change (Amisano and Del, 2004) Profit related pay is either a given bonus due to the organisations performance or by receiving a share based on the performance of the organisation; for example John Lewis employees have a share in the organisation performance. According to (Robertson, 2007) At the John Lewis Partnership, which employs 64,000 staff, for example, profit sharing remains central to its partnership ethos.

The introduction of new work practices that are supposed to increase employee performance, flexibility and involvement with organizational goals has often been associated with the introduction of new compensation systems, such as pay for competencies, performance related pay and profit sharing (Handel and Gittleman, 2004). Handel and Gitleman (2004) stated that profit related pay can be just as equal to performance related pay, however occupation differences have an impact on the types of rewards, job-role (such as nursing, teachers and social workers) have no impact on profit sharing as individual job role is at a fixed salary whereas major organisations have to perform to increase profit and out compete competitors. With a similar interaction between performance related pay; profit related pay consists of the organisations performance. For example, if John Lewis sales increase and profit rises, then employees are rewarded the shares due to the performance of the company. As (Robertson, 2007) states; Last year, John Lewis Partnership paid out 106m through its scheme, which equated to a 14% supplement to wor kers' annual salaries. However, a weakness behind profit related pay is due to John Lewis recital and if the performance decreases, therefore the organisation profit will decrease or at worst, the outcome would lose its turnover, subsequently the employees would suffer a decrease towards their pay. According to Estrin and Bradley (1992) they have investigated John Lewis profit sharing, which have not made much of a significant difference towards employees performance; this is based on employees awareness of the terms and conditions of their contract and should be aware of the type of financial reward, which depends on the profit of John Lewis and the amount of profit shared is received. According to Ogden (1995), Alpha Water was one the many first private limited companies that introduced profit sharing, at first such financial reward was not represented as a reward; employees carried out their job-role as usual as for Alpha Water, competition with other major water companies was at risk, therefore performance had to be increased and productivity had to be elevated. Schemes may also encompass a number of different computational formats with, for example, payment varying by amount, entitlement and the profit level at which payment is triggered (Ogden, 1995) Therefore the employees carried on their job-role as usual, as performing to a uncertain organisation, which had outstanding competitors. Compared to this and John Lewis, which is a major department store with a high profit figures in 2009, employees are willing to perform harder due to the realisation on the amount of share that can be received from John Lewis. GlaxoSmithKline (2009), one of the major pharmaceutical company offers a profit related pay scheme where it offers share save and share reward to the employees, only if employees consider buying shares with GSK, they will get the same amount of discounted share by GSK as a reward without tax. Profit related pay can be seen as a benefit for John Lewis employees, as they receive a share mainly based on the company performance, whereas GSK offer these rewards only to the employees when they purchase shares. Profit related pay can either increase or decrease employees pay depending on the success of the organisation, where reward can be a vast amount or nothing at all. Skill Based Pay Skill based pay could be seen as a remuneration system where employees are paid wages on the foundation towards the number of skills they are assessed to have and even qualifications they have obtained. As (Silva, 1998) sta tes; Skill-based pay systems are most appropriate to enterprises which depend on a high level of skills, and in which labour costs represent a relatively small portion of total costs, unlike in labour intensive industries. However the reward in learning a new skill to perform a task is highly motivating as employees are encouraged to learn furthermore without paying for the particular course and to perform on the job they are doing while training. Skill-based pay (SBP) is a rapidly spreading pay innovation that compensates for the range, depth and types of employee skills, rather than for the jobs employees perform (Dong-one, 1999) However skill based pay is the incentive to learning for the individual themselves and the organisation, which requires employees to learn new skills, which brings the strengths towards job satisfaction where by rewarding to learn, could support the intrinsic job role, therefore motivation is increased, however weaknesses do remain as learning may not be associated towards pay but the individual curriculum vitae is presented with the learnt skill. For example, an individual may be working in the human resource sector and were given skill based pay to carry out a CIPD course; the training will then enhance their current knowledge, where they can carry out further duties. In banks and airlines, for example, skill-based pay can be used to encourage people to work in areas where manpower is most needed at a given point of time due to customer flows. (Silva, 1998) Therefore skill based pay is designed to promote learning and is adapted in additional functional areas within the organisation where more than one task can be carried out and the current performance is exceeded as a particular knowledge or skill needs to be learned to do a certain role. Therefore, organisations may pay for performance; if higher skill is increased, then this would

create a better performance, which enhances development, as well as rewarding the individual. The strengths of skill based pay would improve the teams effectiveness and motivation, where productivity and performance is enhanced. It will assist the organisation as employees will have a more rapid adaptation to changes due to their skills, which will allow employees to solve the problems rather than wait for others to solve the problem. Also, commitment to goals and objectives are met rapidly hence, self esteem from job enrichment and making self decisions when covering for an absent employee temporarily. Improved skills would help to advance the productivity in problem solving along with working in a team, where set deadlines are met more rapidly as further skills have been adapted. Therefore qualification might not be necessary if the employee have already the skills to perform the job and are suited to do a multi-skilled position well enough, rather than the type of employee that has the correct qualification. Overall it saves the organisation expenditure, rather than going through the recruitment process, whereas this can be done internally. Skill based pay may be beneficial for an organisation and the employees performance, however weaknesses remain as an employee may have to change their shift patterns or work over time for training, this then cost the organisation to provide expense for employees that will have to teach the training or a institution to study the course or training required. (Silva, 1998) suggests that Skill-based pay is particularly consistent with knowledge-based work. It has generally been regarded as inappropriate in highly automated situations where employees have little effect on operational performance. To operates best in relatively small locations with not more than about 500 employees. If necessary, skills may be required to be learnt; in this case employees may lack enthusiasm to be trained and may want to remain in their current role. On the other hand employees may want to gain a skill due to the increase of the pay and for that reason only. The administration of the system is complex, both in regard to certification of skills acquisition and payment. Therefore, unless administered properly, the costs can outweigh the productivity and flexibility gains (Silva, 1998) As a result; it provides a major occurrence for the organisation is the individual have not performed than expected. Silva (1998) looked at the risks in skill based pay and the affects it may have on employees and the organisation. Employees that reach maximum skill level are likely to be de-motivated even with extra pay according to Silva (1998). Lacking in enthusiasm can occur where skill assessment difficulties, which involves the timing of the assessment required such as training, which can be time-consuming. Adopting this type of financial reward may have its strengths and weaknesses; however it is used and performed for many reasons. Skill based pay provides employees the ability to learn new skills, which will assist the organisations performance and profitability by saving cost in recruitment. In todays era, skills shortage is an immense predicament as organisations seek to find skills as an important matter to do the correct job, however teaching employees within the organisation is at the advantage towards saving the cost of recruitment process, by teaching the individual within the organisation as cost is saved and employees are benefited, as they are fully aware of the business environment. Conclusion Financial rewards are applied within organisations, especially the three analysed; individual performance related pay, profit related pay and skill based pay are the fundamental for both organisation and employees. The strengths of financial rewards is highly dependable on how it has been applied as the accurate process must be taken upon before introducing such types of financial reward, however the weaknesses are outlined if the correct practice is not applied. Financial reward is an important, debatable constituent for organisations and its employees. Organisation mission is to save cost at all expense but retain a better performance from employees, whereas employees seek to earn extra more from the organisation. It is an obvious fundamental for employees lifestyle as their contribution and duties to perform their job effectively and expectation are to be met due to their hard work, however such individual performance related pay as well as skill based pay and profit relative pay is all beneficial to employees as performance and productivity is enhanced, thus motivation is increased and cost is made, as well as saved. However on the other hand, employers and their organisations correspond to a significant part of the cost by giving these types of financial rewards as the organisation will benefit itself, if the accurate procedure is implemented. 17. Main obstacles preventing HRD from delivering SHRM Wider environment: org considered within national and international context which be shaped by factors such as wider value placed on educational and training by the

state, employers and individuals. i.e, in Britain, voluntary approach to training and development adopted by the state largely endorsed by employers this example emphasizes providing basix support for unemployed and on selected national shortages such as IT, also places great pressure on employers to provide training, often specific skills rather than broader labor market skills. Individual employees as a part of taking responsibility for their own learning and not waiting ro be trained by employers Evaluation of learning and development: cost of L&D programs, ability to evaluate its success has led org to take short term view, to see L&D as reward, when biz generating profits rather than strategic process. Strategic thinking org see L&D is vital to OD, competitiveness, growth, market leadership, survival key factor in employee motivation. Evaluation of effectiveness is hard to quantify. Strategic org periodically compares actual benefits vs. forecast benefits. KEY measurement = improvement in productivity, in quality, increased sales wins. Traditionally productivity has been measured at the individual level, the shift emphasize at a higher level of business. L&D is effective when curriculum and learning initiative are focused to biz objectives and current culture Value placed on HRD by staff: sometimes, managers set barriers by a failure to motivate trainees with effective and inclusive diagnosis. Other times, failture to allow learning to be transferred into workplace practice leads to low motivation and dilution of up-skilling and developmental outcomes. It is still lack of clear evidence of strategic linkage in HRD terms. strategic outcomes and further long term commitment to development are hard to achieve